Terms May Shift, Build Your Banking Relationships:4:18: Market shifts have moved rapidly in the last few weeks and banks may change their minds based on the information of today. This is whyThe way to approach your issue is to understand that it's going to happen. Now you understand why it is so important to build and then nourish your banking relationships.6:30: Every bank is different in the same way that every investor, every agent, every property, every seller is different. Other banks are still lending.Due Diligence During COVID-19:8:00: Always go through every single unit in an apartment complex. In the event of COVID, these procedures have changed, so make sure you have a clause in your contract to extend closing if you’re unable to complete your due diligence.  11:30: If you were considering or in the process of purchasing pre-Covid, don’t close post-Covid without additional due diligence. Ask yourself, “What if the residents in there no longer have jobs?”13:41: Renegotiate the price and retrade only if you need to.15:10: Negative cash flow is a losing proposition because there is no guarantee of appreciation. Especially iIn this market because of Covid-19 since there is possibly a guarantee of depreciation. You better be confident that the area is going to appreciate.17:30: If it isn’t cash flowing, can you fix it? Reduce utilities, add a bathroom and increase rent, etc.20:28: When a market crash happens, having cash reserves (1) makes you antifragile and (2) gives you the ability to jump onto future opportunities in a down market. 24:21 Never see your equity as cash reserves. Equity protects you from going down, but having cash reserves is what makes you antifragile.Will Coronavirus Kill BRRRR?:27:16: Remember that the market was already tight in a lot of markets going into COVID. We’re watching for what will happen to the supply of foreclosures once the courts open back up and start processing them again. Will that increase supply? Will demand change? This is what affects home prices.29:05: Bottom line is we don’t know. There were already signs of an impending recession to begin with last year. Home values were hurt the worst last recession and will probably not be hurt the worst in the next one.31:00: The general rule of thumb is when you're buying on the upslope, you want to be aggressive. When you're buying at the peak, you want to be careful. When you're buying on the trough and upslope, you want to be super aggressive.Books mentioned:Antifragile, by Nassim TalebConnect with the Good Stewards:Visit Our Website and SubscribeEmail | [email protected] | @TheGoodStewardsInstagram | @GoodStewardsPodcastFacebook | @GoodStewardsPodcast

COVID-19 And Your Strategy:2:00: Things change, and you may need to change at this time. There’s a common saying, the only constant is change.3:30: You might be in Seattle, or a market similar where they’ve recently extended the eviction ban by 6 months after the stay-at-home order has lifted. You should contact your lender on the properties that you're having difficulty collecting rent, they likely will be pretty understanding if they’re local.7:22: The general rule of thumb is you want to focus, you want to stay focused on your niche, master that niche and be a master of one trade and not a jack of all.Developing Your Strategy:10:54: It’s critical to have your business built on a firm foundation and your strategy should guide you. Not to say that you can’t add additional strategies, just shoot bullets, not cannonballs as Jim Collins would say.  15:20: When developing the strategy at the beginning, it will be something that you have to build and work towards and create as you go along. General business mindset in general, nothing is ever complete, you're always working towards something.When Opportunities Arise:17:34: Say COVID is really impacting you right now, you still don’t want to radically change things. Do your due diligence and execute with excellence as best you can.20:50: After you’ve niched way down, you’re now an expert and can start to niche up. We’ve got a solid financial base after 31 years. 24:47: Ryan found a 12-plex that looked to be a great opportunity, but ended up being his most expensive lesson he’s made. Always verify deposits.27:45: Buying other people’s problem is not Amanda’s favorite29:40: Part of your strategy is really building up to it. And then part of it is making sure you're in the position to cover all the bases.When Things Go Bad, Which They Will:32:10: Even if things do go bad, knowing your exit strategy is less stressful when you have options.35:00: Ryan looks at it, kind of like a race car. Things are going to run great, then something explodes and then you rebuild that piece. You're going to get further down the track, you're going to get faster, but something else is going to break.If You’re Starting The Process:36:44: Realize it’s a process and there’s a lot of trial and error. At the same time, be conscious of who you’re taking advice from and that they’re people who are where you want to be.Books mentioned:Good to Great, by Jim CollinsConnect with the Good Stewards:Visit Our Website and SubscribeEmail | [email protected] | @TheGoodStewardsInstagram | @GoodStewardsPodcastFacebook | @GoodStewardsPodcast

