I just returned to the office after showing a couple a well done flip! It revved me up so much that I just have to take a moment and pay its developer respect. The home started life as a simple bungalow in 1925 in the very core of downtown Mesa. Over the years it was added onto and updated. Someone has now come in and tied all the remodels together and updated the kitchen and baths beautifully. Details like crown mold and refinished hardwood floors were a tasteful part of the renovation. Old time charm met modern convenience throughout. The updated floor plan included comfortable bedrooms and closets that would not have been found in 1925. It even incorporated one of the favorite little “badges” I like to give my homes—a bright colored front door! The Seller did just enough accent staging to make the home really pop! My clients have an opportunity to live in this new house inside its old renovated shell for a cost that will probably pencil out to be less than their current rental payment! It fits their life style of entertaining and ministry perfectly!
I take my hat off to the flipper. They have taken a tired property and brought new life to it. It will serve families well for more generations. A property lagging in its support of the community through its tax contribution has been returned to a solid contributor for the foreseeable future. A huge contribution has been made to the immediate community to set the standard for what can be done with surrounding properties as their cycle of ownership occurs. A developer will earn an honest and fair profit for doing their community a favor and some family will enjoy a great place to call home for years to come! Good job!!!
I must admit, I love being able to transform property that has become a blight to a blessing. We all know that some flippers are really flimflammers. They use gold paint to cover a sow’s ear in the country vernacular that spawned me. They tie a new sink to a drain that does not drain. They put a chandelier in the dining room and a copper penny in the old fuse box! We don’t have any tolerance or use for that approach. However, we love to see something tired and old transformed with today’s modern efficiencies and methods to a new life that will serve future generations with safety, comfort and class!
On many occasions, wearing some of the different hats I have worn over the years from a consultant to a developer, I have toured sites, usually multi-family projects and become heart sick at the waste contemplated by leveling a 20 year old project either built with inferior products, methods or managed so poorly that residents were allowed to destroy it from within. Disposable diapers make sense for families. Disposable housing does not make sense for a national economy. That is why I view flippers who operate with integrity as providing a great service to their home buyers and their community.
This week I had some conversation with another real estate professional. We were discussing ways we create opportunities for potential investors that have a significant balance in their retirement accounts that are earning them 1% returns. This conjures an instant mental picture of a senior putting on her orange apron to cover her shift at Home Depot instead of kicking off her flip flops for a walk on the beach. . .
Folks need to know that if they shift their retirement resources away from that negligible growth to an opportunity that provides significant growth for them, that the funds are not put at high risk. I am seeking legal counsel but am absolutely convinced that can be achieved. I am convinced that this same opportunity can be organized to bring a positive bearing on our dismal economy. I believe that such funds can be utilized to provide homes for the many in these present times that got caught in the bubble created by Wall Street’s pyramid scheme of mortgage securitization.
Many solid responsible people with secure ongoing employment were sucked in over their heads and ended up finding themselves in foreclosure. Now the Lenders that were central to creating the problem treat these folks with disdain. They tell them to come back and beg to buy a home after setting on the sidelines for several years. Given opportunity, these folks would buy reasonably priced homes and happily comply with the responsibilities of homeownership.
Our present challenge lies in marrying these two needs in a way that benefits all. We believe we can! We believe we can flip homes to create jobs, add value to our community, and give a homeowner a great value! We believe we can create a conduit for that same homeowner to safely employ the retirement funds of folks and provide them a reasonable return that the financial institutions refuse and/or can’t provide. All this can occur if the path that leads to ownership takes a different path than the Lenders have used of late. Home buyers and investors need to work together in an open honest relationship where if a home buyer performs as promised, they end up owning an affordable home representing a good value. On the other hand fairness requires that if they do not perform, the investor must be protected without prolonged effort or time.
For years, before overcome with greed, our hometown banks prospered greatly and safely by providing funds to buy homes to the people they knew as friends and neighbors. The economic dynamics behind that still exist. Investors and country bankers know the rule of 72! Take the interest rate and divide it into 72. The answer will tell you how many years it takes to double your investment. That tells us two things quickly. If a retirement fund earns a high 1% today in 72 years your $1 will grow to $2. Lenders for years had mortgages yielding 8% and therefore doubling the banks money in 9 years. These same principles can work for folk’s private retirement funds.
Deb loves the classic movie, “It’s a Wonderful life”. Remember how Jimmy Stewart as George Bailey sacrificed to keep his father’s savings and loan alive to provide people an alternative to greedy old Potter’s bank. God gave George an opportunity to see how his community would have spiraled downward under Potter’s heavy hand if George had not done the right thing and refused to be bulldozed over by Potter’s greedy bank. I believe we stand at that same crossroad as George. We can tell the greedy banks that betrayed our nation to further their personal greed to go join Potter! We can band together as George and his customers did and meet our own needs in a way that creates jobs, solid affordable housing and a better community. If you are interested in the issues or want a voice in the forum, contact us!
Check out the revisions of the Lamplighteraz.com web-site, including the opportunity to receive these articles in your email if you choose. Learn about Lamplighter Realty, Lamplighter Financial, and Distressed Property Academy at callgene4realestate.com For your real estate needs, call Gene’s message center for Lamplighter Realty 480-307-6459 or dash off an email to him at gene@lamplighteraz.com. God Bless!
