All Encompassing Mortgage and Real Estate Thread

[UTPhil2006 3930]

31 minutes ago, Wulaw Horn said:

Yeah- I assume you have to pay it back when you refinance or sell but other than that it just sits there and does nothing. 

Yep it says you can pay on it if you want, but any sell/refi it comes into play and is paid off. 

[UT_OB1 2266]

4 hours ago, Wulaw Horn said:

Have a 100% option for a free 3% up to 15k for the right kind of borrower. Fill in more as it develops. 

Primary residence only?

[Neonmoon 38130]

Great program for certain markets. Saving money is a bitch. And no, not drinking Starbucks won’t save you shit. We have a 15K DPA program in NC. It’s pretty rad except houses in that price range in my area aren’t great, and most sellers won’t cover closing costs. 

[UTPhil2006 3930]

34 minutes ago, UT_OB1 said:

Primary residence only?

Correct. 

[Incredulity 11875]

2 hours ago, UTPhil2006 said:

Yep it says you can pay on it if you want, but any sell/refi it comes into play and is paid off. 

Is this program tax neutral?

[Wulaw Horn 19588]

1 hour ago, UT_OB1 said:

Primary residence only?

Yes. 

[Wulaw Horn 19588]

31 minutes ago, Incredulity said:

Is this program tax neutral?

I’m sure. They are taking a mortgage so there’s no  income. You have a debt obligation you must pay back so no detriment. And you aren’t paying any interest so you can’t write that off either. 

[Gil Bang 26231]

9 hours ago, Neonmoon said:

One of them backed out due to home inspection revealing 100K of repairs needed on a 320K home. Apparently fixing & flipping is harder than HGTV makes it out to be. 

Home two blocks up from me was the worst house in town.  It literally reminded me of the house that Oliver and Lisa Douglas had in Hooterville.  

It sold for 600,000.   Flippers bought it, and did a MAJOR remodel.  Re-gabled the roof, R&R the exterior siding, new main electrical panel, added 4 or 5 mini splits,the works. 

It lists again for 1.1.   I go to see it.  The first thing I notice is that there isn't a San Diego Gas and Electric seal on the electric meter.  Which indicates that the panel was done without permits.   I ask the  agent..."Hey, y'all got permits for  all this, right?".

Uh...

Anyway, it did show nice.   It's been in escrow twice now in the last month.  I drove by Monday and say what was obviously a home inspection going on.  By Wednesday, it was back on market. 

[UTPhil2006 3930]

15 hours ago, UTPhil2006 said:

The 3% is a second lien that UWM holds with no payment or interest. 

Nuts and bolts of it are it’s up to 15k (3% of loan amount) in a second Lien as mentioned. If you are 80% of the AMI (area income limit) you only have to be a 620+ and don’t have to be a First time HB (not owning last 3 years), and if you are as low as 50% AMI there’s a 2500 credit. The kind of sweet spot of this deal is for 700+ credit and no (low) income requirements, but at least one borrower has to be a FTHB. Program is already live on UWM if anyone wants me to take a look at it for them

[Upgrayedd 5885]

10 hours ago, Gil Bang said:

Home two blocks up from me was the worst house in town.  It literally reminded me of the house that Oliver and Lisa Douglas had in Hooterville.  

It sold for 600,000.   Flippers bought it, and did a MAJOR remodel.  Re-gabled the roof, R&R the exterior siding, new main electrical panel, added 4 or 5 mini splits,the works. 

It lists again for 1.1.   I go to see it.  The first thing I notice is that there isn't a San Diego Gas and Electric seal on the electric meter.  Which indicates that the panel was done without permits.   I ask the  agent..."Hey, y'all got permits for  all this, right?".

Uh...

Anyway, it did show nice.   It's been in escrow twice now in the last month.  I drove by Monday and say what was obviously a home inspection going on.  By Wednesday, it was back on market. 

Don’t need a permit until you need an inspection.

 

Or a loan.

[Incredulity 11875]

11 hours ago, Wulaw Horn said:

I’m sure. They are taking a mortgage so there’s no  income. You have a debt obligation you must pay back so no detriment. And you aren’t paying any interest so you can’t write that off either. 

Interesting, surprising they don’t consider the value of no interest as taxable income/gift.

Also surprising someone is willing to bear the expense of that money sitting in non-interest limbo for potentially decades 

Edited May 17 by Incredulity

[Wulaw Horn 19588]

38 minutes ago, Incredulity said:

Interesting, surprising they don’t consider the value of no interest as taxable income/gift.

