2024 – Page 6 – REI INK

ZOMBIE FORECLOSURES REMAIN SPARCE AROUND U.S. IN FOURTH QUARTER AMID ONGOING STRONG HOUSING MARKET

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Zombie-Property Trends Follow Decrease in Overall Foreclosure Cases ATTOM, a leading curator of land, property data, and real estate analytics, released its fourth-quarter 2024 Vacant Property and Zombie Foreclosure Report showing that 1.4 million (1,355,909) residential properties in the United States are vacant. That figure represents 1.3 percent, or one in 77 homes, across the nation – virtually the same as in third quarter and up just slightly from a year ago. The report analyzes publicly recorded real estate data collected by ATTOM — including foreclosure status, equity and owner-occupancy status — matched against monthly updated vacancy data. The report also reveals that 215,601 residential properties in the U.S. are in the process of foreclosure in the fourth quarter of this year, down 3.3 percent from the third quarter of 2024 and down 32.8 percent from the fourth quarter of 2023. Among those pre-foreclosure properties, about 7,100 sit vacant as zombie foreclosures (pre-foreclosure properties abandoned by owners) in the fourth quarter of 2024. That figure is slightly above the number in the prior quarter, but down 20.2 percent from a year ago. The latest count of zombie homes extends a long-term pattern of those properties representing only a tiny portion of the nation’s total housing stock, currently at just one of every 14,591 homes around the U.S. The ratio is virtually unchanged from one in 14,776 in the prior quarter, but well down from one in 11,412 in the fourth quarter of last year, marking one of the lowest levels in the past five years. Zombie foreclosures, which can attract vandals and spread neighborhood blight, continue to have little or no impact on most local housing markets. That phenomenon remains one of many enduring effects of a housing market boom around the nation now in its 13th year. “The near-total disappearance of zombie foreclosures has been and still is one of the more subtle, but important benefits of the country’s soaring housing market. Those properties have gone from a plague in many areas of the U.S. following the Great Recession of the late 2000s, when millions of homes fell into foreclosure, to a distant memory in most communities today,” said Rob Barber, CEO for ATTOM. “That’s unlikely to change much in the near future given that record home prices are keeping home-equity levels at historic highs and foreclosures cases dropping. On top of that, the supply of homes is so tight that even when a property is abandoned, buyers are more likely to swoop in and pick it up.” Zombie foreclosures up by small amounts quarterly around U.S. while down annually A total of 7,109 residential properties facing possible foreclosure have been vacated by their owners nationwide in the fourth quarter of 2024, up 1.5 percent from 7,007 in the third quarter of 2024 but down from 8,903 in the fourth quarter of 2023. The number of zombie properties has gone up quarterly in 30 states – usually increasing by less than 20. The number has declined or stayed the same in 20 states. The biggest percent decreases from the fourth quarter of 2023 to the fourth quarter of 2024 in states that had at least 50 zombie homes a year ago are in Connecticut (zombie properties down 87 percent, from 100 to 13), Iowa (down 76 percent, from 281 to 68), North Carolina (down 73 percent, from 195 to 53), New Mexico (down 72 percent, from 81 to 23) and Oklahoma (down 71 percent, from 197 to 58). The only annual increases among states that had at least 50 zombie foreclosures in the fourth quarter of 2024 have come in Kansas (zombie properties up 126 percent, from 35 to 79), Arizona (up 114 percent, from 28 to 60), Florida (up 65 percent, from 1,199 to 1,974), Texas (up 52 percent, from 126 to 191) and New Jersey (up 14 percent, from 188 to 215). 2024 Zombie Foreclosure Infographic Overall vacancy rates change by tiny amounts The vacancy rate for all residential properties in the U.S. has remained virtually the same for 11 quarters in a row, hovering around 1.3 percent. The latest figure of 1.31 percent (one in 77 properties) is the same as in the third quarter of 2024 and up slightly from 1.27 percent in the fourth quarter of last year. States with the highest vacancy rates for all residential properties are Oklahoma (2.37 percent, or one in 42 homes, during the fourth quarter of this year), Kansas (2.28 percent, or one in 44), Missouri (2.15 percent, or one in 47), Alabama (2.11 percent, or one in 47) and West Virginia (2.08 percent, or one in 48). Those with the lowest overall vacancy rates are New Hampshire (0.34 percent, or one in 296 homes), Vermont (0.40 percent, or one in 248), New Jersey (0.46 percent, or one in 216), Idaho (0.50 percent, or one in 200) and Connecticut (0.57 percent, or one in 175). Other high-level findings from the fourth quarter of 2024: Media Contact: Megan Hunt megan.hunt@attomdata.com Data and Report Licensing: datareports@attomdata.com

