March 2024 – Page 2

MCS OPENS SELF-PERFORMING SERVICE CENTER IN MEMPHIS

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Appoints Chad Henry as Regional Operations Director MCS, the national property services company founded in 1986, announced the opening of its latest self-performing Service Center in Memphis, TN, serving Tennessee and the surrounding areas. This announcement represents the latest addition to the company’s growing network of self-performing capabilities supporting all facets of the default mortgage, property preservation, commercial and residential rental segments. MCS now has “boots-on-the-ground” representation in 25 markets across the country, plus an extensive network of 30,000 third-party service partners to address property maintenance requests for its growing client base. The new Tennessee Service Center provides field services for MCS’s regional Single-Family Rental (SFR) clients as well as its Commercial and Mortgage business lines, and plans to provide tenant turn and maintenance for the local multifamily sector. The center is based in Memphis but serves the surrounding areas east to Nashville and west to Little Rock, AR with plans to continue expanding its coverage area throughout the region. MCS also announced that Chad Henry has been appointed the Tennessee Market Operations Director to oversee the new location. Henry brings over 20 years of construction industry experience to his new role with MCS, including owning his own construction business in the Memphis area for the last seven years as well as previously owning a construction company in Jackson, TN. He has been in the SFR business for several years and has a strong background in residential construction, including framing, electrical, plumbing, roofing, flooring, painting, drywall and landscaping. “We’re excited to add the Tennessee Service Center to the MCS roster of self-performing markets,” said Andrew Nolan, President, Commercial and Residential Services, for MCS. “Our hybrid service approach leverages the MCS internal expertise and talent with the local know-how of qualified vendors to create a uniquely efficient business model for our residential, property preservation and commercial clients.” The continued client demand for MCS self-performing capabilities and the overall growth of the Tennessee market was the driving force behind the company’s expansion plans. Tennessee was recently named one of the best states to do business and was ranked as the top state for small business job growth. The area is also one of the leading logistics hubs both globally and regionally, and has seen a major increase in millennial population over the last few years. “Tennessee offers a pro-business regulatory environment with low taxes and business costs, as well as a cost of living below the national average,” added Henry. “I’m thrilled to head up the new Tennessee Service Center and look forward to expanding operations, adding team members and working with local third-party service partners to support our clients.” About MCS MCS is a leading property services provider working across Commercial Properties, Single-Family Rentals, and the Property Preservation industry. For nearly 40 years, MCS has been committed to responsive care, industry-leading service standards, leveraging technology, and end-to-end transparency to protect, preserve and serve communities across the country. Some of the largest and most respected mortgage servicers, real estate owners and operators, and corporations trust MCS to perform property inspections, preservation, maintenance, renovations and other property-related services. Learn how MCS is Making Communities Shine at MCS360.com. Media Contact:Great Ink Communications212.741.2977MCS@greatink.com

Why “Perspective” Will Always Work for Investing in Real Estate Successfully

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Tarik Turner is the President of Ei8ht Street Funding, a mortgage company that lends for investment properties. He is a real estate investor, author, and former radio show host, and he is on Uncontested Investing today to talk about how his experience in radio prepared him for real estate and how he found his way into real estate investing, which eventually got him to where he is today. Listen to this episode to learn more about Tarik, his journey into real estate investing, and the impact of consistency to your success in real estate! Quotables “I think that the one thing that I learned from radio is that nothing really clicks unless you’re consistent.” “I think you need to do as much failing as possible at an early age so you know what it is that you want and you know what it is that you don’t want.” “You might have clients with great deals but you and the client aren’t necessarily a great fit.” Links Website: Ei8ht Street Funding https://www.ei8htstreetfunding.com/ Book: BE 2.0 https://www.amazon.com/BE-2-0-Beyond-… Website: RCN Capital https://www.rcncapital.com/podcast Website: REI INK https://rei-ink.com/

