Ep. 108 Elysia Stobbe: Post Election Update & 3 Changes w/ SFR Investor Mortgages

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investor mortgagesElection years always have the potential to inject uncertainty into investment and securities markets… this year has been particularly interesting and it should be fair to say that the result of this election ties an enormous “?” to the end of 2016. Market uncertainty has been reflected in recent rate rises for investor mortgages.

Elysia Stobbe, NMLS# 146751 is not deterred by uncertainty. Elysia is not only a mortgage expert with NFM Lending, but with over 30 properties in her personal portfolio, she is also an experienced investor. She has shared her expert advice on numerous radio and television broadcasts and has authored a book on getting the best investor mortgages. She has been following changes to investor mortgages closely and is finding flexibility and continued promise for real estate investing.

3 Changes to Investor Mortgages

  • .5% hike in mortgage rates driven 10 year treasury bonds post-election
    • e.g. $300k loan sees monthly increase of $90
  • Fannie Mae (FNMA) loan-to-value down-payment requirement 25% up from 20%
  • Multi-property SFR (up to 4 units) investors can hold up to 10 mortgages if purpose is to purchase investment properties

Other News

  • Cash-out options have been increased for investment properties
    • Shows improved confidence in property equities
  • Return of bank statement programs to bank portfolio loans
  • Recent rise of investor rehab loans
    • Investors can save cash while making properties rent-ready

Finding Financing

  • Lot loans
  • Mortgage brokers/bankers
  • Community banks
    • While they may not be offer as much community banks generally offer better terms than national banks
  • Big banks
  • Alt. options: seller-financing; hard-money

Contacts & Resources

Ep. 106 Larry Goins: Finding Ways to Make Money in a Rapidly Rising Market

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ways to make money in a rising marketReal estate investors have heard the news, they’ve seen the figures: by all accounts, real estate markets are tightening up.

In all the major asset classes, investors are reporting rapidly rising markets, which translates to increased competition for deals. Some investors are starting to wonder how far until they hit the ceiling and would-be investors are wondering how to make money in real estate if opportunity isn’t knocking.

Larry Goins stopped waiting for opportunity to come knocking a long time ago.

As a 30-year veteran of real estate investing, Larry has tried his hand at just about every asset class. Over the years, he has learned that opportunity may not always present itself, but it is always there waiting.

Larry has become a master of finding ways to make money in real estate through his many years of investing experience and he is helping others find the same.

Based out of South Carolina, Larry currently wholesales, buy-and-holds properties and offers seller financing in 12 different states, including Florida. In addition to his active investing lifestyle, Larry provides a remarkable resource for investors to learn the ins-and-outs of real estate investing. Through numerous books, seminars and his radio show, Larry gives investors the tools they need so that they can make money in a rapidly rising market.

Ways to Make Money in Real Estate

  • Seller Financing under Dodd Frank
    • Dodd Frank affects seller financing for consumers only – read Larry’s report here (past Invest Florida Episode on Dodd-Frank Seller Financing)
    • Residential Mortgage Loan Officers specialized in seller financing should review loan applications – view Larry’s RMLO Directory
  • Marketing & Finding Deals
    • HUD houses - HUDHomestore.com
    • Secondary markets
    • Craigslist
    • Direct-mailing
    • Agent/Broker networking
  • Resources & Links

To find out more about working with Larry on future deals or for other investment questions, visit larrygoins.com or call his office at (877) LARRYGO (527-7946)

Ep. 92 John Fedro: Using Mobile Homes to Get Started Investing in Florida Real Estate

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mobile home investingFlorida has its fair share of mobile homes. Whether providing seasonal residences or  year-round affordable housing, mobile homes have become an ever-present property class in the Florida real estate market. Though they have been a historically neglected asset class, investing in mobile homes can provide strong, consistent returns. As markets in other asset classes become more competitive, mobile homes may be a rising hot market for investors.

John Fedro is one investor who discovered the opportunity in mobile home investing early on. After entering full-time real estate investing in 2002, John purchased his first mobile home in a park in Florida. He quickly saw the potential investing in mobile homes and after his first year had acquired 14 properties. In a virtually untapped market, John was able to develop an investment strategy exclusively for mobile homes that ensured strong returns. He has since expanded his portfolio to Texas and is actively sourcing deals in other states.

