All Encompassing Mortgage and Real Estate Thread

[horn4life 3784]

On 7/12/2024 at 8:01 PM, Gil Bang said:

Depends on your state.  In CA, you need to be a licensed contractor to legally do anything over $500 in labor and materials. 

 

On 7/13/2024 at 10:39 AM, Gil Bang said:

You can do whatever you want as the owner.  Still supposed to get building permits for a lot of stuff, but the cities will issue them to "owner-builder".

You wouldn't believe the shit I've done at my home.  For instance, I converted a walk-out basement/game room to a studio apartment with kitchen and bathroom. 

 

On 7/13/2024 at 11:52 AM, UTPhil2006 said:

My concern is what the lease will convey either standard or LTO. It needs to be tailored by an attorney but that adds another reason for these guys to pass. 
 

I genuinely think your best bet is to he as “close” to honest as possible with the guy about your intentions. Anything outside of that will require things he likely won’t want to do. 

I'm in Texas.  On this place everything I would be doing would be NON-mechanical, I am fairly certain.  There are two types of renovations I see in my area.  The dumpster outside for weeks with a permit. And the under the radar remodels without a permit.  Basically where they pile of the debris in the garage and have a dumpster or dump trailer in and out on the same day.  If no mechanical work then I would just do the stealth method. 

Likely a pipe dream, but I thought I might toss it out there. And yes whatever the agreement it would be via attorney.  I also thought about using the repairs as a down payment on an interest only loan, but math is tight with higher rates.  

Anyone have any feedback on renting furnished 30 day or more rentals?  

 

 

[UTPhil2006 3821]

What city? For instance Midland vs Waco vs Houston May produce very different outcomes. I can take a look though. Have you breached the conversation with the owner at all yet? 

[Gil Bang 26068]

1 hour ago, horn4life said:

 

 

I'm in Texas.  On this place everything I would be doing would be NON-mechanical, I am fairly certain.  There are two types of renovations I see in my area.  The dumpster outside for weeks with a permit. And the under the radar remodels without a permit.  Basically where they pile of the debris in the garage and have a dumpster or dump trailer in and out on the same day.  If no mechanical work then I would just do the stealth method. 

Likely a pipe dream, but I thought I might toss it out there. And yes whatever the agreement it would be via attorney.  I also thought about using the repairs as a down payment on an interest only loan, but math is tight with higher rates.  

Anyone have any feedback on renting furnished 30 day or more rentals?  

 

 

Yes.  I do a furnished rental, and I advertise on furnishedfinders.com

I've been doing it for 2 years.  I've had 2 travel nurses, one from B.C. and one from San Antonio, and I had an apprentice in the IBEW that was sent to apprentice for a local company here.   I'm vacant right now, and have been since June.  I'm selective on my tenants.  This studio is attached to my home, so I'm not interested in anybody without a job, works from home, etc.  I want somebody that will be away from here for 40 hours a week. 

I've heard that the rates are down for travel nurses, and I'm certainly seeing fewer of them seeking housing.  

My studio is 400 sf with a private entrance, private driveway, and a nice patio.  I get $2,000/mo. 

[UTPhil2006 3821]

May want to clarify California 😂

[horn4life 3784]

3 hours ago, Gil Bang said:

Yes.  I do a furnished rental, and I advertise on furnishedfinders.com

I've been doing it for 2 years.  I've had 2 travel nurses, one from B.C. and one from San Antonio, and I had an apprentice in the IBEW that was sent to apprentice for a local company here.   I'm vacant right now, and have been since June.  I'm selective on my tenants.  This studio is attached to my home, so I'm not interested in anybody without a job, works from home, etc.  I want somebody that will be away from here for 40 hours a week. 

I've heard that the rates are down for travel nurses, and I'm certainly seeing fewer of them seeking housing.  

My studio is 400 sf with a private entrance, private driveway, and a nice patio.  I get $2,000/mo. 

So what would you guess the normal rate for your room would be if you rented it out annually unfurnished? Just over half that?  

