I am not an authority on the news; I can say I rarely watch, but people manage to tell me news when they think I should know it! I do however, listen to banter, comments and any talk from the trenches I can get.
Especially right now because my ratio is slipping badly. I'm offering higher than I normally do, sweetening my deals more than I have before, and getting rejected, here and in Reno. My buyers and competitor associates are saying yea-- it's tough, but my buyers aren't up-ping there max criteria enough, so I'm deal poor right now.
There's been talk of an investor (or group) negotiating with BoA here in Vegas on a $70M SFR deal. My source is a broker, not sure beyond that. The talk is they want to buy at 40¢/dollar. I did the math and it works out to 1,000 average FC props.
At first I thought, man! that kind of a deal would mess with my performance ratio as a wholesaler and rehabber. BUT, then I thought...
two things could happen if this deal went through:
1) by BoA accepting an offer on the tape of 40¢ on the dollar and they hold/rent the lot prices will go down (good for us, we'll get more deals at low prices)
2) by BoA accepting an offer on the tape of 40¢ on the dollar and the they put them back on the market, inventory will increase and although the price per each will go up to say, 60¢ for us to buy them, the inventory will go up because these props were not on the market (good for us, we'll have more props to buy/sell AND the supply will keep the prices in check
So, it's a good thing.
It goes on. Then there is an investor I know of (the owner of another brokerage I work with) that plans on (or desires) buying a tape of 300 props locally.
Same outcome; only good things.
Anyone care to debate the scenario? Agree? Other thoughts?
How's the supply and demand elsewhere from the trenches?
__________________
Never, Never, Never Quit, N3Q
"Nothing happens until you place an offer."
"Skip Deal #1, go straight to Deal #2; it's so much easier."
"There is nothing so useless as doing efficiently that which should not be done at all." — Peter F. Drucker... so, "Don't sweat the small stuff." -R.Carlson. "The greatest mistake you can make in life is to be continually fearing you will make one."~E.Hubbard, The Note Book, 1927...so, Do it for the right reason and "Do it with a headache!" - Dean Graziosi, Weekly Wisdom #176
Dg-ers,
I am not an authority on the news; I can say I rarely watch, but people manage to tell me news when they think I should know it! I do however, listen to banter, comments and any talk from the trenches I can get.
Especially right now because my ratio is slipping badly. I'm offering higher than I normally do, sweetening my deals more than I have before, and getting rejected, here and in Reno. My buyers and competitor associates are saying yea-- it's tough, but my buyers aren't up-ping there max criteria enough, so I'm deal poor right now.
There's been talk of an investor (or group) negotiating with BoA here in Vegas on a $70M SFR deal. My source is a broker, not sure beyond that. The talk is they want to buy at 40¢/dollar. I did the math and it works out to 1,000 average FC props.
At first I thought, man! that kind of a deal would mess with my performance ratio as a wholesaler and rehabber. BUT, then I thought...
two things could happen if this deal went through:
1) by BoA accepting an offer on the tape of 40¢ on the dollar and they hold/rent the lot prices will go down (good for us, we'll get more deals at low prices)
2) by BoA accepting an offer on the tape of 40¢ on the dollar and the they put them back on the market, inventory will increase and although the price per each will go up to say, 60¢ for us to buy them, the inventory will go up because these props were not on the market (good for us, we'll have more props to buy/sell AND the supply will keep the prices in check
So, it's a good thing.
It goes on. Then there is an investor I know of (the owner of another brokerage I work with) that plans on (or desires) buying a tape of 300 props locally.
Same outcome; only good things.
Anyone care to debate the scenario? Agree? Other thoughts?
How's the supply and demand elsewhere from the trenches?
Never, Never, Never Quit, N3Q
"Nothing happens until you place an offer."
"Skip Deal #1, go straight to Deal #2; it's so much easier."
"There is nothing so useless as doing efficiently that which should not be done at all." — Peter F. Drucker... so, "Don't sweat the small stuff." -R.Carlson. "The greatest mistake you can make in life is to be continually fearing you will make one."~E.Hubbard, The Note Book, 1927...so, Do it for the right reason and "Do it with a headache!" - Dean Graziosi, Weekly Wisdom #176