Arizona Edge Highlights:

• Flipping Over Real Estate in AZ
• Spotlight on Power Ranch
• Financing Your Investment in Real Estate
• The Good, the New and the...
• Some Like It Hot: Weathering the RE Market
• Feedback, Contact Us, Etc.

Flipping Over Real Estate in Arizona

Greetings!

We’ve dedicated this issue to those of you who are considering investing in real estate here in our Valley of the Sun. Investors are flipping over our good buys and a strong and growing market.

And pardon the pun, but investors also flip properties, a term where an investor will buy a (perhaps distressed) property under market value, and will either totally remodel or add some cosmetic touches and sell it for a profit in a matter of months.

Greg Geenen, with Axis Mortgage has provided some useful information on the in and outs of financing investment properties.

With no end in sight of our strong market, I'd like to help you become a real estate mogul! (Don Trump, "You're fired"!)

Happy Investment Shopping

Colleen

You may be a seasoned veteran, or looking at purchasing your first investment property, either way there are more financing programs available today then ever before.

One consideration to determine the best mortgage program is how long you plan to own this particular property. Will you keep this property for 35 years? Will you keep the money invested while changing properties every few years, by using a 1031 tax exchange? Will this be a source of recognized monthly income, annual income, or a longer term retirement plan? The answer to these questions will help determine the best mortgage program for your scenario.

Many of the programs for investors mimic those that are available for the buyer who will occupy as the primary residence. The 30 year fixed rate mortgage may be a great option for the investor that will own that property for a longer period of time. An Adjustable Rate Mortgage will provide a lower interest rate for a defined period of time. Once that set period of time has passed, the interest rate becomes adjustable. The ARM may be fixed for a very short period of time, or a number of years. The length of time it is fixed will impact the interest rate. Typically the lowest rates are available for the shorter fixed time frame mortgages.

One type of mortgage that is quickly gaining in popularity is the "Interest Only" loan. These loans have a fixed period of time in which the payment is just the interest on the principal loan amount, no principal payment. This smaller payment translates into more money in the pocket of you the investor. The period in which the loan is interest only will depend upon the program.

Knowing and sharing your goals for the investment are crucial to ensure the best mortgage programs are presented to you.

Please contact me via phone or e-mail with questions that you may have on this or any other mortgage related items.

Greg Geenen is a loan officer with Axis Mortgage based in Mesa Arizona. For more information, contact Greg at (877) 294-7684 x554 or send him an email.

Some Like It Hot: Weathering the Housing Markets

Although this sounds basic, her are terms to help you understand real estate market conditions:

Hot
The heat (literally and figuratively) is still strong in our Valley seeing one the hottest markets in years. A hot market is defined as an extremely competitive market, one that is advantageous to the seller. Sometimes, homes will sell as soon as they are listed or even before homes are listed. Typically, during a hot market, multiple offers will be made on each home

Normal Market
In a normal market, there is fairly a large number of homes available and an average number of buyers. This market does not necessarily favor the buyer or the seller. During a normal market, the chances to negotiate are higher than in a hot market. As a buyer, you can expect to make offers at lower than the asking price and negotiate a price at least somewhat less than what the sellers are asking for.

Cold Market
In a cold market, houses may be listed for more than a year and the prices of houses listed may drop considerably. This market is advantageous to the buyer. As a buyer, you have the time to make an offer that works to your best interest. It is not uncommon to low-ball and to find that sellers are accommodating to meet your needs.

Feedback, Contact Us, Etc.

Email: mailto:colleen@homeisaz.com
Voice: [480] 767-5611
Website: http://www.homeisaz.com

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Power Ranch, in Gilbert, is a multi-award winning community built on more than 1,400 acres. It was selected "Best Master Planned Community 2003" by Ranking Arizona, recognized as one of the five "Best Master Planned Communities in the Nation" by the National Association of Home Builders and was one of the "20 Top-Selling U.S. Master Planned Communities for 2001!"

Amenities include a 17.5 acre community park, full basketball court, sand volleyball court, event pavilion, 400 square foot clubhouse, picnic ramadas with barbecues and a three field soccer complex. Water enthusiasts will delight in the 2.2 acre community lake and pier with lakeside trail and catch and release fishing. There is also a 25 meter swimming pool, children's play pool and splash fountain.

There are six distinctive neighborhoods, each built around a central park which is the hub of neighborhood activity. Power Ranch showcases an array of elevations, floor plans and home sizes to suit your family's needs. Homes range from the mid $100,000s to over $400,000.

For more information on new or resale homes in Power Ranch, give us a call!

The Good, the New and I Need a Few Repairs... Some New Ways to Invest

1. Buying a new build (there are some restrictions depending on the builder) and then selling the home after it's completed (you have not invested anything except a down payment) and can capitalize on the 6-8 months (the time it takes to build the home) of appreciation.

2. Buying a home or town home for rental purposes. This is a little trickier, especially if you live out of state as you'll need a property management company. You also need to have a good handle on the rental market – but that's why you have me… Generally a single family will rent more quickly than a town home or condo – However a town home or condo in an area like Scottsdale will do well with seasonal visitors or professionals who enjoy the amenities that Scottsdale offers.

Moving to Arizona?

If you're planning on moving to Arizona in the near future, please contact me so that I can help make your move as carefree as possible! Call me today at [480] 767-5611.