Category Archives: Financing

5 Tips For Real Estate Pro’s To Get To Icon Status

Posted by Michael McDevitt on
Real Estate = Big Money

As you can tell this post is geared towards those already in the field and I wanted to cover something that is asked time and time again by employees, affiliates and colleagues. As a real estate agent, you may not automatically think of yourself as an entrepreneur, but really, that’s what you are!  You’re building your brand, clientele and entire livelihood from the ground up.  While your business is similar to others in the real estate field, it’s up to you to establish yourself as a legit business and bring growth and success; and that’s a large task!

So, what are some of the key steps you can take to really set yourself up as a solid business, a real estate expert or even an icon in the field?

Now, you may think, “Okay, I can see myself as an entrepreneur, but an icon?  I’m not so sure…”  We’re all aware that to have a dynamic business means to constantly be pushing yourself to continual growth; so aiming for the status of icon in your real estate market or even on a national level can be just the thing to urge you to constantly strive for more.

Does this seem overwhelming yet?  Well, take a deep breath.  Becoming an icon doesn’t happen overnight and will take consistency and a daily committment to provide the best and most innovative service to your clients.

Recently, entrepreneur.com gave five great tips that will help boost you to that iconic level.  Of course, I’ve modified them to make them real estate specific, so take a few minutes to review how you can take your business to the next level!

1. Start blogging- Blogging is a great way to establish yourself as an expert.  You can easily provide pertinent information about your real estate market, your listings, home buying or selling tips and even community events.  Giving people the information they want about the real estate market, their home and the community will keep them coming back for more.  The more you blog on a consistent basis, the more people will begin to see you as a trusted expert in your field and in your community.

2. Market yourself- In being your own brand, marketing is key to your success.  While you may not feel comfortable with self-promotion; it’s really the only way to market your business since you are your business.  Marketing your services, your field of expertise, even your awards or recognitions allows others to get to know you, your values and what you will be able to do for them.  This is just another way to establish yourself as an expert and give an open door to becoming an icon.  Exposure brings recognition, which breeds familiarity and establishes trust.  It’s just how our minds work!

A great way for real estate agents to do this is through a one sheet marketing approach.  We’ve created this for a few of our clients and its been a huge success!  A one sheet is simply a sheet of paper that gives a brief synopsis of who you are, your certifications, area of service, expertise or anything else you want to highlight about you and your business.  They’re perfect for leaving at an open house, giving to potential clients and handing out with your marketing presentation.

3. Create Compelling Content- Whether you’re blogging, writing a buyer or seller page for your website or creating your print marketing material; your content should be compelling.  That means sentence structure and grammar should be impeccable and the topics or advice you are presenting should be up to date and interesting.  Visitors to your website or blog will know when something’s just been thrown on a page, and that will send the message that you are okay with doing the minimum just to get it done.  Why not show how much you care about your business and your customer service ethics through great content?  It will help set the tone for your entire business.

4. Create Products- Did you know that real estate agents can have products too?  While you’re not trying to sell them to make a profit, having products or tools to provide for your clients can help set you apart. Giving your client or potential clients something extra is unexpected, sets you apart and establishes yourself even more as an expert.

5. Take it to the Next Level- Now that you’re seen as an expert in your community, boost yourself to icon by taking it up a notch.  If you’re passionate about selling homes or helping people avoid foreclosure; do all you can to grow in your area of expertise.  Begin to register yourself as an expert on real estate sites or other marketing avenues and network, network, network! Credibility is a key component to being viewed as a leader and expert. Real estate conventions are always looking for speakers in a specific field and the more you put yourself out there, the more likely you are to have opportunities on a national level. Imagine how sought after you’ll be in your community after receiving national recognition!

I know this may seem like a lot to take in and a lot of hard work; and it is!  Reaching your goals will take time, dedication and a focus on the end results.  Remember, taking it a day at a time is key!  You won’t become an icon, or even seen as a real estate expert overnight, but you’ll be encouraged by those daily “wins” and as you see your business begin to grow.

