All Encompassing Mortgage and Real Estate Thread

[LarryTT 26]

5 hours ago, BradInATX said:

We have friends who just sold in Crestview. They had an open house the first Saturday and had 6+ offers before the end of that day, most being over asking price. You'll be in good shape if your house is modern.

I can confirm the Tucson market is the same. Been looking for a couple of months here to buy and if you aren't first, you're last. Starting to get a little frustrating with cash in hand.... may have to revisit the $Stonk thread....

[UTPhil2006 3930]

1 hour ago, LarryTT said:

I can confirm the Tucson market is the same. Been looking for a couple of months here to buy and if you aren't first, you're last. Starting to get a little frustrating with cash in hand.... may have to revisit the $Stonk thread....

Or the Gambling forum

[TKthunder2 5059]

5 hours ago, Dbeasy said:

cedar park/leander

Good this is where I’ll be selling.

[TKthunder2 5059]

DP

Edited August 10, 2020 by TKthunder2

[royiv 9777]

3 hours ago, LarryTT said:

I can confirm the Tucson market is the same. Been looking for a couple of months here to buy and if you aren't first, you're last. Starting to get a little frustrating with cash in hand.... may have to revisit the $Stonk thread....

Arizona is one of the most cyclical markets in the country, second only to Vegas/Nevada. Why would you be looking to buy at the absolute top of the cycle? Give it six months or a year and buy at the next crash.

[LarryTT 26]

1 hour ago, royiv said:

Arizona is one of the most cyclical markets in the country, second only to Vegas/Nevada. Why would you be looking to buy at the absolute top of the cycle? Give it six months or a year and buy at the next crash.

Retired and pussy

 

 

 

And in the 5 years I've been coming here there hasn't been much of a cycle, but yeah I get it. That's part of the reason of renting for months, looking for some sort of bargain. 

Edited August 11, 2020 by LarryTT

[royiv 9777]

32 minutes ago, LarryTT said:

Retired and pussy

 

 

 

And in the 5 years I've been coming here there hasn't been much of a cycle, but yeah I get it. That's part of the reason of renting for months, looking for some sort of bargain. 

Just wait. It's coming. Lived in AZ for 17 years and went through two big down cycles. Made good money buying low-ish and selling high-ish (sold last year and moved to TX - could have held and sold this year, but don't like timing market) and making good money both times. Know too many people who have lost their shirts in the RE market. Now is not a buyer's market in AZ, but it's coming.

[UTPhil2006 3930]

On 8/8/2020 at 5:53 PM, Knoxtnhorn said:

My bi-yearly post to state that @UTPhil2006 was amazing in our house buying venture a little over 3 years ago.

@Gil Bang also helped us quite a bit before moving from Knoxville back to DFW.

Thanks bud!  Glad to have helped you and your brother so far

[Incredulity 11874]

On 8/10/2020 at 7:14 PM, royiv said:

Just wait. It's coming. Lived in AZ for 17 years and went through two big down cycles. Made good money buying low-ish and selling high-ish (sold last year and moved to TX - could have held and sold this year, but don't like timing market) and making good money both times. Know too many people who have lost their shirts in the RE market. Now is not a buyer's market in AZ, but it's coming.

 

Keep me posted, because I am pretty much over this whole winter...thing.

[LarryTT 26]

4 hours ago, Incredulity said:

 

Keep me posted, because I am pretty much over this whole winter...thing.

After writing what I did yesterday, we are now scheduled to close on a Sante Fe style house, in a cul de sac on a hill, large back yard facing Mt. Lemmon so I get to see the winter snow caps, no back neighbors, 3 car garage, 1500 sq feet. Clicked every box we had plus a couple of bonuses. This will be my last home. We were 4th offer (3rd cash offer) after 4 hours of listing being up. I'm thrilled. ( oh and 2 week closing)

Edited August 12, 2020 by LarryTT

[TKthunder2 5059]

Anyone in here know the difference between an ETJ and an LTD in Austin? I googled it but need someone to explain it to me like I’m a know nothing dipshit.

