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It's "TFA Tuesday" -- True Freedom Achievers' Weekly Newsletter -- where you get Top-Notch Info & The Best Deals! 

True Freedom Achievers, LLC
602-538-7331 - Mobile  Mike@MikeLima.com

www.TrueFreedomAchievers.com

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It's "TFA Tuesday":  True Freedom Achievers' Weekly Newsletter -- where you get Top-Notch Information & the Best Deals! 


Hiding in Plain Sight - Fix/Flip for Big Profits in your Central City Neighborhoods:
By: Mike Lima

When it comes to Fix and Flips, many of us like the seemingly easier path of spit-shining a newer build, stucco/tile home in an HOA neighborhood.  They are alluring, partly due to typically requiring less time and money to remodel the property to retail levels.  Often, the roofs and major systems are still intact and have life left in them, and the repairs needed are purely cosmetic.  At the same time, many of these properties tend to be on the outskirts of the metropolitan areas, and sometimes are in quite rural areas.  In contrast, the older homes in most regions are those that are closer to the downtown cores, before the regions starting expanding outwards.

Do you remember back in 2005-06 when many loan officers' mantra was "Drive until you Qualify"?  That phrase stood for the dynamic that was in place -- the farther the drove away from the metropolitan areas, the more land was available at cheaper prices, so less expensive houses were offerred for purchase.  If you couldn't quite qualify for a house 15 miles outside of the city's center, just drive another 5 miles farther and your chances just went up.  Take buyers who were borderline qualifiers, give them loan products that were clearly too easy to obtain, and it's no wonder that many of those folks lost their homes when the market abruptly turned.  We investors took note of that and have been instrumental in buying and remodeling those homes to restore those neighborhoods.

My team has participated in wholesaling, and (when our buyers list doesn't buy them from us first) remodeling such newer properties on the outskirts of the city. And we have made reasonable Fix/Flip profits on them.   But by far our most profitable Fix/Flip projects have been on older properties, which tend to be closer to the city's center (i.e. within 10 miles of Downtown Phoenix).  Our most profitable 2013 Fix/Flip, which netted ~$84,000 in profit, was a 1950's red brick home just a few miles from Downtown Phoenix.  In fact, of our top 10 most profitable deals in 2013, each of which generated at least $20,000 of profit, ALL 10 of them were within 10 miles of a Downtown center. 

Let's briefly lay out the 3 key reasons why we LOVE the central corridors:

3.  More convenient to manage the projects.   Fix/Flip projects take a lot of attention, even if you have a good, experienced team.  I strongly prefer not to drive an hour each way to visit a remodel in San Tan, just to criss-cross the Valley and drive another hour or two to get to another remodel in Buckeye, traffic permitting.  Conversely, we currently have 8 active projects within 10 miles of each other in the central corridor
(7 of the 8 are >40 years old), and I can visit all of them in the same time it would take me to commute to and from just one property that's located in the outskirts of the metro area.

2.  Wider Net of Buyers.   The more buyers you have, and the more amenities you can offer, the better chance you have of finding a buyer and securing a successful project.  Older homes, which are typically in more central locations, often are close to more amenities, such as Restaurants, Shopping, Hospitals, Schools, Mass Transit, and Employment Centers.  In the wake of the Great Recession, we are seeing more people disinfranchised with the long commutes and under-funded HOAs of the more distant communities.

1.  More Value Add = MORE PROFITS!   Make no mistake- remodeling older houses is typically harder than remodeling newer ones.  Due to their age, they normally have more deferred maintenance, require more upgrades, and often need changes to their floor plans to accommodate today's retail expectations. Accordingly, they generally require a bigger remodeling budget, more time to remodel it, and yes, more expertise in knowing how and what to remodel to achieve the best bang for the buck.  Herein lies the tremendous opportunity for those who have the ability and guts to tackle these potential gold mines.  Most of our Top 10 deals of 2013, as referred to above, were gems that were hiding in plain sight -- that is , they were centrally located and older properties that we marketed to our buyers, but no one stepped forward to buy them, so we remodeled them ourselves and earned fantastic profits. 

In summary, I don't advocate that an inexperienced Fix/Flip investor should take on the extensive remodel of an older property without proper resources lined up.  However, if you do have the resources, or can obtain them, then the clever investor should strongly consider these older properties as excellent opportunities to bolster their bottom lines.  As an added incentive, if you purchase a pre-1980 home from us during 2014, I will personally give you a free 1-hour consultation, either at the subject property or over the phone, and will provide you with how I would approach the project, including what floor plan changes or improvements I would do to maximize the project's success.  This is not a new service for me, as I have frequently offered my advice/suggestions to many of you who have bought properties from our companies, but I just want to formally put it out there for those of you who might most benefit from it.  Take action on these older properties that are "hiding in plain sight", and renew them -- they can be incredibly rewarding for both you and the neighborhood!
 
** Editor's comment:  There are 3 examples of Historic Homes below; 1 is a Wholesale opportunity and the other 2 have already been remodeled by Mike's team. 


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Real Estate Humor:


 

Featured "Pin" of the Week:

We LOVE this idea, and it looks fantastic too!
- Rope lighting around the garden...inexpensive,
waterproof-and can be hooked up to a timer! 