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Marcus & Millichap (NYSE:MMI), a leading commercial real estate brokerage firm specializing in investment sales, financing, research and advisory services, announced it has released its Markets with Momentum report. The report cites key national multifamily performance statistics from February on rent growth, lease renewals, and vacancy. Five select markets with significant momentum are highlighted. “While markets that registered the most performance momentum early this year are mostly in areas where solid results were anticipated, a handful of markets showed unexpected performance momentum in early 2024,” said John Sebree, national director of Multi Housing Division, Marcus & Millichap and IPA. Highlights of the report include: “In a particularly encouraging result, national vacancy among stabilized Class A communities was unchanged during the first two months of 2024, even when sizable rent concessions were offered at the newest luxury properties still going through the initial lease-up process,” said Greg Willett, national director, research services, IPA. Access Marcus & Millichap’s Institutional Multifamily Market Intelligence Report here. About Marcus & Millichap, Inc. (NYSE: MMI) Marcus & Millichap, Inc. is a leading brokerage firm specializing in commercial real estate investment sales, financing, research and advisory services with offices throughout the United States and Canada. As of December 31, 2023, the company had 1,783 investment sales and financing professionals in over 80 offices who provide investment brokerage and financing services to sellers and buyers of commercial real estate. The company also offers market research, consulting and advisory services to clients. Marcus & Millichap closed 7,546 transactions in 2023, with a sales volume of approximately $43.6 billion. For additional information, please visit www.MarcusMillichap.com. About Institutional Property Advisors (IPA) Institutional Property Advisors (IPA) is a division of Marcus & Millichap (NYSE: MMI), a leading commercial real estate services firm in North America. IPA’s combination of real estate investment and capital markets expertise, industry-leading technology, and acclaimed research offer customized solutions for the acquisition, disposition and financing of institutional properties and portfolios. For more information, please visit www.institutionalpropertyadvisors.com

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Sharestates, an originator and servicer in the private lending and loan syndication industry, announced a landmark legal victory in a case at the heart of mortgage enforcement and lending industry business practices. The case is considered a landmark victory with wider industry implications because the court’s ruling underscores the principle that if a party takes out a mortgage and receives its benefits, the mortgage will be deemed valid, and parties who accept the benefits of a transaction cannot later contest its validity to gain an unfair advantage. The plaintiffs, Cassaforte and FRF 348 Quincy, began the case in October 2019 and asserted that the defendants Sharestates, Amtrust, Atlantis, Pourtavoosi had breached contractual and fiduciary duties by refinancing three Brooklyn properties without authorization, resulting in debt incurred on behalf of the plaintiff without their consent. They sought to void the mortgages held and serviced by Sharestates and Toorak. The court ruled in favor of Sharestates based on two important legal principles: Sharestates’ defense of equitable estoppel was based on documentary evidence showing that the plaintiffs received the loan proceeds and that their representative, Aaron Johnson, had the authority to enter into the loan agreements. The court ruled that since the plaintiffs received the loan benefits and did not offer to return any part of the proceeds, they were estopped from contesting the validity of the mortgages. The plaintiff attempted to have the case heard by the Supreme Court, Appellate Division, but that motion was denied, concluding the case in favor of Sharestates in March 2024. Colin Kaufman and Courtney Lerias of Adam Lietman Bailey led the legal defense in this precedent-setting case. Sharestates has also recently had some other notable successes with precedent-setting cases. To subverge appraisal fraud and appraisal negligence, Sharestates brought several suits against inflated or negligent appraisals and had favorable outcomes with value being returned to investors. To remedy inequities in the business purpose lending space and bolster the enforcement of its mortgages, Sharestates has made compelling arguments about mortgage validity in unique situations. In another recent case, the Housing Trust Fund Corporation (HTFC) attempted to void a Sharestates mortgage due to reversionary rights it had in the historical chain of title. The Judge ruled that indemnification language in the reversionary clause evidenced the HTFC clearly contemplated that the properties would be mortgaged and such mortgages should remain on the properties after “automatic reversion”, ultimately enforcing the Sharestates mortgage. Sharestates General Counsel Amy Doshi stated, “These victories underscore Sharestates’ commitment to upholding the legal integrity of its paper, reducing exposure to fraud, and protecting the interests of its investors. Additionally, in the commercial business purpose space that is not heavily regulated, we are committed to enhancing our underwriting and originating standards to move and grow with the ever-evolving industry norms. We have been spending a considerable amount of time and effort on exploring and implementing smarter and more efficient tools to enhance our credit quality and originations to result in consistent returns and lower-risk investments.” “During the recent market slowdown, Sharestates capitalized on the opportunity to bolster its operations infrastructure and talent pool, dedicating resources to enhance its underwriting and servicing standards by integrating advanced technologies into its operations,” added Richard Wisniewski, Chief Investment Officer. Specifically, Sharestates has integrated new robust risk management protocols with the inclusion of Lexis Nexis Smartlinx reports, Fraud Guard reports, and Prudent AI for bank fraud detection, among others. Sharestates also completed onboarding to the MERS settlement system. This move not only streamlines processes but also enhances transparency and efficiency in loan servicing operations. Additionally, implementing enhanced loan recovery methods on defaulted loans, such as credit reporting of defaults and foreclosures to personal guarantors’ credit, alongside traditional foreclosure and workout options, underscores Sharestates’ dedication to maximizing investor returns while mitigating risks. Tina DelDonna, Chief Financial officer, emphasized that “This strategic re-focusing has positioned the firm for accelerated growth as interest rates stabilize.” About Sharestates Sharestates is a national private lender focused on non-owner-occupied residential and commercial properties. The company creates customized lending solutions for real estate developers and has successfully funded over $3.5 billion in projects nationwide. Since its founding in 2013, Sharestates has been an important source of private capital to real estate investors nationwide seeking short-term bridge financing for rehabilitation projects and long-term DSCR loans for rental properties. Sharestates funds loans from $100,000 to $10,000,000 on residential (SFR 1-4), multifamily, mixed-use, and commercial properties. Its loan programs include residential bridge, fix & flip, new construction, portfolio, and rental loans. As a partner to its developers, Sharestates manages the servicing of loans it originates through successful repayment to ensure the needs of its developers are met throughout the loan lifecycle. Sharestates’ technology platform allows the Company to more efficiently source and qualify investment opportunities on real estate projects nationwide and create investment products that are resold to institutional and accredited retail investors. Sharestates’ end-to-end approach to technology and vertical integration allows the Company to capture higher margins and leverage its expertise. Sharestates was founded by real estate veterans and its success is attributed to a strong leadership team, an easy-to-use platform, sensible underwriting practices, and a relationship-focused lending strategy. Sharestates partners with direct borrowers and brokers. To learn more visit www.sharestates.com.

