Video Closed Captioning:
good morning good afternoon good evening
folks as promised in the daily financial
news this morning we are bringing you
some brand new content with some folks
who i’ve interacted with over the past
but uh now we’re going to be bringing
you some value both dustin and jonathan
how you guys doing today
good how are you guys doing good
awesome well why don’t you guys
introduce yourself first maybe dustin
you go first jonathan you go next then
we’ll get into this dustin uh introduce
yourself to one rental at a time i uh my
name’s dustin rosenberg i’ve
been in the industry for about
10 11 years now
and uh
i
started me and john bow started convoy
home loans at the beginning of 2021. oh
very cool
and uh my name is jonathan you um you
know i’ve have maybe eight years i’m a
little younger than dustin in the
industry but um you know obviously age i
think
experience goes beyond age so that’s
where i’m at right now and uh and i’m
really happy to kind of have that put
together
very very very cool guys thank you for
reaching out i know we’ve crossed paths
there in this in the central valley so
uh thank you for reaching out love to
bring you to the channel uh so first
launching a small business uh 2021 uh
what the hell are you guys thinking
you know it was definitely a scary time
we
you know
i think given both of our 10 years in
the industry and experience we we just
felt that it was time to start working
for not somebody else but for us yeah
yeah
yeah pretty cool
very cool well so every business starts
with a mission you gotta have your
mission statement kind of your target
customer so i think they call that your
avatar uh tell us about your avatar uh
for conv convey convoy sorry all good um
we we are um our specialty and our focus
is in investment real estate for um you
know a lot of our higher net worth
investor clients and also you know new
investors and also um you know kind of
in luxury real estate as well um so
we’re kind of kind of building our uh
our nest there if you will um and making
sure that you know a lot of investors
are kind of under
um appreciated in the market especially
in the mortgage industry where fannie
mae and freddie mac continuously hit
investors for having investment
properties and for investing so we
wanted to change that so we made sure to
make relationships with different
lenders and kind of build a bridge
between the gap for investors and then
also the lenders to make sure that
investors get the best programs on the
market without having to sacrifice
obviously tax benefits and whatnot all
right very cool why don’t we give them
an example give them an example of a
program uh for investors orion i think i
think we talked originally about a
40-year i o do i remember that right
yeah exactly
yeah no that’s correct so
you know
with the amount of time we’ve been in
the industry
it’s always been uh and i don’t want to
in terms of make it sound like i’m not
up for a difficult
uh job here let me just exit that out
that’s all right
[Music]
okay sorry about that yeah so
in the past and you can ask anybody
that’s bought an investment property
you would have to provide tax returns
profit and loss balance sheets real
estate owned audited cpa letters
your son’s blood
you know everything under the sun and
in terms of getting qualified for an
investment property they just made it
fannie mae did i mean it’s so hard to
qualify
when in reality you know our our opinion
is that
it’s similar to
more of a commercial
approach common sense kind of lending
because when you’re buying an investment
property
the property itself is the one that’s
going to be making the payment right you
care about that property you know if the
client forecloses
can the property pay the payment
on a primary residence you know we get
it you’re going to have to provide
tax returns w2s pay stubs et cetera
because
that homeowner’s the ones paying it
there’s no income coming off that
primary residence
so we’ve made relationships with a lot
of different investors and lenders that
essentially
require no income
no tax returns
no 1099s no w-2s etc we’re going to look
at the property itself the property is a
good investment and it can kind of cash
flow positively
it’s kind of crazy doesn’t even have to
cash flow positively and we can still
get you the keys okay uh we’ll be able
to get you a loan
that is very favorable if not better
than what you could get if you go with
fannie mae and provide tax returns
this is pretty new on the market i want
to say it was really rolled out at like
the end of 2020 and kind of went hand in
hand and why we started at the beginning
of 2021 we saw this opportunity
but one of the unique products that you
can get with these investor programs
that i just went over is a 40-year
interest only now it’s a little
misleading it’s not interest-only for
the entire 40 years sure it’s interest
only for the first 10 years
and after that it’s followed by your
regular i’ll call it boring 30-year fix
if you will okay
so what it allows for is for the
investors especially if you’re a
first-time investor
to really cash flow positively in those
first 10 years you know you’re still
holding on to the property
still retaining the equity and the
appreciation that it’s getting but that
cash flow month on month cash flow that
you’re able to get
in those first 10 years is obviously
much more increased and i’d say probably
what 90 percent of our clients on
investment properties are taking
advantage of that so let me let me just
i love i i love this let me just kind of
repeat back what i think i heard and you
tell me where i’m right or wrong it’s
cool yep sounds good so i wanna i’m
gonna buy a million dollar property uh
whatever it is investment
whatever the unit count doesn’t matter
uh or let’s say i want to borrow a
million dollars that makes it easier
right okay so so i’m borrowing a million
dollars
so for the first 10 years i’m going to
pay some fixed interest only
payment that’s correct correct then 10
years from today which would be february
3rd 2032
okay a 30-year am takes over
correct so far that’s kind of what i
heard now the question’s coming
does the rate change right whatever
interest only rate i was paying today
i’m gonna say five percent we’ll talk
about that next does it reset in ten
years to with the prevailing rate or am
i locked in at five five percent
interest
from 2022 where does that what is what
happens it’s the the fixed part comes in
there so it’s the same rate the entire
way so the only thing i’m going to say
that again all 40 years
the rate so you could lock me in on an
investment property for 40 years at
we’ll get to the rate next but
that’s i want to make sure i heard that
right correct so it’s fixed for
bananas so the only thing that changes
on year 11
is principal kicks in yeah payment uh
what would that be payment six no 121.
