| With the vaccine rollout ahead of schedule and the economy recovering, 2021 brings us a renewed sense of opportunity. But we all remain diligent: with tremendous activity in the marketplace and historically low interest rates, we need to constantly stay in touch with the forces that shape our market. My unmatched research abilities and cutting-edge technology keep me consistently tuned into the pulse of the marketplace. There has never been a better time to connect with me and let help you realize your investment vision.
Remember that my trademarked tagline is “Make the market work for You!”
I have added some personal thoughts and at the bottom is some key information from one of my referral partners, Tom Bonetto. He is the lending coach for one to four units.
Balancing your life is one of the hardest items that I think that any of us encounter. I wanted to share my thoughts on this. Anyone that knows me either on a business level or on a personal level knows that I am passionate in everything that I do.
When I had covid-I closed three deals while in the hospital and I was critically ill. One of my clients said afterwards, “Of course, you did!”.
Yesterday, I had a client call that I haven’t spoken to in over a decade and he said, I know how you work and how you are. I am now bringing to market several of his multifamily which I sold to him these many years ago.
Here are my foundations:
- A loving atmosphere in my home is the foundation of my life!
- If in a disagreement with loved ones, deal only with the present not the past
- Share my knowledge, everyone knows that I love to teach!
- Be gentle with the Earth-she loves us
- Remember that the best relationships are the ones that your love for each other exceeds your need for each other!
- Judge your success by what you had to give up in order to achieve it.
- Approach love and cooking with the same reckless abandon.
Here are the thoughts from Tom Bonetto on investing with 1-4 units as well as some information about basis points. DON’T FORGET TO REGISTER ON THE WWW.JUSTSOLDIT.COM WEBSITE, I HAVE A GREAT GLOSSARY ON THE BACKSIDE AND IT IS GREAT.
I’d invite you take a look at the “March 2021 Mortgage Rate and Market Update” for the specifics on what is happening regarding rates for 2nd homes and investment properties:
https://lendingcoach.net/march-2021-mortgage-rate-and-market-update/
Fannie Mae and Freddie Mac are tightening the underwriting criteria for second homes and investment properties, the government sponsored entity said last Wednesday.
“Recent amendments to our senior preferred stock purchase agreement with Treasury impose additional risk criteria on the loans we acquire,” the GSE said in a letter. “One of those restrictions is a 7% limit on our acquisition of single-family mortgage loans secured by second home and investment properties.”
This means that non-owner occupied transactions (2nd homes and investment properties) will become a bit more difficult in terms of qualification and slightly more expensive, in terms of interest rates.
Lenders are now being forced to add to the cost of the loan and raise interest rates – anywhere from .50 basis points to as high as 250 bps. That can mean an increase in rate of 1/8% to 1.25%, depending on the investor.
Finance of America, my employer, has added .50 basis points for all 2nd home and investment property purchases, which is on the low side, relative to many in the industry. Others that I’ve spoken to have added as much as 250 bps.
From Investopedia: “Basis points, otherwise known as bps, are a unit of measure used in finance to describe the percentage change in the value of financial instruments or the rate change in an index or other benchmark. One basis point is equivalent to 0.01% (1/100th of a percent) or 0.0001 in decimal form.”
Don’t hesitate to contact me for more information:
Tom Bonetto, The Lending Coach – NMLS#1431961
480-788-2658
tom@lendingcoach.net
https://lendingcoach.net
Have a great day and remember that I answer my phone 602-688-9279.
Linda
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Let’s start speaking about the recovery and what is going on-part 1 of...
Thanks for linking to my article, Linda – now is a very interesting time in our real estate world and things are beginning to change on the mortgage side. More importantly, you are spot-on regarding work/life balance. Great words of advice, to be sure!
Always great information and great thoughts from Linda on the work/life balance, which we can all learn from. Also, thanks for info from Tom, good insight on where this real estate market is headed in terms of lending.
Great relevant information Linda on the upcoming changes in financing for investment and second homes. I like how you simplified this information as many people do not know what a bps is for a loan. Life/work balance is challenging for all of us. Thanks for sharing your insights. Your drive and energy is refreshing. It is amazing how much you are able to accomplish given all the plates you have in the air and complex deals you are working on.