All Encompassing Mortgage and Real Estate Thread

[UTPhil2006 3807]

3 hours ago, SimonBolivar said:

The market is incredibly frustrating right now. We aren't even able to view houses before they're under contract on the same day for well above asking price. This is Waco by the way, not somewhere desirable. 

Sounds about right. Certain price points are super crazy right now. I’m sure at least 5 people I can think of off the top of my head from recently can sympathize with you currently on offers competition. 

[Murfdogg21 4412]

I hope it keeps up this weekend. Our central Austin listing goes live tomorrow. It would be great to get the offers/bidding war done before the snowfall. 
 

[Murfdogg21 4412]

Also, another shout out to Phil, Thad, and team. They were quick to get me approved on a 30 fixed at a great rate and closing cost. I didn’t go with them only because there was a bank error in my favor and the builder of my new home in Spring/Woodlands offered me $5k towards closing with them...after I already opted to take the $5k towards the purchase price.  Will use Team Phil on next purchase soon though!

[Storm the Field 5294]

Got a good laugh of this one. Seems like the appropriate thread.

 

[Anastasis 23469]

What is the ballpark percentage to expect for closing costs on a refi?

[Wulaw Horn 19069]

14 minutes ago, Anastasis said:

What is the ballpark percentage to expect for closing costs on a refi?

It’s not really a per enrage as the only thing based on loan amount is your title insurance policy. By and large- everyone involved in the transaction gets paid based upon doing the Job. Attorneys fees, underwriting, processing, appraisal etc are all the same charge for a 100k loan as for a 500k loan. 
You should expect somewhere between $4,000 and $5,000 in non recurring closing costs. 
 

[Hmbre97 6305]

Being a shaggy poor, what is the max DTI lenders are allowing right now? FICO is 750+ and will only have 10% down

[Wulaw Horn 19069]

6 hours ago, Hmbre97 said:

Being a shaggy poor, what is the max DTI lenders are allowing right now? FICO is 750+ and will only have 10% down

Depends on the loan type. I just did a VA purchase at 65% dti. I got an fha qualified then other day at 56 dti. Conventional is pretty much tapped out at 50% dti. With good credit and 10% down my guess would be a penny under 50% dti and you should be good to go. 
10% is more then you need to put down. It might be a good ideal (if you are really close) to look at lessening your down payment and instead pay off debt. Every dollar inn monthly obligations you wipe out is like $125 in purchasing power (more or less- depending upon different factors). 

[TKthunder2 4988]

On 2/1/2021 at 7:58 PM, LebongJames said:

Anyone get a letter from TCAD asking them to self disclosure the purchase price of their property?

My initial thought was to trash letter and tell them to go fuck themselves.

Yep

On 2/1/2021 at 8:58 PM, hornian said:

I got that. I filed it in the round file. 

Yep

[LCHorn 2616]

On 2/12/2021 at 7:03 AM, Wulaw Horn said:

Depends on the loan type. I just did a VA purchase at 65% dti. I got an fha qualified then other day at 56 dti. Conventional is pretty much tapped out at 50% dti. With good credit and 10% down my guess would be a penny under 50% dti and you should be good to go. 
10% is more then you need to put down. It might be a good ideal (if you are really close) to look at lessening your down payment and instead pay off debt. Every dollar inn monthly obligations you wipe out is like $125 in purchasing power (more or less- depending upon different factors). 

I did a VA loan late last year with 85%(!!!)  DTI

[Wulaw Horn 19069]

5 minutes ago, LCHorn said:

I did a VA loan late last year with 85%(!!!)  DTI

Crazy isn’t it?  73% was the highest I’d done on the VA. 85 is nuts. 

[UTPhil2006 3807]

Glad the 10 year/rates chose this week to go up.  Bout a 17 basis point jump since last Thursday.

[Wulaw Horn 19069]

7 minutes ago, UTPhil2006 said:

Glad the 10 year/rates chose this week to go up.  Bout a 17 basis point jump since last Thursday.

Yeah- if we have to do re-appraisals I’m going to take about a 50k hickey to deliver with extensions and the like. Had a couple deals not locked. We will deliver- of course- bc we aren’t shit bags but yeah- would have liked for a calm market when we are stuck with our finger up our ass in winter storm. 

