Titan Impact Group - Future of Real Estate in 2021

My fellow compassionate capitalists, Steve and Catherine here. And today we're going to do a quick little slideshow presentation for you about the future opportunities in real estate in 2021. Mainly when it comes to buying notes. I know big time shocker. Well, for those of you who don't know who we are. We know who we are, but you may not. We're Titan Impact Group. We are the sentinels of the American dream. We are promised that we do. Our goal is to leave every person, property, community better than we found them. So who is Titan Impact Group and who's our team? Well, before we get started on this, it seems like a good time to do a little shout out to Scott Carson and we buy notes or excuse me, we close notes. Scott is not affiliated with this. However, just as an extra layer of protection, if you will, as far as doing due diligence. Scott is the owner and we buy notes. Excuse me, we close notes. And it's one of the largest and most successful note buying companies in the nation. And we are great friends and so we go back and forth and take a second look at each other's deals whenever we do make investments. So any investment that is made has been looked over and vetted very carefully. And our main core team, the three of us of course, is Katherine Bell, the president and co founder. She's former founder, CEO and managing director of a real estate investment hedge fund. She's an active investor of Buy and Hold, Airbnb builder, developer, mobile home park investor and private money lender. That's a mouthful. She's done it all. Investor relations and co founder, Steve Wall. That is a good looking guy right there. He's been in business and real estate owner for 20 plus years. He's a general contractor who has bought and sold many residential properties. And he has owned, managed and invested in the mobile home park market. Whoever wrote that deserves a raise. Of course we have, last but not least by any means, our portfolio manager, Laura Miller. Laura has been a real estate investor since 2004. Buy and hold one to four units. Airbnb investor, digital property manager, builder, developer and a private money lender. That was a mouthful. Mayor Apps. You'd like to know what exactly we do. Who are we? We are a Scottsdale Arizona real estate investing company. We focus on buying and selling non performing notes which are NPNs. We deal directly with banks and hedge funds. And the difference between as far as banks, you may wonder? Well, we're going to claim later on in this little program that we're the banks. The Difference is, is that banks are in the lending business, they are not in the real estate business. We, however, are in the real estate business. And that is why we are able to do what we do. And we'll explain that a little bit later on. But our team has done over well over 600 real estate investment deals over the past 10 years. So the thing is, is that we are small enough to give you custom personalization, customer service, but yet we are also big enough and experienced enough to get the job done. Let's just go over the numbers real quick of how bad things were back in 2008 and nine compared to today. So that we've. Because again, this is just the economic cycle coming around again. It's not like we haven't seen this before. And so we're going to take it back to the last time we saw this back in the crash of 2008. 9 unemployment was at 14.8%. It's currently right at 6%. And the 6% may be a little bit low just due to the fact that there are many people who have chosen to just not look for jobs anymore. So the mortgage default back then was 8.22%. Right now it's right, it's hanging about half that at 4.18%. 2.4 million people were 90 plus days late back then and today it's right about 2.1 million that are 90 plus days late. Forbearance back then was 9%. Forbearance now is 4.9%. So those are some of the numbers that we're looking at. And so people might ask, what are some of the factors affecting the foreclosure wave? Well, we have the executive and state foreclosure orders. I mean every governor is able to run their state the way that they see fit. Again, we are not one country made up of 50 states. We're 50 individual states with a centralized government. Thus the executive portion of that statement. States are pretty much able to run themselves when it comes to foreclosure orders. However, sometimes there is an executive order mandate. And so that's something we have to take into consideration when it comes to dealing with certain states. You have the state foreclosure time frames judicial versus non judicial. And what that means simply is that judicial, the property owner has to go to court in order to get the, in order to be able to foreclose on the property. Non judicial, it's a much simpler process. So again, we tend to deal with states that are non judicial when it comes to getting the Property we have government versus conventional non owner occupied. Again, the non owner occupied is basically when a person is the residence that is being foreclosed on, he's not using it as their primary residence. Okay? And so that is taken into consideration when it comes to who qualifies for forbearance and who does not. Again, another factor is a larger percentage of homes with equity above balances, which simply means that you've got a lot, a lot of equity in your home and the payoff isn't that great compared to the amount of equity. The reason why that has an effect on the foreclosure waves is that especially with interest rates being as low as they are, people that have equity in their homes can take out an equity home line of credit and be able to pay the bills, or maybe they can do their 401k or some savings or something like that and just