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February marked this year’s Mortgage Bankers Association Conference & Expo. The annual summit serves as a chance for those involved in the real estate lending industry to discuss trends, market cycles and forecast conditions.

Trying to make sense of the real estate lending market?

For the uninitiated investor trying to make sense of real estate lending and financing options, it came seem like a lot to take on. There are a lot of factors that play into the overall conditions of the real estate lending market. The MBA conference is a great way for you to get a gauge on current lending conditions and alternative financing options as well as an idea of what you can expect to see coming down the road via legislative and regulatory changes.

If you can’t attend these conference, that’s okay! Each year, we talk with an industry insider who attended the conference to bring you key takeaways and insights into the world of real estate lending.

This episode, we talk with Casey Siggins, a loan origination expert with Franklin Street specializing in real estate debt and equity. Casey gives us his takeaway from the conference and we discuss what’s going on with the big players: agency debt, CMBS, and bank loans. We also talk alternative financing and lending options as well as construction loans.

Don’t miss this episode for your real estate lending outlook!

About Our Guest:

Casey Siggins is the Director of Loan Origination with Franklin Street Capital Advisors. Casey specializes in the origination of debt and equity for all income-producing properties. Previously a Senior Analyst with Franklin Street, Casey assisted in the transactions of more than $200 million in assets. Casey is actively involved with the Tampa Bay real estate investing community.

You can reach Casey directly at casey.siggins@FranklinST.com or by calling his office at (813) 397-1638. You can find out more about services offered by Franklin Street through their website.

 Resources

• 2018 Real Estate Lending Outlook

The post Ep. 152 Casey Siggins: Your 2018 Real Estate Lending Outlook appeared first on Real Estate Investing in Florida.

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It’s a new year and change is in the air. With financial regulation changes sure to come and the recently announced Federal interest rate increases, it’s no wonder mortgage banking and real estate lending is hot on investors’ minds.

This episode, we have Livingston Hessam, who just returned from this year’s Mortgage Bankers Association Commercial Real Estate Finance and Multifamily Housing Convention & Expo.

Listeners will remember Livingston from episode 70, in which he gave us a recap on multifamily mortgage banking and real estate lending from the 2016 conference. Livingston is Vice President of Walker & Dunlop‘s Tampa office. Livingston brings over 12 years of experience in real estate lending and finance solutions to Walker & Dunlop, which just celebrated it’s 80th anniversary.

Livingston offers up a recap of the 2017 CREF/Multifamily MBA Conference and discusses key themes from the past year and the current state of mortgage banking and real estate lending.

What’s In Store for Mortgage Banking and Lending

Agency Annual Caps

• Fannie Mae & Freddie Mac each allocated $36.5 billion for 2017 (same as 2016)
• Certain loans and portions of loans are excluded from the cap (i.e. affordable and green/energy efficient)
• Fannie Mae & Freddie Mac multifamily production totaled over $110 billion in 2016.
• Fannie up 30%, Freddie up 20% from 2015
• Expected to capture 40% of total multifamily volume for 2017 ($50-55 billion each)

Commercial Mortgage-Backed Securities (CMBS Loans)

• Risk-retention regulations put in place in 2016, narrowing amount of CMBS lenders
• Post-election stability, but more selective lending market
• CMBS lenders ramping up bridge-lending

10-year Spreads

• Life-insurance (50% leverage and under): 125-135 range
• CMBS (75% leverage): 250-280 range
• Agency (80% leverage): Low 200s range
• Federal interest rate sees .25% increase
• Expected to increase to 2.75-3% by end of year

Hot Topics

• Trump Administration
  • Tax reforms
  • Dodd-Frank roll-backs
• Retail lending
  • Publix most active retail buyer in FL
  • Grocery chains are buying out plazas after lease terms or taking right of first refusal on new lease terms
  • Reduced supply of grocery-anchored retail
  • Strong retail appetite for real estate lenders

Investor Resources

• In addition to his V.P. role at Walker & Dunlop, Livingston is President of the Society of Real Estate Professionals (SOREP). Formerly the Tampa chapter of University of Florida’s Bergstrom Council, SOREP hosts networking events and seminars to professionals and gives back to Florida universities. SOREP focuses on all aspects of the real estate industry and is open to all. Click here for more info.
• Walker & Dunlop offers comprehensive real estate financial solutions for all income-producing properties. For more info, visit Walker & Dunlop website.
• To contact Livingston directly, click here.

The post Ep. 122 Livingston Hessam: What You Need to Know About the State of Mortgage Banking and Real Estate Lending appeared first on Real Estate Investing in Florida.

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Election 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

• Call NFM Lending for more info on investor mortgages toll-free 888-574-7770
• How to Get Approved for the Best Mortgage Without Sticking a Fork In Your Eye
  • https://elysiastobbe.clickfunnels.com/sales-page
  • Amazon
  • Barnes & Noble

The post Ep. 108 Elysia Stobbe: Post Election Update & 3 Changes w/ SFR Investor Mortgages appeared first on Real Estate Investing in Florida.