Quote of the Week:



Featured Homes:

Historic Fixer in Phoenix
Charming 1920's Santa Fe Style Home 
with Historical Value in Phoenix

2205 N 25th Place, Phoenix 85008 -- $57k

Off-Market 2/2 in Phoenix Historic area
Wood Burning Fireplace and Claw Foot Tub
Price = $57k - ARV = ~$130k-140k
$3k Earnest Money to secure it  

Front Kitchen
Backyard Neighborhood
2205 N 25th Place, Phoenix 85008 -- Click Here for a MAP!!

Cross-streets: 24th St. & Oak
  • 2/2
  • 1023 s.f.
  • Lot = 5,581 s.f.  
  • Built 1925
  • APN: 120-37-053-B
  • Taxes: $349.16/yr. (2013) 
Features/Amenities: 
  • Charming 1920's Architecture
  • Wood Burning Fire Place
  • Claw Foot Tub
  • Original Accents Throughout
  • Easy Access to Loop 202 and Downtown Phoenix
  • Storage Shed
  • RV Gate
  • Bedroom Split
  • Wood Fencing
Price = $57k 
Repairs Needed = ~$20k-30k

ARV = ~$130k-$140k
$3k Earnest Money to secure it

Deal Structure: Off-Market, Traditional Sale
Access - Vacant - Call or Email for Access
              
Pictures - Click Here for PICTURES of 2205 N 25th Place
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Historic Remodel in Phoenix
Coronado Historic District Gem with tons of Upgrades and Designer finishes!
 
1230 E Almeria Rd., Phoenix 85006

$279.8k

McDowell Rd & 12th St. 
3/2/2cp, 1,501 sf+ in Coronado Historic District

Traditional Sale 
Price = $279.8k <> Bank Financing is OK <> 
$3k Earnest Money to secure it 
Front Front

  
1230 E Almeria Rd., Phoenix 85006 -- Click Here for a MAP!!
Cross-streets: 12th St. & McDowell Rd.
  • 3/2/2cp 
  • Lot = 6,120 s.f.  
  • Built 1950
  • APN: 117-24-083
  • Taxes:  $1,275.46/yr. (2013) 
Features/Amenities: 
  • Beautiful Home in Coronado Historic District
  • Gorgeous Remodel, Tons of Upgrades and Designer Finishes
  • Eco-Friendly  Solid Bamboo Flooring T/O
  • Stainless Steel Appliances
  • 2-Tone Paint
  • Premium Light and Plumbing Fixtures
  • Plush Carpet in Bedrooms
  • Kitchen features Carrera Marble Tops and Designer Back Splash w/ a Wine Nook
  • Huge Covered Patio w/ Custom Mural of DT Phoenix
  • Gas Fire Pit
  • Too much to list -- ya gotta see it!
  • Historical District; No HOA
Price = $279.8K Cash/Hard Money
 
Deal Structure - Traditional Sale 
Access - Vacant - Call or email for appt..
              
Pictures - Click here for Pictures of 1230 E Almeria Rd.
-----------------------------------------------------------------------------------------------------
Remodeled Historic Home in Phoenix
Ready to be Viewed by your Buyers!!
 

2036 N 17th Ave., Phoenix 85007 

$189k Cash or $199k with Bank Financing 
Phoenix on McDowell Rd & 17th Ave. 
2/1/1cg, 832 sf + Artist Studio in FAIRVIEW Historic District
Traditional Sale 
Price = $189k <> Cash or Hard Money <> 
$3k Earnest Money to secure it 
Front Front
  
2036 N 17th Ave., Phoenix 85007 -- Click Here for a MAP!!
Cross-streets: 17th Ave. & McDowell Rd.
  • 2/1/1cg plus Artist Studio
  • Lot = 7,457 s.f.
  • Built 1940
  • APN: 111-06-175
  • Taxes:  $1,134/yr. (2013)
Features/Amenities: 
  • Beautiful Home in Fairview Historic District
  • Gorgeous Remodel, melding history & contemporary finishes
  • New Marble Countertops, New Cabinets, glass backsplash
  • Stainless Steel Appliances
  • Wood Tile Floors, upgraded fixtures
  • New Roof, new stucco, new landscaping, New A/C
  • Custom RV Gate and Fencing
  • Artist's Studio with Air Conditioning
  • Garage with 2 Garage Doors, enabling access from Driveway & Alley
  • Too much to list -- ya gotta see it!
  • Historical District; No HOA
Price = $189K Cash/Hard Money or $199k with Bank Financing
 
Deal Structure - Traditional Sale 
Access - Vacant - Call or email for appt..
              
Pictures - Click here for Pictures of 2036 N 17th Ave, Phx
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Click the link below to view other homes that are available. 
      
 
-Mike Lima

Freedom Achievers, LLC
True Freedom Achievers, LLC
cell 602.538.7331
fax 602.801.2694

Mike@MikeLima.com
www.TrueFreedomAchievers.com


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-- Freedom Achievers & True Freedom Achievers are in the business of acquiring properties and wholesaling to investors or end buyers.  We acquire the properties through a variety of sources.
-- All prices are net to Seller;  Buyer pays all closing costs. Prices are based on quick closing of 7 days or less, unless otherwise indicated. 
-- Buyers are responsible for their own due diligence.
-- Properties are sold As-Is condition. 
-- Freedom Achievers & True Freedom Achievers do not own all of the properties that it offers.  Some of the properties it has an equitable interest in, and in such cases it is offering to sell such interest so that the Buyer can purchase the property.

-- Transactions are closed through a Title/Escrow Company, with Buyer receiving a title insurance policy.

 
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