Video Closed Captioning:
good morning good afternoon good evening
folks michael’s uber one rental at a
time back with the boys from convoy home
loans dustin and jonathan how you guys
doing
good good how are you i’m doing well man
thank you again i just love the fact
that my experts uh you know go about
their daily lives but when the time
comes out of our discussion they will do
things that are required to have it so
uh jonathan thank you for doing this
while you’re out going pick up your
fancy tesla i appreciate it
i appreciate it thank you yeah hey uh so
i want to remind folks a conversation we
had actually in one of our interviews i
want to say it was six months ago right
when the fed got off the bottom right
remember when the fed started you know i
think it was their first 50 rate move
uh we talked about what was going on and
i’m on a level set for folks that
haven’t seen it because i think convoy
is bringing something uh to investors
that have quite simply changed the game
instantly
so this is the conversation is i recall
it we’re basically going into a raising
rate environment non-qm was getting
hammered your rates are going up fast
like an elevator uh you know
conventional stair steps everything’s
getting more expensive we talked about
something that i’ve turned interest rate
locket right we haven’t we have 80
percent of lenders uh with a four or
below we have 50 with three and a half
we have 17 with less than three what is
going to happen is a lot of people are
trapped in their firsts right you’re not
going to do a rate and term refi when
you’re your first is you know sub four
in an environment that’s you know six
seven eight wherever this goes
and we were talking about it and what it
really dawned on me in one of those
early episodes is the winner of the game
because we have lots of equity right i
think we have 18 trillion or some crazy
ass number of equity is going to be the
lender and i specifically said it had to
be a non-qm lender to create a second
product
is going to dominate because again
very very few people it makes sense to
re do a rate and term
it just doesn’t make sense anymore right
when your hand when you got a 2.8
however you’re sitting on 200 grand in
equity
uh
maybe you want an equity line but it
just doesn’t work but maybe it does but
the person that creates the first second
even if it’s a high rate second it
doesn’t matter as long as i don’t have
to kick out the first
that person’s gonna win so it sounds
like you guys are right on the doorstep
of potentially
serving a monster need in the market so
let’s talk about what might be coming in
the next week or so
well i mean our you know it’s kind of
been in the works for a little bit but
um
you know it’s a
right now all seconds like heloc’s done
by brokers or usually some banks right
they do it’s full dock so you have to do
the same to your tax return
debt to income ratio calculation based
on that so a lot of people that qualify
for their first can’t always qualify for
the second especially for like the
self-employed community or investor
community right a lot of the money is
coming through you know bank statements
or non-conventional methods um so
what what is uh kind of going to roll
out in the next few weeks or so is going
to be a like a bank statement second so
it’ll be a heloc like a line of credit
but based on using bank statement as
income you know we can use full docs you
know assets as income there’s going to
be different ways to kind of qualify for
the key lock rather than just the
traditional
two-year tax return income okay or w-2
yeah um it’ll work just like a normal
heloc but that’s kind of what we you
know what we’re hoping will you know
kind of invigorate the market to allow
people to really tap into that equity
because they are in an equity high
situation to be able to purchase more
real estate especially if there’s a
downturn because then everyone’s going
to be getting better and better deals
so so again this isn’t announced so if
you know
obviously hold no one no one accountable
for any of this but it is certainly in
the works can you paint a broad brush or
is it just too early are we talking he
locks up to 75 70. do you have any of
this color and if you don’t we’ll talk
about it next time but i just this is
this excites me because i again i said
the first person to do this wins
and it sounds like you guys might be one
of the first
yeah we i mean we do have some color
because we’re actively negotiating a
part of it and giving the feedback what
we think would be best it is um we’re
probably going to be capped at like 85
to 90 we’re trying to see where that’s
at wow okay um owner occupied second
homes or investment properties you know
you’ll have your typical it doesn’t they
aren’t only going to be he locks these
are going to be full-on
second mortgages that you pay back day
one the amount that you start the loan
