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The GREAT Real Estate Slowdown Continues. What Does it Mean? Find the Motivated Seller is EASIER

Video Closed Captioning:

good morning good afternoon good evening

folks michael zuber one rental head time

back with his friday guest and friend

stephen dao how you doing sir fantastic

in yourself brother i’m doing great man

so real quick let’s get that marketing

thing out of the way even though this is

going to be more of a business

discussion but let’s get that out of the

way just in case we’re not in trouble

yes sir appreciate you again and uh

although i work happily for velocity

mortgage capital all the ideas and

topics discussed on this channel are

that of my own and let’s get it going

yeah so what i want to talk about here

is what i have been talking about for a

while now and it’s actually happening

at different rates at different times

and in different cities the real estate

slowdown is happening so what’s

happening now is inventory is building

uh individuals who sellers who had

unrealistic expectations are getting

slapped down the whole 20 offers in 20

minutes things is behind us right

december is not april and i believe the

real estate slowdown will continue i

think rates are going higher you know

just all of these things so

i have been through cycles like this

before many of the audience hasn’t you

have been through cycles like this

before so what i want to tell people

about the cycle of real estate investing

in a slowdown is

it is going to get fun

what i mean by that is if you do the

work and you do focus and daily

discipline and you have your buy box

your buy box is going to start to have

more inventory it is going to start to

change more frequently and please

write

better offers in a changing market it is

time to do

great deals yes um so that’s the first

thing i want to say about you’ve been

through a couple of cycles

what do you remember about real estate

slowdowns well again

that your perspective is correct if

you’re you know

if you’re noticing the signs as far as

the precipice of a slowdown this is the

time to start making those aggressive

because you’re going to see panic

disagree with certain sellers and then

actually the time is right where you can

really get some really good you know

possible deals because they want to you

know some people want to time the market

you know in the case of oh i want to

sell perfect never right but oh if they

see the bottom part dropping out they’re

going to start to kind of make some

really good deals where just to make it

happen just to be able to

get ahead of the of this thing but yeah

yeah

i don’t know how to say this without

sounding um

mean

uh but the best the best time the best

way to make a deal in real estate is to

find a motivated seller right

i call them don’t wanters right they

don’t want it they’ve had enough

right unfortunately in april of this

year was impossible to find because you

list a property at retail the junk sells

at 20 grand over retail

i have no idea what the seller’s

motivation is but as the slowdown

continues as days on market goes from 12

to 24 to 36 as you have price drops you

can send out these little teaser offers

and you can find out who’s motivated

who’s not now keep in mind

i don’t know what the percentage will be

but maybe 90

aren’t motivated right that’s good

information you’re looking for the 10

shoot maybe 95 aren’t motivated now you

can find five percent

just this week or just

yesterday what is today friday i think

it was wednesday evening i sent out

three offers

fishing for motivated sellers so number

one

i tried to buy a property for 20 or 30k

under list the sellers the seller was

um

basically said i’m not taking anything

except list the problem is they’re 20 or

30k over

okay so what i told them was okay great

i will give you your list price but i

want mortgage payments

uh with zero percent interest

essentially is what i said so like again

if you want your price you have to have

my terms so that offer went out we’re

hoping to hear back today again i’ve

done deals like this i have bought

property stephen for 20 or 30 000 more

than they’re worth

right because i got my terms number two

my agent is doing an awesome job in

fresno and they scour the mls and they

saw a couple of this thing that said

must close by 12 30 right yep guess what

i did i’m like well cool because there’s

very few people that can write a check

or work with a non-qm lender to close

i’m gonna write an offer on that and

guess what not at least

um and then another one a property had

been flagged by the city basically have

to tear down the garage well that’s a

headache not a lot of people want to

deal with permitting and all of those

things so i wrote an offer on that so

again we’ll see where these go they

could go nowhere but i am fishing

for that motivated seller who wants to

operate on my time i don’t need to do a

deal but i will do a great deal but

