Hi Friend,

Many clients have asked me about investing in real
estate, so I thought it would be a good time to highlight
a current strategy that is very effective in Paradise
Valley and Scottsdale. 

First, it's important to note that the key to real estate
investing is changing with the market.  A strategy that
was effective 2 years ago won't be effective today. For
example, 2 years ago you could routinely buy a home
at trustee sale (foreclosure) at 30% under market value,
and turn right around and sell it to a retail buyer.  Today,
that doesn't work because the market for trustee sales is
on fire.  The people who have been doing this for years
are scratching their heads - people are paying retail or
higher for homes they can't even inspect and which are
fraught with risks.

So what do you do today to make money in real estate?
As an agent I see a very clear divergence in the market:
homes that are renovated and turn key sell immediately
and at top dollar, whereas homes that require work
linger for a long time.  The explanation for this divergence
is the type of buyer who is attracted to each home, and
what they bring to the table.  

Specifically, a fixer upper requires a cash buyer.  People
who can write big checks are used to being able to get
the sun, the moon, and the stars.  That may change soon,
but for the most part cash is still king.

On the other hand, buyers flush with financing at today's
incredibly cheap rates either don't have the money to
remodel, or are dead set against spending it.  After all, if
the bank is lending you money at 3.5% or 4% why
wouldn't you just pay up for something that's beautiful and
requires no work?

So here is the opportunity: buy fixers, remodel them, and
flip them.  This strategy has not been a reliable one for the
past few years, but now things have changed and the
opportunity is clear as a bell.  And this works at virtually
any price range, because there's demand from $200,000
to $2 million.  I've seen recent investor flips selling for
150% of their purchase price.  Of course they won't all go
for that type of markup, but you can see how it's possible
to spend quite a bit on a remodel and still make an
excellent return.

If you have cash and want to make a greater return than the
bank is paying you, give this strategy some consideration.
I can find you fixer upper deals, and help you sell the homes
once they are remodeled.  I will also tell you the specific
things my buyers are asking for, so when you do your
remodel you know exactly where money is well spent.

In conclusion, there's abundant demand in Paradise Valley
and Scottsdale, and a real shortage of quality homes.  Where
there is a problem, there is an opportunity, and this looks like
"the" strategy for the coming year.  To learn more, please
reply to this email or call me at (480) 442-7325.

Regards,
Alex