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