Distressed inventory is going to dry up in some markets thoughts?

Question

I get daily hot sheets from numerous states were our teams bid at Trustee sales or Sheriff sales.

Today the one I get in Vegas EVERY sale is postponed.

of course this is going nationwide so all that inventory is going to get bottled up instead of hitting the market.

Although foreclosures are way down .. still takes a lot of inventory off the market.. keeps listings from OREO brokers etc etc.

And I suspect those in the NPN business's are going to have things pile up to

Jay Hinrichs · Answer

OK then I have to check we have a foreclosure going that started in December on a non owner occ .. I wonder if those are stayed.. have to ask my attorney.. its Oregon..

Jay Hinrichs · Answer

sell your note to someone ??

Jay Hinrichs · Answer

One camp thinks there is going to be a flood of distressed cheap deals.

but if you stop the foreclosures that cuts down on it a bunch.. of course there are always panic sellers.

or those that have liquidity issues and need to sell for one reason or another.  that's in all market conditions.

Nicole Heasley Beitenman · Answer

I imagine it's like a dam. Yes, there's a temporary halt, but when that halt is lifted, you're going to have a lot of folk unable to hold onto their homes due to lost wages.

Ross Denman · Answer

So... I've talked to a few people in my market, Indianapolis... I was also taken back by an interview with Robet Kiayasaki regarding the upcoming depression... and that was before Covid.

We all know that money is fake. That's why we are real estate investors. Real assets vs derivatives. Here's my take the investing market post-corona.

• Subject to contracts for failing BRRRR investors: There have been thousands of investors building BRRRR portfolios over the last few years. Most of these are highly levered and will topple with just a few months of missed rent payments. Many of these investors may be faced whether to carry their mortgage out-of-pocket, indefinitely, this summer if the rents stop. This will create a motivated seller market with subject-to hybrid strategies probably dominating the scene. We may see new marketplaces open to sell non-traditional contracts and derivatives. 
• Bailout Money: Keep an eye out for grant opportunities. The federal government will be strategically deploying financial aid to districts that need it most. Engage the local municipal and state governments who are seeking and redistributing these grants. This creates opportunities for thriving neighborhoods while taking on bigger projects with hedged risk.
• Online Auctions: We were planning on going to the county sheriff sales in our areas, but the auctions have all been canceled. I expect that this will accelerate the shift to online auctions. This will make these auctions more competitive and may impact market prices as the auctions become more competitive. This will likely accelerate the foreclosure cycle so we shouldn't see bottle-necked inventory for years like last time.
• Note Investing: Depending on how the contracts/notes/derivatives are structured and the inventory and asset mix of the banking institutions... we will probably see an influx of note investing opportunities. 
• Creative Finance/Owner Financing: I've spoken with some out of country investors who were considering reentering the US market (pre-corona) from a seller finance position. This is a more passive position and decent returns with less headaches than owning rental properties. Obviously, this also ties in to note investing as well.
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Chad U. · Answer

It's state by state, and even county by county.  But as far as I'm aware does not matter if NOO or not.

Chad U. · Answer

It's not just one, but several.  However, heck no, riding this out until foreclosure stays are lifted.

Chad U. · Answer

Yes, this really bites us NPN investors in the @ss!  I had several foreclosures which were getting within the 10 yard line that were put on moratorium.  The most frustrating part are a couple have been contentious borrowers who have been riding the free gravy train for years and dragging these out with stall tactics.  Now they get to legally stay in their homes for an indefinite period of time, and there's nothing that can be done about it!

Breynan Hammons · Answer

@Jay Hinrichs foreclosures may be a while but if this goes on for a while I think liquidity will be the issue for most.

As Warren Buffet said: “Be fearful when others are greedy and be greedy only when others are fearful”.

Breynan Hammons · Answer

@Jay Hinrichs yep things are going to get interesting.

Distressed inventory is going to dry up in some markets thoughts?

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