When it comes to az investment property, one of the most important factors impacting profitability is selecting the right tenant.
Read the new HomeLovers article on eHow.com here on "How to Screen a Prospective Tenant for your Rental Property".
It has nine tips to help ensure you are putting the right tenant in your home for maximum long-term revenue on your investment property.
Showing posts with label Dave Zundel. Show all posts
Showing posts with label Dave Zundel. Show all posts
Wednesday, November 11, 2009
Wednesday, October 28, 2009
ARE AZ LANDLORDS NEGOTIATING WITH RENTERS?
HomeLovers had an interesting interview with Arizona Republic real estate reporter Catherine Reagor recently on renter trends and issues - real life examples of what's going on in the rental market with tenants right now.
One of her questions was the current renter market - are landlords negotiating with renters or bargaining? Are they settling for lesser tenants out of sheer desperation to end a vacancy?
For some investors, this is true.
For investors that purchased a home several years ago or longer – maybe not the ideal HomeLovers property, but still an investment they are stuck with - they are desperately trying to find tenants that will pay enough to cover their mortgage, instead of renting the home for current market value.
These desperate landlords are anxious to find a tenant. To compete with cheaper rentals priced at what the market will bear, they are accepting terms, negotiations and tenants that otherwise wouldn’t be in their best interests.
These investors might be in the tough position of trying to cover their costs, instead of running the investment as a business with temporary price adjustments based on the market.
It is very important to realize that if the investor has a mortgage for $1,400 a month, they may spend months chasing that rent instead of renting it quickly at the actual market value of $1,000.
Many fail to realize they lose less money renting a year at $1,100 (a $3,600 loss) than having a six-month vacancy because they are pursuing the full $1,400 (a $8,400 loss).
To get the full $1,400, those investors end up compromising, offering dangerous incentives or not thoroughly screening prospective tenants just to end the vacancy. (Read the HomeLovers article here on "How to select the right tenant.")
Renters that find they are paying too much are the same angry renters that tend to strip or damage homes. They feel taken advantage of and take that out on the property.
It is important to realize that if a home is in rent-ready condition and priced right, there is a huge demand of good renters available.
One of her questions was the current renter market - are landlords negotiating with renters or bargaining? Are they settling for lesser tenants out of sheer desperation to end a vacancy?
For some investors, this is true.
For investors that purchased a home several years ago or longer – maybe not the ideal HomeLovers property, but still an investment they are stuck with - they are desperately trying to find tenants that will pay enough to cover their mortgage, instead of renting the home for current market value.
These desperate landlords are anxious to find a tenant. To compete with cheaper rentals priced at what the market will bear, they are accepting terms, negotiations and tenants that otherwise wouldn’t be in their best interests.
These investors might be in the tough position of trying to cover their costs, instead of running the investment as a business with temporary price adjustments based on the market.
It is very important to realize that if the investor has a mortgage for $1,400 a month, they may spend months chasing that rent instead of renting it quickly at the actual market value of $1,000.
Many fail to realize they lose less money renting a year at $1,100 (a $3,600 loss) than having a six-month vacancy because they are pursuing the full $1,400 (a $8,400 loss).
To get the full $1,400, those investors end up compromising, offering dangerous incentives or not thoroughly screening prospective tenants just to end the vacancy. (Read the HomeLovers article here on "How to select the right tenant.")
Renters that find they are paying too much are the same angry renters that tend to strip or damage homes. They feel taken advantage of and take that out on the property.
It is important to realize that if a home is in rent-ready condition and priced right, there is a huge demand of good renters available.
Thursday, August 6, 2009
USA Today - Home sellers frustrated as short sale deals collapse
USA Today recently ran an interesting article on how home sellers are increasingly frustrated as short sale deals collapse - often months into the deal when potential buyers walk away due to lengthy delays. Read the article here.
The author wisely points out that the banks are only part of the problem. Buyers/sellers can’t do much about the banks, but they have total control over the agents they choose.
Now, more than ever, it is critical to choose your experts wisely. Way too often, we see first-time buyers and real estate investors alike being assisted by agents who don’t have enough experience to make the process smooth.
For buyers looking to get a deal on their next personal residence, this will lead to lost deals, frustration and wasted time. Many buyers are putting their moves and future plans into the hands of agents who simply lack the knowledge to get the job done.
For real estate investors, this is an even bigger problem. The inexperienced agents are recommending properties that we would never suggest as an investment. There are great deals out there in virtually every price range, and a short sale can be a great way to get into the perfect property at a nice price. We just caution new homeowners and investors alike to start with the best expert they can find… then shop for the best possible properties… and THEN look for the best deals in the properties they know will work.
If you are going to go through the hassle of a short sale, you want to make sure the home you end up owning is a prize worth winning.
Like this article? Subscribe now to receive new blog postings via email or RSS.
The author wisely points out that the banks are only part of the problem. Buyers/sellers can’t do much about the banks, but they have total control over the agents they choose.
