Mortgage Payment Relief is Here 3 27 2020

Categories:

Mortgage Payment Relief is Here 3 27 2020

 

Good news for some mental and mortgage payment relief.

 

Most of the major banks and Fannie Mae and Freddie Mac (the conventional loan team) now have ways to help those requiring help with mortgage payments.  This does include some relief for multi family loans also.

This I believe will help some relax and get through the next few months without dumping properties on the market.

Let me know as you see any other positive news in the financing world as it changes very fast.

This is an article from Market Watch

 

This is out of the state of California and I would expect this to be the same in all states real soon.

by

INVESTOR MORTGAGE REPORT 3 26 2020

Categories:

Investor mortgage report

INVESTOR MORTGAGE REPORT 3 26 2020

Investor mortgage report

Investor Mortgage Report 3 26 2020.

 

The Good.

 

After agreeing to purchase $200 billion in mortgage backed securities last week, the Fed has agreed to put more liquidity into the conventional loan market (this is the only market so far) and will buy up to $50 billion/day for the foreseeable future.

 

This will allow lenders who offer conventional mortgages in the market to continue closing loans at their current record pace.

 

That being said, they are still overwhelmed with the business. Plus, they now face new issues like unemployed borrowers and a slowdown in appraisal times and title availability.

 

The Not So Good.

 

With most of the buyers backing out of the market, the market for mortgage backed securities for Ginnie Mae is shrinking. These are the mortgage backed securities for FHA, VA, and USDA. This will impact some of the buyers for your homes.

 

What this means is all or most of the mortgage companies will either stop offering or will raise the credit and income requirements for these loans. We will see a slowdown in government backed loans until the Fed figures out a way to help.

 

Unlike conventional loans, the servicers (those that take your payments) are required to cover the payments to the investors when the borrower does not pay. When defaults rise, buyers stop buying loans and move towards the conventional market. Bail out please!

 

The Bad.

We will be lucky if 1% of the lenders who were lending outside the conventional box are still around (or halt operations) the next 2 to 4 weeks. This is a very big pool of loan products that rental property investors use if they are out of the conventional box. The options are gone for now!

 

 

The local banks and credit unions.  Most are on hold and taking an approach of “wait and see unless you have a great deal and are a good client.” Call them and check in to see if they are lending. If not, ask them when they will be back in the market.

 

We will keep you informed as lenders change course and start funding loans again for investors.  It’s not IF but WHEN you should be ready. Focus on deal quality, keeping your financial condition strong (keep making your payments), and develop a portfolio of your work.

 

A couple weeks ago, all lenders were trying to get your business. Now those who make it easy for lenders will get money.

 

We will be doing an Investor Mortgage Report every Monday, Wednesday, and Friday. If you want us to send you a copy, provide us with your email and we will add you to the outgoing list. That way you’ll know the moment lenders start coming back.

 

by

Current State of Real Estate Financing: March 23, 2020

Categories:

Investor mortgage report

The information below is to simply inform you and help you make educated decisions about your investments. It is NOT to instill fear or anxiety. We’ve had more than enough of that lately.

What We Know

We have spoken to banks, lenders, title companies, and many others in the industry. This is what they’re saying:

Title: Most are still open and recording documents (even if the counties they work in are not).

Banks/Lenders: Most are still open for business, but lines for financing are forming fast. Don’t wait to get in line for yours!

Non-QM Lenders: Most have closed and are not able to provide funds to investors at this time.

Bottom line: The number of lenders and loan products are dwindling. That means lines for available loans are going to grow longer and longer. It’s smart to hop in line now. The longer you wait, the longer the line will be.

What We DON’T Know

It’s fair to predict that the road ahead will be tough for many real investors. But rest assured, it’s not all doom and gloom! Even now, creative financial measures are being taken to help investors find ways to make money during this volatile time in our industry.