Edited August 13, 2020 by TKthunder2

[CBT 1290]

Anybody with experience owner financing single family? I'm curious about putting in a prepayment penalty. All of my previous deals I wasn't worried about the buyer paying it off early (or at all), so I didn't explore any prepayment clause. But I situation where the buyer could probably qualify for conventional lending, but I don't want to worry about a potential tax hit.  I'm wondering if it's a simple addition to the contract, if there is anything I need to worry about, etc.

[UTPhil2006 3930]

Thanks Bin Laden..

Quote

FHFA Drops a Bomb; Your Refi Just Got Much More Expensive!

Decrease Font SizeTextIncrease Font Size

Aug 12 2020, 9:04PM

In what can only be described as a cash grab, Fannie and Freddie's regulator just announced a new tax on refinances.  Granted, it's not technically a tax, and it wasn't probably even intended to hit the pocketbooks of the American homeowner, but that's unfortunately exactly what it will do.  Let's break it down...

What was announced?

The FHFA, Fannie and Freddie's regulator, is implementing a new price adjustment for all refinance transactions of 0.5% of the loan amount (i.e. $1500 on a $300k loan).  This applies to loans delivered to Fannie/Freddie in September and thereafter, which is almost all of them that aren't already well underway.

 

[Gil Bang 26230]

Anybody with experience owner financing single family? I'm curious about putting in a prepayment penalty. All of my previous deals I wasn't worried about the buyer paying it off early (or at all), so I didn't explore any prepayment clause. But I situation where the buyer could probably qualify for conventional lending, but I don't want to worry about a potential tax hit.  I'm wondering if it's a simple addition to the contract, if there is anything I need to worry about, etc.

A lot of the folks out here that used to carry back paper won’t anymore.

PACE loans are a superlien. If the buyer decides to go apeshit with new windows, solar, shit like that, you can be behind a very big lien that changes the risk level for you

[Wulaw Horn 19580]

3 hours ago, UTPhil2006 said:

Thanks Bin Laden..

 

You think this is forever or just for now?  Honestly, it sucks of course for us in the business as it will cut into yields some likely, but it shouldn’t be more than an 1/8 to the borrower you think?

ive seen a couple lenders say no more cash out hit and they are going to meet originators in the middle with eating half the cost of the deal and half will come out of the yield. 
This is such a ridiculous time of plenty that if they use the money to shore up the system I’m ok with that- as long as my hope would be that this goes away eventually. 

[LCHorn 2751]

Nothing is forever but I doubt it's going away soon. 

I swear, what money the mortgage industry spends on lobbying is just an absolute waste.  If I ran this shit I'd have been depositing $50K monthly into an offshore account in Calabria's name. 

[BabaYaga 15623]

It's absurd.  the 50-basis point price change that Fannie and Freddie instituted due to "higher risk and costs" (on refis, not purchases)....Freddie earned $1.8 billion last quarter and Fannie earned $2.5 billion.  Seen the whole spectrum of reasons:  to recapitalize the GSEs, to capture some of the great margins being enjoyed by originators, to balance out some of the cash window pricing gains seen in recent weeks, or the continued shift in discouraging certain types of products.

The Pres of the MBA isn't happy either:  It will first cost lenders hundreds of millions of dollars as the bulk of your enormous locked pipelines cannot be closed and delivered by the end of August, and it will, starting today, cost consumers billions in the midst of a pandemic when the administration claims to be working to get relief and stimulus to the struggling economy.

We have issued a blunt statement calling on FHFA to withdraw this directive, and I have given several press interviews, including to the Wall Street Journal, which quoted me: 'For the GSEs to add a 50-basis point surcharge on refinances when the nation is struggling with the greatest economic downturn since the Great Depression is outrageous.'  

 

 

[UTPhil2006 3930]

Seems like not a single one of our AE's knew.  Would have been nice to at least lock in floated ones.

