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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

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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

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

Metro Phoenix Real Estate – Is the glass half full or half empty? March 31, 2009

Posted by mkuhbock in Arizona Vacation Property.
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Like most people I always hear about those that buy low and sell high but have rarely experience that phenomena myself. The Metro Phoenix real estate market holds a lot of promise for the average investor / homeowner to change their luck.

Metro Phoenix real estate has and is going through a tumultuous time, depending upon the survey, study or report, the Phoenix real estate market is horrible and continuing down the path to utter despair with no end in sight. See a recent Forbes report on the 10 Best and Worst US Housing Markets, we made it to number 2! Most would see the glass as half empty if not total dry, like being out in the Phoenix summer 115 degree heat. But it is a dry heat and as it happens every year in Phoenix the temperatures will moderate and with open arms welcome the shivering masses that are escaping the bitter cold from elsewhere in North America.  Thus I see this as the glass being half full.

Tell me where can you now purchase a principle residence, investment property or vacation home at these prices (2003 levels or lower) and live in an area where everyone wants to either visit to escape the cold and golf, retire to, move to because of the climate and lifestyle or beat the losing investment habit and buy low by getting in at the bottom and sell high in the future while enjoying a respite from the cold.

Thus is the Metro Phoenix real estate glass not securely half full? Add the global aging demographic and reports like the following Forbes report highlighting the top 10 cities where Americans are relocating, Phoenix is #4.

Last month in Phoenix I golfed with 5 different couples that were in Phoenix to get out of the cold and begin the journey of looking to relocate/retire in a more comfortable part of the world.

Thus saddle up to the Phoenix real estate bar and order a big, cool half full glass of opportunity! 🙂

Cheers,

Michael

How to afford Arizona vacation real estate in 2009 – Joint Ownership March 17, 2009

Posted by mkuhbock in Arizona Vacation Property.
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Hi All,
How can someone make a real estate investment in todays challenging economic climate a reality? Well read on to find out! 🙂

We all read the headlines and hear the dialogue about how the economic sky is falling, the bank and mortgage crises, global equity market realignment, the drop in the price of oil and gas and of course the plummeting value of real estate. With all of the bad news maybe we just need to focus on the glass being half full.

Lets focus on Arizona vacation real estate opportunities, although everything mentioned above is also a fantastic opportunity, and why now is one of the best times in history to get into the real estate market.

Metro Phoenix is one of the top ten residential real estate markets that got hit hard by the sub prime debacle and the effects of an over inflated real estate rush over the last 5 years. Today the opportunity to pick up well built, located, and priced properties in Metro Phoenix is abundant. Depending upon areas you can purchase an investment or vacation home for 50 to 60% of what it was valued in the peak of the market.

Great deals but how to afford the opportunity and investment in today’s market when your net worth has taken a big hit?

Unfortunately not everyone has the financial ability to put down $200,000 in cash or take out a large mortgage to leverage the buying opportunities that abound in Arizona, and specifically metro Phoenix.

As I mentioned in a previous post, Joint Ownership is a wonderful vehicle to leverage today’s market and real estate opportunities.

If you get 3 to 5 families together (2 would even work) and work through the proper processes and requirements (identifying needs, wants, desires and must haves) the capital costs of a vacation home along with the monthly operating expenses can be split evenly between the joint owners.

As an example, 5 families split a $400,000 metro Phoenix home (buys you something nice with 5 bed 3 bath, stainless, granite, 3 car garage and pool) then add $50k for any upgrades that might be needed and furniture. Thus you have ownership in a fully furnished vacation home, a 3 hour flight away, for $90,000 all in with a monthly operating cost of around $200.

At the end of the day you can probably never use it more than your proportionate share of 2.4 months a year (spread throughout the year). Now you have an asset that will substantially appreciate over time and somewhere to call home when it is minus 40 in Canada.

Take a look at what less than $400,000 could buy you in the Metro Phoenix market today.

4154 E Laurel Avenue, Gilbert, AZ

The structure of a Joint Ownership investment is easy and I am happy to assist with that if there is a need.

Cheers,

Michael

Phoenix Arizona Vacation Home Acquisition Project Steps to Success July 2, 2008

Posted by mkuhbock in Arizona Vacation Property.
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Easy steps to owning an executive luxury vacation home in the Phoenix Metro Area.