Why We’ve Sold In Indianapolis:2:50: We bought a vinyl village era property a year and half a go that never was an issue renting out, but we felt that it would be good to elevate our cash position given the time of  uncertainty.4:56: Our net profit was $42,000-45,000 which can cover a lot of residents who decide to stop paying rent.6:12: This is a great example of solid preplanning. I’ve been a motivated seller before and that’s a bad place to be.9:00: If you’re plan is to manage a large portfolio, your time counts for something. You can only manage so much and your growth is going to be limited if you hold on to it.Why We’ve Sold in Springfield, OR:11:19: We got a bit better than vinyl village property under contract last week. Bottom line, it’s hard to cashflow in the west coast. We think this is a good flip candidate at a purchase price of $200,000 and reno budget of $20,000. 13:45: The good news for the Eugene area is that the university of oregon is planning to reopen for the fall semester, though is expecting about 15% less students.The 38-Unit Development Property in Portland:17:00: We bought a piece of land 2 years ago and planned a 38-unit development. But we’ve done everything wrong on this project. It’s hard to figure out how to manage a property when the city requires a certain number of units dedicated to affordable housing.19:57: We didn’t do our due diligence on this one as we might end up with millions of our own locked into this deal. But we’re pivoting this project to be affordable housing and if it still doesn’t work out, we’ll sell it.21:49: sometimes you sell a property to pull in liquidity. Sometimes you may have to sell one to stop the bleeding.23:50: Buy and hold is multi-faceted with segments of business dedicated to acquisitions, overseeing rehab, property management, and then lending. It takes a very rare and special person to be good at all those areas, most aren’t and it takes years to master.$2k Profit Flip in Kansas City:29:00: Making smaller mistakes is always better, and even the larger mistakes we’ve still been able to keep.30:22: We blew through the reno budget because of dry rot issues. We had originally planned to BRRRR this property, but we just had too much cash in the project at that point to make it a good buy and hold. So we listed it.32:24: We didn't have to sell that property, but we were kind of trying to hold ourselves to a different standard.33:32: When you get a bigger portfolio, keeping your cash reserves strong and your liquidity strong so you can stomach a rainy day and jump at opportunities. BRRRR is all about an accumulation of decisions for your business.Connect with the Good Stewards:Visit Our Website and SubscribeEmail | [email protected] | @TheGoodStewardsInstagram | @GoodStewardsPodcastFacebook | @GoodStewardsPodcast

State of Business Discussion:1:45: we got a deal under contract on Monday, had it assigned by Tuesday. Um. Wholesale deals are still closing.3:24: I think we've closed since COVID three properties. We've closed a couple of refinances that were in process. We've started refinances, um, during this process.4:55: I have heard from various investors that, uh, banks are getting tight with LTVs and lines of credit.8:10: I read an article on a study of rent paid in April saying that 35% of people didn't pay their rent. And then if you read in their article. When they did the study the previous year, it was like 25% of people were late, so really there was a 10% dip based on their data.11:00: Ryan’s team has 17,000 pieces of mail going out in May, while many investors are holding back and expects that to translate into eight or nine deals. With values, our team dropped down to 70% of ARV initially, but first-time home buyer inventory hasn't changed, so we're back at 75%.15:45: Of the people that couldn't pay, our group has had communication with about 80 to 90% of them. They've been really proactive about communicating their circumstancesIs Airbnb an Opportunity?:20:20: Most people who bought Airbnb properties overpaid, over remodeled and over furnished. That's why those investors are in so much trouble as the only way they were cash flowing or breaking even was off of that premium.23:05: really good thing to just keep in mind of building your business on the back of an industry that you don't control or on the back of another company that's susceptible to issues or changes.24:45: I would say if you're going to get into Airbnb. Maybe you have properties that you can rent out conventionally and maybe you choose to Airbnb them, but you know, you can drop back to that.What We’re Doing Now:27:00: The best time to start buying is right before you hit the trough. That way you've got a little bit of lead up, but you don't want to buy right at the beginning of the down point, so Kansas City isn’t buying too much just yet.28:20: every legit buy and hold investor I know has overextended themselves then started to struggle with property management or construction29:30: It took 10 to 15 years to get property management like into a well oiled machine in Oregon.33:00: You as a business owner have to always kind of be in the driver's seat of your feelings and your emotions, especially kind of on the logical side.Connect with the Good Stewards:Visit Our Website and SubscribeEmail | [email protected] | @TheGoodStewardsInstagram | @GoodStewardsPodcastFacebook | @GoodStewardsPodcast

