Good morning to an extended shut-down government;
Residential Lending
Fruits of preparation & Smart Buying
Call us. Call now.
Yes, the government is shut down. Why? Politics not preparation. It is key. Congress should learn, but they suffer no consequences. Sadly, for those on the firing line, the shut-down does directly affect them. If you are one of those, we are here to help.
For the rest of us, be aware some services maybe curtailed. Again, plan and prepare is key.
The mortgage rate sell-job. Many lenders love quoting mortgages in the high 5’s. Tempted by what sounds to good to be true, borrowers may not asking the important question: Are there additional cost to get a rate below 6%?
As in one recent conversation with a client, they were tempted by such a situation. He was not properly informed of the additional ‘cost’ required for such a loan – an additional 1 point added to the closing costs. It is a must. Our promise: We are here for you and will ALWAYS let you know the full story – BEFORE beginning the paper work. Please, chose a broker with a solid reputation of full disclosure, letting you know any “hidden” fees upfront, plus making every step very clear and easily understandable. We put your best interest first.
Affordability conversation: Couple basics: 1) Income determines WHAT kind of home you buy, while 2) savings determines IF you buy. Our current younger generations are often choosing to go on vacation, eat out often, door-dash, etc., rather than the active habit of saving money needed to purchase a home. Outcome: This pushes first-time buyers into buying at a later stage of age. At the same time, we do offer loan programs with down payment assistance, if an entry level homes. This helps with the “IF” part of the calculation – but saving is best.
Always, let’s talk first: Above all else, real estate is highly sensitive to local market condition – buyers, sellers & location. It includes life styles, rent or buy, and valuation, etc. Most commentary is nationwide averages, thus limiting its helpfulness. Also key: Gaining a thorough knowledge of lending strategies, how best to apply them, and when. It is how we best customize your lending choices. Good News: We have ready access to the full range of ‘standard’ lending products needed for your success. Call! We are ready to help.
We are your lending & planning specialist, ready help you fully understand lending.
Let’s talk. Let this be your first step to future success – your dream home.
Important Points:
1) Mortgage Rates: Improve, but still trending sideways. A suggestion: It is a good time to talk refinancing opportunity. It is a worthy conversation. CALL.
For buyers, the holiday season typically brings a seasonal short supply of available homes. Fewer buyers, fewer listings. Thus many listings reflect sellers wanting to sell. Good news: For many, this provides a great opportunity to buy, especially with lower rates. This helps provide a more stable market. My suggestion: Spring is coming – Don’t miss out.
My Best Advice: Make this month your month to prepare.
Fall is often a Buyers market and preparation key to the home you want.
We can show you how to buy now and still enjoy future rate cuts. CALL!
2) Economy:
A) Economic Activity: Government shutdown will impact GDP growth, but growth will continue. If Supreme Court okays tariffs, there is talk of a possible rebate to taxpayers.
B) Employment: With the shutdown, let’s look to the ADP report. Out last week, this report was better than expected, but with an average of only 10 K job creations over the past 3 months. Other ‘signs’: 1) Large layoff notices with Micro-Edge announcing layoffs the highest seen in the past 2 years. 2) WARN notices – public notices that require companies with more than 100 employees about pending plans to layoff more than 50 people – is at its highest level of the past couple of years.
C) Inflation: An anecdotal measure is the annual adjustment to Social Security benefits and other government sourced funds – going up 2.8 %.
D) Debt: Perspective: The social narrative is we cannot keep building federal debt. Consider: In 1951, US net wealth was 500 B and 25 % of the population did Not have access to an indoor toilet. Rolling forward, we have a net 150 T in net wealth. And our wealth is growing, outstripping the increase in debt. The question is in interest rates and our ability to print our way forward. Good News: SSI fear mongering is over rated. Let those with living on fear, continue to be our tenants.
Residential Real Estate:
1) Listings: Are 9 % less than pre Co-Vid, builders are keeping a lid on the number of properties they build, yet we have a 12M increase to our population. Pretty good I say for supporting home values, and pretty much the same story for rental incomes.
