Behind The Shine 11/25/22

    After the last CPI dating report, we had a .5 – 1% decrease in interest rates across the industry.

    I would prompt everyone who is shopping for a loan or wants a second opinion to reach out to us.

    It is very possible that someone who qualified for a 500k purchase last month may be able to push that higher now. 

    My future projections are on DSCR lending guidelines tightening up.

    There has been an increase in FPDs (first payment defaults) that is worrying lenders in that they may have been too lenient with guidelines on nonQM loans these last few months as so many people switched over from conventional when the rates increased and they no longer qualified.

    I foresee future increases in reserve requirements and investor experience in the near future.

    White House officials say we are ‘in a housing affordability crisis.’ Jerry Howard, CEO of the National Association of Homebuilders, spoke with Yahoo about the reality that’s happening right now in the real estate market. Read more in this article here.

    Real estate is not intended to make you a lot of money in year one.

    This is a buy and hold long term.

    It’s like planting a tree. Trees do not produce fruit when you first plant them.

    But no one talks about that aspect of investing…

    People talk about their best deals and they brag about the ROI on that deal and then we start to think, “Oh, that’s what I’m supposed to do. I must be doing something wrong.”

    And it creates this shame and guilt in our industry that we bought a house, we did everything we said we were told to do and we lost $400 in the first year.

    So we think that we shouldn’t be real estate investors at all.

    Or we jump to the next strategy. It’s not supposed to work that way.

    If you buy a B-class or A-class property, it should probably cash flow for the first three, four, or five years.

    But the next 25 years of owning it, the next 40, 50 years of owning, it’s a cash cow.

    It is okay to accept delayed gratification in real estate investment because you make money in so many ways.

    Let’s say you went to the gym and worked out your biceps for a week.

    Then, you looked at them and said, “They’re not any bigger, I better move on to a different muscle group.” And you bounce around forever. If you did this, you never would actually get the result. 

    Now it may be true that you work out your biceps and you’re like, “Well now they’re tired. I can’t work them out.”

    Well, don’t just stay home and do nothing. Go work out your triceps, go work out your chest, go do something else while it’s recovering.

    Sometimes you buy a house with a primary residence loan and you need to wait a year before you do it again. Your biceps are tired.

    Well, there are other ways you can go invest in real estate, make money in real estate or do something productive while you’re waiting for that year-long period.

    But what happens is in a year when your biceps are ready and you get to work them out another time, that’s what’s going to make them get bigger.

    So part of what you have to figure out is a strategy that you could stick with over time.

    We’re excited to announce that for the first time EVER, we are doing a discount for the David Greene Mastermind.

    If you’ve ever wanted to be a part of the most close-knit and elite real estate investing community, now is your chance at the lowest price ever. For this weekend only, you can join for 50% Off Your First 3 Months.

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