Written By — Chad Emerson
As I mentioned last week, eventually there was going to be some profit-taking going on at The Wall, and that’s what we saw Thursday. Looks like the Dow has made some recovery, up another 200 today as I write this. Interest rates had a slight tick upwards of 1/8th of a percent. Federal Reserve Chairman a.k.a. ‘Big Ben’ spoke to the HSFC today and repeated exactly what he told the SBC yesterday, that we are still chartering unknown waters, and the economy is showing minor glimpses of improvement from time to time. But, I really think that this is more wishful thinking because he went on to say that the FED is ready to help bolster growth even if that means more purchases of MBS. If you remember, several months ago, the FED stopped purchasing MBS, and this obviously wouldn’t be needed if the economy was improving, but we’ll take a wait-and-see approach.
OUTLOOK
Uncle Sam will be auctioning off Treasuries next week, and given the fact that these securities are close to their all time high price, it may be difficult to unload or attract foreign investment due to the low returns. That may cause a need to increase the yield on the 2, 5, and 7 year notes and that can cause rates to creep up a little more. Expect to see some volatility next week and don’t be surprised if you see rates starting to move upward.
RIGHT NOW
Rates are still excellent — 5.25% on single family with 20% down payment.
Duplex with 25% down payment same rate.
Let’s talk — call me:
Office Direct: (210) 483-4962
Mobile: (210) 557-6320
BawldGuy Here: Many of the duplexes my clients have acquired in Texas recently sport separate tax IDs for each side. Smile, cuz that means three very cool things for real estate investors.
First, by purchasing each side separately you can get the above quoted interest rate with 20% down — NOT the 25% lenders require for buying a duplex.
Second, when it comes time to sell/exchange your equity, you can sell them separately to owner-occupied buyers, who historically pay more than investors.
Third, the lower down payment allows for an increase in your rate of capital growth, should the value of the property rise in the future.
I’d love talkin’ with you this weekend. Gimme a call at 619 889-7100 and we’ll figure out what’s possible for you specifically. Most people aren’t aware of all the options on their menu. Have a great weekend.
Related posts:
- Fridays In the Real Estate Investment World
- Real Estate Investment: Real Leverage is Using a Big Enough Stick
- Are We Coming To A Real Estate Investment Fork In The Road?
- Real Estate Investment Strategies — Using All The Tools Available
- Some Random Thoughts On the Latest In Real Estate Investment World?
About Chad Emerson
Jeff, that is very interesting about the separate tax ID’s what is the legal basis of those units? it would seem they are zero lot line townhomes vs duplexes?
Texas sure seems to be a breath of fresh air for 2-4 unit investors!
jeffrey