I feel confidant in the Multifamily Market for Arizona. Most tenants are paying the rent and units are renting.  Investors are buying and real estate (multifamily) prices do not seem to be dropping much if any.

Below is an article published by AZ Central.com and the Arizona State Economists

 As Arizona and other states gradually reopen their economies, grim headlines will persist for months. But better news may not be far off.

Arizona State University economists are predicting a recession of three to nine months, followed by a swift recovery if consumer spending — bolstered by heavy federal stimulus — kicks in as they expect. 

“We’re going to see some startling numbers,” said Dennis Hoffman, an ASU economics professor, citing what he expects will be annualized drops in national Gross Domestic Product during the second quarter of between 20% and 40% and unemployment rates for Arizona that could exceed 15%.

However, Hoffman and other speakers at an annual forecasting webinar hosted by the W.P. Carey School of Business and the Economic Club of Phoenix expect a relatively quick V-shared recovery as suppressed consumer spending and service industries rebound.

And in some ways, Arizona could emerge from the downturn well-positioned to attract further business investment and expansion.

V-shaped recovery in the cards?            

After what will be a dismal April to June stretch, the third and fourth quarters “could be stronger than many people expect,” said Lee McPheters, another economics professor at ASU during the forecasting webinar.

Some forecasters worry that the national economic rebound could be slow to materialize, characterized by an L-shaped pattern, with flat economic progress after the drop. Another scenario is of a W-shaped pattern, where the economy falters again if another severe coronavirus outbreak surfaces.

But Hoffman and McPheters said they expect a V-shaped recovery, with a robust rebound. That would suggest a recession of three to nine months from a starting point in March of this year, returning the economy to normal by early 2021.

A U-shaped rebound, another possibility, would take a while longer to complete. It would get the economy back to where it was — before the outbreak occurred — sometime in 2021, possibly by the fall.

Arizona’s job losses, while severe, have been relatively muted compared to those of many other states.For example, jobless-benefit claims amounted to 14% of Arizona’s labor force from mid-March through April 25. Only 13 states had better, meaning lower, rates.

Still, the Arizona unemployment rate likely will rise from an average of 4.7% in 2019 to an average of 9.4% this year before easing to 5.5% in 2021, McPheters said. He predicted population growth will slip from 1.7% last year to 1% this year before recovering a bit to 1.4% in 2021.

For both Arizona and the nation, the rebound will be helped by the $2.9 trillion in increased federal aid, much of which has yet to kick in, McPheters said. That aid — in the form of small-business loans, stimulus payments, jobless benefits and income-tax relief — is roughly four times what was spent during the Great Recession more than a decade ago.

“By 2021, we’re expecting the economy to come back,” McPheters said.

Housing direction still unclear

Real estate is one wild card in the mix, with hotels, malls and other sectors devastated by coronavirus-related shutdowns. However, homebuilding, supermarkets, manufacturing, data centers and other property types are holding up well.

Nationally, Realtor surveys have shown a decline in buyer interest on single-family homes, yet sellers haven’t budged much on asking prices, said Mark Stapp, an ASU real estate professor. Arizona hasn’t seen much impact yet, he added, though other measures such as requests for mortgage forbearance, including payment delays, point to problems ahead.

“We’re beginning to see stress on homeowners,” Stapp said.

But several characteristics of Arizona’s property market could help the state emerge in fairly good shape and could position Arizona as a destination for more business expansions and relocations.

In terms of social distancing, for example, Stapp pointed to factors that include relatively low density in Arizona’s cities and towns, the mild dependence on public transit here, an outdoor-focused lifestyle and no major international gateway airports.

These factors present an opportunity to brand metro Phoenix as a “healthy area,” he said.

Lingering uncertainties for the future

For Arizona and the nation, all sorts of economic and societal questions remain unanswered.

How much will air travel pick up? What about large-scale gatherings, including sporting events? Will many employees continue to work at home, reducing the demand for office space? Could downtown Phoenix and other urban centers lose their luster, replaced by more vibrant suburban centers with more restaurants, entertainment and other localized amenities?

“There will be a lot of questions coming out of this, and businesses will need to make some significant decisions,” Hoffman said.

Please let me know if we can speak personally about the Phoenix Market-I have gained a GREAT deal of insight with the conversations and market research that I am doing!

602-688-9279 let me know the best time to speak!


The Covid-19 Pandemic is forcing us all to change the way we live and work.  We hope this is a temporary situation.  In order to protect our clients and staff to the highest degree possible, and still provide the best service possible, we have undertaken the following steps.  We ask for your cooperation and understanding as we all deal with the circumstances presented.

While I am taking calls and there are several, I am finding that experienced investors are ready to buy and while the beginning investor is a bit more cautious I am helping  position everyone in the best possible positions.

I have had lengthy conversations about the Covid-19 and the effect of industry and investments for the Phoenix Market.  I am on top of what is happening and would welcome the chance tospeak with you in person.

As it is getting warmer here; many experts believe that the heat will help burn off the virus faster than other parts of the country.  This is good news for the economy here is Phoenix.  This week we will reach 100 degrees.  I NEVER thought that I would be happy to see the hotter temperatures.  I have lived here since 1968 and relish out winters.

