The world of real estate can be riddled with questions, uncertainties, and opportunities to learn. In our latest episode of The WealthBuilders Podcast, “Answers to Your Real Estate Questions,” host Karen Conrad, WealthBuilder President, welcomes Real Estate Coaches Frank Pulley and Troy Peterson to provide answers.
From the intricacies of new developments to the nuances of market trends, our experts unpack it all, providing clarity and actionable insights. If you’re looking to satisfy your curiosity about real estate, this episode is for you. Listen to the podcast here.
Investing in Stocks vs. Real Estate
- There are different opinions about whether to invest a certain amount from the stock market into rental property.
- Both stocks and real estate investments can be beneficial.
- Rental properties have consistent income potential.
New Construction for Entry-Level Buyers
- New build developments are feasible for entry-level buyers.
- There’s a need to understand local real estate market dynamics.
- Land acquisition, utility costs, and off-site improvements are important.
- Zoning and planning in new constructions is significant.
Cash Out Refinance
- A theme that emerges is Cash Out Refinance and some people have questions about its future.
- While the option is not fading away, credit markets are becoming stricter, meaning it’s essential to stay updated with market shifts.
- Lenders are scrutinizing loan applications more than before.
- If you’re considering a complete cash-out refinance, you might end up with much higher interest rates than any existing ones.
- An alternative to this is the use of a Home Equity Line of Credit (HELOC).
Home Equity Line of Credit (HELOC)
- HELOC offers homeowners the opportunity to borrow against the equity in their homes.
- HELOCs provide the flexibility of only accruing interest on the amount that’s actually drawn. This means if the money isn’t used, there’s no cost associated with it, a feature that sets it apart from other loan types.
- Some challenges associated with HELOCs are the tightening of credit markets.
- While banks need to lend, given they pay out money on deposits, HELOCs are experiencing some of the same credit market constraints. This trend, however, may vary regionally.
Optimal Timing for Real Estate Purchases
- There are optimal times to make real estate purchases.
- Some find the best deals during the holiday season. Sellers often show more motivation around this time.
- Another “sweet season” for real estate, spans from the Super Bowl through early November.
- Buying during off-peak times like December can still yield excellent results.
- It’s important to continue market research rather than waiting for the “right” time.
- There are advantages of buying during off-peak seasons.
Debt Service Credit Ratio loans
- There’s a difference between personal and commercial properties.
- There are benefits of using DSCR loans for long-term rental properties.
Debt-to-Income Ratio (DTI)
- There is an impact of bills on DTI and mortgage qualification.
Predictions on Property Value Fluctuations
- Prices may potentially drop in luxury (A Class) homes.
- C Class homes as dependable investment options.
- There is a relation between purchase price and rental rate.
Evaluating New Build Deals
- It’s important to verify projected appreciations.
- Interest rates and property appreciation relate to one another.
Do you want to dive even deeper into the world of real estate? The WealthBuilders Semiannual Real Estate Workshop is taking place from October 13-15 where you’ll get a chance to participate in Q&A sessions.
When you use code WB200, you can purchase a livestream ticket for just $97, or you can get $200 off an in-person ticket and join us in Denver, Colorado for just $497. Click here to get your ticket.