Jeff Matlock

@stevegarthwaite @CaseyMericle @HealthcareREguy I have a client closing on one of these tomorrow. Grand Slam deal. Corporate seller. He has 35 years of experience, cash to close (even though he is using debt) he jumped on it faster than anyone.

@CaseyMericle @HealthcareREguy This is an ordinary outcome when buying from corporate users. Warehouse, MOB, former HQ. These companies aren’t RE operators or investors. They need it off their books and fast. The brokers with the inside track to these offerings are good connects to build.

It’s hard to overstate how much real estate wealth has been created by buyers with $5M -$10M in liquid capital who can close fast

@harrisonfinberg Do you think it will make you dumber and harder to have creative thoughts? This weekend I spoke with friends who use AI a ton and it saves them a ton of time but they said they are now incredibly reliant on it.

This is the best 200/month I’ve ever spent. They could charge 2,000 and I wouldn’t blink

@credealjunkie Are you giving it data, instructing it where to find the data or blindly asking it to figure it out?

Not perfect, but Claude and I are making progress on the definitive San Francisco apartment rental dataset and heat map. Latest version:

The trend continues, big money is coming back (finally) HSBC Life plans to return to real estate via value add funds.... HSBC is looking at real estate funds again after committing no new capital to the asset class for several years.

@mortgagetruth The person this serves is on the lower end, it will look great until they have more delinquency and problems. There are so many small exceptions that humans can deal with that computers will mis-price or incorrectly accept the risk.

Mortgage lender Better has teamed up with OpenAI to "fully underwrite a mortgage loan" in as little as 47 seconds. This sounds like great news for borrowers, especially if costs are cut and passed to consumers. It doesn't paint a bright future for underwriters and LOs though. Initially, LOs feed consumer application data and documents into the Tinman AI app. How long before consumers just do it all themselves?

@shawngorham Was each new house a fix up project that you invested sweat equity into or upgrade in size/neighborhood?

If I started Real Estate over again: 1. I would look at my primary house as a quality of life decision for my family vs an investment (that means I would have stayed in the 2nd home we bought vs moving 3 more times) 2. After my family was settled - I would have bought industrial and retail strip vs single house and small multi I would have focused on small contractor yards, odd shaped industrial lots, value add small user industrial, small run down neighborhood retail I could take down on my own. I was not meant for single and multi family - it was just the easiest to finance

@moseskagan @realEstateTrent Happy Birthday Moses and Don.

Happy birthday to @realEstateTrent, a real mensch who, at the rate he's going, will end up owning *all* the good strip malls. Here's to another happy, healthy, prosperous trip around the sun!

@atnissly I continue to root for you. I love hearing about the success!

Closed our 39th property since founding, 17th since signing institutional capital, and 15th this quarter. The risk of working with a larger Co-GP is trading economics for a logo, but that hasn’t been the case for us. Every aspect of our business has been professionalized: capital markets, legal, accounting, development. We work “on the business” rather than “in the business” and own a private equity firm rather than a deal shop.

@shawngorham A very wealthy man told me years ago that we pay the weather tax in California. Check with him weekly on the weather and ask if you would rather be here or there.

I have a friend who is very "post economic" (wealthy) Life long CA resident (until he sold his business) He still has a home in CA, but spends most him time in Idaho Almost every conversation he tells me how much cheaper his cost of living is in Idaho Example - he is very into coffee. This morning he bought a bag of beans from a local roaster, cost was $16. He was in So Cal last weekend, his bag of coffee beans was $38 for a smaller bag. Every time we talk he tells me some version of this.

@credealjunkie From the capital markets side there is plenty of capital. The cost to build is too high to make it worth it or the rents are too low.

@credealjunkie Congratulations!

In 2011, we closed our first multifamily deal - 8 units in SF for $1,040,000. It took us 24 months and a dozen false starts to close deal #1. 50+ deals later, today we closed our biggest deal ever: 80 units and $22MM. That’s not big for some groups, but it is for us. Cheers!

@credealjunkie Isn’t that your exit though?

The more people that want to talk to me about investing in San Francisco multifamily, the more nervous I get.

