How to Make Land Cash Flowby Jack Bosch

Many people think and have been taught that land isrisky, expensive, doesn’t cash flow and takes a longtime to convert into profits. In this article, I want tofocus on the one thing I hear mentioned about landall the time and that irks me the most when I hearpeople talk about it. And that is that:

“LAND DOESN’T CASH FLOW”

While it technically is correct that land itself does notcash flow the same way a rental house cash flows,there are some distinct waysto make land cash flowwhich I will go into detailswhen I am presenting atAZREIA’s September meet-ings.

When I am saying you canmake land cash flow, I amnot particularly talking abouttraditional income land likefarmland or land with bill-boards or cell phone towerson them.

Certainly, that works too and it is absolutely possibleto take a piece of land in a city and rent it out as aparking lot, a storage place, or even as a place to put acell phone tower or billboard on. There are many aland owner who has made a nice steady income bybuying a piece of land in rural areas next to an inter-state and then adding either fixed or non-fixed (trailersor old trucks with advertising surface) and renting outthe surface to businesses in the area forever. Just a fewof them make more income a month than most peo-ple earn in their jobs.

But that is not really what I am talking about in thespecial Drill Down session September 13th on how tomake Land Cash Flow. Instead I am talking aboutMaking Land Cash Flow by selling it with SellerFinancing.

What is particularly of interest when selling land withSeller financing MYWAY, is that with my techniqueyou often get all your investment back the momentyou sell the property and every single payment after-wards is just pure profit.

Looking for ways to get a high return on investment?Look no further. Here is what I mean.

The concept of seller financing is not new. Usually,someone buys a property for let’s say $100,000 andthen sells it for $120,000 with $20,000 down and$900 a month for 15 years or so. That is nice andbrings the seller peace of mind, $900 monthly cashflow and a good ROI. But at the same time, it takes agood 7-8 years to get the original $100K you put intothe property back.

Now let’s look at Seller financing and making landcash flow the way I do it.

You buy a TWOProperties worth $40,000each for $6,000 and thenyou sell it for $6,000 downand monthly payments for$450 (each) for 12 yearswhich would add up to$900/month in cash flow.

So, it’s the same monthlycash flow but everything

else is completely different.

The moment you sold the property you got ALL yourmoney back

From the first payment on, each month you get $900in cash flow that is ALL profit.

There are no tenants, toilets, termites or midnightmoveouts or anything like that.

Land is outside of Dodd Frank so you don’t have todeal with mortgage originator licenses and all kinds ofgovernment red tape.

You don’t need to take on a mortgage in the first placeto buy the property. Many of our students havebought properties for $100 and sold them with sellerfinancing for thousands.

Also, which of the ROIs is higher? Of course the sec-ond one, A LOT, and the best part is you have noneof your own money at stake. I like this kind of deal.

This is the kind of cash flow I will drill down into inthis month at both the main meeting and theDrill Down Session.

“AZReal as it Gets”SEPTEMBER2017

Arizona Real Estate Investors AssociationNewsletterTheAZREIAAdvantage

Contents

ArizonaReal EstateInvestorsAssociation1841North 24th Street

Suite 10Phoenix, AZ 85008480.990.7092

fax 480.990.7017www.azreia.org

Executive Director’sMessage . . . . . . . . . . . . . 2

Title Expert . . . . . . . . . . 3

Real Estate InvestmentExpert . . . . . . . . . . . . . . .4

Legal Expert . . . . . . . . . 5

Insurance Expert . . . . . . 7

Lending Expert . . . . . . . 8

Monthly Meetings . . . . 9

Calendar of Events. . . . . . . . . . . . . . . . . . 10

Legally Speaking . . . . .10

Property Listings . . . . 11

Meetings at a Glance. . . . . . . . . . . . . . . . . . .12

Phoenix September 11thTucson September 12th

Jack BoschCash and Cash FlowThrough Real EstateWithout Houses

2 www.azreia.org The AZREIA Advantage

Attacking Your FearsExecutiveDirector’sMessage

Boy, was it ever tough. Yes, I tried (just a little) to get out ofdoing it. The stress, at times, was intense. I was so far out ofmy comfort zone I couldn’t see straight. I stressed over it forweeks. So many people were counting on me. What if Iblew it?