How Investors Are Reacting

Right now, investors seem to be experiencing a variety of reactions. Some are stumped and frustrated with their investments/investment plans. Others are determined to make the best of these dark times, and are discovering innovative ways to maintain or increase their cash flow

What YOU Can Do

  • Get in line! If you want to secure a loan for your next deal, you need to get in line now. The longer you wait, the longer the lines will grow.
  • Get creative! There are many ways to manage your real estate portfolio. Need help thinking outside the box? We can help.
  • Stay positive! It’s so easy to get sucked into the media mayhem of fear, uncertainty, and anxiety.
  • Stay active! This is a rare, unique time in our world, and as difficult as those times might be, we all know they pay off in the long run. But ONLY if we take advantage of their unforeseen opportunities. So don’t sit back wait. Dive in. Act now!

Money helps drive the real estate investment engine, and we all need to stay informed on where it’s flowing. Those who are well capitalized and looking to benefit from this market will need financing. And there are still many options available.

What are you experiencing?

Want to chat more? Contact us with your email address, and we’ll keep you up to date as the real estate investor market changes.

Feel free to send us questions, comments, and feedback! We’re here for you during this turbulent time.

by

There’s Always a Silver Lining

Categories:

The past week has been a whirlwind. Markets have fluctuated, small businesses have been hit hard, and lenders all around are pulling the plug on real estate investors.

But you know what?

There’s ALWAYS a silver lining…you just need to know where to look.

Right now, that place is investor-friendly lenders.

Don’t wait around for banks and lenders who only dabble in real estate investments. Jump in line and start working with lenders who fully support and understand what you do.

We are not running scared like traditional banks and lenders. In fact, we’re charging full steam ahead, eager to keep you and your investment business succeeding.

Because you know what?

There are golden opportunities ahead, and we want to make sure you get to take advantage of them.

But you have to act FAST, before long lines for loans form and you’re forced to wait. Waiting means missing out on a wide array of cash flow boosting opportunities.

Let’s get going and create your silver lining today!

by

Be Active AND Proactive

Categories:

A lot of real estate investors are wondering what they should do right now as COVID-19 sweeps the nation. Should they sit and wait for everything to calm down? Or should they push ahead and keep investing?

We think you should be active AND proactive.

Take the bull by the horn and find a way to BOOST your cash flow during this strange, uncharted time in our world.

How can you do that? Here are a few tricks to consider:

  • Lower your rates: Rates are at an all-time low. If you wait until the market rebounds, you might miss out on those rates and get locked into much higher, more expensive rates.
  • Improve your return on credit (ROC): Wherever you are with your financing, it’s always worth a checkup to see if you can get a Return on Credit increase.
  • Skip a payment or two: With rising job uncertainty, some of your tenants might have a harder time covering their rent. Put yourself in the best financial situation possible. Give them a couple months of no payments. And once they start paying rent again, consider lowering their payments. If they’re safe, you’re safe.
  • Get out of private loans. One simple point can increase your cash flow. For example, a $300K loan could mean hundreds of dollars in your pocket.
  • Look at interest-only loans.
  • Lower your term and rate.

Don’t wait until the markets rebound. You might miss out on months or even years of lower payments.

NOW is the time to act AND be proactive.

Let’s get the process moving today.

by

The Current Supply and Demand Issue

Categories:

A couple of weeks ago, we had A LOT of loan options for investors.

In fact, it was a little overwhelming.

Now, only a week after the President announced the state of emergency, we have about half the options.

Next week, we’ll probably have even less.

For example, a good friend of mine who is a mortgage broker dabbles in investor loans. This past week, he lost all of his products for investors, except conforming loans. Since he is so busy, he decided to stop offering loans to investors.

Your local banks are also putting a hold on investor loans. Since most of their clients are small businesses, they need to wait to see how their portfolios handle the shutdowns across the nation. With small businesses being forced to close, their current loans and deposits are in jeopardy.

Not only that, but small banks also have loans out on real estate that rely on small business employees to pay rents.

Banks are going to be more selective right now.

What does that mean for you?

It means:

  • Less options and fewer lenders
  • Longer lines (longer than the ones you waited in for groceries the past two weeks)
  • Higher pricing and lower LTV’s (on non-conventional loans)

This is a supply and demand market, and with only a small portion of lenders still working the investor loans, the demand is sure to outweigh the supply.

