Some Random Thoughts On the Latest In Real Estate Investment World?
Posted @ 6:26 pm - Filed under Financing, Off The Cuff, Real Estate Markets, San Diego Property Owners, Texas
Some random thoughts about what I’ve been hearing/seeing/livin’ recently.
Interest rates have dropped this week. 30 year conforming fixed rates can be had for roughly 4.5-4.62%. So if you’re in the market to buy a home, I’d find one and lock the rate — sometime around 4:30 yesterday afternoon. Investors not ’saddled’ (How stoopid is that?) with four loans will currently pay in the low 5’s. The best fixed rates I’ve seen for investment long term in my 40 years — period. So if you’re contemplating makin’ a move, ya might wanna light a fire under yer booty, cuz it ain’t gonna last. Ya heard it here first.
File under ‘Ya can’t make this stuff up’. Underwriters are now penalizing investors, regardless of their track record of success. Here’s how — and I swear I’m not makin’ it up. If you’ve acquired income property less than two years ago, they’ll count the loan payments against you, while DISALLOWING the rental income. I know of one case where a man’s total cash flow from his real estate portfolio was roughly half of his job income. But due to this strange new rule he looks as if he taken on a massive amount of debt his income cannot support. All via smoke and mirrors. (Twilight Zone theme playin’ in background.)
Though there are several projects in Texas (among other locales) in which I place clients, my all time favorite (in Texas) is down to the last couple duplexes, one of which is the model. They’ll be building more there, but not ’till late spring/early summer. I’ve referred to this particular project as the gold standard, as the product itself, it’s income, plus the demand for the neighborhood by owner/users are all 5-Star.
Had an hour long conversation this morning with a good San Diego friend who happens to be one of the most knowledgeable lenders I’ve met in my career. We spoke of the relative merits of San Diego income property as compared to growth regions I currently recommend, along with a new project he has in mind for next year. He wants me to join him, and several others in what he’s calling a ‘traveling circus’ of experts talking/debating current events and how they effect San Diego investors. Count me in when my schedule clears.
That’s all for today. I’d love to talk with you, as I am, as usual, in need of my next fix. 619 889-7100 will find me most every time. Have a good one.
This entry was posted on Tuesday, November 24th, 2009 at 6:26 pm and is filed under Financing, Off The Cuff, Real Estate Markets, San Diego Property Owners, Texas. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.