All Forum Posts by: Account Closed

We're scheduled to come down that way in late August for a stay at Alys Beach and to check out the area to see if we'd like to do STR somewhere between there and Clearwater. When we last came through, Tyndall AFB had been slammed by a hurricane (I think it was Michael) so it wasn't really a good time to get a sense of what could be. This time should be better.

0 Votes

Originally posted by @Jimmy Woodard:

@Keleisha Carter Here's another resource you can check out. If you have a specific city in mind, Airdna and Rabbu have 2 great tools you can use to estimate a property's potential revenue based on comps in the area. DM me if you have any other questions I can help with!

Hat's off to you @Jimmy Woodard, your tip on AirDNA has kept me busy all day. ;-) Great resource, AirDNA is the Best Tip of The Week!

2 Votes

Originally posted by @Yogesh Bhadane:

@Mike Hern

Yeah. Most lenders charging extra for points.

Below is the snapshot—-

Fannie Mae announced March 10 that they are limiting new loans secured by second homes or investment properties to 7% of the overall loans they purchase (roughly HALF their historic levels!), effective April 1. What does this mean to borrowers seeking investment/2nd home mortgages? Turns out, it means A LOT.

Bottom line, demand for second homes and investment properties will be greatly impacted by Fannie's policy. Expect to see far more cash buyers for these situations, and (more than likely) far fewer bidding wars as the new pricing adjustmentsraise rates and costs. Outside investors may eventually purchase more of these loans (which is FHFA's goal), but for the moment, prepare to pay substantially higher costs, or cash for that getaway condo or rental property!

I think you are correct that it significantly impacts most investors. My buddies and I practice a little different method that doesn't become affected by changes in bank policies. We simply take over the debt of the person, for the house we are buying, pay the seller cash for their equity and through title and escrow we transfer the property into an LLC. The sellers don't have the cost of real estate agents and we don't have costs of loan origination or limits on the number of properties we can own. We are not impacted and therefore, we are not slowing down.

1 Vote

Originally posted by @Todd Powell:

@Mike Hern this is interesting on two levels for me.

1. I own quite a bit of Wells Fargo stock and it headed down this year or two, but finally making a climb.

2. In 2009-2010 I experienced a painful shut down of a few non owner occupied rentals I had with B of A. I used these HELOC lines for investing over the years with house flips. I went from $60k and moved them upward over the years and never missed a payment. But, when the economy eroded they promptly shut down everyones non owner HELOCs. They left my personal house alone however. I was shocked and was told this was a West coast VP decision as many were handing their rental keys back to the bank. It was tough for the responsible guy like me who had never missed a payment.

So, if what you are saying is true, then they are so nervous that they are suspending HELOCs but also owner occupied lines of credit? That would be a hard hit for sure and fear like that begins to affect financial confidence of the public. It would be a ripple affect and a downward spiral. In the end, banks do NOT want to own real estate, they ONLY want the interest and with as little risk as possible.

Lets keep an eye on the ball

I went through the Carter years of high unemployment, high inflation, high gas prices and long lines (sometimes 2 hours long) at the pump just to get gas. It wasn't pretty. That sticks with you for a lifetime.

Then in the early 80's I was working for a fortune 500 company, making big bucks and one of my coworkers said his dad bought some wheat futures; and asked if I would be interested. I had never heard of the concept. How do you buy something that doesn't yet exist? I declined because I didn't understand how it worked. He introduced me to Harry Browne's "You can profit from a monetary crisis". That helped me understand much more & began my quest to think like the big banks and hedge funds. They have the big money and they got there, somehow.

I don't think the market can be timed, but the signs around us give away the direction we are heading in each cycle of the economy.

While working for one of the biggest companies in the world at the time and a proven track record of income, Bank of America closed my (large) LOC along with a ton of other people's Lines of Credit and for no stated reason. Shortly thereafter we entered a downturn in the economy and a lot of people got laid off. How'd they know that was going to happen? Lucky guess? Don't bet on it, banks employ large numbers of very smart people to figure out which way the wind is blowing and they know before we do.

3 Votes

Originally posted by @Yogesh Bhadane:

I am seeing significant increase in investment loan interest rates due to recent announcement from Fannie Mae.
They are limiting investment loans intake and Lenders are asking significant down payment like 25% with 4.65% interest rate. How is this affecting rental home investors? http://www.mortgagenewsdaily.com/channels/community/969950.aspx

I say it's related to

Wells Fargo Abruptly Closes Lines of Credit - The End Is Near

https://www.biggerpockets.com/...

0 Votes

Originally posted by @Chris Seveney:

@Dan Jennings

Curious if anyone read their sec filings

https://sec.report/Document/00... a result of the foregoing, the Company reported a net loss of $616,388 in the year ended December 31, 2020 versus a net loss of $68,202 in the year ended December 31, 2019.”

INCREDIBLE!! They've been able to return 36% to investors on a net loss?? We need them to run this country!

1 Vote

Originally posted by @Kyle Momany:

Keleisha,

Add the Florida Panhandle to your list!

Focusing on the area's that are dependent on tourism is a genius idea. Trying to invest in area's that are also industry driven can cause rental restrictions & other laws against Short term rentals. Good luck to you!

What percentage of occupancy would you think for along 30A?

0 Votes

Originally posted by @Niti Bhat:

We have a townhome in Raleigh which has been rented to a nice couple. They are facing issues with their next door neighbor who uses weed and the smell of it is coming in their home too from the vents, which is causing them lot of difficulty, breathing problem etc. We reported this to HOA but they are not doing anything. The couple don't want to talk to the neighbor directly as they are scared.

Has anyone faced similar situation? Should we report it to the cops?

Call the fire department and tell them you smell odd smoke coming from the place next door and you are concerned. They'll take care of matters.

2 Votes

Originally posted by @Doug McVinua:

@Balachandar Duraiswamy The Phoenix metro area job growth and population growth has been and looks to be exploding. The last report I heard was over 290 people per day moving to the "Valley of the Sun"

The valley is very large and spread out with lots of opportunities. Personally, I have generally focused on the SE Valley, Phoenix, Chandler, Tempe, Gilbert, Mesa, Apache Junction, Queen Creek, San Tan Valley, Florence, Coolidge, and Maricopa. That is an area I know the ins and outs well, have vendors that will service the properties, and frequent on a regular basis as an agent, a broker, and a property manager.

The east valley is seeing significant job growth on top of an already solid base. New freeways like the 24 are being built, significant chunks of dirt are being converted to rooftops in the next 5-10 years and additional freeways are also in the planning stages. Chandler and Gilbert are 2 of the highest income per capita in the State and Queen Creek has been one of the most recent favored cities. I could go on and on about how strong the area is.

Investing in the core of Chandler/Gilbert has become more challenging so a lot of the focus has been on the perimeter areas around the core. Phoenix has generally expanded concentrically so investing in the out rings has historically worked out well.

Isn't Phoenix facing a severe water shortage?, not to mention it looks like 114 degrees for the weekend. How do you suspect that will play into future investing?

0 Votes

All Forum Posts by: Account Closed

Account Closed has started 141 posts and replied 4068 times.

Post: Wells Fargo Abruptly Closes Lines of Credit - The End Is Near

Post: Short term rentals city to invest

Post: Short term rentals city to invest

Post: Big hit for investment mortgages

Post: Wells Fargo Abruptly Closes Lines of Credit - The End Is Near

Post: Big hit for investment mortgages

Post: REIT investing - Good or bad idea

Post: Short term rentals city to invest

Post: Weed problem from a nextdoor neighbor

Post: Rental property investment - Arizona