Video Closed Caption:
good morning good afternoon good evening
folks michael zuber one rental at a time
back with the boys from convoy dustin
and jonathan how you guys doing
good how are you i’m doing well so a lot
of great conversations our first
conversation with uh dustin was about
the economy the fed a recession
depression all that cool stuff second
video we talked about this amazing
second product that you are just about
to announce august 1 august 8th right
around the corner building pipeline for
you guys there
now i want to talk about
just what is going on in the market the
mortgage market is crazy conventional
rates are falling new loan products are
coming because the mortgage industry is
seeing a lot less transactions so people
are getting creative so i’m just curious
what are the most common or popular loan
products today that convoy is seen
so so uh i mean we’ve been doing
obviously with
since the time we’ve been on most of our
business is for investment properties or
investors
um
the most popular product hands down
right now is our dscr product because
well number one you know there’s no
income being used because we’re using
the cash flow of the property um and
number two like trying to get qualified
now going conventional or full dock with
where rates are at for an investment
property because you got to keep in mind
the
debt to income ratios when you’re going
conventional or a lot lower on an
investment than a primary when rates are
you know in the sixes trying to get your
dti down to uh you know 43
is very difficult so
most common most popular for sure hands
down is our debt service coverage ratio
loan the dscr loan right there’s no
income required just
got to find the right deal i keep
telling people find the right deal don’t
just get it because yeah
yeah folks only great deals today we’re
not doing good deals good deals left the
building we’re only doing great deals
please
exactly and and uh you know it’s harder
to find obviously because
the payment’s going to be higher with
the higher rate but there are a lot of
clients that we’re running into that are
getting
dscr’s over two still when the rate is
in half percent because they’re going
yeah
again folks i want people to realize i’m
i’m now calling a housing depression
that’s going to cause the economy to
have a recession but investors
we don’t care about the interest rate it
is one variable on a big old spreadsheet
put it in at nine who cares
that just tells you what you can pay how
much you put down just get better deals
i know the market is shifting today the
market will continue to shift for
quarters this is a slow process
learn your market do the work
great deals are out there you may not
find them today you may not find them
tomorrow but they are out there this
could be six eight quarters so just keep
doing the work
with like your hat says which i love by
the way
um yeah in
the dsdr program obviously if you
are kind of um curious on uh getting
another perspective on a quote you
already have or something reach out to
us
because we have a lot of a lot of
different lenders with a lot of
different pricing so you know definitely
check it out um i think in terms of also
we talked kind of a little bit about the
spread between the rates of conventional
investment versus dser some non-qm
investments um it’s still not that big i
mean you know it’s maybe at most a point
um difference because conventional
investment properties are still in like
the sixes you know six quarter six you
know half for some some of them seven it
depends on what you’re doing but like
it’s still there so um you know another
very popular non-qm product that has an
even smaller gap than dscr’s are you
know bank steam programs if you’re
self-employed you know it’s a no-brainer
but we want to clarify it’s it’s for
self-employed people right so whether it
be you’re running a business um for real
estate or whether you’re running a
business for you know let’s say a
laundromat or whatever if you’re w-2 and
you know employed by someone getting a
paycheck and that’s your single source
of income we can’t really go bank
statement program because you’re not
self-employed
so um have to make sure that we are only
dealing with self-employed people for
bank statement programs it does allow
for slightly better rate than a dscr if
it qualifies but it’s also the 40-year
fixed um with interest only all of that
is still available on the bank same
program so you don’t have to go dsdr in
order to get that but
it does allow us a little more
flexibility in terms of um you know
qualifying for the income and a little
bit lower on the rate potentially yeah
something i wanted to ask you guys again
because you brought the 40-year mortgage
to my channel
uh gosh what was that six nine months
ago what is the percentage and a
complete guess is okay what percentage
of the orat family that’s come to you
chose 40 30 is it 80 20 50 50 any
guesses
uh
70 30 maybe yeah yeah because here’s the
thing that we always preface on so it’s
not like
the the interest only i’d say 90 percent
right okay the the reason i i
we try to
get the client to go interest only is
because they can get a better deal when
we run the debt coverage
payment may only be
in on a small loan you know 150 250
bucks difference but that makes a
difference yeah when i yeah when we go
into underwriting and you’re going
interest only we get to use the interest
only portion as the denominator in the
calculation exactly so you know if the
client really wants a 30-year fix i’m
like look just go with the 30-year
interest only
set your loan payment on auto-pay
yeah because i can tell you the number
right it has to be this this is what the
30-year fixed payment will be but i will
get you a rate that’s 0.5 percent better
because now debt covers positively yeah
this is this is why you have to work
with professionals
right the professionals and again
because you’re coming from oh rep one of
these two guys is going to talk to you
and they’re going to tell you the whole
story they’re going to say hey i can get
you a better interest rate if you choose
this loan but let me give you the full
payment which if you choose to pay
that’s on you that’s
that is so wonderful that because you
don’t have to do that
that is extra work for you so the fact
that you do that for one rental at a
time people is pretty cool so thank you
yeah absolutely um and then
but one question you said 70 30 but i
don’t know which way it was 70
30 30 40 or the other way i’d say 70
percent 40 30 before okay i didn’t know
all right 30
30 30.
