Want to share our latest information that went out to our CPA’s, Attorneys, and our extensive client base. In our complex real estate world it seems to take all of our joint efforts for a successful close. As you know we are experts with the most complex transactions and also welcome your “smallest vanilla type borrower” to the most sophisticated profile.
We know you are focused intensely on your clients’ tax filings and want to reach out and review some compelling trends and opportunities in our current real estate finance market that may be relevant to your clients’ real estate portfolio.
- We are experts with Commercial/SBA/Apartment/Indus
trial/Construction transactions of all sizes and types. We offer complete acquisition and development packages.
- Consider changing a 30 year fixed into a 15 or 20 year program up to $636,150.
- Many equity lines are reaching their 10 year term and will roll into an annual ARM payment based on 15 year amortization. (This comes as a surprise to many clients due to the increased payment even though the terms were clearly stated in the documents).
- Refinance’s combing existing 1st and existing equity lines into a new 1st trust deed. We are then providing an equity line at close for no charge (Which many clients seem to like just sitting if ever needed).
- Review the time horizon for holding a property:
- Why not consider a 5, 7 or 10 year fixed when less than a long term hold: various life circumstances such as family expansion, potential relocation, retirement, extensive remodeling are in the short term time horizon. Obviously the rate differential is a good saving mechanism.
- Student Loans: The rates for financial aid for college loans seem to have a very broad range. Taking cash out of one’s property warrants consideration. $200K-$300K in student loans is no longer unusual.
- Real Estate values are up in every sector and remodeling costs are significantly increasing due to demand. Usually the most economic vehicle is to pull cash out from the property prior to work commencing.
- Investments for long term financial planning are increasingly popular. Initial cash flow is rarely possible but the overall objective is that these properties eventually turn into an excellent asset. Caution, some clients are reaching out too much and are going into rural areas around the country without knowing what they are doing. They’re motivated by cash flow but we all have “war stories”.
- Non Occupant Co-Borrower concept offers great flexibility in helping one buying their first home or buying up etc. This is an excellent opportunity for many at all price points.
These are a few current thoughts we wanted to share. Know how busy you are, but we are always available to run any “What-If” scenarios etc. We are experts with the most complex of tax returns and have a very broad range of real estate and financial expertise at all price points and classes of real estate. Once again we welcome your contact.
Gloria Shulman, Curtis Cohen & all of us at CenTek
- RATES ARE STILL VERY ATTRACTIVE
- FOR YOUR RETIRED CLIENTS: SPECIAL PROGRAMS AVAILABLE!
A few general concepts to help you prevail with your potential offer. Please contact us and we will strategize together how to submit an offer as it relates to financing, based on our extensive experiences. The market is requiring aggressive posturing with multiple offers being so frequently at play and the current competition being so intense.
Important concepts to consider for purchases:
- Loan package must be fully ready to issue disclosures when there is finally an open escrow.
- 30 day closes are possible with many transactions.
- We can issue DU (direct underwriting) approval upfront for many programs (which means you are officially approved for the loan).
- Another common technique is to cut an appraisal contingency down to 5 days.
- Never waive an inspection contingency.
- With condos, the listing agent should provide contact HOA phone numbers at the opening of escrow (Naturally your agent would have vetted the property pre your offer).
A few random thoughts to help you get to the escrow level:
- Waiving all conditions ASAP.
- Release of the deposit– if money is needed by the seller and you are approved.
- Offer a 30 day lease back if the seller does not have a new property for the relocation.
These are just a few important thoughts to proceed with a successful purchase.
The language at the Fed meeting this morning references improvements across the board in the overall economy, although the comment was made ‘they’ could be more robust. The takeaway factor was the expectaion of inflation. Historically this inflation language triggers many to buy real estate as a hedge.
Extreme Market volatility with the bond markets— which is the driver with interest rates. No one expected rates to be jumping the way we are experiencing but the election triggered this chaos. Long term, the issue is the Fed’s decision with interest rates. In reality, the feeling is that one rate hike should be enough to return the policy to neutral and December seems to be the target. It is proposed that we will see medium term growth in the economy due to Trump’s infrastructure spending…