Now, more than ever, it is critical to choose your experts wisely. Way too often, we see first-time buyers and real estate investors alike being assisted by agents who don’t have enough experience to make the process smooth.
For buyers looking to get a deal on their next personal residence, this will lead to lost deals, frustration and wasted time. Many buyers are putting their moves and future plans into the hands of agents who simply lack the knowledge to get the job done.
For real estate investors, this is an even bigger problem. The inexperienced agents are recommending properties that we would never suggest as an investment. There are great deals out there in virtually every price range, and a short sale can be a great way to get into the perfect property at a nice price. We just caution new homeowners and investors alike to start with the best expert they can find… then shop for the best possible properties… and THEN look for the best deals in the properties they know will work.
If you are going to go through the hassle of a short sale, you want to make sure the home you end up owning is a prize worth winning.
Like this article? Subscribe now to receive new blog postings via email or RSS.
Tuesday, July 28, 2009
Bio - Dave Zundel
Meet Dave Zundel
Co-founder, Real Estate Investor
To take the model of a drastically improved property management firm from an idea to fruition, Dave Zundel and Mike Sargent partnered in early 2008 to build HomeLovers, an Arizona-based property management company that specializes in residential rental properties including purchasing and managing rental property to building and growing a robust, profitable investment portfolio.
Dave's Experience
Dave Zundel has been building businesses for over 20 years, including hands-on consulting work with the owners of nearly 200 companies.
Recently, his experience allowed him to redefine residential property management and implement new levels of efficiency for a local Phoenix real estate investment and property management company, resulting in aggressive growth from 300 homes under management to nearly 2000 homes - almost a 600% increase. With a focus on numbers, Dave created tools to assist investors with avoiding purchasing mistakes, maximizing ROI and attracting ideal tenants.
In the same time frame, Dave accumulated a personal portfolio worth over $3 million that included 15 single family homes.
At age 40, Dave retired from his position as CEO to focus on his personal real estate investments. After three years in retirement, Dave could no longer resist the lure of reentering the business world. In looking at all the different types of businesses he had worked with over the years, none had more appeal to him than property management. With the luxury of hindsight, Dave was able to reflect on things that had created challenges and unhappy clients.
After nurturing the idea for several months and launching a joint partnership with Mike Sargent, a dramatically improved property management model evolved.
Today, HomeLovers is one of Arizona's fastest growing home rental and property management companies.
Read Dave's articles on the blog
Join Dave on Facebook
Co-founder, Real Estate Investor
To take the model of a drastically improved property management firm from an idea to fruition, Dave Zundel and Mike Sargent partnered in early 2008 to build HomeLovers, an Arizona-based property management company that specializes in residential rental properties including purchasing and managing rental property to building and growing a robust, profitable investment portfolio.
Dave's Experience
Dave Zundel has been building businesses for over 20 years, including hands-on consulting work with the owners of nearly 200 companies.
Recently, his experience allowed him to redefine residential property management and implement new levels of efficiency for a local Phoenix real estate investment and property management company, resulting in aggressive growth from 300 homes under management to nearly 2000 homes - almost a 600% increase. With a focus on numbers, Dave created tools to assist investors with avoiding purchasing mistakes, maximizing ROI and attracting ideal tenants.
In the same time frame, Dave accumulated a personal portfolio worth over $3 million that included 15 single family homes.
At age 40, Dave retired from his position as CEO to focus on his personal real estate investments. After three years in retirement, Dave could no longer resist the lure of reentering the business world. In looking at all the different types of businesses he had worked with over the years, none had more appeal to him than property management. With the luxury of hindsight, Dave was able to reflect on things that had created challenges and unhappy clients.
After nurturing the idea for several months and launching a joint partnership with Mike Sargent, a dramatically improved property management model evolved.
Today, HomeLovers is one of Arizona's fastest growing home rental and property management companies.
Read Dave's articles on the blog
Join Dave on Facebook
Wednesday, July 22, 2009
Phoenix Foreclosure Sweet Spot
According to MSN, Phoenix is still one of the top three leading destinations, regardless of all the marketplace grumbling. Read the article: http://realestate.msn.com/article.aspx?cp-documentid=19873357>1=35000
In spite of all the stress in the economy, people on the move are still coming to Phoenix. This steady growth in population over time is fueling our recovery and contributing to the rapidly shrinking inventory of homes for sale.
While many other cities in the country are still affecting the headlines and promoting a national sense of crisis in real estate, Phoenix is well on its way to a stable market with healthy sustainable growth.
Many of these families flowing into Phoenix are coming from areas of the country where unemployment is high and opportunities tight. The demand for great rental properties is growing fast.
We are working daily with increasingly savvy investors who know the sweet spot in Phoenix is homes for middle-upper middle income families, NOT the cheapest home in the most distressed neighborhood.
Interested in learning more? Read our blog article on "Getting a great deal on an Arizona foreclosure" or yesterday's press release on major pitfalls during today's foreclosure buying frenzy.
