According to the news media, the world has ended. Sorry folks, everything crashed –there’s no more real estate. Banks are no longer issuing home loans and no one is buying anything any more. It’s over! 

Back here on planet Earth however, things aren’t as gloomy as in TVLand. Sure, the Phoenix Arizona real estate market isn’t what it was a few years ago, but homes are being bought and sold every day. Banks are still issuing loans believe it or not, and great deals abound for those looking to buy. 

Buy now? Why, yes. You are no doubt familiar with the most basic rule of investing – “buy low and sell high.” Well, the “buy low” part requires a period of time when prices are low, and that would be right about now. Waiting for the market to improve before jumping in? That’s when the prices will already have increased, and buying then would go against the simple rule we just mentioned. 

There is no doubt that the market will go up again (because, historically, that’s what the Phoenix Arizona real estate market always does), we just don’t know when that will happen. What we do know is that now is a pretty good time to get started investing in real estate, so for anyone thinking in that direction, let’s review the five most important steps in getting started:

Have a clear plan. Real estate investing is a business and should be treated as such, not as a hobby. Sit down and make a plan for it then. Will you be investing for the long-term (renting) or short-term (fixing and flipping)? How much time can you set aside for your business every week? What work can you do yourself and what work will you need help with? What are your overall goals for real estate investing? Remember, despite what late-night infomercials say, getting rich “overnight” usually takes years, so having realistic expectations is very important too. 

Line up financing. Getting pre-approved for a loan before you find a property is a must.  Talk to several lenders, talk to your Realtor and ask for recommendations. When you complete this step you will know exactly how much money for the down payment you will need, what the rules for seller-financing are, and what you can expect the loan process will look like. If you plan on purchasing a property to rehab, ask about loan programs that provide money for that too. 

Line up your own cash. We have to bring up the late night “real estate gurus” again… “You don’t need any cash to buy an investment property,” they like to exclaim. Yeah right.  Even if you can find a property that can be purchased for no money down (not as easy as it sounds), you still need to have cash in the bank for other costs.  Like repairs. Or unexpected expenses. Or for mortgage payments when your tenant suddenly leaves and you are unable to find another one right away. Not having enough cash reserves is perhaps the biggest mistake rookie Phoenix Arizona real estate investors make, and it’s a mistake that can cost you dearly. So how much in cash reserves should you have? There’s no definitive answer to this question; you have to consider the property you plan on buying and try to determine what expenses you may have to deal with (new roof soon? water heater? flaky tenants?). Three-to-six-monthsworth of mortgage payments and expenses is a good rule of thumb, but again, your situation may vary. 

Assemble your team. Once you are ready to get started, you don’t have to (and shouldn’t) go it alone. There are real estate professionals that can help you along the way. First, you will need a good Realtor team (and fortunately you already know one ;). The Realtors’ job is not only to help you find the right property, but also to answer questions and guide you through the process. You’ll also need a good accountant who can answer taxrelated questions. Knowing a good property inspector is also a plus, as well as knowing a few loan officers who are familiar with investment properties. 

Acquire knowledge. First let us say this: you should invest in what you are already familiar with. This can mean the area you know well, like a particular neighborhood; it can also mean a type of property like a single family home, or condo, or retirement community, or a fixer-upper if you are the handy kind.  Forget about out-of-state pie-in-the-sky “opportunities” – putting your money into something you don’t know usually means getting fleeced. Now, once you’ve decided what you are going to invest in, your job is to learn everything you can about it. Talk to the Realtor who knows the area well, talk to other investors, read a book or two. Run your idea by your accountant and see what he or she thinks. The more information you have at your fingertips the better.  To learn more about investing in Phoenix Arizona Real Estate give us, your friendly neighborhood real estate pro, a call. 

A short sale is when a lender accepts less than the amount due to satisfy the loan. In other words, the lender “forgives” the borrower a part of the debt.  As you can imagine, lenders are not too keen on this, and the procedure to complete a short sale is neither simple nor easy. Typically, lenders will consider approving a short sale only when they calculate that it’s in their best interest. For example, the borrower is unable to repay the loan, is facing a foreclosure, and the current value of the home is less than the loan balance. 

Borrower may put the home up for sale, find the buyer, and request that the lender accepts the proceeds of the short sale as the full repayment of the loan. The lender will consider whether this will net them more money than a foreclosure and whether they could get the money faster. If so, they may approve a short sale. Like we said, the short sale process is neither simple nor easy, and there are multiple levels of approval the borrower must go through. The short sale also has a negative impact on a borrower’s credit report, but far less than the impact of a Foreclosure.  For many Arizona Home Owners a Short Sale may be their best option to get rid of a depreciating asset. 

To learn more about Short Sales in Arizona and to see if you and your home qualify for a Short Sale, please Call 480-776-7291.  Read our Short Sales Frequently Asked Questions to learn more.

We strive to be the most informative website in the Phoenix Real Estate Market.  At myREALpro.com you can search the Arizona Multiple Listing Service (ARMLS) for Residential and Commercial Real Estate For Sale or For Rent.  Shop for homes in Chandler Arizona and Gilbert Arizona and throughout the Phoenix Real Estate Market.  Receive Free Professional House Valuation for Real Estate you own in Chandler Arizona and Gilbert Arizona or anywhere in the Phoenix Metro.  Search for Rental Homes, Townhouses and Apartments using our Rental House Search Engine .  View luxury homes for sale in Chandler, Gilbert, Mesa, Tempe, Goodyear, Litchfield Park and Phoenix Metro.  Now you can use our New Homes Search Engine to find the perfect home including New Home Builder Information, Floor Plans, Elevation images and more,  in brand New Neighborhodds under development in Phoenix Arizona Real Estate Market.  Subscribe to our Home Owner News , an Informative Real Estate Newsletter with valuable tips and tricks and a fresh perspective on the Phoenix Real Estate Market.  Read the latest Real Estate news for the entire valley of the Sun including our Blog.

All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumers personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing.

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