In memoriam to my friend and neighbor and the best agent Savannah ever had.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
912-790-6999
Friday, April 12, 2013
In Memoriam
In memoriam to my friend and neighbor and the best agent Savannah ever had.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
912-790-6999
Thursday, April 11, 2013
"Year of the Small Deal"
Here's an article of interest from April/May Realtor magazine.
The article acclaims the already known fact that 2012, especially the last quarter, brought a bumper crop of CRE deals. It doesn't mention that much of that was due to political fear and a desire to avoid 2013 taxes. It reports that capital markets surged, CMBS lending increased and that cash flow remains king.
2013 hasn't slowed down either, which is fantastic. It shows the motivation to invest is economic more than political. And best of all, Savannah made the cut!
I can't imagine that Lexington, where I used to live, added so many jobs in 2010-2011 that the newly generated wealth prompted a buying CRE buying spree in 2012. And the Savannah MSA unemployment rate was around 9% in 2011 and decreased only .9% in 2012.
So yes, jobs keep a city alive, but don't equate to dramatic CRE sales volume. Remember that multi-family topped $75 billion in sales last year. I think the numbers reflect pent up demand, sales of REOs, and local and foreign investment.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Monday, April 8, 2013
Mortgage product fundamentals – part 1
Once again, Coldwell Banker Mortgage Advisor Steve Nimmer NMLS # 186680 ph. # 912-604-3834 comes through with a great article to share.
Useful information you need to make an educated decision. And if you live in the Savannnah, GA MSA and are ready to buy give me a call 912-352-1222.
Conventional Loans
Conventional loans are the most traditional type of financing for a home purchase or refinance. Conventional loans are underwritten by government-backed enterprises, including Fannie Mae and Freddie Mac, and have their own set of guidelines (see Eligibility below).1
Benefits
Individuals with good credit, a steady income and who can afford the down payment on a conventional loan can take advantage of a number of benefits:
Eligibility
Borrowers must meet several criteria for conventional loans including demonstrating stable employment and having a maximum debt-to-income ratio of less than 33/45 (a borrower's mortgage payment cannot exceed 33% of their gross monthly income and total debt/obligations cannot exceed 45% of their gross monthly income). They also need good to excellent credit, specifically, FICO scores of 620 or above. Larger down payments are also required for conventional loans between 5%-20% of the home's sale price for the down payment plus additional cash/savings for closing costs.2
Mortgage Types
Fixed Rate Mortgages: A fixed rate mortgage is an option for conservative borrowers, those who want to lock in near historically low rates and homeowners who plan to stay in the home for a long time. With a fixed rate mortgage, interest rates remain static, and the borrowers' principal and interest payment will remain the same for the term of the loan.3 Fixed rate loan terms are generally amortized over 30, 20, or 15 years.
Adjustable Rate Mortgages: Conventional adjustable rate mortgages (ARMs) can be beneficial for borrowers who don't plan to live in the home for a long period of time, or when mortgage interest rates are high or increasing. ARMs begin with lower initial interest rates and monthly payments; however, after an initial fixed period, the interest rate will adjust. (Most ARM rates are tied to the performance of one of three major financial indexes.)3 This type of mortgage is often considered by borrowers ARMs typically offer initial fixed-interest periods of 3, 5, 7, or 10 years.
Sources:
1.Conventional Loan vs. FHA Loan by Karina Carrillo Hernandez
2.Conventional Home Loans Explained by Daniel Duffield
3.Adjustable-rate Mortgages by Realtor.com
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Useful information you need to make an educated decision. And if you live in the Savannnah, GA MSA and are ready to buy give me a call 912-352-1222.
Conventional Loans
Conventional loans are the most traditional type of financing for a home purchase or refinance. Conventional loans are underwritten by government-backed enterprises, including Fannie Mae and Freddie Mac, and have their own set of guidelines (see Eligibility below).1
Benefits
Individuals with good credit, a steady income and who can afford the down payment on a conventional loan can take advantage of a number of benefits:
- competitive interest rates, typically lower than FHA, VA and jumbo loans,
- faster mortgage processing in most cases,
- avoiding private mortgage insurance if the borrower puts 20% down,
- building equity faster.
Eligibility
Borrowers must meet several criteria for conventional loans including demonstrating stable employment and having a maximum debt-to-income ratio of less than 33/45 (a borrower's mortgage payment cannot exceed 33% of their gross monthly income and total debt/obligations cannot exceed 45% of their gross monthly income). They also need good to excellent credit, specifically, FICO scores of 620 or above. Larger down payments are also required for conventional loans between 5%-20% of the home's sale price for the down payment plus additional cash/savings for closing costs.2
Mortgage Types
Fixed Rate Mortgages: A fixed rate mortgage is an option for conservative borrowers, those who want to lock in near historically low rates and homeowners who plan to stay in the home for a long time. With a fixed rate mortgage, interest rates remain static, and the borrowers' principal and interest payment will remain the same for the term of the loan.3 Fixed rate loan terms are generally amortized over 30, 20, or 15 years.
Adjustable Rate Mortgages: Conventional adjustable rate mortgages (ARMs) can be beneficial for borrowers who don't plan to live in the home for a long period of time, or when mortgage interest rates are high or increasing. ARMs begin with lower initial interest rates and monthly payments; however, after an initial fixed period, the interest rate will adjust. (Most ARM rates are tied to the performance of one of three major financial indexes.)3 This type of mortgage is often considered by borrowers ARMs typically offer initial fixed-interest periods of 3, 5, 7, or 10 years.