pay the house off if they're getting a little bit behind and are worried about that. Another factor in the foreclosure wave is the migratory patterns and current MLS inventories and markets. Quite frankly, we see a large people are escaping the what tend to be the more liberal states, governments who have tried to provide everything for free and have ran up large debts and thus the taxes are extremely high. And quite frankly, they're not that property owner friendly. And they are all moving to states that are very property owner friendly. And states such as Arizona, Florida, to name a couple. Even Hawaii was surprised to find out. Hawaii, well, actually Hawaii is, it has, it has a lot of foreclosures, but it's easy to get them. So if you're looking to buy a place in Hawaii, then give us a call, maybe we can, we can set you up. So these are some of the things that we have to take into consideration whenever we're choosing what states to purchase notes in. And then of course, we got city by city industries and employees affected by COVID 19 as we go on, later on in this slide show, you'll see that just because a state is rich does not mean that that's the best place to settle down. There's a lot of people fleeing from those states. And it also means that just because the state is poor, that doesn't mean that people who are poor don't pay their bills. And so we'll get more into that a little bit later on. So here, this next one right now is a mortgage delinquency rate by loan type. And what's interesting about this, as we talk about the different loans and stuff, of course Forbearance has to do with all federally backed Fannie Mae, Freddie Mac, va, stuff like that, loans. And so the government says, hey, if we're in charge of ensuring back in these mortgages, then you got to play by our rules. And right now we're going to put the forbearance in so you cannot evict or foreclose on somebody. The cool thing about this chart right here is that conventional loans, meaning that they are not insured or guaranteed by the government, have the lowest mortgage delinquency rate. Now, is that because they have a dog in the fight or is it because the government holds itself accountable? It does not hold itself accountable with its responsibilities. These are something that, especially when you're making a large purchase or you get into investing, these are some of the things that you want to take into consideration. And here we are with our grid, our little map of the poorest states in America. As you can see, some of the, and we're going to see later on some of these states, such as Louisiana, Mississippi, some of these others that are way high on the, on the poor factor are absolute gold mines right now when it comes to the note business. Not that we like to go in and foreclose on people, but the fact remains that for whatever reason the psychology of, of it all, poor people, if given the opportunity, tend to pay their bills. And that's a very important factor whenever we go in to buy notes and negotiate with, to get their mortgage lower so they can start paying it again. It also means that again you see some of the richer states, you've got New York, California, some of these other places, they, you know, are they rich because quality of life is that much better or do they just have a lot of high taxes and a heavy debt burden? It's, it's interesting to go through all these statistics, but we're going to move on real quick. I like this stuff, but Catherine's giving me the stink eye. She says moving on. Now with this, you can see the potential home loss map here in the, in the U.S. and again, the darker colors tend to be the ones that have more homes to lose. Again, Louisiana is there on top of the list, but it works in our favor. People aren't, you know, maybe they were told that they couldn't or that they shouldn't pay their mortgage, whatever the situation might be. The bottom line is, is that the great folks in Louisiana and Florida and Mississippi and some of these other states that we business and they do pay their bills and if given a second chance they will perform. So right here we have again, you can see that some of these numbers you've got over here, you've got Texas and California and New York that have very high numbers in the hundreds of thousands. And then you've got, you know, on the other spectrum like Vermont and North Dakota and stuff, you know, not even 10,000 people are in, you know, are likely to lose their homes. This chart right here reports that 5.7 million people are likely to lose their homes in the next two months and that 17 million are not current on their rent or mortgage payments. However, a lot of this might have to. Some of the numbers might seem high, but that could be because of population density. All right, so here we have. We have the states with the highest and lowest rates of 30 days that are past due. Again, L.A. i'm rooting for you, buddy. In fact, Catherine and I are going to go there at the end of the month or so and see what we can do to help out some of these. Again, we love Louisiana, Mississippi, you know, Utah, Idaho. We try to stay away from New York, New Jersey, Maryland, places like that, because it just takes forever to basically take ownership of your property. So the 10 largest metropolitan areas with the highest 30 plus days past due. Miami. We actually had a million dollar day last week due to Miami. We absolutely love Miami. New York, again, forget about it. Houston. So, so again, some of these other. San Francisco, forget about it. Boston, no way. But Denver and some of these others, these are the ones that we're looking at. So if we continue on with that, I'm going to let Kathryn talk for a second. My voice is going a little hoarse. I'll be back.