I was asked to pitch hit for a professional, well-known,proven keynote speaker at a nonprofit’s major annualfundraiser. The fundraiser, that if unsuccessful, would createsignificant financial hardship for at least the next year andmay have lasting effects. No pressure there. I was asked togive the keynote and do the “ask”. Yep, to me that was thetough part – something I had never done before, noestablished skill to call upon, no previous words that hadproven to be “just right” to get strangers and people youknow to open up their wallets. Yikes!

Add to it that this organization’s success is of the highestimportance to my spouse and that it has been a major partof her life and mine for 20 years. Plus, this is anorganization that I think the world of and fully believe theyprovide a much needed service in an exceptional manner. Iam close enough to the founder and leader of thisorganization that I lovingly refer to her as my sister andthink of her as such. Double yikes!

I hadn’t felt this much fear in a very long time. Fear offailure. Fear of letting others down. Fear of peeing my pants.I should tell you, experiencing that fear took me backmentally to other first-time fears.

Looking back to the lead-up to the event I started thinkingabout people new to real estate investing and the fear thataccompanies getting involved and doing something new.The fear of beginning a new career. The fear of meeting newpeople. The fear of learning new skills. The fear of meetingwith distressed homeowners for the first time. The fear ofsigning the contract on your first deal. The fear of failure.

You don’t get over the fear until you’ve actually done what itis you’re fearing. AZREIA can help make it easier to be asuccessful real estate investor, but we can’t do it for you. Youmust decide to just plow through it. That you are going totake the risk and make the phone call to the homeowner orsubmit the offer even though it may look really low orattend the networking meeting even if you may look like thenew guy that doesn’t know much or ask the question thatmight make you appear stupid. If you are motivatedenough, you will get through all of it. If your why, yourpurpose is strong enough nothing will stop you fromreaching your goals.

There is a lot of help out there for you, too. Really good,reasonably priced education. Great networking events thathave proven value like the Phoenix Real Estate Club and themany AZREIA subgroups. Cautionary tales from otherAZREIA members. Quality mentors with fair businesspractices. Excellent businesses that understand and supportyour needs. Programs that increase your profits. Informationto help you understand the market. Tools to help youcomplete your research. Encouragement from new foundfriends and fellow real estate investors.

Oh, I almost forgot. The fundraiser achieved its goal.Actually, it overachieved a little. For me personally, it was ahuge a sense of relief. Also, it was a reminder if the outcomeis important enough you must attack your fears head-on.

Smarter investing,Alan Langston

The AZREIA Advantage www.azreia.org 3

In last month’s article, we discussed the fol-lowing points:

• Understanding the area you areinvesting in

• Finding good partners• Finding a mentor/Don’t reinvent the

wheel• Treating investing like a business

Now, it’s on to Part 2….1. Find a good hard money lender or

investors for the funding of your trans-action• Network, Network, Network!• Don’t be afraid to ASK those around

you.• Check with your mentor, Escrow

Officer, and accountant. These areall great resources. They all know orwork with individuals who couldhelp.

• Check out the vendor tables at thenext AZREIA meeting. There arehard money lenders there!

• Have you thought about investingthrough an IRA? There is usually anIRA company at the vendor tables aswell.

2. Ask questions• Surround yourself with experts and

utilize them. They are a great tool!Simply asking questions of otherinvestors you have met at network-ing events is an excellent way togather information.

• Asking questions is another form oflearning, and it’s usually FREE!

3. Find a good software program• Set up and track your P&L, your

budget and even keep your businessplan on track. Keeping everything atyour fingertips helps keep you

accountable. This also allows you tostay on top of how your business isgrowing (or not growing).

• Set up a database of contacts for allof your newly acquired tools.

4. Find a great marketing partner• Did you know your Escrow Officer

can put you in touch with one ofthe best marketing partners? A greatEscrow Officer has a Sales Executivewith whom they work closely withwho can give you access to so manytools (at least at Chicago Title wedo)! A title company’s marketingteam is a huge asset to you. Sometitle companies have brand specificapps to help you find/locate proper-ties, research properties, and budgetfor your closing costs. They alsohave lists of classes and trainingevents all over the valley. If you don’talready have a title company and/orSales Exec, you need to get one andwe are here to help with that!

