What I’m hearing from investors right now
Real Estate Agent · Phoenix · Member since 2026 · 5 posts · 5 votes
What I’m hearing from investors right now
Most Popular Reply
Jason WrayPro Member
Banker · Nationwide · Member since 2020 · 2k+ posts · 1k+ votesJacari,
What I have done to help eliminate the majority of the "what if's" is teamed up with several "Seasoned Real Estate Agents and Brokers" through out the US to offer the investor a "One Stop Shop". Anyone can do this it involves getting more involved in the entire REI process from start to finish. In most cases have the inventory or off market properties already ran through software and market specs.
What we found out is by finding the inventory in advance even knowing the offmarket deals I utilize my Agents, GC's and even PM's to run a full cash flow/ARV analysis. This comes with a breakdown of current home - market value based on now and 90 days numbers as is, then run an ARV report and generate a "Rent ready" or Max ARV approach.
It offers the buyers the ability to see REI in all 50 states and run the current rents, proposed rents based on LTR, STR, MTR or even Co-living. Renovation increases rents and curb appeal and if you focus on value add its hard to not come out on the positive for the main goal 6-12 month true BRRR to pull cash out and utilize equity to buy more REI.
You have to hold hands and really push the "Narrative" of maximizing funds for building the clients REI/Cash flow/ARV not just cosmetic repairs which offers zero value. Appraisers do not care about cosmetic, or lipstick on a pig! They want to see added sqft, sometimes converting a garage into a bed/bath, adding in an ADU, Carriage Home or someting that now transitions it into an income generating property beyond the current sqft or unit(s).
There are hundreds of thousands of deals out there each one is different and in multiple states. Networking with a strong team eliminates the confusion and as a rule I never put people into a REI that has zero ARV unless its a high cash flow. The REI game is a lot easier when the customer/buyer can actually BRRR the property in 6-12 months unless they have a ton of liquid reserves and do not need to pull cash out.
In this market coming up in the next 6 months you will see mortgage rates drop and home prices continue to rebound. Problem is most investors are waiting or kicking tires because they are not fully educated on the current market. When the numbers are shown to them broken down from a fool proof perspective it tends to help them put in confident offers!
4 Replies
- 4moJason WrayPro MemberBanker · Nationwide · Member since 2020 · 2k+ posts · 1k+ votes
Jacari,
What I have done to help eliminate the majority of the "what if's" is teamed up with several "Seasoned Real Estate Agents and Brokers" through out the US to offer the investor a "One Stop Shop". Anyone can do this it involves getting more involved in the entire REI process from start to finish. In most cases have the inventory or off market properties already ran through software and market specs.
What we found out is by finding the inventory in advance even knowing the offmarket deals I utilize my Agents, GC's and even PM's to run a full cash flow/ARV analysis. This comes with a breakdown of current home - market value based on now and 90 days numbers as is, then run an ARV report and generate a "Rent ready" or Max ARV approach.
It offers the buyers the ability to see REI in all 50 states and run the current rents, proposed rents based on LTR, STR, MTR or even Co-living. Renovation increases rents and curb appeal and if you focus on value add its hard to not come out on the positive for the main goal 6-12 month true BRRR to pull cash out and utilize equity to buy more REI.
You have to hold hands and really push the "Narrative" of maximizing funds for building the clients REI/Cash flow/ARV not just cosmetic repairs which offers zero value. Appraisers do not care about cosmetic, or lipstick on a pig! They want to see added sqft, sometimes converting a garage into a bed/bath, adding in an ADU, Carriage Home or someting that now transitions it into an income generating property beyond the current sqft or unit(s).
There are hundreds of thousands of deals out there each one is different and in multiple states. Networking with a strong team eliminates the confusion and as a rule I never put people into a REI that has zero ARV unless its a high cash flow. The REI game is a lot easier when the customer/buyer can actually BRRR the property in 6-12 months unless they have a ton of liquid reserves and do not need to pull cash out.
In this market coming up in the next 6 months you will see mortgage rates drop and home prices continue to rebound. Problem is most investors are waiting or kicking tires because they are not fully educated on the current market. When the numbers are shown to them broken down from a fool proof perspective it tends to help them put in confident offers!
- 4moElyse RasmussenBusiness MemberReal Estate Investor · Clarksville, TN · Member since 2017 · 5 posts · 2 votes
Love this and couldn’t agree more! I’m a seasoned real estate agent/ investor and would love to be part of your “one stop shop” in middle TN. Let’s connect!
Elyse L Rasmussen, The McCormick Group RE517 Reviews - Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes4mo
I think that last point is the biggest one. A lot of deals still “work” on paper, but the margin for error feels much smaller right now than it did a few years ago.
From what I’m seeing in NYC and Long Island, investors are definitely underwriting more conservatively. Longer hold times, higher carrying costs, renovation overruns, softer resale numbers, all of that is getting baked into the analysis now.
The investors who seem to be staying active are the ones who are stress testing every deal before they buy it. Like you said, they’re not just asking if it’s a good deal today. They’re asking if it’s still a good deal if rates stay higher longer or if the exit takes an extra 3-6 months.
I also think experience level plays a role. A newer investor may be better off sticking to cleaner cosmetic projects right now because heavy rehabs can get expensive fast if timelines slip or unexpected issues come up. More experienced operators with strong contractor relationships and systems in place can still make bigger projects work if the spread is there.
At the end of the day, I think disciplined buying matters more now than aggressive buying.
- Contractor · NYC/Los Angeles · Member since 2019 · 91 posts · 55 votes4mo
The real danger right now is not a tight spread but the complete breakdown of velocity parameters. An operator can build a conservative ten percent cushion into their spreadsheet but if the local structural inspection takes four months instead of three weeks your carrying costs will eat that margin alive before you even hang drywall.
The strategy proposed by Jason about chasing added square footage or ADUs to force an appreciation bump is exactly how people get buried in this rate environment. Adding footprint space means structural engineering zoning variances architectural delays and foundation work. That is an incredibly high friction profile to take on right now. As Mohammed accurately noted regarding the New York and Long Island markets, disciplined buying means stress testing for duration rather than just looking at the top line acquisition discount.
If you want to stay active your buy box needs to target properties where the main mechanical systems are completely stable and the scope is strictly limited to cosmetic production. You want a clear line of sight to a ninety day stabilization turnaround. The moment you cross the line into heavy zoning play variations you are no longer running a flip business you are running a speculative gamble against local municipal bureaucracies. Just my take.
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