Also surprising someone is willing to bear the expense of that money sitting in non-interest limbo for potentially decades 

That could happen- but it's also sort of unlikely.  At 7.5% or whatever for an interest rate- he's betting a refinance happens sooner rather than later I think.  Their entire schtick is any loan you do today you will do 3 or 4 more times. I'm sure they think that's likely to be the case here. Also- value of servicing is probably greater on the other hand if its NOT refinanced out- so win/win in that sense.  It's a loss leader type program for them I'm sure, but it's not super crazy I bet.  

[Neonmoon 38130]

It mirrors the same federally funded DPA program in most states. ($ amount varies by state). Except the second lien is forgivable on state programs if you hold the loan for 15 years (but no one will). I'm assuming UWM came out with this because brokers were not allowed (or was very hard to) access the state programs due to expensive licensing restrictions. I had a broker refer me a client this past year because he couldn't do the NCHFA program. I'm assuming the $2500 program is just the Fannie Mae $2500 program.

[UTPhil2006 3930]

8 minutes ago, Neonmoon said:

It mirrors the same federally funded DPA program in most states. ($ amount varies by state). Except the second lien is forgivable on state programs if you hold the loan for 15 years (but no one will). I'm assuming UWM came out with this because brokers were not allowed (or was very hard to) access the state programs due to expensive licensing restrictions. I had a broker refer me a client this past year because he couldn't do the NCHFA program. I'm assuming the $2500 program is just the Fannie Mae $2500 program.

That and UWMs goal is more market share so makes sense in that regard too 

[Gil Bang 26231]

So, I moved from a very large brokerage to a "boutique" a while back.

The longer story is; I moved to the boutique several years ago, and then the big brokerage bought us.  After the 3 year non-compete expired, the original broker opened a new shop, and invited the OG's to join him, so I did.   

We don't have any bullshit sales meetings, mandatory bullshit, etc.  So, you don't necessarily get to know the other agents in the office.

A couple of days ago, the company admin sends out a group email; "Mary Jones" has a new listing and is out of town this week, can anybody do an open house for her?

Shit, it's a decent house at a great price-point, so I volunteer.  I think there's a chance I can sell this mofo.     Anyway, I know who "Mary Jones" is.  She's memorable, because she's fucking huge.  Like instant boner for Vic huge.  Anyway, we've been texting back and forth.  She writes "I really appreciate you doing this.  I live in Texas now and I only come back to SD to sell."

 

WTF?   I'm trying to wrap my head around an agent getting a phone call, setting an appointment for the next day or so, and wedging her ample ass in a SWA seat to meet the client.  

Anyway, these sellers are going to buy a replacement house.  She says she's showing them replacement houses today, and if they don't find something today she wants to give them to me for a 25% referral fee.   I'll take that deal. 

[tx 3 putt 78673]

@UTPhil2006 and his crew. They don’t stop helping after the paper work is filed and closed. 

Thanks for the help 

[Gil Bang 26231]

update: this house is a run-down shitpile. It will probably sell, but the inspection report will be an inch thick.

[UTPhil2006 3930]

Got down to the 4.3xx briefly. Hovering around 6 week lows 

[UT_OB1 2266]

@UTPhil2006 @Wulaw Horn and others that know Texas:

If I want to sell a home in Galveston, who is the person to do it?  We fixed a house up in 2019 and Airbnb it. Wear and tear and time for STR is too much. We had to quickly replace stuff 2 weeks ago that had blood everywhere because it looked like there was a party and a fight. 
 

We’ve had the house listed for sale for about 2.5 months via our property manager. We had it appraised just over a year ago and we’ve got no interest at the appraised value, which is 75% of the very inflated CAD value. He’s a good guy, I consider him a friend, but he’s not really doing much to try to sell it. He doesn’t have the time. I’ll have that conversation when / if I find someone 

[Gil Bang 26231]

so that referral client is purchasing the replacement home using a reverse mortgage.  This should be interesting.  I've never done a deal like this before.

[Wulaw Horn 19588]

4 hours ago, UT_OB1 said:

@UTPhil2006 @Wulaw Horn and others that know Texas:

If I want to sell a home in Galveston, who is the person to do it?  We fixed a house up in 2019 and Airbnb it. Wear and tear and time for STR is too much. We had to quickly replace stuff 2 weeks ago that had blood everywhere because it looked like there was a party and a fight. 
 

We’ve had the house listed for sale for about 2.5 months via our property manager. We had it appraised just over a year ago and we’ve got no interest at the appraised value, which is 75% of the very inflated CAD value. He’s a good guy, I consider him a friend, but he’s not really doing much to try to sell it. He doesn’t have the time. I’ll have that conversation when / if I find someone 

I’ve got a couple names. Feel free to call me at 832-557-1095 if you want to chat about it. 
 

