For the first time in history, Fannie Mae executives are interested in real estate investment to meet housing demand.
Washington, D.C.: Dr. Doug Duncan, Executive VP and Chief Economic Officer of the Federal National Mortgage Association, otherwise known as Fannie Mae or FNMA, hosted the association’s quarterly strategy meeting in Washington D.C. What made this particular session an unprecedented event in the history of Fannie Mae, however, was the representation of real estate investors among the invited attendees. This is the first time that guests outside of Capitol Hill have been invited to any sort of government discussion, which has opened up a debate on the importance of real estate investors in the current housing market; something that the REI industry has been waiting for.
The FNMA was founded as part of the New Deal with the purpose to expand the secondary mortgage market by securitizing mortgages in the form of mortgage-asset into more lending and, in effect, increasing the number of lenders in the mortgage market by reducing the reliance on locally based savings and loan associations. However, Fannie Mae’s limit on the number of loans made to a single investor had previously made it difficult for investors who flip or rent property, or those invilved in wholesale real estate investing, to be economically motivated to provide housing sufficient to meet demand.
Why house flippers and landlords are important to Fannie Mae.
The significance of the events of this meeting between top FNMA officials and real estate investors is that, for the first time, a discussion took place over the representation and perspective of experienced investors and the restrictions that have been put on single-family rental loans since the economic crisis. The meeting proved to be a positive step forward in the government’s interest in investors and their loan options. provided an optimistic future for more non-occupant loan options, and for lending to be based on the property’s income, as opposed to the borrower.
Due to a nationwide imbalance of housing supply versus demand, home prices have skyrocketed, and many potential first-time homeowners have resorted to renting property instead of buying. While landlords are indeed embracing the current state of the market, it is the tenants who are feeling the pressure. Between the peak of the housing bubble to the present, homeownership dropped over six percent. Investors, particularly those who invest in rental properties, are needed to provide adequate supply to meet demand for housing, as most low and middle-income families make up the widening housing gap.
While renters with median income are keeping up with the rising tide, those with mid-lower incomes are especially restricted. CoreLogic, leading provider of consumer, financial and property information, released studies in 2016 that showed 26 percent of renters in the U.S. paid landlords at least half their income. Rental rates have far outpaced wages, which, unfortunately, affects Americans who are unable to keep up with rising rental prices; leaving many with little options. Landlords are the ones who benefit from these circumstances, but Fannie Mae is now acknowledging those who invest in real estate are the key to easing the situation for renters.
Investing in real estate, or, when investors buy damaged or foreclosed homes and rehabilitate them to sell or rent the home to tenants, are set to take advantage of the market. The FNMA’s affordable housing responsibilities prompted this meeting between government officials and investors, and, as the market has changed post-crisis, are encouraging REI. On that note, New Western Acquisitions aims to do their part to meet demand and accommodate consumers who are searching for housing within budget.
To provide an adequate supply of affordable homes, the real estate brokerage firm gives real estate investors access to off-market investment properties that can earn a wide profit margin. New Western’s low property prices and exclusive discounts are meant to benefit investors with significant profit when they fix and flip, or fix and rent, their property investment.
New Western wants you to be a part of their success.
From its beginning in Dallas, New Western proved their potential in eight short years. The company now has 17 offices throughout the United States, including branches in California, Georgia, Florida, and Pennsylvania. Six new branch locations in two states premiered in 2016 alone, which equates to a 50 percent revenue increase year-over-year.
New Western aims to be at the forefront of real estate investing, and the tremendous momentum of New Western’s expansion and success has earned the company a top-ranking spot among the fastest growing companies, and they don’t plan to slow any time soon. To date, New Western has acquired and taken title to enough single-family homes to rank as one of the largest and most successful home buyers and sellers of distressed investment properties nationwide.
Landlords, New Western has the keys to your next rental home.
Just like Fannie Mae, New Western is encouraging investors to become landlords of rental investment property in their area. By making it easy to find investment properties at deep discounts, New Western aims to increase investor profit, meet demand for homes, and accommodate consumers who are searching for housing within budget.
New Western Acquisitions specializes in providing discounted off-market properties designed to increase investor profit when they fix and flip, or fix and rent, their property investment. Not only are these investment houses exclusive and unavailable to the public, but provide a wide profit margin for investors up to 50% lower than market price, and sometimes lower.
Future landlords, enjoy your access to exclusive off-market investment rental homes that aren’t available to the public. Since our properties aren’t even published on the MLS, you’ll have exclusive access to deep discounts and premium real estate before anyone else. What are you waiting for?
Subscribe to stay up-to-date with New Western’s “In the News” series.
Our “In the News” blog series keeps up with the latest economic news and real estate current events, such as our recent undertaking to find the nation’s hottest markets. We now have availability of wholesale real estate properties in arlington, as well as Dallas investment properties, and more! Subscribe to the blog and you’ll stay updated on all the latest developments and successes of New Western, as well as national current events that matter to investors like you.
Whether you’re curious about the benefits of real estate, or looking to invest, we’ll keep you up-to-date with everything you need to know. Subscribe to the blog, and you’ll receive all the latest thoughtful, thorough posts on everything to do with REI.