Brad Hubbard is an expert in all things related to flood insurance coverage and requirements. As founder of National Flood Experts, Brad has been saving investors thousands of dollars in expenditures by eliminating annual flood insurance costs. Brad discusses what he looks for in a property to determine its status in relation to FEMA’s national flood-zone map. He also discusses what investors and property owners can do to reduce flood insurance costs on properties not eligible for exemption. This is a great method for investors to eliminate a long-standing line-item on a property’s financial portfolio and increase the property’s long-term investment value.
Individual properties may be built outside of federal flood-zone parameters
Compare construction of building with FEMA flood-guidelines
Due Diligence on property
Elevation Certification – verifies building’s base flood-line in a 100-year period.
Other info on elevation and structure of building
To contact Brad with questions regarding flood insurance or for an eligibility inspection, call the National Flood Experts at: 1-800-561-0396 or email: firstname.lastname@example.org
Winter is coming… And so are national interest rate increases.
The Federal Reserve has recently announced a new national interest rate hike, the first since 2006. Real estate investors are very anxious about the announced rate hike. Many investors are wary that the rate hike may be instituted prematurely in an economy that is not capable of facilitating the effects on real estate markets.
Mark Fleming, Ph. D. serves as the Chief Economist for First American Financial Corporation. With over 20 years’ experience in mortgage and property information, Mark analyzes and forecasts national mortgage and real estate markets. This episode, Mark lends his expertise to our discussion on the new rate hike‘s effect on current real estate markets at a national level, and tells us why investors shouldn’t be so worried.
Federal Reserve Rate Hikes
First rate hike in 9 yrs
2006 – +5% increase
2007 -’08 to Present – 0%
End of Year (2015) – .25% increase
2016 – +1% increase
Instituted to correlate with expected income/wage growth
Long-term, fixed-rate loans not affected
Good for housing markets
House-price appreciation seeing “asset inflation”, especially in Florida
5-6% nationally, higher in FL markets (South Florida)
Out-pacing current wage growth, causing increase in housing rates
Rate hike should slow appreciation growth rate
2016 and Beyond
Rate hike est. 5% increase
House-appreciation (Nationally) projected to slow to 3-4%
Income growth est. 3-4% increase
Commercial real estate to benefit from economic growth
Multi-family to benefit from strong millennial rental market
Hoyt Prindle of the Florida Business Development Corporation talks about Small Business Administration (SBA) loans for investment real estate. Most real estate investors overlook this type of financing, because, frankly, it has limited use for investment property…BUT, the financing source can be excellent for mini-warehouses, hotels, golf courses, etc…OR, the professional or retail user who decides to have some attached rental space on the current space in which they own and run their business/practice. The terms of an SBA loan can make a deal VERY attractive for investors. Listen to Hoyt tells us what programs work best.