All Forum Posts by: Josh Green

@Paul De Luca

Ah yes I spent a lot of time looking for these portfolio loans early this year. Ended up calling around 25+ different mortgage brokers and originators and sadly most of them erroneously thought they could do 5-10% down conventional on multifamily. Found 1 lender that had them in the past but had strange requirements such as a min loan of $500k and the program was shutdown last year anyway. He was also only able to do it locally (it was Chicago).

@Taylor Jones

Is there a form or application to get a RE professional status or is it simply that you meet the requirements and thus are considered one when doing your taxes?

@Paul De Luca

No way - please send my way as well if this is legit. As mentioned above, conventional is going to be 15% down on a duplex, 20-25% on a 3-4 (all owner occupied). FHA allows for lower down but as mentioned you also need a self sufficiency test and not to mention many don't qualify with FHA. I have yet to see a loan with low down in these situations unless ridiculous rate/points are used to essentially make up the down payment gap.

@Dustin Pavlik

As others mentioned, there's a ton of listings that are simply not following the minimum nightly standard. However, some of those listings could also be in areas that actually follow Pinellas county's STR regulations over that of the city itself. Also, and I'm not sure how they can even track or audit this, but st Pete and Clearwater do allow under 30 day stays a few times a year adding to the confusion/difficulty of actually enforcing these standards.

There's a lot of great opportunity in a few different price brackets for investors in Pinellas county and parts of nearby counties as well with STRs. Not uncommon to find properties hitting the "15% rule" that are pretty turnkey. There's also a pretty untapped demand in the MTR space as many STR investors prioritize the short term stay and a lot of MTR renters are left with little inventory.

First steps will be to get with a great lender, @nick and @ray are excellent and have closed STR deals for me and my clients. You'll need to figure out the best loan option for you (DSCR, 2ND HOME, Conventional investment etc) all of which will take between 10-25% down and some points or higher rates of course than a conventional owner occupant type loan.

With this, you can begin a search with me for example, so we can figure out what buy box is best for your budget. We calculate you cost to own and operate and then analyze deals that will profit you. Depending on the property, I also have GCs, amenity lists, key listing/operational components you'll need, insurance brokers, supplemental insurance and am also rolling out in the near future a way to increase direct bookings through my co-hosting/advertising to increase profit to you.

@Travis Nachman

Most metros that are desirable and showing long term, high appreciation rates are going to experience this at one point. Gone are the days here where you can just buy any multifamily or single family and just rent it out for good cash flow. While the barrier to entry has increased, there absolutely is still opportunity here and many people all over the country know that and are actively looking here.

I wouldn't mind hopping on a call next week to discuss your situation and see what can be done 👍🏼

Quote from @Nadia Daggett:

As the managing broker of Graystone Investment Group, I am always trying to improve the brokerage to hire more agents in FL that are specifically interested in Investment Sales. We have lots of investment software, investor leads and trainings on different ways to invest including; wrap around mortgages, corporate rental flips, etc. My question is for agents, are there other tools or specific software that you enjoy at your current brokerage? Anything that really helps you stand out with your investors? Thank you in advance!:)

Like Elliott mentioned above, one of the most valuable things a brokerage can offer is the people/leadership.  One of the reasons I left my engineering career to be fully immersed in real estate was to "level up" my environment.  I wanted to find a place with other like minded investors who have the portfolios, knowledge, and experience I ultimately want to gain.  It was a no-brainer for me when searching for a brokerage I needed to find an investor-focused one and for that I'm super grateful.

@Jason Warner

I agree with @nick Velez above. The best chance you have to get this to close is to move the file AND/OR get the sellers to drop the price. The latter sounds unreasonable if they paid $220k months ago

@Nicole Smith

If you're still looking I can send you one who works closely with our brokerage for many years. Only thing is his client base is full of big players so his time is limited for smaller investors. However, doesn't hurt to reach out as he can connect you to others if necessary - just DM me and I can give you his phone number 👍🏼

@David Garcia

Hey David, as nick mentioned the loan will largely depend on your plans to occupy or not as well as your liquid cash position. I am an investor and investor realtor here in the Tampa Bay area and have a team of rockstars at every corner - property management, lending, insurance, etc. I would absolutely get in touch with @nick above and discuss your situation and get pre approved. Then, we can really start on what makes the most sense for your goals and budget 👍🏼

Quote from @Urvashi Vasishtha:

Had an interesting discussion in the Department Heads group today where our CEO who has done more than 3000+ transactions and has an industry experience of 20+ years opined on the possibility of the election results impacting RE. 

When asked how do political results impact RE, he said, "the Real estate market slows in election years. Presidential election years are the worst, but any major election slows the market. Voters usually begin to believe that if their candidate loses, the world is going straight to hell. So they do not invest, but if their candidate wins, they go bullish! The voters whose prospect wins spend money, they believe the world will be awesome! The voters whose prospects lost spend money because they can’t do a thing about it until the next election lol!"

This got me thinking about how user behaviour changes per the market. To me, this falls under the category of complex buying behaviour triggered by a confirmation bias. 

Complex buying behaviour is encountered particularly when consumers are buying an expensive product. In this infrequent transaction, consumers are highly involved in the purchase decision. Consumers will research thoroughly before committing to investing. 

Confirmation bias takes over when the new information processed by the human mind confirms pre-existing beliefs. Here the pre-existing belief is that if their candidate wins the world will be amazing and if the candidate loses, the world will turn upside down. Humans tend to hold on to their beliefs strongly and look for confirmation of such beliefs. For instance, if a brand can create a situation where it can affirm the belief of the consumer pertaining to certain ingredients of the product, it is more likely to be a success in the market.

How do the election results impact buying behaviour in the market? Would love to know your take on the subject.

Real estate, perhaps even more than stocks, is influenced by emotion for better or worse.  Overall buyer/seller sentiment is a strong indicator of that emotion and indirectly impacts the real estate market. 

I recently saw a graph depicting historical S&P 500 trends right before and after elections and it was interesting to see the distinct difference in share value trends.  Not to spark a causation v. correlation argument but I wouldn't be surprised if real estate, if only for a short period of time (3-5 months) also showed a distinct fluctuation before and after election periods.

For readers and investors, it's still more important to understand that time in market > timing the market and I always advise my clients that a deal makes you money on the purchase.  Make sure in times of uncertainty or volatility that your purchase is less speculative and cash flows day.