Three Ways to start buying Real Estate like an Investor

This is the first in a three part series on real estate investment

Part One: 

See Potential in Properties

Finding the Deal

                Finding distressed properties is an important part of finding a priced below market value.  Many of you may remember the abundant foreclosure and short sale market from a couple of years ago.  While there are still some of these properties that exist, the numbers are much lower than they were, and banks have started to do some basic fixes that they were not previously doing, making these properties more marketable and therefore the profit potential much slimmer.  Instead of finding a deal in the foreclosure market, look for properties with the 3 D’s.  Death, divorce, and disease are three types of situations that may force the hand of a seller to take a reduced price on a property with the hope of a quick sale.  This can be a major factor helping you to negotiate and score a great price on a property.  Another great strategy would be to find a property in distress may be searching tax records on properties.  Finding properties that have tax liens through the county assessor’s office due to delinquent taxes is potentially a longer term procedure, but could yield high profit margins. 

Location, Location, Location

                The old real estate adage still rings true.  Property located in desirable markets is worth more than less desirable areas.  Make sure that the location fits the intended purpose of the property.  If purchasing a property for a business, how much foot/car traffic passes by the property on a daily basis?  When purchasing a residential investment, find out the neighborhood market values.  It is best to purchase the least expensive home in the best neighborhood versus the most expensive home in the neighborhood.   Have your real estate agent run a CMA (comparable market analysis) to determine market values for the property.  If the property is selling for below market value, you MAY have a good investment. 

Is the property worth the risk?

                Determining the risk factors of your investment will mean doing some more research on the property.  There is most likely a reason the property is priced below market value.  If the property will need remodeling, it is best to contact a contractor to have them walk the property with you.  They can help you determine what the costs associated with improving the property would be.  Make sure to have all permits and license labor costs upfront.  Unless you have a cash project, you may need to look at your carrying costs while remodeling as well.  Having a timeline and deadlines will help keep your project and budget on track.   Many savvy investors like to earn their profits with a little “sweat equity”.  Our next topic in this series will be focusing on the changes you can actively take a part in and when it might be best to hire some help.  

Falling in Love- Online: Beware!

It's true, just like a bad match from E-Harmony,  a property posted online that looks "too good to be true," may be just that.

As a real estate agent when I list a home, I like to hire a professional photographer.  Why?  I know that most home buyers start their searches online.  Pictures are a great way to visualize what a home has to offer.  A professional photographer uses their skills and knowledge to highlight the homes the best way possible.  They take pictures at the right time of day for the best lighting, they use wide angle lenses making rooms appear larger, they Photoshop or other editing software.  The results are amazing and often a home can look even better than it does in person.  So while it is fine to start your search online, make sure that you actually have an agent preview the home with you before "moving in" mentally.

Looking online provides aspects of the home that the listing agent or homeowner want you to know about.  It does not give you a sense of how the home flows from room to room, or how it might fit your lifestyle.

In short, once you have identified a home that you think may have potential, it is best to give us a call and take a quick tour.  It may reveal that the home really is your dream home, or that it was just smoke and mirrors!

Thanks Great Colorado Homes for the wonderful info-graphic.

We DOUBLE DOG DARE YOU- Join our Prescott Fun Challenge

There are so many amazing things to see and do in the little town on Prescott and summer is the perfect time to get out with friends and loved ones and experience what our town has to offer.  With the recent completion of the Prescott Circle Trail, Amy and I would like to challenge all of you to get out of the house and hike, run, or bike a section or the whole ginormous trail!  It is 68 miles from start to finish!
The section we are highlighting today is from the Peavine Trailhead at the intersection of Sundog Ranch Rd over to the Turley Trail Head.  It offers lots of fun climbs, breathtaking views, for you bikers, wicked fast descents(be careful for other trail users).  From Sundog to Turley, it 8.3 miles and a little over 1200 feet of climbing and it took me about an hour to ride with another 10 minutes back to the trail head via Yavpe Connector.  I've done the trail as an out and back, and it took me about 2 hrs.
Hope you enjoy this trail as much as I did!!

The line in the map indicates the Turley Trail Head.  Also, the elevation gradients are 5000 - 6200 feet
at 200' each.

Not into biking- try hiking a section.  A group of our friends recently hiked the entire trail and backpacked along the way!  Way to go Carlisi's!!
Take a quick Selfie- or Groupie and post it to our FB page or Instagram with the #PrescottFun

620 ft

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Top 3 Reasons for you to love Productive Landscape

Productive landscape- just what the heck is it?  According to Team Maneely, with Homesmart Fine Homes and Land, productive landscaping is anything added to your landscape that produces a benefit for the homeowner.  It can be as simple as a fast growing shade tree creating a little relief from the intense mountain sun, or as involved as a floral arrangement used to attract hummingbirds.

For Team Maneely, we prefer to have a landscape that helps produce food for our family.  Our backyard contains six different fruit trees.  We have two peach, two cherry, an apple and a pear.   And this year our cherry crop is amazing, and it looks like the apple and peaches are well on their way too.  The poor pear just never seems to grow beyond microscopic size.  Along with our fruit trees we have an herb garden complete with rosemary, thyme, and mint, a large section of arugula, and a thorn free blackberry shrub .  We have been busy preserving our cherry harvest by canning. 

