Thom Mahan
Realtor/Investment Expert
thommahan@gmail.com
www.bargainpropertynow.com
This is a great article from Forbes Magazine. There are some unbelievable bargains in the Phoenix metro area right now. I have several wholesale properties available; visit the featured properties on my website.
http://www.bargainpropertynow.com/html/featured_properties.html
If you are looking for a real estate agent that puts your needs before anything else, than I would love to represent you and help you find exactly what you’re looking for. Please feel free to contact me directly at 623-476-9092 or via email at ThomMahan@gmail.com.
Buy Real Estate Now
Stephane Fitch, 11.05.08, 06:00 AM EST
Forbes gathered four real estate experts to examine the broken, but perhaps bottoming sector.
11.27.08 - First, the bad news. New home sales in the U.S. haven't been this low since 1991, according to the Commerce Department. Now the good news. New home sales in the U.S. haven't been this low since 1991.
This means prices are back to where they had been in 2004, which is where they had been when this market really started to roar. Even better news for the real-estate minded is that some experts see that even if we're not near a bottom of the housing market, we are on the right track. Jeremy Grantham, the chairman of GMO, and a well-respected market prognosticator, said back in October that the U.S. market is at least halfway to a full correction. Also, even now, some markets are holding up reasonably well. According to the S&P/Case-Shiller Home Price Index over the past year the Dallas housing market has seen its values fall 2.7%, still a loss, but much better than the equities markets. Charlotte is down 3.5% in that time. Even the worst market, Phoenix is down 32% according to the index. Yes, quite bad, but the S&P 500 is down 38% over the past year.
Also, it looks like Uncle Sam is here to rescue the real estate market. The federal government plans to buy up $600 billion in debt either issued or backstopped by Fannie Mae and Freddie Mac. This action pushed down rates nationally last week, as much as half a percent, on good old 30-year mortgages. So real estate money just got cheaper.
Real Estate Investment Trusts are also being talked up once again. In the paper "Securities for Uncertain Times" Raymond James' Director of Real Estate Research, Paul Puryear, says the sentiment against REITs has swung too far negative and recommends several to investors, including the Kimco Realty Corporation, Mid-America Apartments and National Retail Properties. All sport attractive yields, and are considered "safety first" investments by Puryear.
Forbes has done its own research in order to make sense of the real estate markets, assembling a team of experts to analyze the lay of the land. A lively e-mail exchange followed, with picks in residential real estate and stocks. The panel included Spencer Rascoff of Zillow.com, Michael Feder of Radar Logic, Donald Trump Jr. of the Trump Organization and Peter Slatin of Real Capital Markets. The moderator, Stephane Fitch, covers real estate for Forbes magazine.
-David Serchuk
On Halloween, Radar Logic published a new compendium of housing for the year ending in August.
The results were frightening: House prices have held up in just a precious few cities (Milwaukee, up 3%; Columbus, flat; Charlotte, down 3%). All the big California cities tanked, falling 23% to 28%. Prices in Phoenix and Vegas dropped 29% and 30%. Even prices in resilient New York City are off 7%.
These kinds of price declines in housing are unprecedented. Our friends at Zillow.com reported on Oct. 29 that half of American homeowners believe their residences are worth just as much or even more than they were worth a year ago.
Forbes has assembled a panel of real estate experts to discuss the current markets. A lively e-mail exchange was the result, with picks in both residential real estate and stocks. Joining us were Spencer Rascoff of Zillow.com, Michael Feder of Radar Logic, Donald Trump Jr. of the Trump Organization and Peter Slatin of Real Capital Analytics. The moderator, Stephane Fitch, covers real estate for Forbes magazine.
In Pictures: What To Buy And Where
Spencer Rascoff, Zillow.com: I do think this is a great time to be buying residential real estate, with two caveats. First, you need financing, which is much more difficult than in the past. Second, you need to be smart about it. The good old days when anyone could make millions flipping homes in their spare time are over.
I have four friends who have raised investment funds in the last few months to buy up residential real estate--one in Miami, one in San Diego, one in New York/New Jersey and one in Seattle. It's a great time to be doing this, if you're sharp and well capitalized.
Showing posts with label Canada. Show all posts
Showing posts with label Canada. Show all posts
Saturday, March 14, 2009
Time is Right to Invest in Arizona Real Estate
Thom MahanRealtor/Investment Expert
thommahan@gmail.com
www.bargainpropertynow.com
Due to the current market conditions, there are thousands of incredible investment opportunities available in the Phoenix, Arizona area. These include single family homes, condos, townhomes, gated communities and golf course properties. Many of these homes are being purchased for less than $40.00 per square foot.