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Nationally, the week of April 14 will have the best mix of market conditions for sellers, who could get $34,000 more for their home than at the start of the year Those looking to sell their home this year should start to get ready now, as the best week to sell a home is April 14-20, 2024, according to a new analysis from Realtor.com®. Nationwide, sellers listing during that week are likely to see the best conditions for listing prices, buyer demand and sales pace, as well as lower chances of price reductions and competition from other sellers. A recent survey from Realtor.com® found that the majority (53%) of home sellers took one month or less to get their home ready to list, so the time to start prepping is now. “Spring is generally the high season for home sales, and buyers tend to be more plentiful earlier in the year,” said Realtor.com® Chief Economist Danielle Hale. “Because listing a home is a process, sellers should start preparing now so they can list their home at a time when conditions are likely to be most favorable, giving them the best chance of selling their home quickly and at a competitive price.” Why is April 14-20 the best time to sell in 2024?While some home buyers are waiting for mortgage rates to fall further before entering the housing market, it’s still a good time for homeowners to sell as buyers continue to be in need of more for-sale options, with inventory still almost 40% below pre-pandemic levels. Those looking to take advantage of seasonal market trends should consider getting ready to list April 14-20 for the best mix of market conditions for sellers, including: Key factors for the 2024 housing market and tips for getting readyThe 2024 housing market is expected to behave according to typical seasonality, but will likely offer slightly better conditions than in 2023. According to Realtor.com®‘s survey, it took most recent sellers (72%) between 2 weeks and 3 months to prepare their home for sale, with the sweet spot being between two weeks and a month (37%). For almost half (48%), it took less time than expected to list their home, while 11% said it took more time than they expected. Here are some market and other factors for sellers and buyers to keep an eye on as they navigate the spring housing market and beyond: SOURCE Realtor.com

