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Great vacation home opportunity in the Valley of the Sun!! September 22, 2010

Posted by mkuhbock in Arizona Vacation Property, AZ Real Estate News.
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Great Vacation Property Joint Ownership opportunity in Ahwatukee AZ.

FREE Joint Ownership Document Package with a property sale through us, a $999 Value.

Asking $165,000

Built: 1983/ 3 Bedrooms/ 2 Bathrooms/ 1,818 SQFT Updated Kitchen, NEW Whirlpool Stainless steel appliances, NEW Carpet, NEW tile, NEW landscaping, NEW paint, NEW fixtures and no popcorn ceilings. 2 car garage, large backyard, view fence, awesome location!

Don’t miss this little gem. Low HOA fees. Award winning Kyrene school district. Close to dining, shopping, freeway access. Just a short hop to central Phoenix.

With furniture this vacation home is Turn Key ready to occupy during a the cold Canadian and US winters and would be an investment of approximately $200,000 OR with 4 joint owners only $50,000 a piece to break free from winter! 🙂

Contact us to learn more about this opportunity in the Valley of the Sun!

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How the Real Estate Community Benefits from Vacation Home Joint Ownership May 8, 2010

Posted by mkuhbock in AZ Real Estate News, Uncategorized.
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Hello Real Estate Community,
Some of my colleagues in the real estate industry have asked me what value does the Joint Ownership model have for them? Luckily there is an easy answer for that question.

With Joint Ownership, purchasers do what many partners have already been doing for years, they share in the purchase and title of a property. What we do is provide the consulting, templates for usage and ownership agreements protecting the owners from possible pitfalls that could occur.

With a well developed Joint Ownership model a group of buyers can now purchase the property they want, in the area they desire, with a fraction the capital investment, of the monthly expenses and the carrying costs.

Real Estate Joint Ownership makes the purchase of vacation property possible for your clients!

Joint Ownership is an acquisition model that allows the average family or investor the opportunity to participate in purchasing a vacation or investment property.

What is in it for the real estate community?

1. Use Joint Ownership to increase your vacation home referrals
2. Use a Joint Ownership model to increase your Prospects
3. Use a Joint Ownership model to increase your Sales
4. Provide your clients with a tool and service to fulfill their retirement dream
5. Tap into the 90% of the market that cannot afford a vacation home on their own but
have the desire to own one
6. Convert your fence sitting prospects into active clients
7. Provide your clients with the tools and services to fulfill their investment goals, now is
the time to invest in real estate!

AZ Joint Ownership has created the templates, processes and agreements geared for today’s real estate market and most importantly the proper joint ownership agreements up front allow friends and family to stay that way!

Together we can increase your prospect base, sales and referral income.

Check out the introductory video at www.azjointownership.com

and become a friend and fan on Facebook at http://www.facebook.com/azjointownership.

Cheers,

Michael

Video introduction to vacation home joint ownership May 4, 2010

Posted by mkuhbock in Arizona Vacation Property, AZ Real Estate News, Uncategorized.
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Here is a quick introduction video and a PowerPoint on what vacation home joint ownership is and some of the perils and pitfalls you need to be aware of.

Enjoy but unfortunately I have a face for radio….. 🙂

Who can benefit from Real Estate Joint Ownership? March 19, 2010

Posted by mkuhbock in Arizona Vacation Property, AZ Real Estate News.
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Hello real estate investors and professionals

First and foremost the Joint Ownership model allows the average family or investor the opportunity to participate in purchasing a vacation or investment property.   www.azjointownership.com

Families can now benefit from the depressed real estate prices in the US and sunbelt locations such as Arizona, Florida, Nevada, California and other user friendly warm weather states.

Predictions 2010: Real Estate

Other obvious people or groups that can benefit from working with a Joint Owner model are parties attached to the vacation home property market, this would include; real estate agents, teams and brokerages, individuals, lenders, developers, and investors to name a few.

As an example, the net worth of a median Canadian household in 2005 was $148,400 with only 3% or 415,000 of Canada’s 13 million households could be classified as high net worth in 2005.

Therefore 12,500,000 potential vacation home purchasers or the 95% of the possible vacation home buyer market cannot purchase a vacation or second property by themselves! That is just the Canadian vacation home buyer market!

AZ Joint Ownership, LLC, works with all the above interested parties enabling purchasers to leverage their capital and also creating the opportunity for the real estate service industry to increase their sales by providing Joint Ownership packages, mentoring and consulting for their clients.