There are certain actions that can be taken and if interested, contact me, I recently launched a mentorship program limited to only a handful of individuals and I can guarantee recognition in basically any syndication including FOX, CNBC, ABC, MarketWatch, The Wall Street Journal, Newsweek, and the list goes on. Credibility is a key component to being viewed as a leader and expert. As in doing anything, there is a process to it. Just like there is a process to become a doctor or lawyer. This will give you a head start, but I can show you exactly how to be one of the leading experts in your area, guaranteed. Just contact me for details. Be blessed and make it a productive day!

Mortgage Rates Rise Slightly Heading Into The Weekend

Posted by Michael McDevitt on

After two days of significant improvements, Mortgage Rates took a measured step back today.  Best-Execution rates rose about an eighth of a point, but in some cases, your rate may not have changed at all today-merely your closing cost quote (temporary caveat that we’ll probably repeat a few more times):

Please keep in mind that lenders simply cannot move mortgage rates lower at the same pace as a rapid rally in Benchmark Treasuries.  Although you might hear talking heads on TV or read articles saying that mortgage rates are tied to Treasuries, THEY ARE NOT, and you’ll be perennially frustrated if you expect them to be.  We explained that in greater detail earlier in the month:(Why aren’t rates getting lower as fast as Treasuries). 

Today’s Rates:  The current market is in a state of flux at the moment and mortgage rates moving up and down around ALL TIME LOWS.  BestExecution 30yr Fixed rates were mostly near 3.875% today, with a higher than normal degree of variation around there.  FHA/VA deals are in a bit of a predicament that’s keeping them blocked off below 3.75% (there’s no secondary market for rates any lower than that right now!).  For similar reasons, 15 year fixed conventional loans may be stuck at 3.25%.  5 year ARMS remain near 3.125%, but with variations from lender to lender.

GUIDANCE:  Yesterday’s guidance was really excellent.  As feared, we saw plenty of “pipeline control” price changes among lenders, and that was exacerbated today by weakness in the bond market.  Strategically (longer term, bigger picture), locking when the Best-Execution rate is 3.875% makes a ton of sense.  Even on a shorter term outlook, the broader shift that’s taken place behind the scenes in the secondary mortgage market suggests a range of rates between 3.75 and 4.125.  So right now it’s leaning slightly to the more aggressive side.  If there was any better time in history to lock a loan than today, it was yesterday.  We don’t know what sort of opportunities will be available next week, and although we think rates will be relatively low for a while, we’re not sure it’s worth the risk to float for marginal gains when we’re only an eighth or two away from some of the most aggressive offers yesterday (and consequently, of all-time).

Fannie Mae: September Economics and Mortgage Market Analysis

Posted by Michael McDevitt on

Leading indicators for home sales point to subdued housing demand. Respondents to the Fannie Mae National Housing Survey indicate a continued shift of sentiment toward renting and away from ownership, at least in the near term. In the second quarter, 26 percent of Americans were worried about their job stability. When combined with the 9 percent of unemployed households, more than a third of the potential workforce was worried about their employment status – hardly a strong support for housing demand.

After rising for two consecutive months, pending home sales (contract signings of existing homes) fell in July, which bodes poorly for existing home sales in August and September. Pending home sales generally lead the existing home sales data by one or two months. However, the link between contract signings and closings has weakened lately such that the gains in pending home sales in recent months have not materialized into contract signings. Low appraisals compared to contract prices and concerns about the economy may have led to contract cancellations and delays. Also, some contracts have had to be cancelled because the potential buyers could not sell their current homes.

September Economic Developments
September Economic Forecast
September Housing Forecast

Housing Market Update: Consumer Confidence Rises

Posted by Michael McDevitt on
Measure of Consumer Confidence Index

Confidence among U.S. consumers rose in September from the lowest level since November 2008 as Americans’ views of current economic conditions improved.The Thomson Reuters/University of Michigan preliminary index of consumer sentiment climbed to 57.8 this month from 55.7 in August. The median estimate of economists surveyed by Bloomberg News called for a reading of 57. The group’s measure of consumer expectations six months from now dropped to the lowest level since May 1980.

The Michigan survey’s index of current conditions, which reflects Americans’ perceptions of their financial situation and whether it is a good time to buy big-ticket items like cars, increased to 74.5 from 68.7 the prior month.

This is very important to the housing industry because it it not interest rates but the consumer’s outlook on the economy that drives demand for housing.

