Mortgage & Commercial Lending News.

Here at AMI Lenders, where we specialize in private money loans to finance real estate, we are frequently asked by our clients: “Should I go through the expense of getting a home inspection even if the seller (or their realtor) assures me that the house is in good condition?” And the answer is: most definitely yes!

The Fix and Flip industry, which involves purchasing distressed properties, renovating them, and then selling them at a higher price, has experienced significant growth in recent years. However, the industry's current state can vary depending on the location and overall economic conditions.

We recently wrote in one of our blogs about pooling incomes in a household to obtain a mortgage. We mentioned that multigenerational households could be a trend in the housing sector. Changes in demographic behavior could lead to even more households becoming multigenerational. In this blog, we would like to assist you in thinking around some issues when you are looking into purchasing and renovating a home suitable for a multigenerational household.

In one of our weekly updates, we recently wrote to our clients that home prices might be growing faster than rents in most places across the country. But, financially speaking, homeownership still beats renting, as shown by a new study from ATTOM Data Solutions, a real estate data firm. In about 6 out of 10 localities across the U.S., it is cheaper to own a home than rent, so it is still a good idea to own rather than rent, even more so in creeping inflation environments like we have been experiencing. Still, it is usually easier to sign a lease contract than to get a mortgage.

The past two years have led to a new economic reality in the US: the evolving, work-related lifestyle in the post-pandemic economy—one where work is all about flexible hours and can be done away from the office, be it from home, the vicinity of your home (a coffeehouse, maybe?) or elsewhere! Employees have more flexibility on their hands regarding their working habits than they ever anticipated. They have been finding ways to spend this newly acquired flexibility for their benefit and for the use of their employers through increased productivity levels. An aspect that has attracted attention recently is that the option of "working from home" has allowed individuals to enjoy fresh air and quality time with friends and family in vacation-like settings without utilizing their vacation days. A new standard option for people who can work from home is spending time in what used to be considered "a vacation home," whether it be on the outskirts of town, at the beach, by a lake, or in a scenic area. You can come into work on time without ever having to commute, and as soon as your workday is over, you are in a "vacation setting." As to how this new trend impacts real estate, there seems to be a booming market as "vacation home" sales (or sale of houses in what we're up to a few years ago considered "vacation towns") continue to grow.

It would be nice to have a crystal ball here at AMI Lenders to predict the future, but sadly we don't. In any case, given that the hot housing market is very much in the news these days, we would like to help you decide whether the time is right for you to invest in the real estate market in the next 12 to 18 months (we are writing this blog in early September 2021). So, with all the caveats in place and all the legal disclaimers that we are not fortune tellers, the following are some informed predictions about what you might expect to see in the next year and a half in the residential property market. Spoiler: now is the time to invest in residential property.

As Fix and Flip investments gain popularity, they can help experienced Fix and Flippers make a substantial profit. In the past four years, the average gross flipping profit for investors has been between $60,000 and $70,000. However, if you don't do it properly, it's also possible to end up with a loss instead. As the name suggests, these properties need to be "fixed" before they are sold again. Fixing most commonly refers to repair work. It may be tempting to repair a few things in the house here and there and resell them. However, we also recommend following the advice from a professional home inspector for the highest profit. 

When looking for hard money loans in Houston, you'll realize that lending falls into two main categories: non-qualified mortgage and qualified mortgage loan. Although these loans provide lenders with much-need financial assistance, they're also different. Understanding the two types of loans is paramount when taking a mortgage. Continue reading for more information on how to select a loan that suits you.

In 2010, and in response to the financial crisis that we now know as the Great Recession, President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act into law. The law places strict regulations on lenders and banks in an effort to protect consumers and prevent another all-out economic recession. It was this act that outlined a set of rules around higher priced vs. high cost mortgage rates.

Are you ready to own your first home? Do you have enough money saved for a down payment? Have you figured out how to finance the purchase? Owning a home is the number one goal for most people, and the more informed you are, the better chances you’ll have to get into the right first home for you.