It is felt that many people will be relocating to the Phoenix area (I have already seen this in several clients).  This will bring a work force base that we will need.

This being said, there are 5 distribution centers currently being built in the western part of the Phoenix Area.  I know that two of them have been realocated to become manufacturing plants.  I think that we all agree that we need to bring a great deal of America’s manufacturing home!

I understand from people that I have been speaking to that there are currently around 250 NEW companies relocating to the Phoenix area.

Many of you know that Tom works at Boral Roofing and he is still working.  The plant is manufacturing concrete roof time and they have just moved the crew to 7 days a week.  This means that houses are in demand.

With the above said, the thought is that rents will remain or increase as demand is needed. Jobs will come back and the employment base will be needed.

The projections that are being seen is that the middle of the third quarter and the last quarter may very well be exdtremly busy for Real Estate.

Effective immediately, Empire West Title Agency will:

  • Allow only those customers whose signatures are required to attend closing or signing appointments.  Realtors, lenders and non-signing family members, including children, will not be permitted to attend signings.
  • Any customers who have traveled by air, train or bus or to any heavily affected area within the last 2 weeks are asked to retain a mobile signor.  We will assist in arranging one. 
  • Our staff is taking the necessary precautionary sanitary measures and practicing social distancing.
  • All writing implements will be unused and either thrown away or given to the customer if desired.
  • Hand Sanitizer is available for use prior to and after signings.
  • Any employee showing signs of any illness will be instructed to stay home.
  • A portion of our staff is currently working remotely to allow for more distancing in the branches.
  • All signings in the branch offices must be by appointment only.
  • All deliveries and pickups will be handled at the office door.


Courtesy signing appointments at branch locations are currently unavailable. Some of our vital services or affiliates may not be available or you may experience less than normal response times due to the current circumstances. It is our intention to continue to provide our services within the restrictions placed upon us all by the Pandemic.


Thank you for your understanding and patience as we continue to keep health and safety front of mind.



COVID-19 (the coronavirus) has been declared a pandemic by the World Health Organization and has likely impacted many aspects of your life. We understand how stressful this time is for you and your family. At Mynd, the health and well-being of our residents and owners is our top priority.

We have taken steps to ensure business continuity and are committed to being responsive to the needs of our customers as the situation evolves. We are in contact with the maintenance and utilities vendors that service your home in order to minimize possible interruptions, and we will keep you posted if we expect any service delays. The easiest – and safest – way to reach us is through your resident portal. You can use the portal to pay your rent and submit maintenance requests completely online, without leaving the comfort of your home.






To Our Valued Clients: Unless you are living on a private island, your life has been impacted over the past few weeks as a result of COVID-19 and the reaction by both the government and private citizens. It is an odd sensation to walk into a store only to find a large number of empty shelves and people wandering around with worried and panicked looks. Most Americans have never experienced empty shelves and the closure of businesses and schools, even though we hope and pray it is only temporary. Because we don’t have hurricanes, tornados, earth- quakes, or tsunamis, many Arizonans have never experienced a disaster that has been more than a mere an- noyance in our daily lives (even the occasional “Haboob” is over quickly). 

Over the past few weeks all levels of the government have implemented many changes to the way we do busi- ness. On a hopeful note, on March 27, 2020, the President signed the CARES Act which may offer a reprieve to many of you and your businesses. This very important law is discussed in detail below and in a second Guidance Memorandum that we are preparing for our clients. We hope that our email blasts are helpful in guiding you through this tumultuous time in our industry. Below are the most important changes that have oc- curred in the past week. This information is what you need to know if you own or manage rental property. 

Arizona Changes IMPORTANT UPDATE—All Commercial Evictions Stopped by April 6 Executive Order. On April 6, 2020, Arizona Governor Ducey issued another executive order stopping all commercial evictions. The order specifically prohibits any eviction action “including lock out, notice to vacate, or any other attempt to inhibit the operations of small business.” The Governor’s intent is to provide relief to small businesses statewide im- pacted by the COVID-19 pandemic. The suspension of these evictions runs through May 31, 2020 and pro- tects commercial tenants with fewer than 500 employees and all manner of entities including sole proprietor- ships, partnerships, C-corps, S-corps, LLCs, independent contractors, the self-employed, 501(c) (3) entities, 501(c)(19) entities, and tribal businesses. Any actions instigated prior to the March 11 State of Emergency order may continue, but any actions that began after that date are suspended. 

Housing Providers and Real Estate Professions are deemed Essential Services”: On March 23, 2020, Governor Ducey issued Executive Order 2020-12, intended to provide our state with a consistent, overarch- ing policy of the businesses and operations he deemed “essential” and such services would continue to be provided to the citizens of the state of Arizona. We are pleased that the Governor recognized that housing providers and real estate professionals are a critical facet of Arizona housing industry, as are the trade per- sons that aid in the maintenance of the residential rental industry. The reason Executive Order 2020-12, is an important directive is obvious – without property management and maintenance professionals being able to leave their homes and supply the necessary services, serious health and safety issues would impact the lives of our residents and cause potentially irreparable harm to the premises. On April 3, 2020, the Governor clari- fied in a public statement that apartment pools, gyms, etc. must remain closed. 