I felt like my 30 day rents was about 2.5X normal monthly unfurnished rent would have been.  But thanks for the furnishedfinders.com tip!!!

[Gil Bang 26068]

I'd say the studio would get $1000 /mo unfurnished. 

[UT_OB1 2227]

What are your utilities like on a 400sf apt?  Less than $100/month average?

[Gil Bang 26068]

3 hours ago, UT_OB1 said:

What are your utilities like on a 400sf apt?  Less than $100/month average?

Shit, no idea.  It's connected to the main house.  I have solar.  I really don't pay close enough attention to notice the difference between when it's occupied and vacant.  It's got a super-efficient mini-split for heat and AC.  

[Gil Bang 26068]

Fuck my life. 

 

So, a couple of months back, I get an email from my office.  "Tammy Jones (fake name) has a new listing and needs somebody to hold an open house".  The listing was decent, and at a good price point, and I had nothing to do, so I volunteered.  I'd met Tammy a time or two.  Nice enough gal, lots of experience, but, if Vic met her, he'd say she needs to mix in a salad.  Anyway, Tammy and I chat, and she tells me that she'd moved to Texas, but kept her CA license. I actually think I might have posted this up thread.  She got a call from an old contact, grabbed a seat (or two, I hope) on SWA, and came out and signed up the listing. 

So Tammy asks me if I'd like to find the client a new home, in a lower COLA, about 60 miles away.  It's the town where my folks live, so I'm familiar with it, and I'll visit them when I'm up there.  Two birds/one stone, etc.   Client is pre-approved for a reverse-mortgage purchase money deal.  She hands me the pre-approval.  I meet the lady, a widow for a few years now, we hit it off, and I start showing her houses.  

After several trips, we see one today than hit's every button.  She loves it!  She says "I want it".  Fat daughter agrees.  I advise a full-price offer, because it's perfect for her in every respect, and let's get it.  Oh, she's now closed the sale on her previous home and is staying with family, so she's got cash in hand.  Not a contingent purchase. 
 

We agree to write at full-price.  I contact the lender and she says yeah, since it's vacant, do a 21 day close. I call the listing agent and tell her an offer will be coming her way tonight.  

I come home and draft the offer, with the precise terms of the pre-approval.  I send it to the buyer.  She calls and says "I don't want to put that much down".   

Uh, you don't have a fucking choice, that's the offer that the lender gave you.   I call the lender, and tell her to call the client and straighten this shit out.  Turns out that the client has been on a 3-week spending spree, and has pissed away so much money that she's unable to close now.  

FML.  

[UTPhil2006 3821]

9 hours ago, Gil Bang said:

Fuck my life. 

 

So, a couple of months back, I get an email from my office.  "Tammy Jones (fake name) has a new listing and needs somebody to hold an open house".  The listing was decent, and at a good price point, and I had nothing to do, so I volunteered.  I'd met Tammy a time or two.  Nice enough gal, lots of experience, but, if Vic met her, he'd say she needs to mix in a salad.  Anyway, Tammy and I chat, and she tells me that she'd moved to Texas, but kept her CA license. I actually think I might have posted this up thread.  She got a call from an old contact, grabbed a seat (or two, I hope) on SWA, and came out and signed up the listing. 

So Tammy asks me if I'd like to find the client a new home, in a lower COLA, about 60 miles away.  It's the town where my folks live, so I'm familiar with it, and I'll visit them when I'm up there.  Two birds/one stone, etc.   Client is pre-approved for a reverse-mortgage purchase money deal.  She hands me the pre-approval.  I meet the lady, a widow for a few years now, we hit it off, and I start showing her houses.  

After several trips, we see one today than hit's every button.  She loves it!  She says "I want it".  Fat daughter agrees.  I advise a full-price offer, because it's perfect for her in every respect, and let's get it.  Oh, she's now closed the sale on her previous home and is staying with family, so she's got cash in hand.  Not a contingent purchase. 
 

