How Instant Gratification Affects The State Of The Market With Suzanne Andresen
Most real estate investors find it difficult to source their assets for their portfolios and forget to make sure they do the appropriate due diligence. In this episode, Suzanne Andresen shares some advice for the investors and explains how important conducting your due diligence is. She also talks about your lifestyle choice and how it affects your property to be under equity. Listen to this episode and hear what tips Suzanne provides for investors. Plus, she explains what the REI Referral Network is all about! — Watch the episode here Listen to the podcast here How Instant Gratification Affects the State of the Market with Suzanne Andresen I’m here with my good friend Suzanne Andresen. Suzanne, Thanks for stopping by. Thanks for having me. I’m glad you are here and in the interest of time, why don’t you go ahead and tell everybody a little bit about yourself. I have been in real estate for many years, selling real estate from my dorm room at the University of South Carolina in 1986 as a Hall Adviser. For whatever reason, I kept going forward with that and worked at several publications in the space but certainly am happy to be part of the ownership at REI INK Magazine. We love the publication we have. It’s been around for several years. It’s a well-respected messaging platform for the real estate investor space. We have also developed our referral network REI Referral Network, which is an opportunity for investors to connect with real estate professionals to help source acquisition and disposition strategies for their portfolio solutions. From there, we launched our Highest-and-Best acquisition platform, which is a way for investors to connect with assets that are off the market. It’s designed to premiere the assets on Tuesdays and go on contract by noon on Friday Eastern. Truthfully, it goes to the highest and best offer that’s been submitted. It’s been very successful and it’s a great way for investors to source some of the assets that are difficult to find and we found a way to make it successful for them. I’m a big fan of REI INK and the publication. You and Bob are doing an amazing job. Having been a real estate investor for many years, I get a lot of things in the mail. I enjoy getting it in the mail, looking at and reading it. I find a lot of value in it so kudos to you. What I like to do is start with what I call the Bottom Line Up Front, the BLUF. When I was in the Marine Corps as an intelligence guy, I would brief generals. The first thing you have to learn is you never buried the lead because you could get mortar fire or the general could have something more important to do. He may have to get up and leave. You need him to know the most important thing that you had to tell. Suzanne, try to cover the most important trends that you see in real estate, things that you see that maybe investors should be doing or if there’s anything you see or hear that investors shouldn’t be doing. My best advice to give investors is as they are finding it very difficult for them to source assets for their portfolios, make sure they do the appropriate due diligence. There are so many assets coming out of forbearance and foreclosure properties that they can miss overlooking important elements that can negatively affect the profitability. Some of the things that we do in our newsletter every Monday and Thursday are to feature stories and assets somewhere in the country. We share how it’s performing on the local MLS, both from a listing and selling perspective. You get good local market metrics for the information but we also then show what the rental rates are. This helps give some of the buy and hold investors, the opportunity to evaluate what they are using for their rental analysis and what they are charging for it. A lot of times, it gives investors an idea that they are probably undercharging. You can’t automatically go up $200 a month but you can start preparing to increase your rent for your tenants and get them to what the market rates should be. We also share some of the foreclosure and REO asset analysis through that area. Perhaps you like the market but not the asset that we are sharing. We are teaching you to source an asset and work with an asset management company. We have got great connections for that. It gives you the ability to buy your assets properly. It’s okay if there’s a municipal lien against it, you want to know that up front. Knowing that there are two years of delinquent real estate taxes, that’s not a big deal. You put that into your evaluation and how you are going to make your bid. That’s part of going about it with the correct due diligence. We are in a market where valuation is off the map that has to stabilize over time. We can’t maintain a 20% overvalued asset. In the 2014 market, we saw the real estate mortgage debacle and all of these issues coming out of it caused by bad lending practices. The term that came out of that was underwater. All these assets were under water. We are now facing a new term in this market. It’s Under Equity. I’m guessing it’s going to happen between the March and May 2023 timeframe. We are going to transition the underwater market to under equity, which is unfortunate for all of the investors or homeowners in this market because they have purchased these assets at a higher percentage rate and not going to be able to afford that when they sell. What it leads to for the investor market is a need for more rental properties and that’s how we need to make sure we go
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