  1. Sit down and review your vacation home needs and wants with your partner or spouse.
  2. Determine how much time you want to spend down south? This will assist the determination of how many partner/owners you might want to add. One to six families/owners are manageable.
  3. Build a list of potential vacation home ownership partners.
  4. Review your vacation home needs and wants with your possible partners.
  5. Assess the level of comfort, trust and financial viability of the pool of owners you have invited to participate.
  6. Determine what level of investment each partner would like to make. Make it simple as to split the ownership evenly.
  7. Determine what price range of home the group would be interested in. Metro Phoenix has nice properties ranging from $100,000 and up for condos and $200,000 and up for detached homes.
  8. 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.
  9. Decide what locations, features and amenities you are looking for? Make a list that has both needs or must haves and another list of wants or nice to haves.
  10. Here is an example of some of the features and amenities you will have to consider:

*       Detached or attached home, patio home, condo, or apartment

*       2, 3, 4 or 5 bedrooms

*       2, 2.5, 3, 3.5 or 4 bathrooms

*       Tile, hardwood or carpet

*       Traditional or executive kitchen (stainless, granite and island)

*       Condition and age of appliances

*       Small or large yard, grass or wash (desert), covered or open patio

*       Automatic watering system

*       Pool, Spa/Hot Tub on property or in community

*       Water features on property

*       Carport or 1, 2, 3 car garage

*       Fireplace(s)

*       Vaulted ceilings

*       Security system

*       Golf course, city or mountain community

*       Gated community or open neighborhood,

*       Scottsdale or adjacent municipalities (Phoenix proper, Paradise Valley, North Scottsdale, Peoria, Mesa, Tempe, Fountain Hills, Chandler, Queen Creek….)

*       Tennis, Exercise area, Recreation Facilities, Clubhouse

*       Outsourced gardening service (or no garden, i.e. desert landscape only)

*       Outsourced maintenance/repairs, regular inspection

  1. Once you have collectively decided that you would like to take the next step in joint ownership of a vacation home in The Valley of the Sun, or anywhere else for that matter, the next steps apply.
  2. Have everyone do some web searches for properties to familiarize themselves on locations, what is available at what price ranges in what areas, amenities, etc.
  3. Set up a group website so that the potential owners can collaborate easily. This will relieve you from a lot of email pain and redundancy through the exploration process.
  4. Once geographic areas of interest and a general idea of price range, features and amenities are agreed to (in theory in any case) then engage a local real estate professional. This is a very important step! Discount realty services can be very expensive in the end, typically you get what you pay for. A professional realtor will assist you in the search, negotiations, escrow (closing and it is much different process than in Canada), conditional period, closing and inspection.
  5. Once you have a feel for the property and locations you are interested in then…..
  6. Book some time off for a vacation to look at properties.
  7. Make the offer and own your new executive vacation home!
  8. Other issues to be prepared for:
    1. The need for and building the Joint Ownership Agreements
    2. The need for a Owner Occupancy Schedule
    3. Arranging for transfer of funds into a US account for closing of Escrow

                                                               i.      Getting the best exchange rate

                                                             ii.      Making the transfer as painless as possible, what types of wires are accepted and what might be held for clearing.

  1.  
    1. How are the Joint Owners going to take title?
    2. Furnishing the new home, prices for everything can be affordable but you need to be prepared and well armed before you venture out on your buying spree. What is your budget and how do you make sure to pay only .50 cents on the retail dollar for everything. Typically to outfit a new home it takes a 5 page spreadsheet of hundreds of purchase items and a budget of $20,000 to $100,000+.
    3. The need for and building the Joint Ownership Usage Rules

                                                               i.      Pets?

                                                             ii.      Guests?

                                                            iii.      Damages?

                                                           iv.      Assigning a property manager, accountant, schedule coordinator (all internal owner positions) 

  1. Maintenance schedules
  2. Upgrades and repairs to the home after closing (paint, flooring, appliances, yard….)
  3. Establishing accounts and payment vehicles for monthly expenses (HOA, utilities, cable, phone, internet, taxes….)
  4. Determine cleaning policy’s (see Usage and Ownership Agreement or hiring a third party service)
  5. Hire a cleaner
  6. Put together a maintenance contractor list including; plumbers, construction contractors, rubbish removal, yard maintenance, pool maintenance, air conditioner servicing, electricians, etc.

Points to Ponder

Remote east and west valley areas can be too distant for some people and up to a 2 hour drive from central high profile amenities and the Sky Harbor Airport during rush hour.

The further out you look from Scottsdale proper the more bang for the buck you can purchase.

