It’s not just you that has to qualify for a mortgage. Your home does too. Check out the video to learn more about why your new home faces a rigorous qualification just as you do.
Changes to FHA Mortgages effective September 14, 2015
The FHA Mortgage program has some new and important changes that will certainly impact borrowers. Check out some of the major changes:
1. FHA will no longer allow student loans to be deferred. Lenders have to include a 2% payment in the debt-to-income calculation.
2. Only recorded land contracts can be done as a refinance – if they are not recorded, they must be done as a new purchase.
3. Water tests will be required if a house is on a private well.
4. Streamline refinances can ONLY be done without an appraisal.
5. New net tangible benefit for reduction in term.
6. Secured borrowed funds can only be secured by financial assets or other real estate owned – in other words, you can no longer take out a loan against a car, etc.
7. Sourcing donor’s ability to give gift funds is now an FHA requirement.
8. Only borrowers on the loan can be on the purchase contract and those will be the only parties allowed on title. A non borrowing spouse may be added to title, but only at the title company’s discretion.
9. Appraisal updates to expired appraisals must be done before the appraisal actually expires to extend the expiration date of the appraisal.
10. Non occupant co-borrowers must be US citizens or have a principal residence in the US.
11. Business disclosure relationship statements must be submitted by Sellers, Realtors, Borrowers, Loan Officers, Processors, Underwriters, Appraisers.
12. Flood insurance must be the lesser of the appraiser’s replacement cost (less land value,) the loan amount, or the flood program’s maximum amount allowed.
Did you know it’s not just YOU that has to qualify for your mortgage? Your HOME does too.
Is the Multi-Family Market Heading Towards a Bubble?
When it comes to the hottest type of real estate multifamily investment, investors started to question 
if we are in the bubble.
It is not possible to predict the future with 100% certainty, but the facts support the statement that the multifamily segment of real estate market is outperforming all other types of investments.
We’ve got more than enough demand. Between the Millenniums and the Baby Boomers there is definite increased interest in renting apartments.
Have we thought that too many apartments are being built in Broward County? Since 2006 we did not see any new multifamily construction, therefore the answer to such a question is a strong resounding NO.
We’ve got a long way to catch up with the market demand.
Many of my investors are expressing concern related to a valuation of this type of asset defined by a CAP Rate. In actuality CAP Rate will continue to go down in the coming years. There are multiple reasons for this prediction which we will not be touching on in this publication due to the complexity of the issues.
There is no shortage of interest and/or capital available for this sector of real estate.
The main challenge is to find the willing Sellers in South Florida. It is becoming harder and harder to come by multifamily deals.
What are the main driving factors for such a condition?
1. Foreign investors are looking to bring a capital into the most economically stable country in the world. They can afford to pay a price that would yield an extremely low return because they get the benefit of currency appreciation. 3% CAP Rate for them is not actually a 3% return.
2. Florida is the State with no Income Taxes.
3. South Florida has shortage of land available for development which increases the value of existing properties.
4. And one more Very Important Factor, we have wonderful weather most of the year.
The challenge is to find Sellers that would sell multifamily property at the market value. When someone considers selling, he or she is asking what to do with the money and where it can be reinvested. This information is not to discourage anyone from looking for reasonable (hopefully) Sellers, but provide a brief overview of the particular sector of the market.
As a buyer in South Florida, it is probably a good idea to invest even if the initial return seems too low. Almost all lenders love the product and provide financing with a low interest rate. If buyers exercise their leverage they should be focusing on the Internal Rate of Return versus CAP Rate. Multifamily is considered to be an exceptional investment in today’s market.
I am always available to answer your questions.
The By Owner and the Pizza Man
I wish I could take credit for this great post, but it was from a colleague of mine. It’s too good not to share, however.
“A past client of mine – who owns a pizza shop – calls me and proceeds to tell me how he is going to buy a property (FSBO) so they can “cut out the brokers fees.” He goes on to tell me how proud he is that he read “THE BOOK” (what book I don’t know) and is following it to investor success.
In the next breath he asks me to run comps, closing costs, give him contacts for mtg reps and title cos and give him advice on what the next steps are to completing the transaction as well as negotiation tips.
I took a deeeeep breath…told him to hold on I was on my way to his shop and that I would be right there to have this convo in person.
I arrived but before I would let him speak I handed him two frozen pizzas I bought at the supermarket – I asked him to place them in his oven so they could cook, cut them and serve them to me at his table before we could talk business. He was appalled – how dare I ask him to do such a thing, don’t I know that HE makes pizzas and that is how he pays his bills? I just looked at him and smiled … I could see the light bulb turn on.”
