The Benefit of Having Great Partners
By admin | June 14, 2009
Great partners are, of course, beneficial to any venture. As it turns out, Randy, who was raised in Washington state, grew up around water-skiing. It ended up becoming a passion. Randy became a certified water-ski instructor, had his own water-ski school, and skied some of the certified tournaments around the country.
Clearly, his background, even if serendipitous to our project, turned out to be extremely advantageous for us in developing Spring Mountain Ski Ranch. First, he knows about things that the rest of us hadn’t even conceived, such as the need to create lakes with specific slopes so as to reduce the wake from boats and skiers as soon as possible after they have passed. Second, his contacts in the industry have been immensely useful, not only during the construction phase, but also with respect to the selling of lots and the running of the entire operation.
A passion that Randy and Ross share is car racing. While Randy races dirt late models, Ross races remote-controlled scale models. It is not an idle hobby. Currently, Ross is the Arizona state champion, and he also won the 2007 United States Gas Championships.
Not only does this take Ross all over the country for race meetings, but Ross has created what is now touted by the industry as the nation’s best racetrack outside Phoenix. Even with our hobbies, we cannot separate real estate from our thinking! More recently, with Curt Denny joining the team as a fourth partner, we have covered many of the basic skills needed for our operation. If all partners had the same set of skills, then arguably some people would be redundant. Rather, our skills are complementary, with some of us focusing on business structuring and compliance, project management, liaison with contractors, communications, equity funding, customer relations, and reporting, in addition to the core activities of sourcing, analyzing, negotiating, and acquiring pieces of real estate.
In fact, it was Curt’s search for a home to live in that led us to what could turn out to be our biggest project yet, involving 12 acres in the heart of Hollywood. This project is commercially sensitive and will have to be written about in a subsequent publication.
The point is that if you can assemble of group of people who may have wildly varying backgrounds, ages, interests, religions, circumstances, and points of view, but who nonetheless share a passion for excellence, a desire to do good, the drive to get the Job done no matter what, and a genuine zeal for real estate, then you
have the makings of a formidable force in real estate.
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Best Choice Properties
By admin | June 6, 2009
For readers unfamiliar with the Phoenix area, let me give some background as to why the region was and continues to be so popular. The climate in Phoenix is spectacular and very easy to get used to. Apart from 10 or so weeks during the height of summer, when temperatures can stay above 100°F (around 40°C) for a few weeks on end, the weather is just perfect, with 350 sunny days a year and low humidity. The job market is stable and growing, with many high-tech firms having headquarters or major centers here, such as Motorola, IBM, Honeywell, and Rockwell. Google has just relocated from Silicon Valley to Phoenix. There are many call centers such as the one for US Airways, and a plethora of other employers.
For a long time now, some 6,000 people have been moving into the greater Phoenix area every month. This provides ongoing demand for anything from podiatrists, hairstylists, and coffee shops to all flavors of real estate.
For a number of years, we were actively engaged in a wide variety of real estate ventures. We had bought orange groves, subdivided them into residential developments, and even had some of the homes constructed. We were involved with commercial retail development in outlying suburbs. However, like anyone operating in this fast-growing market, we couldn’t fail to see what was happening with land prices.
We had seen speculators buy land for a few hundred dollars an acre, only to sell it a few months later for twice as much, or even five times as much. You can only observe that for a limited time before you develop the desire to give it a go yourself.
We knew that being successful with land development or speculation required more than just buying some dirt, sitting on it, and selling it at a profit. Despite the tremendous growth in the region, there were vast tracts of land that were not part of the general upsurge in values. So we pooled our collective knowledge, researched areas, studied population trends, met with companies that specialize in monitoring real estate trends, and looked at a lot of pieces of land. After conducting this research for what seemed like years, we were ready to make some moves.
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Investing in stocks during the crisis – madness or bargain?
By admin | February 11, 2009
Is it reasonable to invest in stocks when the crisis progresses? Why should you risk your money an go against the current? Actually, it is a good idea to do behave differently than other people. Currently everybody is selling. It is surely one of the best periods to invest in stocks.