Like this article? Subscribe now to receive new blog postings via email or RSS.
In spite of all the stress in the economy, people on the move are still coming to Phoenix. This steady growth in population over time is fueling our recovery and contributing to the rapidly shrinking inventory of homes for sale.
While many other cities in the country are still affecting the headlines and promoting a national sense of crisis in real estate, Phoenix is well on its way to a stable market with healthy sustainable growth.
Many of these families flowing into Phoenix are coming from areas of the country where unemployment is high and opportunities tight. The demand for great rental properties is growing fast.
We are working daily with increasingly savvy investors who know the sweet spot in Phoenix is homes for middle-upper middle income families, NOT the cheapest home in the most distressed neighborhood.
Interested in learning more? Read our blog article on "Getting a great deal on an Arizona foreclosure" or yesterday's press release on major pitfalls during today's foreclosure buying frenzy.
Like this article? Subscribe now to receive new blog postings via email or RSS.
Monday, June 1, 2009
Getting a Great Deal on an Arizona Foreclosure
There is a new feeding frenzy developing in the Arizona housing market. The buzz words are auction, foreclosure, short sale, REO, etc., but the common theme is “deal”.
During the run up of 2004-2006, people were pretty much buying anything with a "for sale" sign and we all know how that story ended. Today I am seeing a similar lack of judgment with people rushing to buy any property that looks cheap.
I was on a great dive trip over Memorial Day weekend. Part of a dive trip is being on a small boat with a group of total strangers. Without fail, somebody on the boat reminds me that while anybody CAN wear a tiny string bikini or a Speedo, most people shouldn’t. Even if they found a store that was handing them out for free.
Don’t get me wrong... I love a deal as much as the next guy, as long as it is a deal on the right property. The wrong rental property, even at an amazing price, will never deliver an incredible result in terms of revenue. Just like that free Speedo, it may not be the best fit.
Even the cheapest foreclosure bargain can be an expensive investment mistake.
Before you run out shopping, do your homework (see a related article on "Choosing the Right Property"). Get clear about the long-term plan for your investments. Know what you expect the investment to do for you over time. Decide what type of tenants you want to attract. Then, make sure you understand what type of property will meet all those requirements.
If you don’t do your homework on the front end, your chances of ending up with the perfect property are remote.
We get calls from hundreds of investors looking for property management every month. The worse a property is, the more difficult it is to manage, so many of the people who call are tired of the hassle and regretting the purchase. Over 80% of the homes people bring to us are homes we would have never purchased or sold as an investment.
Having said that, there are incredible deals in every price range, so there is no reason to settle for the wrong home.
With the right tools, it is easy to crunch the inventory of available properties down to a short list of homes that will make a truly great investment. Once your list of potential purchases is limited to the great investments, you can shop for the best deal without compromising long term ROI. If you know how the planning, building, and managing phases of your investment impact each other and take action accordingly, you will be way ahead of the masses that are getting a great “deal” on bad investments.
You will also avoid being the investor equivalent of the big guy on the boat who really thinks his bright yellow Speedo makes him a sexy supermodel.
During the run up of 2004-2006, people were pretty much buying anything with a "for sale" sign and we all know how that story ended. Today I am seeing a similar lack of judgment with people rushing to buy any property that looks cheap.
I was on a great dive trip over Memorial Day weekend. Part of a dive trip is being on a small boat with a group of total strangers. Without fail, somebody on the boat reminds me that while anybody CAN wear a tiny string bikini or a Speedo, most people shouldn’t. Even if they found a store that was handing them out for free.
Don’t get me wrong... I love a deal as much as the next guy, as long as it is a deal on the right property. The wrong rental property, even at an amazing price, will never deliver an incredible result in terms of revenue. Just like that free Speedo, it may not be the best fit.
Even the cheapest foreclosure bargain can be an expensive investment mistake.
Before you run out shopping, do your homework (see a related article on "Choosing the Right Property"). Get clear about the long-term plan for your investments. Know what you expect the investment to do for you over time. Decide what type of tenants you want to attract. Then, make sure you understand what type of property will meet all those requirements.
If you don’t do your homework on the front end, your chances of ending up with the perfect property are remote.
We get calls from hundreds of investors looking for property management every month. The worse a property is, the more difficult it is to manage, so many of the people who call are tired of the hassle and regretting the purchase. Over 80% of the homes people bring to us are homes we would have never purchased or sold as an investment.
Having said that, there are incredible deals in every price range, so there is no reason to settle for the wrong home.
With the right tools, it is easy to crunch the inventory of available properties down to a short list of homes that will make a truly great investment. Once your list of potential purchases is limited to the great investments, you can shop for the best deal without compromising long term ROI. If you know how the planning, building, and managing phases of your investment impact each other and take action accordingly, you will be way ahead of the masses that are getting a great “deal” on bad investments.
You will also avoid being the investor equivalent of the big guy on the boat who really thinks his bright yellow Speedo makes him a sexy supermodel.
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