Loan Terms: A+ Grocery Anchored retail center 10+ million loan amount 1.20% spread over US Treasuries Life Co lender Yield maintenance and open in final year.

@CREscout I’m always curious how people use AI. Did you have a long prompt into GPT or are you using something else?

An AI model looked at this picture… And produced this analysis Wild "The image displays extensive clusters of neatly stacked materials, including what appear to be blocks, pavers, and possibly lumber, occupying large open areas. These areas are paved or graveled pads clearly designated for material storage. There are adjacent industrial-style buildings, one identified by OCR as '[omitted]', which is highly indicative of a business that relies heavily on outdoor storage of industrial/construction materials. Perimeter fencing is visible, suggesting restricted access. The overall appearance is industrial, with no signs of residential, retail (beyond the supply store's operational nature), agricultural, or typical self-storage land uses. While large shipping containers are not explicitly seen, the vast quantity of stacked bulk materials serves the same purpose of outdoor storage for industrial/commercial goods."

@DonovanBuilds Congratulations Donovan!

Under contract!

@LA_Multi_Fam Yikes. What happened to that toilet? It is underrated the service you and others bring to the community in taking a house that is rotting and making it nice for someone.

We paid a wholesaler a $108K fee on this off market West LA deal (all-in $858K) and will pay you the same for something that really makes sense! Looking for off-market LA deals with following criteria: 1. SFRs on 7,000+ sf corner lots. Outside high-fire zones. B or better hoods w/ townhomes selling $800+/sf. Tear-downs/dilapidated homes. 2. Multi-Family in City of LA (non-RSO). Preferably with space for ADU's. B or better areas. Can be as dilapidated as they come. 3. Multi-Family in B or better cities w/out rent control (Redondo Beach, Hermosa Beach, Torrance, Glendale, Burbank, parts of Long Beach etc). DMs open.

Everyone has a view that interest rates will come down. However, it isn't linear. People who didn't lock 2-3 weeks ago when the 5 year treasury was down to 3.6% are kicking themselves. Their wait may cost them something and playing with fire with their loan maturity or purchase timeline. No one is perfect. It is impossible to time the market but it is often better to take "good" rather than trying to be perfect. Here is the 5 year over the past month:

@credealjunkie I enjoyed meeting you in person in Santa Monica. It makes me enjoy all of your posts even more. Keep the good stuff coming :)

Warning non-RE post: Last night we had a send-off for our friend Nicol who's traveling to Kona to represent Ecuador in the IronMan World Championships. Nicol got into Triathlon 10 years ago to support her husband who picked it up to battle severe depression. It literally saved his life. They had no formal training, no coaching, but had real motivation and had each other. A few years ago we made a short documentary about them - I still get choked up watching it. (Link in the comments.) We called the film "Triterapia" (Tritherapy) because that what Triathlon was for Roberto. Now every afternoon Nicol and Roberto lead a local running group which started a year ago when people were scared to run by themselves because of rising violence in our little town. The group ballooned and every afternoon our malecón (boardwalk) is crawling with runners and walkers of all ages, shapes and sizes. This is who we want on the streets. It's amazing to see people who have completely changed their lifestyles just by getting out and moving around (Ozempic hasn't made it down here yet, we still get fit the old fashioned way). It's become the social activity during the week - a release and a place to just forget it all for a few moments. That's it - that's the story. It may seem grim out there, but there are still people inspiring the rest of us to be better. Find them, go with them.

@credealjunkie It is wild that the Lembi portfolio went in foreclosure in the great recession, Veritas bought much of it, and followed the same game plan, and many of the same properties will again be lost.

Imagine how upside down you have to be to default on $650 million in loans in a market that bottomed 18 months ago where rents and values are up 20% since then. Tremendous collapse of San Francisco’s (formerly) largest landlord.

@mattbaran Do you know if there were specific law changes in the early 90s that caused some of this?

“The economic conditions kind of override everything” The reality is even less would be built if it weren’t for new state laws. California is consistently outpaced by other states and the country as a whole, and affordability continues to suffer. The shortage is deepening and prices are set to skyrocket. Supply & demand deniers are sure to claim it’s a conspiracy and do everything they can to stop developers from ‘making money’. Link ⬇️