It looks like the long process of rolling back the government’s role in the mortgage market has begun. The Federal Housing Finance Authority – the regulatory agency that oversees both Fannie Mae and Freddie Mac, has indicated that it is seriously considering rolling back the maximum loan amounts it will allow the two mortgage giants to guarantee. Currently, the maximum loan amount that qualifies for the federal guarantee – a so-called “conforming loan” because it
. . .
Read more about Flipping Expensive Homes
With the massive reduction in home values over the last six years (a recovery in 2012 notwithstanding), and low interest rates, it’s actually been a tough period for the reverse mortgage industry, from a portfolio management perspective. True, a weak economy and a bear market in stocks in 2008, combined with stubbornly low interest rates, forced a lot of older Americans to look to the reverse mortgage industry to supplement their retirement incomes in recent years.
. . .
Read more about Reverse Mortgage Reforms
From the very beginning of the Flippin’ Insider column, we’ve been all about having a sober understanding of the numbers – especially the all-important concept of ROI, or “return on investment.” You aren’t Citizen Kane running a newspaper and happy to lose a million dollars a year. You need to make money. Which means every investment you make in a home – whether a structural renovation or a simple coat of paint – has a positive ROI.
. . .
Read more about Flipping Houses and Return on Investment
When most people think of flipping real estate, they imagine the classic “buy-fix-market-sell” business model, in which the flipper keeps ownership of the house from the word “go” until he’s handing a young couple the keys, and they live happily ever after in their dream home with the shale shower and the granite countertops. Well, that’s one way to do it. But there’s another model as well.
. . .
Read more about Contract Assignment
Last week, a chasm in the earth opened up and nearly swallowed two buildings at the Summer Bay Resort, a Disney-area timeshare development in Clermont, Fla., close to Orlando. Dozens of timeshare owners and guests had to be evacuated in minutes as a sinkhole opened under the buildings, causing major parts of the structure to sheer off and collapse. A security guard, widely praised as a hero for running into the building,
. . .
Read more about Insurance Coverage for Sinkholes
If you’re going to be a professional flipper, you are going to need some professional accounting. This is not something that you can just hire someone to do for you full time, though. There are a lot of expenses that you will have to keep track of. Nobody can do this for you. Tracking your expenses, however, is critical in this business. Indeed, after you subtract taxes paid (or not paid, if you were good at tracking your expenses!), your ability to convert expenses into deductions could
. . .
Read more about Setting Up Accounting Systems
The President has just called for the dismantling of government-sponsored enterprises (GSEs) – that is, Freddie Mac and Fannie Mae – as we know them. As most in the real estate world are aware, these corporations were created during the Great Depression to create a market to which banks could sell mortgages, receive cash in return, and replenish their capital reserves and get back to lending. On the flip side, these GSEs also provided an attractive investment for
. . .
Read more about The Dismantling of GSEs
A recent report by the New York Federal Reserve got the ball rolling: A visiting Cornell professor authored a paper, “Paying Paul and Robbing No One,” advocating the practice of state and local politicians using the power of eminent domain to seize mortgages where borrowers are deeply underwater. Eminent domain refers to the legal power of government to seize property for the benefit of the public. A common example of eminent domain at work would be
. . .
Read more about Eminent Domain
You aren’t alone. As the economy recovers, more people are starting to find the capital to start fixing and flipping. And since home prices are finally on the rise nationwide, flippers don’t have to swim against the tide. The pressure to flip a home yesterday before the price goes down has let up a little bit, and flippers who can control carrying costs don’t need to be in much of a rush at all. That’s the takeaway from the RealtyTrac Mid-Year 2013 Home Flipping Report, which was
. . .
Read more about Increased Property Flipping in the U.S.