40 Year Mortgages and Interest Only Payments Helping Investors get Amazing Deals and Lower Rates

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



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


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


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


dscr’s over two still when the rate is

in half percent because they’re going


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


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


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



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


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


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


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


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


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

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