First of all, remember about the famous Warren Buffet’s quote: „attempt to be fearful when others are greedy and to be greedy only when others are fearful.” At the moment, stock market is filled with fear and many investors are convinced that the world has ended for them However, it is not quite so. The economy and the market will undoubtedly recover even if it takes longer than anticipated. Terefore, in times of economic crisis like the current one you are advised to benefit from the attractive prices and fearful atmosphere on the markets.
Obviously, this does not mean that you should invest your resources in companies with bad outlook. Remember tah before making a major, long-term investment, you must do some research and find companies that have strong and experienced management teams, positive track records of profitability and growth, and innovative R&D.
Although you may not find incredible bargains, there are surely some interesting bargains available to patient investors who focus on gains over the long term. There are many companies that the general market has dragged down to very low prices in spite of their great product lines.
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How to Pay Lower Payday Loan Fees
By admin | November 21, 2008
There is no easy method to discover an amazingly low fee on a payday loan. To put it simply, you will be forced to pay heavily for the ability to borrow money in a short amount of time. However, you should not be worried about paying over the top fees on your short term loan. Most states have recently established a law limiting the amount of the fee that a payday loan company can charge you with. States with such legal regulations join an increasing number of states that are reaching out to protect the citizens from exorbitant fees.
If the state you live in has established one of these laws, then you should be happy for their effort of protecting you against outrageous financial fees. As a matter of fact, financial fees are fixed among the most important payday loan firms. Payday loan customers will want to save their money on other fees that are likely to create a big hole in the wallet. As a part of the payday loan agreement, you may be asked to provide a check or your checking account information. This should make repayment of your loan relatively easy when payday comes around. The setback of that is that if you happen to bounce that check when the loan is due, you will be forced to pay huge fees. Fees will vary depending on the state you are in. You will not be eager to pay the returned check fee and associated fees that firms may charge under the legal regulations when you make this type of mistake.
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In times of financial crisis don’t follow the crowd!
By admin | October 31, 2008
It is difficult to invest your money in stock when everyone else seems to be selling. Typically all people are social creatures and we are not really eager to stand out from the crowd. Therefore, when the crowd is filled with fear and is running away from the market, it definitely requires some guts to walk in the opposite direction. Nevertheless, as Warren Buffet famously said, the successful investor should be ‘greedy when others are fearful and fearful when others are greedy.’ And I don’t mean to say that you are advised to throw your money away on stock in companies with a considerably impaired outlook, but there is still a great number of companies with excellent track records of profitability and growth, powerful management teams, great product lines, and innovative R&D, which have been dragged down with the general market to very low prices indeed. Although I am not going to give you any specific stock picks, you should remember that there are still some great buys out there for you to profit from.
In contrast to so many other things, stock can be valued, and in many cases market prices have gotten way out of line with what shares in companies are worth. Obviously, when stock increases to a price which seriously exceeds its value, it is probably the time to sell, but the market we are currently in is a bargain bucket for discerning buyers.
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Homeowners Insurance and Liability Coverage
By admin | September 14, 2008
It is always wise to protect your financial assets. Repairing or replacing your property is only part of the homeowners insurance equation. It is possible for your policy to go much beyond that to protect your financial situation by means of liability coverage.
Consider the following example, if a guest to your house falls down the stairs and suffers a serious injury, the guest’s insurance company may hold you responsible for thousands of dollars in medical bills. Should such a situation occur, your homeowners insurance would probably cover the costs up to a specified amount, and in some cases it may even cover legal fees that are involved.
Although standard policies normally offer $100,000 in liability protection, most insurance professionals suggest $300,000 of coverage or even more. High liability coverage is vital primarily for homeowners with potential safety threats, such as a swimming pool.
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How to find a matching foreclosure?
By admin | September 14, 2008
You are advised to consult a good listing service (for example RealtyTrac) that should enable you to choose search criteria based on a checklist that you should already have prepared. During a search for a foreclosed property for sale you might consider starting out with a broad foreclosure listing search and then narrowing it down to a several foreclosure property listings if you end up with too many houses. Try to experiment with various searches to see what the results in different areas, price ranges or square footage are. Finally, print out all the details on all the real estate foreclosures listings that caught your interest. It is important to make a habit of continuing to look for new foreclosure real estate listings or have the listing website notify you if a property is added that matches your criteria.