We agree to write at full-price.  I contact the lender and she says yeah, since it's vacant, do a 21 day close. I call the listing agent and tell her an offer will be coming her way tonight.  

I come home and draft the offer, with the precise terms of the pre-approval.  I send it to the buyer.  She calls and says "I don't want to put that much down".   

Uh, you don't have a fucking choice, that's the offer that the lender gave you.   I call the lender, and tell her to call the client and straighten this shit out.  Turns out that the client has been on a 3-week spending spree, and has pissed away so much money that she's unable to close now.  

FML.  

[UTPhil2006 3821]

DJI down 500 Nasdaq down 650 and 10 year up .04 after being slightly down this morning (and flat for like a week) 

[LTtxfan 49386]

47 minutes ago, UTPhil2006 said:

DJI down 500 Nasdaq down 650 and 10 year up .04 after being slightly down this morning (and flat for like a week) 

Close today...

[Chewbacca 7788]

What rates are you guys seeing for an owner occupied jumbo mortgage?

[UTPhil2006 3821]

Assumed a few things, but on 1.2MM value/purchase price 80% LTV 760+ credit ~7.3%

[UTPhil2006 3821]

18 hours ago, UTPhil2006 said:

DJI down 500 Nasdaq down 650 and 10 year up .04 after being slightly down this morning (and flat for like a week) 

Down .07 to 4.21. Hit 4.14 for 4 month lows early last week so a little bit more work to get back to those but all in all a solid month 10 year wise 

[UTPhil2006 3821]

18 hours ago, UTPhil2006 said:

Assumed a few things, but on 1.2MM value/purchase price 80% LTV 760+ credit ~7.3%

Actually, our Jumbo centric bank is around 7.0%

[UTPhil2006 3821]

10 year down some .04 (been having a good week) to 4.09 which is sitting right at 5-6 month lows (<4.07 hasn’t been seen since early Feb) ahead of todays Fed announcement at the end of their meeting. A lot points still to Sept rate cuts. 

[Wulaw Horn 19156]

21 minutes ago, UTPhil2006 said:

10 year down some .04 (been having a good week) to 4.09 which is sitting right at 5-6 month lows (<4.07 hasn’t been seen since early Feb) ahead of todays Fed announcement at the end of their meeting. A lot points still to Sept rate cuts. 

Maybe 50 basis points in September if we get a weak jobs number and continued easing in inflation. 

[Wulaw Horn 19156]

Bout to be refi season boys. For those that bought in the last 12-18 months anyway. 

[UTPhil2006 3821]

4 hours ago, Wulaw Horn said:

Bout to be refi season boys. For those that bought in the last 12-18 months anyway. 

If y’all have a VA or FHA ~6.25+ it’s your time now

[UT_OB1 2227]

What happened?  What’d I miss?

[UTPhil2006 3821]

13 minutes ago, UT_OB1 said:

What happened?  What’d I miss?

Just a good month or so for rates. Still a bit to go for 95% of customers for Refis to make sense. For VA and FHA UWM has a rate special going on for August which is helping those 

[Gil Bang 26068]

8 hours ago, Wulaw Horn said:

Bout to be refi season boys. For those that bought in the last 12-18 months anyway. 

That's the difference between you guys and me.  In the right market, you cats can tap the same keg every 12 months.  I get 'em every 7 years.

[UTPhil2006 3821]

7 hours ago, Gil Bang said:

That's the difference between you guys and me.  In the right market, you cats can tap the same keg every 12 months.  I get 'em every 7 years.

We can trade. You come do Mortgages in Texas and I’ll do RE in San Diego. 

[Wulaw Horn 19156]

7 hours ago, Gil Bang said:

That's the difference between you guys and me.  In the right market, you cats can tap the same keg every 12 months.  I get 'em every 7 years.

Every 6 months if we are lucky. Of course if you are doing it every 6 months you are probably paying all borrowers costs and making a commission of less than 1% (no complaints I’m grateful) of the loan amount versus 3% of the sales price, so, yeah, it still probably sits on your favor unless and until refis are 70+ percent of the market. 

