The Federal Reserve announced they are cutting their benchmark rate 25 basis points at their monthly policy meeting yesterday. In reaction to this policy change, mortgage rates responded by jumping UP 25 basis points. Based on recent history, the best time to lock an interest rate has been the few days BEFORE an anticipated Fed cut as these windows have provided borrowers the best pricing relative to the overall market.

The fastest way to lose a deal is to wait for perfect conditions. Don’t get paralyzed by chasing the “perfect” rate, property, or partner. The best investors know that speed is critical. If the numbers make sense and the fundamentals check out, move forward. Get the deal done before the opportunity passes you by.

When analyzing a deal, always build in a cushion for unexpected costs. Whether it’s higher rehab expenses, a delayed appraisal, or additional holding costs, smart investors plan for the “unknowns” upfront. A conservative approach to budgeting protects your returns and keeps your funding options wide open when surprises pop up.

The federal government has SHUT DOWN! What this means for real estate and how it impacts investors - lenders will be facing delays in third party services that require governmental support. These are items such as IRS validation, social security administration verifications, FEMA flood insurance guarantees, and more! While you may not be using institutional lending products to facilitate your own deals, lots of buyers and sellers still are. These delays have the potential to cause a domino-effect that will set off a chain reaction of missed or delayed closings. If your deal requires a property to sell to a buyer with a mortgage, or you private money lender is opening a HELOC or taking cash-out to fund your deal, make sure their timelines are still intact. It is better to get in front of these issues today so they don't turn into tomorrow's problems.