Sources:
1.Conventional Loan vs. FHA Loan by Karina Carrillo Hernandez
2.Conventional Home Loans Explained by Daniel Duffield
3.Adjustable-rate Mortgages by Realtor.com
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Wednesday, March 27, 2013
IRS "Compliance Gaps" Includes Real Estate Investors
I've said it before, that the government views property owners like John Dillinger viewed banks.
Due to new Medicare laws, real estate investors would do well to qualify as real estate professionals. However, there is an exception for those who would qualify.
Read How Real Estate Investors Can Protect Themselves From the IRS to learn more about it.
And if I were local to Savannah I'd call Stephen Leonard over at Hancock Askew.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Due to new Medicare laws, real estate investors would do well to qualify as real estate professionals. However, there is an exception for those who would qualify.
Read How Real Estate Investors Can Protect Themselves From the IRS to learn more about it.
And if I were local to Savannah I'd call Stephen Leonard over at Hancock Askew.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Thursday, March 21, 2013
New FHA Mortgage Program Changes: What Buyers Need to Know Before April 1
Steve Nimmer, Coldwell Banker Mortgage (912-604-3834 NMLS #: 186680), who is a great source of information, sent me the following:
The Federal Housing Administration has announced several changes to FHA mortgage programs that will begin April 1, 2013. These changes will impact customers who are in the market for or have recently qualified for an FHA loan.
The new changes revolve primarily around increasing mortgage insurance premiums. Before going into more detail, it may help to do a quick review of the two types of mortgage insurance required on the majority of FHA-insured loans:
- An upfront mortgage insurance premium, or UFMIP, which is paid once at loan closing. FHA allows this premium to be financed into the loan.
- A mortgage insurance premium, or MIP, which is paid in equal installments, is part of the mortgage payment.
As noted, the FHA program changes focus on mortgage insurance premium increases, but there are also other factors buyers should be aware of:*
- Annual mortgage insurance premiums (MIP) paid by borrowers on most new FHA loans will increase by 10 basis points, or 0.1 percent; for loans of $625,500 or more, there will be an increase of 5 basis points or 0.05 percent.
- Upfront mortgage insurance premiums will rise to 1.75 percent of loan size.
- Most FHA borrowers will now have to continue paying annual premiums based on the unpaid principal balance for the life of their mortgage loan. (This reverses a policy that automatically cancelled required premium payments after loans reached 78 percent of their original value.)
- It will be more difficult for borrowers with FICO scores below 620 and a debt-to-income ratio higher than 43 percent to qualify for the loans. They will not be eligible for processing through the FHA's automated underwriting system and so will have to be processed manually, with lenders documenting compensating factors such as larger down payments – or a higher level of reserves.
*Source: Inman News, January 2013.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Wednesday, March 20, 2013
2012 Q4 Coastal Empire Economic Outlook Posted
Summary: The last quarter of 2012 showed growth, but slower than the previous quarter. Stronger growth projected for 2013. The Coast Empire Economic Monitor is courtesy of AASU and Dr. Michael Toma. Click on each image to enlarge.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Movie Studio to Proposes to Build in Effingham County
Wow, the first update since January: I have been busy! To summarize this news...
Who: "The Effingham County Industrial Development Authority unanimously approved an agreement Tuesday with Medient Studios Inc. for a $90 million movie studio and entertainment facility..." writes G.G. Rigsby in the Savannah Morning News.
What: The Effingham County IDA approved a Memorandum of Understanding with Medient. The memorandum is a legal document, but not as fully binding as a contract. As I understand it, this deal is creeping toward the finish line, but not yet "a done deal." I don't think any of us has forgotten the Daimler-Chrysler Sprinter van plant drama back in 2002-2003 which was presumed to be a sure thing.
When: WTOC reports that "Medient Studios has plans to open as early as next year."
Where:
How much: "The $90 million figure includes $10 million for land, $40 million for equipment and $40 million for buildings. An investment of $90 million and 1,000 jobs are the performance goals called for in the memorandum of understanding. Kumaran said he expects more than 1,200 jobs to be created eventually" writes G.G. Rigsby in the Savannah Morning News.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Who: "The Effingham County Industrial Development Authority unanimously approved an agreement Tuesday with Medient Studios Inc. for a $90 million movie studio and entertainment facility..." writes G.G. Rigsby in the Savannah Morning News.
What: The Effingham County IDA approved a Memorandum of Understanding with Medient. The memorandum is a legal document, but not as fully binding as a contract. As I understand it, this deal is creeping toward the finish line, but not yet "a done deal." I don't think any of us has forgotten the Daimler-Chrysler Sprinter van plant drama back in 2002-2003 which was presumed to be a sure thing.
When: WTOC reports that "Medient Studios has plans to open as early as next year."
Where:
 |
| Picture courtesy of Effingham County IDA. Click to Enlarge |
How much: "The $90 million figure includes $10 million for land, $40 million for equipment and $40 million for buildings. An investment of $90 million and 1,000 jobs are the performance goals called for in the memorandum of understanding. Kumaran said he expects more than 1,200 jobs to be created eventually" writes G.G. Rigsby in the Savannah Morning News.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
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