Market Discussion:4:15: in terms of unemployment insurance, all rollouts are simply overwhelmed with the volume.6:01: Stewardship Properties has tried to stick with our regional banks since they’re quicker to respond on our commercial loans. Start with those lenders.What’s Happening In Mortgages:9:20: Liquidity is an issue for lenders, primarily because of forbearance, but they are still accepting applications at decent rates.14:29: When lenders are pulling the plug, these are locked loans. That’s only about 10% of what we do. Business-conforming loans are the other 90%, which are still being written.17:00: You can’t ask people’s credit scores as an investor, buy you can cross qualify your buyers with their lender for a second set of eyes.20:27: Ryan has never sold to people that have anything other than cash, private or hard money. But on the retail side, a 1031 Exchange came in with a cash offer 5k below list, last weekend.23:00: What’s been interesting to see is how Indianapolis has become a cash-heavy market overnight with 20-25% down.24:15: With COVID-19 overlays, you can still go up to 50% debt to income on a conventional loan.26:30: You can still get up to 80% on a cash out refinance.28:47: VA loans are still being done, lenders just don’t know right away if they have someone to service it. So rates are higher.Title Companies:30:36: Title companies are “modified” business as usual. Thankfully for Indianapolis and Kansas City allow scanned documents.What Do The Next Few Months Look Like:33:49: Eugene Brokers is gearing up for a full refinance season. Rates track the 10-year treasury note, so they think great rates will be around for awhile.32:40: Contact Matt at 541-359-7212 or by email at [email protected] with the Good Stewards:Visit Our Website and SubscribeEmail | [email protected] | @TheGoodStewardsInstagram | @GoodStewardsPodcastFacebook | @GoodStewardsPodcast

Addressing Concerns and Disputes:2:05: April was sort of the first month that we had to figure out if people were going to pay rent, what they are dealing with and how many of our residents are without jobs.4:20: We basically said that rent is still due and to feel free to reach out if there is an issue. We didn’t want to extend an open invite, but we planned to give an additional payment plan allowance and waive April late fees.7:29: With regard to student rentals, we had alot of calls since the University of Oregon closed their dorms and we had an insurgence of rental inquiries. At the same time, we had nervous people reaching out about cancelling leases for the 2020-2021 school year, which is a ways off still.10:30: If you're struggling with vacancy issues or whatever you had to really think about lowering rents, trying to get on the front side of being as attractive as possible to any would-be residents coming your way.This May Encourage Changes To Your Process:11:49: We don't take people who've had evictions. So, we have a lot of people that I think are going to fight tooth and nail to not go the route of ending up with an eviction.15:41: When you're talking to your residents about these situations, you really want to emphasize that both of your goals are the same for the person to stay in the property and not have them leave.18:30: If you've been into real estate as a hobby or rental properties as a hobby, this is really time to change directions here. It’s not the time to be informal with your residents.20:58: Remember, you've got a business on your hands. If every single property you own is free and clear, you still are operating a business. You need to keep that kind of mindset.25:47: Part of being business owners too is you need to look into the future of who you're renting to. What’s the job outlook like for that industry?What Are We Seeing In Our Communities?:30:00: Most people are doing pretty well. They're down a bit, we're down a bit, but it's by no means a catastrophe. And it probably won't be in terms of rental income questions, unless this drags on for another couple of months.32:40: I'm hoping for a lot of people that this is kind of not necessarily a wakeup call, but a chance to just kind of reassess what they want out of life and really go after that.Connect with the Good Stewards:Visit Our Website and SubscribeEmail | [email protected] | @TheGoodStewardsInstagram | @GoodStewardsPodcastFacebook | @GoodStewardsPodcast

State of Economy Discussion:3:25: The purpose of the stimulus is to keep us from a recession spiraling into a depression, which none of us want and would make matters all that much worse.5:10: So many people are being affected even if you’re not. So with that in mind, this has now extended past a “few weeks”, there will be impact.8:35: The world does sort of feel like everything stopped, but people are still working. We were mid-refinance in several markets, those are still happening.12:15: Go ahead and think about your absolute worst case scenario so you can just deal with it. If college football doesn’t start back up and the universities don’t start back up, that’s our worst case.What You Do Now, Makes A Difference:14:25: I would say now more than ever those that are going to come out on the winning side of it are those who are acting proactively, who are looking at their businesses, looking at the models, figuring out how to tweak them.16:13: It can be uncomfortable to think about doing something different because in your mind it's like this is how we do things. Reality check is that “how we do things” could have ended two weeks or three weeks ago at this point.19:30: Back in the recession of 2008, Bill asked two private lenders on a fairly expensive property if they’d be willing to take less in interest from what we owed them. In times like these, having those conversations may be necessary.Are Home Values Changing?:22:45: If your business is relying on an FHA loan buyer, those investor-backed loans might be hard to close right now.23:49: Be careful with flipping right now. CNBC reported recently that home sales could fall by 35% this year.25:32: What’s your exit strategy? DO you have multiple?27:40: It’s so hard to guess if prices are going to go to 2008 levels. That happened because of bad lending practices. We're going through something entirely different, there’s not an actual issue in the economy.29:18: The Dot-Com crash was stock related. It was the only recession in history to date* where home values actually increased.32:35: The biggest takeaway is that just because you've always done it that way doesn't mean that's going to work now. It’s time to get out of your comfort zone and be proactive.Connect with the Good Stewards:Visit Our Website and SubscribeEmail | [email protected] | @TheGoodStewardsInstagram | @GoodStewardsPodcastFacebook | @GoodStewardsPodcast