[Chewbacca 7829]

A lot of the folks out here that used to carry back paper won’t anymore.

PACE loans are a superlien. If the buyer decides to go apeshit with new windows, solar, shit like that, you can be behind a very big lien that changes the risk level for you

Wouldn't that require a subordination of the primary?

[Hefeweizen 5443]

20 hours ago, TKthunder2 said:

Anyone in here know the difference between an ETJ and an LTD in Austin? I googled it but need someone to explain it to me like I’m a know nothing dipshit.

ETJ  is extra territorial jurisdiction.  No city taxes or services.  No zoning.  No building permits.  You might need a driveway permit depending on your location, and whether you’re on a private street.

 

Limited purpose still has no taxes, but there is zoning.  So you’re subject to a lot of the city rules.  I am petty sure no city taxes though, but someone correct me if I’m wrong.

[Gil Bang 26230]

Wouldn't that require a subordination of the primary?

Nope. It goes straight to the property tax bill. No subordination necessary. Should you foreclose, the PACE loan remains in place and you have to eat it or pass it along to the buyer.

In my experience, the PACE contractors use no lube at all. For a $5000 window job they charge 15,000. For a $10,000 solar job they charge 30,000. They prey upon the most vulnerable and dumbest members of society.

I’ve seen quite a few folks the thought they were doing a wonderful thing by upgrading their home, and a year later they couldn’t afford the property tax bill anymore and had to sell.

[UT_OB1 2266]

4 hours ago, Gil Bang said:

A lot of the folks out here that used to carry back paper won’t anymore.

PACE loans are a superlien. If the buyer decides to go apeshit with new windows, solar, shit like that, you can be behind a very big lien that changes the risk level for you

Can the owner/seller financer  put any language in the contract requiring they must approve all modifications / improvements over X dollars to protect themselves?

[Wulaw Horn 19580]

4 hours ago, UTPhil2006 said:

Seems like not a single one of our AE's knew.  Would have been nice to at least lock in floated ones.

I had one AE say something after business yesterday. 
I’ve got 5 or 6 I haven’t locked yet- for various reasons and will probably eat it on my end. So, $10k up in smoke overnight. What’s more concerning is lock extensions are going to get really pricey. Damn. 

[Wulaw Horn 19580]

44 minutes ago, Gil Bang said:

Nope. It goes straight to the property tax bill. No subordination necessary. Should you foreclose, the PACE loan remains in place and you have to eat it or pass it along to the buyer.

In my experience, the PACE contractors use no lube at all. For a $5000 window job they charge 15,000. For a $10,000 solar job they charge 30,000. They prey upon the most vulnerable and dumbest members of society.

I’ve seen quite a few folks the thought they were doing a wonderful thing by upgrading their home, and a year later they couldn’t afford the property tax bill anymore and had to sell.

Yessir. And I had a couple guys do that- didn’t get value they put in so then couldn’t refinance 

[UTGrad98 2332]

Average daily rate on a 30 year just jumped from 2.92 yesterday to 3.08 today and up from an all time low of 2.81 just 3 days ago. Never seem a jump like that before. Is it because of this new refi tax thing or something different.

[Gil Bang 26230]

46 minutes ago, UT_OB1 said:

Can the owner/seller financer  put any language in the contract requiring they must approve all modifications / improvements over X dollars to protect themselves?

Sure you can. 

 

 

It won't mean shit, but you can put it in there.  And when you happen to drive by the house and see new windows and solar panels, what is your recourse?  Are you gonna foreclose? 
You're fucked either way.  

[UTPhil2006 3930]

25 minutes ago, UTGrad98 said:

Average daily rate on a 30 year just jumped from 2.92 yesterday to 3.08 today and up from an all time low of 2.81 just 3 days ago. Never seem a jump like that before. Is it because of this new refi tax thing or something different.

The refi thing getting passed through to the customer yep. 

[Wulaw Horn 19580]

22 hours ago, UTPhil2006 said:

The refi thing getting passed through to the customer yep. 

