Kevin Elliott’s Post

RATES ARE DROPPING. Reach out for a FREE refinance opportunity. The July employment report, disappointed we also got downward revisions from last months report. Private sector took the biggest hit adding only 97,000 new jobs vs the consensus 140,000. The unemployment rate rose to 4.3% vs 4.1% expected. The Fed rate cut expectation for 2024 has tilted to three total cuts totaling -75 bps. The 10 yr note is down to 3.84% 💇💇📈📈📈💹💹💹

3 Common Reasons Our Clients Refinance (Hint: It’s Not Just About Lower Rates!) 1 - New Structure & Facilities Sometimes, clients need an offset or revolving credit and realize they have to do the same paperwork anyway—so why not negotiate better rates or cash-back deals at the same time? 2 - Interest-Only Extensions Property investors often seek to extend interest-only terms, but banks don't always offer this. Refinancing can help them maintain that flexibility. 3 - Increased Borrowing Power Clients looking to invest in property often refinance to tap into their equity. Some banks might offer better valuations or more borrowing capacity—making it a smart move for growth. Did any of them come as a surprise?

According to the MBA, there’s been a 16% jump in refinance applications last week, with rates now 60% higher than they were a year ago. This marks an opportune moment for homeowners to consider refinancing. Professionals in real estate and finance, take note of this trend for potential opportunities. Learn more about the surge in refinancing here #RealEstate #Finance #MortgageRates #EconomicTrends https://bit.ly/3SPAVZO

One of the end results of lots of cheap money in the market with the Federal Reserve keeping rates low for so long is it encouraged lots of bad habits. Many believed that almost any deal could work with the low rates and if there was an issue—can just refinance to lower rates in a year. With the sharp rise in rates, that thinking has been muted for a while but now we are hearing some are being told to do a borderline economically feasible acquisition deal at today's rates and they can refinance in a year from now when rates are lower. But what happens if rates do not go lower or the business has a few hiccups—make sure to run some various scenarios in case things do not go as planned.

0.5% rate drop! Interest rates just went from 4.25% to 3.75%! 🔥 This is the moment buyers and homeowners have been waiting for. Lower rates mean lower monthly payments and more buying power! Whether you're entering the market or looking to refinance, this drop could save you big. . #bankofcanada #Newhome #Presale #development #subdivision #newlistings #firsttimehomebuyer #investment #realtor #Realestate #off-market #sold #Forsale #Newhome #realestateinvesting #Central #construction #design #company #BC #happyclients #economy #interestrate #srs #realtor

Is NOW the Time to Refi? | Is it Right for You? There is a lot of buzz going on about refinancing with the recent dip in rates. And I get the question, is now the time to refinance? Should I refinance now? Will rates drop again? Will they stay down, or get lower? What if I miss my chance? The answer is the same for all of these questions… if it makes sense for you and your financial situation in this moment do it. Don’t wait for a better rate, don’t force it just because the rates dipped… do it because it works for you and your situation! If you do that, you can’t go wrong! Give me a call if I can help! 239-437-4278 #refinance #rates #finance #ratedrop #interestrates #cashout #debtconsolidation #financetips Apply Today: https://lnkd.in/e5-wf_E

It’s widely understood that realignment of the bid/ask spread requires some degree of market pain. Many might imagine this as a foreclosure or fire sale scenario. Here’s what I see happening 🔮: Properties built in 2022 are often on 3+1+1 year loans (5-year terms). If the lease-up is underperforming, owners might either wait until 2026 to sell or bail now due to high carry costs. If you aren’t familiar with the term “cash-in refinance,” that’s what will be required for many in a few years— and if they don’t have the cash, sale with a partial loss of equity it is. Looking at past patterns, the devaluation process tends to be incremental. Instead of a property selling at a 30% loss, it might sell at a 15% loss to someone more optimistic. The next owner could sell at a 5% loss or even a slight profit, but still far below the initial target. By this time 5-6 years from now, fundamentals have improved. This isn’t an overnight or singular transaction rebalancing process. Everything happened so quickly during the past few years it’s easy to forget real estate investing is ordinarily a slow game.

Update For the week ending September 13, 2024, which followed a holiday-shortened week, the dollar volume of refinance applications increased 52.5 percent week over week. RALI dollar volume is up 161.1 percent compared to the same week last year. RALI count increased 43.6 percent week over week and is up 102.1 percent compared to the same week last year. Source: FannieMae Refi Index

Seeing appraisals in markets with more activity come in under estimated value in part because of recent sales comps combined with where treasuries are currently. Certainly something to consider before refinancing or purchasing. Let us help you plot your next transaction. [email protected] 816-466-5676

Underwater Properties and Capital Calls Due to adjustable interest rates getting high and not being able to refinance, investors are getting capital calls everyday. The question is, what should you do? a) Refuse and own a smaller peice of the property, b) Let the bank take the property, c) Force a sale of the property, d) Change the management company, or e) A combination of any of the above. Use the 4 Pillars to get the information you need to make a decision. Optimizing Rent - Have the management company do market survey to tell you the market rents - Compare current rents in the property to market rents - Calculate the full economic occupancy is at market rents. - Can the property ever make money with nothing else changing? Occupancy - Get detailed information on the economic occupancy - What level of economic occupancy is required to break even? - If it's possible to break even, what is management doing to increase it? Delinquency - Get a detailed report on deliquency, specifically how many days is each unit behind and what is the plan unit by unit - Why did so many units get behind? - What is the plan to improve the numbers? - Who is executing the plan? How are they getting compensated? Expenses - Calculate the maximum monthly spend that will be break-even if economic occupancy doesn't change Get a detailed statement of expenses for the last 3 months, December, January and September and the year before for each of those - Compare year over year, see what has changed, look for the expenses that can be controlled - Look at all the expense greater than 10% and ask how they are going to be reduced At the end of this exercise, you will have the facts about your capital call. Should you throw good money after bad? Should you replace the management company? What you can sell for? What will happen if interest rates stay the same for 6 months or a year. #RenaTalksMultifamily