The Off Market - May 1, 24 Edition

Welcome to Off Market by Goliath Data

The insider's guide to off-market properties.

If you’re new here and wondering why you’re receiving this, it’s probably because you interacted with one of our posts on Facebook or Bigger Pockets. If you’ve returned for another edition, welcome back! As a reminder, we break down the latest real estate data, give commentary (and hot takes) on trending topics, and provide resources to help you close more deals. Let’s dive in.

General Update

Things are going swimmingly: we officially hired another intern, signed a couple of new customers, and onboarded several new counties. The parcel mapping project is back on track, and we’ll soon have that rolled out. We recorded five episodes of the podcast last week and have another six scheduled for this week—those seem to be working. We also relocated to a new office in North Beach!

The initial feedback for the utility liens/mechanics liens/solar liens and court dockets has been positive, we’ll continue to test that over the next week or so. If you’re a customer and would like that enabled for your account, let us know.

Lastly, we just rolled out a referral program. We’ll pay 15% of the monthly subscription for a full twelve months. So if you refer something that signs up for $1000/mo, we’ll pay you $150/month.

Real Estate Data

Highlights

• 30 YR Fixed-Rate Mortgage: 7.51% vs 7.43% last week (source)
• Mortgage Applications - Purchase: -0.96% WoW, -14.73% YoY (source)
• Mortgage Applications - Refinance: -5.59% WoW, +3.30% YoY (source)

Real Estate Commentary

Spring is officially here and buyers are on the hunt for their next home. From May - June more homes trade hands than any other time of the year. If you are looking to sell, now is the time to get the house in order. You know the drill: new landscaping, a fresh coat of paint, and a very deep cleaning.

Real Estate Commentary

Lenders Are Buying Delinquent Multifamily Mortgage Loans

It is no secret that delinquencies on multifamily mortgages are piling up—record-high purchase prices combined with skyrocketing interest rates, and repair costs have made owning and operating portfolios of these properties very challenging. It's also no surprise that lenders, like to double dip on the loans they issue. This time they did it through bundles of collateralized loan obligations. To prevent the number of bad loans in those underlying portfolios from getting too high, the lenders have been unbundling them and buying loans back, to the tune of $520 million in the first quarter alone, a 210% increase on the same period last year.

CRE Distress Rates Continue to Rise

According to the latest data, CRE collateralized loan obligation (CLO) distress rates are continuing to rise. As of the end of the first quarter, CRE CLO distress rates surpassed 10% for the first time since their data collection began. The number of outstanding CLOs is also at an all-time high— at more than $80B. As performance at the asset level deteriorates, lenders will need to proactively work with borrowers to modify loans or they’ll face trouble. Hopefully not to the same extent as the last mortgage crisis.

The Top U.S. Cities—Where Prices are Surging

According to Realtor.com's analysis, while national home prices saw a modest 2% rise in March, the top 20 hottest markets experienced a more substantial annual increase of 5.3%. The Midwest and Northeast regions dominated these hot markets, with cities like Manchester-Nashua, NH; Rochester, NY; and Springfield, MA leading the way.

Resources

Off Market Podcast: Rebecca Hidalgo, The #1 Latina Agent in Arizona

Rebecca has always been a trailblazer. She first got into real estate in the 90s when HUD and VA Repo homes became popular. In the ‘07 mortgage crisis she transitioned to foreclosures and short sales, and most recently with the crypto boom, became the first fully crypto & metaverse certified real estate team. Rebecca is the #1 Latina Agent in Arizona, the #29 Latino realtor in all of the United States, and #1 BREA Agent in the Southeast Valley. She’s sold thousands of homes and has been ranked in the top half of the Top 1% of realtors. Tune in here.

Off Market Podcast: Neema Bardi, Youngest Real Estate Broker in CA History

This week we dropped the third episode of the Off Market podcast, featuring Neema Bardi, the youngest Real Estate Broker in CA History. Neema is a lifelong entrepreneur, who started out charging electric scooters and selling $8 coffees on the USC campus. When he learned about commercial real estate syndication, he was hooked! He graduated, became a realtor, and sold 20+ homes in his first three months. He then went out on his own, becoming one of the youngest brokers in history! Tune in here.

The Closing Bell

As always, thanks for reading! If you need introductions to investors, wholesalers, cash buyers, financing (EMD, double closes, rehab…etc.), or title companies you know where to reach us.

• Austin & Max