The Lending Coach

Coaching and teaching - many through the mortgage process and others on the field

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Announcing New Investor Specific Financing Options

Finance of America Residential Investment Property Financing Solutions

I’m glad to announce that we now have investor specific financing options in the residential income producing space…both long-term and short-term financing available, ranging from 1 to 20 units.

silver macbook beside white pen on black table

These products are tailor-made for real estate investors with income producing properties.

Finance of America Commercial, a division of Finance of America Mortgage LLC, provides individual and business exposure limits with individual FIX & FLIP rehab property loans, along with BRIDGE loans, NEW CONSTRUCTION loans, and SINGLE & PORTFOLIO RENTAL term loans to residential real estate investors across the country.

These offerings have helped clients overcome traditional financing hurdles and build long-term wealth through real estate investment.

These specific lending products and tools are designed with the real estate investor at the forefront – to help provide the personalized service investors need.

Long Term Loans vs Short Term Loans

Income Producing Property/Portfolio Loans – 2 to 20 units

  • 30-year term available
  • Full amortization and interest only options
  • Loans from $200K to $5M
  • Funding up to 80% on purchases and rate/term refinances

Fix and Flip Loans

  • Funding up to 95% of acquisition and rehab costs
  • Max loan-to-value 75% based on ARV
  • Interest accrual on drawn balance
  • 12- and 18-month term options

Bridge Loans

  • Individual property loans up to $3M
  • Funding up to 80% LTC on multi-family
  • Payoff other loans or lenders on completed flips or new builds
  • Ideal for light rehab flips when self-funding cosmetic rehabs

New Construction Loans

  • 12–18-month term for build ready lots in urban locations
  • Funding up to 100% of construction budget and 80% LTC/65% LTV for multi-unit
  • Funding up to 90%/75% LTV for experienced builders (conditions apply)
  • Business purpose loan with no income requirements
Options with FACO and Eligible Properties

Would you like to find out more?  Contact me to discuss your current situation and how you might be able to take advantage of these fantastic financing options.  It would be my pleasure to help you!

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Inflation and Real Estate – Should Buyers Wait? History Says “NO!”

Zoomed Out Picture of Neighborhood

Inflation is hot…and so is real estate.  But what does the future hold for both?

a laptop with graph on screen

As we’ve talked about before, the Federal Reserve is late to the party in dealing with inflation and the latest data shows the rate of inflation is still rising.

Many are feeling the pinch in their wallets, at the gas pump, and at the grocery store.

For would-be real estate buyers that just begs the question…is now a good time to purchase a home?

I’m linking to an article from the real estate blog Keeping Current Matters, and the author does a great job in highlighting why now might be a very good time to buy.  You can access the entire article here…

Picture of Greg McBride

Greg McBride, the Chief Financial Analyst at Bankrate, explains how inflation is affecting the housing market:

“Inflation will have a strong influence on where mortgage rates go in the months ahead…Whenever inflation finally starts to ease, so will mortgage rates — but even then, home prices are still subject to demand and very tight supply.”

While there’s no denying it’s more expensive to buy and finance a property this year than it was last year, it doesn’t mean potential buyers should pause their search. Here’s why…

History Says So – Real Estate Is A Great Hedge Against Inflation

During periods of inflation, prices generally rise across all areas of the economy.

white concrete building

Historically, however, real estate ownership is a fantastic protection against those increasing costs because buyers can “lock-in” what’s likely the household’s largest monthly fixed cost for the duration of your loan.

Not to mention, as property prices continue to appreciate, the home’s value will, as well.

That’s why Mark Cussen, Financial Writer at Investopedia, says:

“Real estate is one of the time-honored inflation hedges. It’s a tangible asset, and those tend to hold their value when inflation reigns, unlike paper assets. More specifically, as prices rise, so do property values.”

Secondly, nearly all industry experts agree that although the current rate of home appreciation can’t stay this hot, the likelihood of homes losing value is extraordinarily slim. As Selma Hepp, Deputy Chief Economist at CoreLogic, says:

“The current home price growth rate is unsustainable, and higher mortgage rates coupled with more inventory will lead to slower home price growth but unlikely declines in home prices.”