• A great partner who can help youanalyze the market to figure outwhich type of mailings, postcards,signs, banner ads, door hangers, etcare actually working in the area youwant to target. Ask your network offellow investors and find out whohas the best pricing and has seen thebest results. If you are spending

money and your phone isn’t ringing,was it worth the money you spent tosend 10,000 flyers to the same hous-es that 100 other investors sent flyersto that same week?

5. Find a Niche• Residential condos, 2-4 complexes,

vacation rentals or single familyhomes.

• Figure out what type of property fitsyou and your business plan. Don’tspread yourself too thin and try tobe a “jack of all trades”.

6. GET STARTED!• No matter how much training, edu-

cation, networking and marketingyou do, nothing is as valuable asexperience. Find a mentor to helpyou on your first couple of transac-tions, but START somewhere! Evenif you fail, you’re still learning fromthe experience more than you everwould as a spectator or in a class.

Build your team - Fill your tool box -Start investing!As the largest Title Company in the nation,Chicago Title is committed to your successand has the resources to help! Please don’thesitate to contact us with anyquestions you have.

AZREIAAdvantage:TitleExpertSo You are New to Investing - Part 2

Jill BrightAVP/Sr. Acc’t. ManagerSales and Marketing

Chicago Title Agency14200 N. NorthsightBlvd., Suite 100

Scottsdale, AZ 85260

Phone: 480-998-9298FAX: 480-998-9307

byJill Bright

4 www.azreia.org The AZREIA Advantage

In previous articles I have made mention ofadding square footage. Additions are veryprofitable if done right. Just a quickreminder you can add up to 41% of the lotsize. But what if the lot is too small, orthere is a structure-like a pool- that preventsyou from adding square footage? You go up!What? Yes, there is a trend happening nowof adding a second floor.

A couple of months ago I came across thistrend in Arcadia. I was working with someclients on a property in Arcadia, but therewas not enough room to add to the existingfootprint. When we were out front, Inoticed that every house on the street hadbeen renovated they were 2 stories. A lot ofpeople might be overwhelmed trying tocomp this scenario, as well as figureout the “sweet spot” for the rightamount of square footage to beadded. But it is easy if you’re usinga system like the SmartMapSystem.

The first thing you need to do isdrive the neighborhood. Lookingto see if there are 2 story homesthat have been renovated. Theremight be the occasional “BradyBunch” house, where the ownersput the second story on just toaccommodate for family size. But ifyou start to see 2 story houses thathave been renovated then it’s timeto go and start the deep dive.

You will need to tighten yoursearch radius, preferably ¼ mile.Remember the further out you go,the more chance of error and withthis play, you can’t afford to haveany error. When you findcomparable properties, you willwant to use the sold price todetermine the average price persquare foot, to calculate you’re“After Repair Value-ARV”. Also,you want to find out the averagesquare footage of the comparableproperties. It is very tempting to

gravitate to the maximum square footage,but it is advisable to stay in the middlewhen adding square footage. Now that youknow your ARV you need to have a heart-to-heart conversation with your contractor.

You need to walk the property with yourcontractor, and it would be good to have anarchitect with you as well. Putting a secondstory on will open opportunities, fromadding garages or remodeling one of thedownstairs bedrooms for guests. But withall the opportunities and possibilities youreally need to find the right place for thestairs. This is where the architect will comein to play. Once you have the walk aroundwith your contractor and architect you needto ask the question-How much? Also, find

out if there are any potential pitfalls or outof the ordinary things to consider.

Back to the comparable properties, take aserious look at the pictures. Hopefully thesystem you are using allows you to see thesepictures. Since this is a new trend in thearea you will want to see how the houseswere finished. Look for ideas that willmake your property desirable, like thelaundry room on the second floor, decksand other unique features.

As I have mentioned, this is a complicated“fix and flip” so having the right system isimperative. The SmartMap System will cutyour time in half and deliver reliableresults.

AZREIAAdvantage:TheRealEstate InvestmentSpecialistsAnother Twist on Additions

The AZREIA Advantage www.azreia.org 5

Imagine you go under contract for a single-family home priced at $275,000, well underfair market rate – you do all your back-ground research during the inspectionperiod and the house looks to be in goodshape. Your seller is the original owner ofthe property and had completed someimprovements, such as a new garage anddriveway, but failed to complete all of therenovations inside the property. You calcu-late that after investing $30,000 in cosmeticrepairs, the property will have about$100,000 in equity. You close the purchaseand complete all of the work you need todo. Two months later, the house is ready tohit the market, and you get a demand letterfrom your neighbor indicating that thedriveway that the prior owner built actuallyis sitting on the neighbor’s land. The neigh-bor demands you pay him $100,000 orimmediately remove the driveway. Didthis just become an investment nightmare?