[UTPhil2006 3821]

Beautiful day on the 10 year down 0.13 to bust through the 4.00 barrier to 3.97 currently, first time we’ve been below 4 since early February 

[Wulaw Horn 19156]

Huge miss on jobs report. Only 124k. Stop me if you r heard this before but prior months were both revised down. 
MBs up 42 points already. About 200 points in the last 10 days. 
And here we go! Rates definitely coming down…
 

10 year down to 3.82 for @UTPhil2006

[UTPhil2006 3821]

[UTPhil2006 3821]

35 basis points in 3 days. Thanks Jobs report and Fed

[Wulaw Horn 19156]

Holy shit apparently carnage in the Asian stock markets overnight and the financial world is on fire. Dow is getting crushed in pre trades this morning. 
10 year treasury currently at 3.71. MBs aren’t trading yet. It was 4.26 last week around this time. 
Rates gonna get low low low low (comparatively) like shorty in the club.  

[Wulaw Horn 19156]

For fucks sake- mbs down 4 bips so far this morning (up means rates getting lower with mbs, down means rates getting higher with mbs). It usually means 10 year going down means mbs going up and rates going down- but not always. 10 points in the 10 year should be something g like mbs going up 50-75 points and rates shooting down .15-.20.  Not so far today. 

[UTPhil2006 3821]

Give it time Young Padowan. 

[UTPhil2006 3821]

2 hours ago, UTPhil2006 said:

Give it time Young Padowan. 

Nevermind. It’s gone by 11am

[Wulaw Horn 19156]

13 minutes ago, UTPhil2006 said:

Nevermind. It’s gone by 11am

Just got a reprice for the worse.  Apparently manufacturing wasn't the clusterfuck people were expecting.  Some sort of gossip going around that they were going to do a rate cut in between meetings that got squashed by that (I don't think they were ever doing the intermeeting rate cut).  

It's going lower though, I think the path is beyond obvious from here....Just a matter of when.  I put some people in on a rate that started with a 5 the other day- which was nice.  What- 2.5 or 3 months ago it was 7?

[Gil Bang 26068]

Hey y'all.  A couple of years back, I sold a condo near the beach in Carlsbad.  It was a no-smoking HOA, but the owner below was grandfathered in as a smoker, and she smoked a ton.  Anyway, she just died.  We know that she had a son in Texas because he was out there when we were doing the transaction.   

I ran down a Texas address.  Is there any of y'all that can look up the address and find the owner's name?   if so, please respond here and I'll PM the address, and I'll owe you a cold one. 

 

 

[UTPhil2006 3821]

35 minutes ago, Gil Bang said:

Hey y'all.  A couple of years back, I sold a condo near the beach in Carlsbad.  It was a no-smoking HOA, but the owner below was grandfathered in as a smoker, and she smoked a ton.  Anyway, she just died.  We know that she had a son in Texas because he was out there when we were doing the transaction.   

I ran down a Texas address.  Is there any of y'all that can look up the address and find the owner's name?   if so, please respond here and I'll PM the address, and I'll owe you a cold one. 

 

 

Yeah shoot it on over 

[UTPhil2006 3821]

Lost the .10 yesterday and up .09 today. Womp womp 

[Masshole Horn 778]

Question for the gurus here.

We bought our house at the peak of rates last October. We have a “free” refinance (lender’s fees waived I believe) that we need to complete within 18 months of the first loan.

Should we wait longer? Can we get a significantly better rate from different lenders?

[UTPhil2006 3821]

3 hours ago, Masshole Horn said:

Question for the gurus here.

We bought our house at the peak of rates last October. We have a “free” refinance (lender’s fees waived I believe) that we need to complete within 18 months of the first loan.

Should we wait longer? Can we get a significantly better rate from different lenders?