121st payment is the principle that’s it
rate stays the same term stays the same
nothing changes
that is nuts because you’ve had 10 years
of inflation
exactly in rents right taxes up a little
bit insurance up but you’ve had 10 years
of inflation that’s bananas yep all
right so now that now the million dollar
question prevailing rates today
i don’t know we’ll call them four and a
quarter for investors
i’m guessing this is higher probably
i’m going to just wild ass guess it here
high fives
so here’s the here’s the kicker is um
because we have such an expansive
product base and a list of lenders that
we’ve built such a great relationship
with um
the flow rate right now as of february
3rd yeah 2022
is um actually
3.625
shut up is the lowest rate we can get to
and obviously it’ll be with be with
points and whatever but it’s the lowest
rate which you’re locked in for 40 years
so a lot of our clients are taking the
lowest rate possible because it doesn’t
make sense not to right you’re fixed for
four years you’re hedged against rate
increases or anything yeah um yeah but
that’s i mean that’s the floor rate um
and kind of where a lot of our clients
want to be and so this this is going to
be fun so flow rate means
you know
a lot of skin in the game right good
down payment
um probably decent credit gets you a
little lower going to pay points how
many points am i buying to get down to
that crazy that’s a that’s a ridiculous
floor rate exactly
i mean it can be you know you fit in the
right bucket for example i’ll just give
you a quick snare let’s say
25 down not even that crazy oh yeah
that’s not bad i expected more okay yeah
on a purchase two unit property you’re
probably paying one point to get to
three point six yeah crazy
oh wow i expected two and a half or
three okay
all right so uh i already know there’s a
lot of viewers right now that are going
to be wanting to reach out so let’s just
get it out of the way how do you want
them to reach out
i think what would be best you can go to
our website as well at
convoyhomeloans.com
i’m sure you can find a link for us at
the bottom sure we email both
john and i goes to the same email it’s
private client at convoyhomeloans.com
private client at convoyhomes.com
home loans uh home loans thank you see
that’s why i asked home loans dot com
very cool all right so uh 40-year i o
uh so let’s just let’s just round it to
four percent right yeah that’s still
so again i bring you again it could be a
duplex it doesn’t even have to be
commercial
right anything one to four yeah oh it’s
only one to four okay see i’m glad i
asked so okay one to four unit
is there a floor on a loan amount like
hey we don’t do loans under 100 grand
it’s technically depending on the lender
um but the majority of our lenders say
- okay that’s fine that’s that’s a
four plex that’s okay that’s good yeah
all right i’m trying to think of
anything else that uh that might be out
there are you gonna you’re gonna impound
probably taxes insurance all that stuff
you don’t have to yeah oh well you want
to you don’t have to wow yeah
um
this is crazy okay uh i’m that’s this is
amazing so again four percent for it for
40 years i can have a four percent loan
on a duplex for 40 years
right
and this is in the same time i’m sure
your viewers have also seen it and
you’ve seen it in the news but fannie
mae and freddie mac for non-owner
occupied homes they’re they’re rolling
out these new adjustments that they
tried previously and now they’re roll it
back out
it’s already taking hit right how high
balanced loans non-owner-occupied homes
they don’t want them basically no they
don’t they’ve whacked them i forget what
the numbers were they wanted to get them
to like 12 percent they’re running at 17
or something like that yeah they’re
it’s not quite as bad as 2010 where
investors were like don’t come here we
don’t want to but it’s starting to feel
like that they’re like
yeah so
which is funny because um you know the
the the backing of a lot of these
programs the 40-year i o program and
cash flow program that we’re talking
about you know they’re big institutional
banks that are you know buying these
loans so it’s not like there are um
subprime mortgages that are not backed
and you know kind of traded
weirdly it’s not like that at all it’s
you know big backers like you know
goldman and all these people that are
institutional they’re buying these loans
and they’re actually performing better
than you know normal conventional fha va
loans because the idea again is if you
have an investment property you buy it
to cash flow you don’t buy it to lose
