“You miss 100 percent of the shots you never take, and if you think it’s expensive to hire a professional to do the job, wait until you hire an amateur “
I AM YOUR LAND / INDUSTRIAL AND INVESTMENT SPECIALIST / LOOKING FOR OWNERS CLICK HERE TO VIEW ALL MY $ 60 MIL OF LISTINGS Call me if you want to sell your property and need an estimated value. Direct : 602-759-1209, Prefer cell: 520-975-5207 or email me walterunger@ccim.net.
REAL ESTATE | 21 Feb | KURTIS WILCOX
Millennials and real estate investing. It’s not a combination you see often these days. The slowing economy has put a serious dent in the millennial’s ability to get started in the property market. Even those that have the capital and a decent income are scared to dip their toes in a potentially volatile market.
But making real estate investing work is not impossible. In the following guide, we give you what you need to know before hitting the property market.
Be Financially Aware
The first step in the road of real estate investing is assessing your personal financial situation. Before you start looking for properties and dreaming about the potential of your new venture, consider the following:
Savings. Even with a nice salary and a solid credit score, you won’t get a loan without a deposit. Consider your savings account; is it ready to jump into real estate?
Prequalify for a loan. Before you even think about making an offer, ensure you can get a loan in the first place. Today’s marketplace has numerous lenders and brokers offering all kinds of useful tools with which you can assess the amount you can borrow. Fintech companies are appearing all over the world, and all you need to do is have a working internet connection to get the full benefit of the various calculators available to consumers to aid their home loan application process.
Think of the extras. Buying a house is more than just the list price. There are a bunch of other costs attached. Talk to a real estate agent to get an idea of what you’ll have to pay. As you’re a potential customer, they’ll be happy to talk you through the nitty-gritty.
Know the 1% Rule
This is as close to a ‘golden rule’ as you’re going to get when it comes to real estate investments. It’s incredibly simple, yet most people make the mistake of ignoring it completely.
Here’s the gist of the 1% rule: if you can rent the property for a minimum of 1% of the total acquisition cost, then it’s worth considering the property as an investment. If not, discard it. It doesn’t matter that it’s a gorgeous house, in a nice neighborhood, and that it’s a ‘bargain’ for the price.
The key word you need to keep in mind here is acquisition. The difference between this and the sale price of the house is important. The acquisition price also includes any other costs that get the house ready to rent out, whether it’s remodeling or otherwise.
Let’s look at an example. Say you buy a house for $90,000. You spend an extra $10,000 making a few improvements. The total acquisition cost is $100,000. If you’re a follower of the 1% rule (and you seriously should be!), then your rental price needs to be at least $1,000 per month.
Are You Really Making Money?
We see people making this mistake all the time. Investors think that just because their rental property is bringing in money, they’re making a profit. The reality is that you may just be breaking even. Worst case scenario, you’re actually losing money.
Let’s introduce you to another mantra to live by: for the average family home, half of the rental will cover expenses. These include insurance, repairs, management, taxes (you’ll need to calculate this based on your state), etc. What it doesn’t include? The mortgage.
With the remaining 50% of your rental income, you pay off the mortgage on the property. Whatever is left is your actual profit. If the maths don’t quite work, think of doing the following:
Save until you have a large enough deposit to lower the mortgage payments.
Look for a cheaper property investment (and follow the 1% rule).
Don’t use third parties. Manage everything yourself to lower costs.
The Risk is Real
Most people that get into real estate investing think about the profits they’re going to make. The cushy retirement, the ‘sure thing’, the vehicle that will pay for holidays and martinis, you get the drift. But that doesn’t paint the real picture. In 2018, for example, 4.3% of homes were in delinquency.
Listen, real estate investment is a serious risk. If it was easy money, everyone would be doing it. Markets these days are volatile and can change super quick. You can do all the research in the world and still end up with a dud.
Come to terms with the risks involved. Don’t go in blind, and don’t spend more money than you can reasonably afford. If you go in with a steady hand and a little bit of patience, real estate investment is usually a solid financial option. But it’s not a guarantee.
Finally, we’ll end with a wee disclaimer. We’re not your personal financial advisers. This is just advice, nothing more. The ball is in your court otherwise. Do your due diligence, consider the risks, and start investing in what could potentially be a very profitable venture.
SEE IT ALL: https://azbigmedia.com/real-estate-investing-for-millennials-what-to-know/
CLICK HERE: June 2019 MLS Monthly Statistics Report with Graphs for Phoenix Metro.