While many readers may think this typeof situation is rare, it is surprisingly com-mon with older properties, larger parcelsof land or property in more remote areas.Your author has seen this type of situationarise for driveways, septic tanks, pools andadditions to homes. Your rights are largelygoing to be controlled by how long thedriveway has been on the neighbor’s landand whether the neighbor intended toallow the prior owner to build on theneighbor’s land. Generally, if you build astructure on someone else’s land, the pre-sumption is that they have a right to forceyou to remove it. You can’t simply layclaim to another person’s property.However, that presumption may changewhen you have held possession for over

the statutory time period, which in Arizona,is usually 10 years.

Before taking any action with the neighbor,make sure you get a survey done and makesure the neighbor is correct. You don’t wantto pay to settle the case or get into extendedlitigation simply because you presume thatthe neighbor is correct. Once that is done,there are two related theories that may helpyou: adverse possession and easement byprescription. Your first step would be tocomplete research on when the structure wasbuilt and whether the neighbor allowed it.

Adverse possession is when you claim thatyou now own the land upon which thedriveway is built because it was installedwithout the permission of the neighbor, itsconstruction and use was open and hostileto the neighbor and that it has extended forover the statutory 10-year time period. Inother words, you (or your predecessors) haveexclusively used the driveway area for over10 years and didn’t have the permission ofthe owner. As we have courts of law that arebased in equity, this is not a solution that isfavored by the courts. However, if you canprove that the driveway was built over 10years ago and its use has been continuous,open and hostile, you may be able to get the

court to award you title. Again, while thismay seem like an odd situation, it’s very pos-sible this happens regularly. The neighbormay not even have known that was his landuntil recently.

As an alternative claim, you could also pro-ceed on the legal theory of easement byprescription. This has similar elements toadverse possession, such as hostile use of theland, but does not result in you being ableto get title to the land. Rather, if you aresuccessful in demonstrating the use of theproperty being adverse to the owner for therequisite time period, the court can grantyou continued use of the driveway foraccess. In other words, the title remains inthe name of the neighbor and they can usethe land, but you get to use and maintain itas a means of accessing your property. Youcan then pass those same easement rights toany subsequent buyer of your property. Thecourt can actually enter an order recordingan easement which would then show up ontitle for all future interested parties.

A party’s success in any given easement oradverse possession case will often depend onthe facts that they find, so before you doanything, start with research.

AZREIAAdvantage:LegalExpertIs Possession 9/10ths of the Law?

Mark B. Zinman,Attorney

Williams, Zinman& Parham P.C.

(480) 994-4732www.wzplegal.comby

Mark Zinman

6 www.azreia.org The AZREIA Advantage

AZ.R.E.I.A., Inc. (the “Association”) does not: (1) render legal, tax, economic, orinvestment advice, (2) investigate its members, or (3) represent or warrant thequality of goods or services provided by its members, the honesty, integrity, relia-bility, motives and/or resources of its members or their officers, directors,managers, employees, agents, and/or contractors. Consult your legal counsel,accountant, and other advisors as to risks and legal, tax, economic, investment andother matters concerning real estate and other investments. Members will complywith the Code of Ethics of the Association.

“Helping Investors is our Passion”BUY & HOLD SPECIALISTS

Dawn Kirkpatrick,SFR, CLHMS, CNE

Chris Kirkpatrick,CRS, ABR, CRIR, CSSN, CSSPE, e-Pro, SFR, RSPS

21040 N.Pima RoadScottsdale,AZ 85255Bus: (480) 585-0101

Chris’Cell: (480) 326-2454chris.kirkpatrick@realtyexecutives.com

Dawn’s Cell: (480) 600-0010dawnkirkpatrick@realtyexecutives.com

Let us help assist you in achieving your Real Estate Goals.We are Realtors® who are real estateinvestors with experience and who specialize in BANK OWNED, SHORT SALE PROPERTIES, Buy &Hold, and Landlording. Let us help you navigate through the complexities of SHORT SALES &BANK OWNED PROPERTIES from our specialized training and hands on experience.