money on it right so that’s kind of you
know the main focus and why it makes so
much sense for investors um at this day
and age to kind of take advantage of a
program like this wow yeah so uh
obviously the fed is raising rates or at
least they’ve they’ve talked like
they’re going to we’ve seen
uh investment loans the kind of
traditional one through tens already
ratcheted up we’ve seen other non-qm
lenders
raise their floor rates if you will
um
it has to happen right if rates go up
rate again these
it has to happen right the flow rate
won’t always be whatever it was 3.62
again if the fed raises
correct now i personally believe in we
you know you probably have seen this
song and dance a bunch of times now oh
yeah what’s nice is obviously a lot of
lenders get ahead of what the feds are
going to do and those are baked into the
rate sheets right now sure or the march
increase of course um but of course what
you said is one hundred percent correct
you know that’s why we’re seeing such a
high influx of yeah notifications
because everybody knows i mean it’s on
the news every single day no right
exactly and it there’s no end in sight
unless
knock on wood we have you know another
global pandemic hit yeah no
yeah so is this i guess one thing i
didn’t ask is this only for purchase or
could we do a refi cash out refi
a lot of our clients right now like to
put it into perspective you know there a
lot of them are like they might be
private client with like bank bank of
america or chase even they are
refinancing out of the loans that they
just got into yeah of course to lock
into a 40-year fix just because the cash
flow is just so ridiculous yeah so again
this is residential so if somebody had
an apartment building cap plan
that’s not neces we can go up to 29
units but we can have that conversation
with that okay so that’s good to know 29
units okay yeah yeah
i’ve never heard i’ve heard four i’ve
heard 13
29 seems like a really odd number to
pick is there any rhyme or reason
that was just kind of the back and forth
ping pong game we played with some of
our investors okay all right well there
you go all right
29 okay so not 30 but 29. yeah that’s
good okay all right uh and then you also
talked earlier in your intro about
luxury real estate so define that is
that a price point a zip code what does
luxury real estate mean
i’d say so yeah i i i um
it’s always been hard because we’re
mortgage brokers of course right so we
have
over 100 different lenders and programs
that we have access to but a lot of the
times brokers are kind of in a way
at a disadvantage to the big retail
banks you know wells fargo bank america
etc
but the proponents that we’ve been able
to figure out that can make us
competitive is how we’re able to get
luxury real estate
financing done
for the client that doesn’t have 10
million dollars parked at wells fargo
have a little bit easier restrictions on
loan to value
debt to income
income qualifications using bank
statements or assets that you can’t go
to wells fargo and get that job done so
you found a little niche there we’ve
done a couple just in the past month
that we’re pretty proud of that you can
find on our review pages and instagram
and stuff like that if you want to check
it out very cool so what what else right
again one rental at a time obviously is
oriented to people buying investment
properties we are doing some house
hacking and whatnot so all good what
what else what what else you want to
tease folks with because again 40 years
10 years of io fix for 40s
bananas so that’s going to be very cool
what else you want to talk about
there was you know what it’s kind of
a coincidence i spoke with
you know we speak with clients how many
clients a dad i don’t know to be honest
with you but i had a pretty good
conversation with a pretty high net
worth
client yesterday about this
interest-only product and
he
he brought up the point that
anybody that’s telling me no on an
interest-only product doesn’t know what
they’re doing because i can make the
argument and i backed it with him
that
making a payment towards the principal
on your mortgage if you’re an investor
okay it’s a different scenario if you
you know want to retire and pay your
single family home off right
but if you’re an investor
let’s just give an example you know over
10 years let’s say you’re going to pay
a hundred grand towards the principal
yeah you’re planning to sell the home
your investment property in 10 years
okay
all you’re going to get back
if you decided to go with a 30-year fix
instead of a 40-year interest only is an
extra 100 grand when you sell the home
