All Forum Posts by: Matt Greer

Warren Buffett said when people are greedy be scared and when people are scared be greedy. We're getting our buyer clients some pretty awesome deals right now because sellers are starting to panic. My bigger investors are building up their long term buy and hold portfolios right now. They plan on buying all the way down and basically dollar cost averaging. Just make sure you have a plan and that the numbers work out.

@Kate Glassman What has always stuck out to me are lenders who don't want a free ride. Generally speaking lenders reach out to me and want me to send them clients and they all say they can close more deals faster. If I take the time to go and prospect and get a client I don't want to send them to a lender I'm not familiar with and have the deal go sideways. If a lender is willing to help me prospect or market with me and actually put a little skin in the game then I'm all for sending them clients. The problem is too many lenders want to just get relationships with agents but don't want to do the hard work of getting clients. If a lender does a good job and can help build the business I'll reciprocate and help them build their business as well. I had a lender meet up with me once and we both just called through my database together and we didn't get anything going that night, but I kept sending them clients because they showed they'll work.

I think there's never a bad time to buy, but there's bad ways to buy. Also plan the exit first and that will let you know the proper way to buy.

One benefit I have is I've done investment deals myself so I am able to help them by speaking the language. I'll explain exactly what you said about how homes sit on market and start going over the sellers carrying costs. Then I'll show them other homes on market that underwent price cuts and we'll see their days on market and whether or not they sold for less than the other comps. They usually do sell for less. I try and just give them as much data as possible because most investors are super analytical.

If they are wanting to list for an absurdly high price I tell them that's fine, but I'm going to increase my commission percentage. I explain to them that I am also running a business and I see listings as an investment. If I'm going to risk my money to market a house that has a low probability of selling or will sit too long on market and ruin my reputation I won't take and if I do the reward will match the risk. I know it sounds gruff and not nice, but I'm running a business and have no reason to spend money on marketing a house that won't sell due to the house being overpriced. If I don't analyze a listing before I take it I'm essentially gambling and I'm not a gambler. 

I love the phoenix market for investing. You're right about how areas can change and it's important to actually go look at the property. I'm focusing more on the expanding areas of the valley. Especially where everything is newer and they are going to run into the issue of full build out in the next few years.

I have a friend who bought a multifamily in Phoenix with zero down and the seller carried. I think it's more an issue of finding the right seller. I try and have a few different ways I'd like to do a deal and then once deals pops up that fits my strategy I go for it, but if they don't I'll do a conventional sale or wholesale. The issue with seller carryback is most sellers don't know about it or they want a lump sum payment so it turns into a numbers game of how many you can find and pitch your offer to. Sounds like a good plan you have. I'd focus more on just creating deals you can sell off until the right one prepares itself then just go for it. As an agent you're already in an advantageous position.

Great job! I love to see other investors and Realtors doing well in the same market as me.

@Account Closed If the home has termites and the appraiser sees it it won't pass the appraisal. If it doesn't pass the appraisal than the FHA Amendatory Clause gets triggered. The FHA Amendatory Clause is federal and allows a buyer to back out if there are issues with the appraisal and get their deposit back. It would also render certain parts of the contract void and unenforceable.

I'd ask your agent to do a quick consult with the broker of his firm and then look into a quick consult with an attorney if the broker can't find a way out. It sounds pretty easy in your case, but I don't have all the facts so I can't say for sure. 

A ton of people waive contingencies and then use loan products that literally don't allow that and it cracks me up. It's basic contract law.

I'd do one. The market rate has been going up pretty quickly so I'd want to be able to renew and potentially raise rent in a year. If tenants were a little more scarce I would definitely do a two year, but they aren't. At least where I am at.

If you can get some of the "winter visitors" to do a 30+ day rental that could be good, but that only covers you for the winter and location really matters as well as accessibility on the house. Then you could go shorter term in the summer possibly. I've also seen the 30+ day rentals for travel nurses.