All Forum Posts by: Matt Shields

Usually, the leases transfer with the COE. BUT be sure there isn't anything terminating the leases on the sale of the property in the lease/contract. Also, what does the contract say about the transfer of security deposits? 

As always, seek professional advice.

I have had clients participate in these non-trustee/sheriff sale auctions (I didn't represent them) with bad experiences. When they were the high bidder the next day the auction company called them and claimed it was a reserve or seller approved price auction, and the bid was not high enough. They would be offered the option of a higher price or canceling the bid. 

I agree with Seth. Appraisers often don't assign any value to unpermitted construction and it can create a mess of problems with municipalities. 

I had a client who purchased land to build a house on. He told me he was going to do some clearing and place a temporary trailer on the property. I told him not to do anything until he received the permits, but unfortunately, he didn't listen to me, claiming he was out in a rural area and the county would never know.. When he went to get his building permits, they brought out an aerial photo and asked what the clearing and structure on the property was, and why permits had not been obtained? He had to pay fines and his house project got drug out months behind schedule. 

Here in Maricopa County, they do an aerial survey of the county every year. All the county has to do is compare the current photograph from a previous one to see the illegal structure. Here is a sample of what they can see:

2015

2017

2018

 Probably not. Lenders usually won't lend on a property without electric or water. 

There are no shortcuts to building credit, it takes time. Pay your bills on time and keep your debt ratio low. I use CreditKarma (free) to monitor my credit. CK also gives suggestions to improve your credit.  Flipping often doesn't require credit, many hard money lenders don't look at credit.

Arizona has very strict land subdivision laws resulting from rampant land fraud in the 1960's. The only way to divide land in the county six or more times is to get approval for a subdivision and file a public report. Many investors have tried transferring the land to partners, friends or family to sell but "acting in concert" is also illegal and selling an illegal subdivision is a felony. 

So your only practical option is to sell 3-acre parcels. Do the property's have water? Utilities? A good way to sell retail is to put in a shared well and road with operating agreements for both. Have power to the lots. Then market them (build ready) to people wanting to build a home/place a mobile and homebuilders/mobile dealers. Horse people also want larger lots. Is it zoned/deed restricted against horses?

If the property is in the middle of nowhere with no water/utilities you can still market it to preppers and hunters. 

To maximize profit and saleability offer a seller carry with interest. Whatever you decide I would find an agent and/or attorney experienced with land. Good luck!

If you are getting your license just to buy a multifamily, don't. The time and cost to get and maintain a license are not worth the savings, and even though you will have a license you will know just enough to be dangerous, especially with multifamily. I had a friend who got a license to buy a home and regretted it. Not only did he not save much money, but he was over his head. Fortunately, he has a friend that is a broker who walked him through the transaction. 

If you get your license for a career in real estate that's fine, but it is very difficult to get started as an agent, you will probably make very little or even lose money your first year, and if you're also paying for college that could put you behind the eightball. Some colleges offer classes that will satisfy the 90 hours of education required for a license.  ASU offers a minor in real estate, once completed you can test for the Arizona real estate license plus get college credits.

At eighteen and in college, I think it will probably be very difficult for you to qualify for a mortgage unless you have a cosigner.  Ironically, it can be difficult to obtain loans for a property as an agent because lenders are leery of the self-employed with commission income, however, if you finish college, get a good W2 job, and have decent credit, lenders will line up to give you money, assuming that you are going into a field that is in demand.

I admire you wanting to start investing at a young age, I wish I would have started investing in real estate in my early twenties instead of misspending my youth on debauchery. Good luck!

 I'm in the Phoenix area, but I have not been buying at the auction for the last few months, the prices between auction and retail are too slim right now.

I don't know the laws there but some liens can survive a foreclosure auction, like federal tax liens. I would do a thorough title search.

As always, seek professional advice.

Many municipalities have their zoning information online. If not, call and ask, you'll need the parcel number. I caution you though that there is more than zoning that can affect building plans, like deed restrictions, easements, setbacks, floodplains/ways, and the list goes on. I would recommend you get help from an attorney or agent experienced with land. Good luck!

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