2) Foreclosures: Headline: Foreclosures and delinquencies increase 18 %. Data points: 1) most of the increase is in FHA and VA zero to minimal down payment loans and those coming off the Co-Vid moratoriums. 2) Delinquency rates still running extremely low. 3) In Foreclosure, ½%, 90+ day is 1.6 %. 4) Other than spikes during Co-Vid – and the aftermath of the GFC – rates are at trend of the 1990’s, 2000’s until the GFC, and 2020 outside of Co-Vid.
3) Loan spotlight: Not for everyone, yet if purchasing a property with rough edges, we do have mortgages with a 5 % loan-to-value – including renovations. For local single family homes, the max loan amount is about 1.2 M. Getting great, lower LTV pricing.
4) We have resources to provide FNMA / FHLMC – and other traditional owner-occupied loans – in OR, TX, FL and NC. Good News: We have alternative lending products available nationwide, with New York the outlier.
Coming Now: 1) Higher loan limits announced for FNMA, FHLMC, VA, FHA. 2) 2- 4 unit Owner Occupied purchases – with 5 % down – thru FNMA and FHLMC. This now competes with FHA’s 3 1/2 % down payment , available for decades. 3) FICO may begin selling directly to credit aggregators – people pulling credit reports. Outcome: credit reports lower than $ 85.
Good news:
We are well equipped to help Buyers succeed.
Your professional expert is ready today. Call us.
4) Commercial Real Estate: Gaining the upper hand
Excellent investment opportunities are at hand.
Call now. Let’s start preparing now
Office Sales: UP over 40 % – institutional investors and family offices, are entering the market. First pick is higher-end product. While cap rates continue to track the high levels reached, bank underwriting is challenging, as pro-forma consideration is still off the table.
Consumer Spending: Remains strong, with no data splitting out whether by paying cash, credit, buy now & pay later. A good support number for the expected 3rd Quarter GDP growth.
Signs of Deflation: “Industrial Capacity” continues to show no signs of improving. Excess capacity can lead to price reductions to maximize utilization rates.
“Don’t wait to buy real estate, buy real estate and wait.” – T. Harv Eker
What makes us special – our work effort and caring style. We meet each person where they are in life. Offering effective guidance leading to solid, stable, and actionable options. All with a uniquely individual flavor. Give a ring today. Let us help build a solid path for you and those you care about. “Preparation and Patience” wins.
What has been recently happening
Within Michael Ryan and Associates?
Successes continue. Good news: One of our long-standing clients has purchased another personal residence, making the number of owned properties at 4. Fast Close: Preparation is key to a faster close, and we closed in under 30 days, plus getting the condo property approved for conventional financing. And more: You can turn the old homestead into a rental. Call us.
Another client: Working a startup, the client ran short on funding. We were able to quickly place funding to keep their venture goals in place and working. We are here to find answers.
Each example starts with a first conversation, with no pressure. A first-tier conversation about needs and goals, with the objective of working thru various alternatives and options.
Call Today. Or, check my web page. Set a time for a first conversation – at your convenience.
More Good News – What we Do!
To the benefit of our clients, we have developed relationships far and wide – over the recent decades. With each relationship comes different tools, differing options. One of our tools is my “Associates”, making us a more comprehensive financial guide.
More tools: Residential lending that allows an innovative reverse 1031 exchanges. A business manager of an LLC, was able to sign papers for a very high, net-worth individual desiring not to have their name on anything. Such being a legal strategy to defer capital gains taxes. A powerful strategy able to fund large depreciation dollars to shelter the individual against a sizable income tax bills. Don’t miss out. Keep your money working for you, CALL Today.
The options go far and wide. But it doesn’t start there. It begins with YOU.
Have a real estate idea, one not easy to pursue? – Call us. We love to have conversations to flush out every potential option and method that offer you a full range of the best choices.
“It starts with our first conversation”
Preparing for your tomorrow
Let’s start today.
We look forward to meeting with you, on the phone or face to face. Here we can talk through questions, thoughts, and solutions. All in the name of serving you best ,with up front disclosure.
We know what’s most important: Those we have around us. Be well and be safe! Enjoy your family and friends, especially this special season of thankfulness and gratitude – Thanksgiving.