From $0 to $135M in Lending: Building a Lending Empire in Just Two Years

Brian Valdivia is the founder of Beltway Lending, a lending company focused on providing tailored financing solutions for real estate investors. Since founding Beltway Lending in 2022, Brian has scaled massively, with Beltway Lending originating $135 million in loans and his real estate portfolio growing to include 175 rental properties. Listen now to learn more about Brian’s rapid growth in real estate, his strategy for success, and what you can do to replicate it! Quotables “Sometimes it’s really hard to get started, but the second that I made that offer and had it under contract, it’s like the mental block is gone.” “The big thing is the conversations that you’re going to have everyday, it’s on-the-job training. I was learning to be a better investor and I didn’t even know it.” “Help someone else get started and believe me, it’s gonna keep going. You’re going to learn so much more just from teaching as well.” Links Website: Beltway Lending https://beltwaylending.com/ Website: RCN Capital https://www.rcncapital.com/podcast Website: REI INK https://rei-ink.com/ Email: RCN Capital info@rcncapital.com

Scaling Successfully & Pivoting in Market Shifts

Ryan Deasy and Mike Doherty are the managing partners of Skytree Investments LLC, a private real estate investment firm based in Farmington, Connecticut. Ryan and Mike got into real estate investing for different reasons but came together ultimately for the same purpose – to grow and succeed through real estate investing. From their first investments to building Skytree Investments, they reveal the lessons learned, the importance of partnerships, and how they scaled their business. They also dive into their favorite marketing tools and insights on navigating economic challenges. This episode is packed with actionable tips for anyone looking to make a mark in real estate! Quotables “Trust is the foundation of every successful partnership; without it, scaling is nearly impossible.” “Someone will always need a roof over their head, no matter what the market does.” “The real challenge isn’t finding the deals; it’s having the capital and the right partnerships to make them work.” Links Skytree Investments https://www.skytreeinvestments.com Sky’s The Limit https://open.spotify.com/show/4RLz8Jy… Deal Machine App https://dealmachine.com Launch Control https://www.launchcontrol.us MileIQ https://www.mileiq.com RCN Capital https://www.rcncapital.com/podcast Website: REI INK https://rei-ink.com/

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ServiceLink is reinforcing its commitment to innovative technology enhancements and expanding its best-in-class products and services with the appointment of Hemanth Panyam as its senior vice president of product innovation. Panyam, a data-oriented, hands-on leader, has more than 20 years of product innovation, management and strategy experience. Over the course of his career, he launched multiple 0-1 products and scaled numerous SaaS technology products for some of the nation’s largest technology-led services and businesses in the healthcare and financial sectors. His extensive expertise in product management and strategy includes scaling multiple SaaS and technology consulting businesses from $0 to $300 million in revenue across various industries and geographies. In this role, Panyam will be responsible for bringing new, innovative products and services to life at ServiceLink, teaming up with operations and sales to meet the needs of our clients. He will report directly to chief technology officer Kiran Vattem and build a team that is focused on systematically identifying ways to improve and innovate the mortgage space through products and services. “I am excited to bring my extensive knowledge and experience to ServiceLink that is grounded in technology and innovation that challenges the status quo. I look forward to deeply examining client-consumer touchpoints to analyze and then create disruptive innovations that will impact the mortgage landscape,” Panyam said. “I want to make a meaningful impact in people’s lives by removing friction and elevating their experience in the mortgage space.” Over the course of his career, Panyam worked across the healthcare, retail and fintech industries, building cutting-edge technology products. His efforts have taken him across the world, where he founded, led and scaled the digital products and solutions for a U.S.-based Fortune 200 firm in Australia and New Zealand, built and exited a retail start up that he co-founded and played a pivotal role as the first member of the India team for a startup that went on to make waves in the healthcare technology space. He excels at creating multi-year product strategies and leading large teams through the build, launch and scale processes.

