While catching up in my feedreader this morning I came across the title Fannie Mae 10% Down For Real Estate Investors. This was published on Scott Ficek’s Minnesota Investment Property Blog. (I just want to give credit where credit is due since none of my lenders gave me a head’s up…for Pete’s sake.) Anywho, you can read up more about this at the Investment Mortgage Guy’s website. Thanks for the heads up, guys.
Filed under Financing Options, Real Estate Investing
I have had to address this topic four or five times over the last few weeks so I thought I would address it here. Your appraisal is different than the actual value of your home. (Appraisers, you are certainly welcome to weigh in on this post if you like.)
Let me say that again. Your appraisal is not the value of your home.
Most appraisals are ordered to support or not support the bank’s loan on a home. An appraiser comes out, looks at trends, comparable houses and their sales prices and determines whether or not the home in question is similar in so many ways. Then that subject home either falls in to a range that is acceptable to the bank or it does not.
I like to help people buy homes in neighborhoods where the house they are purchasing has hidden equity. If every house in the neighborhood has sold for $200,000 in the last 6 to 12 month and we are buying at $180,000 then you’d like to say you have $20,000 of hidden equity right off the top.
But not so fast. Are you an anomaly purchase or is the neighborhood heading in that direction? One below market sale in a neighborhood is no big deal. Two can raise an eyebrow. Three or more in a six month time period is a very large red flag.
When you look for hidden equity there is a lot to consider. How established is the neighborhood? How close are schools, employment centers and shopping? What is the surrounding area like? Historical value? And a few other items to check off.
A seller and a buyer determine value. An appraisal supports or denies that value. Nothing more, nothing less.
Now if you are in the mood we can discuss how appraisals are one of the chief reasons we got into the mess we are in today. Appraisals were supposed to help guard against what happened happening.
Filed under Financing Options, Kansas City Real Estate, Misc. Real Estate
Finally, Fannie Mae has decided that real estate investors (really, really qualified real estate investors) are not the enemy! The loan limit of 4 has once again been taken back up to 10.
I could pontificate on this but after reading Jeff Brown’s post on the subject I really don’t see the point. Just jump over there and read it.
Oh, and sorry for the lack of posts this past week. I’ve been working with three different home buyers. Now, I know many in the news media want you to believe housing is falling through the floor and we’re all gonna die. But I just don’t find that to be the case.
Now, don’t party too hearty you real estate investors. Get some sleep. We can talk tomorrow. 🙂
Filed under Financing Options
“Others would see what’s possible and do the same. There are literally thousands of real estate investors, big, small, and tweeners, who’d love to be able to acquire more real estate while the gettin’s hot. But they’re stopped before they get outa the starting blocks because either they can’t find a lender in the area, (Hellllllo FHA) OR they’re too successful as real estate investors and, golly Aunt Bea, we don’t want that, right? After all, who do those thousands of investors think they are anyway — Americans investing for their retirement? Guess they should be waiting on all that money they’ve been makin’ with their 401(k)’s, right? (Ouch!) “
The above paragraph comes from a well written blog post giving one man’s answer to the current lending problems. Believe me, if you are a real estate investor, it would be worth your time to make the jump over and see what Jeff over at BawldGuy is saying. And be sure to read the comments. Much to be learned there from Another Investor and BawlGuy debating.
Filed under Financing Options, Worth Reading
The single biggest reason you should be thinking about buying a home now is interest rates. Seriously. Have you checked them lately? Give your mortgage person a call. You’ll be stunned if you haven’t been paying attention.
Then, a home buyer client of mine sends me an email telling me about this interest rate opinion and I was both happy and a little worried. What if we start to get deflation? That would be a tragedy I would not want to see come to light. My base instinct says we won’t get there. Or anywhere close to there. At least not with the amount of capital the feds keep pumping in to the economy.
Right now really is a great time to buy a home in Kansas City. If you have a down payment, a good job or business with verifiable income and a good credit past you can do quite well. Better than your parents had ever hoped of doing. At least as far as buying a home is concerned.
Filed under Financing Options
BBQ Capital | Kansas City Real Estate Investing 