[LCHorn 2751]

I have no idea of his professional acumen, but former Tiger Beat cover model and lead actor in “Airborne” Shane McDermott is an agent in Galveston.  
 

[Muny_Tex 315]

9 hours ago, UT_OB1 said:

@UTPhil2006 @Wulaw Horn and others that know Texas:

If I want to sell a home in Galveston, who is the person to do it?  We fixed a house up in 2019 and Airbnb it. Wear and tear and time for STR is too much. We had to quickly replace stuff 2 weeks ago that had blood everywhere because it looked like there was a party and a fight. 
 

We’ve had the house listed for sale for about 2.5 months via our property manager. We had it appraised just over a year ago and we’ve got no interest at the appraised value, which is 75% of the very inflated CAD value. He’s a good guy, I consider him a friend, but he’s not really doing much to try to sell it. He doesn’t have the time. I’ll have that conversation when / if I find someone 

Couple of things you may want to consider as part of your assessment:

1.) Comps matter a lot more than appraisals do; especially in a tepid market with quickly rising inventory.  This is further reinforced by the fact that your place is (presumably) most appealing as a 2nd home/vacation spot and/or investment property....and I think that segment is particularly slow right now all across the island.

2.) Are you beach adjacent, or more geared toward East-End/Strand area?  Your prospective buyers may have a very different profile depending on where you're located, and likely needs to be marketed accordingly.  For example, an aggressive rate buydown may be super appealing for a UTMB student/employee looking to own/occupy; whereas straight price cuts and/or pre-paid HOA dues (if applicable) may stand out more to a HOU-area family looking to buy a beach spot with cash.

3.) If you are getting showings but no offers, I'd be a lot more concerned with the effort/contribution you're getting from your agent.  But if it's just bone dry with zero interest, you're probably just not price-competitive to generate base level interest among a not-very-big buyer base,  As you know, Redfin/Zillow does a lot of the work for you if you've got a really good price, unique location, and appealing listing pictures/interior staging....if your place is worth buying, it's gonna catch eyeballs quickly on the apps before your agent really gets involved to seal to the deal.

***My .02 is based on 20+ years of visiting family in Galveston, one of whom owns 4 properties (3x rentals) there.  I also consider the entire island to generally be an irredeemable shithole (although I do enjoy the food at Mosquito Cafe), so apologies if I come across as more pessimistic than others.

 

 

 

Edited May 23 by Muny_Tex

[Neonmoon 38130]

7 hours ago, Muny_Tex said:

I also consider the entire island to generally be an irredeemable shithole

This is the correct assessment 

[LCHorn 2751]

8 hours ago, Muny_Tex said:

I also consider the entire island to generally be an irredeemable shithole

 

38 minutes ago, Neonmoon said:

This is the correct assessment 

Thirded!  The first time my sheltered young self saw actual blue water in Pensacola beach my jaw dropped.  “You mean ocean water doesn’t have to be brown and filled with tar balls?”

[UTPhil2006 3930]

20 hours ago, UT_OB1 said:

@UTPhil2006 @Wulaw Horn and others that know Texas:

If I want to sell a home in Galveston, who is the person to do it?  We fixed a house up in 2019 and Airbnb it. Wear and tear and time for STR is too much. We had to quickly replace stuff 2 weeks ago that had blood everywhere because it looked like there was a party and a fight. 
 

We’ve had the house listed for sale for about 2.5 months via our property manager. We had it appraised just over a year ago and we’ve got no interest at the appraised value, which is 75% of the very inflated CAD value. He’s a good guy, I consider him a friend, but he’s not really doing much to try to sell it. He doesn’t have the time. I’ll have that conversation when / if I find someone 

Is it still on the market? You can email me/Thad the link and I’ll take a look at it. We can help sell it. I have a couple people we’ve sold out there 

[Armybrat 41393]

 

My son’s in-laws own a 60 year old, 1,700 sq/ft house on a .35 acre lot on Lund Street overlooking the Ziker Park/ Barton Springs pool area.
They might be happy to sell it to a developer who could scrape it off and split it into six tiny lots.
It is currently valued at $1.5 million, which I think is absurd.

But this new HOME initiative being adopted by the CoA might encourage them to move forward with selling it.

How is the market in that area?