[Hmbre97 6305]

I guess I will be apartment living for the forseeable future. Covid has turbofucked the housing market. All existing stuff is getting bid up and all the new build stuff I'm looking at has waitlists until the summer at earliest. Doesn't really matter because the build I was looking at was on the edge of my affordability and they just raised the base price another $9k. No telling what it will be by July.

 

[tokamak 6408]

I guess I will be apartment living for the forseeable future. Covid has turbofucked the housing market. All existing stuff is getting bid up and all the new build stuff I'm looking at has waitlists until the summer at earliest. Doesn't really matter because the build I was looking at was on the edge of my affordability and they just raised the base price another $9k. No telling what it will be by July.
 

Austin?

I’m in Houston and everyone keeps telling me shit like this but I also have my house listed for 2% more than I paid for it 6 years ago and everyone keeps telling me it’s too high. I want to start seeing some evidence of this mythical ultra hot market.

[Hmbre97 6305]

13 minutes ago, tokamak said:

Austin?

I’m in Houston and everyone keeps telling me shit like this but I also have my house listed for 2% more than I paid for it 6 years ago and everyone keeps telling me it’s too high. I want to start seeing some evidence of this mythical ultra hot market.

Yep. 

 

I wish I could move to Houston but I'm stuck in Williamson county until my kids turn 18 or my ex moves (which she won't). Feeling pretty hopeless, NGL.

[Horns99 155]

Austin?

I’m in Houston and everyone keeps telling me shit like this but I also have my house listed for 2% more than I paid for it 6 years ago and everyone keeps telling me it’s too high. I want to start seeing some evidence of this mythical ultra hot market.

Damn, what part of Houston / where ? Most everything I’ve seen goes pretty quick right now


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[UTPhil2006 3807]

9 hours ago, Hmbre97 said:

I guess I will be apartment living for the forseeable future. Covid has turbofucked the housing market. All existing stuff is getting bid up and all the new build stuff I'm looking at has waitlists until the summer at earliest. Doesn't really matter because the build I was looking at was on the edge of my affordability and they just raised the base price another $9k. No telling what it will be by July.

 

I wonder if the builder raised it in relation to the rising of lumber pricing

[tokamak 6408]

17 minutes ago, Horns99 said:

Damn, what part of Houston / where ? Most everything I’ve seen goes pretty quick right now


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Westbury. We've had a decent number of showings so it's not dead. But EVERYONE keeps telling me that the market is red hot, yet I am absolutely going to lose money on this house.

[UT_OB1 2218]

That’s kind of crazy right now (I’m in and look around Houston). How old is your home?  Most recent uodates?  Your realtor or anyone give you feedback on something that stands out that is turning people off?  
 

is it possible you overpaid 6 years ago?

[tokamak 6408]

39 minutes ago, UT_OB1 said:

That’s kind of crazy right now (I’m in and look around Houston). How old is your home?  Most recent uodates?  Your realtor or anyone give you feedback on something that stands out that is turning people off?  
 

is it possible you overpaid 6 years ago?

I think it's probably this and I'm just salty.

[UT_OB1 2218]

1 hour ago, tokamak said:

I think it's probably this and I'm just salty.

You could get a heloc to get most of your down payment out, use that as down payment on your new house, rent it out and let someone else pay the mortgage. Get the tax benefits for renting and then sell it in 10 years when you won’t lose money on it 😀

[Gil Bang 25942]

On 2/23/2021 at 6:32 AM, UTPhil2006 said:

I wonder if the builder raised it in relation to the rising of lumber pricing

I grabbed a couple of 2x4s at Lowes the other day.  I about shit my pants when the cashier said "$15.45".  

[mchookem 16327]

back with another thumbs up for Thad and the folks at Prodigy...cash-out refi went fast and without hiccups. 

i'll say this...our appraisal was...something.

[Upgrayedd 5810]

23 hours ago, Gil Bang said:

I grabbed a couple of 2x4s at Lowes the other day.  I about shit my pants when the cashier said "$15.45".  

Now do that across 345 units of multifamily.  

[Wulaw Horn 19069]

So- par rate was 2.75 Wednesday before the storm. Par rate today after losing 90+ basis points?  3.5%. Ouch. 3/4 of a point rise in interest rates in 2 weeks. That will leave a mark. 

[Stunns38 3460]

Now do that across 345 units of multifamily.  

$4.5MM hit

[LABEVO 928]

On 1/31/2021 at 6:47 PM, Gil Bang said:

Triple-net deal makes even more sense.  Management effort is zero. 

