Blog – Page 431 of 790 – Mike Pfefferman

12

Feb

Real Estate

5 Ways Bridge Loans Help Real Estate Investors Increase Profits

5 Ways Bridge Loans Help Real Estate Investors Increase Profits Bridge loans, which are also commonly referred to as interim financing, gap financing or swing loans, help a motivated home buyer to secure financing before their home or investment property sells. Lenders can usually modify these flexible loans to accommodate a person’s unique needs.

Current real estate market conditions allow savvy investors to make big profits as long as they can move quickly on good opportunities. Low inventories of existing homes and slower than normal construction developments have combined to drive the median home price across the US to $223,900. This represents a 7.6% national average increase through 2018. Market experts expect prices to rise by another 6.3% over the next 12 months which may present very good opportunities for home buyers.

Bridge loans are a short-term funding solution with some unique features.

They usually include payback terms between 2 months to 1 year.
Most bridge loan options gain approval in about 15 days.
May receive up to 70% of the property’s value in the loan.

Bridge loans are a tool real estate investors can use to increase their holdings in this hot market. How can these funds be used to help you make more money from your properties?

When prime properties come up for sale, investors need to be ready to take advantage. If most of your cash is already tied up in other properties, a bridge loan is a perfect way to get the quick cash you need to win the bid.
While a property is up for sale, investors can use bridge loans to continue financing new projects. When the sale is complete, the funds can be used to pay off the bridge loan.
Hard money loans are a popular option for real estate investors who can’t wait for the normal bank loan process. However, these funds usually come with higher interest rates. Bridge loans are a lower cost alternative, as lenders generally charge less interest for these accounts.
Not sure what you’re going to do with your new property? If you wait too long to make your decision, chances are good that the property will be gone. Use a flexible bridge loan to secure your property. If your plans change, it’s simple to convert the funds into a more conventional loan structure.
For flippers who buy properties, perform renovations, and put the properties back up for sale for a profit can use bridge loans to quickly increase their holdings without sacrificing the liquid assets they need for material, labors, and other renovation costs.

In order to qualify for these funds, investors need to prove that they can afford double mortgage payments, present a clear plan on how they intend to pay for the loan (either through resale or refinance), and have a property that can be used as collateral with at least 20% existing equity.

When used as part of an overall investment plan, bridge loans help real estate investors buy more properties, which can mean more money in their pockets. Call your trusted home mortgage professional to discuss bridge loan and other financing options that best suit your personal situation.

11

Feb

By First Rate Financial Group

Financial Reports

What’s Ahead For Mortgage Rates This Week – February 11th, 2019

What’s Ahead For Mortgage Rates This Week – February 11th, 2019 Last week’s economic news included Federal Reserve Chair Jerome Powell and weekly readings on mortgage rates and new jobless claims.

Fed Faced with Public Mistrust of Institutions

Federal Reserve Chair Jerome Powel said in a speech to a group of teachers that the Federal Reserve is paddling against a current of public mistrust of the institution. Mr. Powell assured his audience that the Fed was “working in a non-political way” to support the economy.

Mr. Powell said that the Fed was working to earn public trust and said that the Central Bank must be accessible to ordinary Americans and lawmakers. In support of his remarks, Chairman Powell cited three meetings he had with lawmakers and a possible meeting at the White House.

Publicity of a recent dinner with President Trump caused speculation that the Fed may be influenced by the administration. Analysts connected last Monday’s White House dinner with the Fed’s sudden reversal of its plan to raise the target range of the federal funds interest rate. Chairman Powell said that he wanted the nation’s prosperity to be widely shared; he cited “education and mobility” as key components of achieving his goal.

Mortgage Rates, New Jobless Claims

Freddie Mac reported lower mortgage rates with a decrease of five basis points across the board for the three types of mortgages it tracks. Rates for 30-year fixed rate mortgages averaged 4.41 percent, rates for 15-year fixed rate mortgages averaged 3.84 percent.

Rates for 5/1 adjustable rate mortgages averaged 3.91 percent. Last week’s mortgage rates were approximately the same as for a year ago, but analysts said that less buyer competition and more available homes this year would encourage would-be homebuyers into the market.

First-time jobless claims were lower than the prior week at 234,000 new claims filed but were higher than the expected reading of 225,000 new claims filed, which was based on the prior week’s reading of 253,000 new claims filed. The reading for the four-week rolling average of new jobless claims gained 4,500 claims for a reading of 224,750 new claims filed over the most recent four weeks. Analysts said that although the four-week average was higher, it remained near historic lows.

What‘s Ahead

This week’s scheduled economic news includes readings on inflation, retail sales and consumer sentiment. Weekly readings on mortgage rates and new jobless claims are also scheduled.

08

Feb

By First Rate Financial Group

Real Estate

How To Keep Your Pets Safe During Your Home Sale

How To Keep Your Pets Safe During Your Home Sale If you have pet, you probably wonder what you can do to keep them safe after you decide to put your home up for sale. With all the disruption going on during a home sale, it’s all too easy for pets to get lost, frightened or even injured. Learn how to keep your beloved pets safe during your home sale.

Provide An Oasis During Repair Work

Most home sellers make a few repairs before allowing agents to show the home for sale. In some cases, repairs can be extensive, leading to a lot of construction materials, tools and strange new items in the home. This can be frightening for pets as they watch their once familiar setting undergo changes.

Make sure your pet has someplace to get away. They should have their own oasis where everything is still the same. It may be their doghouse, a spot in the corner in your bedroom, or a basement, as long as they can escape to familiar surroundings.

Keep Routines

Pets are creatures of habit. They can easily become disoriented or frightened when their routine is disrupted, as is so often the case during a home sale. Meals may be sporadic, food and water dishes may get moved around the room, and regular walk times can be overlooked.

To keep your pets safe from stress, try to keep their routines as unchanged as possible, including small things like those quiet moments when they like to sit on your lap at the end of the day or during your morning coffee.

Take Them With You During Showings

Your real estate agent advises that you and your family leave the home during showings. But you should bring your pets with you, too. Leaving pets behind in the garage, barn, basement or behind a closed door really isn’t a great idea. Curious homebuyers could inadvertently come upon your pet, giving both parties a shock. A startled pet might even run off or lash out.

Instead, keep a pet carrier in the car for use when you and your family have to leave for showings. You’ll keep the whole family together and your homebuyers can freely explore your entire property.

These pet safety tips will ensure that your pet will get through the home sale process as smoothly as possible. It’s really just a matter of providing a little oasis, maintaining routines, and avoiding buyer and pet interactions.

If you are interested in buying a new property or refinancing your current property, be sure to contact your trusted home mortgage professional for information about current financing options.