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The vast majority of respondents to a recent Redfin survey believe there should be caps on the amount landlords are allowed to increase rent, regardless of whether they’re Democrats or Republicans—however, Redfin economists say rent control worsens housing affordability in the long run More than four of every five U.S. residents (82%) believe there should be caps on the amount landlords are allowed to increase rent, according to a new survey commissioned by Redfin (redfin.com), the technology-powered real estate brokerage. The survey data in Redfin’s report is from a commissioned survey conducted by Ipsos in September 2024. The survey was fielded to 1,802 renters and homebuyers aged 18-65, including 188 who live in California. Caps on rent increases, also known as rent control, give governments the authority to put a lid on how much landlords are allowed to increase rent each year. The White House proposed a federal rent control policy in July; the policy would cap rent increases on existing units at 5% nationwide. Only seven states and Washington, D.C. currently have state or local rent control policies in place. The vast majority of respondents believe there should be caps on the amount landlords are allowed to increase rent, regardless of their political affiliation or whether they own or rent the home they live in: Redfin economists say rent caps can increase rental costs because they make the supply shortage worse Although most of the people surveyed support rent caps, Redfin economists say that in reality, rent caps increase costs in the long run. “Rent control sounds appealing for renters in theory because it limits price increases and saves money in the short term, but it eventually worsens rental affordability because it exacerbates the supply shortage,” said Chen Zhao, Redfin’s economic research lead. “If rent increases are capped below the amount developers would need to make a profit, they have little incentive to build more apartments and homes. The best way to make rentals more affordable is to build more units.” 78% of Californians support rent control Nearly four of every five respondents who live in California (78%) believe there should be caps on rent increases, similar to the share for the U.S. as a whole. California already has statewide rent control: The Tenant Protection Act says landlords may not raise rent more than 5% plus the increase in cost of living (inflation) each year. Rent control is in the news in California in the run-up to the election because there’s a proposition on the November ballot that would allow cities to expand rent control. For instance, city governments could limit annual rent increases to less than 5%, and the state couldn’t intervene. To view the full report, including a chart, please visit: https://www.redfin.com/news/survey-homeowners-renters-support-rent-hikes

