Good morning, shut-down government is with us;
Residential Lending
Fruits of preparation & Smart Buying
Call us. Call now.
Yes, the government has shut down, and some Capital Hill whispers indicate it may last until John Q Public starts saying, enough – not one day longer, not one day shorter.
Regardless, preparation remains key. Congress should learn. For those on the firing line, the shut-downs directly affect them. If you are one of those struggling, we are here to help.
For the rest of us, be aware some services maybe curtailed. Again, plan and prepare.
One MSM myth worthy of notice: Turns our 25 – 34 year olds – Gen Z and Millenialls – change jobs (avg. 2.7 years per job). Such is the SAME as the boomersdid – when we were at that age.
For investing, the world continues turning and stocks keep rising. Good News: Fix and flip borrowers can once again attain loans in the 8’s. Interesting: Close to 30 % of single-family purchase market is going to investors. Potential buyers are still waiting. Another note of interest: 85 % of rental homes are owned by individuals, owning 5 or less houses. Institutional investors hold 2.2 % of the market.
Always, let’s talk: Real estate is, above all, highly sensitive to local market condition – buyers & sellers, life styles, rent or buy, value, etc. This despite most commentary being more nationwide, thus limiting its specific application. Also key: A thorough knowledge of lending strategies, how best to apply them, and when. How to 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 here to be your lending & planning specialist. How can I be of assistance to you? Long-range planning? Short-term immediate need? Can provide an overall review of your finances? Give a ring, or email. Let’s talk. Let this be your first step to success.
Important Points:
1) Mortgage Rates: Improved, but now trending sideways. For some, a refinance opportunity is a worthy conversation, CALL.
For buyers, coming holidays and holiday shopping, often bring seasonal short supply in homes. Fewer buyers, fewer listing. Thus many listings belong to sellers wanting to sell. Good news: For many, a great opportunity to buy. Plus, though interest rates have eased, I don’t hear of many bidding wars, meaning a more stable market. This is good news. 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 effect GDP growth, but growth will continue. There is even talk of possible rebate checks, paid by tariff revenue. Positive numbers.
B) Employment: No government based reports, yet ‘other’ sources are indicating another month of low job growth. In line with all we hear from the streets and our conversations with you.
C) Inflation: The recent PCE report (Personal Consumer Expenditures), the favorite measure the Federal Reserve Board follows. Market expectations met, with 2.7 headline year over year, and the core reading 2.9%. Still hotter than what the Fed states they are seeking at 2 %. The shelter component we take about ad nauseam is still adding .3 % give or take to the numbers. Another number is portfolio management, coming in at adding .3 % year over year. This number is from what money managers are charging. In reality, portfolio managers are not charging you a higher percentage, the market is up so the same management fee percentage is larger. The same you would have paying a property manager, if the rents go up, the management company makes a bit more money. Their percentage has not changed.
Our take: PCE is overstated by close to 1 % meaning room to cut rates.
Residential Real Estate: Appreciation, though easing nationwide, remains positive, year-over-year. Latest CoreLogic report has slowed to 1.3 % year-over-year, with 12 month estimates of + 4 %. Pretty good I say.
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 we have had 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 ready to start 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 continues stiff as pro-forma consideration is still off the table.
Consumer Spending: Remains strong, with no data on 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: With the Fed cut, mortgage rates dropped. With it, we have more calls concerning refinancing. But more important,, we have many on the sideline, but with the advantage of having applications in and ready to submit. Preparation: Key to a faster close.
Another client: A couple year project is finishing. The client is splitting out a duplex, selling each unit individually. A tool helping maximize potential profits. 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 available and various 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, different options. One of our tools is the “Associates” that makes up our company name.
More tools: Residential lending allowing for reverse 1031 exchanges, a business manager of an LLC being able to sign papers for a very high net-worth individual who desire not having their name on anything, strategies to defer capital gains taxes, to strategies able to fund large depreciation dollars to shelter one against big income tax bills. All reasons to call, today.
The options go far and wide. We start with YOU. And love to see what can be accomplished.
Have an idea not easy to pursue? – Call us. We love to have conversations to flush out every potential option and method, offering you a full range of the best choices.
“It starts with our first conversation”
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Preparing for your tomorrow
Let’s start today.
With all the financial talk, we look forward to meeting with you, where you can talk through questions, thoughts, and solutions. All in the name of serving you best.
And what is most important: Those we have around us. Be well and be safe! Enjoy your family and friends, with thankfulness and gratitude.