Warning Sign with Arrow Labeled Inflation

In Conclusion

Purchasing real estate is one of the best financial decisions that can be made during inflationary times. Buyers also receive the advantage of the added security of owning their property in a time when experts are forecasting prices to continue to rise.

If you are considering a purchase, your real estate search shouldn’t go on hold because of rising inflation or higher mortgage rates.  Contact me for more…as it would be my pleasure to help you.

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Real Estate Survey: Current Housing Market Conditions – July 2022

assorted color houses in a row

One of the top real estate and mortgage analysts, The MBS Highway, surveyed over 3,000 mortgage and real estate professionals around the county for current housing market conditions.

white and brown house under clear blue sky

The results were in line with what many experts are seeing, as mortgage rates and inventory are starting to impact the market.

The Survey

The national results for the July 2022 release showed that 66% of respondents reported their market was still active to very active. 33% saw moderate to significant pricing pressures.

MBS Highway Housing Index July 2022

Of those that said activity was slower, many cited that it was due to a lack of inventory.

Out in the west and southwest, things seem to be a bit slower, however.  Those surveyed see the market slower or normal, versus rapidly expanding.

Many are still seeing multiple offers, but less than previously. Overall, demand is still outpacing supply, but to a lesser extent.

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Four Mental Training Tips for Baseball Players

Mental Training Tips for Baseball Players

I’m linking to a fantastic article from Dan Blewett’s blog over at Elite Baseball Performance entitled “Four Mental Training Tips for Baseball Players”.

Dan Blewett Holding a Baseball

The mental game in baseball is often overlooked and definitely under trained. Here are four tips that will assist the player improve on-field performance and handle pressure situations.

Blewett is a former pro pitcher, baseball academy owner and author of two baseball books. A professional pitcher of six seasons, Dan specializes in pitching and strength and conditioning for baseball and softball players.

You can find the entire article here… and I highly suggest that you check it out! Below are excerpts from his post:

Start a Simple Meditation Practice

The word meditation sounds weird and scary, right? Many players think that only monks, hippies or yoga enthusiasts take time out of their days to meditate. But meditation doesn’t have to be a big scary thing. Rather, athletes should just think of it as quiet time to sit, reflect, and let their minds get a break from everyday life.

Here’s how easy a meditation practice can be:

Step 1: Find a quiet place where you can sit where you won’t feel self-conscious or nervous. A place out of the public eye is ideal.

Step 2: Find a comfortable cushion to sit on or lay flat on your back. Propping up the back by sitting against a wall can be good, but I don’t lay down in a bed or another place where falling asleep is likely.

man wearing black cap with eyes closed under cloudy sky

Step 3: Set a timer for 10, 15 or 20 minutes. Start shorter—10 minutes is a good starting place where you can get your feet wet.

Step 4: Sit still, relax, close your eyes, and let your mind wander wherever it wants to go.

Step 5: Breathe in and out through the belly—pushing it out and in—and consider counting each breath. Counting belly breaths helps keep your mind present, where you’ll feel less distracted by things from the past and future that you’re concerned about

That’s it! Keeping it simple will help you get started, and the quiet meditation time will help reduce the anxiety and stress we athletes feel in pressure situations on the mound or at the plate.

Visualize Yourself Succeeding

hands holding trial frame against white background

Visualizing success is an important part of an athlete’s mental skills routine. If we don’t deeply believe that we can accomplish goals, become who we dream of, or execute on a very specific task…we never will. The self-fulfilling prophecy is a concept in which when we believe something will happen, it becomes more likely to actually happen. Thus, if we believe we’re destined to fail or choke under pressure, we increase the likelihood that we’re correct.

Expect and visualize yourself succeeding—the positivity will carry you through hard times and tough situations. Visualize the good swing you’ll put on the ball, the flight of the pitch you’re about to make and yourself competing in the Major Leagues in front of thousands of fans. If you do that, it becomes more likely that it will actually happen.

Have Confidence and Create a Fight Mentality

When under pressure, it’s easy to want to pull back and be passive, hoping you can get the outcome you want. Rather, we have to get even more aggressive when we get nervous in games, reminding ourselves that we CAN do it, and that we’re going to pull through no matter what.

baseball player on field photo

As athletes, we need to truly believe we can succeed. By both imagining it and reminding ourselves that we’re capable of anything we put our minds to, we can maximize our chance at success.

