All Encompassing Mortgage and Real Estate Thread

[txduck87 987]

This has been my experience. My last realtor was horrible. I literally was coordinating shit she should have been doing.

She must have had great tits.

[Mother mopar 3,323]

She must have had great tits.

I'll let you decide. It won't be hard to figure out.

https://www.gbrealtygroupfl.com/team-page

[MAUFRAIS 6,633]

Tina Tina the sperm cleana

[BearSchlong 8,108]

Her infants did not go hungry.

[jimmyjazz 46,058]

1 minute ago, BearSchlong said:

Her infants did not go hungry.

Drinking silicone?

[Neonmoon 38,130]

10 year looking good in pre-market

But look who's speaking at 9am

ugh. please don't fuck us

 

Edit: Nevermind. It's a FedListens event. Powell just read a generic statement and didn't say shit. Now they are listening to panel people talk

Edited March 22 by Neonmoon

[UTPhil2006 3,809]

[Captainant 27,723]

FTC is finally taking a look at the price coordination that has been happening via the pricing services that have become ubiquitous

https://www.ftc.gov/business-guidance/blog/2024/03/price-fixing-algorithm-still-price-fixing

 

[CooterBrown 18,022]

This morning I was finally on the receiving end of home insurance rate increase butt fucking.  On the 1st, my home insurance goes from $2,420/year to $3,410.  Last month, I got hit with a car insurance increase for 3 cars that went from $4,200/year to $6,600.  I've never had a claim on either policy.

Fuck all ya'll insurance companies.

 

Edited March 27 by CooterBrown

[South Austin 52,559]

29 minutes ago, CooterBrown said:

This morning I was finally on the receiving end of home insurance rate increase butt fucking.  On the 1st, my home insurance goes from $2,420/year to $3,410.  Last month, I got hit with a car insurance increase for 3 cars that went from $4,200/year to $6,600.  I've never had a claim on either policy.

Fuck all ya'll insurance companies.

Mind telling us which insurer(s)?

[KYHorn 17,134]

My Liberty rates for home insurance doubled in December. Car insurance also increased significantly. I promptly found a smaller company (Grange) that only resulted in a very modest increase to both. 

[UTPhil2006 3,809]

There’s a thread on CYHMWT about insurance and auto but ping @C-Man and see if he can possibly help.  He has some numbers and parameters on the thread of where he can best help. Def worth a shot 

[CooterBrown 18,022]

1 hour ago, South Austin said:

Mind telling us which insurer(s)?

Home insurance is Liberty Mutual and auto is Progressive.

LM and Progressive must be owned by the same parent company because when I switched my auto from LM to Progressive, I was able to keep all my LM discounts.  At the time, when my kid turned 16, Progressive was a lot cheaper for adding a teen driver.  

 

[hornian 5,222]

2 hours ago, UTPhil2006 said:

There’s a thread on CYHMWT about insurance and auto but ping @C-Man and see if he can possibly help.  He has some numbers and parameters on the thread of where he can best help. Def worth a shot 

Plus one for @C-Man. If he could beat USAA I'd go back to him a heartbeat.  If you don't qualify for USAA, definitely talk to him. 

[jimmyjazz 46,058]

6 minutes ago, hornian said:

Plus one for @C-Man. If he could beat USAA I'd go back to him a heartbeat.  If you don't qualify for USAA, definitely talk to him. 

I'm with @C-Man, and definitely agree. 

What I've never understood are the requirements to qualify for USAA.  For instance, my Dad served a short stint in the Navy before a 4F for asthma, and my wife's parents both served (mom an officer, dad enlisted).  As far as I know, none of the 3 every had USAA insurance.  Does my wife qualify?

[C-Man 27,248]

Just now, jimmyjazz said:

I'm with @C-Man, and definitely agree. 

What I've never understood are the requirements to qualify for USAA.  For instance, my Dad served a short stint in the Navy before a 4F for asthma, and my wife's parents both served (mom an officer, dad enlisted).  As far as I know, none of the 3 every had USAA insurance.  Does my wife qualify?

USAA definitely loosened the rules for eligibility in the last decade or so to let more and more people qualify. Personally, I think it's hurt the brand in that it has stretched them thin.

To my knowledge, you don't have a dedicated agent that is your go-to person at USAA. It's a call center. For everything.

My clients get me, my primary account manager -- and then a team of other account managers in my office in the event that neither one of us is immediately available.

[Mother mopar 3,323]

This morning I was finally on the receiving end of home insurance rate increase butt fucking.  On the 1st, my home insurance goes from $2,420/year to $3,410.  Last month, I got hit with a car insurance increase for 3 cars that went from $4,200/year to $6,600.  I've never had a claim on either policy.
Fuck all ya'll insurance companies.
 

