Seaport Real Estate Group Blog - Interest Rates

The Low-Interest Bridge Loan Dilemma: A Financial Tightrope

Posted by Tim Bray on March 25th, 2023

Commercial real estate projects can be a lucrative investment opportunity for those who are willing to take on the associated risks. While financing options for these projects vary, bridge loans are often used to cover the gap between the initial investment and the eventual long-term financing. However, recent trends in the market have shown a rise in bridge loans with radically lower interest rates than the current rate. This may seem like an excellent opportunity to save on interest costs, but it poses significant risks to investors and lenders alike.

First, it's essential to understand what a bridge loan is. A bridge loan is a short-term loan used to finance the gap between the purchase of a property and long-term financing. Typically, these…

245 Views, 0 Comments

Seller Beware

Posted by Buddy Kane on October 29th, 2022

Caveat Emptor – Latin for: “Don’t buy a house right now”

 

Sage advice indeed. Unless your circumstances warrant it and you’re ok parting with a few extra shekels you may never see again. Not to worry. Prospective buyers in most price ranges have largely backed away from the buffet table at this point. They haven't had much choice in the matter.

The purpose of my rant today.

The tide has turned, kind of…

It’s not a great time to buy or sell. Excluding those under duress without the luxury of a choice, or the ultra-wealthy paying cash.

For most, it hasn’t been the best time to buy for quite a while, but obviously a great time to sell throughout the “Covid-fueled, no inventory” seller’s bonanza we’ve witnessed over the last few…

284 Views, 0 Comments

Everything Is Not Okay (And That's Okay)

Posted by Kyle Schrader on October 16th, 2022

There is overwhelming news and media coverage regarding today's real estate market. It seems that, based on most coverage out there, it's both a great time to buy and a great time to sell. Social media is the same narrative, everything is great for everyone. When the world is telling you to have your cake and eat it too, something isn't right. So what is the truth? 

Let's take off the rose colored glasses for a moment and look at the numbers and what's driving them, interest rates. In less than a year, rates went from historic lows in 2021 to 30-year highs today. To illustrate the effect of rates on today's market, let's examine what your mortgage payment will be in three different mortgage scenarios. Fair warning; you will be grossed out

…

272 Views, 0 Comments

IMPERSONATING TODAY'S AGENT

Posted by Buddy Kane on May 12th, 2022

IMPERSONATING TODAY’S AGENT

By Buddy Kane

Greetings...

 BK comin at you with another self-realization to help you all feel better about yourselves.

As the misfit I appear to be as an agent, I’m little more than an imposter in the local real estate industry and all its foibles. How could I possibly fit the mold of an accepted agent in this elite club even if I wanted to? I don’t close a volume of deals. I don’t receive Gold, Platinum, Titanium, Round Table achievement awards, and I don’t drive a Range Rover. I’m doomed to remain a mid to low level agent that leverages a real estate license as merely one stream of income amongst other revenue sources.

A “loser”, some may say. Guilty as charged, I suppose…

So why do I assume this…

520 Views, 0 Comments

SHOW YOUR WORK

Posted by Buddy Kane on April 29th, 2022

SHOW YOUR WORK

By Buddy Kane

 

 

 

Got a call last week from a past client interested in selling one of his properties. Having dealt with him previously, I was well versed in his fly by knight style and approach. Upon fielding his inquiry, I listened with an experienced awareness, knowing what cues to look for that would help me cut through an extended dialogue and boil it down to exactly what it was he wanted from me. What ensued from this point was an opportunity to apply an evolving philosophy I’ve learned the hard way over a longer period of time.

First, some background to provide context. Looking back on my student years, school was not my finest hour, aside from some extra-curriculars. Academics was never a strong suit of…

431 Views, 0 Comments

How Reliable Is the Pre-Approval Letter You’re Giving Your Sellers?

Posted by Robert Ruth on November 26th, 2018

 Chances are good your buyers are not approved at all…they’ve only been pre-qualified

Shocking headline, isn’t it?  Hard to hear the truth sometimes, but I am going to tell you that in my experience, the bulk of Pre-Approval letters being given to Real Estate agents by Loan Originators are just plain worthless.  They are being written to get the buyers a house, but the protection/reassurance the seller is looking for that tells them the buyers really are qualified does not exist.  Welcome to Fantasy Island.

My intention in writing this is two-fold: first, to let you know about this situation, and second, to give you some suggestions for getting a comfort letter that is worth the paper it is printed on.

Frequently a Realtor will refer me one of…

8979 Views, 0 Comments

Insights from the 2018 Home Buyer Generational Trends Report

Posted by Robert Ruth on May 17th, 2018

Written by Robert H. Ruth

Every year since 2013 the National Association of Realtors (NAR) has published a report looking at trends among buyers and sellers in the Real Estate Industry from the previous year. I’ve always eagerly anticipated this report because it provides excellent insights into the composition of the Real Estate marketplace. This year I thought I’d share some of the more significant findings that are pertinent to home buyers since that is the focus of my blog posts here. If you want to see the report for yourself, I have provided a link for you to download a pdf version here: CLICK HERE

The introduction of the report has much useful information about the composition of buyers in the Real Estate marketplace .  Here are what I…

1282 Views, 0 Comments

What Really Determines Your Credit Score?

Posted by Robert Ruth on April 27th, 2018

Written by Robert H. Ruth

This is a topic I discuss with borrowers most every day, so I thought you’d like to know the components of your credit score.  According to Fair Issac Corporation (FICO), “the score is calculated from many different pieces of data in your credit report, and the data is grouped into the 5 categories below.” Here they are with the approximate weighting assigned to each category:

 

• Payment History : 35%
• Amounts Owed :  30%
• Length of Credit History:15%
• New accounts Opened :10%
• Mix of Credit :10%
• Total: 100%

Let’s see what each category represents:

Payment history: 35%

This tells whether you have paid your credit card accounts on time in the past.  If you make all your payments on time each…

826 Views, 0 Comments

Why it is imperative that you get pre-qualified

Posted by Tim Bray on June 25th, 2013

(Written by Bob Ruth) The first step in buying a home is deciding how much of a payment you can afford. This is usually done with the help of a loan officer who will try to get you pre-qualified for the necessary financing to buy a house. Getting pre-qualified before you go and look at houses is the best option in my opinion for 3 reasons :

1 -  You'll go out knowing how much you can afford which saves time.

2 – You’ll be less likely to look at houses that are beyond your ability to purchase...nothing is worse than falling in love with a house only to find out that you cannot get the financing because it is beyond your means financially.

3 -  The Realtor will be able to negotiate more effectively for you due to the fact that you can tell…

3399 Views, 2 Comments