It looks like there are some DSCR products that will give you fixed 30 year debt at 1-2% above owner occupied 30 year fixed. This makes a lot more sense than taking a commercial loan for real estate. Unless Im missing something. All the reasons, to limit building of ADU projects of no more than 10 units. At 10 Units, the city also adds about 100k in extra fees. Float rate debt feels like one of the biggest risks in operating multifamily real estate. Having loans reset every 5 or 7 years places a ton of risk to your business.

I keep seeing these offers advertised. Has anyone gotten one of these, are they legit?

Hey everyone, Senator Porter here. I've been in real estate for over 25 years, and I can tell you that few things generate more buzz than the Fed. Their recent rate cut is no exception, and it brings up two of the most critical questions facing our market today: 1. The "Lock-In" Effect: Is this the year homeowners with a sub-4% mortgage rate finally decide to sell? Many have been "locked in" by their low rates, creating a significant inventory shortage. The question is, will a small rate cut be enough to offset the pain of losing that historically low rate and encourage them to list? 2. Anticipation vs. Reality: The market has been moving in anticipation of the Fed's action, and mortgage rates have already dropped a bit. So, is the impact of the rate cut already "priced in"? Or can we expect to see more significant decreases that could truly unlock new inventory and boost buyer activity? I'm curious to hear your thoughts. From your perspective, as agents, investors, or homeowners, what do you think? Will this move be a game-changer, or just a ripple in the pond? I'll be in the comments to discuss, and let's get a conversation going.

- The average 30-year fixed mortgage rate has dipped to around 6.50% (weekly average), marking its lowest level since October 2024   . - Some days even saw rates as low as 6.29%, driven by weak jobs data  . - As of September 9, survey data shows the average at about 6.423% for borrowers with excellent credit profiles, a bit lower than the weekly average  . How to Get a Better Mortgage Rate Now! 1. Shop Around & Compare Offers Obtain quotes from multiple lenders—banks, credit unions, mortgage brokers, and online providers—to find the most competitive rates . 2. Improve Your Credit Score Even a modest boost in credit can yield meaningful savings. Aim for a score of 780+ to access the lowest rates . 3. Increase Your Down Payment A higher down payment lowers your loan-to-value (LTV) ratio, which typically translates into better rates . 4. Use Discount Points Pay upfront mortgage points (typically 1% of loan amount per point) to reduce your long-term interest rate—e.g., one point might shave off ~0.25% . 5. Optimize Rate Lock Period Lock in your rate within a tight closing window. Avoid elongated lock periods which can raise rates—doubling a lock from 30 to 45 days may increase your rate . 6. Consider a Float-Down Option If you lock now but rates later fall further, a float-down feature may allow you to switch to the better rate before closing . 7. Leverage First-Time Home Buyer Programs If eligible, explore government or state-level programs that offer rate discounts, down payment help, or other incentives . 8. Weigh Adjustable-Rate Mortgages (ARMs) ARMs (e.g., 5/1 or 7/1 products) generally offer lower initial rates than 30-year fixed, though they carry rate reset risk . 9. Refinancing with Strong Leverage Refinance only if today’s rate is at least 0.5–1% lower than your current mortgage, to ensure the savings outweigh closing costs . - Use FHA or VA streamline refinance if applicable—they offer faster, lower-cost refinances by reusing original paperwork  .

@Senator Porter Wanted to get your thoughts. I keep hearing all sorts of predictions about automation and Generative AI wiping out jobs. Some forecasts say 95 percent of all jobs could disappear by 2045, while others expect at least 20 to 40 percent gone by 2030. We just saw awful job numbers last week, which makes me wonder: even with all the upcoming rate cuts, will that actually drive investment into businesses, real estate, and jobs instead of just flowing into debt securities? And what happens if unemployment holds above 20 percent for the long term? People still need a place to live unless the government is prepared to accept mass homelessness. How do they pay rent? It seems like that would crush the real estate market for good, even if the government tried to soften the blow with some form of universal basic income. Might be interesting to discuss at our next meeting.