Dumb question time - how would I source a commercial real estate deal? 

[TKthunder2 4988]

https://www.google.com/amp/s/www.mansionglobal.com/amp/articles/most-expensive-home-in-austin-texas-sells-in-off-market-deal-224022

1446 rockcliff road

[Chewbacca 7773]

Dumb question time - how would I source a commercial real estate deal? 

How much are you seeking to invest in a single deal? That will drive a lot of it.

[LABEVO 928]

11 hours ago, Chewbacca said:

15 hours ago, LABEVO said:

Dumb question time - how would I source a commercial real estate deal? 

How much are you seeking to invest in a single deal? That will drive a lot of it.

for my parents, $500k. i do have a few friends that are looking around the $1m mark so would like deals that are between $500k-$1m.

[Chewbacca 7773]

for my parents, $500k. i do have a few friends that are looking around the $1m mark so would like deals that are between $500k-$1m.

Investing directly with a developer is the way to go at that level. Have to find one you trust, though.

[LABEVO 928]

3 minutes ago, Chewbacca said:

27 minutes ago, LABEVO said:

for my parents, $500k. i do have a few friends that are looking around the $1m mark so would like deals that are between $500k-$1m.

Investing directly with a developer is the way to go at that level. Have to find one you trust, though.

eh, that is what i expected and why i have steered them towards rental houses. thanks

[Hefeweizen 5311]

4 hours ago, Chewbacca said:

4 hours ago, LABEVO said:

for my parents, $500k. i do have a few friends that are looking around the $1m mark so would like deals that are between $500k-$1m.

Investing directly with a developer is the way to go at that level. Have to find one you trust, though.

And the management fees come out before any profit.  The best developers charge a hefty fee, but if you get in the right deal it can make enormous returns with zero effort on your part.  Trust is everything.

[Gil Bang 25942]

13 hours ago, LABEVO said:

for my parents, $500k. i do have a few friends that are looking around the $1m mark so would like deals that are between $500k-$1m.

Combine your funds, form an LLC, and buy a Jack-in-the-box in a prime location.   Profit. 

[UTPhil2006 3807]

On 2/28/2021 at 10:08 PM, Gil Bang said:

Combine your funds, form an LLC, and buy a Jack-in-the-box in a prime location.   Profit. 

I will order the first 8 tacos.

[victory88 5663]

So I'm looking for ways to passively invest some of the money I've saved over the last few years.  My brother in law to be has been making a killing off of buying and selling apartment complexes.  I know nothing about this space.  He's fuck you rich.  I have a bit of money saved for my age but no where near what he's worth.  I would like to become fuck you rich but that won't happen doing what I'm doing currently.   I had mentioned to him that I was looking to invest a little bit of money in real estate so he gave me an opportunity to get a tiny tiny tiny bite from his next project.  It's a 175+ unit mid rise apartment complex in affluent neighborhood in Houston.  It's 93% occupied and rent is $150-200 below market value.  It's a nice property.  They're expecting to make little touch ups, raise rent, and sell in in 7-10 years hopefully.  He's saying to expect 3-4 x ROI.

Has anyone invested in real estate acquisitions/deals like this?  I was hoping to invest part of my savings that I have sitting in a savings account, maybe 100-150k worth, into this but I have no knowledge of this space and I have no idea if this is going to get flushed down the toilet or not.  If he loses a 10 million+, it a dime in a bucket for him.  If I lose 150k, my wife is going to kill me.  He has a team that basically does everything for him and he just sponsors these deals.  For you guys in this space, please educate me about this, if it's worth investing if the funds are there, or should I run and put it into another investment vehicle.  

Thanks in advance, I just would like to educate myself more.  

[UTPhil2006 3807]

@Chewbacca to the white courtesy phone.

[Chewbacca 7773]

1 hour ago, victory88 said:

So I'm looking for ways to passively invest some of the money I've saved over the last few years.  My brother in law to be has been making a killing off of buying and selling apartment complexes.  I know nothing about this space.  He's fuck you rich.  I have a bit of money saved for my age but no where near what he's worth.  I would like to become fuck you rich but that won't happen doing what I'm doing currently.   I had mentioned to him that I was looking to invest a little bit of money in real estate so he gave me an opportunity to get a tiny tiny tiny bite from his next project.  It's a 175+ unit mid rise apartment complex in affluent neighborhood in Houston.  It's 93% occupied and rent is $150-200 below market value.  It's a nice property.  They're expecting to make little touch ups, raise rent, and sell in in 7-10 years hopefully.  He's saying to expect 3-4 x ROI.