Pre-2008 Similarities:3:21: Everyone wanted to be in real estate in 2005-2006.5:15: instead of being a “buy and hold” investment company, we had to flip our mindset and say, we're going to start flipping properties and that evolved into a short-sale segment as well.9:25: By April of 2010, the $8,000 home-buyer credit program ran out and that’s when homesales really stopped. By that point short sale deals were taking 3, 6, 8, even 10 months to close and that’s no longer a lucrative deal.11:00: Normally you don’t want to make a major shift in your business, but in a recession you may have to.13:50: Prices had gone down significantly in the country, which meant that there were lots of cashflow opportunities.Going Forward in 2020:16:10: We don't know where these types of opportunities are going to pop up from this and from this particular crisis. It could be in commercial real estate.19:13: We are still figuring things out because I do feel like we're not even quite two weeks into this, but one of the things is we have some deals under contract.21:15: as business owners, we really have to make the best decisions we can make today based off the data that we have today. Typical closing periods last 30-60 days, so we don’t really know what the ARV of those properties will be.26:20: Brandon Turner, of BiggerPockets, about what he's doing to kind of lay the groundwork of what is likely coming our way.28:30: One of the other big things I see happening in the real estate market is you can’t get away with subpar product anymore.29:42: Amanda made a huge pivot after going through a foreclosure first hand in 2008. In this time, people will make decisions based on past experiences, so I built a house with an accessory dwelling unit that cuts my mortgage by a 1/3rd.Connect with the Good Stewards:Visit Our Website and SubscribeEmail | [email protected] | @TheGoodStewardsInstagram | @GoodStewardsPodcastFacebook | @GoodStewardsPodcast

Maintain Your Perspective:3:15: Remember, don’t make rash decisions based on fear. If you’re looking to be afraid, you’ll find it, if you’re looking for opportunity, you’ll find that as well.5:25: People are going to keep living. You just have to look at it from a daily, weekly or monthly basis.8:33: Hal Elrod’s book, Miracle Morning, is a great book for those looking for perspective.12:43: Depression is anti-people and anti-movement. So, to reverse the effects of depression, you've got to get around people. You've got to start moving.Strategy for This Time Period:14:10: For now, we’re not buying new rentals. We’re not trying to catch a falling knife before it hits the floor. We simply just don’t know where the floor is just yet, so we’re being ultra conservative.16:17: Refinance! Amanada scored a 3.125% refinance on her personal property from 4%. That’s huge savings over 30 years.18:23: Now’s a great time to learn how to find your own deals. We’re shifting our marketing to C class or lower since we believe those properties will always be in demand.21:45: If you don’t know what to do, go out to those people who are still buying.Cash Reserves:23:52: It’s difficult to build cash reserves during a crisis or recession. But look into the transactional side of investing to build that up. Wholesaling or wholetailing if you can.Our Way of Business is Shifting Slightly:25:40: We’re reducing the 75% rule to be conservative. We’re using DocuSign and ShowMojo.29:30: We still need to maintain properties and get them leased.Connect with the Good Stewards:Visit Our Website and SubscribeEmail | [email protected] | @TheGoodStewardsInstagram | @GoodStewardsPodcastFacebook | @GoodStewardsPodcast

General COVID-19 Discussion:5:50: This is not our new normal. This is a very temporary situation.7:55: You don’t want to make rash decisions that are going to affect people just because you yourself are anxious. What is a Black Swan?:12:10: A black Swan is an extremely unlikely event or unpredictable. Like 9/11 for example.What Black Swan Events Bring:15:30: The first thing that goes away in an economic crisis is the ability to get credit. So it’s critical to have cash reserves.19:51: If our residents lose their job and have been great for us, we’re going to work hard to keep them.25:40: Remember that there’s always going to be value with the assets we’re buying. People are always going to trade cash for something of value.27:01: Stewardship Properties is not thinking about the worst case scenario right now. We’re planned financially out 12-18 months in advance. Connect with the Good Stewards:Visit Our Website and SubscribeEmail | [email protected] | @TheGoodStewardsInstagram | @GoodStewardsPodcastFacebook | @GoodStewardsPodcast