DON’T WAIT!

There’s no doubt you’ll have many investment opportunities coming your way. But to take advantage of those opportunities, you need to have the financing ready to go.

Get your team together NOW! Make sure those helping you don’t just dabble in investment loans. Make sure it’s their primary focus.

 

by

Get In Line NOW

Categories:

Markets for investor loans are changing rapidly.

Day by day, the amount of funds available are SHRINKING.

A week ago, it seemed like everyone offered investor loans, and they based those loans on:

  1. Credit scores
  2. Lease options

This week, we have seen these same lenders close these lines or reprice them. Furthermore, they’ve made qualification tougher.

Why are lenders doing this? A couple reasons:

  1. The closing of small businesses such as restaurants, bars, gyms etc., has created THOUSANDS of unemployed tenants. Plus, most governments are not enforcing evictions.
  2. Resources are stretched thin with the refi boom, and there are divisions in the mortgage industry. For example, some appraisers refuse to work.

What does of this mean for you as a real estate investor?

It means it’s going to be harder to get a loan from these banks. Why? Because the loans are becoming riskier.

When your loan is based on leases and a large portion of your tenants are out of work, that puts strain on rental property owners. Add on the fact that governments are not enforcing evictions, and you have a group of lenders who are not willing to take the risk.

But that doesn’t mean all lenders are pulling the plug. It just means your options are shrinking, and they’re shrinking QUICKLY.

So, what should you do?

Easy.

Take action NOW!

Get in line with a lender who can help you and is willing to take the risk. Don’t wait for things to blow over. If you do, you’ll be at the end of a line longer than the lines for toilet paper.

Let’s get the process moving TODAY.

by

Don’t Just Survive. Thrive.

Categories:

With the U.S. reeling from COVID-19, and the economy taking a hit, a lot of investors are wondering, “What should I do?”

Our suggestion?

Don’t just survive. THRIVE!

You heard us. This isn’t a time to sit back and wait to see what happens. It’s time to take advantage of the market and BOOST your cash flow.

That’s right: BOOST.

How?

Here are a handful of strategies to consider:

  • Lower your rates: Rates are at an all-time low. If you wait until the market rebounds, you might miss out on those rates and get locked into much higher, more expensive rates.
  • Improve your return on credit (ROC): Wherever you are with your financing, it’s always worth a checkup to see if you can get a Return on Credit increase.
  • Skip a payment or two: With rising job uncertainty, some of your tenants might have a harder time covering their rent. Put yourself in the best financial situation possible. Give them a couple months of no payments. And once they start paying rent again, consider lowering their payments. If they’re safe, you’re safe.
  • Get out of private loans. One simple point can increase your cash flow. For example, a $300K loan could mean hundreds of dollars in your pocket.
  • Look at interest-only loans.
  • Lower your term and rate.

Don’t wait until the markets rebound. You might miss out on months or even years of lower payments.

NOW is the time to act!

Let’s get the process moving TODAY.

by

Now Is the Time to Act

Categories:

increase your cash flow, and rapidly build your equity

The world is a little crazy right now.

But that craziness has placed real estate investors in a unique and POWERFUL position.

With time on our hands and the market in constant fluctuation, now this is the PERFECT time to boost your cash flow.

That’s right: BOOST.

How?

A few strategies:

  • Lower your rates: Rates are at an all-time low. If you wait until the market rebounds, you might miss out on those rates and get locked into much higher, more expensive rates.
  • Improve your return on credit (ROC): Wherever you are with your financing, it’s always worth a checkup to see if you can get a Return on Credit increase.
  • Skip a payment or two: With rising job uncertainty, some of your tenants might have a harder time covering their rent. Put yourself in the best financial situation possible. Give them a couple months of no payments. And once they start paying rent again, consider lowering their payments. If they’re safe, you’re safe.
  • Get out of private loans. One simple point can increase your cash flow. For example, a $300K loan could mean hundreds of dollars in your pocket.
  • Look at interest-only loans.
  • Lower your term and rate.