I'll take that home insurance hike any day over the Florida insurance shit show.

[UTPhil2006 3,809]

Can confirm the above on USAA. When we call in for EOI it’s just a phone system not a dedicated rep for the client. 

[Neonmoon 38,130]

The insurance quotes in Florida are…high

In fact, I have a couple under contract now in NC that cited it as reason to bail (and the heat)

[LCHorn 2,629]

2 hours ago, C-Man said:

USAA definitely loosened the rules for eligibility in the last decade or so to let more and more people qualify. Personally, I think it's hurt the brand in that it has stretched them thin.

You’d probably know better than me, but in my opinion it’s changed the makeup of the risk pool from veterans to mostly civilians, and that’s otherwise equalized the claims between it and other insurers (where previously they could afford to be cheaper because veterans were more likely to be risk averse, I.e., not speeding, not letting deferred maintenance on a house get out of hand, etc.).  
 

When I had USAA I watched my car insurance double in two years because I lived in 78702, or so they told me. 

[Captainant 27,723]

6 hours ago, CooterBrown said:

This morning I was finally on the receiving end of home insurance rate increase butt fucking.  On the 1st, my home insurance goes from $2,420/year to $3,410.  Last month, I got hit with a car insurance increase for 3 cars that went from $4,200/year to $6,600.  I've never had a claim on either policy.

Fuck all ya'll insurance companies.

 

It's what happens when consumers get gouged on prices - it's more expensive to replace so the premiums and deductibles must go up

[Neonmoon 38,130]

14 minutes ago, LCHorn said:

veterans were more likely to be risk averse

[MonkeyDoughnut 10,347]

14 minutes ago, LCHorn said:

You’d probably know better than me, but in my opinion it’s changed the makeup of the risk pool from veterans to mostly civilians, and that’s otherwise equalized the claims between it and other insurers (where previously they could afford to be cheaper because veterans were more likely to be risk averse, I.e., not speeding, not letting deferred maintenance on a house get out of hand, etc.).  
 

When I had USAA I watched my car insurance double in two years because I lived in 78702, or so they told me. 

Is USAA still tiered, where Officers and such get better rates?  I know I was CIC (child of) member and I ended up shopping USAA around about 4 years ago. Once hail claim for roof and no auto claims in 28yrs and I was able to cut my auto by 50% and my home owners by almost 70% for almost identical coverage.  They made it real clear they didn't care and thanks for not shopping around sooner. Kicking myself for not doing just that.

[Dendox 102]

12 minutes ago, LCHorn said:

You’d probably know better than me, but in my opinion it’s changed the makeup of the risk pool from veterans to mostly civilians, and that’s otherwise equalized the claims between it and other insurers (where previously they could afford to be cheaper because veterans were more likely to be risk averse, I.e., not speeding, not letting deferred maintenance on a house get out of hand, etc.).  
 

When I had USAA I watched my car insurance double in two years because I lived in 78702, or so they told me. 

USAA was concerned about the death of the auto policy.  Whether it be self driving car manufacturers or OS writers for said cars - they were quite concerned that "auto insurance" would look markedly different in the future.  In an effort to remain relevant, they sought to deepen their relationships with current members (LOTS OF CROSS SELLING) and expand their pool of members.  Since the most of the officers who were elligible were members and using USAA, that left little room to grow without opening up the criteria for membership.  The risk pool is pooled into different sub insurers based on categories.  USAA (auto) is still officers only.  Sub groups make up the new members.  Garrison P&C is for family.  There is a county mutual outfit too.  Depending on how you qualify, your auto rates may be great, good, or shit.  

While I take umbrage with their rates, they are still pretty competitive.  I quit giving them benefit of the doubt when their claims handling procedures changed so dramatically.  When I lost the benefit of being treating like family, they lost the benefit of deference when their rates increased.  

AllCat can suck a dick.  IF you have a property claim and AC is assigned, do everything in your power to refuse them and get an actual USAA employee to look at your damage.  

[LCHorn 2,629]

1 hour ago, Dendox said:

USAA was concerned about the death of the auto policy.  Whether it be self driving car manufacturers or OS writers for said cars - they were quite concerned that "auto insurance" would look markedly different in the future.  In an effort to remain relevant, they sought to deepen their relationships with current members (LOTS OF CROSS SELLING) and expand their pool of members.  Since the most of the officers who were elligible were members and using USAA, that left little room to grow without opening up the criteria for membership.  The risk pool is pooled into different sub insurers based on categories.  USAA (auto) is still officers only.  Sub groups make up the new members.  Garrison P&C is for family.  There is a county mutual outfit too.  Depending on how you qualify, your auto rates may be great, good, or shit.  