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Normally, 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

The post Ep. 81 David Campbell: Buying Notes Can Be a Great Way to Invest in Real Estate appeared first on Real Estate Investing in Florida.

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“Inventar”: last episode, we were introduced to this phrase by our guests, Josue Romero and Juan Nunez. The hardships faced in Cuba as young men and as immigrants to Florida instilled in them an invaluable determination to thrive and to make the best out of any situation given – to invent success out of nothing through hard work. This episode, we learn how Juan and Josue applied these principles to Florida real estate as we trace their success stories from their introduction into the real estate industry to where they are today.

Josue was introduced to the financial side of real estate in 2009, at the peak of the financial crisis that crippled Florida’s real estate markets. We learn how he was able to find success as a mortgage broker despite the dire state of real estate financing. Juan, with Josue as his mentor, entered the investment side in 2011 and quickly found success in the single-family residential markets fixing and flipping. Together, Juan and Josue formed a dynamic, cooperative relationship founded on principles of hard work and perseverance and are now leaders in Florida’s single-family markets. Josue is the owner of MyLendingHub.com, a mortgage calculator website and Juan is owner of Zenun Enterprises, a real estate investment firm. This episode, they discuss their approach to lending and investing as well as the current state of Florida and Hillsborough’s real estate markets.

• Focused on Single-Family Markets
  • Majority fix-and-flip deals
  • Emerging in development and construction
• Hot Hillsborough SFR Markets
  • Carrollwood
  • Citrus Park
  • Town ‘n’ Country
  • Northdale
• Appreciations not really a problem for next couple years, but investor pool diminishing
• Lending markets moving from FHA to conventional institutions (Fannie Mae, Freddie Mac)
  • 3% down for qualified investors and lower premiums than FHA
• Tips for Investors
  • Focus on single market and expand only after well-established
  • Large portfolios are difficult to manage alone
  • Have a team; network with agents and brokers
  • Due diligence is key
  • Stay in budget

For lending inquiries or solutions, contact Josue by phone – (813) 802-6970 or visit www.mylendinghub.com

For any investment inquiries or potential investment opportunities, contact Juan by phone – (813) 766-2959

The post Ep. 80 Cuban Immigrants – Coming to America & Discovering Real Estate Part 2 of 2 appeared first on Real Estate Investing in Florida.

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The coming year is looking to be an eventful period for mortgages and financial lending in real estate. Debt markets are poised to undergo significant changes over the following years amidst regulatory changes and geo-political headwinds. Investors, both seasoned and novice, should be aware of the changes and the effects they could have on current and future mortgages.

Livingston Hessam, Vice President of financial solutions firm Walker & Dunlop and financing expert, discusses these changes in the debt markets and what investors need to know about their impacts on mortgages and other debt-equity options.

• 2016 Mortgage Bankers Association Conference
  • Annual conference gauges financing market for coming year
  • Mixed outlook for 2016
  • Multi-family holds strongest appetite for lenders
• Debt Categories
  1. Agency Debt – Fannie Mae / Freddie Mac
     1. Conventional rates, senior housing, student housing, manufactured housing
     2. High-leverage, non-recourse, cap limits
     3. Reached 2015 cap before end of year
     4. Introducing smaller deal offerings ($1-5 million) – lower upfront closing costs, for typically novice borrowers, not included in annual cap limit, do not require same level of eligibility requirements
     5. Only can acquired through authorized servicers/lenders
  2. CMBS Markets (Commercial Mortgage-Backed Securities) – Loans sold by banks into secondary markets
     1. Amid current CMBS 10 year maturity loans wave
     2. Several regulations coming into effect causing uncertainty: Risk Retention (Dec. 2016) – Req. CMBS issuers to hold 5% of loan to securitize deal
     3. Investors and lenders advised to close deals in first half of year
  3. Life-Insurance Company Loans
     1. Typical deal – sub-70% leverage, non-recourse, strong exp. sponsor, well stabilized market
     2. Positive lending outlook for 2016
  4. Conventional Lending (Banks)
     1. Regulatory changes: Dodd-Frank Act
  5. Alt. Lending
     1. Walker & Dunlop offers bridge-lending packages
     2. Good for investors with assets not ready for perm. agency lending
     3. Up to 80% of cost for pre-stabilized deal or value-add deal, up to 36 months, help re-sell or re-finance
     4. For multi-family, student housing, manufactured housing, independent & assisted living, and skilled nursing

Livingston kindly provided us with a detailed, corporate overview package for Walker & Dunlop, further describing the financial solutions they offer as well as contact information.

Corporate Overview 2.22.16

The post Ep. 70 Livingston Hessam: You Will Want to Hear What Is Happening With Mortgages! appeared first on Real Estate Investing in Florida.

