All Forum Posts by: Dan Garrigus

 @Kyle A., @Kenny Simpson couldn't be more spot on! Those who are actively investing in the SD market have the best insight as to whether or not it is a place you should invest in. If someone hasn't, then it's all speculation. I personally know Kenny and he has seen and done A LOT and has a very good pulse on the market as he studies the data. Reach out to him if you're interested, Kenny will be happy to chat.

 Hey Cody! I just noticed you had responded. Did you have any luck or potential interest in your unit that you're looking to rent out?

Hi @Cody Thayer I can definitely understand why you are thinking the way you are but you definitely DID NOT mess up. If you can still financially afford the monthly payment this is should not be the time to decide whether or not to 1031 this property. 

The question should be, How is this property being marketed? What can be done to the property to create a desire to be rented? How can I add value to the next tenant? Etc. The problem seems to be a marketing issue behalf of the Property Management Companies that you have used, granted this time of the year can be more difficult find a tenant with all the holidays.

If the situation is more financially dire, I would consider refinancing. Yes, you will end up with a higher interest rate but you will also have an additional 17+ years to pay off the principal. When rates come back down and they will come back down you can always refinance it again to increase your cash flow. If you were to sell and 1031 you will most likely incur a higher rate than you currently have so selling to 1031 doesnt help the situation.

If I were you, I would refinance it to a 30 year and find ways to add value to the property to draw tenant interest your way. Never discount your monthly rate either, give a first month at a heavy discount or maybe even free to help your situation.

Hope this helps!

@Chris Davidson absolutely! This time of the year can get difficult for sure. We're pushing to close out before the holidays knowing that they could slow things down on the back side. Seems like you and the team around you does things right by checking before making promises! You must have an excellent reputation in your market.

@Eliott Elias now that's what I'm talking about! What's your average close of escrow duration? What lender are you using to knock purchases out so fast?

@Bob S. sure cash has its advantages to get the deal done fast but what about the vast majority of home buyers who finance their purchases to leverage their money? We're seeing longer escrows now with buyer demand decreasing. Couldn't faster close times even in this market leverage a deal to get the best purchase price and credits?

I'm just curious why buyers are resorting to longer escrows and forfeiting getting the best deal on their purchase today.

 Hey @Joe S. I completely agree, lenders are definitely going to need the appraisal in order to close out the deal for the buyer and that can certainly make or break the 15 Day or Less close of escrow. 

Are you working with or partnered up with Retail/Direct Lenders as your preferred lender of choice or a Broker?

I know C2 Financial has been notorious for closing in 15 days or less.

 Ooof @Tim Miller VA/FHA over 7%?!? What market are you in?

I looked and as of this morning I'm seeing 5.5% with $3K back at closing for VA and 5.875% Conventional with about $700 back at closing.

I'm here in southern California.

Who here is closing on their or helping their clients close on their primary properties in 15 Days of LESS in this new buyer's market? I've noticed a trend towards longer escrows 21-30 days with the buyer pool shrinking but why?

This is an opportunity for buyers to get more of what they want and be comfortable with their purchase. For buyers this can be the difference between Negotiating a just Below List Offer Purchase and Negotiating the Below List Purchase WITH Receiving Seller Credits for Closing Costs and/or Temporary Buy Downs for example. There are too many different ways this can play out to the buyer's advantage to list.

15 Days to Close is a great way to soften the blow to an "Insulting" offer price and negotiating seller credits. You can even renegotiate on the back half of escrow for you and/or your clients to get seller credits. This tactic at this time in the year can be the difference between just getting a deal done and getting a great Deal on a property for you or your clients.

You can always retract the 15 Day Close in the negotiating process and extend escrow if the sellers won't budge on the terms. Can't receive if you never ask. Put it all out there, this is the market for buyers to push their limits.

What are your thoughts?

Who here is closing on their or helping their clients close on their primary properties in 15 Days of LESS in this new buyer's market? I've noticed a trend towards longer escrows 21-30 days with the buyer pool shrinking but why? 

This is an opportunity for buyers to get more of what they want and be comfortable with their purchase. For buyers this can be the difference between Negotiating a just Below List Offer Purchase and Negotiating the Below List Purchase WITH Receiving Seller Credits for Closing Costs and/or Temporary Buy Downs for example. There are too many different ways this can play out to the buyer's advantage to list. 

15 Days to Close is a great way to soften the blow to an "Insulting" offer price and negotiating seller credits. You can even renegotiate on the back end of the escrow for you and your clients to get seller credits. This tactic at this time in the year can be the difference between just getting a deal done and getting a great Deal on a property.

You can always retract the 15 Day Close in the negotiating process and extend escrow if the sellers won't budge on the terms. Can't receive if you never ask. Put it all out there, this is the market for buyers to push their limits.

What are your thoughts?