We have developed an in-depth Joint Ownership investment and acquisition model that allows prospective buyers to finally move forward on their desire to buy an investment or vacation home while the current real estate market opportunity exists.

What is vacation home & real estate joint ownership?

Joint ownership is a partnership in the ownership of (Title To & Equity In) a house. 
This is NOT time share or fractional ownership……

Typically the ownership is split between multiple vacation home investors, with the each investor/partner having equal shares or some combination of interest in the real estate investment.

As with other shared-equity plans, the idea behind vacation home joint ownership is that it is a way for people to own vacation or investment real estate properties who otherwise would be unable to purchase a property without taking on a large mortgage or incurring substantial debt.

Why Joint Ownership?

Although most people understand the responsibility that is included with larger purchases of a secondary residence or vacation home, there are some people who find they would not use the asset on a full time basis. For those people who are looking to find value in simplifying certain aspects of their lives, Joint Ownership will provide ownership & use of an asset while reducing the responsibility of management and cost of ownership. Benefits of Joint Ownership include ease of convenience, hassle free ownership, and cost savings.

The key to any Joint Ownership arrangement is to have everything in writing, even if you intend to partner with family or ‘best’ friends, the proper agreements puts everything up front in writing so there are no issues or misunderstandings later on after the honey moon period of purchasing a vacation home.

Things like cleaning after use, repairs for broken items, usage, third party usage, smoking rules, pet rules and consequences, usage calendars, book keeping, etc. all have to be documented and signed off by the partners. These docs can even be registered on title if need be.

We have spent 3 years creating and refining the model, agreements and templates and this is what we offer in our Turn Key package.

If anyone would like more information on creating a Joint Ownership group to purchase a vacation property or would like to partner with us to increase your real estate sales please contact us.

Happy house hunting!

Michael Kuhbock
Email: mkuhbock@azjointownership.com

There is only so much beach front property available… March 9, 2010

Posted by mkuhbock in Arizona Vacation Property, AZ Real Estate News.
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It has been while since I have ranted but I am having the same inane conversation with too many people lately and it has now allowed me to now see backwards due to all of the eye rolling I have done.

Yes the US resort property market (California, Nevada, Arizona, Florida & Hawaii) is still depressed.

Yes there are still great deals available and yes there will be a bounce along the bottom for another period of time (12 to 36 months) but the house that your friend/associate/partner/or friend of a friend bought out in the deep suburbs (middle of Podunk nowhere) 12 months ago from some smooth talking know it all Realtor has NOT increased in value due to brilliant property purchasing prowess…. The deal was probably OK as it is hard not to buy at the bottom 25% of the market over the last 24 months, but when a property does not come up on your GPS or on Google maps then you know it will not rebound in value quickly and will dramatically under perform centrally located real estate.

As I published in a previous Blog, there are 3 main variables that effect the value of property; 1. Location, 2. Features and 3. Local Amenities. A $200,000 home in the deep suburbs will cost you over 1 million+ in the center of a high profile area. Those numbers can now be adjusted to $75,000 and $450,000+. If it takes you 15 minutes to find a store that is still in business to buy a paper or carton of milk then guess what, you have purchased in the middle of nowhere…..

Real estate has been and always be about location, location, location and beware of anyone that tells you differently as they will be trying to sell you a time share in a central Florida swamp or prime piece of desert property 2 hours from Sky Harbor airport.

The market still has some amazing deals but make sure you conduct in-depth due diligence, hire or utilize educated and well seasoned professionals and educate yourself as much as possible, as any purchase, be it a primary residence or a vacation property will be a decision that requires a substantial investment of time and capital.

One final word of caution, the trustee sales are becoming crowded auctions and prices in some areas of the nation are being pushed up to just below retail by overzealous buyers and agents. Paying overinflated prices for properties which are, due to the nature of trustee auctions, completely Caveat Emptor is a fools folly. Make sure you either become a local real estate expert or use a service which is the best in the local market, otherwise you could… no make that WILL be over paying for property which could be a black hole where you will be shoveling all of your money into…

Best of luck in your real estate endeavors,

Michael

Arizona Vacation Home Strategies February 24, 2010

Posted by mkuhbock in Arizona Vacation Property, AZ Real Estate News.
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Arizona Vacation Home Strategies

Learn how to purchase an executive winter home fully furnished for the price of a car!

Vacation home strategies ~ An easy way to invest in undervalued real estate and enjoy it during the cold winters.