 

 

Edited May 23 by Armybrat

[Bozo_Casanova 26846]

6 minutes ago, Armybrat said:

 

My son’s in-laws own a 60 year old, 1,700 sq/ft house on a .35 acre lot on Lund Street overlooking the Ziker Park/ Barton Springs pool area.
They might be happy to sell it to a developer who could scrape it off and split it into six tiny lots.
It is currently valued at $1.5 million, which I think is absurd.

But this new HOME initiative being adopted by the CoA might encourage them to move forward with selling it.

How is the market in that area?

 

 

The market is extremely strong in that area where you could not pay me to live. 

[Armybrat 41393]

8 minutes ago, Bozo_Casanova said:

The market is extremely strong in that area where you could not pay me to live. 

Me neither, but my son would love for them to sell it so he would not keep getting calls to run the homeless out of the place and having to do the maintenance.

[Dbeasy 15585]

25 minutes ago, Armybrat said:

 

My son’s in-laws own a 60 year old, 1,700 sq/ft house on a .35 acre lot on Lund Street overlooking the Ziker Park/ Barton Springs pool area.
They might be happy to sell it to a developer who could scrape it off and split it into six tiny lots.
It is currently valued at $1.5 million, which I think is absurd.

But this new HOME initiative being adopted by the CoA might encourage them to move forward with selling it.

How is the market in that area?

 

 

This question is timely. I just listed a tear down in central Austin and I had to get thoroughly versed on the zoning situation. The property went under contract yesterday for a price over comps. The reason is that I was able to dissect both the comps and the zoning situation to maximize the selling value. It’s pretty complicated and NONE of the realtors I dealt with in the whole process had a clue. The developers themselves obviously did. 

As to the timing of sale, I’d need to look at it more closely. Now could be the perfect time, or it might be better to wait two years. That’s the simple answer. 

Edited May 23 by Dbeasy

[UTPhil2006 3930]

40 minutes ago, Armybrat said:

 

My son’s in-laws own a 60 year old, 1,700 sq/ft house on a .35 acre lot on Lund Street overlooking the Ziker Park/ Barton Springs pool area.
They might be happy to sell it to a developer who could scrape it off and split it into six tiny lots.
It is currently valued at $1.5 million, which I think is absurd.

But this new HOME initiative being adopted by the CoA might encourage them to move forward with selling it.

How is the market in that area?

 

 

 

You can DM me with specific questions/address etc 

[Wulaw Horn 19588]

4 hours ago, LCHorn said:

 

Thirded!  The first time my sheltered young self saw actual blue water in Pensacola beach my jaw dropped.  “You mean ocean water doesn’t have to be brown and filled with tar balls?”

My brother called it the gulf of yoo-hoo the first time we saw it after moving from the pacific. 

[UT_OB1 2266]

2 hours ago, UTPhil2006 said:

Is it still on the market? You can email me/Thad the link and I’ll take a look at it. We can help sell it. I have a couple people we’ve sold out there 

Thanks just got off the phone with Thad. He’s going to pull some numbers. 

[Gil Bang 26231]

I need the board's help:

An acquaintance just called me.  Her father owns a home and is in poor health.  A couple of years ago, he deeded his house over to her.  I have no idea why it was done at that time, or in that manner.  He still lives there, but isn't expected to live much longer.  She says the house is in poor condition, is in an area where she'd never consider living (desert), and she doesn't have the funds to get it in rentable condition. So, upon his death, she intends to sell. 

He bought it many years ago, for around $50,000.   Since he didn't die (yet) and the house is already deeded over, what is her basis for capital gains? 

I wish she had contacted me years ago so this could have been done in a smoother manner. 

[Neonmoon 38130]

5 hours ago, Gil Bang said:

I need the board's help:

An acquaintance just called me.  Her father owns a home and is in poor health.  A couple of years ago, he deeded his house over to her.  I have no idea why it was done at that time, or in that manner.  He still lives there, but isn't expected to live much longer.  She says the house is in poor condition, is in an area where she'd never consider living (desert), and she doesn't have the funds to get it in rentable condition. So, upon his death, she intends to sell. 

He bought it many years ago, for around $50,000.   Since he didn't die (yet) and the house is already deeded over, what is her basis for capital gains? 

I wish she had contacted me years ago so this could have been done in a smoother manner. 

From my understanding, she will owe capital gains taxes on the difference between the value when she inherits it (deeded to her) and when she sells it. I am not a tax advisor, but I did just bake some bread 

 

[Wulaw Horn 19588]

13 minutes ago, Neonmoon said:

From my understanding, she will owe capital gains taxes on the difference between the value when she inherits it (deeded to her) and when she sells it. I am not a tax advisor, but I did just bake some bread 

 

This is the answer. 

