Video Closed Caption:
good morning good afternoon good evening
folks Michael Zuber won rental at a time
back with the boys from Convoy Jonathan
and Dustin are my favorite Justin how
you guys doing good how are you I’m
doing very well very well so uh we’ve
been teasing a program that you two have
been working ridiculously hard on uh
last week you know we got close we
thought we’d have it on the first we got
it on the third and I’m calling this
thing the equity unlock
wow that’s what I think this is going to
be for folks let me paint the picture
and why I think it’s Equity unlocked
so as we all know for the last couple of
years we’ve
we’ve had a couple of things first off
we’ve had the opportunity to purchase or
do refi’s sub four percent
some people sub three
uh that is now a first mortgage that is
an asset for most people for the rest of
their life that first that first is not
getting paid off
however we’ve also seen amazing
appreciation
and there’s a lot of people that like
doing what I do which is called
recycling Capital let me go back to my
asset let me pull a big chunk off let me
go and use that to buy another asset I’m
not talking about buying toys I’m
talking about buying assets however
there’s a ton of people stuck you and I
talked probably six months ago and I
said pretty Point Blank trying to push
you and prod you whoever figures out the
second Equity unlock is gonna win
uh you guys took the ball you’ve you’ve
put the legwork in you now have a
program so tell us about Equity unlock
uh it is a second uh but it is um it’s
something everybody lots of people are
going to look at because it’s a great
way to recycle Capital so what do you
guys got
yeah it’s it’s a uh it’s a second
mortgage where the homeowner or the
investor does not have to refinance
their their first mortgage at a super
low rate that they probably have
um and they can take cash out by just
getting a a whole new second loan on top
of the you know first loan that they
have and what’s unique is you know it is
available for not only owner occupied
properties but secondary homes and
investment properties and um you know
the ability to qualify
is a lot easier than what we have seen
in the past for just your traditional
kind of home equity line of credit where
you had to have two years of tax return
W-2s all that stuff we call it full dock
this is more of an ALT doc approach
where we’re doing
if yourself and you can go 12 months of
bank statements well just look at your
deposits call it today
um or you know if you’re not
self-employed great
we’ll do a one year worth of full dock
rather than a few years given that
obviously the job market in the economy
has been a little bit better in the last
12 months than looking at the last 24
months yeah makes sense yeah and then um
another big thing is obviously being
able to just use bank statements for 12
months like Dustin said
um on on self-employed borrowers so to
clarify it’s self-employed right so what
that means is you’re not it’s not like
rental business that you’re running that
you’re just collecting rents on and then
claiming it as self-employed it’s like
actual business income
um but so it’s huge to unlock for a lot
of business owners and a lot of
self-employed people which is I think a
lot of people that invest as well
um you know being self-employed and it
allows them to kind of tap into their
Equity without kind of doing the refi or
the whole song and dance the only caveat
right now and you know it’s kind of a
big one because we’ve you know a lot of
our clients that have been using this
program right now have been California
clients
um is the minimum loan amount is 250 250
- ah okay well there’s so again
that’s the minimum second yeah minimum
second loan amount is 250 000. now do
you imagine that might evolve and change
over time or do you think the buyers
kind of want to stay at that level
we we’re definitely asking and prodding
and working on trying to get it lowered
even if it was at 200 or 150 would be
great
um but the 250 Mark obviously makes it
kind of a hard barrier to entry for of
clients in you know the Midwest or some
states that 250s basically might be the
value of their house right right no
exactly yeah yeah so but so for our
California clients it’s been obviously
really popular because it’s you know
they have multi-million dollar homes or
they have a million dollar like or 1.5
million dollar four unit that they have
a hundred thousand dollar loan on this
is a great way for them to cash out
um 250 500 000 to be able to invest
something else but for the clients that
have you know 250 000 house or even a
500 000 house just kind of makes it a
little more difficult yeah yeah that’s
unfortunate that limit right because
that does take probably a decent portion
of the audience out that would like to
get Equity
um unlocked maybe it evolve over time I
think I think it will evolve over time
because this again this second Market as
I kind of talked about earlier is is
ripe for someone to figure out I think
you’re going to have to get that down to
probably 100K minimum or Mac yeah I
guess minimum to really kind of dominate
because that that opens up more of the
country I understand not wanting to do
it at 50k or whatever because just the
paperwork and it’s just it’s not worth
it but I think eventually the market
will will find a floor at 100K uh but so
let’s just kind of round out the program
this is residential is it fourplex is an
under or is it everything yeah it’s