in 10 years right i don’t need to tell
anybody here that’s watching the show
that a hundred grand
now
is worth more than a hundred grand in
ten years yeah no yeah
so what you can do over that ten year
period with a hundred grand
for these investors what buy two or
three more properties
yeah or just pick up a dog right you you
yeah
yeah yeah you’re gonna have three or
four
bad years i mean one of the things
that’s probably coming in my opinion is
there’s a lot of frustrated landlords
older landlords that maybe haven’t done
a lot of rent increases and take care of
the property in the last five or six
years a lot of those
are heavy lifts
if you could get io periods even even
for five years let alone 10 where you
could sort of get through the transition
because i’ve done it before you’re going
to have at least two transitions you
never go from what you have to where you
got with tenants you there’s this middle
jump
it’s it’s heavy so having having that
time where
i don’t know what it is and extra
percentages that you can keep because
you’re not paying principal it’s helpful
it all helps in the beginning it all
helps and then the beauty of the program
too we’ve kind of come to a like a
negotiation period with the the lenders
and investors that we have some of them
will allow for if you really wanted to
pay principal in the 10-year period you
can pay up to 20 of the principal
balance on an annual basis without
triggering any prepayment penalties yeah
so in a sense it’s like you’re getting
the best of both worlds not a lot of
people are going to pay 20 of the
principal
on an annual basis right so but if they
but it allows them kind of like if they
really want something at the end of the
year they’re like hey i i have all this
extra cash flow now i don’t know what to
do with it i’d rather just put it back
into the home they can do that without
any penalty right so that’s also a kind
of a little bonus that kind of plays
into their flexibility and what they can
really utilize the principle for that
they’ve saved for x amount of period
yeah very very cool
uh well i always like examples why don’t
you give an example obviously no names
just rough numbers of a couple of deals
you’ve done maybe one in the luxury real
estate you’re proud of and then one in
this 40-year i o just kind of
actually you know what i have one more
question before we ask for examples
uh
can i buy a dog let’s just say a rundown
fourplex it’s pretty ugly it needs it
needs it needs a hundred grand right of
immediate investment that kind of still
qualify
do you want pretty pretty clean stuff
it’s going to be pretty clean you know
we obviously have the ability to get
that client into some sort of either
construction right loan and then you
know makes total sense exactly and then
once it’s ready to go because remember
these
these loans are still backed by pretty
big time investors and institutions
they’re not gonna
no i just wanted to make sure no yeah
again that’s why that’s why there are
providers out there not all pro programs
work for all products or all properties
sometimes you’ve got to do the heavy
lift get it there and then you get into
the 40-year money
uh makes toys but we have the program to
be able to do that right so of course
wanted to buy you know a dog or so then
we can always bridge the gap finance the
rehab costs which we can you know we
have lenders that will do that finance
everything and then you know
down the line we’ll just refi until rate
and term and do a 40 year ago yeah there
you go i like it well all right let’s
close with a couple of examples uh
floor is yours what do you want to tell
us some examples i guess we’ll start
when luxury i mean we had a really nice
one okay yeah um
so pretty unique
uh we just did one in kind of the
beverly hills area in los angeles it was
for a
primary residence okay it was a a 14 mil
it’s 14 1 we’ll call it but it’s 14
million dollar
uh
luxury high-end yeah i would call that
luxury no matter where you’re at there’s
four you put you you make it eight
digits i’m gonna call that luxury you
got it check
yeah
but it was a very unique situation it
was
it only required 10 down
in a cash
10 down and how we were able to
we we use a relationship
based
loan it will where essentially
the client had some assets that he could
pledge
and he didn’t have to sell those assets
or anything but he you know pledged them
right yep didn’t have to put your
typical
you know 35 45 down because i i tried
going
bringing this loan to a retail you know
when we have access to and they’re
giving us you know 35 40.
