When an investor does a deep dive into reliable data on the note space, all the numbers prove how notes are the place to put your money. Well, if you’ve you been looking for reliable data, you’ve come to the right podcast. Our guests today are Fred and Tracy Rewey of NoteInvestors.com. They’ve put together an incredible presentation of all the most important categories. Along with Eddie Speed, they’ll definitely reassure every note investor that their money is in the right place at the right time.

GUEST INTRO:

Fred & Tracy Rewey are two of the nation’s leading note experts with over 60 years collective experience. They’re the founders of NoteInvestors.com, the #1 site for discounted cash flow industry training and resources; drawing upon a strategic alliance of key funders, note investors and educators within the industry. They’re dedicated to its continued growth through the development of a strong broker/investor community.

Fred and Tracy provide private note holders with all-cash payouts in lieu of their future monthly payments, and by developing well-trained cash flow professionals through industry-leading cash flow training, personal mentoring, and educational programs.

They offer step-by-step training focused on specialized areas of the cash flow industry which are very much underworked by most beginners. They identify just where the best opportunities are; how to “target” your marketing efforts to quickly gain a profitable foothold within these virtually untapped areas. Most importantly, they’re people who can “hold your hand” and mentor you through every step of your transactions.

Their instructors are carefully selected for their unique ability to impart their personal successes in a highly motivating, easy-to-understand manner. Their staff has been invited to address professional investment and real estate groups all over the United States. They’ve lectured legal and accounting groups for continuing education and advanced learning. Thousands of people nationwide have enjoyed and responded to their informative presentations.

https://noteinvestors.com/

NoteSchool TV eBook

”I look at Eddie and the NoteSchool team as my board of directors. Having them there to answer your questions is invaluable and expedient to have that type of knowledge at my fingertips”

– Joe LaCount

Eddie Speed’s March End-Of-Month Market Update

Anybody can make predictions, but not everybody can get them right. That’s why it’s so critical to learn which “experts” to listen to. (As the old saying goes, “An expert is a liar a hundred miles from home.”) Savvy investors have learned that the best source for reliable news and data affecting real estate in general and note investing in particular is NoteSchool TV.

In today’s episode, we take a close look at many of the real estate predictions that have been made by various gurus about what would happen in 2024. Some have proven to be accurate, but others are way off. 

For example:

  • Many financial gurus were sure that mortgage rates would be falling quickly in 2024 and banks could start making refinance loans again. Now they’re not so confident, and refinance loans are rare as hen’s teeth.
  • Many real estate investors and lenders have recently poured money into commercial properties. Now they’re kicking themselves. (Commercial foreclosures are up 17% in a month, and up 97% YoY.)
  • Many realtors thought the 6% commission would live forever as the industry standard. Now, thanks to a recent court ruling, they’re not sure what will happen to commissions in the future.
  • Many investors thought the “trees would grow to the sky” in America’s hottest markets. Now many of those markets are seeing prices shrink the fastest. (Case in point, Austin, TX. It used to be one of the hottest markets, now it’s the coldest.)

If you want real estate news you can trust, by guys who have proven time and again that they know what they’re talking about, spend the next half hour soaking up the wisdom of Eddie Speed and Joe Varnadore.

 

Since 1980, Eddie Speed has dedicated his life to the note industry and to expanding the benefits of creative seller financing for both sellers and buyers. Throughout his career he has introduced innovative ideas and strategies that have revolutionized the industry. He teaches these techniques through NoteSchool, the training school he founded in the early 2000s. His training has helped thousands of real estate professionals, both realtors and investors, expand their business model; showing them how to close more deals, increase their earnings, build long term wealth, and think like entrepreneurs. A substantial number of “A” list real estate

professionals rely on Eddie’s for guidance on their creative financing strategies. Eddie has personally closed around 50,000 creative finance transactions, and his unique industry vantage point has allowed him to review close to half a million note deals. When it comes to creative financing and notes, it’s safe to say he’s seen it all but remains committed to lifelong learning.

Joe Varnadore invested in his first property at the age of 19, and knows the importance of using creative financing to make deals work. He has created and brokered more than $30 million in note transactions on residential and commercial properties. As an author, speaker, and trainer for the past 25 years, he believes that there has never been a greater opportunity for real estate investors to use non-performing notes to acquire properties.

www.noteschool.com

https://noteexpo.com/

TIME STAMPS

for Monthly Update:

1:45 Joe Varnadore introduces Eddie Speed to discuss whether the market is tracking where the experts said it would back in early January.

2:40 Housing Market: February home sales spike 9.5%, the largest monthly gain in a year, as supply improves. This is good for realtors and brokerage houses. Eddie says the market may be normalizing.

4:40 What would it take for houses to be affordable in the U.S. again? Home prices would have to drop 40% to make a typical house as affordable as it was in 2020. The average mortgage rate would have to plummet to 2.45% from its December 2023 average of 6.8%. Median household income would have to skyrocket to $129K from its December 2023 level of $77K.

6:00 Amid weak demand for existing homes, active listings & price reductions jump, listing prices weaken. Buyers aren’t lining up and offering over asking price like they were a while back. Sellers are taking less as the market adjusts.

7:45 Shift in home prices, as tracked by the Freddie Mac House Price Index. The first slide shows the top ten markets out of 384 (with several surprises) and the next slide shows the bottom ten markets.

11:42 Realtor settlement could be seeing a “seismic shift” in the housing market. This has been a big topic within the NoteSchool community. The top realtors aren’t yet certain how this will affect the industry.

13:10 Banks: Fannie Mae revises mortgage rate predictions for 2024. Rates are expected to be higher this year than previously thought, and not expected to drop much in the near future. Fannie Mae expects the 30-year fixed-rate mortgage to end 2024 at 6.4%, up from its 5.9% prediction earlier this year.

15:10 Average rates (APR): 30-year fixed 7.291%, 15-year fixed 6.61%, ARM 7.635%.

16:05 First lien mortgage originations. Mortgage production is down by half. There are no refiis happening, with no fix in sight. This is driving mortgage banks to sell discounted reperforming and nonperforming notes. (They’re cleaning up their balance sheets.)

18:10 Top U.S. banks, by share of commercial property loans. Many refis on commercial property are being done for less value on the property than the original loan.

20:30 Commercial/Multi-family: National effective rent growth by class. (It’s actually “negative rent growth” as rents are going down while expenses go up. The margin of cash flow is shrinking for landlords—more proof we’re in a note cycle as capital is driven into the note business that used to go to buy rental properties.

23:00 U.S. commercial foreclosures increase in January 2024. They’ve increases 17% last month, and 97% YoY. Three top states for commercial foreclosures are CA, NY, and TX.

28:15 Check out the article in NewsMaxMoney by Eddie’s friend (and genius) Dr. David Phelps: “The Dangerous World of Private Real Estate Investing.” 

26:08 Are the trees growing to the sky? No, even though the promoters might try to convince you that they are.

27:33 Non-Performing Loans: Overview of mortgage performance. Foreclosure starts are up 43.2%, and are now at highest level in 2 years. Lenders are selling more and more assets since they don’t have the manpower to handle the defaulted loans. They also don’t like the optics of having to foreclose on their customers.

29:24 Loan counts and average days delinquent. Total loan count over 90-days delinquent is almost 700,000. Average days delinquent: 1,014. This is the pent-up inventory.

31:18 If you’re new to the world of NoteSchool TV, sign up for our FREE 2-hour Master Class. You’ll learn why this asset class produces superior monthly cashflow. Just visit: NoteSchool.com/TV

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