Postponement of Non-Payment Evictions for Renters that have been negatively impacted by COVID- 19: On March 24, 2020, through Executive Order 2020-14, the Governor surprised everyone by issuing an order that all constables and sheriff deputies temporarily delay the enforcement of a non-payment of rent eviction (the lockout) if the tenant notified the landlord in writing that they are suffering hardship as a result of the coronavirus. EO 2020-14 is clear that all other types of residential evictions (Immediates, Health and Safety breaches, regular material Non-Compliances situations, and Material Falsification of the application) may continue in the normal fashion. If the landlord disagrees with the constable’s decision, they may apply for an emergency hearing that would require the tenant to provide proof that the tenant qualifies for the pro- tections of the EO 2020-14. As a reminder, despite a misstatement by the Governor during a recent town hall meeting, the Executive Order allows landlords to require proof that the tenant qualifies for an extension of time before the Writ can be executed. 

Arizona Changes, continued… Arizona Supreme Court orders all Maricopa County evictions to be heard telephonically as of March 31, 2020: In Administrative Order 2020-048, all Maricopa County evictions (both the initial appearance and the trial) must be heard telephonically. Many courts had already taken similar steps to help reduce the spread of the coronavirus, but AO 2020-048 clarified that even Immediate evictions and all trials are now re- quired to be conducted telephonically until April 17, 2020. This will require all clients to ensure that their wit- nesses are prepared to testify telephonically and that our firm has all the evidence needed for the trial at least one day in advance so that we can provide a copy to the court and the tenant. You will be provided a phone number to call into the court so please follow those instructions. The virtual courtrooms have numerous par- ties and hearings occurring at the same time, so please be patient and mute your phone until you hear that your case has been called. 

$50 Million in New Rental Assistance: The Department of Housing launched this new funding as of March 30, 2020. This initial $50 million will be paid out of the State Housing Trust Fund. The process to apply has been streamlined at www.azhousing.gov. For renters that do not have internet access, they can call their lo- cal Community Action Agency. For a complete list, contact our office. We have created a working list of all the Arizona agencies and private businesses that can provide rental, utility, and food assistance. We encour- age you to get a copy and provide it to all residents. You may attach it to the five-day non-payment of rent notice or provide it when entering into a partial payment agreement with your resident. 

Extensions of certain licensing requirements: Executive Order 2020-17 mandates that state agencies and boards extend the time frames for licensing and eliminates barriers to online classes. This was a critical issue for the real estate professionals that are required to complete licensing requirements while this pan- demic interferes with their ability to take the necessary classes etc. 

Federal Changes Families First Coronavirus Response Act (FFCR): HR 6201 went into effect on April 2, 2020 and remains in effect until December 31, 2020. The biggest changes that impact owners and real estate professionals are the Emergency Paid Sick Leave and expanded FMLA provisions. In a move rarely seen by Congress, these laws specifically target the small business owner in that it only applies to employers with fewer than 500 employees. The Emergency Paid Leave Act applies to any company regardless of how long that employee has worked there. It provides a list of qualified reasons the employer must provide paid sick leave (all of the reasons listed as COVID-19 related), including caring for a sick family member or a minor child because the schools are closed. Full time employees are eligible for an additional 80 hours of paid sick leave on top of the mandatory paid sick leave currently required by federal law. Part-time employees are entitled to the equivalent of the hours they would have worked during a two-week period. The amount they must be paid is dependent on which qualifying reason the employee invoked. The employer cannot require the employee to first use all other paid leave provided by the employers prior to the Act. The employer can seek reimbursement for the wages paid to the employee through a tax credit applicable to the employer’s portion of Social Security taxes (seek advice from your tax professional). 

Emergency Expansion of FMLA: The FFCR also includes the Emergency Family and Medical Lease Expansion Act which provides a new source of paid leave for eligible employees whose child’s school or place of care has closed due to COVID-19. Usually FMLA applies only to companies who employ 50 or more employees that have worked there for at least 12 months and worked at least 1250 hours during the previous 12 months. This new emergency expansion now applies to all employers who have less than 500 employees that have worked at least 30 days. Under the new law, an eligible employee can take up to 12 weeks (some of which may be unpaid). There is a special way to become exempt if you have fewer than 50 employees if you apply with the Secretary of Labor. A word of caution: This section is included as a courtesy, but our firm doesn’t practice in the area of labor law. If you employ less than 500 employees, you need to be aware of these changes and you are encouraged to seek specific advice from your HR specialist/legal advisor. 

Federal Changes, continued… 

Coronavirus Aid, Relief, and Economic Security Act (CARES Act): President Trump signed the CARES Act into law on March 27, 2020. Among the trillions of dollars addressed in the Act, several portions will critically impact the residential rental industry. We have drafted separate cover sheets for each of those issues so please review each of those for the specifics of each section, but here is a quick summary: 

– Section 4024 Non-Payment Eviction Moratorium: There is now a temporary moratorium on certain eviction filings for 120 days. The types of evictions impacted are only for non-payment of rent and only for new filings so all existing evictions can proceed (although the lockout may be impacted by EO 2020-14 discussed above). Covered properties include any property that is insured, guaranteed, supplemented or assisted in any way by HUD, FHA, Fannie Mae or Freddie Mac, or participate in PRAC 202 or 811, HOOWA, McKinney-Vento, Section 236, accepts Section 8, rural housing assistance program or LIHTC. The Act prohibits the landlord filing a non-payment of rent eviction and charging late fees. If you are subject to the law, it will require you to modify your nonpayment of rent notice. There is also an odd provision that stops landlords from issuing any new non-renewal notices for 120 days. Check your loan documentation if you are unsure if this applies to you. 

