Good morning to October and lower mortgage rates;
Note of the Month: Residential construction and its impacts. It remains a significant issue for the Bay area, a socio-political issue over many decades. This especially true, as our country slowly moves toward higher density housing. Local politics puts emphasis on large, single family homes, but far less on entry level housing. Many look to the White House for answers, but solutions are local – not there. Such is the foundation of the fabulous opportunity I have to seek information critical to helping you. Call today. Let’s talk about market implications of improving rates and – potential benefits – as market activity increases.
MARKET NEWS
Federal Reserve: Yes, the much talked about – and anticipated – rate reduction cycle is back in the news. Good News: This should provide the opportunity for even lower rates. The one concern: A protracted dock worker strike creating another supply-chain problem. Outcome: Inflation and a possible bump in rates by the Fed. Rarely does life move in a straight line.
Jobs: It appears from the recent Federal Reserve meeting, the committee has put focus on the significant employment – not the headlines. The silver lining is the job market does not seem to be falling off a cliff. Layoffs, yes. Tougher to get a new job, yes. Yet this is expected with an economic slowdown.
Residential Investors: Worthy to repeat. Although close to 30 % of the SFR market is sold to investors, only 3 % goes to institutional buyers. Note 1: Close to 80 % is small and medium size clients. Note 2: The market speaks that housing is needed and investors are stepping up. So much seemingly bad news, yet here is a great story about available liquidity and money being deployed. Note 3: Historically, there are 2 ways to build wealth in the USA. One is small business and the second, real estate. Note 4: What is nice? Silicon Valley, unique on many fronts. 1) great wealth built thru W-2 income, 2) small business, and 3) real estate. Combined, they build wealth unmatched by most.
Our mission: Help to guild, challenge, and support those seeking to build real estate wealth. This commitment is for both the small business clientele and those seeking real estate. Summarizing: Consider us as your ‘Asset Acquisition / Optimization Strategists’. We are at your disposal. Call Now! Let’s start today and build upon our conversations. It helps teach patience, readiness, and good timing. To this, we bring you the important data needed to meet your investing goals. We are ready for your call. This is the best first step.
The Good, the Bad, And the Ugly
The Good – Bipartisanism does happen. Sad the MSM seems to miss the good news! From Time Magazine: US national forests are being replanted thanks to bipartisan legislation
In 2021, Republican and Democratic lawmakers passed a bill eliminating a 40-year-old cap on spending for the US Forest Service. Known as the REPLANT Act, it’s been a smashing success—in 2022 and 2023. It is good to report, they reforested around 1,450 km2, and by the end of 2024, it’s estimated that the agency’s reforestation backlog of 14,500 km2 will be reduced by 15%. Time. More to be done, but a great start.
The Bad – Federal Reserve policy: Bad due to an apparent delayed response to reported critical data. What a difference a day makes. There are some Federal Reserve Governors talking about inflation being too low. How so? By considering all the details. As previously discussed, if you take out the contribution of housing and insurance, to inflation, we have an effective inflation rate of 1 %. Personally. I would love to see some dis-inflation to alleviate some of the burdens the over-heated inflation have left us. Such oversight, is noteworthy.
The Ugly – Core inflation stuck with “housing” the #1 sticky point. The “Supply vs Demand” theory tells us this will not go away. Leaving the question: Will Fed policy accept higher inflation than 2 %, if only the housing sector shows inflation.?
With this, consider the Apollo Global report on ‘Total Housing Inventory Per Person‘. This number – nationwide – peaked in 2008 at about 1.17, slowly dropping to the current 1.12. Outcome: I do not see public policy, interest rates, labor and material costs, abating any time soon. This leaves us with elevated inflation numbers, at the same time the rest of the market can be experiencing deflation.
Keep in mind, deflation has its own resultant economic problems. Add to this: Shrinking number of units under construction, while the size of household’s is decreasing. This also suggest the need for more units, not less.
We will continue to seek answers to this conundrum, despite NIMBY politics.
Perspective
Key to moving forward, regardless the real estate market, is to see beyond unfounded fears and uncertainties. Herein, there are two primary strategies: Owner-occupied and investment. The long-term goal of both – building equity and net wealth. How? By paying down the mortgage, plus property appreciation. Key: Careful planning and proven guidance. This leads to good choices, proper location, timing, and an understanding of the investment potential.
First step: Let’s talk and layout a plan together. Here, we can discuss the best available information and data to build a customized plan that best fits your needs and goals.
How to begin? Let’s talk, today.
Readiness: Planning and Preparation
I rarely change this section. The basics for investing are pretty straight forward. What remains is finding the best path to success and the discipline to stay the course. It begins when you reach out to us. Please make the call today.
Should one invest in stocks, bonds, real estate? Each person has a different view of potential, of comfort levels, of the sense of risk vs reward. Such is the heart of the market place and key to one’s “planning and preparation”. To this, we offer clients our expertise and experience in order to complement your perspective. Our goal: Bring a full range of meaningful options to enhance your discernment, based upon todays market realities. Call today. Let’s set a time.
Our strategies are straight forward, logical, and built on sound reasoning. No doctorate in finance needed to plan and succeed.
Why Call Mike
What We Do – Why We Are Here
We know how to explore and carefully examine the many available options. Yes, we are real estate centric for the long term gains anticipated. While we do NOT ignore other types of investments. We scrutinize for safety and prioritize the most feasible fitting you. It is how we build a trusted relationship with you, as you grow your wealth and secure a solid future.
Small Business: We love small business and provide a full array of financing tools.
Residential / Commercial: We offer strong lenders and a complete package of lending options.
Retirement Strategies: Like myself, as we mature, real estate becomes more personal. If you agree, let’s talk. Together, we can help find answers and solutions to questions about tomorrow. We can start today. We can address a range of questions, from working at home, to a multitude of retirement options. Our efforts are to bring clarity to important real estate planning issues.
Purchasing Options for Investment Properties: We finance Nationwide investment property purchases. Little known loans requiring very limited documentation – NO income tax returns. The loans are based upon the properties cash flow. Curious? call. Investing out of the area is not rocket science.. yet you do need to have some knowledge, let us fill in the blanks for you to succeed and prosper!
Another perspective of ours: Buy Now, buy as much as you can. Why?
1) Properties continue to appreciate each year, due to supply / demand imbalance. This increase tends to rise faster, than money we can save.
2) High interest rates can benefit today’s buyers, as it takes out speculation pricing and keeps much the competition out of the market
3) When and as interest rates drop, many Buyers now sitting on the sidelines will enter the market. In turn this will drive the rate of appreciation even higher, from multiple offers and over-bidding of price.
If these ideas sound good, let’s start talking today. To make your future brighter, together.
What We Do: Our role is to explain and bring clarity to time-tested strategies able to keep your money working for you. One worthy and profitable of your efforts and valuable time.
Tools: We offer multiple tools and proven methods. The goal: Offering highly qualified and knowledgable professionals ready to make it happen.
Our Efforts: To be insightful and practical. Working with you, to find the best answers, matched with carefully planned timing. Priority: Being straight forward, with no short cuts.
Success begins with solid preparation and a proven professional – Mike Ryan. I know the ropes and am a proven advocate. I offer time-tested insights and experience. Best, I love to see you achieve your goals. Call us. We are the professional team who stands with you. Call today.
We are ready and forward looking !!
Thank you and blessings to all.