What Happened to Rates Last Week:
Mortgage backed securities (MBS) lost -68 basis points last week which helped to move mortgage rates higher from last Friday to the prior Friday.  Mortgage rates were pressured due to some inflationary economic news.  Both the Producer Price Index and the Consumer Price Index showed increases which is inflationary and mortgage rates do not react well to any inflationary data.  We also saw better than expected Consumer Sentiment which is also usually bad for mortgage rates.

The following are the major economic reports that will hit the market this week.  They each have the ability to affect the pricing of Mortgage Backed Securities and therefore, interest rates for Government and Conventional mortgages.  I will be watching these reports closely for you and let you know if there are any big surprises:

Date Time Economic Release
19-Sep 10:00 NAHB Housing Market Index
19-Sep 10:30 Barack Obama Press Conference
20-Sep 8:30 Building Permits (MoM)
20-Sep 8:30 Housing Starts (MoM)
21-Sep 7:00 MBA Mortgage Applications
21-Sep 10:00 Existing Home Sales (MoM)
21-Sep 10:00 Existing Home Sales Change
21-Sep 10:30 EIA Crude Oil Stocks change
21-Sep 14:15 Fed Interest Rate Decision
21-Sep 14:15 Fed’s Press Conference
22-Sep 8:30 Continuing Jobless Claims
22-Sep 8:30 Initial Jobless Claims
22-Sep 10:00 Housing Price Index (MoM)
22-Sep 10:00 Leading Indicators (MoM)

It is virtually impossible for you to keep track of what is going on with the economy and other events that can impact the housing and mortgage markets.  Just leave it to me, I monitor the live trading of Mortgage Backed Securities which are the only thing government and conventional mortgage rates are based upon.

Freddie Mac Finalizes New Modification Option

Posted by Michael McDevitt on
Freddie Mac

Freddie Mac finalized requirements for a new modification option that will be made available to qualified borrowers on Oct. 1.

Mortgage servicers must evaluate borrowers deemed ineligible for the larger Home Affordable Modification Program for the new “Standard Modification” beginning in January. Trial period plans can begin in October. Through the new program the borrower‘s principal and interest payments drop at least 10%, according to Freddie.

Since March 2009, servicers granted roughly 791,000 permanent HAMP modifications and extended more than 1.6 million trials through the national program. But servicers canceled more than 763,000 trials because of redefault, not enough documentation or the borrower did not meet the requirements.

In order for a borrower to qualify for a standard modification, he or she must be at least 60 days delinquent. If they’ve missed fewer payments or are current, he or she must be an owner-occupant, in imminent default and provide a hardship document.

The borrower must have already been evaluated for HAMP within 12 months of the Standard Modification. Mortgages on homes without an owner-occupant can be eligible, even vacant homes that cannot be condemned.

The loan-to-value ratio of the mortgage must also be greater than 80%.

Servicers will receive $1,600 for each modification completed before the loan slips into 120-day delinquency. They get $1,200 for a modified mortgage between 120- and 210-days behind. For standard modifications completed after 210 days of missed payments, the servicer gets $400 from Freddie.

The standard modification program will fall under the joint servicing alignment initiative launched in April.

Fed: Risk of Recession “Quite Low”

Posted by Michael McDevitt on
Modern-day meeting of the Federal Open Market ...

According to William Dudley, the president of the Federal Reserve Bank of New York, the risk of a double-dip recession is still quite low.

Dudley said that only some of the the restraints on growth, such as high oil prices and Japan‘s earthquake in the first half of the year, can be considered temporary.

“The risks have risen a little bit, but I think we very much still expect the economy to recover. We expect … growth to be significantly firmer than it was during the first half of the year,” he said. “But obviously there is some concern.

The central bank‘s policy-setting Federal Open Market Committee (FOMC) took the unprecedented step last week of promising to keep interest rates near zero for a set period of time—at least until mid-2013. The Fed also said it was weighing other options to help strengthen a weak recovery.

Dudley said that market interest rates fell after the announcement, “which should help provide some additional support for economic activity and jobs.” The president of the New York Fed has a permanent voting position on the FOMC and plays a prominent role within the U.S. central bank.

What Happened to Rates Last Week:

Mortgage backed securities (MBS) gained +21 basis points last week which helped to move mortgage rates lower from last Friday to the prior Friday.  We did pull back from our our best levels of 2011 which occurred in the middle of the week.  The gains were primarily due to much weaker than expected economic news as well as continued concern over weakness in Europe.

