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Real Estate News: 4 Headlines To Watch Now

by blogger1
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on Friday, 23 February 2024
BestTransactionFunding

Find out what’s happening in real estate and the economy that could impact your investment strategy, plans, and performance this year…


No Fed Interest Rate Cut Till June

Experts are now pushing back their forecast of a Fed rate cut until at least June this year. That’s not welcome news to millions who were hoping for a break from rampant inflation and high borrowing costs.


Though we could get a well timed rate cut or two before the presidential election.


For now investors need to make their plans based on where rates are at, with a cushion for even higher mortgage and loan rates as banks seek to offset risk and defaults.


The $400M Trump Fine, And The End Of NY

Former president Trump has just been hit with an almost $400M fine in NY, for boasting his properties were worth more than what the judge thinks they are worth.


This ruling has faced harsh criticism from the likes of Shark Tank investors and fund managers. This may be the final straw that has the last remaining investors pull out of NY for good.


It’s a reminder that values are always influx, they are just an opinion, and that opinion can be changed at any time.


It’s a fresh warning of what happened to many investors in the last great recession when banks began slashing credit lines and trying to force homeowners to accelerate the pay back of loans due to revised valuations.


Calls For $50 An Hour Minimum Wage

Forget $15 or $35 an hour. New calls are being made for a $50 an hour minimum wage. That’s about $100k a year. Which may really just be getting by for many households with kids these days.


In turn, it would either mean doubling or tripling inflation on goods and services to keep up with the wage increase, or companies having to lay off another 30% to 60% of their staff.


For real estate companies, it likely means consolidating with fewer team members, but of higher quality, and at higher wages.


The AT&T Outage

AT&T’s massive nationwide service outage is a fresh reminder to investors, entrepreneurs, and businesses that they cannot rely on just one connection.


For both phone service and internet, you need at least one additional back up, and remote alternatives on different providers so that you never get disconnected. You can imagine the havoc this can wreak with closings and deal flow.


These occurrences may become even more common has cyber attacks and online crime grow.

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Real Estate News & Trends To Watch Now

by blogger1
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on Thursday, 29 July 2021
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Here’s what’s happening in real estate this week, and what it means for real estate wholesalers…


Rents Are Up

US monthly apartment rents have risen by an average of 12% over the past year, with some landlords proclaiming they’ve managed to raise rents by 14%. Even in places like Rochester, NY and Allentown, PA rents are up around 20%.


Realtor Magazine says new movers are also prepared to pay 15% more than existing tenants this year.


It is a great year to be flipping to landlords, especially when it comes to vacant property, or those with leases expiring soon.


Even Will Smith and Jay-Z are getting in on the action; participating in a new $165M round for a rent to own fund.


Mortgage Delinquencies Are Down

Despite all the fear being spread in the media, and being used to force new policies, CoreLogic reports that mortgage delinquencies began turning around in April, with defaults falling in every state, except for WY.


New Foreclosure Moratorium

A combination of new mortgage servicing rules by the FHFA and CFPB are effectively creating a new foreclosure moratorium until 2022.


There are exceptions, including vacant property, and where borrowers have defaulted on trial loan modifications. These are likely to be the properties that make up much of the inventory for real estate wholesalers through the end of the year.


Biden Promises To Cut Mortgage Payments By 25%

The Biden administration just announced it will be cutting American’s monthly mortgage payments by 25%. It aims to do this via modifications, or providing second lien mortgage loans on millions of properties nationwide.


Of course, not everyone will qualify, and the disinformation could lead to a 2008 like situation where homeowners fail to act as they wait for a personal bailout that never comes.


The New Infrastructure Bill

The giant new infrastructure bill not only dedicates $109B to roads, which have clearly gone out of fashion for most future thinking international cities, but also gives the IRS $40B specifically for enforcement, and to chase down more revenues from taxpayers. The hope is that this will raise an extra $100B in cash to spend. Make sure your accounting is clean, up to date, and you’ve paid your taxes.

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