Thursday, March 31, 2011

March madness was here folks!! Cash flow is the name, appreciation is the game.

Payam Raouf
President
Arizona Property Management and Investments
888-777-6664 ext 111

March madness was here folks. It felt like 2004 and 2005 again. Investors were back with a vengeance buying up the entire valley IN CASH! Where did all that money suddenly come from?

Multiple offers were as common as sleeping in a sleeping bag behind a builder’s sales office to get the first releases 7 years ago but this time investors had cash and plenty of that too.

I don’t want to spoil it for my own clients by telling everyone out there what we are buying, as an investor told me last week in a phone conversation, “I read what is going to happen in you blog 9 months ago and it is happening now”. That maybe a little exaggeration, I wish I had such a crystal ball but the truth is we are in the tranches on the front line day in, day out; we have a good idea where the market is headed. Going through all the ups and downs in the past few years and have been involved in over 1000 transactions helps though.

Here we go, I cannot hold it. Let’s spread the wealth! 70% of the buying in Arizona is done by foreign investors!!! They are buying everything at trustee sales, bank owned, short sales and whatever makes some sense! These are very savvy investors. Conservative to some point but are willing to look at opportunities for longer term as well. Cash flow is the name, appreciation is the game.

I see more investors are moving in towards Peoria, Happy Valley, Arrow Head, and west wing Mountain taking all the good stuff betting against each other, taking the market up 5% to 10%!

Surprise, some parts of Glendale, Avondale are already played out. El Mirage, Buckeye, Tolesson, not getting much play at all. Laveen and Goodyear are getting back on the map. Litchfield park is still getting some actions.

Gilbert is on, Chandler on the side line, Mesa and Tempe, ummm. May not be too late to get into Maricopa, there may be still some deals out there, you have got to watch out where you buy out there. Queen Creek, San Tan Valley, Gold Canyon not even a prayer, dead as a door nail, don’t get stucked down there. You will be there a while.

We feel very confident that this frenzy will continue for a good while and as the result prices will continue to go up in some areas. We bought a property 14 months ago for one of our investors in Peoria for 220K and I just looked it up, it sells for 310K in today's market!! We were encouraging investors to buy there 14 months ago!

We also are expecting to see some good deals in Scottsdale area in the future, give it another six to eight months, November, December, before entering that market.

For right now folks, stick with the 3 real estate basics, Location, Location, Location.

It would not be fair to our clients to pin point exactly what pockets we are buying at this time however if you are seriously considering utilizing our expertise, please give me a call directly at 888-777-6664 ext 111. I have several associates out there in the field every day previewing properties for our steady investors. We can put you on our nightly recommended property list as well, if you would like us help you buy investment properties (our nitch) as well.

If you are currently in escrow and would like to take advantage of our “A’ Rating property management services, call Rhonda Urtuzuastegui, my Portfolio Manager at ext 109. We have a full staff to attend to your business including property prep, reconditioning and rehab services.

Just click on yahoo investment blog and saw this,"Russian billionaire buys $100M Silicon Valley home". He should have called us. We could have saved him some money. LOL