Money makes the world go around. But when you don’t have enough, loans are pretty handy.
Real estate financing has changed a LOT in the years following the Great Recession. To get up to speed on the state of the art of lending, in this episode we interview two loan pros.
Sitting in the broadcast cabaret:
- Your host and Master of Ceremonies, Robert Helms
- Master of the Obvious and no-I’m-not-related-to-Joel co-host, Russell Gray
- Residential Mortgage Maestro, Graham Parham
- Commercial Lending Mentor of Money, Michael Becker
Back in the heyday of easy money…before the sub-prime meltdown exposed the flaws in that model…there were a plethora of loan programs being provided by a gaggle of eager salespeople.
Then everything blew up. Or more accurately…imploded. It was like someone tripped over the cord to the bounce house and all the air just came out.
Most people in the mortgage business went broke. Everything came to a grinding halt.
So the government and central banks intervened in a HUGE multi-trillion dollar way and put in a bottom to the free fall.
Some say they merely kicked a huge can a few years down the road. Time will tell.
But coming out of the recession, it was much harder to get loans. This was partly because many lenders were out of business. And those that were still around were afraid of falling values and aggressive consumerist activism.
But that was then and this is now.
Today, by most accounts, the real estate bottom is well in place. Equity is happening in many markets.
Dodd-Frank and its regulatory cousins are largely implemented and adapted to…and trillions of dollars in stimulus has worked its way into the marketplace and is looking for a home…to loan against.
All that to say that lending is loosening up, which makes real estate investing a little more fun…albeit more competitive.
This means it’s important to stay on top of new loan products and underwriting guidelines (the rules under which loans are approved).
Your mortgage team is your key to staying up to speed on this ever changing landscape.
When it comes to residential lending there are two basic categories: 4 units or less; and 5 units or more.
So in this episode we have experts on both to provide us an update on where they see lending today, and where they see it heading tomorrow.
If you’re an active or aspiring real estate investor, you should be excited. Because loan program innovation is back! Private lenders (non-government) are getting back in the game.
This means more money flowing into real estate…and more money for you to work with to acquire more properties. And right now, it’s still dirt cheap.
But rather than clog the blog with all the details, we’ll let you listen into the conversation yourself…Enjoy!
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