You should definitely shop it. Couldn’t hurt. Also to compare fee sheets and such. As far as the rate itself, I think I’d wait a little bit to see what shakes out with rate cuts and whatnot. You still have 8 months or so left on your timeline. Odds (hopefully) are that you have a couple refinances in your future if you bought near the top of the market 

[Muny_Tex 298]

6 hours ago, Masshole Horn said:

Question for the gurus here.

We bought our house at the peak of rates last October. We have a “free” refinance (lender’s fees waived I believe) that we need to complete within 18 months of the first loan.

Should we wait longer? Can we get a significantly better rate from different lenders?

I'm not a guru, but you might wanna evaluate your (+ S/O's) job security as part of your risk/reward calculus.  Presuming your "free ReFi" (and more likely, new deal with a competitor) will need to be re-underwritten, would hate to see yall get caught up in a layoff in midst of trying to get new loan.

This is just my own conjecture, but I would think the only thing likely to create "oh wow, really?!" type of rate drop in next ~6 months would be some severe recession shock and/or job market cascade downward...which may cause collateral damage to many would-be buyers + refi'ers.  (Side note: this is what I've been alluding to over the past year when telling the lender crowd to be careful what they wish for).

If your income situation is airtight, then fully agree to shop around/let it ride etc...trend line is most certainly gonna be in your favor.  But otherwise, may be wise to just take the W now (which is still gonna be meaningful $$ savings, espec with @Wulaw Horn or the other cats here) and take worst case scenario out of the equation.

[Gil Bang 26068]

so, don't cry for me shaggytina, because I'm as cool as the other side of the pillow, but, for the last 45 days, instead of working I could have been fingering my own asshole and I would have accomplished about the same (except for the loss of self-respect that would have occurred had I fingered my own asshole, NTTAWWT). 

But, I took, plenty of beach days and drank plenty of Prosecco.  So, life is good, right?    I had a milestone birthday today, and I'm self-reflecting a bit, and I've come to the conclusion that although I think of my self as a guy that scratches and claws all day, I'm really a sort-of-semi-retired wanker that takes any deal that splashes over my transom, but I'm not really throwing as much bait as I could be throwing. 

Call it an existential crisis.  Do I say "put the pedal to the medal" and bust my balls and see how much money I can make in the next 5-10 years before I call it quits, or do I just say "serenity now", pluck the low-hanging fruit, and spend the rest of my days fucking my woman, traveling, and fucking my woman in new and interesting places (geographically...none of her places are "new" but, I still find them interesting).  

[LCHorn 2633]

1 hour ago, Gil Bang said:

do I just say "serenity now", pluck the low-hanging fruit, and spend the rest of my days…

I thought the whole point of being a realtor was you can make a decent living AND have this lifestyle.  
 

Everyone I know who makes elite money in real estate/banking is a slave to the job.  

[Wulaw Horn 19156]

14 hours ago, Masshole Horn said:

Question for the gurus here.

We bought our house at the peak of rates last October. We have a “free” refinance (lender’s fees waived I believe) that we need to complete within 18 months of the first loan.

Should we wait longer? Can we get a significantly better rate from different lenders?

If it’s not a gimmick and the lender is going to pay all the title fees, appraisal fees, processing fees such that it doesn’t cost you any money just do it now- now is always the best time to get free money, you can never go broke taking a profit, and you can go back to the well and do it again in 6 months or a year or whatever. Don’t try to time the market, just do it every time it makes sense and doesn’t cost you any money. 

[UT_OB1 2227]

How do you negotiate a free ReFi?

 

@Gil Bang Do you know for sure you’re going to be alive in 10 years?  Or have the quality of life to get around and do what you want?  Do you have younger kids now?  Personally, kind of similar to not going broke always taking profits, enjoy life when/while you can.  You don’t get time back

[Gil Bang 26068]

1 hour ago, UT_OB1 said:

How do you negotiate a free ReFi?

 

@Gil Bang Do you know for sure you’re going to be alive in 10 years?  Or have the quality of life to get around and do what you want?  Do you have younger kids now?  Personally, kind of similar to not going broke always taking profits, enjoy life when/while you can.  You don’t get time back

My son is a grown-ass man with a family of his own. He's doing absolutely fantastic, although he works a very dangerous job.