Ask us how at

Michael@Kuhbock.com or azjointownership@gmail.com

Why Phoenix?????

  • Nearly perfect year-round weather
  • The greater Phoenix area also offers visitors an array of impressive cultural attractions.
  • 200 + golf courses
  • Recreation, Major league sports – baseball, football, hockey!!!!!
  • Strong Canadian dollar!!
  • US Home Prices Continue to Tumble…
  • Sub-Prime mortgage buying opportunities!!

What is Joint Ownership all about?

Purchasing a vacation home in Arizona ~ Steps To Success

A little about Phoenix ~ Metro Phoenix Overview

A little about Phoenix Real Estate and Joint Ownership Considerations

A little about Golf In Phoenix

National numbers released and December wasn’t pretty January 25, 2010

Posted by mkuhbock in Arizona Vacation Property, AZ Real Estate News.
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The December numbers were released for home sales and the numbers were a little unsettling. A 17% drop in sales from the previous month, this is the largest monthly decline in the last 40 years.

In the Metro Phoenix area I am seeing properties listed at 1/3 off their peak sale prices in 05/06. The questions are how low can prices go and when will we hit the bottom?

December home sales down nearly 17 percent
Home sales plunge nearly 17 percent in December after tax credit deadline extended

By Alan Zibel, AP Real Estate Writer , On Monday January 25, 2010, 12:32 pm
WASHINGTON (AP) — Sales of previously occupied homes took the largest monthly drop in more than 40 years last month, sinking more dramatically than expected after lawmakers gave buyers additional time to use a tax credit.
The report reflects a sharp drop in demand after buyers stopped scrambling to qualify for a tax credit of up to $8,000 for first-time homeowners. It had been due to expire on Nov. 30. But Congress extended the deadline until April 30 and expanded it with a new $6,500 credit for existing homeowners who move.
“It’s ‘exit stage left’ for first-time homebuyers,” wrote Guy LeBas, an analyst with Janney Montgomery Scott.
December’s sales fell 16.7 percent to a seasonally adjusted annual rate of 5.45 million, from an unchanged …….

January numbers will be interesting.

Michael

2010 looks to be an interesting real estate year for Phoenix January 19, 2010

Posted by mkuhbock in Arizona Vacation Property, AZ Real Estate News.
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After 19 days into 2010 I have noticed a couple of disturbing trends coming about. Or exciting trends depending on which side of the real estate fence you are on, the buying real estate 🙂 or selling real estate side :(.

Keep in mind that all of the below is unscientific and we will have to wait for the official numbers from the real estate boards to quantify my observations.

Firstly, I am subscribed to a number of automatic new listing and REO feeds that are sent to bme by email daily, I have noticed that the quantity of homes and the number of emails I am receiving daily is growing dramatically. The listing count seems to be increasing at a higher rate than I have ever seen before and the number of bank owned properties or REO’s listings is also growing. Has the dam burst for the lenders and they are now releasing the growing inventory they had shelved in 2009?

We played golf and bumped into a gentleman who knew of a person who’s job was to post foreclosure notices on homes, he stated that this person had a 160 notices backlogged on his desk, is this a sign of a future increase in inventory?

Prices appear to be dropping. I am following a couple of Metro Phoenix areas for activity and a few homes we have had our eye on, and in the last 30 days we have seen asking prices start to drop as inventory increases. These drops in asking prices have been substantial, especially for some higher profile condo complexes. Asking prices for homes in nice, stable, white collar neighborhoods are 40 to 50% off what they sold for in 2005.

Finally the last point in my unscientific analysis of the Metro Phoenix real estate market is that I have noticed a growing percentage of new listing notifications that are not new homes to the market but homes that have come back on the market after the purchaser has backed out or the short sale was not approved by the lending institution.

Is this just a minor blip in the Phoenix real estate market recovery or is it the next wave of downward value readjustment some of the previous articles I posted made mention of?

Before you decide maybe take a look at the next piece of uncomfortable news in the following link:

JANUARY 19, 2010

Souring Mortgages, Weak Market Force FHA to Walk a Tightrope

By NICK TIMIRAOS

David Stevens bought his first home almost 25 years ago, paying just 3% down with a loan backed by the Federal Housing Administration. “I had no money in the bank,” he says. “If it weren’t for the FHA, I wouldn’t have gotten that home.”

