“Give thanks for a little, and you will find a lot” – Hausa Proverb
The holiday reminds us to acknowledge all the blessings in our lives. Which, for our team, includes being able to work with you and your family. We are so grateful for the trust you’ve placed in us, for your loyalty, and for your willingness to share your challenges, successes, and lifetime goals.
This Thanksgiving, we wish you health and peace of mind, along with an abundance of all good things: the love of family; the joys of friendship; and the comforts of home.
You Are Invited as My Guest (FREE)
Jim Rohn was known for a couple of sayings such as “You are the sum of the five people you spend the most time with” and “Show me your friends and I’ll show you your future”. Whichever quote resonates with you, the intent is the same: Make sure that you are spending time with people who are in line with what you want out of your won life.
If you want to learn from and associate yourself with successful investors you might want to take advantage of this complimentary offer.
The Real Estate Guys™ Investor Mentoring Club events are typically reserved for members, but as my guest, you’re invited to register for a one-time complimentary guest pass to join the LIVE interactive call.
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Accessory Dwelling Units
I am an ADU Specialist and recently attended an ADU Workshop in Berkeley, CA networking with other professionals in the space and learning about how to help solve the current affordable housing crisis while also assisting property owners create some additional and passive income.
Accessory Dwelling Units (ADU) are also known as secondary units, in-law units, granny flats, backyard cottages, etc. No matter what you call them, ADUs are an innovative, affordable, effective option for adding much needed housing in California. They are self contained residential units on the same property as a single-family home or a multi-family building. ADUs must have a kitchen (or efficiency kitchen), bathroom, place to sleep and a separate entrance from the main property. You can use an ADU to house family or friends, or lease to a rent-paying tenant. New policies are making ADUs more affordable to build, in part by limiting development impact fees and relaxing zoning requirements. By design, ADUs are more affordable and can provide additional income to homeowners and often the rent generated from the ADU can pay for the entire project in a matter of years.
Latest ADU Legislation & News
If you or someone you know might be interested in learning more about site eligibility, local regulations, development process/costs and the return on investment, please don’t hesitate to contact me.
Fannie Mae Slashes Down Payment Requirements For Multifamily Homes to 5%
Fannie Mae unveiled a new policy this week that will significantly reduce down payment requirements for owner-occupied 2-, 3-, and 4-unit homes. Set to be effective from the weekend following Nov. 18, 2023, the down payment will now be 5%, a stark decrease from the previous 15-25% requisite for duplexes, triplexes, and four-plexes.
This policy shift presents an exciting opportunity for individuals aspiring to invest in multifamily residences, blending the advantages of property investment with homeownership perks. By diminishing the down payment barrier, Fannie Mae has paved the way for prospective owner-landlords to afford these properties more seamlessly.
Fannie Mae declined to comment further on why it made the decision, but it’s a decision being praised by some in the industry.
Thrive Mortgage’s Chief Operations Officer Donielle Geiser said they are thrilled about the announcement.
“Lowering the down payment threshold on 2–4-unit properties is such a critical enhancement to the guidelines for a host of reasons. Predominantly, it immediately becomes a golden opportunity for increased affordability due to the potential income generating possibilities,” Geiser said. “Especially for younger and prospective homeowners looking to engage in a smart way of not only building equity, but also adding an additional revenue stream. One of the surest ways to build wealth over time is to offset a liability with an income-producing asset.”
Geiser went on to explain: “It’s going to open new markets for prospective homeowners desperate to find their opportunity to own real estate, lenders like Thrive can now offer more affordable terms to clients, builders seeking to expand their portfolio of available new construction products have a new incentive to engage in multifamily developments, and Realtors now have new ways to market properties that previously had a limited pool of potential buyers.”
Jeff Onofrio, branch manager of Onofrio Mortgage Group at Guild Mortgage, said it could help people start an investment career by house hacking.
He said it could also offer competition to an FHA program, which requires a much higher down payment of 15%-20%, as long as it keeps the loan-level-price adjustments in line.
“It should give Fannie a nice leg up against the 203K,” Onofrio said.
Matthew Gavzie, vice president of Canyon Mortgage, said he thinks this could be good for buyers and help drive a little more business.
However, “I don’t know what the lenders are going to add to this. Are there adjustments?”
But “we need all the help we can get,” he added.