The median single family home price in metro Phoenix fell to $130,000 in January 2009, according to local MLS data. At $130,000, the median home price in metro Phoenix has fallen 51% from the peak price of $264,800 in June 2006.
The home shown is a gorgeous 2 story 4 bedroom, 3 bath with 2,270 sq ft located in Buckeye, AZ (western Phoenix suburb). The asking price is $84,500, that’s under $38 per square foot. This home is just one of several wholesale properties that I currently have available. To see more, visit the featured properties on my website. http://www.bargainpropertynow.com/html/featured_properties.html
If you are looking for a real estate agent that puts your needs before anything else, than I would love to represent you and help you find exactly what you’re looking for. Please feel free to contact me directly at 623-476-9092 or via email at ThomMahan@gmail.com.
Saturday, February 28, 2009
Forbes Magazine says "10 Million Millionaires will be Created by the year 2016"
The Great Depression: A Time of Great Opportunity!
Thom Mahan, Real Estate Investment Expert
www.BargainPropertyNow.com
Did you know that more millionaires were made during The Great Depression than in any other period in U.S. history? Forbes Magazine says "10 million millionaires will be created by the year 2016." So what are the most common traits of the wealthy? They reject conventional wisdom. They understand the simple and powerful truths of money. And often times, their greatest successes were birthed out of adversity. They are ordinary people just like you and me!
Most people will try to ride out the current economic crisis by simply keeping their heads above water. Many of these individuals and families will be able to tread water for a year or two but will eventually drown in a sea of debt. However, a select few will look beyond the crisis and seek out the many opportunities that are currently being created.
One of these opportunities is in Real Estate Investment. There are areas across the United States where bank-owned properties are being sold for pennies on the dollar. And these are not a small percentage of the available properties like in years past. In fact, more than 50% of the single-family homes sold in Arizona are bank-owned properties. Literally tens of thousands of homes in the greater Phoenix area will be sold for a fraction of the appraised value. The median single family home price in metro Phoenix fell to $130,000 in January 2009, according to local MLS data. At $130,000, the median home price in metro Phoenix has fallen 51% from the peak price of $264,800 in June 2006. MLS data also shows that there are over 3,000 two-four bedroom homes listed for $50,000 and less.
So how can you take advantage of these once in a life-time opportunities and become one of the next members of the Forbes List of Millionaires? My first suggestion is don’t try to do it alone. Find a solid team of real estate experts that can put their talents to work for you. The team should consist of a top-notch agent, appraiser, inspector and property manager. I am a proud member of the Real Estate and Beyond team here in Phoenix. The team is made up of honest, hard-working members that place the needs of their clients above all else.
Once you have selected a quality team that can assist you in accomplishing your financial goals it is time to design a strategy. In the past, you were able to design a stock portfolio that balanced low-and high-risk stocks to achieve your goals. Not anymore though, Wall Street has let us down and the average investor will not get involved with the stock market for several years. Real Estate has become a much more stable and attractive way to realize your financial security.
Here’s just one example of how to make the real estate opportunities in the Phoenix area work for you. Let’s say John and Mary Smith have $50,000 available to invest. They can place it in a savings account and earn 2% interest, invest in the highly vulnerable stock market or invest in real estate. They decide to go with real estate because of its solid security and potential. Mr. and Mrs. Smith purchase five homes in the Phoenix area for $50,000 a piece. They put 20% down on each property and finance the rest. Here is how their monthly financial report breaks down
Mortgage Principle and Interest at 6% = $239.82
Taxes and Insurance = $85.00
Property Management = $75.00
Maintenance = $60.00
Total: $459.82
Total for all five properties: $2,299.10
Average rental rate for a 3 bedroom home = $850.00
Total for all five properties: $4,250.00
Monthly Profit: $1950.90
Annual Profit: $23,410.80
The best thing about this strategy is that the renters are not only generating income for the Smith’s, they are also paying their mortgage for them. Their goal will be to hold onto the properties until the housing market rebounds, which historically always has. In approximately five years they will sell the homes on average for $125,000. Here is how the Smith’s five year investment breaks down:
Investment = $50,000.00
Remaining Mortgage = $189,926.20
Total: $239,962.20
Profit from rentals over five years = $117,054.00
Revenue from sale of five homes = $625,000.00
Total: $742,054.00
Total Profit: $502,091.80
By investing conservatively in the Phoenix real estate market, Mr. and Mrs. Smith made over half of a million dollars in just five years. These estimates were made using extremely conservative figures just to show how incredible this opportunity really is. And remember, you don’t need to have $50,000 like the Smith’s did. Anyone can begin acquiring property in this market for much less and take advantage of this opportunity. For more information and to see several of the properties currently available in the Phoenix market visit us at http://www.bargainpropertynow.com/. Whether you decide to use the services of my team or not, I wish you and your family all the happiness and success in the world.