yeah that’s that’s a lot that’s a big
check to write yeah yeah so we were able
and there’s a lot of other intricacies
that i don’t want to share too that’s
fine information from the client but
essentially look you know you can’t get
a 10 down loan no
no going to the big retail bank so
that’s not there that
that’s awesome and with less down you
know who to contact yeah there you go
all right well let’s talk about uh a
40-year deal that you helped someone
because i got to imagine your phone’s or
email or whatever you want to call it’s
blowing up going give me some of that
40-year money yeah i mean you know we we
have a
we do about i think i’m probably about
30 or 30 to 35 million in just this this
product on a monthly basis
um so we have a lot of examples i think
you know kind of a unique we have we can
even do unique properties so like a
unique example is like
we just did a condo tell
at the pendrie in utah um they’re
they’re just they’re making a new build
it’s in park city utah um luxury con
hotel obviously that means that hotel
and condo right um and we did that on
the same cash flow program um and it
wasn’t it wasn’t cash flowing but we
were able to get it closed on the
premise of hey this is the cash flow to
come and we were able to close the loan
you know successfully um and kind of
kind of make sure the client has like a
vacation home slash you know rental
property that’s kind of managed by the
hotel and that was a very unique
situation that you know even those ones
we can get done but if we’re talking
about a classic one to four
um you know we we do deals all the time
where it’s a purchase for like two or
three million they’ll put 15 down 15 to
20 down and they’ll get you know the
same 40-year i o fixed the cash flow is
as long as it covers 100 they’re getting
you know basically the best pricing um
and by that i mean the cash flow on the
rents just has to cover whether it’s
market or or actual rents has to cover
the interest only payment plus taxes
plus insurance plus association dues if
there are any so it’s not even they’re
not even you know hitting you for the
full principal and interest payment it’s
just the interest only payment so that
makes qualifying a lot easier
um on the cash flow aspect there’s no
you know management fee deductions
there’s no vacancy reserves that they’re
calculating none of that it is just
straight calculation of rents covering
the actual payment and um you know we do
two million three million dollars
fifteen percent twenty percent down
um and they’re able to successfully grab
these properties even if they’re vacant
so we do a lot of properties where you
know now kind of with moratorium kind of
being in that kind of limbo where people
are actually moving out of it people are
moving into it right um
a lot of properties we’re seeing are
being delivered almost with a few vacant
units sure um and
with vacant units you know retail
lenders can’t use the rental property
income right right but we’re able to use
on vacant units the market rents that
are assigned to that unit so
by combining the vacant unit market
rents along with the actual rents which
are like you said earlier a lot lower
right than the actual market rents by
combining those together we’re able to
successfully close these two three
million three you know three to four
unit properties even duplexes um you
know and have it cash flow well and have
the loan workout in their favor at the
lowest rate possible and at the lowest
you know everything possible um so yeah
that’s a broad general uh example but
the reason i give that is because we do
so many of those on a you know on a
monthly basis so i’m sure yeah way is to
just umbrella it you know into that
scenario where you know i’m sure you
have a lot of viewers that’ll fit even
you know if it’s not two three million
that’s fine yeah but it’ll still fit
within the 150 to 5 million 7.5 million
range you know
absolutely yeah so i guess the last
question to kind of close is that i’m
just i’m just playing with all the
different viewers i have on my channel
uh i’m gonna guess these are single loan
single asset type loans versus kind of
portfolio or blanket loans like you’re
not gonna go to ohio and buy seven
little cheap houses and put it all
together in one loan i’m guessing
correct i mean we have the ability to do
that but you’re not going to get the no
on a blanket no yeah it’s just it’s a
different product again right find the
right product right area so again who is
your who’s your avatar right is again
it’s the real estate investor
um
kind of one rental at a time folks i’m
guessing yeah that would be correct yep
very cool
well how do you want to reach out we
gave it to you in the beginning how do
you want them to reach out
so um they can email private clients
at
convoyhomeloans.com
or if they just go on our website
there’s um you can hit apply now and
it’ll have a whole you know thing they
can fill out and then it’ll shoot their
information over to us and either dustin
or myself especially for your viewers
will personally reach out to make sure
that they get the vip treatment very
cool is there like a little link to
where they they can say they came from
one rail at a time or like how’d you
hear of us or something like that
yeah we can make that possible yeah yeah
let’s let’s see how many one rental at a
time fans reach out so hey dustin
jonathan thank you very much for doing
this i had a great time uh look forward
to your uh email or phones blowing up it
should be fun i appreciate it thanks
mike all right guys have a good day yep