– Section 4022 and 4023 Forbearance of residential mortgages. This portion of the Act addresses the forbearance (temporary relief from timely paying) of a single family home and a separate section addressing multifamily properties. The purpose behind these two sections is to provide the owner of rental property that has a federally backed mortgage some temporary relief due to the eviction moratorium discussed above. 

– Section 1102 Paycheck Protection Program: This section is designed to help small business owners (those with less than 500 employees) keep their employees on their payroll through June 30, 2020. It is available not just to traditional small businesses, but also to those who are self-employed, independent contractors, and sole proprietors. In general, the employee can apply for an SBA loan as well as an Emergency EIDL Grant, to help pay the payroll, mortgage interest or rent, utilities, and some other recurring debt. Unlike most SBA loans, the loan is non-recourse (unless the money is not used for the required purpose), does not require a personal guarantee or collateral, and does not require the borrower to prove they have exhausted other loan possibilities. The beauty of this portion of the Act is that the loan can be completely forgiven pursuant to section 1106 as long as all requirements are met. There is also an emergency grant available for businesses that have been in business at least one year that is based upon your credit score rather than tax returns. It is designed to help you immediately cover your payroll, sick leave, mortgage/rent, utilities and other urgent financial needs. 

We recognize that some of the paperwork required to take advantage of some of these programs may be daunting for the small business owner. We are able to help our clients navigate those procedures, prepare all the necessary paperwork, and help you submit it to the proper agency. 

Conclusion and Personal Greetings Please take the time to read and understand this important update. Timely and accurate information about the industry is critical to protect you, your business, and your residents. We understand that these are difficult times and things are changing from day to day. Our first hope and prayer is that each and every one of you stay safe and healthy during this time. You are important to us. Your business is important to us. We will continue to be here to provide you with these updates and advice that is tailored to you and your company’s legal needs. We will endeavor to be prompt in our responses and at the same time continue to give you the most up to date advice when it becomes available. See our contact information below. Remember, we’re all in this together! 

HULL, HOLLIDAY & HOLLIDAY 602-230-0088 holliday@h3landlordlaw.com


“New” roof materials are being observed in the Greater Phoenix Metro.  While not “new” in the sense that they are a new technology, these materials have been around for some time, they are showing up on some new builds and some remodels.  Specifically metal for sloped and rubber for flat roofs are being installed in residential applications primarily because their price points, while high on an absolute basis, are competitive when one looks at a total cost of ownership. 
Both these roof materials have very long lives (and respective warranties when installed by experienced and licensed roofers).  And in the case of standing seam metal roofs, they provide an updated architectural look.  (Most people don’t see flat roofs, unless they are flying a drone, so that benefit is not applicable to the rubber roof application.)
Expect to pay 2X to 3X for these roofs over asphalt type materials or tile type materials, but you can also expect 40-50 year life assuming proper ongoing maintenance.
The downside to these materials is specific durability.  While they hold up well to our intense solar load, a metal roof can dent easily from impacts, primarily tree debris, but also hail damage.  Rubber roofs do much better in this area, but are susceptible to tear damage, especially if there is mechanical equipment on the roof that needs maintenance or replacement.  Extra care must be taken to protect roofs from this type of damage.
While the vast majority of inexpensive roofs are still asphalt materials (either basic shingles or raised profile shingles for sloped roofs and rolled composition for flat roofs), the quality and durability of these roofs have also improved, with the newer architectural shingles (RP) routinely having 25 and 30 year material warranties.  Even polyfoam for flat roofs have improved, primarily due to improved seal coats.  Regular application of seal coats can extend properly installed foam roofs almost indefinitely.
And having said all that, probably the best value, as in balance between first cost, expected longevity, and durability is still a concrete tile roof with an inorganic underlayment.  These can last 30+ years at a reasonable cost and routinely hold up to our infrequent but powerful weather events.
Attic ventilation:
Most attic spaces in Arizona benefit from proper ventilation, both from an energy use standpoint, and also extending the life of roofing materials.  There are some attics that do not need to be ventilated, primarily  based on the location of the insulation material.  Good examples include sloped roofs where the insulation is applied to the underside of the roof deck (i.e. sprayfoam) or any flat roof where the insulation is attached to the underside of the roof deck.  If the insulation is anywhere else, the attic should be ventilated.
A good rule of thumb regarding ventilation rates is 1 SF of free area vent for every 300 SF of attic.  Further, for every SF of vent space, about 50% should be “high” and 50% “low”.  Take a conventional gable roof attic space on an 1800 SF house.  The rule of thumb calculates  6 SF of vent.  Keep in mind that most vents have baffles to keep water out and screens to keep insects and birds out, so the typical vent has a 50% free area ratio, so the 6 SF of vent is actually 12 SF of vent openings.  Next, take the 12 SF and divide it by 2 and you end up with 6 SF of “high” vent and 6 SF of low vent.  One could use a ridge vent or gable vent for high vents and a soffit or deck vent for the low vents.  Knowing the free area of each vent type allows one to calculate how many vents of each type are needed.
As Property Inspectors, we don’t do the calculations, but we make quick assessments to determine if the installed vents are sufficient and report that accordingly.  Of course, this is an oversimplification/rule of thumb…there are many other “rules” that design professionals must use to meet code requirements.  For example, if an attic profile is a long rectangle, there may need to be additional vents required in the center area.  There is also a focus on “short cycling”, where a high vent is next to another high vent and defeats the purpose of the low vent providing air to evacuate the entire attic volume (think of a soffit and gable vent arrangement (good), but then someone adds a turbine vent 5 feet from the gable vent (bad).   In that “bad” case, air enters the gable vent and goes right out the turbine vent (short cycle) and there is insufficient pressure differential to pull air into the soffit vent, resulting in low air flow at the lower portion of the attic, resulting in increasing attic temperatures.
Of course the real problems occur when there should be vents and none are installed, or they are blocked (i.e. by added insulation).  We’ve encountered attics that were 165F on a 105F day, where someone blew in 12″ of insulation, but blocked all the soffit vents!
If you ever have any questions about property inspection topics, don’t hesitate to contact us.  Thanks, Marty  (Martin Lenich, ACI, PE, Chief Inspector at Inspect-It 1st, Greater Phoenix Metro:  602-318-7480 or MartinLenich@InspectIt1st.com

