Shelter Six:  No Tax Returns Required for Investment Property loan

May 21, 2018 by · Leave a Comment 

Shelter’s new SmartVest program allows an experienced real estate investor to buy up to 15 financed investment properties with no income documentation or debt ratio calculation.

The qualification on a SmartVest loan is based on a property cash-flow analysis and allows investors to close in the name of an LLC with interest-only loan options.

Consumer spending accounts for about 70% of US economic activity and Retail Sales is the key economic report that investors watch each month that monitors spending.

Following the hurricanes last fall, Retail Sales showed strong gains for 3 months before posting 3 months of losses causing investors to worry that economic growth was slowing.

Last week’s Retail Sales report bucked the recent trend and showed a very healthy .3% increase in April spending from March.

The market is now pricing in a near 100% probability that the Fed will increase short-term rates by .25% in June with a 70% probability of another .25% hike in September.

Rate Update

A speech last week from the governor of the Bank of France hinting that a European rate hike might come sooner than expected was the catalyst for mortgage rates jumping to the highest level in seven years.

This Week

New Home Sales will be released on Wednesday, Existing Home Sales on Thursday, and Durable Orders on Friday.