  • Mobile Home Investment Types
    • Private land mobile homes – longer to close, traditional sale of real estate;
    • Mobile homes in parks – categorized as personal property in most states, not subject to title issues/other typical
    • Mobile Home Parks
  • Financing
    • Little to no conventional lending; mainly cash deals
    • Seller financing
    • Dodd-Frank regulations do apply to mobile homes w/ financing
      • Mortgage loan originators can assist with compliance
  •  Costs + Fees
    • Purchase for >$10k
    • Sell for <$25k on payments
    • Buyer repays minimum $300/month on property
    • Mobile homes in parks, buyer pays lot fees, utilities, possibly insurance
  • Move-in ready
    • Buyers will usually do refurbs/improvements
  • Marketing
    • Mobile homes in parks: Craigslist, driving through parks, talking w/ park managers
    • Mobile homes on private land: networking, direct-mailings, bandit signs, seller lists
  • Hot Florida Markets
    • Miami, Jacksonville, Tampa, Gainesville
    • Rural areas, small towns
    • Panhandle
  • Investment Tips
    • Do multiple deals
    • Effective marketing strategies
    • At least 60 mile radius for investment market
    • Seek knowledgeable investor

Check out John’s website for even more information on successful investment strategies for mobile homes. John has free videos and a podcast where he covers tips for investing in mobile homes. Contact John directly by email at support@mobilehomeinvesting.net

Ep. 81 David Campbell: Buying Notes Can Be a Great Way to Invest in Real Estate

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david-campbell-blog-photo-200x300Normally, our episodes focus on making strong, equitable real estate investments but as investors feel the restraints of a tightening lending market, they are looking for alternative financing options. Mortgage notes represent a secure and a stable income market. Buying and selling mortgage papers can yield sizable returns that can supplement an investor’s income-base.

David Campbell is a jack-of-all-trades in real estate investing. He is an experienced real estate investor and developer, he handles property management, and he buys and sells mortgage notes and offers private financing options. David, who made the transition from high school band director to real estate investor in 2001, began buying and selling mortgage papers in 2012 and has manged an increasingly profitable debt portfolio since. This episode, David discusses his multi-transitional career in real estate and how buying mortgage notes can be a great way to invest in real estate.

  • Market demands alternative financing options
  • Private lenders + Seller financing
    • Self-Directed IRAs – about 60% of alt. lending market
    • Used for non tax-efficient assets like mortgage notes
  • A significant mortgage/debt portfolio can be stable and lucrative income-base
    1. Happy to make $ on deal by end term?
    2. Deal still profitable w/ out loan payment?
    3. Predatory loan claims risks?
  • Mortgage notes and Dodd-Frank
    • Work with Registered Loan Mortgage Originator – creates ‘Qualified Mortgage’ papers
    • Loan can be guaranteed against inconsistencies with Dodd-Frank regulations
  • Ensure notes are good before buying
    • Borrowers – debt-to income ratio 45% or lower; no higher than 6.5% above average prime offer rate; 15 + 30 year terms (9.5% rates)

David’s website www.hasslefreecashflowinvesting.com is loaded with materials and resources for real estate investing, development and financing. Visitors can find out more about David’s enterprises as well as check out his blog for even more information! For other inquiries, David can be reached directly by email: david@hasslefreecashflowinvesting.com

Ep. 49 Kevin Jursinski, Esq: Update on Dodd Frank Seller Financing Laws and Real Estate Lending on Single Family Properties

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Kevin-F.-Jursinski-B.C.SSince the Dodd-Frank Act was signed into law in 2010, the immense and labyrinthine series of stringent financial regulations has been a foreboding presence in real estate lending, especially in Florida. Instituted in response to the Great Recession, Dodd-Frank has posed a formidable threat to investors. With over 2000 pages of new rules and financial regulations, investors are unsure exactly what is exempt from Dodd-Frank stipulations.

Kevin Jursinski, B.C.S is FL Bar Board certified in real estate and construction law as well as business litigation. With over over 30 years of practice in Florida real estate law as well as personal experience in the Florida investment market, Kevin has the knowledge and insight to summarize the bill and define its role in real estate lending. Kevin also discusses how Dodd-Frank related litigation might be approached in court.

  • Dodd-Frank Act (2010)
    • Dense and punitive set of rules outlining financial regulation
  • Seller-Financing & 3rd Party-Financing Affected
  • Gray Areas Explained
    • Dodd-Frank does not apply to non-consumers (Investors) of residential property
    • Commercial properties do not apply
    • Dodd-Frank only affects primary residences (vacation homes exempt)
    • Purchase-money financing only affected by Dodd-Frank in owner-occupied sales
    • Residential home-builders are precluded under Dodd-Frank from becoming contractors of seller finanacing
    • Dodd-Frank does not apply retroactively – previous owner-occupied financing not affected
    • Dodd-Frank applies to origination of loan intent
  • Recent Dodd-Frank Changes
    • Owner-occupied residence lending/financing
      • 1-Sale exceptions – Sell one property per year w/ Dodd-Frank guidelines
      • 3-Sale exceptions – Sell up to three properties per year w/ Dodd-Frank guidelines
  • Government Oversight

To keep updated on changes to Dodd-Frank and its impact on real estate lending visit Kevin’s website, www.kfjlaw.com

Kevin’s article on  Update-as-to-the-Dodd-Frank-Act-Seller-Financing-Restrictions

Dodd Frank Seller Financing Rule Update