TOP THREE REASONS TO LOVE PRODUCTIVE LANDSCAPE

3.)  Give your property an edge and added value by having your landscape serve a unique purpose.  Love butterflies?  Make sure to incorporate the flowers they seek.  Enjoy bird watching? Include a feeder or bath to attract them.  Fancy yourself an Italian foodie?  Plant some tomatoes and make a sauce to knock the socks off your guests.  If you enjoy it, it is likely that others will too!

2.) Productive landscape creates a unique space.  I remember watching Dennis the Menace as a child and his affable elder neighbor Wilson spent a great amount of time with his prize garden.  At some point he even had created an award winning space as deemed by the garden society.  If you have a productive landscape chances are you have created a unique space that can be used as a selling feature for your real estate agent to highlight in marketing your property to others.   

1.)  Landscape that is productive serves a greater purpose.  We a little thought and ingenuity, you can have space that is even "brown thumb" friendly and easy to maintain but still serves a greater purpose.  For instance, here in Prescott Arizona, we conserve water.  Maybe your productive landscape are plants that are drought tolerant.  Perhaps you have added a water cistern to help collect rainwater for landscaping.  Both the rainwater collection and drought tolerant plants are productive landscape and will serve a greater purpose for potential buyers.  

Looking for a deal?

Head over to StoneRidge this weekend for the annual community garage sale.  The sale takes place Saturday May 16 from 7 a.m- 2 p.m.

One of my favorite parts of spring and summer are all the yards sales!  I have included some quick tips for both sellers and buyers to help you enjoy "sale-ing"

Seller Strategies

1.) Prep work:  Lots of work goes into a garage sale.  Make sure to remember old grocery bags for purchases, and change from the bank.   I generally get change for $100 in all denominations.  We save our change, so coinage is easy for us.  If you don't save your change, make sure that you have some of that on hand too.

2.)  Keep pets away from the sale.  Sure Fido is super cute, but some people are afraid of pets or may have allergies.  Safety is also a concern since there will be extra traffic.

3.)  Have a "Free" box at the end of the driveway.  Everyone loves something free.  I typically have mismatched items, small toys, etc in my free bin.

4.)  Lure traffic.  Put your best items close to the street.  Many people will drive by if they don't see items worth stopping for.  

5.)  Price appropriately-  Items should be about a third of their value.  Make sure large items, like a couch, have a large price sign.  

6.)  Consider allowing your kids to host a lemonade stand.  Often times, their lemonade stand is the most successful portion of our yard sale!  Plus with summer on the horizon, it gives them a little "mad cash" to spend on summer fun.

Buyer Strategies

1.) Dress appropriately, wear comfy shoes, and use sunscreen.  Bring your own sturdy shopping bag.  Make sure you have small bills and change.  You may wish to have newspaper in your car to wrap fragile items.  Tape measures are a good tool to have as well.

2.)  Arrive early for best selection, later for best deals.

3.)  If you are shopping for kids sporting equipment like cleats, draw their current shoes on a piece of paper to take with you.  

4.)  Let your kids pay for their items.  This is a two fold strategy.  Often kids will get a better price than a parent.  And it is a great learning opportunity for budgeting, math, and checking for correct change.

Tips and Tricks for a Smoother Loan Process VLOG #1

Welcome to our first Vlog!  Watch this video for some quick tips on lending.  Buying a home can seem like an overwhelming process and this is a good place to start.  There are many lenders to choose from, but they are not created equal.  Give us a call and we will help you find the best in the business while purchasing a home in the Prescott area.  You can check out more video on our YouTube channel "Mr. Prescott Real Estate", while you are there subscribe and keep up-to-date on real estate related news.

Have a great day and enjoy spring break!

Jason and Amy Maneely                                     
Team Maneely@gmail.com
928-925-6050-Jason
928-830-8282-Amy
www.TeamManeely.com

Home Inspection 101

When you buy a Prescott area home, you need to know exactly what you’re buying. Imagine how frustrated you’d be to find out that the hot water heater wasn’t working—in the middle of a shower! This is why you should have a home inspection before you buy your home. A home inspection is an important part of buying your home. Before you hire a home inspector, ask candidates a few questions to make sure you hire a trustworthy inspector.

1. What does your inspection cover? Not all inspections are the same. Ask for copies of previous home inspections so you can see exactly what they will check inside a Prescott area home. If you are concerned about something specific, like a leaky faucet in the bathroom, mention that to the inspector so they can check it out.
2. Are you licensed or certified? If you live in a state that licenses home inspectors, ask to see their license. At the very least, choose a home inspector who belongs to American Society of Home Inspectors. This shows a level of professionalism and education that you can trust.
3. What kind of report will you give me? You should expect a written report detailing what the inspector found. Most inspectors will give you a typed report within a week of the inspection. Make sure the inspector will be available to explain anything on the report that doesn’t make sense to you.
4. Will I be able to attend the inspection? If the inspector refuses to let you be present during the home inspection, find someone else. This is your chance to know exactly what you are buying and what potential repairs you or the seller will have to make.

As your real estate agent, I will guide you through the home buying process. Let me help you find your new Prescott home. Call me today at 928-925-6050 or email me at teammaneely@gmail.com.