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

TIME STAMPS

for Monthly Update:

1:50 Joe Varnadore introduces Eddie Speed. He says he’s “a little bit in limbo” based on what the market is doing.

3:50 Housing Market: Housing market predictions 2024: What homebuyers should know. Predictions on price increases for 2024. Eddie is skeptical prices will go up as much as some predictions (from +4.8% to +2%).

5:54 Easing housing’s “Lock-in” effect. More than half of homeowners say rates would need to be lower than 6% to buy this year. Eddie does not expect rates to drop to that level this year.

7:54 One-year change in active housing inventory for sale: Shift between June 2023 and June 2024. Map shows inventory change by state. Florida is up 71% while Nevada is down 21%.

11:00 Cash crash: All-cash offers tumble as housing market shifts. Investor cash purchases dropped to 64% in Q1 2024. Lowest share of cash buyers since 2008. People are switching from investing in houses to notes.

12:34 Median sales price for homes, now at $412,300, which is slightly down from peaking a while back at $435,000.

13:35 U.S. existing home sales. Chart shows sales are trending down in June which normally trends up. Has the market hit a wall? Eddie says it’s too early to call. But seller financing us up!

16:10 Banks & Lending: Current mortgage rates for July 29, 2024. 30-year fixed now at 7.23%, down from 7.3% last week.

16:57 Mortgage credit availability index level by month. Only about half as many today can get a mortgage as before the pandemic. That’s why seller financing is so strong right now.

17:45 30-year fixed rate mortgage average from the 1980s to today. Rates above 6% are normal. Average rate over the years has been around 7.5%.

19:48 Housing market predictions 2024: What homebuyers should know. Experts generally predict mortgage rates will go down a little bit this year, possibly into the 6.5% to 7% range. (That’s not the APR, so actual rate will be almost 1% higher than that.)

21:26 Citi shutters unused credit card accounts with losses soaring.

23:04 Banks are in limbo without a crucial lifeline. Cracks may appear next. Eddie has seen a 5-fold increase in delinquent notes currently being sold off by banks.

25:06 Commercial/Multi-family/Investor Update: U.S. apartment transactions slump to lowest level since pandemic. Eddie called the decline back in mid-2022. Lenders are cutting off about 50% of loans.

26:38 High supply submarkets log deepest rent cuts in Class B and C stock. New buildings will get rented but the older ones will have higher vacancies.

27:50 National condo and apartment units completed and underway. Chart shows there has been too much inventory built and new building starts are declining quickly.

29:22 Apartment markets scheduled to see deliveries decrease in the coming year. Houston is #1. Minneapolis is #2. Building projects started when things were looking good are finally being completed and hitting the market, which is now saturated.

31:22 The factors weighing down multifamily rents and profit margins. Rent growth in the -1% range. There’s a 40.2% unit increase YoY.

33:22 Multifamily property values fall as insurance premiums climb. Insurance costs have jumped from 8% of total expenses to 17%. Due to rising insurance costs, multifamily property values have dropped 3.6% since 2019 nationwide.

34:52 Multifamily delinquencies increased again.

36:05 Non-Performing Loans: June sees calendar-driven spike in delinquencies; foreclosures remain historically high. Many loans are over 3-years delinquent and have to be foreclosed on, so a wave is expected.

38:05 States with the most foreclosed homes. New York is #1, Ohio #2, Michigan #3, Florida #4, Texas #5. Most are old loans.

39:35 States with the fewest foreclosed homes. Led by Alaska, Rhode Island, Utah.

20:26 July 2024 mortgage monitor report. June had 1,825,000 delinquent loans that are not in foreclosure. About 650,000 are close to foreclosure. Eddie expects a surge in foreclosure after the election.

42:30 Loan counts and average days delinquent. Average days delinquent is 1,014.

43:36 Different cycles, different opportunities. What works in one cycle may not work in the next. We’re now in a note cycle!

44:42 Eddie says: “It’s better to do the right thing at the perfect time than to do the perfect thing at the wrong time.” Things that were perfect a couple of years ago aren’t working now. Notes are now clearly better than multifamily and rentals.

45:50 Money market funds, total financial assets level. Now at $6.5 trillion. Investors are showing up at NoteSchool in crazy numbers.

47:56 Eddie’s closing thoughts: Do the right thing at the perfect time! Learn more about note investing at our FREE 2-hour Master Class. Just visit: NoteSchool.com/TV