Feel free to call me, everyone knows I answer my phone  602-688-9279. 

Have a GREAT day!


The BINSR is one of the most important but delicate items of the Escrow. I want to spend some time discussing this.  It’s important that if the property is the right property that the Buyer and Seller walk away with a Win-Win situation.  Too often the Agents get in the way of the BINSR. Ijust had a property cancellation and the inspection was not anything that could not have been overcome.  Mostly small items!


When the Buyer has completed their due diligence during the inspection period it is time for the BINSR to be prepared and submitted to the Seller.


Please note that the BINSR is not part of the contract and when this negotiation is completed, there may and probably will be an addendum to the Purchase Contract will be signed. The BINSR is typically not sent to Title or the Ender but the Addendum to the Contract certainly is.


First, it is important to understand that no matter when the BINSR is submitted that the inspection period is now over. This means that the Buyer needs to have all of the due diligence completed.  Remember that his DOES NOT mean appraisals or loan but rather books and records along with physical items. There is a list on the Buyer Advisory and the face page of the residential contract.  


Secondly, when the BINSR is submitted (either Commercial or Residential) the Seller has five days to respond.  IF the Seller does not respond, this means that the Seller will not do anything. Once the Seller responds (unless they agree to everything) the Buyer has five days to either continue to negotiate, accept or cancel the contract with full refund of the Earnest Money.


When submitting the BINSR for multifamily, often we are looking for the Buyer a credit at cose.  One of the important items that our referral partner provides is a SOPC which can help give the Buyer the number to work from.  I cannot stress how this is helpful for two reasons. First, this gives me a number to place in front of the Seller that is a third party.  This also delineated Health and Safety and Immediate needs. The Seller thereby has material knowledge of the Health and Safety and Immediate needs.  IF they will not agree to the number or the repairs and the Escrow cancelled due to this, the Seller and the Listing Agent now have to disclose this knowledge going forward.


A word of caution,do not wait until the very last minute to respond.  Last year a Buyer’s Agent who was self representing himself, waited until 11:59 to send the BINSR to me.  His email failed and he sent it at 12:01 AM. The inspection period was up and his Earnest Money was at risk-clearly.  His 10K was either forfeited or he had to close. He closed. If he had sent this earlier, he could have cancelled and gone on.  


It is important as in any negotiation that the Buyer be reasonable as well. Last year, I had a Buyer that asked for very unreasonable items to be repaired.  Remember that if it is not broken the Buyer cannot ask for replacement, especially on items that according to the inspection would last at least another 5-8 years. Here is a saying that I think about-Pigs get fat and Hogs get slaughtered.  Something to think about.


Also, on all of my transactions, the Title company issues a Critical Dates Letter.  This is important to review and it will give the dates of the end of the inspection period.


I hope that this helps and if you have any questions, remember that I answer my phone!




Have a great day!



I wanted to take a few moments to really explain some of the processes that I use to make Investors successful.

First, I answer my phone.  How important is that?

When a person first connects with me, we have an automated procedure that I use.  I place the person on an MLS search for 2 or more units. This allows them to start becoming familiar with the market.  It is only sent out twice a week and is an opt in program. If you have not opted in, you are missing information. If you need me to send this to you again, let me know.  If you want to be added, let me know.

I use Salesforce as a CRM.  Once the person is in Salesforce, they will get an email from me to explain my background. 

Also, if the person is on LinkedIn not only will they receive an invitation from me to connect but also an invitation to the closed investment group that is updated with market stories in real time once or twice a week.  Another great way to understand the Phoenix Market.