Has anyone invested in real estate acquisitions/deals like this?  I was hoping to invest part of my savings that I have sitting in a savings account, maybe 100-150k worth, into this but I have no knowledge of this space and I have no idea if this is going to get flushed down the toilet or not.  If he loses a 10 million+, it a dime in a bucket for him.  If I lose 150k, my wife is going to kill me.  He has a team that basically does everything for him and he just sponsors these deals.  For you guys in this space, please educate me about this, if it's worth investing if the funds are there, or should I run and put it into another investment vehicle.  

Thanks in advance, I just would like to educate myself more.  

So your BIL is in charge of the project?  Do you trust him to not fuck you?  Does he have a lot of experience doing this (and by 'this', I mean exactly this - buying value add mid rise apartments, putting lipstick on the pig and selling after you turn the units?)  If the answer to these is a yes, this can be a great way to get a piece of projects you typically would never see.  There is a lot of money to be made in developments like this, but there is a lot of risk as well.  That's why the upside is so big.  

 

Ask him what the deal structure is.  There should be some kind of pref paid on your money.  Likely in the 8-10% range.  There will be a promote (sweat equity) that his company takes for doing everything.  Promote can be anywhere from 25-50%.

 

I'd be happy to look at it offline for you.  There is no such thing as a standard deal when it comes to development, you just want to make sure you're being treated fairly.

[victory88 5663]

4 minutes ago, Chewbacca said:

So your BIL is in charge of the project?  Do you trust him to not fuck you?  Does he have a lot of experience doing this (and by 'this', I mean exactly this - buying value add mid rise apartments, putting lipstick on the pig and selling after you turn the units?)  If the answer to these is a yes, this can be a great way to get a piece of projects you typically would never see.  There is a lot of money to be made in developments like this, but there is a lot of risk as well.  That's why the upside is so big.  

 

Ask him what the deal structure is.  There should be some kind of pref paid on your money.  Likely in the 8-10% range.  There will be a promote (sweat equity) that his company takes for doing everything.  Promote can be anywhere from 25-50%.

 

I'd be happy to look at it offline for you.  There is no such thing as a standard deal when it comes to development, you just want to make sure you're being treated fairly.

going to send you a pm

[Wulaw Horn 19069]

4 hours ago, victory88 said:

going to send you a pm

So, about 15 years ago I asked a mortgage guy when I was in title why he gave his BiL a smooth buttfucking on a deal, his response “wrong side of the family, cuz”. Make sure you aren’t wrong side of the family. 

[UTPhil2006 3807]

Doesn't really affect most of yall, and isn't that big of a deal but figured some of yall would find this interesting.  We don't do a whole lot with Quicken and 0 with Fairway but definitely a bold move by UWM..

Quote

United Wholesale Mortgage, the top wholesale lender in the nation, announced on a Facebook live Thursday that it will no longer partner with brokers who also work with Rocket Mortgage and Fairway Independent Mortgage Corp.

Mat Ishbia, president and CEO of UWM, gave brokers and owners a deadline of March 15 to sign an addendum saying they are not working with those two lenders.

“If you work with them, can’t work with UWM anymore, effective immediately,” Ishbia said. “I can’t stop you, but I’m not going to help you, help the people that are hurting the broker channel, and that’s what’s going on right now.

“We don’t need to fund Fairway Independent or Rocket Mortgage to try to put brokers out of business. We don’t need to do that. If you want to do that as your own deal, no hard feelings, but you can’t work with UWM anymore,” he said.

According to the announcement, the decision comes in response to Rocket and Fairway participating in actions including soliciting loan officers away from brokers and working directly with real estate agents to cut brokers out of the entire process.

On Feb. 1, the wholesale mortgage lending division of Rocket Companies launched a national mortgage broker directory on its website, and this week launched a jumbo product for brokers.

Ishbia pointed to the “other 75 great lenders” and said that there are other lenders where he doesn’t agree with their business practices, “but these two are going after the broker channel.”

The news is just one of three announcements from the wholesale lender, which announced the launch of Prime Jumbo, coming March 17, with LTV up to 89.99%, and sharpened pricing across the board.