And market took a bit of a shit on itself the other day too. That didn’t help. 

[3adays 454]

Can anyone recommend a real estate attorney in Austin? I’m selling a home and want counsel to review my TREC seller’s disclosure form. 

[hornian 5291]

4 hours ago, 3adays said:

Can anyone recommend a real estate attorney in Austin? I’m selling a home and want counsel to review my TREC seller’s disclosure form. 

Yes. PM me. 

[UTPhil2006 3930]

6 hours ago, 3adays said:

Can anyone recommend a real estate attorney in Austin? I’m selling a home and want counsel to review my TREC seller’s disclosure form. 

The guy above would be my recommendation 

[3adays 454]

2 hours ago, hornian said:

Yes. PM me. 

PM Sent.

[UTPhil2006 3930]

On 8/14/2020 at 6:53 PM, Wulaw Horn said:

And market took a bit of a shit on itself the other day too. That didn’t help. 

Yeah we could use more days like Friday and today.  Try and at least recover the market side of things.

[Wulaw Horn 19580]

On 8/15/2020 at 11:19 AM, hornian said:

Yes. PM me. 

Didn’t realize you did anything beyond divorce/family law. I am a half assed real estate guy but not comfortable doing much beyond drawing simple docs. You mind if I bounce a referral or two a year off you with people looking to go to war?  Or are you not that guy either? 

[hornian 5291]

1 hour ago, Wulaw Horn said:

Didn’t realize you did anything beyond divorce/family law. I am a half assed real estate guy but not comfortable doing much beyond drawing simple docs. You mind if I bounce a referral or two a year off you with people looking to go to war?  Or are you not that guy either? 

I actually don’t. But I have a referral in Austin for an attorney who handled a commercial real estate transaction for my law partners and me last year who I was impressed by. Just didn’t want to put my full name in the thread and I doubt that attorney would know who the hell “hornian” is when the poster listed the referral source. 

[harpercollins 394]

I'm considering purchasing undeveloped land for my school from one of our parents. Great location, and I think I could get a good price. How do I go about pricing water, sewer, streets, etc? Who do I even call for something like this? I don't want to necessarily get in bed with a builder when that's probably 5-7 years away, but I need to get some idea of what the land will ultimately cost. 

What kind of rates would you think I'd be looking at for owner financing? 

[TKthunder2 5059]

So we closed on our new house yesterday so I’ll elaborate on why we went with this on over the other if anyone cared.

On house #1 we were the contingent offer and the original buyers backed out after extending their option period for 2+ weeks once they found a crack in the septic tank.  They had an estimate that to repair it that it would take at least $40k because that area is over the aquifer and while not fully in the city is an LTD so Austin requires this top of the line system.

The seller, now super freaked out because the property, which was vacant and professionally staged and getting regular yard service, was going to have to re-list, re-clean by maids, and likely have to pay multiple mortgage payments while hoping for new buyer that know the septic was fucked, or have it repaired which sounds like it will take nearly 4 months due to permits and the limited availability of these top of the line tanks.  Their realtor called up ours and explained everything on the same day our offer was accepted on house #2.

We were able to afford both properties, and had approval for the largest non-jumbo mortgage and cash to cover the rest, plus when we sold our current home the equity in it was 100% going to renovations since we are planning on staying in this area for more than 10 years (hopefully).  Our plans for house #1 were extremely ambitious (compared to house #2) and would add nearly 1000 sqft to the property which would have required us to increase the septics size anyways.  In addition, as this house was a 2 story it made it easier for us to live at the property while construction was going on compared to house #2 which was a single story (which was a huge plus for us in the big picture but would have been a major headache during a renovation).

The seller of house #1 was extremely motivated and before we even started negotiating terms offered to pay $40k towards the new septic (which again, we would have had to do anyways, so it was very lucky for us that this happened since we would have never guessed a new septic system was that fucking expensive).  We also saw that the roof was over 15 years old and they had some pretty major electrical issues so we asked for an additional $15k to cover those which she quickly accepted and we offered to close in 3 weeks in return (though the title company couldn’t do it on Friday so we closed Monday).

