Harry F. D'Elia, Investor , Mentor, CSSN Radio Coach, REOs, Networker, ePRO, CDPE

HI HARRY! MY TENANT HAS NOT PAID THE RENT IN THREE MONTHS. WHAT CAN I DO? ARIZONA PROPERTY MANAGEMENT

It has been my experience that many Americans are still going through rough times when it comes to money and jobs. American Corporations continue to cut jobs to save money on the bottom line and improve operations. Is there something wrong with it? No! However, it does have repercussions on the local economy. Furthermore, many large to mid-size companies are not giving annual raises due to cut backs.

Many people believe that property management is easy. Really? I receive a call the other day from a husband and wife that are having problems of their tenant paying the monthly agreed upon. I spent 45 minutes on the phone. I was able to earn their business. I now manage a property with a tenant being late on the rent. What to do?

I politely ask the owners to send me over a copy of the WRITTEN and SIGNED lease when it comes to Arizona Property Management. I need to know the terms of the contract between the landlord and tenant so I can enforce them. Well, she sent me over several Emails explaining the terms of the agreement. However, I still did not receive a signed lease between both parties.

I phoned the owner to personally ask for the signed lease. She informed me that the lease was never signed by neither party. This means we do not have a lease. We have tenants leasing a property without an executable lease. WOW! We have people practicing real estate without a license. The tenant owes the owner about $3,000 in rent, late fees, and other expenses.

Properties R Us LLC only charges $60 per month per door when it comes to Arizona Property Management. This is the best deal in Phoenix, Arizona, when it comes to property management.

Meanwhile, I am in discussion with current tenant who is currently overseas until next month. We need to have both sides to sign a lease to we have an agreement between both parties. Are you covering your assets? Oh! The owners do not have this asset in a legal entity just their personal names. Surely, they are need of my expertise when it comes to Arizona real estate investing.

Please call on me when you need affordable Arizona Property Management! Only $60 per month

$3,000 owed by tenant/$60 per month property management=This money would of paid for FOUR years of property management. Make the call Today

THE ROAD LESS TRAVELED IS LONG BUT JUST DO IT

Happy New Year 2012. I am writing my first blog of 2012. Many of you have been asking about Harry D'Elia. I would like to thank many of you for inquiring about my presence and well being. We all face challenges in life from time to time. Well, my challenge was last year about this time. I would like to announce that the roller coaster ride has ended for me and my family. It feels good to be normal and to get down to business. So, what happened to Harry that was so tragic.

My wife of 21 years embarked on a journey back to Louisville, KY, to settle her parents affairs. We only calculated her being gone for two months. It lasted nine months. Both of my inlaws were diagnosed with dementia. So, the plan was to empty the house and put it on the market for sale. It sounded like a logical plan when it comes to real estate. Right?

Well, we had to go through 40 years of personal belongings which is never easy. Then, we discovered the home had structural issues that had to be dealt with at the same time. This meant obtaining bids from licensed professionals in the local area and completing the work. We decided to enroll our kids into the public school system. I had to go back to Phoenix, Arizona to continue my real estate business and to take care of my inlaws. It has been a long road.

Also, I decided to join a new real estate company that offers full real estate and property management services to the public. I have never practiced property management. I had to learn this part of real estate from the grown up. Wow! I have a new respect for property managers. Currently, I manager well over 100 units and counting. I am now able to offer my clients a true ONE STOP solution when it comes to real estate

• ACQUISITION
• REHAB
• PROPERTY MANAGEMENT

My life was put on hold last March of 2011 when my father in law died. I flew out to Kentucky to bring my family back home. It was a long and hard trip. We buried my father-in-law with full military honors here in Arizona. It was a great day as they had arranged two planes to fly over his burial services. Picking up the pieces is never easy in one's own life. However, I believe we are a better family after it. I was learning a new part of real estate, closing deals, and taking care of my sick in-laws. I do not regret one thing about it.