Topics: Buying a Home, Financial Advice, Personal Finance, Real Estate | Comments Off
Real Estate Investment – Buying Home for Cash
By admin | September 14, 2008
Depending on the actual situation on the market, paying cash has definitely some benefits from a seller’s perspective. Of course, certain experts may claim that it is always cash in the end, and of course it is. However, getting to the “end” prevents some buyers who are using financing from getting there.
Why Sellers Always Prefer Cash Offers?
Frequently you will find sellers accepting an all-cash purchase offer over a higher priced offer with typical or FHA loan financing. The reason for this is because they are well aware the cash offer is more probable to close. It simply includes fewer stumbling blocks. And in some cases a bird in the hand is worth two in the bush, in a manner of speaking.
• No Appraisal Contingency - Appraisals are not cast in gold. The most popular technique is reliance on comparable sales, also referred to as the comparative method, which includes deciding on three properties and comparing those values to the property in question, adjusting upward or downward for updates / missing features.
• No Loan Funding Contingency - Although a buyer may be fully qualified to purchase a house at inception, a hundred problems may arise during the loan process. Apart from the home itself not qualifying, to certain conditions for loan approval that a buyer is not able meet, to loans that were once available drying up during escrow.
• Faster Closing - A buyer does not need 30 or 45 days to close if the buyer is not getting a loan. After the home inspection and other contingencies have been satisfied or released, closing can occur in as little as 7 days, as long as the buyer is eager to sign a lead paint waiver.
Why Buyers Like to Purchase Homes for Cash?
When REO lenders posses many foreclosures in their portfolios, typically the lender will discount the list price of the home hoping that the property will attract multiple offers. Buyers who pay cash for REO homes win multiple offer situations in the majority of cases. However, there are more benefits for buyers:
• No need for mortgage payment
• Feeling of security
• Equity available in case of a financial emergency
• Market fluctuations are not important
• No restrictions on title transfer due to underlying loan
Topics: Buying a Home, Financial Advice, Real Estate | Comments Off
Home Loan Essentials
By admin | September 1, 2008
Below you can find a few home loan basic principles to prepare you in the simplest terms to apply and maintain a home loan.
- The Home Loan Application Procedure – The home loan application process is painful and abundant in details. Devote a certain amount of time in the beginning of the process to organize yourself and get everything you need together. By putting in the time up front, the application will seem simple and you will be prepared to roll in short order.
- Rates Do Change – Observe home loan rates to find significant fluctuations, especially the downward type. Refinancing is cheap in comparison to how much money you are able to save if you get the right low interest home loan. If you create a good relationship with your mortgage broker, he or she may possibly start calling you when the rates drop!
- Be Timely – Nothing can hurt or improve your credit rating more than how timely you pay your loan. If you pay it on time, your credit score will raise fast. Late payment will cause damage that will take a long time to fix.
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Homeowner insurance – replacement cost calculation
By admin | August 27, 2008
Is replacement cost the same as the sale price of a home?
- No, it isn’t. The selling price encompasses the value of the estate as well as the land the home is build on. The replacement cost is equal to the amount that would have to be spent in order to replace the structure. Normally, owners are not required to insure the value of their land, but it is still sensible to have an appraisal of the home finished to determine the replacement cost of the home.
How is the replacement value of my belongings calculated?
- Majority of insurance policies that offer coverage for personal property will estimate a value of all the items based on a formula. Usually, the value is established as a percentage of the replacement value, or cash value, a home is insured for. Although it may seem that the amount allowed would be sufficient to cover the damaged or stolen objects, replacing each and every object at current prices is likely to become very expensive. You are advised to consider taking photos, making an inventory and evaluating all your belongings to arrive at a total replacement cost. If your policy doesn’t rise to your expectations, think about raising the standard coverage to ensure that you have proper coverage. If necessary, buy a separate policy for specific objects, for example jewelry, electronics or a valuable collection that may not be fully covered under a standard policy. It is also worthwhile to add an inflation clause or endorsement, so your policy continues to keep up with rising prices.
Topics: Homeowner insurance, Insurance Advice, Personal Finance, Replacement Cost Calculation, Uncategorized | Comments Off