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Flipping Activity by Investors Declines at Fastest Pace in 15 Years; Investment Returns on Flips Sink to Lowest Level Since 2007; Two-Thirds of Flipped Homes Still Purchased with Cash ATTOM, a leading curator of land, property, and real estate data, released its year-end 2023 U.S. Home Flipping Report, which shows that 308,922 single-family homes and condos in the United States were flipped in 2023. That was down 29.3 percent from 436,807 in 2022 – the largest annual drop since 2008. The report further reveals that as the number of homes flipped by investors declined, so did flips as a portion of all home sales, from 8.6 percent in 2022 to 8.1 percent last year. In yet another sign of down times for the home-flipping industry, profits and profit margins also sank on quick buy-renovate-and-resell projects. Gross profits on typical home flips in 2023 dropped to $66,000 nationwide (the difference between the median sales price and the median amount originally paid by investors). That was down from $70,100 in 2022 and translated into just a 27.5 percent return on investment compared to the original acquisition price. The latest nationwide ROI (before accounting for mortgage interest, property taxes, renovation expenses and other holding costs) was down from 28.1 percent in 2022 and 35.7 percent in 2021, hitting the worst level since 2007. Investors saw their profit margins decrease for the sixth time in the past seven years as the median price of the homes they flipped dipped slightly faster than the median price they had paid to purchase properties – 4.4 percent versus 4 percent. “In 2023, the landscape for home flipping across the U.S. became increasingly challenging,” remarked Rob Barber, CEO at ATTOM. “Whether the overall market has soared or seen just modest gains in recent years, investors have missed out on the action.” He added that “the sharp decline in the number of home flips likely reflected a combination of a tight supply of homes for sale as well as dwindling returns. Either way, it will take some significant reworking of the financials for home flipping fortunes to turn back around.” The latest drop-off in home-flipping profits came during a year when the nation’s decade-long home-price runup began to stall, leading to the weakest annual price gains since 2012 and a slight dip in profits for sellers of all kinds. But margins for home flippers had already been declining during earlier years when the broader housing market was booming. As that happened, the profit gap between investors and all sellers gradually widened. Typical returns in 2023 remained at levels that could easily be wiped out by the carrying costs during the renovation and repair process, which usually consume 20 to 33 percent of the resale price. Home flipping rates fall in most housing markets, with biggest decreases in the South and West Home flips as a portion of all home sales decreased from 2022 to 2023 in 112 of the 212 metropolitan statistical areas analyzed in the report (53 percent). The top 25 largest decreases in annual flipping rates all were in the South and West. They were led by Gainesville, GA (rate down from 15.1 percent in 2022 to 9.9 percent in 2023); Phoenix, AZ (down from 16.3 percent to 11.9 percent); Prescott, AZ (down from 9.8 percent to 6 percent); Charlotte, NC (down from 14.2 percent to 10.6 percent) and Provo, UT (down from 10.9 percent to 7.5 percent). Aside from Phoenix and Charlotte, the biggest decreases in flipping rates from 2022 to 2023 in metro areas with a population of 1 million or more were in Las Vegas, NV (rate down from 12.2 percent to 8.9 percent); Sacramento, CA (down from 9.9 percent to 6.9 percent) and Tucson, AZ (down from 14.6 percent to 11.8 percent). Metro areas where home flipping rates increased from 2022 to 2023 were led by Macon, GA (rate up from 12.1 percent to 17 percent); Gulfport, MS (up from 3.9 percent to 7.7 percent); Jackson, MS (up from 5.8 percent to 8.4 percent); Columbus, GA (up from 10.9 percent to 13.5 percent) and Dayton, OH (up from 10 percent to 12.4 percent). Home flips purchased with financing tick upward Nationally, the percentage of flipped homes originally purchased by investors with financing increased in 2023 to 36.5 percent, up from 35.7 percent in 2022 and from 36.2 percent in 2021. U.S. Home Flipping Financing Trends Meanwhile, 63.5 percent of homes flipped in 2023 were originally bought with cash only, down from 64.3 percent in 2022 and from 63.8 percent two years earlier. Among metropolitan areas with a population of 1 million or more and sufficient data to analyze, those with the highest percentage of flipped homes purchased by investors with financing in 2023 included San Diego, CA (56.4 percent); Seattle, WA (56.1 percent); Fresno, CA (52.2 percent); Providence, RI (49.2 percent) and Boston, MA (48.6 percent). In that same group, the metro areas with the highest percentage of flips purchased with all cash included Detroit, MI (81.6 percent); Cleveland, OH (76.3 percent); Buffalo, NY (75.5 percent); Pittsburgh, PA (71.1 percent) and Birmingham, AL (70.2 percent). Typical gross profits on home flips decline in nearly two-thirds of nation Homes flipped in 2023 were sold for a median price nationwide of $306,000, generating a gross flipping profit of $66,000 above the median original purchase price paid by investors of $240,000. That national gross-profit figure was down from $70,100 in 2022 and from $75,000 in 2021, which was the highest level this century. U.S. Home Flipping Gross Profits Among the 56 metro areas in the U.S. with a population of 1 million or more, those with the largest gross flipping profits on median-priced transactions in 2023 were San Jose, CA ($275,250); San Francisco, CA ($170,000); Boston, MA ($158,000); New York, NY ($154,750) and San Diego, CA ($153,000). The weakest gross flipping profits among metro areas with a population of at least 1 million in 2023 were in Austin, TX ($18,640 loss); San Antonio, TX ($12,289 profit);