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ATTOM, a leading curator of land, property data, and real estate analytics, released its third quarter 2024 U.S. Home Equity & Underwater Report, which shows that 48.3 percent of mortgaged residential properties in the United States were considered equity-rich in the third quarter, meaning that the combined estimated amount of loan balances secured by those properties was no more than half of their estimated market values. That level was down from a recent peak of 49.2 percent hit in the second quarter of 2024. However, it was still up from 47.4 percent a year earlier and remained historically high, reflecting one of the enduring effects of a housing market boom around the nation that has lasted more than a decade. Much the same pattern emerged during the third quarter for the portion of home mortgages that were seriously underwater. Just 2.5 percent of mortgaged homes fell into that category, with combined estimated balances of loans secured by properties that are at least 25 percent more than those properties’ estimated market values. That was slightly worse than the 2.4 percent recorded in the prior quarter and the same is in the third quarter of 2023. “Homeowner equity typically mirrors home-price trends, and the third quarter of this year followed that pattern. Equity remained elevated as the value of residential properties has surged consistently over the years. However, it held steady this quarter, reflecting the cooling of earlier sharp price increases,” said Rob Barber, CEO for ATTOM. “Despite the flat pattern, home equity keeps providing a significant boost to the economy in the form of financial leverage that tens of millions of households can use to finance major purchases or investments.” He added that “we can expect to see small movements up or down over the coming months as the housing market moves into its annual slow season.” The latest equity pattern comes as the market remains strong throughout most of the nation but also faces a mix of forces that could either keep it going upward or flatten it out. Equity-rich shares of mortgages dip quarterly but remain up annually in majority of statesThe portion of mortgaged homes that were equity-rich during the third quarter of 2024, 48.3 percent, remained far above the 26.5 percent level recorded in early 2020. Although it decreased in 28 of the 50 U.S. states from the second quarter to the third quarter of 2024, typically by less than two percentage points, it continued to be up annually in 37 states. Annual increases generally tilted more toward low- and mid-priced markets around the country, concentrated in the Midwest and Northeast regions. The increases were led by Vermont (portion of mortgaged homes considered equity-rich increased from 79.8 percent in the third quarter of 2023 to 86.4 percent in the third quarter of 2024), West Virginia (up from 30.5 percent to 37 percent), Connecticut (up from 41.5 percent to 47.7 percent), New Jersey (up from 45.9 percent to 52 percent) and Rhode Island (up from 54.7 percent to 60.6 percent). At the other end of the scale, equity-rich levels declined more often in western states, led by Utah (down, year over year, from 56.8 percent to 52.4 percent), Arizona (down from 54.3 percent to 50 percent), Colorado (down from 51.1 percent to 48 percent), Washington (down from 56.7 percent to 54.6 percent) and Oregon (down from 52.7 percent to 50.8 percent). Seriously underwater mortgage levels change by small amounts in most statesThe portion of mortgaged homes considered seriously underwater across the U.S. barely changed during the third quarter. It stood at one in 40, which was up slightly from one in 42 during the second quarter but the same as a year earlier – and well below the ratio of one in 15 recorded in 2020. The rate worsened quarterly in 30 states, though it was still better annually in 24. The biggest annual improvements in seriously underwater mortgages came in Wyoming (share of mortgaged homes that were seriously underwater down from 5.9 percent in the third quarter of 2023 to 2.4 percent in the third quarter of 2024), West Virginia (down from 4.6 percent to 3.8 percent), Louisiana (down from 10.8 percent to 10.1 percent), Illinois (down from 4.4 percent to 4.1 percent) and New Jersey (down from 1.9 percent to 1.6 percent). On the flip side, the largest year-over-year increases in the percentage of seriously underwater homes during the third quarter of 2024 were in Kansas (up from 2.6 percent to 4.4 percent), Utah (up from 1.8 percent to 2.4 percent), South Dakota (up from 2.6 percent to 3.1 percent), Missouri (up from 3.9 percent to 4.3 percent) and Colorado (up from 1.7 percent to 2 percent). High-end markets clustered in Northeast and West continue to benefit from best equity-rich ratesThe 10 states with the highest levels of equity-rich mortgaged properties around the U.S. during the third quarter of 2024 again were in the Northeast or West regions. Those with the largest portions were Vermont (86.4 percent of mortgaged homes were equity-rich), Maine (62.2 percent), New Hampshire (61.1 percent), Rhode Island (60.6 percent) and Montana (60.5 percent). Nine of the 10 states with the lowest percentages of equity-rich properties during the third quarter of 2024 were in the Midwest or South. The smallest portions were in Louisiana (21.1 percent of mortgaged homes were equity-rich), Alaska (31.9 percent), North Dakota (33.2 percent), Maryland (33.2 percent) and Illinois (34 percent). Among 107 metropolitan statistical areas around the nation with a population of at least 500,000, upscale markets where median home values surpassed $450,000 topped the list of places with the highest portion of mortgaged properties that were equity-rich during the third quarter. See this ATTOM report for home values: Home Seller Profit Margins Drop Slightly Across U.S. as Housing Market Slows During Third Quarter They were led by San Jose, CA (68.7 percent equity-rich, with a third-quarter median home price of $1.5 million); Portland, ME (64.6 percent, with a median price of $520,000); San Diego, CA (64.1 percent, with a median price of $885,000); Los Angeles, CA (63.9 percent, with a median price of $949,375) and Buffalo, NY (63.7 percent, with a median price of $268,000). The leader in the South was Knoxville, TN (60.7 percent, with a median price of $345,949) while the Midwest was led again by Grand Rapids, MI (55 percent, with a median price of $327,520). Metro areas with the lowest percentages of equity-rich properties in the third quarter of 2024 remained mostly in lower-priced markets of the South and Midwest. The