All Forum Posts by: Marty Boardman

Quote from @Hunter Peterson:

@Marty Boardman

Moody Analytics just announced 344 US markets are overvalued by 10%, compared to only 261 in 2007. This time, it’s concentrated in secondary/tertiary markets that people flocked to during Covid, rather than in the major cities like the last time. Forbes says pending home sales fell to the lowest level in a decade in April and are getting worse. With the recent rate hikes, the average home price would have to drop more than 50% to get the same monthly mortgage payment as just a couple years ago. 

I understand the effects of supply and demand on price, but at a certain point regular people won’t be able to pay ever increasing prices. No doubt inflation raises asset prices in the long run, but it seems like that’s just one piece of the puzzle here. Nobody knows the future, but I don’t think it is irresponsible to bet that some home prices take some type of step back in the coming months/years.

Plus… you never answered my question!

Sorry I didn't answer your question! I would need to know what your current cash flow needs are, and what alternative investment you plan to go with that will replace that cash flow.

Lots of variables to consider for sure when attempting to predict what will happen. And we could definitely see home prices dip in some areas. Are all of your rentals in Austin?

Quote from @Scott Trench:

Quote from @Darren D Hogg:

If you’re following the news, all of the headlines about conditions in the current housing market may leave you with more questions than answers. Is the boom over? Is the market crashing or correcting? Let me know your thoughts. I assist Real Estate Investors with finding Deals. 

You should vote on and check out the poll we have going at BiggerPockets.com/forums right now on this exact topic! Looks like most investors feel that the market is going to be flat or rising slightly. 

I'm in the flat or rising slightly category. Inventory levels are still WAY too low for there to be any type of crash or correction. People bought houses in the 80's when interest rates were 17% so they'll buy when they're at 6-7%.

And right now there's just over 1 million homes available to buy nationwide (normal would be around 2 million). During the 2008 crash there were 4 million.

What information/data are you reading that suggests "we may be due for a correction here in the near future"? Where would you reallocate those dollars? The stock market? Crypto?

There are some excellent sources/housing experts to follow that paint a much different picture for the future of real estate. For example, check out Logan Mohtashami with HousingWire.com.

The key ingredient required for any type of correction is a massive increase in supply, and that is not happening. Check out this quote from his latest post:

"Rates have risen at the fastest pace ever, which makes houses more expensive, so in theory, some homebuyers can’t move. Home sellers with high equity aren’t as sensitive to higher rates because they bring a more significant down payment. Inventory skyrocketing back toward historical norms of 2 million to 2.5 million, which I would find to be the best thing ever for housing, is not happening this year."

I fix and flip houses and have worked with some excellent wholesalers in the Phoenix and Milwaukee areas. But none have sent me a property in over 3 years that pencil out. I'm still flipping but source my own deals now.

This may start to change if we're really drifting into a recession. I live in Gilbert, AZ and my neighbor told me that Starwood (a large institutional buyer) just backed out of purchasing his rental house. He said they backed out of 300 deals and walked away from $1.5 million in earnest money because they think the market has plateaued.

Quote from @Hannah Howe:

Thank you for these book suggestions. We are always looking for more books to digest. 

 You're welcome!

Quote from @Taylor L.:

Love it! Another one that helped me immensely is Crucial Conversations. Teaches you how to navigate tough, high-stakes conversations. Skills that are useful in both business and in life.

 Haven't heard of that one. Will add to my list! Thanks.

I was recently asked what my 5 favorite books were for inspiration and building great habits as a real estate investor. Would appreciate anyone else adding to this list, I'm always looking for ways to be more productive!

Rich Dad, Poor Dad by Robert Kiyosaki

Ever thought about quitting your 9-5 to become a full-time real estate investor? This is the book that inspired me to walk away from my job as a TV news cameraman back in 2002 to start a house flipping business. There isn’t much step-by-step strategy provided, but you’ll learn how to think and act like a real estate investor and business owner.

The Compound Effect by Darren Hardy

Are you consistently inconsistent? In other words, do you have a sincere desire to start real estate investing, or scale your current business, but are constantly veering off-course because life keeps getting in the way? Me too. In this book you’ll learn the importance of making small, daily decisions that will, over time, result in exponential growth in your personal and financial life.

Atomic Habits by James Clear

Do you make financial goals for your real estate business? Maybe it’s a certain number of houses you want to flip a year? Or perhaps you have a passive income figure you want to reach? In James Clear’s book he writes that having goals are great, but what you should really be focused on are systems. He says that “goals are good for setting a direction, but systems are best for making progress.” In the book he provides steps for breaking bad habits, creating new ones and systematizing your business.

How to Win Friends and Influence People by Dale Carnegie

Do you consider yourself to be a good listener? If you’re going to be a successful real estate investor you’ll often have to play the role of a therapist, teacher, negotiator and counselor. I realized a long time ago that I talk way too much, which is never good when you’re trying to close a deal. In this book I learned why it’s so important to ask good questions and then shut my mouth. It’s helped me with negotiating with home sellers and in my marriage.

The Science of Influence by Kevin Hogan

How do you feel about being a salesperson and influencer? Because if you’re going to be a real estate investor you must have basic sales and marketing skills. You’ll need them to raise capital, negotiate with buyers and sellers and even to lease your properties if you’re a landlord. In Kevin Hogan’s book you’ll discover how people think and make their decisions. He writes “once we know our prospects’ needs, wants, and desires are, we can use this information to prepare a message that firmly impresses on the mind how we can help them”.

I'm curious how you would know that it's a wholesale company that owns the property? I'm assuming it's part of the company name or on their website? Because if this company has owned it for 16 years they've got to be the worst wholesaler on the planet :)

It could be that the new owner of the property wasn't properly recorded. Where did you get the ownership info from?

Quote from @Joe Jernigan:

Thank you for your help! That’s exactly what I needed to know. It’s a foreclosure sale. 

 You're welcome, good luck!

Quote from @Dalton Foote:

That is great insight and advice Marty! How are you normally funding those types of deals? Any creative financing or strictly cash offers? 

Quote from @Marty Boardman:

For me (and most investors I talk to right now) the biggest issue remains finding profitable deals (either to flip or keep as rentals). I acquire 90% of mine in pre-foreclosure and/or at auction. I also do some text blasting and have experimented with paid SEO. I like to say finding deals is like being a fisherman, you've got to have as many lines in the water as possible.

With a recession looming we may see more available distressed inventory, but then it could become more difficult to sell/lease our properties. It's like I tell my clients, there's never a wrong time to invest in real estate, only a wrong way. Know your numbers, plan for the worst and hope for the best.

Strictly cash. Sellers with real equity prefer it so if I don't offer them cash someone else will. And cash is the only option if you're buying at a sheriff's sale or trustee's sale.