Sadly, banks continue to stumble, mortgage rates is on the rise with higher imports and lower exports, yet the FED is to lessen cost. So, where do we grow and safeguard our money now? something will eventually break if they keep raising interests and quantitative tightening.
Well agreed, I'm quite lucky exposed to finance at early age, started job at 19, purchased first home at 28, got married shortly afterwards to raise kids early. Going forward, got laid-off at 40 amid covid '19 outbreak, immediately consulted with an advisor in order to stay afloat and after subsequent investments, I'm barely 25% short of $1m ballpark goal as of today.
I've shuffled through a few advisors in the past, but settled with *Camille Alicia Garcia* her service is exemplary and she's a genius in portfolio diversification. I'd suggest you research her further on your browser, sure you'll find her basic info.
Appreciate this recommendation, hopefully I can get some insight to where the economy is headed and strategies to beat inflation with when I hear back from Camille .
Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
There are advisors in cities around you but I needed services of one who can guide me irrespective of location. Catherine Morrison Evans comes highly recommended especially in times like this. I am hedging and haven't lost much to the recession. I found her in 2020 when the market was at an all time low. Look her up and thank me later.
In summary 1. find someone rich enough to move out of their house and issue it to you in the form of a loan at a convenient rate for you. 2. find someone poor enough who's going to foreclose on a house and assume their loan for them. Mainly, if you don't want to get the average rate don't go through a bank.
1. Find someone who owns real estate free and clear (retirees) who don’t want to hold the real estate anymore and would rather collect interest payments from the buyer for the remainder of their lives. 2. Find someone who has low equity and can no longer make payments on their property (Pre foreclosure) and offer them an alternative where they don’t get foreclosed on. Yup!
great advice brother but will seller's bank allow to transfer the same interest rate without any extra charges ? why would they do that ? can you clarify @@InvestLikeMike_
Yup - completely different market compared to two years ago. Gotta watch out for those property taxes in Texas too. Interest rates just came up within the past few weeks too.
Also - JUST CLOSED on a property with a 2.75% interest rate AND $70k if seller financing at 0% interest for 30 years! I’m telling you guys - subject to is amazing!
The reason most loans come from banks is that banks take on a big enough number of loans to safeguard themselves from failed loans. With the option youre presenting your are asking an individual to assume the risk of non repayment fron another individual. Those are NOT good odds
There is an assumable loan in my area for 2.75% but the house is old and would need a complete remodel , I don’t think it’s worth it if I have to take out 100k to pay them off and also remodel home…thoughts ? They purchased home in 2021 for 275k va loan , they want 320k for it so not much equity imo
Wouldn’t you be building equity by renovating it? Problem with that is that you can’t refinance after renovating - cause then you’re replacing the 2.75% loan with a 7%. You could do a heloc though. If the monthly payment makes sense - it could be a good deal. Schedule a call for more insight!
Only an idiot would loan their house at 4% when they could earn 5.4% risk free in bonds. That would be pretty funny to find a seller this desperate to unload a house.
Yeah you need to find distressed properties. You should join Pace morbys fb group - there are people who post deals in the group and you can see what type of deals are being done ✔️
@@treeguyable Nice! But just as I suspected. I don’t think any of us would mind 7% to 13% on homes under $100k. Unfortunately where I reside the crappiest homes start at 350k. 7% on 350k upwards coupled with property taxes, mortgage insurance, homeowner’s insurance, HOAs, etc makes monthly housing payment impossible for most.
Buying down the points generally isn’t worth it unless you expect rates to stay high for the foreseeable future. In our current market, most people expect rates to come down within a year - so it wouldn’t necessarily make sense to buy points right now considering that the rates might be lower in a year from now anyways.
I've heard you can offer the seller a lump sum as an incentive so they don't walk away fully empty handed. "You can say I'll give you the 10k you've paid and I'll take over the loan." Hopefully you'll recover that money when the house appreciates.
Says the current rate is sitting just over 7% immediately shows a figure of 7.753% which is clearly not just over 7% but more like about 8%…. What are you doing man it’s gotta be drugs… 😅
@@InvestLikeMike_ Oh, I'm fine. I took out a 10-year, fixed-rate loan in July 2021 at 1.875%. And that's without any discount points. Suffice it to say I'm a Happy Camper. I was just curious how many "like" 300 was.
Funny you say that - I just closed on a property with a 2.75% interest rate AND the seller gave me 70k of seller financing for 0% interest for 30 years (no ballon). You’d be surprised at the type of deals like this
It’s a good play for some sellers looking to avoid paying capital gains tax at the time of selling. Also the risk is low. Let’s see sell traditionally: $300,000 purchase price -6% commissions ($18k) - closing cost ($2k) - capital gains ($42k) Walk away with $238,000 and put in a 5.4% interest account after 5 Yrs that is worth $309,584 If he sells seller finance at 4% interest $300k purchase price He gets $60k down payment day 1 Interest on $240k for 5 years is $48k So if there is a balloon payment in 5 years that seller makes $348k And if the buyer defaults seller takes the house back and keeps all money collected Sounds like a good deal to me.
You could do that but remember you have a 10% penalty and a taxable event. In my opinion, pulling money out of a 401k is the last resort of you have no cash and no equity. I’m certain situations it can be a great move - especially with bonus depreciation at 80% this year. Schedule a call to learn more!
Also bear in mind that 401k plans limit loans to no more than $50,000. Basically, the IRS sent out an interpretive letter in the early-1990's stating that any loan in excess of $50k would likely be considered to be a withdrawal. Hence, all plans set $50k as a cap.