HomeSteps Provides Condominium Buyers with Limited Time Offer

Posted by Michael McDevitt on

HomeSteps, the real estate sales unit of Freddie Mac, is now offering a special limited time offer of $1,500 to help condominium buyers pay for future associates dues.

The “condo cash” offer is available to buyers who submit offers on a property between Aug. 15 and Nov. 15. Escrows have to be closed on or before Dec. 30 to be eligible for this offer.

HomeSteps’ condo cash offer can only be used on HomeSteps homes that have been on the market for at least 120 days and sold to owner-occupant buyers. The offer is not valid on HomeSteps condominiums purchased through auction, sealed bids, bulk sales or in areas where such offers are prohibited by law.

Some of the condominiums will come with a two-year home protection warranty that covers electrical, plumbing, air conditioning, heating and other major systems and appliances. Home Protect also provides discounts of up to 30% on the purchase of appliances.

Mortgage Delinquency Rates Decline:

Posted by Michael McDevitt on

You would think by the barrage of negative news reports that just about every other home was going into foreclosure.  Certainly this is not the case. In fact, the housing market has stabilized in the past six months.  The latest report from the Mortgage Bankers Association shows that the percentage of homeowners that were behind at least one monthly payment fell from 9.1% in the third quarter to 8.2% in the fourth quarter.  Also, the 2010 delinquency rate fell from over 10% in the beginning of the year to 8.2% at the end of the year.

The 2% drop in mortgage delinquencies follows the recent drop in the Unemployment Rate and the steady increase in Existing Home Sales and Consumer Confidence.  These are significant signs that the housing market is closing in on a true market equilibrium.

What Happened to Rates Last Week:

Mortgage backed securities (MBS) gained +39 basis points last week which caused 30 year fixed rates to move lower after reaching their highest levels of 2011 in the prior week. The economic data such as PPI and CPI showed inflationary pressures that consumers pay  – which is usually bad for mortgage rates. But the geo-political concerns over continued tensions in the Middle East, specifically the news stories of the Iranian War Ships requesting access to the Suez Canal, caused traders to move their funds into the safety of bonds which temporarily helped mortgage rates.

 

To You Commercial Realtors: Development Loans!

Posted by Michael McDevitt on
Image representing U.S. Small Business Adminis...

Development Loan Options!

Possibly the most needed loan in the marketplace today is the development loan.  Letting people know you have it slams you with leads and deals because- so few people are doing it.

You see, to a bank, especially in this environment, a construction loan is a huge risk.  No income or cash flow for 1-3 years and you hope there are no delays, etc.  Most of the bad loans on a banks books right now are construction loans gone awry.  Construction loans go immediately to the high risk portion of a bank’s balance sheet and hurts their ratio of good loans to bad loans that they are being graded on by the FDIC when they come in to audit them.  In other words, to a bank, there is NO reason to do a construction loan, it can only hurt the bank.  It is in this area that I have probably worked harder than any other finding good sources for my guys.  And we have OPTIONS for development loans right now, for example we have:

-normal construction loans to 65% Loan to Cost (LTC) for most commercial projects up to $10 Million

-hotel construction loans to 70% LTC in major metro markets to $8 Million

-a hedge fund that can do mega-strong development loans above $10 Million and with a combination of debt, equity and mezzanine, can get up over 80% LTC

-a trade program that is sourced and vetted and can net a project $40 Million for $10 Million on deposit that never leaves the clients control.   I have all the proof of that transaction-something no one else seems to be able to get on trade platform loans-proof!

-FHA construction financing up to 90% LTC from $2 million to $50 million

-and of course, SBA build-out money nationwide

Exciting stuff.  The kind of stuff that can make you hundreds of thousands of dollars this year.  It has taken me over 1 year to find these sources, and I have them available for you and your clients.  Give me a call today at 888-650-9966 Ext.100 for more info on any of these products or to run a scenario by me.

Together, we can have an INCREDIBLE 2010!  Have an awesome week and talk to you soon!

Mike McDevitt

P.S. Remember, I have many options for development and construction money that you probably will not get from any local banks.  Give me a call TODAY to discuss at 888.650.9966 Ext.100.  Be blessed!