3 LESSONS I HAVE LEARNED FROM THIS LIFE EXPERIENCE

1. FAMILY FIRST AT ALL TIMES IN LIFE
2. I CAN DO IT
3. ASK FOR HELP IN YOUR CIRCLE OF INFLUENCE

IT IS NICE TO BE BACK WITH MY AR FAMILY

HELLO HARRY! MY SECURITY DEPOSIT WAS SHORT $114 ARIZONA PROPERTY MANAGEMENT

Property management is one of those items that many real estate investors have decided to do it on their own until the tenant stops paying rent. Properties R Us LLC in Phoenix, Arizona, offers Phoenix Property Management for $60.00 per month. What do I get for $60 per month? I get this question a lot from real estate investors. I tell them cash flow.

Recently, one of my tenants informed me that they had suffered job loss and need to vacate the property before the end of the lease. Tenant gave me 30 day notice to vacate. However, this does not mean tenant can break the lease without the owner and tenant agreeing upon terms. The lease is a contract between two parties. Properties R Us LLC is the middle point of contact between the two parties.

I informed the tenant on what we can do and cannot do. I immediately put the unit back on the market for rent. I had one perspective tenant that loved the home. He put a nonrefundable deposit on the home. I informed the current tenant that I have found a replacement. Owners agreed to return security deposit based upon a MOVE INSPECTION. I think the tenat forgot this part of the agreement.

The maintenance department performed a move out inspection as scheduled. The tenant was being charged for the following items on the move out inspection:

We explained to the tenant that the following charges were part of the agreement. We do the best we can to please both sides. The new tenant is very happy with the unit. It is time to rent the other units out this weekend.

TOP 10 WAYS TO GET ONES FINANCIAL HOUSE IN ORDER BEFORE THE END OF THE YEAR

Everyone one I know including myself is cutting back both in business and personal budgets to overcome this dip in the economy. There is nothing wrong on reevaluating the budget here and there to save money. I am glad that people are going back to basics. I know many people that were using their house as an ATM machine. That was wrong. Here are my personal tips on money management

1. Overall Snapshot of my Financial Picture right now
2. Obtain a second quote on all of my insurances from insurance broker
3. Do not count on that bonus this year
4. Take better control of one's money
5. No more impluse buying
6. Pay cash no credit whenever possible
7. Obtain a copy of ones credit report to check for mistakes
8. Put money away for retirement
9. Purchase rental house for retirement
10. Put away money for college costs

ARIZONA REAL ESTATE SELLER FINANCING IS ANOTHER GREAT OPTION TO SELL THE HOME

Market values continue to decline across America. Home values have decreased from 25-50% from 2005 boom. The traditional way of selling real estate is making it harder to sell residential real estate. Here in the Phoenix housing market, bank owned properties make up to 50% or more of listings in the Arizona Multiple Listing Service. Many sellers including new home builders continue to compete with low selling foreclosed homes.

Yes, mortgage rates continue to be at their lowest levels in years. However, mortgage guidelines continue to make it harder for people to obtain a traditional home mortgage based upon their credit history. One must prove their income via full documentation loans. Also, buyers must put a down payment from 3.5% up to 20% on a home purchase.

How do sellers compete in this market when selling their home? One solution is a rent to own or lease option. The typical lease option is for 24 months. The lease option puts down a small down payment from 2-5% of the sales price to the seller plus monthly payments until lease option candidate is able to be in position to exercise his/her option to purchase back the house at the agreed upon price via the purchase contract.

My name is Harry F. D'Elia III. I have been performing lease options for the last six years. I have put together over one hundred of these types of contracts between a seller and lease option candidate. I always advise that it must be a Win-Win for both sides in order to obtain success.

One reason for my high rate of success is because I aid the lease option candidate to be in position to exercise his/her option in the given time period. I work closely with Praxis Credit Consulting. This firm is able to rebuild one's credit rating through education, support and clear expectations to be performed by the lease option candidate.