• Diamond Club Award(Top 3%) - 2013, 2012

• Executive Club Award(Top 10%) - 2013, 2012,2011, 2010

• Silver Team Award - 2012• Bronze Team Award - 2011• Scottsdale Association ofRealtors Top Producer - 2012

• Top 1% of Agents in MLS -1st Half 2013

The AZREIA Advantage www.azreia.org 7

You may have a “Replacement Cost” fea-ture in the insurance policy for yourinvestment property, but what exactly doesthat term mean? Unfortunately, there aremany similar terms floating around, withno standardized terminology in the insur-ance industry. So what kind of coveragedo you have?

Although terms vary by company, thephrase “replacement cost” usually meansthat when you repair or replace items dam-aged in a covered claim, no depreciation istaken when calculating the amount of yourpayment. So when a heavy storm removesyour “20 year roof” after just 10 years,your insurance pays for the full cost of anew roof. If you did not have “replacementcost” coverage anddepreciation wereapplied, you would onlyreceive half the cost ofthe new roof, since yougot 10 years of use fromthe “20 year roof.”

The most importantthing to understand isthat the insurance policydoes not guarantee tore-build or replace yourrental property withoutlimits. There is always amaximum pay-out. Themaximum pay-out maybe the “buildings” limitshown on your policy.Or it might actually bemore. Read on.

A term that sounds verysimilar, but means

something very different is “ExtraReplacement Cost”, or words to thateffect. This is a feature where the insur-ance company allows an extra amount ofbuilding coverage for your claim, if the fullamount on your policy comes up ‘short’,meaning not enough to pay for the fullcost of repairs or replacement. With mostinsurance companies the extra amount is20% of the ‘building amount’ shown onthe policy. A key condition that must bemet in order to have this feature on yourpolicy is that the property must be insuredfor an amount equal to an estimate of thefull cost to rebuild the property. This cov-erage provides ‘peace-of-mind’ when thecosts for labor and construction materialsmove upwards unexpectedly.

With most owner-occupied insurance poli-cies (homeowners) the “extra replacementcost” feature is standard on all policies, butwith investor owned rental properties thisfeature is (1) not automatic and (2) notavailable from all companies. This is whyit is so important to ask about this cover-age. It could mean the difference betweenhaving $300,000 to rebuild a burned-down

rental house, and having $360,000 (20%extra added on.) Is there an extra chargefor this feature? Yes, but a typical charge isonly about $10 a year, so most investorsconsider this another “no-brainer.”

With over 37 years of insurance experi-ence, and as the owner of multiple rentalproperties myself, I know the importanceof having the right insurance coverage.

That’s why I always recommend “extrareplacement cost” coverage for every rentalproperty. The smart investor meets withhis insurance professional for a periodicreview to discuss what coverages they haveand, most importantly, what coveragesthey don’t have, and probably should con-sider adding.

* * * * * * * *CLARK SANCHEZ is a 37 year Arizonainsurance agent with State Farm. He hasbeen a Vendor-Affiliate with AZREIA forover 12 years and makes himself availableto AZREIA members to answer anyquestions they might have that areinsurance related.

When “Replacement Cost” Insurance Won’t Replace Your Investment

AZREIAAdvantage: InsuranceExpert

Clark Sanchez,Insurance Agent

1555 E. Glendale Ave.Phoenix, AZ 85020

(602) 277-2655clark@clarksanchez.comby

Clark Sanchez

8 www.azreia.org The AZREIA Advantage

VA Cash-Out Refinance

A Couple of Facts to know:• The loan limit is 100% of the Noticeof Value plus the VA funding feewith most mortgage servicers andinvestors.

• The borrower must be paying off alien. This program does not allowthe property to be free and clearfrom liens.

• The Veteran can receive cashproceeds from the loan after the liensare paid in full, as long as theyprovide a letter of explanation for theintent of the proceeds.

• The Veteran must own the property.• The Veteran must occupy theproperty.

• Cash out refinances require a fullcredit, income, and asset package tobe put together as opposed to a VAStreamline where less documentationis required.

What Amount is the Funding Fee for thesetypes of loans?• Note: There are no reduced fundingfees for regular refinances based onequity. Reduced fees only apply topurchase loans where a downpayment of at least 5 percent ismade.