fourplexes and under and then one other
thing that you know we’ve spoken about
it I don’t know maybe a month ago but we
are doing a lot of full doc seconds on
investment properties that are minimum
is at 125 000. oh so there you go so
you’re close yeah you’ve got a two-year
you know W-2 turn where your income
looks strong on paper we can do that
well we’ll go down to 125 but if you’re
looking for the alternative doc type
qualifying uh I see I see so so again
folks if you’re watching this the 250 is
really that kind of alternative you know
bank statement you know self-employed
but if you’re a W-2 owner you’re in Tech
or Finance or whatever and you have the
tax returns to back it up you can go
down to 125 so that’s that uh that that
is a ray of sunshine that makes me feel
better because I think there’s a lot
more people at that level so again
seconds are possible seconds are it just
makes a lot of sense right and again
there’s a lot of equity people have
people wanted recycle Capital if they’ve
heard my story I recycled Norris drive
after two and a half years and then I
think it was Ferris and Terrace next
um it’s just how you keep moving forward
it’s it’s if you just if you have to
just save up the down payment all the
time it’s slow so the ability to recycle
capital is powerful and seconds
uh again I think the FED broke housing
with rates for too low for too long the
answer is seconds
uh don’t buy toys don’t buy vacations
don’t buy stupid new cars buy assets
make sure they cash flow day one what
other things we can tell people
um is there like minimum credit or other
things we should be I want to you know
help people when they call you and reach
out they have some of the answers so so
the minimum FICO is going to be 680.
okay
um I’d call that low but okay exactly
680
um you know if you’re going the kind of
the new Equity unlock program you’re
going
um 30-year fixed or 20 or 15 year
10-year
um but if you go 30 or fix you have the
alternate the option to do a 10-year
interest only with a 20-year fully M
um that’s pretty cool on a like second
loan that you can do Jonathan sorry to
interrupt but let’s just say you got
into Home Three could you do like a 27
year
if somebody wanted to match their first
with their second term could you do that
or is that just too much work no it’s uh
the kind of special year pricing that
like you know some lenders do is is okay
that’s fine I just wanted to ask so it’s
15 10 15 20 30. normal so I I would do
my what I would do in this situation if
it was me as I would get my second uh to
be paid off before my first so in my
example if you had 27 years I would get
a 20. if you had you know 16 years left
I’d get a 15.
um I would want this again you don’t
have to do that I’m just sharing with
the audience what I would do it makes
sense yeah absolutely and then again
like I said like Dustin said if we have
that if you’re using that second loan
um that we can do for
full dock clients
um then you know I think with that one
we can go up to I think 90 right on the
loan to value yeah up to 90. and then
like like it made me think uh because
John and I are running the numbers too
on this like the shorter the term on the
full dock you’re obviously gonna get a
better rate there you go you’re seeing
if you went up to like 90 uh on a
15-year second
the payment’s actually less than a 90 on
a 30-year think about that folks yeah
that’s just noticeable yeah I mean just
you know reaching out to us and letting
us just run the numbers and pointing out
to you that you know we had we had
multiple guys come to us saying they
just want 30 30 I’m like look let me
just show you something yeah let me just
show you the number the payment’s less
go with the 15. yeah let me tell you
folks if the payment’s Less on a 15 then
they’re 30.
yeah exactly whatever the whatever
payment is less but
um you know it really does allow for a
lot of clients now to you know have
flexibility on what they want to do with
the equity right that’s the most
important thing right yes the program is
250 it may be you know too high very of
entry for a lot of clients but you know
it’s a work in progress It’s new
um it’s two days old exactly okay I’ll
start picking on you in two weeks I’ll
give you two weeks yeah it’s it’s um
it’s it’s coming out it’s you know and
it’s very popular with specific targeted
communities
um not for everybody just like any loan
right it’s not always for everybody so
um you know we it’s really allows you to
to tap in if you have that Equity if you
don’t you know reach out to us about
that second loan that is full dock
though
um so you’re gonna have to qualify based
on you know tax return income you know
what you know what I’m gonna ask my
audience to do is if you are interested
in this Equity unlock I would tell you
to reach out to Convoy today this
weekend
just to let them know how much activity
is out there that way when they go to
Wall Street and they talk about hey we
we have all these other folks that we
could help I think that’s a that’s a way
for them to kind of use real information
so how do you want people to reach out
whether they’re interested in the 250 or
the 125 or just want you know to talk
about seconds how do they do that uh
feel free to email Private Client at
convoyhomeloans.com and then Dustin and
myself will uh we’ll reach out to you
awesome let them know you came from one
rental at a time that’s the deal they
will uh they will interact with you so
thanks guys thank you