There are over 55,000 properties listed and up to a total of 95,000 if you include unlisted properties also that are available in the Metro Phoenix area so there are lots of options.

The market continues to soften in outlying areas due to more sub-prime foreclosures and builders that were over extended. The closer in you get to the Scottsdale the less the price is dropping but there are still deals to be had.

For detailed information on how to put together a Joint Ownership opportunity contact me at azjointownership@gmail.com

Cheers,

Michael

Do’s and Don’ts of Joint Ownership June 23, 2008

Posted by mkuhbock in Arizona Vacation Property.
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Firstly what is Joint Ownership?

 

Vacation home joint ownership is a partnership in the ownership of (equity in) a house.

 

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 dwelling.

 

As with other shared-equity plans, the idea behind vacation home joint ownership is that it is a way for people to own vacation properties who otherwise would be unable to purchase a house without a large mortgage.

 

There are some basic common sense do’s and don’ts for joint ownership situations but also a few things you can only learn from experience.

 

Here are a few of the things you should consider prior to getting into a joint ownership situation such as;

 

1.   Can you play well with others, you will need some flexibility, patience and understanding, remember not everyone thinks and acts as you do, you will want to make sure that the partners either stay friends, family (although it is hard to remove family from ones life) or that they stay business partners,

 

2.   Can you live with structured occupancy of the vacation home as you will be sharing it with others,

 

3.   Can you operate on a budget, remember others will be sharing in the bills thus unbridled spending is probably not something that should be done by one or more partners,

 

4.   Can you be respectful of the other owners tastes and idiosyncrasies, see point 1,

 

5.   Can you afford the investment, remember that it is not only the up front acquisition price and costs but then the home has to be furnished and supplied, then there are monthly operating costs which are every increasing with the cost of energy,

 

6.   Unlike Canada, there are many transaction and closing costs associated with US real estate purchase,

 

7.   Tax, ownership and income issues need to be reviewed, we have found a new book that covers everything off, http://transitionfinancial.com/productcart/pc/viewPrd.asp?idcategory=&idproduct=1 ,

 

8.   Mortgages are available to Canadians but the costs rise accordingly, especially closing costs,

 

9.   Very tight user agreements need to be in place covering off guests, cleaning, repairs and a whole raft of other considerations,

 

10.  Very tight ownership agreements need to be in place covering off issues such as defaults (financial & usage), death, rights of passage, selling etc……

 

11.  Usage schedules need to be built which cover off the first 5 years of ownership so that there are no surprises or conflicts,

 

12.  Type and location of the proposed property, this is a detailed list which I will follow up on in another post,

 

Although some of the above can seem oppressive if you address everything up front and go into joint ownership with all the paperwork and agreements done up then everything seems to just fall into place.

 

In summary, do get all of the purchase, operating, usage and ownership agreements in place up front and don’t assume anything at all otherwise it will bite you in the ass sooner or later.

 

Until the next post,

 

cheers,

 

Michael

 

 

 

 

 

 

How to afford Arizona vacation real estate June 16, 2008

Posted by mkuhbock in Arizona Vacation Property.
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Well it seems like most of Alberta has jumped on the vacation home band wagon and bought something down in Arizona.  Just about everyone you talk to has bought, is looking to buy or would love to find something down south to get away from the inevitable cold weather we will be suffering in the Canadian prairies in approximately 5 to 6 months (yes the summer in Canada is way too short).

Unfortunately not everyone has the financial ability to put down $200,000 in cash or take out a large mortgage to leverage the buying opportunities that abound in Arizona, and specifically metro Phoenix.

But wait, there is a way the average Canadian can buy a vacation home in the warmer climates and not go broke doing so. Though joint ownership it is possible to purchase a great place down south for no more than the price of a new car.

If you get 3 to 5 families together (2 would even work) and work through the proper processes and requirements (identifying needs, wants, desires and must haves) the capital costs of a vacation home along with the monthly operating expenses can be split evenly between the joint owners.

As an example, 5 families split a $250,000 metro Phoenix home (buys you something nice in the 3 bed 2.5 bath in a gated community) then add $50k for any work that might be needed and furniture. Thus you have ownership in a fully furnished vacation home, a 3 hour flight away, for $60,000 all in with a monthly operating cost of around $200.

At the end of the day you can probably never use it more than your proportionate share of 2.4 months a year (spread throughout the year). Now you have an asset that will appreciate over time and somewhere to call home when it is minus 40 in Canada.

New Blog post I will cover off some of the things you need to consider when you go the joint ownership route.

Cheers,

Michael