okay i just didn’t know yeah um i mean
it it’s interesting just because like
dustin said the interest only portion
but um you know a lot of our lenders too
will allow for even if there is a
prepayment penalty which we’ve touched
on multiple times um they’ll allow for a
20 principal pay down on an annual basis
yeah nobody’s considering that yeah so
it’s like even if you pay the
principal payment that you were supposed
to pay
you know like dustin was describing
you’re not going to trigger that
pre-period penalty it’s still going to
allow you to do it without the worry of
that happening yeah exactly exactly yeah
so that’s that’s there and then i mean
obviously um like we are alluding to and
always talking about like on the last
video and everything i think a really
popular program like you said is going
to be that second mortgage that comes
out that’s not based on full dock dude
again there’s there’s there’s millions
of people again black knight’s the
source
13 of residential loans which is where
you’re playing with the second have a
two on it
a two
fifty percent or three and a half
and eighty percent or below four i have
some of those loans i will never
refi those loans but you give me a
second to my 50 equity now we can have a
conversation
i think that’s amazing
exactly and um i mean we literally we
are also i mean we just got a
notification that it’s probably going to
be rolled out next monday
i just got i just i sent a little quick
email and i was like hey when are we
getting this and it looks like they’re
finalizing it we might get it next
monday so so august next monday’s august
1st or 2nd wait till we fully announce
an announcement before they say a bonus
no no no i don’t wait i’m in sales we
don’t wait if you are from the orat
family you need to email these guys
today if you have interested in this
private client at convey home loans to
get in the queue
realize they don’t have all the answers
yet they’re going to play softball
because they want to under promise and
over commit not my problem not my
problem that’s your problem
fill them up today get in the queue
once it’s done it’s done then they can
start talking to you so again exactly
put get in the queue now
it’ll be monday it may be the eighth who
cares get in the queue yeah that’s gonna
be a super popular program i think no
doubt no doubt yeah okay um
it’s filling a huge need but i think but
i mean that’s pretty much
the most popular programs right now for
qualifying on non-qm are i would say so
another question i have just again
because i hope the overat family is
definitely buy and hold
uh i’m hoping this is near zero but it
might not be do i have any flippers
coming to you from over one rental at a
time trying to get one-year loans or
you know stuff like that to yeah we
should have talked about that more on
our previous videos or even we can do it
now or next go for it yeah we’re doing a
lot of fixing flips and a lot really
okay um so what’s a flick what is a fix
and flip program look like uh we can do
more next week but what’s it look like
very simple it’s it’s a it’s a product
that allows somebody to obviously buy a
home on a short-term note and get the
the reason let’s be very clear so we’re
talking six twelve eight what’s short
term 12 to 24 months okay right interest
only
there’s no prepayment penalty you’re
gonna essentially put we’ll do the math
super quick and easy 100 000 home you’re
putting 20 percent down
the first loan is 80 000 right correct
um if you have all of the rehab that you
want to do yourself
great but most of our clients are asking
for
rehab money as well okay so this client
hypothetically wants sixty thousand in
rehab okay let’s fund the rehab but
we’re gonna put it in an escrow account
right he doesn’t get it at closing
and you know he uses the 60 000 in rehab
from us and then in two years
he either sells it for 220 or he refines
into a new loan okay yeah so let’s uh
yeah let’s talk about that product on
our next episode because again i think
there will be opportunities it’s
uh it’s funny my real estate
entrepreneur omar on tuesdays a year
maybe 18 months ago we said it’s the
best time ever to do fix and flip and we
did a lot of them he did more than me uh
but i did a lot of them and now it’s
it’s harder not that it’s impossible you
just gotta you gotta lower your arv a
lot of you are doing 70 75 percent of
arv get lower get be more creative uh
you gotta buy better uh but there will
be plenty of opportunities to you know
burr or flip it’s gonna be harder
there’ll be a lot of busted projects
because again a lot of people got
started and rates went up and got them
but it’s not impossible so it’s good to
know you guys have that product yeah and
i mean it’s something that we do
ourselves right like i’m i’m about to
work on one uh not a flip but you know
more of like a fix and hold but kind of
like acquire on a bridge and do the
rehab finance it all and then kind of
buy it into a longer term loan which is
i mean not about it yeah i got to know
jonathan what price point are we talking
about you look like a baller with these
various no i’m sorry i’m not i’m not i’m
not i it’s it’s an anaheim uh i’m you
know it’s worth like 9.50 but i’m
getting it for like
actually 650 to 700. okay so that makes
sense huge discount yeah yeah so this
will be a buy and hold rental or what
are we doing
mom in there okay yeah yeah yeah there
you go i like it
[Laughter]
very cool man i i appreciate you guys
you guys are doing great things
uh again folks get in line uh i suspect
the second product that uh knock on wood
will be announced on the first maybe the
eighth get in line today private client
at convoy home loans telling me came
from orat and one of these two great
guys will take care of you thanks man
thank you