All Forum Posts by: Gregory Schwartz

Mark Z with Moody's Analytics seems to think builders are already starting to pull back.

https://www.marketwatch.com/story/housing-market-is-sending-...

@Caleb Brown has great advice. "I would do another 2-4 unit since you have experience with that."

Let’s be real—pretty sure that advice came straight from the '90s icons, TLC:

"Don't go chasing waterfalls. Please stick to the rivers and the lakes that you're used to."

What I’ve learned—from experience and from my mentors—is that you usually make more money by sticking to what you know. Chasing the next hot trend, even if it feels adjacent to your current area of expertise, can easily backfire.

Master your lane. That’s where the real money is.

We’ve had a lot of those one-piece tub/shower combos in our rentals over the years. I’ll be honest—I tried resurfacing and even replacing them with 3-piece surrounds. But in the end, it just wasn’t worth it.

These days, we pony up the $3,000–$4,000 to install a quality tub with a proper tile surround. The difference? It increases rent potential, boosts property value, and attracts better-quality tenants.

Worth every penny.

Quote from @Deklyn Troy strong:

@GregorySchwartz, I’m not sure of the exact number of people we’ve contacted. We reach out a couple of times, but I don’t want to seem too pushy after that.

 So as a real estate agent looking to build my listings, I try to call 50-100 people per day. That IMO is the bare minimum. I call roughly every 2-3 weeks to any given homeowner until they tell me they're interested, they tell me to piss off or they say "not right now" 

It takes a LOT of reaching out and regular follow ups to find a deal. 

Quote from @Jules Aton:

I haven't noticed this on Eastern Shore of MD and DE beaches. Plenty of new builds selling. My guess is in upcoming years as the baby boomers start passing away there will be a glut of 2-5 year old properties available which will cause the builders grief. 

 That's good to know. My parents live in Kent Island and have also shared that the market there is strong. 

@Chris Seveney and @Jay Hinrichs Seem to be conflicting experiences. Maybe Jay is the exception? Or maybe it's market specific. 

The only data points I have are permits pulled (which don't seem to be down much), local builder incentives (which continue to blow my mind) and the quarterly earnings of the national publicly traded builders, which all seem to be down 25% or more year over year 

Quote from @Ashley Kehr:

I read an article this morning stating that this was one of the reasons that sellers are pulling their properties off market because they can't compete with the builder incentives. I also think this is a great opportunity to build to rent. Live in it for one year as a new build then move out and rent it out. 

I 100% agree. A number of investors in my area are buying new builds. Some builders are even buying down the rate for non-owner occupied buyers.

One of my clients had to pull a listing off the market because they were in direct competition with a new build and despite aggressive pricing, we still couldn't compete with 3.99% interest, applications, blinds, 5k toward closing costs, plus that new build smell haha

I know profits have to be taking a hit, so how long can builders sustain this business model?

I dont do any mid-stay cleanings. We decided that if we saw our units being left in less than ideal conditions then we might start, but after 2 years doign MTR we havent needed to. 

Quote from @Deklyn Troy strong:

Hi we just recently sold our house a little while ago and finished our first deal!  We have been looking for deals and haven't had much luck cold calling or driving for dollars. Any other recommendations you guys would suggest? What's some different strategies that worked for you guys? Thanks in advance! Southern Utah area!  

 First off congrats on the first deal. Thats huge and hopefully is the first of many. 

I have to ask, you havent had much luck cold calling or driving for dollars, how many people have you called? How many mailers have you sent? How many times are you calling each homeowner?

I think the point you made about the risk adjusted nature of the paydown is the key point. Paying down debt is a 100% chance of that return. Meaning if your principal is lowered by 10% then there is a 100% chance you DONT have to pay that 5-8% interest on that 10% worth of principal. 

Where else can you invest with 100% certainty that you will see a return?

@AJ Wong to your point, this is why I actually like my 20 year amortized loans. The principal payoff every month puts a smile on my face haha.