Uncovering Real Estate Investor Secrets In Michigan – Ali Fayz
On this episode of The Closing Table, we sat down with Ali Fayz!
To watch the full episode, check it out on YouTube below. In the meantime, here’s a summary of the conversation…
Here’s what you missed from Ali Fayz…
The conversation began with a this or that icebreaker on starter homes, curb appeal, and more. Ali Fayz reveals more about himself beyond his role in real estate. He describes himself as easygoing and someone who loves spending time outdoors, engaging in activities such as fishing, hunting, and hiking. Additionally, he emphasizes the importance of spending quality time with his family and friends, especially after recently getting married. Ali’s dedication to an active lifestyle is evident through his daily workout routine, which helps set a positive tone for his endeavors.
Geographically, Ali primarily serves the southeast Michigan region, with his office located in Dearborn Heights, where he also grew up. Although the majority of his services cater to this area, he has expanded his reach to include other locations such as Livonia, Novi, Canton, and more. In some cases, he even ventures into northern areas to accommodate his clients’ needs. However, Ali ensures that he only takes on listings where he can provide true value, avoiding situations where the distance would hinder the efficiency of the process. He prioritizes dedicating the necessary time and energy to his clients.
Economically, Ali highlights the thriving culture in the Dearborn area. Over the past five years, the demand and pricing in the region have steadily increased, resulting in a shortage of available inventory nationwide. Specifically, Dearborn Heights has experienced significant changes, with homes that used to remain on the market for 2-3 weeks now selling almost immediately. Furthermore, the price per square foot has seen a substantial rise, with over a third of the active listings in Dearborn Heights currently priced above $200 per square foot, a previously unheard-of figure. This surge in demand has made it more challenging for first-time homebuyers, although investors recognize the area’s potential for appreciating property values.
Owning a home comes with various additional expenses that need to be considered, such as property taxes, insurance, and maintenance costs. When assisting first-time home buyers, Ali ensures they set a realistic budget and avoid the temptation to overspend. He advises buyers not to spend more than 30% of their gross income monthly, as banks take this into account along with other financial documents. However, Ali emphasizes that there are often overlooked expenses associated with homeownership, such as furnishing the home, purchasing groceries, paying for utilities and gas, and maintaining appliances. These factors must be considered, especially when it comes to repairs and maintenance. Ali advises buyers to have a safety net for their home, as unexpected expenses can arise and impact their investment. Taking care of the home and having funds set aside for emergencies are crucial aspects of responsible homeownership.
Buying a first home is an exciting but overwhelming experience. Ali goes beyond the transactional aspects of the process and provides additional support and resources to help first-time home buyers smoothly transition into their new homes and communities. Prior to beginning the search, Ali sits down with buyers to get to know them and assess their knowledge of real estate. He understands the value of emotional connection during property showings, as it is important for buyers to envision themselves living in the homes they are considering. Ali advises his clients to see at least three different homes in various styles to determine which one suits them best. On the backend, Ali takes the initiative to familiarize himself with service providers in moving, painting, and other related areas so he can confidently recommend them to his clients. He guides his clients throughout the entire process, even if it doesn’t result in a sale. As long as he has been a valuable asset in serving his clients, he finds peace in knowing he has provided excellent service.
To help sellers take advantage of this decrease in inventory and increase their chances of selling quickly and at a favorable price, Ali implements effective strategies. He emphasizes the importance of getting maximum exposure for the property to attract potential buyers. Despite the shortage in inventory, this scarcity can actually draw more attention to available properties. Ali utilizes various marketing methods such as email marketing, social media marketing, and open houses to ensure that the home receives significant visibility. His goal is to bring as many interested parties as possible through the doors of the property.
Pricing is another critical aspect when it comes to selling in a low-inventory market. Although there may be an opportunity to raise prices due to the scarcity of homes, Ali cautions against overpricing. He explains that overpriced properties tend to linger on the market for 2-3 weeks. Instead, he advises sellers to work closely with realtors to determine the right price. Setting the price strategically creates a competitive environment, encouraging potential buyers to make competitive offers and potentially overbid, leading to a successful sale.
Kevin then asked Ali how he assists potential real estate investors in identifying properties with high potential for long-term wealth accumulation. He understands that each investor has unique goals, whether it’s fix and flip, long-term appreciation, wholesaling, or other investment strategies. When working with investors, Ali begins by sitting down with them to establish their criteria, budget, and ultimate objectives. This initial discussion allows him to gain a thorough understanding of their specific needs and preferences.
Additionally, Ali provides investors with detailed investment breakdowns. These breakdowns offer comprehensive information about the costs associated with the investment and the potential returns. By providing investors with this valuable data, Ali enables them to make informed decisions based on their individual financial goals. Furthermore, Ali recognizes that different investors may require different marketing approaches based on their specific criteria. He tailors his marketing strategies to suit the unique requirements of each investor, ensuring that the properties they are considering receive maximum exposure and attract potential buyers or tenants, depending on their investment strategy.
The conversation wraps up with Ali talking about his aspirations if he was given unlimited resources and time. Ali reveals that his ultimate goal is to venture into real estate development. He has already taken steps towards this ambition, acquiring the necessary licenses and knowledge in the field. With unlimited resources at his disposal, Ali envisions himself working on projects related to industrial development. He emphasizes the increasing demand for industrial space, particularly in the commercial sector. As the landscape of office spaces shifts, with many companies opting for alternative setups, there is a significant rise in the construction of large-scale facilities, such as those seen in the operations of companies like Amazon. Ali recognizes this trend and sees it as an opportunity to contribute to the industrial development market.
Check out Ali Fayz:
Facebook: https://www.facebook.com/profile.php?id=100006724038526
Facebook Business Page: https://www.facebook.com/AliFayzRealty
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