The Real Estate Investment Opportunity The scale of this housing bubble burst created a large-scale Real Estate investment opportunity in Arizona. Single-family homes can generate revenue immediately as rental properties. Large-scale buying initiatives are now beginning to appear as market confidence returns and the investment opportunity has become clear. The recession is officially over. American large-cap businesses are profitable and cash-rich. Consumer confidence is beginning to show signs of life. While no one can predict the timing for complete recovery, the timing for market entry is now.
Return On Investment Safety of principal is a prerequisite for investment. Financial Advisor’s recommendations are to buy an asset only when its market value is significantly below its intrinsic value. Adequate return is the purpose of a real estate investment. The ROI from the Arizona opportunity depends on two key factors: (1) consistent cash flow from tenants to cover operating costs, to service debt and to provide a residual return on capital deployed; and (2) recovery of prices in the real estate market.
Generating stable income and good returns is a management issue, fortunately made easier in the short run by high rental demand from people who have lost homes. In the long run, influx of people into Arizona will also stabilize and increase rental demand and income. Capital gain from price recovery is anticipated to be significant. Recovery of the real estate market is a matter of the regenerative capacity of American capitalism. Conventional wisdom expects the USA to recover, as it has from many previous crises. The timing and extent of recovery are uncertain, but all signs point to a certain robust recovery. How to Decide Location is but one critical deciding factor for leasing and resale. But there is more.
Did you know that most people in Metro Phoenix need to drive to their job, with little or no ability to rely on public transport? Do you know the difference between municipalities, between subdivisions, between HOA’s. Some HOA’s are in serious financial trouble. Who is the builder of the home you are investing in? There are important differences between KB Homes, Pulte, DR Horton, Toll Brothers – do you know what they are? A low price often isn’t a deal. I review many foreclosed homes before I recommend them to my investor clients.
Don’t go it alone, it will increase your risk and cost you more money in the end. Rely on my expertise Call me: (480) 332-5925