Additibally, remember that I am a member of the Tucson MLS and can (by request only) add you to the Tucson MLS as well.

I keep a massive spreadsheet containing all leads and current clients. This is tracked as to when I have spoken to you and your comments.  It also tracks when and how often the MLS searches are opened. Two of my referral partners Tom and JC) help me with getting these people qualified for a loan.  If the person is just looking that’s great. What about if they are interested in more than 4 units? No problem, but then I can help find the right commercial lender for the task at hand.  

When I find a deal that I think is worth getting serious about, I send out a constant contact.  I do not play favorites, the first Investor that calls me and wants it-gets it!.

When we go to Escrow or Contract, I have an online portal system that we store all executed documents and due diligence and you will be invited to this as well.


Did I mention the website?  I know that you are on this now but have you registered for the back side-more information.  I have spent over $30,000 on this website. You can access it easily from your phone as well.  

How about my book on Amazon?  Just google my name and it comes up!

How about the 10 hours of education on the site?  I paid almost $25,000 to make this a GOOD educational program for the investor.

Don’t forget the classroom workshop on May 2nd.

Below is a bit about the market last week.

According to the Information Market, residential sales in Maricopa County were up 14.8% in January 2020 when compared to January 2019.  That’s 7,922 units vs. 6,898 units. Resales accounted for 6,768 of the sales in January of 2020 compared to 5,954 in January of 2019. Median resale prices were up 10.1% over that period to $285,000.  New build sales rose to 1,154 vs. 944. New median sales prices rose 6.7% to $365,706.

Feel free to call me, I answer my phone and return calls as soon as possible!  602-688-9279!

Hope your day is amazing!


The first quarter of 2020 zooming byand  I am going to share my research and thoughts on the market for the Phoenix area and in particular MultiFamily.

First and foremost one of the questions that I am continually being asked is how long until we see a correction in the Phoenix Market.  Let me be clear-I do not have a crystal ball and will not set specific times or dates. 

Here is what is happening now.  There are over 250 major companies relocating to the Phoenix Market and this means jobs and building growth.  One of the reasons that we see this is really two fold. One, California is almost impossible to build in and the laws that DISCOURAGE growth are rapant. My phone is ringing constantly with California Investors.  I am meeting with several Californians that have given up and moved here. Many are liquidating their assets on the coast and moving their investments here. The second reason is that our State has a VERY friendly legislature for growth and are incentivized to make this happen. What is really interesting is that I am receiving quite a bit of interest from the East Coast as well.

Remember that our cost of living is low as well.


So the next question is what about jobs, tenants and places to live? 

In reference to jobs, our unemployment rate is below that National average and our workforce is robust. Tenants are interesting right for two reasons.  The first is that the amount of rents are keeping up with the wages and rents are on the increase there is no doubt. We had a multi unit property that the tenants needed the rents raised.  The Property Manager raised the rents $200 across the board and not one tenant left! One of my clients in Tucson wanted to rent a small apartment here so he could manage the rehab on one of his properties.  He could not find an apartment or at least one that he felt was affordable for his needs. The second part of the Tenant situation is that the younger tenants (millennials) do not want home ownership, they do not seem to want the responsibility of maintaining their own property.

Places to live are really interesting and probably the main reason that we see NO vacancies to speak of.  

About 10 years ago, Elliot Pollock who is probably the foremost economist on the PHoenix market projected that in 2020 we would need 525,000 more dwellings and that 35% of this would be new multifamily.  I went to a conference two weeks ago on the economy that he was one of the featured speakers. Not only have we not met these numbers but now he believes that we need more units and that he projects that our growth will remain strong for at least another 4 years.

Here is a link for some breaking news that happened yesterday check it out Historically low inventory continues driving home prices higher 

I want to quote and give you directly from the horse’s mouth Elliott Pollack’s last Monday projections. I respect him a great deal and you should go to his website and sign up for his weekly updates.  See below.

Also, remember that I am on the ground and digging deals out.  Call me I want to speak with you and help you understand the market and what is going on.  




January 27, 2020 

The Monday Morning Quarterback 

A quick analysis of important economic data released over the last week

It was a slow week for national economic news. Leading indicators were essentially flat. Monthly existing home sales increased substantially from a year ago in December but were up only modestly for the year (2019 over 2018). And the supply/demand imbalance in the country caused resale prices to increase at four times the overall rate of inflation and more rapidly than wage gains for the December over December measure but were up more modestly for the year as a whole. This is because when interest rates declined during the year it allowed more of the pent up demand for housing to manifest itself. Other than that, it was political. The impeachment trial got underway in the Senate. And according to the Washington Examiner, the death of Mr. Peanut, the Planters Peanut symbol for the last 104 years, overshadowed the first day of impeachment arguments on Twitter. Is the public telling us something? 

On the local level, the latest Arizona, Greater Phoenix, and Greater Tucson employment data shows that the state and its major metro areas are continuing to do well economically. Arizona remained the third most rapidly growing state in 2019 and Greater Phoenix was the third most rapidly growing major employment market in the country in 2019. Thus, the state and Greater Phoenix are going into 2020 with a full head of steam. The same can be said for the single family, apartment, office and industrial real estate markets in Greater Phoenix.

