The housing market has made its way back from crisis times, but investors still face unexpected challenges. The key to investors' ability to capitalize on opportunities that exist is knowledge.
Participants in the Investment Lab at the 12th Annual Five Star Conference and Expo on September 17 delved into the investment strategies and discussed how to be successful in a highly competitive market. Industry panelists from a number of companies came together in the lab to talk about regulation, non-depository lending, mortgage servicing rights, and REO to loan products in the three and a half hour lab.
 |
| Team Thayer Housing News Eugene Oregon |
The director of the lab, David Tobin, a principal at one of the industry's most respected loan sale advisory firms, Mission Capital Advisors. Tobin has extensive experience in loan sale advisory transactions, investment banking and commercial real estate debt, and equity raising.
To kick off the conversation, Phil Comeau, CEO of Phillip E. Comeau Company, Inc., discussed the topic of regulatory challenges in the investment space by asking attendees to raise their hands if they were not familiar with the TILA-RESPA Integrated Disclosure (TRID) rule. To his surprise, the majority of attendees raised their hands indicating their unfamiliarity with TRID.
Of the rule and the lack of knowledge demonstrated by the audience, Comeau said, "TRID will fully bake over the next decade," and also noting that "TRID is a solution looking for a problem."
Jeremy Burcham, chief strategy officer at The Compliance Group added, "TRID will pose challenges well after the effective date, it's one of those regulations that people are worried about overcoming it instead of complying with it."
As for TRID's direct impact on the investment space, Tim Herriage of Herriage Holdings, LLC, said that the rule will be "good for the investment business and flipping will be slowed, which will stabilize the industry and reduce margins."
Josh Stech, VP of Business Development at LendingHome told DS News that the results of a recent investor poll by the company discovered that investors would like to diversify deal sourcing, add new exit strategies, save on capital costs, and borrow more money.
"As a lender at LendingHome, the problem is creating a better, simplified mortgage process with the ability to have a one-stop shop for borrowers," Stech said. "This is something that is needed nationally and we believe we are doing a great job of moving toward this goal."
Technology was deemed as one of the biggest issues in lending.
Mark Filler, CEO of Jordan Capital, noted that non-depository lending positively impacts investment strategies due to the "wider range and variety of programs that are available compared to a couple of years ago."
In addition, David Caballero, CEO of Home Servicing addressed the REO to loan product, while Jason Shapiro, regional head of B2R Finance discussed single-family rental investments.
Justin Lee Thayer is Lane counties expert in market analysis for real estate investors. Call Justin @ 541-543-7287