NOLA Realtors – 3 ways to get in on the multi-family CRAZE

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2019 is shaping up to be another big year in multi-family lending.

Freddie Mac is estimating loan volume will be up about 8% nationally.

Here in New Orleans, we think it will be at least that much if not more.

Here are a few tips to help you capitalize on this big opportunity:

#1 – Don’t miss the underlying trends

The 3 big things fueling the multi-family growth are (1) a strong labor market, (2) low interest rates and (3) a consistent housing shortage.

In this case, the underlying numbers also show that housing demand is still ahead of supply and interest rates are as low as they’ve been in recent years right now.

This combination makes multi-family an especially attractive option.

#2 – Make sure you know about new financing options

If you’ve been a realtor less than 10 years, you might be accustomed to somewhat conservative guidelines and lending options on multi-family.

These guidelines are changing quickly.

It’s not quite as crazy as the pre-2007 days, but the underlying trends we mentioned above plus good overall performance on loans over the last few years equals a lessening of underwriting guidelines.

Did you know… we now have financing available for Investor 1-4 Units, 80% LTV with NO Income Qualification?

Yes, you read that correctly.

These loans are for good credit borrowers, but the lack of DTI qualification makes it easier than ever to help good quality borrowers buy investment property.

#3 – Work your existing database

While you may have a good handle on which of your clients has experience in multi-family real estate, do you know which ones may be reading news like this and thinking about taking their first steps?

These macro-level economic trends are making news all over, and sooner or later, your better quality clients may want to try their hand at purchasing a multi-family investment property for themselves.

We’re constantly beating the drum to talk about investment property opportunities within our own database as you never know when someone may be ready for the first time. Let us know if we can provide any support for your database marketing when it comes to multi-family or investment property opportunities.