Real Estate Investors: Buy, Sell or Hold?

Brandi Brand is Director of Sales for Breakwater Mortgage in Virginia

Beach, Virginia. Brandi and her husband, Scott, also rehab and resell

real estate investments in southeast Virginia. the next interview

consists of common questions that real estate investors have right now,

when mortgage interest rates appear to be on the rise.

Q: What is the general holding of the real estate and mortgage industry in

Virginia at the end of 2005 and before the first quarter of 2006?

A: The local market has slowed down in Virginia for the last six months.

Homes stay on the market longer. This means that there is more time

involved for real estate investors who want to sell.

Q: Are the real estate and mortgage markets headed for a recession?

after?

A: The market is still very strong despite a slight decline in activity. In

Southeast Virginia home sales fell about 3% in

November 2005, indicating a slight adjustment.

Q: Is it a buyer’s market now?

A: Currently, the market is stabilizing. When it was a seller’s market,

contracts were signed on houses and property before anyone had one

opportunity to think through the purchase completely. Now investors have the

opportunity to quote the repairs and renovations necessary to obtain the

most return off property.

Q: Is it a good time to buy?

A: Yes. The market is adjusting and there are great deals for

the real estate investor. You can always find good deals. Year

investor is looking to buy a property below market value, that is

how they make profit Buy a property with aesthetic problems,

rehabilitate and resell is a strategy. Other good deals can be found.

with Properties for Sale by Owner.

Q: What makes the Virginia real estate market different from, say, the

market in the northeast?

A: In general, the Northeast market is more expensive than the

Southeast, with the exception of Florida. royal southeastern virginia

Real estate is more affordable, so investors come from the Northeast to buy

here.

Q: What do mortgage lenders look for when considering issuing loans?

for real estate investors?

A: A mortgage lender is looking for a strong employment history and six

times the monthly payments on assets left over after paying the money owed on

closure. For 100% financing, the applicant may be required to have a

Credit score of 680 or higher. Ideally, lenders would like to see two years of

experience in renting properties if the real estate investor is trying to

buy multiple properties. On average, a property that brings in a

return of at least $200.00 per month (for maintenance and repairs) is

considered a good investment. For new investors, banks will be

inclined to limit the investor to two properties in the first two years.

Q: What are the best real estate markets to invest in?

A: One of the highest areas of real estate investment is near the military.

the essential. Southeast Virginia has a large number of bases. soldiers in his

own often prefer to live at the base of hoses. Those with families often choose

to rent in order to have more privacy or a patio.

Q: What are the current trends in real estate mortgage financing?

investors?

A: Before the summer of 2005, many investors chose interest

2-, 3-, or 5-year Adjustable Rate Mortgages (ARMS) or loans only that

requires little up-front money. Most investors buy a property with 5

years in mind. Home values ​​will continue to rise, but

investors view 30-year fixed loans as stronger while interest rates

they are on the rise. Young investors seem less concerned about the rise

mortgage rates. Many experienced investors remember when interest

rates were 13-14%, but investors under thirty have not seen comparables

interest rates during your adult life.

Q: What are the refinancing trends for real estate investors?

A: Many investors choose to refinance by going from a short

term mortgage a long-term loan. Investors with rental properties

lock in rates with 30-year fixed loans. investors who want

rehab and resell the property will be refinanced to get cash for

Other real estate investment. Overall, the refinancing boom has

decelerate.

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