Hey, Im a wholesaler and new to Phx. For Realtors extensively working with cash buyers/investors, what areas are investors buying in? what prices? Thx

Asked by Jay, Phoenix, AZ Tue Feb 8, 2011

Im looking to starting finding deals in area where cash buyers and investors are actively buying. I also want to know what price range are they buying? How much are rehabbers willing to put into rehab project now with so many newer homes on the market here in Phoenix.

If youre a Realtor or another wholesaler and you work with investors actively buying property, we could work together to close deals. Please contact me via Trulia. Thanks.

Jay

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12
Brenda & Ron…, Agent, Mesa, AZ
Wed Feb 9, 2011
Okay. it will have to be a good deal but if you get some let me know.
0 votes
Jay, , Phoenix, AZ
Wed Feb 9, 2011
Hey Brenda, I will mainly do double, same day closings. thanks.

Jay
0 votes
Jay, , Phoenix, AZ
Wed Feb 9, 2011
Hey Brenda, I will mainly do double, same day closings. thanks.

Jay
0 votes
Brenda & Ron…, Agent, Mesa, AZ
Wed Feb 9, 2011
Jay,
We have a few sources so feel free to contact us with properties. Are you closing on them first or trying to do a double close?
0 votes
Jay, , Phoenix, AZ
Wed Feb 9, 2011
Thank You. All the info has been very helpful. As a wholesaler once I get a property under contract, I start looking for a buyer. Is it typical for wholesalers to contact Realtors like you all that work strictly with investors and cash buyers?

Jay
0 votes
The Urban Te…, Agent, Phoenix, AZ
Tue Feb 8, 2011
Many of the investors we are working with are choosing the downtown Phoenix region. Downtown Phoenix has the highest density of jobs in the State and jobs mean tenants. In addition, most people are being focusing on outer areas of the valley and this leaves a bit less competition for investors.
0 votes
Brenda & Ron…, Agent, Mesa, AZ
Tue Feb 8, 2011
Jay

We work with quite a few investors, local and from other countries. Purchases vary per investor.

The investors that I have that are purchasing from (Canada, China, and Australia) generally are staying below $100,000 and are renting the homes out. Prefering 3+ bedrooms, unless it gets on the low side then they will pick up townhomes but they want 2 bedrooms+ to keep vacancy factor low (1 bedroom condo/townhomes have more turn over in tenants). As far as the areas, this will vary, good areas that will pull in the best rents for what they are picking up the homes for. There are quite a few areas that are great for investors. Generally they don't go out to the far outskirts because they want a larger source of people wanting to rent the home and as you go out you get less activity.

The local investors are not only picking up homes to rent, but we also have several picking up homes to flip. They do purchase homes below $100K, but they also pick up homes over that as well. It just depends on the "deal" and what needs to be done and what they can sell it for. They usually prefer homes that don't need to be gutted, but for the right price they even purchase these. The lower priced homes usually work great, but they will go higher. Not upper end, but one of the last purchases they picked it up for over $200K and put $60K in it and sold it for $65,000 profit above their fix up costs. They don't all go this well of course! Some are only netting $10K. So if you are looking to pick up homes and sell to the investors, then it needs to give them a decent profit to be made or a good enough purchase for rental possibilities. They won't buy on the high side ever.

The amount a rehabber/flipper is willing to put into the home does vary, but many of them are willing to purchase, put in a quick $6K to $10K and make a $12 - $15K true net profit on it. However, there are times they end up with a $30-$40K profit also.

Hopefully we will be able to do some business together!

Best Regards,


Brenda and Ron Cunningham
602-980-3133 / 602-499-0694
Recognized in the Phoenix Business Journal as on of the Top 50 Realtors in the Valley (July 2010)
0 votes
Dagmar Mouri…, , Chandler, AZ
Tue Feb 8, 2011
The city of Maricopa is a great choice for investors. Prices are extremely low and homes rent well. You can easily make a profit with your rental income considering all costs and low interest rates. That calculation does not work for many other areas in the Valley. Commutes from Maricopa to Tempe, Chandler and South Phoenix are around 35 to 45 minutes. From East Mesa you are looking at around 10 minutes less but prices are almost double. Maricopa housing was built mainly between 2004 and 2007 and therefore most homes are in good shape, are energy efficient and have a modern look. Our subdivisions have playgrounds, parks, pools, soccer and baseball fields and more. We also have an award winning Adult community, Province, and two top notch golf courses. Some wonder if there is something wrong with Maricopa because we have the most incredible deals here. The answer is “no”. The reason for so many opportunities lies in the fact that 90% of Maricopa was built in the boom years and home owners are facing tight budgets and homes that are “under water”. The big supply of homes on the Maricopa real estate market creates the pressure on prices. Once real estate recovers the outlook for Maricopa is great – I like Maricopa! I live here and I work here as a Realtor
0 votes
Shawn Burns, Agent, Scottsdale, AZ
Tue Feb 8, 2011
Jay,

I work with several investors that do cash purchases on all their properties. As Doug mentioned, the most common requests I am getting are for three bedroom, two bath homes with a two car garage mainly in well established neighborhoods. Most of the time, we are looking up to $100,000 on these home and the improvements are really based on the home, the neighborhood and original price.

Feel free to contact me (623.237.1692) to discuss further.

Shawn
0 votes
Doug McVinua, Agent, Gilbert, AZ
Tue Feb 8, 2011
Jay

Of course the best way will be to pull some numbers and identify the sales trends.

Doug
Web Reference:  http://www.McVinua.com
0 votes
Doug McVinua, Agent, Gilbert, AZ
Tue Feb 8, 2011
Jay

I'm currently seeing strong interest in the outlying affordable areas for the basic 3 bed, 2 bath 2 garage. Lots of cash and or strong buyers purchasing 2nd homes at this time. That will decline to some degree once it warms up and switch over to more of the first time buyers.

Seeing a number of multiple bids on clean sharp homes under $150,000.

Doug McVinua
HomeSmart

Arizona Homes for Sale by a Guy from Iowa
Web Reference:  http://www.McVinua.com
0 votes
Agustin Hern…, Agent, Peoria, AZ
Tue Feb 8, 2011
Jay,
I work extensively with investors and cash buyers.
Feel free to contact me to discuss pricing, rehabbing, geographics and overall strategy.
Agustin Hernandez, Casa Latino Real Estate
623-332-5497
ahernandez78@cox.net
0 votes
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