U.S. Snapshot:

  • The Index of Leading Indicators fell modestly in December to 111.2.  This is a 0.3% drop from November’s 111.5 and a 0.1% increase over December 2018 (see chart below).  It is worth noting that leading indicators have modestly declined in four of the last five months. The manufacturing indicators are pointing to continued weakness in the sector.  However, financial conditions and consumers’ outlook for the economy remain positive.
  • Existing home sales grew by 3.6% in December when compared to November. They were up 10.8% over December 2018. For 2019 as a whole new home sales were flat for the year and single family sales were up a modest 0.5%. This indicates a significant rebound in housing the second half of 2019. The declines in mortgage rates helped free up some of the huge pent up demand for housing. The lower mortgage rates help offset the effect of higher prices on affordability as home prices increased by 7.8% December over December and 4.8% when comparing 2019 to 2018.

Arizona Snapshot:

  • Employment figures for both December and full year 2019 came out this week. The numbers show continued solid growth in the state as a whole, Greater Phoenix, and Greater Tucson.
  • For the state as a whole, December employment was up 2.9% from December 2018 or 84,400 jobs.   And for the year as a whole, employment in the state was up 2.6%. While this is somewhat slower than the 2.8% growth in 2018 over 2017, it is still strong. And while the rate of growth in employment has modestly slowed in the second half of the year, the state is entering 2020 on solid footing. Arizona remains the third most rapidly growing state (percentage terms) in the U.S. behind Utah and Nevada.
  • For the year as a whole, employment was up 74,800 jobs. The sectors with the biggest gains in absolute terms were Educational and Health Services with 19,300 jobs, Construction with 16,000 jobs, Trade, Transportation and Utilities with 10,500 jobs and Professional and Business Services with 10,000 jobs.
  • In percentage terms, the employment sector leaders were Construction with 10.1% growth, Manufacturing at 4.4% growth, Educational and Health Services at 4.3% and Natural Resources and Mining at 4.3%.
  • Greater Phoenix employment growth was up 3.2% from December 2018 to December 2019. That’s 68,800 jobs or more than 81.5% of all the jobs created in the state over that period of time. When comparing 2019 with 2018, growth was 2.9% or 61,800 jobs. That’s 82.6% of all the jobs in the state. The 2.9% for 2019 compares to 3.3% in 2018 and 3.0% in 2017. The 2019 number is likely to be revised upward when revisions are released in March. The present numbers paint a bright picture for Greater Phoenix. It is now the third most rapidly growing major market in terms of percentage employment in the country. Only Dallas at just under 3.1% and Orlando at just under 3.6% grew more rapidly in 2019.
  • Greater Tucson grew by 8,800 jobs or 2.3% on a December over December basis.  On a year over year basis, Tucson was up 1.9% or 7,300 jobs. This was the best year for Tucson since 2006.
  • According to CBRE, the Greater Phoenix industrial market continues to do well.  In the 4th quarter of the year, 2.6 million square feet of industrial space was absorbed while 3.3 million square feet was brought on stream.  Thus, vacancy rates increase modestly from 6.1% in the 3rd quarter to 6.3% in the 4th quarter. This is still very low by historical standards.  For 2019 as a whole, 10.7 million square feet was absorbed while 9.1 million square feet was delivered. Vacancy rates for the year as a whole declined from 6.5% to 6.3%.  Rental rates were up almost 8%.
  • According to CBRE, the Greater Phoenix office market also did well in 2019.  In the 4th quarter, absorption of office space was 830,401 square feet while change in inventory was 558,731 square feet.  Thus, vacancy rates dropped from 14.4% in the 3rd quarter to 14.1% in the 4th quarter. For 2019 as a whole, 3.2 million square feet was absorbed 2.8 million square feet was delivered.


About EDPCo

Elliott D. Pollack & Company (EDPCo) offers a broad range of economic and real estate consulting services backed by one of the most comprehensive databases found in the nation. This information makes it possible for the firm to conduct economic forecasting, develop economic impact studies and prepare demographic analyses and forecasts. Econometric modeling and economic development analysis and planning are also part of our capabilities. EDPCo staff includes professionals with backgrounds in economics, urban planning, financial analysis, real estate development and government. These professionals serve a broad client base of both public and private sector entities that range from school districts and utility companies to law firms and real estate developers.  


I want t post an article from my referral partner Rick Wittstock of IPX 1031.  Rick has been a valued REferral Partner of mu firm.

Since so many Investors are looking towards 1031 Tax Deferred Exchagnes this article cam out at the right time.  Please go to our Referral Partner Page to contact or learn more about Rick!


2019 was another record year for 1031 Exchanges. What’s in store for 2020?

Commercial real estate is predicted to have a very good 2020, supported by resilient economic activity, low interest rates and the attractiveness of real estate investment.

With an election year, government leaders will push to keep economic activity strong. A recession or major economic disruption is unlikely. However tax reform continues to be an issue that could drive transactional activity. Republicans want technical corrections. Many of the Democratic Presidential candidates are promoting substantive changes. Elimination of FIRPTA to encourage foreign investment is a bipartisan issue that could spur real estate transactions. Also, proposals such as mark to market, a wealth tax, increases in the tax rates, and increase or complete elimination of capital gains all could impact investor behavior. An increase in ordinary income tax or capital gains tax rates would make like-kind exchanges more valuable to taxpayers, but could also make 1031 a larger potential target for tax revenue seekers.