So what we have here is a spreadsheet that's been put together that we are more than happy share with all these numbers and these statistics of all the major metropolises across the United States. If you'd like that information, stay on till the end because I'll share with you the email address so that you can actually get that information. This here is also just to give you another picture of the spreadsheet that we have with all these statistics for you is just showing a map of all those foreclosures that are coming down the pipe.

All right, I'm back. I'm gonna. I'm gonna save Kathryn's voice for the next couple of slides after this. Hopefully my voice won't give out completely before then. This right here talks about delinquencies by property type. As we can see, the lodging hotels have gotten hammered worse than anyone during this pandemic. And retail shopping malls, small mom and pop stores, things like that has absolutely been hammered as well. And so, you know, we look at this and we see that the opportunities are indeed when the vast majority of what's going to be the most profitable are going to be in the retail and the lodging areas. As you can see here, the expected change in vacancy levels in the next 12 months. Again, offices, hospitality, things like that, they are, they're going to be hurting for certain. So speaking of opportunities, I'm going to go ahead and turn it back to Katherine and she can, she'll, she'll take us home.

So the opportunities that we see coming up are from the buy and hold versus the buy and flip mentality. Again, everything is cyclical. You can make money in an up market and a down market. You just need to understand what market you're in. So making sure that you're really clear. Is this the market for buy and hold or is this the market for buy and flip? Again, you know, we teach all of our investors, do the numbers and the numbers tell you what to do. That's a big part of it. Also small balance commercial properties, this is huge opportunity that's coming in the non performing notes that we're going to be able to buy and then buying debt and restructuring loans for tenant and borrowers. This is our favorite little arena to be playing in. So a lot of what we're seeing is people are getting more creative around commercial properties. So they're converting commercial properties, so converting hotels to apartments, big box stores to self storage or even office to self storage, executive office spaces. We heard of somebody that had signed a lease last January for some executive office space. And then of course the whole Covid thing happened and he quickly pivoted.

To.

Be able to turn that into storage space for office furniture and it very quickly filled up. So we like to say, you know, a bend in the road is not the end of the road unless you fail to make the turn. So just make sure that you're paying attention to the bends in the road. And then of course buying single family resident homes, the loans and modifying them that are non government backed, we love this. Our investors, we match them up, one investor per note and so that that's giving them a cash flow every single month which they're loving. And in some cases because it's investment property, it's non occupied, some of these are empty, we're able to foreclose, take back the property, turn back, sell it back on the open market and get it going in the economy, which actually helps because there's a low inventory in a lot of these cities. So we're helping continue to move the economy forward, making our investors very happy. So we are involved in multiple other projects as well. We have a residential development going on up in Taylor, Arizona, which our investors are very happy about. And then of course a condo development up in Snowflake, Arizona, Again, another very lucrative opportunity. We also are building medical offices across the United States, which is another lucrative opportunity for our investors. And then of course we have some commercial industrial developments here in the Phoenix Valley. So we have a lot going on and it's just a really great opportunity for all of our investors to take advantage of that. So we would love to know more about you, what your goals are, what your expectations are. So please reach out. You can schedule yourself on my calendar. Bit ly catherinetig that's a direct link to my calendar for you to schedule for a time that works for you. Or you can email me katherineitanimpactgroup.com you can also email me and just request that spreadsheet and I'm more than happy to send it over to you. My number direct line is 480-244-2587. And then of course there's our website, which is a lot of fun. So there is. Our website has got a ton of different videos and our newsletters and stuff that you can learn more about the different deals that we've doing. And one of my favorites is Steve is a historian and so he loves to do these videos called History Notes. So he takes history pieces that we have in the Wallseum here and ties them into what's actually happening in the economy today. So that's a bit about us and what we're doing. If you want to know any more information, again, please reach out. We are more than happy to have this conversation with you and we'd love to get to know you and connect you in whichever way we can through our networks as well. So with that, thank you and may.

You never awake from the American dream.