All Forum Posts by: Brian Wysel

What are the best terms anyone has seen/been offered for non-recourse debt in Arizona?

Thanks for your responses. The market is strong but very competitive. I'm still actively looking to fill this role in the Scottsdale / Phoenix area.

Lynn Wilson at Morris Manning and Martin. Both title and attorney. I've used her for countless transactions and consulting. She and her team are fantastic.

Blackstone is selling 1,300 of their worst properties in south Atlanta (likely as one or several portfolio). They did a bad portfolio trade with BLT a few years ago and the assumption is they are selling off the worst of those homes. It'll be interesting to see who ends up with the short end of that stick. I led an effort to sell about 500 homes while working for one of the other big firms. It took about 18 months and was not easy. Since the cash flows are securitized, we couldn't just sell whatever homes we wanted because we didn't really own them anymore. Had to cut through miles of red tape every step of the process.

I get what you are saying and that you are posing this for argument sake, which is great because it's something people worry about. My counter argument would be: Since 2007 there have been millions (around 4-6 million I think) of foreclosures which created a flood of inventory all at once, resulting in artificially low prices. The big boys did play a roll in accelerating the correction in certain markets, but only marginally (in my opinion) until that inventory dried up and prices returned to normal. They have since stopped buying in large volume and prices are still rising as they would in a healthy market. 

Reiterating @Fey Chen 's point; Let's assume that the "big boys" own 20,000 homes in Atlanta and, for whatever reason, decided to evict 20,000 families so they could sell them all at once. Atlanta's inventory would rise by ~50% for a few months until that inventory was absorbed; prices WOULD drop a bit, but, assuming all other market conditions were healthy, don't you think they would correct fairly quickly once inventory levels returned to normal? 

In my humble opinion, these guys don't hold nearly enough market share to move the needle for any meaningful length of time, even if they had a reason to. 

I agree with @Alexander Felice , the largest players in the rental space have acquired around 50k homes across maybe 10-15 states. Even if all the funds consolidated, which is happening, and they were capable of selling them all at once, which would realistically take years, you'd only be talking about around 200k homes. That's only roughly 0.25% of the total SFR housing stock in the US. These guys don't have near as much influence as people think. I am curious about what has changed since the sub-prime debacle. Are people still going to be able to find ways to bet against the housing market? Will CDO's and credit default swaps come into play again or has the finance world learned its lesson?

Yes, that's what I meant,... very cool. When are you rolling out the flip app?

Not exactly sure if I'm supposed to post job openings on this forum but thought I'd give it a shot. 

Looking for someone bright, ambitious and resourceful to be my right hand and help  continue to grow a multi-market single family flipping operation.  Extensive real estate experience not required but must be eager to learn and have some natural communication and negotiating skills. 

Position based near Scottsdale, AZ.

Anton Ivanov - your app is VERY good. I've been involved in creating a similar app, just to use internally, but yours blows that out of the water. I look forward to seeing / using your flip app. Right now I just rely on my calculator (back-of-the-napkin math) when I'm in the field, so I certainly could benefit from something with preloaded assumptions that I can just plug a few #s into and have a full proforma in seconds. By chance, have you thought of including the ability to include pictures taken from within the app? Can't speak for everyone, but I would pay a premium for that functionality.

Very cool. I'm curious, what do think the final #s will be? Total rehab $, ARV etc? Flipping or renting?