All Forum Posts by: Bradley Buxton

@Scott Trench I agree that the Institutional investors will continue to buy when there is profit to be made.  They will also not significantly affect the competition with individual buyers. There are stories of individual buyers not getting a house because they were out bid by some fund investment firm etc.  Why did we hear about that?  Because it's sad and rare. What kind of investor with cash beat out their offer? Was it wall street or a local savvy business person. Did those investment funds over pay? Maybe.

If there are some sort of government restrictions locally or statewide the strategy I think would change to a BTR model and no longer compete with main street investors. It will be interesting to watch if local governments get involved in the limitations similar to AirBNB.   

According to a recent report, corporate buyers own about 3-5% of single-family homes in the US, but that number could increase as they see more opportunities for profit.

Some lawmakers are trying to stop this trend by proposing a new law that would ban corporations from buying single-family homes. They argue that this practice is driving up prices, reducing inventory, and displacing local residents.

In my market in Reno NV, the institutional investors were active in the past, but have stopped their purchases recently. This may be due to the high demand and low supply of homes in the area, which have pushed up the median home price.  I'm seeing opportunity buys with our clients finding and buying investment properties with cap rates above 6%. In Lake Tahoe Vicasa has been active but I'm not sure this would fall under the proposed law.  This current version of the law will never pass and could be an election bait but it's and issue that will likely come up again. 

Are Wall Street investors taking opportunities from other home buyers?  Is this actually happening in the West?  How is affecting your market? 

@Hector Valadez  Did you decide on a location out of state?   Have you looked into Reno, NV? 

@Tony W.  Hi Tony, I'm an agent at an investor focused brokerage in Reno Tahoe NV, meaning all the agents that work at the brokerage are investor focused.  We have tools, data, and research the investor market and we make sure we add value to our clients for their goals.   

Where ever you get leads on agents ask questions about how how they like to communicate, what their time availability is for you, why they want to help you, and how they will be valuable to you in your journey in achieving your goals.  Communication is key, if you are not clear on what you need then no agent will be be very good. Finally don't be afraid to "break up" with your agent if you feel like the relationship is not beneficial to you but don't just ghost them communicate your frustrations.   Feel free to reach out and connect.  Good luck!  

@Alex Ng 

I like to think about investing where people live. One way to find hidden gems is to look at the data of where companies are moving, job growth, demographic changes, limited building capacity, and investments in pedestrian infrastructure. From an emotional side, where would you want to live? I'm biased about the Tahoe Reno, NV market because the proximity to CA wealth, people, and companies moving to the area is forcing appreciation. The proximity to Lake Tahoe, mild weather, no state income tax, geographically constricted building by the mountains, and landlord friendly. There are still relatively affordable deals for SFH and MF. There are some investment gems here for LTR, MTR, STRs. Feel free to reach out. I'm happy to have a conversation about it.

@Ben Lasri to find a location write out your goals for 1, 3, 5 year and then work backwards and determine what you have to start then develop a strategic plan on how to achieve those goals.  Will you want to be wholesaling in 5 years?  This will help narrow your market. You will also have to determine your risk comfort level, initial investment capital, and time capital.  I would also suggest starting at a market you are at least partially familiar with or you can pick it out on a map.  Within a day of driving is good if you have to view properties, meet with contractors or network with people locally.  It's an exciting journey!  Good Luck!

@James Figliozzi If you are thinking about Nevada take a look at the Reno, NV market. We have all the business advantages, constricted building will drive appreciation, pool of tech workers moving from CA, and a more mild climate. There are still opportunities to find deals on multi-fam and SFH. Might be worth a look over Vegas. I'm happy to connect and be a resource for you in the Nevada market.

@Andrew Adame are you looking to sell new construction or buy new construction? We work with investor clients that we provide the underwriting and analysis of new construction SFH's. In Reno, NV there are some new construction that the builder is offering financing and just lowered the price. These are above a 5% cap rate. We are negotiating some of the finishes and appliances. The new builders generally have their own "agents" or sales people so there not a big need to have a Realtor represent the buyer. DM me if you want to chat more. I'm happy to be a resource for you.

@Account Closed check with a few different lenders and they types of products they offer beside a HELOC like a HE-Loan. I agree with Michael above except I would be wary of investing expecting an interest rate lowering in the next year. In the 1980's when interest rates were raised super high the fed lowered them and inflation came back. It's the same people that remember that mistake. I wouldn't expect a significant rate decrease until 2025. As your doing your calculations plan for more time with the higher rates as a worst case. It could happen if the economy cools too much there might be pressure to lower rates in a presidential election year.

@Oskar Czeladko One of the best ways to get an offer accepted is to find out what is actually most important to the seller.  It could be all price but maybe they are trying to spite their ex, or it could also be a rent back, quick close, or something else.  This can be hard to find out if you are dealing with a seller agent directly if you can't get access to the seller directly.  A good buyer agent will be able to find out information about the seller to negotiate the best offer to close deals.