Don’t wait until the markets rebound. You might miss months or even years of lower payments.

NOW is the time to act!

Let’s get the process moving TODAY.

by

Current State of Real Estate Financing: March 16, 2020

Categories:

The information below is to simply inform you and help you make educated decisions about your investments. It is NOT to instill fear or anxiety. We’ve had more than enough of that lately.

What We Know

We have spoken to banks, lenders, title companies, and many others in the industry. This is what they’re saying:

Everything is going so fast we are just taking it day by day and week by week.

Banks:
Currently, banks are mostly concerned about small businesses (i.e. restaurants and bars) getting closed for months. Small businesses ARE their business. Even though the Fed dropped their rates to zero, this will not help businesses with closed doors. How do these businesses cover rent and deal with food rotting in their fridges? How will the hundreds of thousands of workers pay their rent? Banks are looking for the government to announce plans to help these small businesses with payments and inventory.

From an investor standpoint, if small businesses close, unemployment will rise. And with unemployment comes the inability to pay rent. If you own rental properties, that will impact you and your rental loans.

We also believe banks will be a little tighter on lending over the next couple months. They will push more of the government backed programs and mortgage loans they sell off to FNMA or Freddie Mac.

Traditional conventional/conforming lenders.

They are overwhelmed with refinances. Last week, they had to raise rates to slow down volume.

When the Fed lowered their rate to zero it made little impact on these types of loans. Really, these lenders face two constraints:

  1. Too many loans for their resources.
  2. Mortgage Backed Security investors pulling away in these uneasy times and no longer purchasing these loans off their lines.

In other words, they have tons of incoming loans and no place to sell them. With the government buying mortgage backed securities over the weekend, it should free up some capacity.

Bottom line: These lenders are in business and will keep lending. Expect longer closing times and some pickier underwriting.

Private lenders and Non QM lenders.

We ARE all still open for business, but we have concerns on what is happening in the rental markets.

We also understand this is a time to look for opportunities. However, with banks slowing down, there will be more deals falling into this financing bucket. That means there will be a capacity issue, as well. Our focus will be on good, STRONG investors (with proven track records) and strong deals. The so-so deals (tight on potential profits to the investor) will be scrutinized closely and carefully.

Now, if homes sales slow down, then money will not be turning as fast to put back out. That means lenders will have to tighten lending to see how sales impact investors.

Real Estate Closings:
A key part to all transactions is title insurance. Title companies are reliant on their counties to stay open to get updated recorded documents and releases. If counties start to shutdown, we may not have title insurance to close deals.

What We DON’T Know

To be honest, a lot of things. The future is fuzzy as the world faces changes every day. We are CONFIDENT, however, that things will be OKAY and this is a golden opportunity for investors to take advantage of their finances and secure their futures.

How Investors Are Reacting

  • “Great rates!”
  • “Turbulent times. I should wait and see what happens.”

What YOU Can Do

  • Stay calm. Stay informed. Keep an eye on the markets where you invest. Take time to chat with realtors, title companies, and other industry professionals to stay in-the-know.
  • Evaluate all deals with a closer eye. Make sure they’re strong before you invest your money.
  • Be active AND proactive. Don’t sit back and wait to see what happens. Take the bull by the horn and take actions now. Think beyond today and invest in your future.
  • Check in with your tenants. How are they doing? How will their status impact you?
  • Maintain/improve your credit score.
  • If you have a bank loan, check in with your banks.
  • Find ways to bring in more money while you can. Interest rates are at an all-time low, and the lines to take advantage of them are increasing. Hop in line now so you save yourself A LOT of money in the future.

Money helps drive the real estate investment engine, and we all need to stay informed on where it’s flowing. Those who are well capitalized and looking to benefit from this market will need financing. And there are still many options available.

What are you experiencing?

Want to chat more? Contact us with your email address, and we’ll keep you up to date as the real estate investor market changes.

Feel free to send us questions, comments, and feedback! We’re here for you during this turbulent time.

by