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The Future of Foreclosures

What are you seeing in the residential real estate market?

In Arizona, we are seeing a shortage of inventory. Typically, in a normal market we see about 25,000 homes on the market available for sale. Currently there are about 7000. We are going through a sellers’ market right now. For example, if we had 10,000 people moving to the state monthly and consider perhaps hypothetically only 30% or around 3000 of those are Home Buyers. That means they roughly have around to houses to look at on average that they can buy. In a normal market that number would be around eight houses per buyer. This is not taking into consideration current people living in the state that are looking also to buy. So, we have a few factors to consider for buying groups. Existing in state buyers and new move-ins. There’s just not enough inventory on the market right now. Also, builders cannot build houses fast enough for the demand. 

What do you see happening in the short term by the end of the year? 

Foreclosures currently are up right now however overall; they are down less than last year. Overall, in the US in the month of August there was around 10,000 Foreclosure fillings. Arizona Did not make the top five list for the most for closure filings in August. Foreclosures have Halted by many protocols currently until the first of the year nationwide due to COVID-19. When Foreclosures come back, I don’t really see a flood hitting the market in Arizona. I see the trustees and banks spreading these out over time to create a healthy foreclosure market rather than a flood. I feel like with the current demand for real estate and buyers they will be OK deals but nothing like we saw in the fall out of 2009 where some properties were purchased at a third of the current market cost.

What do you see happening in 2021? 

2021 naturally will have more foreclosures because the regulations from COVID-19 will be lifted. I see this increasing the numbers are for closures maybe by 20% in Arizona.

What are you doing to make the most out of opportunities coming or to protect yourself against losses? 

The best thing for opportunity currently in the market is cash is king. Make sure that you are flush with Capital to jump on any opportunity that comes up add a discount to buy it. As always if you’re flipping real estate you need to get in and get out fast. Cash talks to buy at foreclosure Auction and Wholesale. Don’t be caught sitting on the sidelines waiting for a better day. Take advantage of the current market conditions and the opportunities to make money in real estate. Whether were in a down market or up market there’s always opportunity. 

How do you explain some areas doing better while others crumble?

You may hear of some areas doing better in real estate than others. I’ve recently have read Some of the bigger cities are losing population and some of their real estate prices have dropped. Arizona currently feels like we are in a great economy and back to there is more demand for housing then supply. It seems to me that job creation and job opportunity is there. I have a friend that manages close to 2000 houses in the Arizona market and has collected 95% of rent for August which is great to hear.

What reports or sources do you trust or subscribe too?

A few resources that I would suggest listening to and subscribing to is the Cromford report by Michael Orr in Arizona. As far as Arizona this report is great predicting forecast and current situations in the news. On a national scale I like to also keep up with DS news.

What are you focusing on in your upcoming book and how are you trying to make it somewhat timeless if at all?

My focus in the upcoming book is to release all my secrets the last 15 years in working in real estate. I want people to have a good understanding of what the foreclosure market is and how to buy houses at auction. I want them to have the education needed and the tools needed to make the correct decisions to make money in real estate with her flipping or building a rental portfolio. I want them to go away after reading this book feeling confident to make the right decisions and to jump in and do well investing in real estate.

Do you have any personal investing beliefs that have changed or evolved over the years?

My personal investing beliefs Are to wake up and win every day. Wake up and get up every single morning with the attitude that you’re going to make the best of it. That every given day you are allowed to work in this beautiful free country to make the best of it. I am personally lucky to live in such an awesome state to do real estate. Phoenix, Arizona is one of the largest cities in the US and there is plenty of opportunity to make money in real estate. You must always keep your eyes and ears always open.

How have you diversified, had fun, or satisfied some of your passions with your investments.?

I wake up and show up every day to do real estate. That is my passion in life. That is my number one choice. However, I have had to diversify and satisfy some of my other passions with my investments. Including owning two family restaurants with my father Clay Caldwell. One in which is a famous barbecue restaurant in Arizona serving the best Texas barbecue ever called Caldwell County BBQ. The family has been in the restaurant business for over 30 years. In fact, the last restaurant was a 1980 distressed residential property turned into a BBQ haven in Gilbert Arizona. Some of the best advice I ever received when I started doing real estate 15 years ago was from a friend who said please put a little bit in the stock market every month. I have kept my word and I have enjoyed being able to have a stock market play. Along with Real estate comes the joy and pleasure of having other companies that I work with and invest in to help investors function. Such as a Hard Money companies, flip funds, buy and hold funds etc. The real estate is my joy and pleasure. It’s important to diversify your portfolio.

Spencer Caldwell is currently the owner of Gentry Real Estate out of Gilbert, Arizona. He has over 150 realtors at his firm. He has had the wonderful opportunity of helping thousands by flip and rental opportunities at Auction and Wholesale. He recently sold one of the nation’s larger property management firms. He is also an owner and AZ flat fee Giving homeowners the opportunity to save money when they list the property. He has several other businesses in ventures one with which he serves some of the most delicious barbecue west of the Mississippi at his family restaurant Caldwell County BBQ in Gilbert, Arizona. 

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