THEY DID IT. I knew Some Company was going to attack this Critical Hole in the Market. Convoy WINS!

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


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


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


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



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


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


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


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


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



no arms folks no adjustable rate


uh again a heloc or a second you want to

just for somebody who doesn’t understand

the difference kind of outline what that


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


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


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


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

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