In May 2020, UWM launched its “Conquest” program to enable brokers to go after new customers, even ones that a broker lost to another lender just weeks earlier. Ishbia said that the program’s “been great. It’s had it’s in place,” but moving forward, “We’re gonna pivot here at UWM, we’re all gonna do it together. Conquest will still be out there, but our regular programs, our elite programs, our non-elite programs, our regular conventional, FHA, VA, all those programs, those are going to be the focus.”

In response to UWM’s announcement, Austin Niemiec, Rocket Pro TPO vice president, said in an interview with HousingWire: “Brokers are incredibly smart and savvy mortgage professionals and business owners. They are dialed in to their industry. And we know that we need to provide value, and we need to support them. And if we don’t, it’s their decision and their choice to fire us. But what you’re seeing happen is the complete opposite.

“This isn’t a move to support the broker community, it actually harms brokers. This isn’t a move to support the consumer, it actually harms the consumer. This is a move to support UWM, and UWM alone. A consumer goes to a broker because of choice,” Niemiec added. “A broker’s competitive advantage is choice, it is their super powered. By UWM dictating brokers to eliminate one of their choices, it harms the broker and harms the consumer, period.”

Fairway declined to comment.

 

[Wulaw Horn 19069]

It’s funny to me how much UWM hates Quicken. 
who fucked whose college girlfriend to set up this decades long jihad?  I think it was a UWM guy fucking the quickens GF, but it might have gone the other way. Story was published like 6-12 months ago. 

[CHIEF 5079]

The market is absolutely bonkers in my neighborhood. We are gated in a river bend with only two ways in and out. We used to have around 40-60 listings available, it is now down to six, and we have four of them. We average adding a new listing about every 5-7 days. Our last three listings sold at $10k, $15k, and $30k over asking (a $329.9k listed price brought $360k, cash, with no option period). If I would have listed my house last summer, I probably could have gotten $525k. If I put it on the market at $800k, it would be sold in three days, that's the average DOM right now. Buddy of mine bought a river house about 18 months ago for $600k, I pocket listed it last night for $975k. Only about 20% are non-cash buyers.

CHIEF

Edited March 9, 2021 by CHIEF

[UTPhil2006 3807]

1 hour ago, Wulaw Horn said:

It’s funny to me how much UWM hates Quicken. 
who fucked whose college girlfriend to set up this decades long jihad?  I think it was a UWM guy fucking the quickens GF, but it might have gone the other way. Story was published like 6-12 months ago. 

Yep it was UWM guy who did the fucking.  I think it's relatively hilarious that a college gf cheating has created a billion dollar feud

[BradInATX 9208]

On 2/10/2021 at 3:20 PM, SimonBolivar said:

The market is incredibly frustrating right now. We aren't even able to view houses before they're under contract on the same day for well above asking price. This is Waco by the way, not somewhere desirable. 

Not sure what you're looking for exactly but my sister in law just did a new build out there in China Springs that was really nice for what she paid for it. Might be the way to go. I think it took 6 months.

[SimonBolivar 10958]

50 minutes ago, BradInATX said:

Not sure what you're looking for exactly but my sister in law just did a new build out there in China Springs that was really nice for what she paid for it. Might be the way to go. I think it took 6 months.

My dad's an agent so I ended up buying one before it hit the market in town, but I think China Spring may be the answer for a lot of home buyers right now in McLennan County.

[Native Horn 3500]

3 hours ago, UTPhil2006 said:

Yep it was UWM guy who did the fucking.  I think it's relatively hilarious that a college gf cheating has created a billion dollar feud

Well I am now proud to know that my mortgage company (UWM) is the one that did the fucking, and not the one getting fucked.  Thank you Phil and Thad!

[Murfdogg21 4412]

We listed on a Thursday night of what ended up being the weekend of the freeze storm. Had 3 offers before we hit the MLS, 12 offers in total. We listed somewhat aggressively based on comp prices and $/sqft, and yet all offers were above asking (most were $100k+ over list). What in the hell is going on here??? This is not sustainable and every person who put in one of these offers should reconsider their finances. 55% growth in 3 years on this particular home?!  And the schools we are zoned to are dog shit. I rode the central Austin real estate train from 2011-2021, now heading for the burbs. Goodbye and good luck. 
In related news, hey Phil I have some cash let’s buy some investment properties in Houston!

[Wulaw Horn 19069]

I’m at my national mortgage meeting. Chatting up an Austin broker and she said she has 30 million in prequals out looking that can’t find a home. 
nuts. 
I feel for you Austinites man.