Late-season home buyers are being drawn into the market, with buyer demand outperforming typical seasonal patterns, according to the real estate brokerage Redfin’s Demand Pulse, which analyzes the housing market based on home tour and offer data in 22 top real estate markets.
Tag Archives: Washington D.C. Real Estate Investing
140 Meadow Rehab Update!
Our rehab at 140 Meadow is moving along smoothly! Demo is complete and new framing is in progress!
Mortgage Rates Fall to Lowest Levels Since June
For the second consecutive week, fixed-rate mortgages declined, lowering borrowing costs and helping alleviate some signs of softening in the housing market, according to Freddie Mac’s weekly mortgage market report.
Aging Homes May Present Big Bargains
More than 70 percent of the U.S. housing stock was built prior to 1990, and an aging housing stock may present more opportunities for buyers searching for a bargain, according to RealtyTrac’s Aging Home Analysis.
Hi everyone! We closed on 140 Meadow Road, Pasadena, Maryland on Tuesday afternoon and started demo bright and early Wednesday morning. Check out a few photo updates below. This project is a full gut rehab. We’ll provide continuous updates on our progress. Check back with us soon!
Cheers,
Magnolia Property Solutions
Government Shutdown Impact on Mortgage Market
The effects of the government shutdown will ripple through neighborhoods across America— an impact to not having a fully functioning government is that an already stressed mortgage market may become even more prohibitive. This does not aid the housing market recovery…
This will likely result in a freeze of the pipeline of processing new home loans. Due to the October 1st furlough, employees at federal mortgage companies like Fannie Mae and Freddie Mac will not be available to verify Social Security numbers or ensure loans proceed to closing.
After getting burned in the housing crash, many lenders now check everything on a borrower’s loan application. It is standard to verify tax returns as a quality control measure.. If the IRS is closed, it will not process any forms, including tax return transcripts, so the loan applications will be stalled. Government workers will likely be unable to verify their employment on a mortgage application.
At the Federal Housing Administration, which represents about 15 percent of the mortgage market, the staff will be significantly reduced. Lenders with “delegated authority” will be able to go on making FHA loans (about 80 percent of FHA lenders). They will also be able to get FHA case numbers through the usual on-line service. The FHA will continue to collect insurance premiums from borrowers during a shutdown as well.
If the shutdown lasts for a week or less, the immediate effects on mortgage availability will likely be minimal. A longer furlough period, however, will undoubtedly effect mortgage processing time and would-be homeowners.
MAGNOLIA PROPERTY SOLUTIONS, LLC RELEASES PRIVATE PLACEMENT MEMORANDUM TO RAISE CAPITAL FOR THE PURCHASE AND REDEVELOPMENT OF RESIDENTIAL PROPERTIES
For Immediate Release
Silver Spring, Maryland
September 17, 2013
Magnolia Property Solutions, LLC (MPS) is a real estate investment company specializing in residential property wholesale and rehabilitation in select urban and suburban neighborhoods in Maryland, Washington D.C., Northern Virginia, Tampa, Florida, and Fayetteville, North Carolina. MPS’s business strategy is to purchase vacant, deteriorated or undervalued residential properties, renovate them to a highly desirable condition, and sell to retail or first time home buyers, landlords or investors.
The Private Placement Memorandum (PPM) allows investors to purchase shares in Magnolia Property Solutions Fund I, LLC for a predetermined share value. The funding will be used for the purchase and rehabilitation of targeted properties on a continual basis.
MPS’s goal is to acquire three to five homes per month at 30% – 50% below market value and then wholesale, renovate, or lease the properties. MPS utilizes strategic direct marketing to target motivated sellers and conducts focused analysis of each property to achieve an approximate total net profit of 20% per property. MPS ensures success by developing strong relationships with local contractors, Realtors, brokers, buyers, and sellers.
To learn more, please contact:
Adam Baughman
Managing Partner
Magnolia Property Solutions, LLC
(301) 971-4113
WHY THE FHA SHOULD BE OPENED TO INVESTORS
FHA mortgages are supposed to be a vanishing species but the use of such financing is actually on the rise despite higher costs and tougher terms.
The latest figures from HUD show that so far this year the FHA has insured 1.06 million “forward” loans — a figure that compares with 850,000 mortgages during the same period in 2012. As to reverse loans, to this point just 44,282 have been originated versus 98,959 last year.
http://www.realtytrac.com/content/news-and-opinion/why-the-fha-should-be-opened-to-investors-7867
Three Things That Make A Great Real Estate Investment
If you’re looking into real estate investments, you likely want to earn wealth on real estate based on risk you are taking, while minimizing the amount of time you need to spend attending to the property. In order to accomplish this, you need to make some smart choices upfront when buying investment property. Your goal should be to strive to get as close as possible on as many of these optimal scenarios as possible:
http://www.forbes.com/sites/zillow/2013/05/21/three-things-that-make-a-great-real-estate-investment/
HOW TO GET DISCOUNTS COMBINING FHA 203(K) LOANS & FORECLOSURES
Everyone likes a discount but in the world of real estate discounts have become less common. Home prices have risen sharply in the past year but distressed sales continue to be available with significant write-offs.
The catch is that distressed homes — foreclosures, short sales and REOs — are sometimes not in pristine condition. That’s a kind way of saying that some distressed properties need a lot of tender loving care as well as paint, updates and repairs. The general “rule” is the worse the condition of the property the bigger the discount, a rule which can mean huge savings for those who purchase with FHA 203(k) financing.
Magnolia Property Solutions, LLC 