Investors it is TIME TO WRITE ONLY GREAT OFFERS. Buyers are Backing Away. Go Find Motivated Sellers!

Closed Captioning:

good morning good afternoon good evening

folks michael zuber one rental at a time

back with the boys from convoy how you

doing dustin and jonathan

good good hey something you shared with

me offline that i want to get recorded

it because it

it makes me feel good it actually makes

me feel like my daily efforts are paying

off

is that more and more investors are

coming to you

in actually getting great deals right

you were seeing these deals you were

putting people in lending programs

whether it’s a 40-year mortgage or a 90

ltv or whatever it is

and they are buying properties we are

not just you know wasting time people

are getting better and better deals

there uh what percentage would you say

are purchases these days for example

we actually have let me just pull up the

numbers right now so awesome in our we

had a little board meeting yesterday but

in our pipeline right now

we

have 86 of our pipeline

is

purchases and 76 of that 86

are non-qm purchases utilizing dscr

loans bank statement loans so those are

always going to be for

investors

so this is what i want people to hear

from this

and i’ve been telling people for months

now this is coming the real estate

slowdown is real

demand destruction is happening and that

what that translate in what um

dustin just shared with us is owner ock

purchases are falling off a cliff

but deals are still getting done there

are motivated sellers out there that

want out

they’ve been impossible to find for two

years

they are going to become less and less

and less impossible to find and you are

going to get great deals people will get

good enough deals where they could do

the 90

uh loan uh because again that has high

hurdle rates it’s okay it should be a

great deal uh people can do 80 10 10 or

50 40 10s or whatever makes sense so i’m

ecstatic that investors are doing deals

i expect and i tell my students

every day now almost every day only

write great offers

if the seller says no who cares write

another one write another one write

another one so uh what else are you

seeing in the lending programs in your

pipeline uh well i mean you know

to your point about owner-occupied homes

kind of falling off obviously i you know

we do we spend a lot of time going

around our city sitting at open houses

and kind of seeing the foot traffic um

and even on the single-family residences

that are for first-time homebuyers you

know that’s how they’re marketed yeah

there’s a lot of investors that roll

through and say i just

i want to buy this thing yeah

it’s just

one rental at a time works jonathan come

on

it’s it’s true i mean they’re like you

know they’re they’re very experienced

investors but because you know the the

the volume of like two to four units is

not like as high right now you know

single families that are marketed as

first-time home buyers i mean you can

make it a first-time home buyer rental

and just

rent it out so there’s a lot of

investors actually looking at this in

this area we’ve seen kind of an uptick

in that as well and they’re getting

great deals on it yeah i would i i want

to second that i mean people ask me what

i’m doing today because frankly i see a

lot of pain in commercial markets right

there’s a lot of people that got in with

low cap rates bad assumptions bridge

debt just

i frankly the toxic nature of the debt

structure of some commercial properties

is going to blow up

but what does that mean i’m doing today

well that means i’m buying as much

residential so i could 10 31 you know in

a year two or three because there will

be a blow up the debt structures on some

of these deals uh by syndicators is is

almost criminal uh but yeah i hope i

hope one rental at a time and people are

buying these starter homes and renting

them out there’s i actually think the

affordable rental

is going the way of the dodo bird

because of what happened with the

eviction moratorium and things of that

nature i think a lot of people are

kicking tenants out cleaning it up and

selling it because they want to cash out

they don’t want the headache so

i think if you can get an affordable

rental and be that answer for someone

it’s it’s a really good thing so i’m

encouraged by that yeah absolutely and

then also i mean um with

the we’re seeing a lot more like you

said a lot more rent or investment

investors buy properties that are even

with the higher rates that cash flow um

they may not be at least they might be a

little below list exactly only write

great deals people don’t pay lists

nobody’s paying lists today

they’re cash flowing right and it really

just works out especially you know with

the ability to use market rents instead

of you know

the current rents that are actually

there if tenants are leaving we’re going

to be able to use the market rents to

qualify the loan the numbers work out

better because rents have to go up i

mean it’s just you know they have to

they’ve been low for so long yeah

exactly yeah so what i mean again i’m

excited by what we’re doing here i think

i think the market is coming to one

rental at a time students followers

i think non-qm is going to be the answer

because again i think i think the

dominoes are falling

fannie mae fhfa

all these folks they are going to

increasingly be owner occupant good

investor bad what does that mean

overlays higher rates conditions all of

that and frankly the interest rate

difference i see when i get quotes from

non-current lenders today

it’s marginal and oh by the way the

speed

so much better the headaches so much

lower

um so i’m i’m just ecstatic i i would

expect your pipeline to go even more

investor heavy uh i think the next 18

months or so

yeah absolutely i mean we’re just uh

i mean

we’ve also seen you know the amount of

offers now at getting accepted like you

pointed on uh you know below asking or

listing i think there’s a little bit of

a uh a seller’s remorse or kind of fomo

going on because exactly

three six months ago and now they’re

just eager to get out and um you know

i want to hit that that’s exactly what i

want my students my followers to fish

for i want to say what dustin just said

right a seller comes out with what i

call wish pricing let’s just put some

numbers on it it’s 250 in a 200 market

the real estate agent sucks or the owner

is is consistent you listed at 250.

nothing happens for two weeks nobody

comes through crickets that owner um

will have a choice at some point they

would either a

lower it to 200 or probably at that

point because it has stink on it 195

or they’re going to take it off the

market

some sellers if they don’t get the 250

they’re not real sellers right that’s

called wish pricing

they’re gone they’re not real sellers

but at some point sellers mentally i see

it all the time they mentally check out

they’re sitting on a hundred grand in

equity they spent the 40 grand on a once

in a lifetime vacation they want out

they will accept anything that is why i

have changed my strategy for the last

two years

i was it was speed

i wanted to be the first one in i was

writing offers on listings that were out

for five six seven minutes

now i don’t even look if it’s not on the

market for two weeks and soon to be 30

days i don’t even bother you have to

change with the market and again if you

are not writing great offers today

you’re not paying attention my students

are writing great offers and only

writing great offers because they do the

work they know average and we are

willing to write 20 offers to get that

one most of my students only want to do

one deal a year

make it a great deal

yeah and allow us to help you do that

right especially with market right i

mean um allow us to help you write great

offers um because it innovates about the

numbers and there’s not going to be

someone that’s going to be able to

clarify the numbers as well as we are on

the lending side because we’re seeing

yeah if you’re in my if you’re my one of

my followers programs you know these

guys

send them what you’re doing reach out

have a conversation right you’re already

fishing and writing great offers get the

lending figure out where you want to go

which program makes sense for you and

what you’re doing so

how do you want them to reach out

uh feel free to email private client at

convoyhomeloans.com or go to our website

and fill out our online web form

and you can and one of us will reach out

yep and put one rental at a time in the

form so it’s either dustin or jonathan

uh any closing thoughts as we wrap up

episode three

i i i’m good

all right guys again uh i am ecstatic by

what’s coming i’m so happy to have non

qm lender as part of the one rental at a

time family uh reach out have a

conversation see what’s what thanks guys

thank you

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