All Forum Posts by: Mark Mazzucco

I think that the date the rate is definitely a good tactic to get buyers at least more open to higher rates. But I do agree that there is some correlation with rates and prices. Some people already commented on it, but there is a serious shortage of homes, that is why you are still seeing a much slower drop in home prices and it is also location specific where the drops are happening the most but overall you've seen some pull back in pricing of homes. 

I do think we will see a slight pull back in rates when we get closer to the election, and like my other post stated, if you can house hack or do other non traditional things, that will help your buyers get through these tough times with rates!!

I personally just closed on a home 2 months ago, and my rate is 6.75% and I am offsetting the extremely high mortgage payment with a guestsuite AirBnB that covers half of my mortgage. So that is what I'd recommend to encourage people that don't think they can afford higher payments!

This past month, in the midst of tough real estate market due to elevated rates, I successfully helped 8 of my buyers close on homes! This stands as a testament to the fact that even in an ever-changing landscape, there are still abundant opportunities available for those with the right strategy and mindset. With the higher interest rates and a lot of people pushed out of the market because of it, there's definitely a lot of deals out there for any of those that can manage a higher payment short term.

While the current interest rates might be higher than preferred, it's essential to remember that they are not static. Rates fluctuate, and when they eventually drop, the refinance will help the monthly payment make much more sense. It's a waiting game, but patience is pivotal in real estate. As long as the investments cash flow positively now or close to it (especially in the case where you are living in it too), the returns will be even more impressive when rates decline. I always tell my clients when I am pre-qualifying them that they have 3 options, 1) keep paying rent, 2) buy when rates are low and the home prices are higher and more competitive to buy or 3) buy when rates are high and there is more deals and less competition and refinance as rates drop...To me I like the higher rate scenario so that I can get more deals and negotiate more with sellers.

Almost all 8 of the deals I closed are using the "house hacking" strategy. By renting out portions of their property, whether it be a guest house or a designated space on platforms like Airbnb, they're significantly offsetting their monthly mortgage payments. In some instances, this strategy covers half, and in others, the entirety of the mortgage.

In conclusion, the present real estate market, with its perceived challenges, is still ripe with opportunities. So don't be discouraged and happy house hunting! 

Let me know your thoughts!

Quote from @Mel F.:

Quote from @Mark Mazzucco:

Quote from @Ashley C.:

@Mark MazzuccoI would love to help! What area are you interested in? 

 I’m looking anywhere where it cash flows since I plan to let someone manage. 

 If Cash flow is most important to you and you're ok with holding for 5+ years, there are TONS of apartment complex deals available ranging from $60k - $150k per unit depending on the area. Especially as investors used variable rate debt in 2020/2021 that's maturing this year into Q1 and Q2 of next year. The ones I underwrite usually have 8-12% Cash on Cash returns. Happy to send you some as I get them and after underwriting checks out.

I'm usually analyzing deals up & down I-55/57 (Milwaukee, Chicago, parts of TN, MO, MS, LA), and sometimes tertiary markets of Atlanta.

-Mel

 Mel - give me a message as I'm very interested in divesting some of my properties and doing a 1031 into one of these properties.

Quote from @Ashley C.:

@Mark MazzuccoI would love to help! What area are you interested in? 

 I’m looking anywhere where it cash flows since I plan to let someone manage. 

Quote from @Daniel Cruz:

I'm a developer in Phoenix looking for Investors interested in NEW BUILD Multi-Family, Industrial and Commercial property.

I currently have opportunities for a 250 unit multi-fam(9ac) in Buckeye, Self-Storage(5ac), Warehouse, Auto Repair Shop(1ac), Retail Center(5ac), and some in Scottsdale, 85260 Air Park.

 won't let me contact you, but reach out to me with a PM

Sure - I'll PM you.

Quote from @Mason Weiss:

Hey Mark, how many units and what cap rate? 

 I haven't found anything yet, I'm hoping I can buy a 16+ unit or more.

Hi All, 

I am an investor in residential real estate for the last 5 years and now have 11 doors however I think I want to transition into an apartment complex. Anyone on the platform that can help guide me, would greatly appreciate it!

So depends on the deal, technically the seller agent will just get the entire commission, so doesn't normally make much of a difference unless seller has no agent.

Having an agent definitely gives you much more control and helps guide you in ways that you might not know during your first deal.

This is awesome man! I actually have 9 properties myself (just bought my 9th one 1 month ago) and did the whole rehab with some friends of mine. It went pretty well. I played basketball up in South Dakota for college! So love connecting with other athlete investors.