Hello ALL,
Just wondering if anyone knows how the real estate investing market is in Tucson, Phoenix area?
I’m a new wholesaler in the business im curious to see if there is anyone out there who is also in the area and need there opinion of the market conditions. Preferable in the Tucson Market.
Thanks in advance,
Betty
The market in Phoenix and Tucson are HOT HOT HOT. SO many pre and post foreclosures.
Hi Betty,
It’s a great question you’re asking. Another question I would pose even before that one is:
What am I trying to accomplish with my investing (a.k.a. what is my exit strategy).
Even if you’re primary strategy is to wholesale properties, the next question will be, who am I wholesaling them to? Am I wholesaling them to people who will be fixing them up to re-sell on the market? Am I wholesaling them to other investors who want to hold them as a rental?
In both of those cases, you need to look at what the market is doing for both of those strategies (to help you know whether you’ll likely be able to find a buyer for your wholesale deal).
How is the retail market in Phoenix and Tucson? Unless something has recently changed, things are quite slow in that area, which probably means there will be fewer investor-buyers for a deal that has an exit strategy of retail flip.
How is the rental market in Phoenix and Tucson? Similarly, unless there have been fluctuations lately, the numbers don’t tend to work well for cash flow in those areas (because the values are out of line with the rents).
It is true (and exciting) that there are lots of foreclosures…it makes me drool!!!
But seriously, the foreclosure opportunity is a buying strategy - as a budding professional investor, you will always have your exit strategy first…your buying strategy last.
I hope that helps. There are many other markets where wholesaling is more do-able because of the prices/rents. Just have to be willing to do some out of state investing (which is actually easier than in-state in my opinion).
Have a great weekend!
Stacy
The retail and rental markets in AZ have indeed improved over the last 6 months. The reason I say it is HOT is because you can buy property at .30 -.50 on the dollar and in any market that is a winner. Stacy your so correct with exit strategy being in place first, I should be more careful of what I say as you never know how new a reader is on here. But for a seasoned investor it is HOT HOT HOT>
Chris
:shocked
Hey Chris,
That’s awesome! Have a fantastic Memorial Day weekend! Gotta love the .30-.50!! It’s a fun time to be an investor!
Take care,
Stacy
Great post! As I am in downtown PHX my self and have lists of NOD’s great homes out there so I too am drooling at what oppurtunities can come of this.
Im working on my first home “sub2” to live in, but with all the other homes available, exit strategies are one more area to I need to hone in on my self!
Reading everyone’s posts gets me motivated to get this going and learn more !!!
Thank you all for posting. I have thought of our exit strategy which is selling to investors who want to flip. Thats exactly where this question stems from because i was thinking if the market is slow for retailer, how and why would my buyer buy properties from me when the market is so slow?
So i’m curious, two of you have stated that the forclosures are great right now. I can agree with that, but what do you do with them? Do you buy and hold? or buy and flip?
Thanks and have a great weekend.
Betty
Hi Betty,
I am in Glendale and right now is a great time to buy as a investor and hold to rent out or rent to own option. Many owners are losing their homes to foreclosure and they are needing a home to live in. With that being said those that are losing their homes are renting. Those investors are putting tenants in and letting them pay the house payment generating a nice cash flow.
Example I have found two properties in Arrowhead Ranch that the previous owner paid 800k but the bank now has the home and is selling at 375k. A agent is saying he can get into the home for 325k with down payment assistance. I am looking at going after at least one of them and wholesaling them. There are many examples like this in the Valley and Tuscon. We just have to look and do your due diligence. Don’t be afraid to ask. They can only say no, as for as the price goes. JUST GO FOR IT. Be wise though.
Jeff