[UT_OB1 2266]

You can deed shit over as inheritance long before you die?  

Edited May 26 by UT_OB1

[LCHorn 2751]

37 minutes ago, UT_OB1 said:

You can deed shit over as inheritance long before you die?  

That’s why I declined to answer-intuitively it seems there would be some limitations on it best answered by a CPA.

[Gil Bang 26231]

46 minutes ago, UT_OB1 said:

You can deed shit over as inheritance long before you die?  

That's the rub.  

If dad croaked and THEN she got the house, I know how it plays out.  I'm thinking that this family really fucked up here, and it may cost them a lot of dough. 

 

 

[Upgrayedd 5885]

3 hours ago, Neonmoon said:

From my understanding, she will owe capital gains taxes on the difference between the value when she inherits it (deeded to her) and when she sells it. I am not a tax advisor, but I did just bake some bread 

 

Probably falls within the aggregate gifting cap.  Basis s/b when gift was made.  Also not tax,  but I did eat some bread 

Edited May 26 by Upgrayedd
None of your damn business

[BearSchlong 8238]

Does real estate conveyed upon inheritance get stepped-up cost basis, like stocks?

[Neonmoon 38130]

35 minutes ago, BearSchlong said:

Does real estate conveyed upon inheritance get stepped-up cost basis, like stocks?

Yes, but the question here is, was it considered “inherited” when deeded over or not? 

Consult your local CPA

(Looks like google says you might have to pay long term capital gains tax on selling the gift)

Edited May 26 by Neonmoon

[TwiceHorn 32074]

Her basis in the property is probably what the donor reported on their gift tax return as the value of the property.

But since that didn't happen, who knows.

[Neonmoon 38130]

There's no better feeling that sneaking in a lock before the reprice

[Wulaw Horn 19588]

47 minutes ago, Neonmoon said:

There's no better feeling that sneaking in a lock before the reprice

Which reprice for the worse- 1st or 2nd?  

Anyone know why the market is down without news 38 basis points from opening?  Is it because Neon touches himself?  That seems like as likely a reason as any until I hear otherwise.

[UTPhil2006 3930]

40 minutes ago, Wulaw Horn said:

Which reprice for the worse- 1st or 2nd?  

Anyone know why the market is down without news 38 basis points from opening?  Is it because Neon touches himself?  That seems like as likely a reason as any until I hear otherwise.

Abreu. 

[Neonmoon 38130]

4 hours ago, Wulaw Horn said:

Which reprice for the worse- 1st or 2nd?  

Anyone know why the market is down without news 38 basis points from opening?  Is it because Neon touches himself?  That seems like as likely a reason as any until I hear otherwise.

Before the 1st. 

Don’t worry, the jumbo I helped win a contract Saturday night at 8pm is ghosting me after getting under contract. To me, it’s more about the friends you make along the way 

 

[Wulaw Horn 19588]

5 hours ago, Neonmoon said:

Before the 1st. 

Don’t worry, the jumbo I helped win a contract Saturday night at 8pm is ghosting me after getting under contract. To me, it’s more about the friends you make along the way 

 

35k in commissions down the drain in similar situations the past 6 weeks. Just brutal market right now. Sorry to hear. 

[LCHorn 2751]

@Neonmoon For years when recruiters have called me my response has been "send me a list of your jumbo investors and raw pricing on a typical jumbo with 20% down, SFR, O/O, 780, and if I like it we can talk further." 

It's really the only area that, if a depository bank or credit union is in the mood, I can get beat and not do a whole hell of a lot about it.  For example, last year I lost a $1.6m or so loan, returning borrower who was quite loyal, to Navy Fed.  If I had the ability to entirely waive our YSP and have the bank make the loan for free I still would been more expensive.  On top of that we would ridden him hard about his RSU income (because the best priced investor was Citi and they are anal retentive) and Navy Fed said "no big deal, we'll do it" (note the borrower wasn't a veteran). 

[CoTex 1177]

On 5/26/2024 at 12:27 PM, TwiceHorn said:

Her basis in the property is probably what the donor reported on their gift tax return as the value of the property.

But since that didn't happen, who knows.

Disclaimer - Not a CPA,

but I think the penalty for late filing a gift tax return is based on the amount of tax due.

So, if it was a gift that didn’t trigger gift tax … no tax was due and one could now file a late gift tax return, without penalty.

Then, springboard off that sumbitch right into a basis equal to the value of the date of the gift, which probably should match the date of the deed.

Et Voila!