that’s where i think the the risks get

richer because they don’t have to make

moves they make moves when it’s a great

or right move that’s when you like you

know jump you know probably to the next

level and that’s totally crawl to the

next level because that’s when you make

a real move you know yeah money yeah it

takes money to make money in this sense

but when you don’t have to and you’re

making just the best move possible why

would that be a bad thing so no i i like

again you don’t have to make it sound

mean but it’s just business it’s just

sadly business and if you’re just you

know and it’s you got to do what’s best

for you so yeah and i want to tell

people the reason that steven’s on my

friday shows for non-qm lenders some of

you are going to find portfolios

that you will not be able to get the

deal done via a bank too many houses

different locations you could do

portfolio loans you could do blanket

loans you guys call them lots of

different things some of you want to do

30-year money on apartments because you

are frightened to death like i am where

rates will be in 2025. stephen brings

that to you you guys have no idea the

power and flexibility you have within at

least the option to consider

a non-qm lender so right all of that’s

correct right oh 100 i mean at the very

least have a conversation show you know

what options or plan b you might have

because in some cases you know your

intentions or your hopes of getting

approved with conventional financing

sometimes they’ll always follow through

so by all means go that route first try

that if you get denied somehow there’s

other possible alternatives with maybe

like bank standard programs things of

that nature just to be fair as far as

the other non-human lenders and then if

all else fails after that i’m typically

going to be the next best cost effective

option just because of what i’ve been

able to build from networking from one

rental time as far as you know being a

highly productive rep as well i’ve got a

little system that it really just plugs

in place with your audience your your

college subscribers so i think that’s

why we’re able to really help a lot of

people because i’m showing them not only

the path release resistance but a lot of

times the money savings as well because

of the volume i’m you know willing to

take a little bit of it

i don’t have to do the spiel on your

channel but everybody everybody knows

they see the value yeah what i would

tell you to do folks if you’re looking

at doing these kind of deals like i am

and um

you want to have a non-qm lender in your

in

as an option i would definitely reach

out to stephen down now plant the flag

get get a little bit of the file or

share what you’re doing just to make

sure it’s a yes answer don’t go look for

the deal then bring it to stephen have

steven tell you sorry we don’t do that

for some reason right like construction

or owner ock or something that you

should have known

reach out to stephen dowd today if you

are being aggressive like me

just to know what the options are so

stephen how do you want them to do that

email please uh today seems a little bit

lighter i think for whatever reason

we’re past now the you know thanksgiving

we’re heading into it i think towards

the end of the month it’s going to be

really crazy because we’re in a shorter

month with christmas new year’s and

everything else but for right now please

reach out to me i’m working this weekend

uh i don’t have i don’t have to be

moving around

trying not to you know hawaii for

weddings and stuff like that so i’m

finally planning uh but email s dow d a

o velocity mortgage spelled out out.com

please leave in the subject line the

acronym uh

o-r-a-a-t which stands for one rental at

a time so you make it past the firewall

and then please leave the best phone

number right to reach you back at and

maybe just a brief you know breakdown of

what you’re looking for refi purchase

you know what property tied your mid

fico score your desired terms and then

from there i can call and you can fill

in the blanks but otherwise it might

make it easier and faster versus you

giving me the full backstory up front

and then me asking for those specific

details anyway so if i have the details

up front then i’ll know where to kind of

ask specific questions and speed it up

because 24 hours is just running out on

me i mean really 28 hours a day mike

billionaire i swear i would be

you know you don’t have 28 hours oh man

yeah i don’t have 28 hours so that’s

funny

that’s okay all right folks so again one

rental and time fans if you’re looking

to be aggressive like i am he’s a part

of my i let him know what i’m trying to

do all the times like i got you i got

you because i’ve had the upfront

conversation so stephen thank you for

all you do we’re gonna get one of these

so uh look for some more business no no

i’m looking forward to it bro thank you

you got it

 

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