FROM ME:
Phoenix Commercial Real Estate and Investment Real Estate: Investors and Owner / Users need to really know the market today before making a move in owner user Commercial Properties, Investment Properties and land in Phoenix / Maricopa County, Pinal County / Arizona, Properties and Investment Properties. I am marketing my listings on Costar, Loop-net CCIM, Kasten Long Commercial Group. I also sold hundreds millions of dollars’ worth of Investment Properties / Owner User Properties in Retail, Office Industrial, Multi-family and Land in Arizona and therefore I am working with brokers, Investors and Developers. I am also a CCIM and through this origination ( www.ccim.com ) I have access to marketing not only in the United States, but also international as the market has a lot of moving parts today. What is going on socio-economically, what is going on demographically, what is going on with location, with competing businesses, with public policy in general — all of these things affect the quality of selling or purchasing your Commercial Properties, Commercial Investment Properties and Commercial and large tracts of Residential Land Therefore, you need a broker, a CCIM (Certified Commercial Investment Member) who is a recognized expert in the commercial and investment real estate industry and who understands Commercial en.wikipedia.org/wiki/CCIM I AM YOUR LAND / INDUSTRIAL AND INVESTMENT SPECIALIST / LOOKING FOR OWNERS CLICK HERE TO VIEW ALL MY $ 60 MIL OF LISTINGS PLEASE CALL ME – Direct : 602-759-1209 , cell: 520-975-5207 or email me walterunger@ccim.net
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WEEKLY APARTMENT SALES
WEEKLY APARTMENT CLOSING UPDATE THROUGH July 12, 2019, Phoenix Arizona Metro.
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I AM YOUR LAND / INDUSTRIAL AND INVESTMENT SPECIALIST / LOOKING FOR OWNERS CLICK HERE TO VIEW ALL MY $ 60 MIL OF LISTINGS
Walter Unger CCIM
Senior Associate Broker
Kasten Long Commercial Group
5110 N 40th Street, Suite 110
Phoenix , AZ 85018
CELL: 520-975-5207
Direct: 602-759-1209
Office: 602-445-4112
Fax: 602-865-7461
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“You miss 100 percent of the shots you never take, and if you think it’s expensive to hire a professional to do the job, wait until you hire an amateur “ ARE YOU READY TO SELL OR PURCHASE YOUR INDUSTRIAL / OFFICE OR RETAIL BUILDING OR YOUR LAND in Phoenix, Maricopa County and Pinal County, Arizona, please call me. Office: 602-445-4113, Direct : 602-759-1209 , cell: 520-975-5207 or email me walterunger@ccim.net. … CLICK HERE TO VIEW ALL MY LISTINGS.
Let me know if you are interested in Apartments: CLICK HERE FOR APARTMENTS FOR SALE
CLICK HERE: Arizona Opportunity Zones As We Understand /maps. Interested!!! Please contact me.
History of Arizona from 900 BC – 2017 -Timeline.
8 Reasons You Should Invest in Land
History of Arizona from 900 BC – 2017 -Timeline.
WHY PHOENIX? AMAZING!!! POPULATION IN 1950 – 350 K PEOPLE; “NOW 5 MIL”. – “5TH. BIGGEST CITY IN USA”
DOT – LOOP 202 / SOUTH MOUNTAIN FREEWAY / PHOENIX AZ – UNDER CONSTRUCTION
ARIZONA FACTS – YEAR 1848 TO 2013
- DEMOGRAPHIC FACTS ABOUT MARICOPA COUNTY:
- The average age of the population is 34 years old.
- The health cost index score in this area is 102.1. (100 = national average)
- Here are some of the distributions of commute times for the area: <15 min (22.7%), 15-29 min (36.8%), 30-44 min (25.1%), 45-59 min (8.6%), >60 min (6.8%).
PHOENIX PROJECTED AS NUMBER ONE US HOUSING MARKET FOR 2017
LIST OF ECONOMIC DEVELOPMENT PROJECTS IN PINAL COUNTY, REVISED 2-14-17
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2016 Official Arizona Visitors Guide
Timeline of Phoenix, Arizona history
Facts of Arizona – year 1848 to 2013
Feel free to contact Walter regarding any of these stories, the current market, distressed commercial real estate opportunities and needs, your property or your Investment Needs for Comercial Properties in Phoenix, Tucson, Arizona.
Walter Unger CCIM
Senior Associate Broker
Kasten Long Commercial Group
5110 N 40th Street, Suite 110
Phoenix , AZ 85018
Direct: 602-759-1209
CELL: 520-975-5207
Office: 602-445-4112
Fax: 602-865-7461
CLICK HERE TO VIEW ALL MY LISTINGS
“You miss 100 percent of the shots you never take, and if you think it’s expensive to hire a professional to do the job, wait until you hire an amateur “
Also Call me if you need an estimated value of your Property.
Call me if you want to see a map with what is in the Construction Pipeline for Apartments.
Direct : 602-759-1209, Prefer cell: 520-975-5207, or email me walterunger@ccim.net. CLICK HERE TO VIEW ALL MY LISTINGS.
Check out my professional profile and connect with me on LinkedIn.
Kasten Long Commercial Group tracks all advertised apartment communities, including those advertised by other brokerages. The interactive map shows the location of each community (10+ units) and each location is color coded by the size (number of total units).
Walter Unger CCIM, CCSS, CCLS
I am a successful Commercial / Investment Real Estate Broker in Arizona now for 20 years. If you have any questions about Commercial / Investment Properties in Phoenix or Commercial / Investment Properties in Arizona, I will gladly sit down with you and share my expertise and my professional opinion with you. I am also in this to make money therefore it will be a win-win situation for all of us.
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