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Florida real estate investors should all be familiar with the flood insurance line-item on their properties’ expenditure lists. Much of Florida real estate is subject to blanket, federal regulations regarding flood insurance requirements and financial institutions require flood insurance as a prerequisite for lending on all residential properties. Many investors may not know that their properties may be eligible for flood insurance exemptions on a case-by-case basis .

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.
    • Surveys
    • 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: brad@nationalfloodexperts.com

The post Ep. 67 Brad Hubbard: You Can Increase the Value of Your Property With This Flood Insurance Technique appeared first on Real Estate Investing in Florida.

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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

Interested in contacting First American Financial or want to learn more from Mark on the new rate hike and other economic info? Check out the company website and visit the Economic Center

The post Ep. 60 – Mark Fleming: What Does the Fed Rate Hike Mean to Real Estate Investors appeared first on Real Estate Investing in Florida.

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When it comes to multifamily investing, the size of the deals is often the most intimidating, but as we know, with bigger risks come bigger rewards.There is always a reason not to do something. The transition to becoming a multifamily investor may seem overwhelming but many investors make the move into multifamily markets and overcome the obstacles to become successful multifamily investors.

Karma Senge is a multifamily investor with quite an interesting story. Like most real estate investors, Karma cut his teeth in investing in the single-family markets. After entering the market in the early 2000s, Karma had soon acquired over 350 properties in his portfolio and was single-handedly managing them all. After a brief departure from real estate investing to recover from the stress of single-family investing, Karma reentered the market with a focus on multifamily investing. Despite his renewed vigor, Karma had to work his way back from the ground up in the multifamily market, eventually acquiring his first investment on a 6-property portfolio. Karma’s story is one of hard work and perseverance. Karma managed to overcome the obstacles ahead of him and establish himself as a successful multifamily investor in Florida and the Southeast U.S.

• Alternative Financing
  • Seller-financing and creative debt options provide an appealing alternative to institutional debt options
• Due Diligence
  • Researching markets and properties is imperative before committting to any deal
• Find a Mentor
  
  • Someone who is an experienced multifamily investor can serve as an invaluable source of information and guidance
• Have a Team
  • A team of experienced staff or even a partner can help to manage responsibilities and stress
• Community Investing
  • It is important to consider tenants when investing in multifamily. Invest in community-oriented projects and developments.

Karma recommends:

Rich Dad, Poor Dad by Robert Kiyosaki and The Big Leap by Gay Hendricks, PhD for those thinking of entering into multifamily investing.

If you would like to find out more about Karma’s investment firm, please visit his website

you can contact Karma via email at karmalodrowsenge@gmail.com

The post Ep. 56 – Karma Senge: Trials & Tribulations of a MultiFamily Investor appeared first on Real Estate Investing in Florida.

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Joe Fairless bought his first single-family investment properties in his home state of Texas after leaving a successful, but unrewarding career in advertising. After finding that multi-family investing offered greater returns and less inventory, he began making the transition to multi-family investing.

His first deal was managed through unconventional measures. Lacking the standing as a seasoned multi-family investor, Joe incorporated non-traditional, creative equity solutions for obtaining capital for his first 168-unit apartment complex in Cincinnati, Ohio. Now founder of Fairless Investments, Joe controls millions of dollars in multi-family investment properties. Joe shares his experience in multi-family investing and provides tips for securing capital through creative equity methods.

• Challenges for Single-Family Investors
  • Lack of credibility in multi-family markets
  • Traditional lending and private financing may be difficult to attain
• Network Personal Contacts
  • This is a good practice for single-family investors to find financing by networking personal relationships for interest in multi-family investing
• Strategic Networking
  • Network and affiliate with organizations that may not be lenders but have cash flow or may have eye towards investing
    • i.e. philanthropic organizations, community foundations, business groups
• Establish Investment Base First
  • This does not mean a blind-fund or requirement of prior monetary investment
  • Form verbal contract with investors based on shared financial goals
  • Pursue investment opportunities that suit shared criteria
• Structuring Deal With Investors
  • Preferred returns – investors get cash from deal before yourself
  • Acquisition fees
  • Performance hurdles
  • Post-sale incentives
• Tips
  • Make yourself attractive to lenders and investors
  • Know the market, know the deal
  • Investing is starting a small business; structure so that you may sell that business. Don’t get tied down to an investment

Joe has his own daily podcast in which he interviews guests on a variety of real estate investment strategies

For more information on Joe, visit his website

You can also contact him by email at info@joefairless.com with questions or investment opportunities!

Joe also shares some helpful literature for single-family investors looking to make the transition:

Investing for Dummies – Eric Tyson

Commercial Real Estate Investing for Dummies – Peter Conti & Peter Harris

The Complete Guide to Buying and Selling Apartment Buildings - Steve Berges

The post Ep. 51 Joe Fairless: Transitioning From Single-Family to Multi-Family with Creative Equity appeared first on Real Estate Investing in Florida.