[Wulaw Horn 19156]

1 hour ago, UT_OB1 said:

How do you negotiate a free ReFi?

 

@Gil Bang Do you know for sure you’re going to be alive in 10 years?  Or have the quality of life to get around and do what you want?  Do you have younger kids now?  Personally, kind of similar to not going broke always taking profits, enjoy life when/while you can.  You don’t get time back

Find someone more interested in volume than maximizing every deal. Here's how it works (I'm always super transparent with pricing and how things are):

The typical direct lender shop makes 3% per loan amount.  

The typical broker makes about 2.5%

The national average can be found here:  https://www.mortgagenewsdaily.com/mbs

Now- keep in mind this does NOT include points, and for some reason (people in my industry are idiots and borrowers are ignorant- b/c why wouldn't they be when they do this 5 times in their lifetime) something like 78% of people are paying points when rates are super high and you aren't likely to be in the loan for a long time- my industry should be flogged for that.

So- when you look at the national average the likelihood is that has about 2.5% or so in compensation to the broker or in payment to direct lender and cost to run their branch (staff, building, computers, software etc).

I typically work for 2%, b/c I have almost no overhead.  And by working for 2% I'm going to be better than the national average.  

If a client comes from a place like Surly, has good credit, is doing a refinance, and is someone I want to have in my database and mailing list I'm willing to do a deal for less than that- if the time makes sense. Refi's are typically easy- if you are refinancing your own client you probably already have most of their shit and just have to get some stuff updated.  I'd rather do this 4 or 5 times while they walk down the staircase (always free to the customer) and make 1 point at a time than do it once and have the customer feel bad a year from now when it's time to go again.  

So- I work for less than normal and use the rest to pay all the closing costs.  And I will do it over and over and over again, b/c it's good for the customer (who doesn't like free money) it's good for my staff, and I'd rather have all of 5 grapes than a sliver of a watermelon.  

If you want this free refinance feel free to reach out.  WE do them all the time. 

[UTPhil2006 3821]

Yeah there is no such thing as a free lunch. Basically they’re doing a higher rate (more money from lender) and then using that on you. Also in regards to the step down method some people do that and do your refi a bunch of times. I’d rather do the lowest I can get you the first time and capture it rather than do it 4 times in 4 years since you have to wait longer nowadays. How we’ve always done it at least. I would wager to say most of you have enough equity in your homes to do a no cost refi (not free but no money to the table) for a refinance you would be doing 

[Larry T. Spider 1747]

Wanted the boards opinion on this with all the changes in buyer’s compensation going on. I’m looking to buy an investment property in a different city and my realtor has been great. I definitely want him to be fairly compensated. 

The house I want to buy has a seller offering 2% commission to the buyer’s agent. My contract with him says that I would have to come up with the difference on anything under 3%.

I haven’t submitted an offer yet. Should I negotiate this? It not that expensive of a house so we are talking 2k. Should I ask for 2k cash at close? 

[UTPhil2006 3821]

Have you used the Realtor in the new city before (like is he writing it from where you currently are)? A few ways to skin that cat but yeah you could ask for 2k back. Or take 2k+ off the offer (this is where I would start). 

[Larry T. Spider 1747]

1 hour ago, UTPhil2006 said:

Have you used the Realtor in the new city before (like is he writing it from where you currently are)? A few ways to skin that cat but yeah you could ask for 2k back. Or take 2k+ off the offer (this is where I would start). 

He lives in the other city and this is my first deal using him. He started as an investor there before becoming an agent and is definitely worth paying out of pocket for. 

I feel like this situation is going to become more common with sellers trying to get a discount on commission and buyers having to foot some of the bill. Not necessarily against that, but sellers are usually the ones walking away with money while buyers are writing a fat check already. If somebody was buying an 800k house (common in Austin) that would be another 8k added to their down payment and closing costs.