A lot of times in a game, it comes down to the fight or flight dilemma: when we’re scared of giving up the game-losing hit or we’re nervous about not getting the game-winning hit as a hitter, we pull back and play the game scared. Athletes play their best when confident and aggressive – trying to take the fight to the other team, forcing them to play scared. When times get tough, show those teeth like a wolf and fight for yourself and your team.

Use Positive Comparison

Find players in the Major Leagues who you look up to, who possess similar qualities or characteristics. How would your heroes respond if placed in the situation you’re in? Would they come through and get out of a bases-loaded jam? Would they have a good at-bat when the team needs a big hit? Would they feel nervous or afraid?

baseball player on pitching

Find a player or players who share similar qualities and ask yourself if he wouldn’t be afraid, why should I? If so-and-so would confidently walk to the plate with the game on the line and have a great at-bat, why can’t I? If he could beat this team, I can too because I’m a lot like him.

Use positive comparison as a tool to remind yourself of the special skills you do have, that you might forget when you’re nervous or lacking confidence.

In Conclusion

Nothing happens overnight, so get started today with building new, positive mental habits. Mental skills training is very overlooked despite the fact that most players will report that they feel themselves struggle with doubt, anxiety and low confidence on the field. Make a change today and start seeing how good you could be if you played with confidence and a clear mind every single day on the diamond.

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Housing Market Update: Balance Beginning to Return

Scale with One Large Ball and Many Small Balls that are Tilted toward the Small Balls

I’m linking to a great article regarding today’s housing market.  Essentially, climbing housing costs caused many house hunters to drop out in recent months, which is now providing some relief for the buyers who remain.

Picture of Tim Ellis

‘Homebuyers are getting some relief as sellers slash their prices at a record rate and mortgage rates drop following months of increases’ – Tim Ellis, Market Analyst

Tim Ellis is a housing market analyst with Redfin, and the entire article can be found here…

Activity

Leading indicators of homebuying activity, per Ellis:

  • For the week ending July 7, 30-year mortgage rates fell to 5.3%—the largest 1-week drop since 2008. This was down from a 2022 high of 5.81% but up from 3.11% at the start of the year.
  • Fewer people searched for “homes for sale” on Google—searches during the week ending July 2 were down 2% from a year earlier.
  • The seasonally-adjusted Redfin Homebuyer Demand Index—a measure of requests for home tours and other home-buying services from Redfin agents—was down 15% year over year during the week ending July 3.
Desk with Laptop, Notebook, Pencils, and Coffee
  • Touring activity as of July 3 was down 14% from the start of the year, compared to a 7% increase at the same time last year, according to home tour technology company ShowingTime.
  • Mortgage purchase applications were down 17% from a year earlier during the week ending July 1, while the seasonally-adjusted index was down 4% week over week.

“Conditions for homebuyers are improving. Housing remains expensive, but mortgage rates just posted their biggest weekly drop since 2008, which makes buying a home a bit more affordable,” said Redfin chief economist Daryl Fairweather. “One way buyers can take advantage of the shift in the market is seeking concessions from sellers. That could include asking the seller to buy down your mortgage rate, pay for repairs or cover some of your closing costs.”

The Data

A few other key facts regarding today’s housing market, from Ellis’ analysis:

  • The median home sale price was up 13% year over year to $396,000. This growth rate is down from the March peak of 16%.
  • The median asking price of newly listed homes increased 15% year over year to $399,973, but was down 2.1% from the all-time high set during the four-week period ending June 5.
  • New listings of homes for sale were down 1.4% from a year earlier.
  • Active listings (the number of homes listed for sale at any point during the period) fell 2% year over year—the smallest decline since October 2019.
  • 45% of homes that went under contract had an accepted offer within the first two weeks on the market, down from 49% a year earlier.

Also, pending home sales were down 13% year over year, the largest decline since May 2020.

Graph with Sales -13.5% from Jan-Dec

On average, 7% of homes for sale each week had a price drop, a record high as far back as the data goes, through the beginning of 2015.

Graph of Price Drops from 2015-2022

In Conclusion

Would you like to find out more?  Contact me to discuss your current situation and how you might be able to take advantage of today’s market.  It would be my pleasure to help you!

Lending Coach Contact
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