Real Estate investors buying discount properties in Memphis have been keeping a sharp eye lately on the economic numbers coming out. Some of the big story lines that have so many excited are those around employment. With Memphis landing several big announcements in the past two months from major international companies, economic recovery and the roll Memphis is going to play for the nation seems to be forefront.
Memphis, Tennessee has not been immune to the pains of a slow economy and some small companies have certainly suffered over thepast few years. However, while the economy has put the squeeze on many small businesses and single man operations, the investment housing boom in cities like Memphis has helped some small businesses flourish. MemphisInvest.com, formally known as Memphis Invest, GP, is a family owned real estate investment company who has led a resurgence for several local small businesses and even helped grow their services during the recession.
"Since I've started doing business with Memphis Invest, I've added one more truck, two more employees and doubled my equipment" stated Tony Scott, owner of The Lockman. Tony and wife Tara own The Lockman and offer locksmith services across the city. "They have helped me to double my business in what are very tough times for a lot of companies. Today they account for close to half of my business and keep all of my crews very busy".
In reviewing numbers for the first two months of 2011, Memphis Invest, GP had generated over $650,000 in payments to local companies on approximately 44 renovation jobs. Those jobs often include local renovation crews and smaller general contracting companies as well as local plumbers, electricians, pest control, lawn companies and locksmiths like Tony Scott. "We work with probably 25 plus companies in the area both big and small and have probably grown into an important supplier of consistent work for these guys" says Ryan Flannery.
Memphis continues to be the beneficiary to big announcements from major corporations intent on growing and developing new operations in Memphis. With the announcement this week of 275 additional long term jobs, those who are investing in Memphis real estate have have 275 more reasons to smile!
Mortgage interest rates continue to rise on almost a weekly basis, according to information released by Freddie Mac. The average rate on a 30-year fixed mortgage jumped to 5.05 percent last week. That is the highest the rate has been in over three years and is the 6th straight week that the rate has gone up.After seven months of declines that put the benchmark 30-year rate at a half-century low last year, the rise in rates has driven down demand for financing and is leading mroe and more investors to seek alternative forms of mortgages. The Mortgage Bankers Association ( MBA) reports on an almost weekly basis that the demand for morgages continues to set new lows each week.
With analysts warning about continued hike in rates, any stall in home purchases will have a chilling effect on an already fragile housing market. What these trends are allowing for though is a huge increase in cash investors entering the market and driving bargain prices even lower.
Freddie Mac’s study, which is based on data gathered from about 125 lenders across the country, tracks rises in rates across the board. Every loan porduct, not just the 30 year mortgage showed increases.
Each week, Bankrate surveys a panel of mortgage experts for their predictions of which way rates are headed over the next seven days. In a landslide, 80 percent of the panelists are calling for continued increases in mortgage rates. Just 13 percent forecast a decline in mortgage rates, and 7 percent expect no change over the next weeks.
With economic predictions like these, I would say it is definitely time to use your alloted number of mortgages for real estate investing while the money is still cheap. As long as the property produces a strong cash flow, get the best rate and term you can while rates are still at these historic lows because many economists also say these rates will most likely not be seen again for a very long time!
Today, I am going to share a little wisdom I heard from a group of the best real estate investing minds I have ever met. When we met Fortune Builders a couple of years ago, they had already made a name for themselves as a premier property flipping company and had gained national notoriety as one of the hit companies on A&E T.V.'s "Flip This House". We were interested in having them speak to our investors about real estate in general and they were interested in seeing our operation up close. What resulted from that first meeting has been two of the absolute BEST companies in their respective fields teaming up to help investors around the world take advantage of this crazy real estate market.