It’s been a wild 12 months, and I think the next 12 months could be just as crazy. Just yesterday, RCN Capital announced that our rates dropped to just less than 5.9%on 30 year fixed rate loans for investors. These DSCR (based on the property’s income not yours) loans have gone from 4% last March, up to almost 8% in September, and now back below 6%.
Every month we’ll see changes. Not only are Fed rates changing, so are spreads. This market reminds me a lot of 2018. It’s going to be important for investors to have a tight relationship with their lenders.
One thing you should be really focused on is being ready. What do I mean by being ready?
- Have your bank statements up to date and in a share folder/Dropbox.
- Make sure you quickly facilitate the appraisal and inspections.
- Review and reply to all document requests as soon as possible.
- Treat everything with the time is of the essence mentality.
These times will be good, and they’ll be bad. Take advantage of the opportunities and move quickly. The nimble will own the market for the next 2 years!
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