You might be right, but I feel like their push to expand the risk pool began more than a decade ago and preceding any common concern about the automobile market changing much (not only that, but from friends who've worked there, it's run a lot like the military where changes only occur incrementally and no one is getting rewarded for making a risky bet on what the future might hold, even if it works out). 

I also think USAA auto is available beyond officers--I was able to get it and I'm (was) a shitbag enlisted USMC grunt. 

[Dendox 102]

The shift did begin more than 10 years ago.  I can tell you the self driving car was a significant part of the calculus. 

You are right about no one is rewarded for betting risky.  Very conservative at its core.  

I misspoke - USAA means something very specific in this context (United Services Automobile Association) and was originally officers only, then opened up to the following groups - officers, pre-commission officers and e7 and up.  

USAA CIC is typically who insures the enlisted 

[Newdoc 3,448]

Does anyone have any experience with Qualified Opportunity Zones or a Delaware Statutory Trust? I am looking to sell a small property with decent capital gains exposure (no debt). I don't need the monthly income at this time (due to current tax rate) and not sure I want to be a landlord again. I could invest in something else not in real estate but that would mean paying the higher capital gains rate. 

[StassneyHorn 6,624]

Jared kushner? I kid

pretty sure an old buddy of mine 10+ years ago did that for GGP in Chicago. Might be able to pass info along or at least his LinkedIn

 

[txduck87 987]

Does anyone have any experience with Qualified Opportunity Zones or a Delaware Statutory Trust? I am looking to sell a small property with decent capital gains exposure (no debt). I don't need the monthly income at this time (due to current tax rate) and not sure I want to be a landlord again. I could invest in something else not in real estate but that would mean paying the higher capital gains rate. 

Yep. Sold some of my aapl last year and rolled gains into one. I invest with origin investments in several of their funds.

10 year hold totally eliminates the capital gain and begins to reduce it after 4 years. Also get other benefits of depreciation etc on growth.

[Neonmoon 38,130]

I was out of pocket today. Was there a particular reason the MBS market shit its pants? Or just reacting to PCE and spending data from Friday?

[Captainant 27,723]

44 minutes ago, Neonmoon said:

I was out of pocket today. Was there a particular reason the MBS market shit its pants? Or just reacting to PCE and spending data from Friday?

Brief moment of clarity? And/or the REIT chickens starting to coming home to roost on the end of a quarter?

[Neonmoon 38,130]

April has taken on a huge shit on bond market. 

 

[UTPhil2006 3,809]

2 hours ago, Neonmoon said:

April has taken on a huge shit on bond market. 

 

Yup. 

[South Austin 52,559]

2 hours ago, Neonmoon said:

April has taken on a huge shit on bond market. 

Explain to me how that affects the real estate market like I'm in fifth grade.  And you can skip the "Once upon a time" intro.

[Upgrayedd 5,818]

15 minutes ago, South Austin said:

Explain to me how that affects the real estate market like I'm in fifth grade.  And you can skip the "Once upon a time" intro.

Treasuries are considered the risk free (default) rate.  Commercial property assets are expected to generate a yield (or Cap Rate) at a spread above the risk free rate (the riskier the asset, the higher the spread).  If the income generated by the asset doesn’t change, the only way for the asset to generate a higher Cap Rate is for the asset’s value to be decreased.

Similar for residential mortgages without the Cap Rate- more just a spread above treasuries.

Or so I’ve been told 

[Neonmoon 38,130]

38 minutes ago, South Austin said:

Explain to me how that affects the real estate market like I'm in fifth grade.  And you can skip the "Once upon a time" intro.

Borrowing money more expensive. (Interest rates above 7%. Mortgage applications have/will take a dive)

People no want to borrower expensive money

No buyers. 

Home prices could trickle down more. 

[South Austin 52,559]

11 minutes ago, Neonmoon said:

Borrowing money more expensive. (Interest rates above 7%. Mortgage applications have/will take a dive)

People no want to borrower expensive money

No buyers. 

Home prices could trickle down more. 

[Incredulity 11,682]

14 minutes ago, Neonmoon said:

People no want to borrower expensive money

Can we have a thread or perhaps even a forum motto?

[UTPhil2006 3,809]

2 hours ago, South Austin said:

Explain to me how that affects the real estate market like I'm in fifth grade.  And you can skip the "Once upon a time" intro.

Borrowing more expensive. Potentially less money to borrow. It’s not an oh my god level up from last week, but it also really hasn’t been trending down in the last few months either minus a couple blips. 

[jimmyjazz 46,058]

9 minutes ago, UTPhil2006 said:

but it also really hasn’t been trending down in the last few months either minus a couple blips. 

