Monday, September 17, 2012
This has been a fabulous year so far. The market is moving. Buyers are buying and listings are selling. BUT we have not been able to see increases in values yet. Whenever I try to push the value on a listing the market responds with low activity. Buyers are still a little shy and want to know that they are getting "a deal" before they make a purchase. The consensus is no one knows for sure what the future holds for real estate. The general belief is that we have bottomed out and are starting to recover. I hope this is true. There are still some really good deals to be had. If you have the ability to do repairs the market is ripe for opportunities in purchasing postive cash flow rental property. The rental market is very strong. One apartment owner told me he is 100% occupied and he has been able to raise his rents for the first time in 6 years! Buying investment property is still a little tough when looking for a good loan product. Most commercial loans are ARM's (adjustable rate mortgages) with a 5 year balloon. There are a few local banks that will lend money if you have 25% down and good cash flow. Credit unions are also great for commercial purchases. First time buyers have OFHA which will give you 2.5% toward your closing costs.This is an FHA product with 3.5% down. There are some pre payment penalities. Chase bank is offering Mortgage protection to all AFL-CIO members. That means if they lose their job or die the mortgage gets paid. Plus they give $500.00 off on closing costs. Chicago Title is offering AFL-CIO members discounts on title costs. If you have a house that is at a higher rate and have been unable to refinance because the value is less than you owe or you have less income than you did when you purchased you can apply for a HARP loan. Your present loan must be a Fannie Mae or Freddie Mac loan, To find out if your loan is one of these go to www.makinghomesaffordable.gov to see if your loan applies. Call me if you have questions about real estate and real estate finance. Let me put my 27 years of experience to work for you.