#277 Should You Still Buy Real Estate with High Interest Rates? ft. Dan Peck of Movement Mortgage
In this episode, Dr. Peter Kim interviews Dan Peck, Senior Loan Officer at Movement Mortgage, to tackle a common question: Should you still buy real estate with high interest rates? Dan shares valuable insights on navigating today’s market, explains creative mortgage solutions, and highlights why real estate remains a smart long-term investment. Whether you’re a first-time buyer or seasoned investor, this episode will help you make informed decisions. Tune in!
Movement Mortgage brings this episode to you.
Dan Peck and his team at Movement Mortgage have been working with clients to help them purchase real estate in all 50 states for over 25 years. Whether you are purchasing a Primary Residence, 2nd Home, Investment Property, or Short Term Rental, Dan’s team will make the process seamless as you grow your real estate portfolio. Dan and his team are ready to help you today!
Are you looking for a community to encourage you as you begin, or want to accelerate your business to the next level? Then join thousands of physicians who share the same journey of creating their ideal lives through multiple streams of income by joining us in our Facebook communities such as Passive Income Docs and Passive Income MD.
Episode Highlights
Now, let’s look at what we discussed in this episode:
- Dan Peck and Movement Mortgage
- Understanding the Current Mortgage Market
- Navigating the High-Price Home Market
- Creative Mortgage Solutions and Short-Term Buy-Downs
- Commercial Real Estate and Investment Properties
Here’s a breakdown of how this episode unfolds.
Episode Breakdown
Dan Peck and Movement Mortgage
Peter Kim begins by introducing Dan Peck, a Senior Loan Officer at Movement Mortgage with over 25 years of experience. Dan shares his extensive background in the mortgage industry, which began in college, and his deep understanding of various market cycles.
As a trusted advisor to physicians, Dan offers valuable insights into how lending works and why real estate remains a solid investment. He highlights his long-standing experience with different market conditions and how those have shaped his current approach to mortgage solutions.
Understanding the Current Mortgage Market
Dan provides an overview of the current mortgage market and compares today’s interest rates to those of past decades. While high rates may seem daunting, he reassures buyers that the 6%-7% range is not unprecedented.
Drawing on history, Dan explains that real estate, when approached with a long-term perspective, has always been a solid investment. He emphasizes that despite higher interest rates, there are still opportunities for growth, especially for those buying with a long-term strategy in mind. This insight is crucial for anyone concerned about current market conditions.
Navigating the High-Price Home Market
When discussing how high home prices and interest rates affect buyers, Dan stresses the importance of acting now rather than waiting for rates to drop. He explains that real estate tends to appreciate over time, and delaying the purchase could lead to higher prices down the road.
With fewer buyers in the market, those who act now have the opportunity to negotiate better deals and secure favorable terms. This advice is particularly helpful for those who are waiting for the “perfect” market conditions but could end up missing out on the best opportunities.
Creative Mortgage Solutions and Short-Term Buy-Downs
Dan discusses how adjustable-rate mortgages (ARMs) are making a comeback as a way to secure lower initial interest rates. He also explains the benefits of short-term buy-downs, like a 2-1 buy-down, which allows buyers to temporarily lower their mortgage rate for the first two years.
This option is ideal for physicians who expect their income to rise in the near future. Dan provides clear advice on when these creative financing solutions can be the right fit, helping buyers manage their mortgage payments and plan for future refinancing.
Commercial Real Estate and Investment Properties
Shifting to commercial real estate, Dan highlights the unique challenges of buying investment properties, especially when it comes to securing loans. He explains that commercial properties are evaluated based on their cash flow, not just the buyer’s creditworthiness.
For those looking to enter the commercial market, Dan discusses the value of purchasing distressed properties and rehabbing them to increase their value. He also shares strategies for working with regional lenders who offer better terms, making commercial real estate investments more accessible to physicians and high-income earners.
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