I would think there is little reason for rates to trend down more until the Fed takes action, no?

[UTPhil2006 3,809]

5 minutes ago, jimmyjazz said:

I would think there is little reason for rates to trend down more until the Fed takes action, no?

Pretty much. And that can has been kicked down the road a couple times already. March, May, and now June for cuts. We’ll see what happens when June rolls around 

[South Austin 52,559]

As someone with a house on the market since just before Spring Break, the buyer's market is really, really quiet right now.  I've got a lot of equity in my home, but unless I decide to suck it up and rent for a year or so, I'm going to make a lot less than I had thought at the beginning of the year.

[LCHorn 2,629]

5 minutes ago, jimmyjazz said:

I would think there is little reason for rates to trend down more until the Fed takes action, no?

Sort of?  The MBS market is in competition with the Fed and pricing spread between the two securities is subject to market demand.  We’ve seen increased demand for MBS based on projections of what the Fed will do, and decreased demand when the news appears to favor “higher for longer”.  All of this is upriver of retail prices but if you want cheap mortgages you need to convince CALPERS to buy the bonds that collateralize them.  
 

This is my prediction, but once the Fed does reduce rates (in June or whenever), the MBS market will probably quickly narrow down the spread (so maybe a 25 bps cut on T bills gets us 50 or 100 bps subsequent improvement over maybe the next month).  
 

But who knows, there’s massive commercial loan risk exposure by the depository banks and they are also competing with Fannie/Freddie to issue collateralized debt.  It might be that six months from now, GSE money is the only game in town and we’ve seen them happily return profits to shareholders rather than adjust pricing to incentivize borrowing.  

[LCHorn 2,629]

10 minutes ago, South Austin said:

As someone with a house on the market since just before Spring Break, the buyer's market is really, really quiet right now.  I've got a lot of equity in my home, but unless I decide to suck it up and rent for a year or so, I'm going to make a lot less than I had thought at the beginning of the year.

My advice, considering you moved in with your SO and not homeless, is to wait it out rather than reduce price.  The rate environment is significantly distorting demand and it isn’t likely to be as seasonally driven as 2014-2019.  It might be that demand peaks in October because rates are in the 5’s.  
 

I also think the previous prejudice against houses that have been sitting isn’t as strong.

[South Austin 52,559]

7 minutes ago, LCHorn said:

My advice, considering you moved in with your SO and not homeless, is to wait it out rather than reduce price.  The rate environment is significantly distorting demand and it isn’t likely to be as seasonally driven as 2014-2019.  It might be that demand peaks in October because rates are in the 5’s.  
 

I also think the previous prejudice against houses that have been sitting isn’t as strong.

Thanks for the input.  Splitting my bride-to-be's mortgage is a bargain, and if the wait is worth it, I think I can float the mortgage at my house for several more months.  My agent did express some concern with days on market, and suggested a small price decrease just to get showings, which has worked a bit.

[Neonmoon 38,130]

54 minutes ago, South Austin said:

As someone with a house on the market since just before Spring Break, the buyer's market is really, really quiet right now.  I've got a lot of equity in my home, but unless I decide to suck it up and rent for a year or so, I'm going to make a lot less than I had thought at the beginning of the year.

You're fine. 

Anytime the MBS market goes down, I'm going to cry and moan like a little bitch. (It already reversed and is back up 11 on the day)

Rates are going to say in high 6s/low 7s until the Fed makes a cut. 

 

[Aqua Buddha 14,600]

Is the Austin home market cracking?  I saw the story in the WSJ a few weeks ago and now this:

[Gil Bang 25,991]

I love working with "good" investors.   I listed a property that my investor has used as a rental for 10 years.   The tenants moved and left it super clean, but the smell of wet dog is thick in the air.  I'm trying to figure out how I'm gonna overcome this.  

The seller asks me how the property looks, and I tell him everything is great except the dog smell.

"Fuck that...do you have a carpet guy?  Find out how fast we can get new carpet and have your guy call me for a credit card number".  

Booyah.  My carpet guy will measure today and install thursday. 

[Sbbruin 21,866]

16 minutes ago, Aqua Buddha said:

Is the Austin home market cracking?  I saw the story in the WSJ a few weeks ago and now this:

I've heard it definitely was.  One of the few places where values are dropping.

This person sounds like an Alexandre Dumas

[Surly Bevo 25,124]

5 hours ago, LCHorn said:

GSE money is the only game in town and we’ve seen them happily return profits to shareholders rather than adjust pricing to incentivize borrowing.  

Point of parliamentary procedure.  The shareholder in the GSEs is the Treasury, less some of the profits they now allow them to keep to build up capital reserves.

Edited April 2 by Surly Bevo