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Ladies and Gentlemen, Place Your Bets!The Big Gamble?By Bill Swift Wiest Realty & Mortgage Co., Inc. Uncertainty abounds for many. Do you jump in now or stay on the side lines? If now is the time, which property type or scenario poses the least risk and probability of the best return?
Also In This Issue...
The 2 to 4 Unit Market Begins to Show Signs of Life! After dismal quarters, closing activity has picked up– especially in Apple Valley. However, almost all sales we found were REO or short sales. Most needed repair or rehab in one form or another.
No Clear Rebound in Unit Prices
5+ Unit Sales Fall Off A Cliff Single Family Prices Fall As Sales Increase
Supply was decreasing as of the 1Q ‘09, however, expiring GSE foreclosure moratoriums, rising unemployment and high March NOD’s suggest a 2nd wave of inventory is on the way.
Go to https://www.WiestRealty.com for more detailed supply, employment, sales, and market trends. All downloads are free! Want to pick Bill's brain? Contact him online at our website: Bill@WiestRealty.com Opportunities for investors have slimmed down as the market correction has matured. However, higher loan amounts have become available in certain areas as a result of the American Recovery and Reinvestment Act of 2009. They are generally known as high balance or conforming jumbo. In general for FNMA conventional conforming purchases: 1) Loan-to-values: 80% max, with best pricing at 75% or less. 2) Debt Ratios: total debt ratio not to exceed 45% with 6 months PITI cash reserves (varies with lender). Higher ratios may be permitted if approved by automated underwriting. 3) Credit Score: lenders represent that they will go as low as a 620 mid-score, but significantly increase pricing under 680. 4) Qualifying: lenders typically qualify borrowers with 75% of actual or market rents as indicated by the appraiser with or with out occupancy. 5) Property condition: must be habitable, no broken windows, missing fixtures or other blatant deficiencies. 6) Number of properties owned: maximum of 10 financed properties including primary residence, no property maximum for free and clear properties. This article addresses investor loans. More flexible terms, higher loan amounts and significantly lower down payment options are available under FHA programs for owner occupied purchases. Ask Ted at Ted@1stMortgageAdvisors.com, or (866) 926-5626
Opportunity Knocks
Single and multifamily prices are at extremely low levels. For the first time in years, real cash flows can be had on small properties. Leverage is actually positive in many cases. We know this market. This news letter is only a small sample of data. Log on to our web site and check out more detailed trend data. See the buttons on the left side of the web page. Sales volume is rising, supply is falling. Affordability is in the 70% range but the foreclosed population will have to rent for the next 3 to 5 years. If you’re not a cash buyer, give us a call, we’ll have our mortgage partners help you get pre-approved. Our property management department can supply you with current rental data. See if your purchase decision makes sense! We have an extensive inventory of REO properties. Call us or check them out on our web site. Whether buying or selling, our experienced REO & short sale agents will take you through the process. Multiple offers are common; you need fast and efficient service to get the deal. Opportunity Knocks! Contact Pam Wiest at Pam@WiestRealty.com or (805) 218-7227
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www.WiestRealty.com
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