[Storm the Field 5366]

On 8/10/2020 at 11:53 AM, Storm the Field said:

 Listed Thursday morning, got an offer that evening. Went under contract yesterday afternoon.

Welp, first buyer backed out towards very end of the option period this past weekend. Went back on market Tuesday, a new offer came in Wednesday and we're back under contract. Let's hope Round 2 goes better.

[hornian 5291]

On 8/18/2020 at 9:30 PM, TKthunder2 said:

So we closed on our new house yesterday so I’ll elaborate on why we went with this on over the other if anyone cared.

On house #1 we were the contingent offer and the original buyers backed out after extending their option period for 2+ weeks once they found a crack in the septic tank.  They had an estimate that to repair it that it would take at least $40k because that area is over the aquifer and while not fully in the city is an LTD so Austin requires this top of the line system.

The seller, now super freaked out because the property, which was vacant and professionally staged and getting regular yard service, was going to have to re-list, re-clean by maids, and likely have to pay multiple mortgage payments while hoping for new buyer that know the septic was fucked, or have it repaired which sounds like it will take nearly 4 months due to permits and the limited availability of these top of the line tanks.  Their realtor called up ours and explained everything on the same day our offer was accepted on house #2.

We were able to afford both properties, and had approval for the largest non-jumbo mortgage and cash to cover the rest, plus when we sold our current home the equity in it was 100% going to renovations since we are planning on staying in this area for more than 10 years (hopefully).  Our plans for house #1 were extremely ambitious (compared to house #2) and would add nearly 1000 sqft to the property which would have required us to increase the septics size anyways.  In addition, as this house was a 2 story it made it easier for us to live at the property while construction was going on compared to house #2 which was a single story (which was a huge plus for us in the big picture but would have been a major headache during a renovation).

The seller of house #1 was extremely motivated and before we even started negotiating terms offered to pay $40k towards the new septic (which again, we would have had to do anyways, so it was very lucky for us that this happened since we would have never guessed a new septic system was that fucking expensive).  We also saw that the roof was over 15 years old and they had some pretty major electrical issues so we asked for an additional $15k to cover those which she quickly accepted and we offered to close in 3 weeks in return (though the title company couldn’t do it on Friday so we closed Monday).

Having looked at renovating house #2 myself for a while (had a contract ready to go with builder when we found house we moved to and wound up selling), I’m curious what your plans were to renovate?

[Incredulity 11874]

On 8/18/2020 at 7:18 PM, harpercollins said:

I'm considering purchasing undeveloped land for my school from one of our parents. Great location, and I think I could get a good price. How do I go about pricing water, sewer, streets, etc? Who do I even call for something like this? I don't want to necessarily get in bed with a builder when that's probably 5-7 years away, but I need to get some idea of what the land will ultimately cost. 

What kind of rates would you think I'd be looking at for owner financing? 

Will be tough to bullseye without a significant amount of local knowledge for development standards. There might be a local developer you could coax some info out of for a fee or maybe a couple beers.

 

You could also the try the city(assuming you are in a city) for system development  and other fees associated with utilities and road construction standards.  In my experience those people are normally really adept at withholding key information through either ignorance or malice.

[APMP 688]

Full asking within 72 hours of listing. Austin market as advertised.

[Murfdogg21 4563]

1 hour ago, hornian said:

Having looked at renovating house #2 myself for a while (had a contract ready to go with builder when we found house we moved to and wound up selling), I’m curious what your plans were to renovate?

First step was replacing all the toilet seats and removing the mirror from the ceiling in the master. 

[TKthunder2 5059]

3 hours ago, hornian said:

Having looked at renovating house #2 myself for a while (had a contract ready to go with builder when we found house we moved to and wound up selling), I’m curious what your plans were to renovate?