at right so it’s a fully amortized
or
you’ll get an interest only similar
10-year component the first 10 years if
you want it
fixed-rate but what’s nice is like john
already touched on is the ability to
qualify yeah he’s unconventional not
providing two years of tax returns and
not having to provide you know
verifications of employment and w-2s and
10.99 so that’s the thing we’re most
excited about because
it’s never been rolled out yet until
hopefully a week or two from now and yep
you know one thing we can say is you
know we’re having a lot of people reach
out from your community but we send out
kind of bi-weekly memos market updates
for our non-qm investors reach out if
you want us to uh be on our kind of
email blast campaign you can always
unsubscribe when you want and we’ll let
you guys know
yeah when this is officially rolled out
so again i just want to ask a question
because i’m excited to buy it again this
this is kind of a winning strategy so
you said fully amortized is this like a
second fully amortized 30 years 20 15
what’s the term yeah it can be so we’re
going to do either a 10 15 20 or 30 year
term okay um just gonna be just like a
second if you want the second instead of
the key lock yep and the ten-year
interest only is only available on the
30-year product of course yeah um you
know the 10 15 or 20 is just going to go
straight to a
fully amortized perfect
love that uh also it is fair to say just
just want to get it on record that the
rate’s going to be higher than a first
absolutely yeah
come on pete i just i want it on the
record just so nobody’s yeah nobody’s
thinking i didn’t ask the hard questions
um
what else again
somebody’s sitting in a situation
they’ve got a great first mortgage they
don’t want to touch it again don’t touch
it folks don’t don’t listen to these
robo dialers trying to get you to do
crazy things um but a second might work
might work because it’s an independent
thing a fixed rate again fixed rate i
guess i just want to confirm that
correct
awesome
no arms folks no adjustable rate
mortgages
uh again a heloc or a second you want to
just for somebody who doesn’t understand
the difference kind of outline what that
is
yeah so second um obviously it’s you’re
saying explain that what a second yeah
basically a second you get a check at
closing versus a heloc you get yeah
correct yeah if it’s a if it’s a second
like a true second um then you would get
it’s like a cash out but you’re not
really doing you know you’re not
replacing the first loan it’s going
first and then there’s a second loan
that’s you know subsequent to it so it’s
two loans um it’s you know you get a ch
uh a cash wired to you or a check
um at one time and that’s it it works
like just like a cash outlaw yep and
then a heloc for folks that just may
hear the term but not know what that is
yeah a heloc is um it works like a the
best way to put it is like a credit card
that’s tied to your house
that you can pull from for like 10 years
and then after 10 years you have to
usually pay back yeah so essentially
basically it’s a credit card with a
defined limit right it’s you know 80
grand exactly and then you you can write
a check for again just total exam write
a check for 40 pay back 20 write another
check for 40. it’s it’s not what it’s
yeah you can play with it right
exactly you can do kind of it’s kind of
like uh i mean it’s credit card limit
right but for 10 years you can you know
pull from it you can you know pay it off
you can do whatever you want with it
yeah you can even keep it at zero a lot
of clients just keep it at zero just to
have it just in case they need to do
something
yeah this is something i might actually
look at doing with you guys is some of
the some of the units i have ridiculous
ltvs on but i have first that i’m not
changing so we may look at doing a heloc
on a couple just to just just to to
increase the relationship so um this is
exciting so you think you’ll have this
uh no pressure by august one
that’s fair
jonathan was a little more suspect yeah
no no i was just not the person walking
by me so i just wanted to make sure
so so 8-1 so again by the time we talk
uh in a couple weeks we might be going
hey guys this this is out there
okay
i like it if it’s inside earlier we’ll
let you know awesome so folks uh this
should be exciting as i’ve said uh in an
environment where the first eighty
percent of firsts are sub four the first
person to create a second that made
sense would win if this is you if you’re
like me you got some loans that you know
sub four percent with grade ltvs this
might be an option for you how do you
want them to reach out
you can email us at private client at
convoyhomeloans.com
just put in the uh subject if you don’t
mind that you came from orat so we can
take care of you there you go well guys
thank you very much this has been a lot
of fun uh i look forward to video number
three thanks again
thank you