The actions pursued by the Federal Reserve in raising the benchmark interest rate has finally begun to take effect and are evident in July's CPI report which was just released this morning. 

Economists were anticipating an 8.7% reading for inflation, yet the results were better than anticipated with inflation coming back at 8.5%. 

Shall this news prompt the Fed to take a more relaxed approach to raising rates in the future? We shall see. 

In the Riverside market, the median days on market as of 07/31 came back at 30.5 days with 8.6% of all active listings experiencing a price reduction. 

In the Los Angeles market, the median days on market as of 07/31 came back at 33 days with 6.3% of all active listings experiencing a price reduction.  

I've recently been assisting many clients that are taking the necessary steps to prepare themselves in order to be in a position that allows them to secure investment properties when the opportunity arises.  

A recurring theme is this: clients own a primary residence and would like to employ their equity towards a down payment on a new property.  

Although this is a great idea, most clients cannot justify refinancing their very competitive 2-3% interest rates on their first mortgage in order to utilize their equity at current interest rates (4-6%).  

The solution is this:  A Home Equity Line of Credit 

This allows clients to tap into their equity without changing the terms of their existing mortgage. Here are the requirements to qualify for a HELOC:

• 680+ credit score

• Primary residence only, 1-4 units

• Up to 90% CLTV

• Max line of credit is $500k 

• Interest rates starting at 5.75% 

This is just another option available to clients to assist them in leveraging their assets wisely to expand their real estate portfolio and create wealth through owning real estate.

If you're interested in exploring whether this program makes sense for your circumstances, feel free to schedule a time with me to go over your scenario by clicking here.