Andrew AugustyniakLicensed MortgageLoan Originator

Peoples Mortgage Co.2500 S Power Rd.Bldg. 11, Ste. 225-2Mesa, AZ 85209

Phone: 480-735-4095EFAX: 480-882-0877

byAndrew Augustyniak

AZREIAAdvantage: LendingExpertRandom Things to Know

Type of Veteran Percentage for Percentage forFirst Time Use Subsequent Use

Regular Military 2.15% 3.3%*

Reserves/National Guard 2.4% 3.3%*

* The higher subsequent use fee does not apply to these types of loans if the veteran’sonly prior use of entitlement was for a manufactured home loan.

Quick Tips:1. Be aware that you will be asked to get

most of your financial documents2. Pre-Qualifications take between a few

hours to a few days depending on theborrower and borrower cooperation ingathering documents, investors withmultiple business and properties usuallytake longer

3. Be diligent in gathering yourdocuments, don’t be lazy and drag it out!

4. Don’t get mad at your Loan Officer, it’snot his fault.

5. Let go of the past, we are not in 2004anymore.

“Growing our business, one satisfiedcustomer at a time”

The AZREIA Advantage www.azreia.org 9

AZREIA Phoenix Meeting AZREIA Tucson MeetingMonday, September 11 Tuesday, September 12Celebrity Theatre Tucson Assn. of Realtors

AZREIA Prescott Meeting Phoenix Real Estate ClubTuesday, September 5 Tuesday, September 26Yavapai Title 24th St. Conference Ctr.

A lot has changed in Fair Housing since we last covered it. If youown rental property DO NOT miss this session. Our main sessiontakes an in-depth look at land and lots and contrasts with houses.Land is possibly a great flipping strategy and can be used for cre-ative cash flow. Not interested in land? Think again, it could be avery profitable second strategy and a low-price (5% - 25% of mar-ket value) way to flip. As always, the Market Update and MarketNews will be current and important to your investing.

Phoenix Workshop – Fair Housingwith Mark ZinmanYou’ve seen some of the recent Fair Housing issues in the MarketUpdate and Market News section of recent meetings. There havebeen several changes to Fair Housing law and new case studies inthe last couple of years. You do not need to be caught in a situa-tion where you don’t know your requirements. Penalties are harshand not knowing is never an excuse. Attorney and AZREIABusiness Associate, Mark Zinman, will get you fully up-to-date inhis engaging presentation and educational style.

Market Update & Market Newswith Alan LangstonThe latest in trend analysis for the US, Arizona and GreaterPhoenix including existing homes, new homes, foreclosures andtraditional sales. Full analysis of Fix & Flip and Rental markets.Plus, the latest Market News affecting your business.

Phoenix & Tucson Main Meetings: “How to GetCash and Cash Flow Through Real EstateWithout Houses or Hassles – from Your Home”with Jack BoschIn this presentation AZREIA member Jack Bosch is going to showhow you can make the same or better profits that house flippersmake and create cash flow from a little-known niche of Real Estatethat is substantially easier than house flipping – Land and Lots.Jack will show how you can find three highly desirable types ofland and lots for literally just 5-25% of market value. As anAZREIA members since the inception of AZREIA, Jack has grownwith the REIA and has flipped almost 4,000 properties. One par-ticularly exciting twist to his method is how he makes land cashflow, passively and long term.

• Real Estate Without Houses and with minimal competition• Cash Flow from land without tenants, toilets, and termites• This can be done everywhere in the entire USA and from any-

where in the World• With this method, you can buy properties for 5-25% of market

value and sell for multiple times profits• With the market hot, and builders craving for land, it’s easy to

find deals and flip them quickly to developers and builders, forprofits that rival or exceed those in the housing area.

Phoenix Real Estate Club – The Best Real EstateInvesting Network Anywhere!Haves & Wants, Structured Networking activities and the MarketDiscussion all combine to make the Club an integral part of anyactive investor’s month. There will be a timely presentation or dis-cussion topic, too!

Prescott Main Meeting – The Market and Trends;Strategies for InvestorsJoe Rowitsch of Windermere Real Estate will answer such ques-tions as what is the status of our Prescott-area single-familyhousing market? What are current market trends for Days-On-Market, Sales Volume, Prices, and Inventory? Can price changes bepredicted? How do today’s stats compare with our last boom?Which strategies might work now in our local market? Whereshould an investor look? Does our local real estate market containhidden opportunities?