We actually had a general contractor walk through it with us and have some really rough drawings somewhere around here, but IIRC....

Expand the master into the courtyard space between the sun room/master and put in a walk-in closet.

Remove closet from bathroom area and make that whole area a newly remodeled large master bath.

Tear down the wall, add real windows and air condition the sun room to make a new dining room.

Redesign/remodel the kitchen footprint  into current dining (removing walls if possible but didn’t get that in depth).

Turn second living area into an office and remodel laundry moving door to face old dining.

Was told it would “very roughly” cost about $140k and we’d have to increase electric and likely do a dual zone AC on top of that.

[TKthunder2 5059]

On 8/10/2020 at 11:50 AM, Dbeasy said:

cedar park/leander

https://communityimpact.com/austin/cedar-park-leander/housing-real-estate/2020/08/20/home-prices-jump-in-july-across-cedar-park-leander/

[hornian 5291]

8 hours ago, TKthunder2 said:

We actually had a general contractor walk through it with us and have some really rough drawings somewhere around here, but IIRC....

Expand the master into the courtyard space between the sun room/master and put in a walk-in closet.

Remove closet from bathroom area and make that whole area a newly remodeled large master bath.

Tear down the wall, add real windows and air condition the sun room to make a new dining room.

Redesign/remodel the kitchen footprint  into current dining (removing walls if possible but didn’t get that in depth).

Turn second living area into an office and remodel laundry moving door to face old dining.

Was told it would “very roughly” cost about $140k and we’d have to increase electric and likely do a dual zone AC on top of that.

Interesting ideas. We had lots of similar ones, but didn’t want to pour any new foundation or change roofline.
 

We were going to enclose the back patio, open up kitchen to current dining, enclose from porch and make current foyer into - 4th bedroom (and expand back bedrooms bathroom and jack and Jill it with the new bedroom), move the entrance over to middle of house and add an office in the 2nd living. Quote was around $110k for that. And we were going to have to add at least a minisplit if not a full 2nd AC on top of that. We had a contract from builder and a start date lined up. 

And then we moved to be a block away from family down in 78731 when the house we bought popped up. 

[ZB'Tejas 597]

Chip and Jo would do all that work for $36k

My wife and I have been talking about concerting the garage to a family room and flipping my kitchen to face that direction. Would allow us to open a room with sliders to the backyard and pool. Have not started any planning wrt cost but a little scared of that price.

I still have PTSD from the cost of redoing by backyard in my old neighborhood in the hills.


Sent from my iPhone using Tapatalk

[Sbbruin 22142]

For you Houston folks, CRE pwerhouse legend Gerald Hines passes away at 95.  Hines had/has a number of major holdings out here.  

[hornbri 1508]

On 8/21/2020 at 2:02 PM, Storm the Field said:

Welp, first buyer backed out towards very end of the option period this past weekend. Went back on market Tuesday, a new offer came in Wednesday and we're back under contract. Let's hope Round 2 goes better.

I am hoping for this at a place we are looking at, we are the backup offer on a house on LBJ. Hopefully the first buyers back out of that deal. 

[Armybrat 41391]

Brother closed on his new house in Georgetown and moved in a week ago.

His old house in Austin near Mount Bonnell sold a week after listing - he entertained a bidding war that got him $21k over asking.

surprisingly, he upsized by 1,200 sq/ft.

 

[UTPhil2006 3930]

On 8/13/2020 at 2:28 PM, Wulaw Horn said:

You think this is forever or just for now?  Honestly, it sucks of course for us in the business as it will cut into yields some likely, but it shouldn’t be more than an 1/8 to the borrower you think?

ive seen a couple lenders say no more cash out hit and they are going to meet originators in the middle with eating half the cost of the deal and half will come out of the yield. 
This is such a ridiculous time of plenty that if they use the money to shore up the system I’m ok with that- as long as my hope would be that this goes away eventually. 

The .5 "Refi tax" has been delayed until Dec 1st now.  Most lender's have priced this back in as of this morning.