Behind The Shine | 3/11/2022

    Behind The Shine 3/11/2022

    The Russia-Ukraine War has been absolutely devastating to so many people and my heart goes out to everyone who’s being impacted. While this is the most important focus, I’ve had tons of people reach out asking how this is currently impacting or could impact the real estate market in the near future. I break down what things I’m watching for, what strategies I’ll be using, and what you can do with your investments during these uncertain times. Check out the full video here.

    If you’ve been following the real estate market over the last year, you’ve seen buyers flood a market which has scarce inventory. Just over the last month, we’ve seen even more massive price growth as buyers are scrambling to get in while interest rates are on the rise, inventory is remaining low, AND we’re arriving into the fastest moving season in real estate- spring time!

    While buyers are feeling the ever tightening squeeze, sellers are feeling confident with selling for over asking, receiving multiple offers, and seeing unheard of returns. There has probably never been a better time to sell, especially in an appreciation market like California.

    Just to demonstrate more specifics, I want to highlight one of the markets The David Greene Team specializes in, Sacramento, CA. You can see the median price growth is at an all time high and expected to continue rising over the next few months.

    Image and stats by Ryan Lundquist of The black bar represents the month of February each year.

    In exactly a month, January 2022 to February 2022, the median price increased $31,000 in Sacramento. This essentially means that homes appreciated $1,000 per day. I don’t know many investment classes that are currently bringing these returns.

    The David Greene Team is here to help strategize how selling could be an extremely smart move now. If you’re located in California and want to find out more, reach out here!

    As you may have heard on BiggerPockets, I’m partnering with expert operators to bring you exciting investment opportunities! Once we find an opportunity, we’ll present the details of the deal.

    Interested investors will have an opportunity to invest in the project (through a legal process called syndication). After the deal closes, the team will get to work on renovations and operate the property throughout the life of the investment, while you sit back and enjoy the returns.

    These investment opportunities will be open to accredited investors only at this time. You can find the definition of accredited investor here:

    If you think you would be a good fit for this type of investment and would like to learn more, check it out here!

    Last week I shared this exciting opportunity but wanted to share it again! Our mortgage team, The One Brokerage, is quickly growing and we’re looking for a few dedicated team players who can help our clients with all of their lending needs!

    Financing is one of the most important factors in making a deal happen so if you think you may be a good fit keep reading for the positions we have open.

    1. Processor– This will be a dedicated, in house, mortgage loan processor or loan officer assistant (LOA). Training will be provided, but industry experience prior to application helps. Job duties include assisting the senior loan officer in organizing files, pre-approving potential buyers, reviewing financial documentation, and requesting documentation from borrowers. This is great training for someone who wants to eventually grow into a loan officer, but a new hire should be prepared to be processing for a year at minimum before a promotion to Lo is expected.
    2. Experienced Loan Officer- This position is for our independent team. Direct leads will not be provided but there will be future options to ‘buy in’ to company sponsored leads. We offer in-house dedicated processing to allow an experienced LO to spend more time prospecting new borrowers and less time collecting documentation. Competitive splits, in house processing, training, and the name recognition that comes with working with us are our biggest advantages over other brokers!
    3. Inside Sales Agent- This position is the equivalent to a concierge/hostess service. Someone who takes pride in great customer service would be a great fit! This person would be managing our inbound calls and website requests to work with us. They will establish contact with a new potential client, run through a script of questions to get the baseline of information from the borrower, and ensure a good experience with a real person on the phone. They will also most likely be managing our website ‘chat’ feature where they will be doing the same thing. Our ISA will also be responsible for delivering this information via our CRM to the loan officer assigned to the file, to guarantee the LO is up to speed on the borrowers situation before scheduling a phone call.

    Apply here if you’re a rockstar looking to join a rockstar team!

    Last week, I shared my first step when analyzing a potential deal by starting with a broad location, like an entire state, my second step of narrowing down a specific city, third step of choosing an asset class, and fourth step which is analyzing the management. Today I’m going to share my final step of analyzing opportunity cost.

    By considering opportunity cost, you’ll look at it like, “If I invest in Deal A instead of Deal B, could I have made more with Deal B?” Instead of just looking at it as if one specific deal will make you money consider which deal will make the most money.

    One of the most important things I do is look beyond how the deal will perform after year 1. Since I’m planning to buy and hold, I zoom out and get the big picture of several years out. It’s so easy to get stuck only looking at cashflow year 1 and missing all of the other key metrics for how it’ll perform in the future.

    By zooming out, I’m able to look at opportunity cost across the life of the deal.

    So now you have it- the five steps I use to analyze a deal.

    One of my all time favorite books I wanted to share with you is Pitch Anything by Oren Klaff. This book highlights how to keep the frame on any situation using the S.T.R.O.N.G method. By keeping the attention of others and using specific strategies, you’ll be able to pitch anything. Persuasion is one of the most important skills needed in business, investing, and everyday life. I highly recommend you check it out.

    The David Greene Team had the pleasure of working with our wonderful clients Alex and Kierst in the Oakland, CA! These two friends took the leap to house hacking partners which paid off big time! Check out their fully story here.

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