Now, as FHA commissioner, Mr. Stevens has to decide how many others to let through that door. Souring FHA-insured mortgages are threatening the agency’s finances. Congress is pressuring him to tighten the easy-money standards that once helped people like him, and he is expected to announce revisions as early as this week……..

It looks like the glass is either half full or half empty depending on which side of the Phoenix real estate fence you are on, hope you are on the right side. 🙂

Cheers,

Michael

2010 Phoenix Real Estate Crystal Ball December 17, 2009

Posted by mkuhbock in Arizona Vacation Property, AZ Real Estate News.
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We all try to predict, guess, prognosticate … what is going to happen in the future. Whether it is the outcome of a game, Tiger’s future in golf and divorce court, the price of gas next week, when the economy is going to recover and of course one of the most popular water cooler discussions is the future of the housing market.

I came across an interesting article today titled ‘Foreclosure backlog estimated at 1.7 million’.

What caught my eye were the following facts from this article and other past articles;

  • 1.7 million homeowners were on the verge of foreclosure in the fall of 2009
  • This is up 1.1 million from the previous year
  • Distressed sale properties will flood the market in the next 12 months (banks have held a high percentage of properties off the market to try to mitigate the value free fall we have been experiencing over the last 3 years and will finally be forced to move these assets off their books)
    .
  • 6.7 million U.S. households with mortgages, or about 13%, are behind on their payments or are in the foreclosure process
    .
  • About 20% of owners of single-family homes with mortgages owe more than the current estimated value of their homes, according to Zillow.com, in the third quarter of 2009 almost 10.7 million households had negative equity in their homes
    .
  • Option ARM Silent Bomb: $189 Billion in outstanding option ARMs with $134 billion recasting in 2 years, 94% of the borrows made the minimum payment

My personal observations include an increase in short sale listings and aggressively price properties in fringe communities. I define fringe communities as great places to live but they are a bitch to commute from. I have seen listings for 2000+ sq ft, 4 & 2 or 4 & 3 with granite & stainless appliances, freshly painted, pebble tech pool, nice community with an historic sales price of $350,000 now listed in the high 100’s, which is only the asking price. If you go into a market that is above $250,000+ then it is more aggressive with houses that have been on the market longer. Jump to the high six figure or million plus and you can write your own ticket as it seems that half of Paradise Valley has a for sale sign on the property…..

Bottom line my crystal ball says now is not the time to sell but a great time to carefully observe the market and look at jumping in sometime in 2010.

Cheers,

Michael

Phoenix Trustee Auctions – make sure you are ready to play with the big boys December 11, 2009

Posted by mkuhbock in Arizona Vacation Property, AZ Real Estate News.
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I did a post some time ago about auctions with a link to a great article that explained the process titled Buyer Beware,  but there is a new article out that goes into the details of how these auctions work. The only problem with the article is that the average non professional investor will read only one thing, how much one professional made in a quick one week flip.

This article can be found here and is titled House Flipping Makes a Comeback. Great article and make sure to look at the slide show but and it is a big but… these people that work the trustee sales are professionals with years of experience and teams in place. They have the cash or the access to cash to close in the required 24 hour period, they have done their research on the properties they bid and purchase via drive bys and walk arounds and even may have had access to the property to assess the repairs it will need. Another issue in the property/ investment flip game is that everyone is now getting into it and the competition for great deals is much greater than it use to be 2 or 3 years ago.

On a  $75,000 to $150,000 flip you will need at least $20,000 net profit on the purchase to turn around a $10,000 net profit on the sale. That is if you have a good Realtor and the all of the market factors of the home are aligned. Properties can drop in value by 25% overnight, (if comparable sale properties in a couple of block radius drop their prices due to being banked owned or going into foreclosure this will affect your ability to sell at your planned price) I have experienced it first hand thus you need to be well healed and have all the necessary resources at hand.

Properties of great value might produce greater margins but will also have greater costs associated in the transactions and are tougher to resell, more first time buyers than those looking for a $250,000 family home. Then when you get into the luxury market you can steal properties but good luck trying to sell it unless you have it on the market substantially below current market prices like the example in the last article.

On a positive investor note it is anticipated that there will be a new wave of properties entering the Phoenix market in the spring, not good if you purchased a home and will be trying to slog it off in the next couple of months but good if you are waiting to enter the market in the early spring.

In any case if you decide to venture down the path of playing the trustee auctions then best of luck in swimming with the sharks. 🙂

Have a great weekend wherever you are!

Michael