With expected growth in investment and commercial real estate transactions, we are expecting another strong year for 1031 tax deferred exchange transactional activity.


A 1031 Exchange transaction requires planning, expertise and support. Here’s a checklist outlining key steps in your exchange.

  1. Choose your 1031 Qualified Intermediary (QI)
  2. Consult with your tax professionals
  3. Include Cooperation Clause language in your purchase and sale agreement
  4. QI prepares your exchange documents
  5. Start searching for Replacement Property
  6. Sign all documents QI prepares
  7. Sell your Relinquished Property
  8. Identify your Replacement Property
  9. Enter into contract on Replacement Property
  10. Contact QI once Replacement Property escrow is opened
  11. Close on Replacement Property
  12. QI transfers funds to complete your purchase
  13. Your exchange is complete

2017 tax reform indexed the Long-Term Capital Gain rate breakpoints (whether a 15% or 20% rate) to inflation. The actual rates didn’t change for 2020, but the income brackets did adjust slightly. The breakpoints for 2020 are as follows: married filing jointly – $496,601+ and single filers – $441,451+. The capital gains brackets are based on “Taxable Income” whereas the Net Investment Income Tax thresholds are based on “Adjusted Gross Income”. For more information


If your transaction closed at the end of 2019 and you are unable to find new property to identify or purchase the property that you have identified, you may still be able to defer paying taxes on your capital gains until 2021. Since you will receive your 1031 funds back in 2020, in certain circumstances, since you did not have control/possession of your funds until 2020, the IRS may allow you to pay taxes on your 2020 tax return, which are due in 2021. This is in accordance with IRC Section 453(d) and requires your accountant to file specific tax forms. Ask your accountant if you are eligible to take advantage of this “mini” tax deferral.

I work with a number of Investors.  All different levels. Why do I say this?


I receive a number of phone calls from “beginning” investors.  My very personal philosophy is that we all started somewhere. I receive and do ESCROWS with cross agents that have never sold multifamily as well.  I still believe that we all started somewhere.

When I started in the business 24 years ago; there were a number of people that helped me along the way.  I am always thankful for this. Anyone that knows me knows that I feel that it is my personal responsibility to give back.  I love educating not only my Investors but also other agents. I am currently in two escrows that I am helping the other agent understand what they need for their clients.

This does not mean that I do not represent my client correctly, but what kind of an Broker would I be for my clients if an Escrow would fall apart simply because the cross agent needed some basic guidance.  I guess that it is the Mom or now also the Grandmother in me!

This year promises to be outstanding for investors.  Every city in the Phoenix market is exploding with growth.  The companies that are relocating from California (I wonder why?). The people that are moving here due to the job growth.  The housing market is not keeping up. All of these factors not only are indicative of our market but also the growth in the rental prices and the lack of good units for tenants.  EVERYONE of these factors lead to a rich investment environment.

I am dedicated this year to be even more responsive and more on top of the growth of the Phoenix Market.

As one of my Investors, here is your job-call me and lets get you on your path.  READ the emails that I send. GET educated on our market and also how to evaluate the properties quickly and efficiently! 

I will be attending an in depth market update in about 10 days.  You really want to watch for this update from me as it is a GREAT yearly event that I attend so that I can be as effective for you as possible.

Remember that I answer by phone and look forward to seeing your success.  Your success is my success.

Have a GREAT day!

Linda  602-688-9279

This is the time of year that I set my goals and what I want to accomplish by quarters.  Anyone that knows me well knows that I take this time to reset the batteries. I have done this and have great plans and some of them include my investors!

First, I am attending in the middle of January a market update that will include 4 different leading economists for the Phoenix Area.  I will be sending you an in depth market update towards the latter part ofJanuary-so STAY TUNED.

I have given careful thought to the next.  First, I am offering the videos of the Legacy Seminar at a discount this weekend.  I really want you to go through this. I am also offering my book (which is a great add on for $50.00 this is a discount of almost $50.00.  You will need to send me a check for $50.00 and I will mail it to you-no matter where you live.

Here is the BIG news.  In November, I spent three days developing a trailing twelve spreadsheet and it is done.  I will be giving an advanced seminar locally (yes you can fly in) on how to do a trailing 12. This will be given on Saturday Feb. 1, 2020.  I will also be going over how to prepare the rent roll and the importance of this. If you own property or even sell this type of property-you need this. This will be limited to 25 people. Cost will be $500.00 per person-call me for couples discount.

This may sound like a sales pitch-it is not.

I wanted to keep everyone up to date on what is happening.  Education is the key to good and smart investing! Please don’t pay thousands of dollars to the so called real estate gurus! Use this money for your down payments.

I will also be introducing some new vendors after the first of the year so this should help round out your real estate team and give you more choices.

So as the bumper sticker says “sit down, hang on or be left behind and remember that I answer my phone!  602-688-9279.

HAPPY NEW YEAR and make it a good one!