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How To Win In Trump’s New Era Of Real Estate Lending

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on Thursday, 17 November 2016
BestTransactionFunding

What tweaks might real estate investors want to make as the Trump administration gets to work on changing the fabric of our lending landscape?

Last week we discussed the acquisition side of wholesaling real estate in the wake of the Trump win. Despite the claims of many celebrities and other residents that they would be selling and looking for homes in countries, and foreign immigration departments reporting up to a 2,300% surge Americans searching for immigration help abroad, not everyone believes we’ll see that many new motivated sellers hit the market. However, being non-political and remaining objective, everyone in real estate ought to be analyzing the new landscape and making appropriate adjustments to position themselves to benefit. One of the other big media stories to come out of the election is how Trump plans to shake up the finance and lending business. So what might that mean for you?

For know all we can go based on is what Trump says he will do. We know what he says, but also we know there will be challenges to that, and any tangible changes may take time. Still, highly respected financial mind, and hedge fund chairman Ray Dalio says it is prudent to keep an eye out for changes. Specifically via LinkedIn he says he expects to see; aggressively stimulative fiscal policy, high inflation, and increased US growth.

Per Trump’s transition website the president elect lays out plans for blocking new regulations, undoing the Dodd-Frank Act, investing hundreds of billions in infrastructure, and lowering taxes. Much of these plan and the role of the new finance team is to spur funding for small businesses and mortgage borrowers.

So while transactional funding may still be the best finance tool for flipping and wholesaling houses fast, with little risk, investors may want to get ahead of the curve with their exit strategies. A period of higher interest rates may entice some previous cash buyers into parking their money in high yielding accounts, with less work than real estate. At the same time expanded access to more money and credit for investing and buying homes, and the retirement of the Dodd-Frank Act could create a new generation or type of end buyer for investors. New home buyers, millennial investors, and investors who may turn around and seller finance their purchases instead of renting them. It’s worth keeping this in mind as investors begin to roll out their real estate marketing efforts for 2017.

Ultimately; anything can happen. Yet, savvy investors will equip themselves with the data and market intel available and work to get ahead of their competition in marketing to the best prospects before anyone else.

Love or hate the new direction the country is headed in, we’d love to hear your feedback and predictions on what’s next for the real estate and lending landscape. Just shoot us an email or let us know on Facebook...

Authored by Best Transaction Funding BestTransactionFunding.com is the leading source of transactional funding for real estate wholesalers in the US, where 100% financing, and saying “Yes” is what we love doing all day long.

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