Good morning to the helpful news, in the spirit of Thanksgiving;
Residential Lending
Time to prepare for tomorrow, today. Call us. Call now.
To start, we have a new loan program for investors. FHLMC (Freddie Mac) has expanded their version of 30 year fixed for investors to include a 10 year initial interest only option. It does then go to a 20 year repayment cycle and the reserve requirements are a bit stiffer. To me a good tradeoff to keep the lending biz balanced and not getting loose.
The news cycle continues and may your choice in the elections, be a winner. If not, don’t fret. The market will continue, often proving it is bigger than the one who was elected.
1) Interest rates: Beginning to ease slightly after the past couple of weeks increases. To note the 40 year average loan rate is 6.7 %.
Why did the interest rates move up after the Federal Reserve started reducing? There are many factors, yet the biggest maybe what is often nicknamed, ‘use it before you lose it’. It is a large, year-end expenditure of the Federal bureaucracy – near 600 B over the past couple of months. Add to this consumer spending remaining stronger than expected, even as the job reports weakens.
Best advice: Use this time to prepare. Call now, for our first conversation.
2) Economy: Focusing on California
A) Economic Activity: California has: 1) 4.2 % of the Nations hi-tech jobs, 2) taxable sales up 10 % – from pre-CoVid, 3) Household and worker income is high and up. 4) Such data is contrary to the “misery narrative” being supported by negative consumer sentiment surveys.
B) Employment: Is there magic in Jobs data? Headline says no change – 4.1% to 4.1% – in the unemployment rate. This due to rounding. Digging deeper: Last months number started at 4.051% and moved to 4.145%. Now, if you also take out the adjustment for the 220 K net loss – those who left the labor force – we would see a rate of 4.27%. Overall, the economy is still treading sideways, yet with a bias towards weakness. Not bad, just more facts.
3) Residential Real Estate: Interest rates moved upward to those of a few months ago. Also, there is a general slowdown, typical for 4th Quarter. Plus, over the next couple of weeks, even a month, I believe November elections may put downward pressure on real estate, as people shift their portfolios, based upon a new President with Senate and House majorities. Lets start preparing now.
Personally, I like to buy in the 4th Quarter. Sellers recognize a slowing of potential buyers, while many professional shoppers, stay home. Good planning is key to seasonal buying. Call!
4) Commercial Real Estate: Due diligence and detailed planning continues to be critical. As our core focus is on retail centers for financing and re-financing, details do matter. With our developed expertise we are able to facilitate most any type of commercial financing. Call.
Inflation Perspective: Continues muted, as await Thanksgiving retail activity.
Good News:
Success continues in this tight market. A client recently purchased a 2-unit property, both to live in and as their initial real estate investment. A good plan and the result of a year’s worth of research and working together. Job well done !
Another client is working to clear the decks – so to speak – from a division of assets. It seemed to take a couple of years to get negotiated, but now we are onto the final financing steps. After this, our client will begin another accumulation phase.
How do our clients find success in the crazy swings in our markets? They turn to us and our deep pool of lending partners. The goal: Helping find workable solutions that fit. This helps brings confidence in closing the deal. This is the benefit of proven experience and know how!
Consider: A quick sneak peaks, into how we can solve a vast array of lending situations. It helps set us apart. If not listed, call. We pride ourselves on solutions and helpful suggestions.
Side-Light 1: We are more than just mortgages. You can turn to us of for: 1) Reverse 1031 Exchange – lower bank rates and private money, 2) Bridge loans – buy before you sell, 3) Cross Collateral loans – qualify on a replacement property loan, not the entire cross loan, 4) Estate transfers: Irrevocable trusts – lower bank rates and private money, 5) have RSU’s with a private company – bank rate loans, 6) new residence loan qualification – without counting the departing residence debt, 7) Asset utilization loan – both depletion (as if income) and a no income, no debt service big bank account, covers it all – both owner-occupied and non-owner occupied – and cash out, 8) 1-year profit and loss income-expense statement to income qualify.
The list doesn’t seem to end.
Do you have a spin ? Most likely, we have an answer. Call Today.
Side-Light 2: We are part of an investment group representing high-end properties – on the water, sea-front, lake and more. How? By providing “fractional” investment. Thus, we are actively seeking those having such a property – fitting this description. A property you no longer need 365 days a year. Sound interesting? Perhaps you seek this kind of “get-a-way”, with the benefit of not having to support it 365 days a year? We have solutions. Call Today.
Side-Light 3: Investors seeking an ‘easier’ lending path? We have Lending Options? Good news: We cover most States. We use only the income stream of the subject property to qualify for the loan. Thus, with your good credit and documented assets – no tax returns or P&L’s – you can buy a property having up to 9 units. Interested? Let’s talk. Give me a call.
More Good News
We have great lending partners. They respect our work and attention to detail. This is good news for you, as they trust our approach and loan packages. In response, we carefully strive to maintain the quality of their depository relationships. This is called team chemistry and is what makes our lending relationship, a winner. Join our winning team, today
You have heard me say:
It starts with a first conversation.
Let’s talk. Preparing for your tomorrow, today.
With all the financial talk, the most important part is those we have around us. Be well and be safe! Most important: Enjoy your family and friends, with thankfulness and gratitude.