Economic outlook for Broward County
At Keller Williams we pride ourselves on watching the market very carefully to be able to advise our clients to the best of our ability. To that end I’ve been examining the economic outlook for Broward County and its impact on both our residential and commercial real estate market.
Demand and rents soar
Growing payroll and a new wave of relocations from outside Florida are major contributing factors to a thriving multi-family sector in Broward County. This year more than 18,500 new jobs were created in Broward County; mostly in the private sector.
Tenant demand continues to rise in the midst of a new construction cycle, forcing rents upward throughout our market.
For the first time since 2000 there is a short supply of single-family houses and apartments for rent.
Related Group—which is the largest development company in the region—has plans that include more than $1-billion in new development for thousands of apartments in Davie, Pembroke Pines, Plantation and Fort Lauderdale. Nearly 900 units are being developed in the Fort Lauderdale sub-market.
Vacancy rates in the county are around 4.7%. The Broward County apartment sector ended the third quarter of 2014 with the second lowest vacancy rate among the three South Florida counties. The average rent is projected to go up to $1,311 per month.
Capital continues to rush into the apartment sector. Small private investors are dominant in the market thanks to acquisition debt available at higher leverage.
Fannie Mae and Freddie Mac continue to underwrite 5, 7 and 10 year loans and offer maximum leverage of at least 80% in most markets. The interest rates are historically low.
Here is some other important information: Do you know that in October, the Fort Lauderdale metropolitan area was named a hot spot among the nation’s top college towns for multi-family investment?
We’ve got incredible opportunity for growth in Fort Lauderdale. I believe that in six to seven years Fort Lauderdale will be one of the hottest areas in the 
country.
Why are these statistics important? Because I want to convey to my clients that whether they are considering a house to live in, or an acquisition of an investment property, that we will be facing a housing shortage in a few years. Today’s interest rates could not be more attractive and prices here in Fort Lauderdale and Broward County are still remarkably affordable.
Townhome for rent in Davie at the Scarborough Townhomes
Check out this amazing location for a wonderful townhome in Scarborough! Walking distance to the best schools in the district. Convenient to I-95, Turnpike, I-75 plus so many shops & attractions. Four bedrooms with Master Suite on ground floor featuring walk-in closet, shower & double bowl vanity. View overlooks tranquil late with enormous yard. Three beds upstairs with hall bath. Beds all carpeted, nice ceramic tile in living & dining. 1-car garage is attached with room for another car in your private driveway. Guest parking available only steps from your front door. Freshly cleaned & painted.
Rent this townhome starting on February 1 for $2,100 per month. <– Rented
Security Deposit: $2,100
Fast Approval!
If you would like additional information about this rental townhome, or you would like to schedule a viewing, please contact Robert at (954) 446-9001 or message me through the form below.
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Development Update: Metropica in Sunrise
The folks from Metropica stopped at the office this week to present the plans for the enormous development located in Sunrise near the Sawgrass Mills Mall. The community is planned on 65 acres and will feature condominiums, hotels, retail and apartments in an urban retreat where residents never need to leave the property.
Ultimately, the master plan calls for shopping, restaurants, wifi everywhere on property for residents, five-star health clubs, 650,000 square feet of office space, 2,250 residences, 3,600 parking spaces, two hotels, all encompassing 4-million square feet.
Tower 1 is on offer at this point featuring 1, 2 & 3 bedroom homes ranging from 740 to 1,379 square feet. Ground breaking is set for First Quarter 2015, and delivery 3rd quarter of 2016. For a development with quite stylish finishes and amenities, prices are remarkably affordable. One bedroom homes are currently priced from $280,000 to $350,000. Two bedroom homes are priced from $365,000 to $588,500 and a three bedroom floor plan is offered from $523,000!
Deposit structure is 50% as development progresses. 10% at reservation and 10% at contract. 20% at ground-breaking and final 10% at top-off.
The first tower offers features such as pool and sun-deck, massage therapy and health club, tennis, concierge, outdoor summer kitchens for entertaining, indoor theater for residents, pet run, storage facilities, and a rental program that can be administered by Metropica Realty.
Fits and finishes inside the homes appears to be spectacular from renderings. Interior design is by YOO Design Studio featuring porcelain tile in the living and bedroom areas, floor to ceiling glass windows, and amazing balconies. Kitchens are spec’d out with porcelain flooring and back-splashes, contemporary kitchen cabinetry, quartz counter-tops, stainless steel appliances, and plumbing fixtures by Hansgrohe.