Many people are forced to use this option to sell their house because they have no money to pay realtor's commission since property values declined over this past year. The lease option business will continue to grow as people have been foreclosed on plus many people have lost their jobs. It is a perfect storm for investors at this time.

Risks

There are risks on both sides of the coin. The lease option candidate with bad credit and no money for a 20% down payment, a lease option is a great solution. Making their monthly payments on time plus clearing up one's credit will aid in rebuilding one's credit rating. However, it does come with risks. Will the home appraise for the agreed upon purchase price set by buyer and seller? If it does not appraise, then buyer and seller will need to negotiate. There are no guarantees that buyer can obtain a loan program that fits their current profile needs.

There are many pluses for the sellers. First, the seller is able to obtain above asking rental price along with a nonrefundable down payment. Also, seller is able to take the tax deductions on the property. Plus, seller can avoid realtor's commission if lease option candidate exercises his/her option. If the tenant does not exercise the option, the seller still wins because the property has appreciated and person in the house has paid down the seller's mortgage each month. The downside to the seller is when the house does not appraise for agreed upon price. I have experienced when the seller will not sell the house because house did not appraise. The tenant created a lot of damage to the property. Plus, the seller will have to start the eviction process.

Everything is negotiable in real estate. Having a solid lease option contract that spells out every detail for both the seller and buyer is the key to a successful lease option. Real Estate and Beyond Network has developed a solid lease option contract that ties both the rental contract and purchase contract together to have a legal binding contract with seller and lease option contract. My lease option contract is solid in the court of law and it has been challenged many times.

Setting up Win-Win Scenario

I always advise my investors to treat people the way they want people to treat them. Respect and honor goes a long way with people. What if the seller would send the lease option candidate a $100 gift certificate from Wal-Mart in a thank you note? I believe this act of kindness will go a long way. I have developed checklists for both sides of the transaction to be successful.

Seller Beware Checklist

• Seller will need to conduct full background check on potential lease option candidate including employment check and three reference checks with name and number
• Insist on using your contract with detailed real estate language
• Set the price where lease option candidate will be able to purchase the house in 24-36 months. It must be a Win-Win for both seller and lease option candidate
• Treat lease option candidate as a homeowner. For example-his monthly payment will be referred as a mortgage payment to have home ownership in his/her mind.
• Seller still responsible for his/her mortgage payment, taxes and insurance along with HOA CC&Rs
• Set up quarterly inspections by third party person to inspect interior and exterior along with changing AC filter and other minor maintenance upkeeps to avoid any major damages to the house
• Lease option candidate is responsible for all repairs of the house
• Purchase home warranty on the property for extra protection. Lease option candidate will be responsible for copay-around $45-55 per visit
• Ensure you use both a residential lease and purchase contract along with a document bringing all documents together for extra protection
• Retain the services of a real estate lawyer or property management company in case one needs to evict a tenant
• Require the lease option candidate to participate in a credit consulting program like the one we offer at Praxis Credit Consulting here in Phoenix, AZ
• Record all documents at title
• Be prepared to modify the terms of the contract if market conditions change in the near future
• Give up to 25% of the monthly payment towards the purchase of the house for incentive to make payments on time

Buyer Beware Checklist

• Ask the seller to review the mortgage note and to verify seller is in good standing with the mortgage company. Furthermore, please ask what type of mortgage is on the property
• Buyer to pay for an appraisal to verify current value of the home. Furthermore, I would advise to conduct a home and pest inspection before moving in to avoid any issues before moving into the property.
• Read over the lease option contract to ensure all details have been spelled out for both sides. We want to avoid any misconceptions as time goes on
• Always let a real estate lawyer to review lease option contract to ensure accuracy and good standing before signing any paperwork
• Conduct a thorough background check on the seller and be willing to pay for it. If seller disagrees with this request, then take it as a bad sign and move on.
• Verify that the owner owns the property by contacting a title company to do a title search
• Set monthly payments up via a third party service to ensure mortgage is being each month to avoid any negative information in the near future. Plus, record all documents at title to ensure one can exercise their option to purchase property under contract