"Prosperity & freedom is yours, if you want it!"
Thom Mahan, Real Estate Investment Expert
www.BargainPropertyNow.com
Did you know that more millionaires were made during The Great Depression than in any other period in U.S. history? Forbes Magazine says "10 million millionaires will be created by the year 2016." So what are the most common traits of the wealthy? They reject conventional wisdom. They understand the simple and powerful truths of money. And often times, their greatest successes were birthed out of adversity. They are ordinary people just like you and me!
Most people will try to ride out the current economic crisis by simply keeping their heads above water. Many of these individuals and families will be able to tread water for a year or two but will eventually drown in a sea of debt. However, a select few will look beyond the crisis and seek out the many opportunities that are currently being created.
One of these opportunities is in Real Estate Investment. There are areas across the United States where bank-owned properties are being sold for pennies on the dollar. And these are not a small percentage of the available properties like in years past. In fact, more than 50% of the single-family homes sold in Arizona are bank-owned properties. Literally tens of thousands of homes in the greater Phoenix area will be sold for a fraction of the appraised value. The median single family home price in metro Phoenix fell to $130,000 in January 2009, according to local MLS data. At $130,000, the median home price in metro Phoenix has fallen 51% from the peak price of $264,800 in June 2006. MLS data also shows that there are over 3,000 two-four bedroom homes listed for $50,000 and less.
So how can you take advantage of these once in a life-time opportunities and become one of the next members of the Forbes List of Millionaires? My first suggestion is don’t try to do it alone. Find a solid team of real estate experts that can put their talents to work for you. The team should consist of a top-notch agent, appraiser, inspector and property manager. I am a proud member of the Real Estate and Beyond team here in Phoenix. The team is made up of honest, hard-working members that place the needs of their clients above all else.
Once you have selected a quality team that can assist you in accomplishing your financial goals it is time to design a strategy. In the past, you were able to design a stock portfolio that balanced low-and high-risk stocks to achieve your goals. Not anymore though, Wall Street has let us down and the average investor will not get involved with the stock market for several years. Real Estate has become a much more stable and attractive way to realize your financial security.
Here’s just one example of how to make the real estate opportunities in the Phoenix area work for you. Let’s say John and Mary Smith have $50,000 available to invest. They can place it in a savings account and earn 2% interest, invest in the highly vulnerable stock market or invest in real estate. They decide to go with real estate because of its solid security and potential. Mr. and Mrs. Smith purchase five homes in the Phoenix area for $50,000 a piece. They put 20% down on each property and finance the rest. Here is how their monthly financial report breaks down
Mortgage Principle and Interest at 6% = $239.82
Taxes and Insurance = $85.00
Property Management = $75.00
Maintenance = $60.00
Total: $459.82
Total for all five properties: $2,299.10
Average rental rate for a 3 bedroom home = $850.00
Total for all five properties: $4,250.00
Monthly Profit: $1950.90
Annual Profit: $23,410.80
The best thing about this strategy is that the renters are not only generating income for the Smith’s, they are also paying their mortgage for them. Their goal will be to hold onto the properties until the housing market rebounds, which historically always has. In approximately five years they will sell the homes on average for $125,000. Here is how the Smith’s five year investment breaks down:
Investment = $50,000.00
Remaining Mortgage = $189,926.20
Total: $239,962.20
Profit from rentals over five years = $117,054.00
Revenue from sale of five homes = $625,000.00
Total: $742,054.00
Total Profit: $502,091.80
By investing conservatively in the Phoenix real estate market, Mr. and Mrs. Smith made over half of a million dollars in just five years. These estimates were made using extremely conservative figures just to show how incredible this opportunity really is. And remember, you don’t need to have $50,000 like the Smith’s did. Anyone can begin acquiring property in this market for much less and take advantage of this opportunity. For more information and to see several of the properties currently available in the Phoenix market visit us at http://www.bargainpropertynow.com/. Whether you decide to use the services of my team or not, I wish you and your family all the happiness and success in the world.
"Prosperity & freedom is yours, if you want it!"
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