Would you like to be kept up-to-date on the development at Metropica in Sunrise?
For additional information contact Robert Darrow at Keller Williams Fort Lauderdale with the contact form below or call Robert today at 954-446-9001 with any questions. Ready to make an appointment to view this incredible property? For all your Fort Lauderdale real estate needs and an introduction to Metropica in Sunrise, we are always here to help as your buyers agents in the Fort Lauderdale area.
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All Aboard Florida – Rail Service from Miami to Orlando – Full Steam Ahead
Your Guru had the privilege of attending a community meeting and presentation for the new rail service called All Aboard Florida that will offer service between Miami and Orlando. Differing from our current Tri-Rail service, All Aboard Florida is envisioned as a high speed rail corridor whisking passengers in a premium level of comfort from Miami, to Fort Lauderdale, West Palm Beach, and onward to Orlando.
The meeting was quite interesting as local residents of Fort Lauderdale assumed that they would be able to offer some sort of community input, and fully expected that this development would follow normal protocol for quasi-government construction. However in an interesting twist, All Aboard Florida is a completely privately funded venture. The company is a distant descendant of the original Henry Flagler Railway, now known as the Florida East Coast Railway. The new rail line will follow the existing railway that runs through the heart of Miami, the eastern cities, downtown Fort Lauderdale, downtown Oakland Park, and feature walkable rail stations in the communities where stops are planned.
Funding was completed in January of 2013, and construction began immediately. Rail service between Miami and West Palm Beach is scheduled to begin in late 2016, and service continuing onward to Orlando is scheduled to begin in early 2017.
The train station in Fort Lauderdale will be located to the north of Broward Boulevard, where 6 acres is being transformed into a transportation hub to meet additional buses and taxi service. The Miami station will be located by the American Airlines (Miami Heat) arena on the site of the original Henry Flagler Railroad Miami station.
Improvements to the single rail line will be the addition of another set of tracks, and in some sections, a third. Seamless single-rails will replace all existing track before service begins and All Aboard officials promise this will make the trains run much more quietly. New rail crossing systems are being installed already, and these modern crossing systems have gates that block the entire crossing on both sides of the track. This also allows trains (including current freight trains) to approach crossings without using their horns – another promised benefit to the upgrades. What no one can answer at the moment is what the additional 16 north-bound and 16 south-bound trains per day will do to traffic in areas like downtown Fort Lauderdale along major thoroughfares.
The luxury train sets are already being built by Siemens in California and are planned with quiet cars (no kids), Wi-Fi available (no word whether free or paid) and the Orlando hub will allow visitors to jump onto alternate transportation to Disney World and to Downtown Orlando.
Development Update: The Sunrise Galleria Redevelopment and Planned Community
Your Guru was able to attend the Central Beach Alliance (CBA) membership meeting on Thursday, October 2nd, where we were given some preliminary information on the massive redevelopment of the site where the Galleria Mall is located.
An ambitious plan is in preliminary planning stages featuring the construction of several buildings including 1,645 residential units, a 150 room hotel, a senior residential facility, and a renovation of the mall itself. The plans seem quite comprehensive but are still open for community comment and nothing has been approved for construction at this time. A more final plan should be presented to the CBA in January, 2015, with that version to be submitted to the City of Fort Lauderdale for eventual approval.
Over the years, the site has evolved from what once was the Sunrise Mall, a modest strip mall, built in 1954.
In 1981 the mall was enclosed and developed into the indoor mall we see today, and re-named the Galleria Mall in 1980. In 2004, the new front entrance and the section of the mall that contains all the restaurants was constructed.
The main feature of the redevelopment plan will be right along the IntraCoastal Waterway where a 45 story condominium is planned. Tentatively named 2600 at The Galleria, this building will be the tallest of the new buildings and the developer hopes to construct 379 residential units, 165 hotel rooms, and 32,000 square feet of additional retail space. This tower is planned to be 45 stories tall.
Other sites feature plans:
-> A 17 story senior residential community of 326 units
-> A 15 story residential building of 236 units
-> An 11 story residential building of 108 units
-> A 14 story residential building of 238 residential units
-> A 24 story residential building of 167 residential units
-> A 28 story residential building of 198 residential units
Would you like to be kept up-to-date on the development at The Galleria on Sunrise?
For additional information contact Robert Darrow at Keller Williams Fort Lauderdale with the contact form below or call Robert today at 954-446-9001 with any questions. Ready to make an appointment to view this incredible property? For all your Fort Lauderdale real estate needs and an introduction to The Galleria on Sunrise, we are always here to help as your buyers agents in the Fort Lauderdale area.
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