Phoenix Agenda5:15 – Workshop6:00 – Trade Show & Guest Orientation6:45 – Main Meeting – Market Update & Featured Presentation9:00 – Adjourn

Tucson Agenda:5:15 – Open Networking5:45 – Networking: Investor-to-Investor, I Have – I Want,

Tucson Market Discussion7:15 – Main Meeting8:30 – Adjourn

Prescott Agenda:5:30 – Networking, “Haves and Wants” & Market Overview6:00 – Main Meeting7:15 – Adjourn

Phoenix Real Estate Club5:30 – Open Networking6:00 – Networking: Investor-to-Investor, I Have – I Want,

Market Discussion7:30 – Main Meeting8:30 – Adjourn

Monthly Meetings

10 www.azreia.org The AZREIA Advantage

AZREIACalendarofEventsCheck www.azreia.org for the current schedule.

Q: Today is August 31; if I serve my tenant with a 30-daynonrenewal notice, will it be effective by September 30?

A: The short answer is that if you hand-deliver the noticethen, yes, it will terminate the lease at the end ofSeptember if rent is due on the first of each month.This question actually has two parts. The first partdeals with when is a notice effective. The lawprescribes that you must give notice prior to the nextperiodic rental period that is in at least 30 days. Thismeans that the notice is only effective when the rent isdue – just because you serve a notice on the 15th of the

month, it is not effective on the 15th of the next month. It iseffective on the next periodic rental period which must be over 30days away – usually the first of the month and thus the personmust vacate the last day of the prior month. Second, if you hand-deliver the notice, it is deemed received immediately. However, ifyou send it certified, it is not deemed received until 5 days later.Therefore, if you send it on the 30th, it may not be received till the4th of September and it wouldn’t be effective to terminate the leaseSeptember 30. If you are ever getting late into the month andwant to terminate a lease, be sure to hand-deliver the notice.

Mark B. Zinman, Williams, Zinman & Parham P.C.

Information contained in this article is for informational purposes only and should not be considered legal advice.You should always contact an attorney for legal advice and not rely on information published here.

The AZREIA Advantage www.azreia.org 11

Property Listings Complete listings online:www.azreia.org

Note: All real estate advertising in this newsletter and on our website is subject to the Federal Fair Housing Act of 1968. Pleasevisit www.azreia.org for complete notice on fair housing and for additional information on each property listed.

ArizonaRealEstateInvestorsAssociation1841 North 24th Street, Suite 10Phoenix, AZ 85008

RETURN SERVICE REQUESTED

Meeting September 11, 5-9 p.m.www.azreia.org

PRESORT STDUS POSTAGE

PAIDPhoenix, AZPermit #1240

AZREIAMonthlyMeetingsataGlancePhoenix Workshop – Fair Housing with Mark ZinmanThere have been several changes to Fair Housing law and new case studies in the last couple of years. Attorney and AZREIABusiness Associate, Mark Zinman, will get you fully up-to-date in his engaging presentation and educational style.

Market Update & Market News with Alan LangstonThe latest in trend analysis for the US, Arizona and Greater Phoenix including existing homes, new homes, foreclosures and tra-ditional sales. Full analysis of Fix & Flip and Rental Markets. Plus, the latest Market News affecting your business.

Phoenix & Tucson Main Meetings : “How to Get Cash and Cash Flow Through Real Estate WithoutHouses or Hassles – From Your Home” with Jack BoschIn this presentation, AZREIA member Jack Bosch is going to show how you can make the same or better profits that house flip-pers make and create cash flow from a little-known niche of Real Estate that is substantially easier than house flipping – Landand Lots.

Phoenix Real Estate Club – The Best Real Estate Investing Networking Anywhere!Haves & Wants, Structured Networking activities and the Market Discussion all combine to make the Club an integral part ofany active investor’s month. There will be a timely presentation or discussion topic, too!

Prescott Main Meeting – The Market and Trends; Strategies for InvestorsFind answers to questions like, what is the status of our Prescott-area single-family housing market? What are current markettrends for Days-On-Market, Sales Volume, Prices, and Inventory? Which strategies might work now in our local market?