Welcome back to take 10 Lisa Wiles here.
Corey Frills.
And we will start with the market
because it never ceases to amaze us.
Yeah, yeah, it never ceases to amaze us.
Interest rates are kind of
in a sideways trading power,
traitor sideways trading pattern.
So easy for you to say.
Yeah, everything about it's hard right now.
Meaning they're kind of staying the same.
So like the average 30 year fix is about 7.04% right now,
according to mortgage news daily.
Yep.
So, and there is really no thing we're looking to
for them to get better.
So this is the market that we're in, right?
I do think that housing, we have some signs
that housing is gonna be better in 2025.
Better how?
I think we'll have more transactions,
which is good for everybody.
Now, why would people do that when the rates are high?
I think there's a lot of people in my age range,
so millennials in the later side of millennials
that are, we're just done.
Like I got two kids now
and my starter house just doesn't work anymore.
Just gotta do something about it.
My wife wants a house, so this is true.
My wife wants a house so bad she can't stand it.
I can only hold her off so long.
And I think we're at that point where it's like
everybody's done waiting.
They're done waiting on the election.
They're done waiting on rates to go down.
They're ready to take action.
So I think that's part of it.
The other reason that I think that it may get that way
is like Home Depot stock is doing really well right now
post-election.
And so when you think about the stock market,
think about Vegas and sports events.
You know how Vegas is always super close?
Like they can predict the score within points.
The stock market's very similar.
This is just like really high paid betters.
And when they bet on Home Depot,
they're betting that housing is gonna do well.
So yeah, I see some signs.
That's a cool correlation.
Yeah, I just got that alert from CNBC and I'm like,
oh, that's good.
So I do think housing's gonna be much better in 2025.
Rates are going to go down in 2025.
The most recent forecast that I've seen
is they're gonna swing anywhere from seven and a quarter
on the high side.
We're not far from that now.
So that's good news.
To 575 on the low side is what housing wires forecast is.
But with rates, I mean, with all of that taken into account,
I think the most important thing that you did mention,
and this is something I saw as a trend,
our volume went way up, was it May or June this year?
And the rates were not good.
They were actually getting worse.
That's right.
At that time.
And so...
The high point was July.
Yeah, they were actually in the process of getting worse
and then people took action.
And like you said, people get fed up
and they're just saying it's time to move forward.
That's right.
Like rates be damned.
That's right.
All right, so hang in there with us
and we're gonna be obviously tracking it
and coming to you weekly on that kind of stuff.
Around that, let's get a little creative
with a couple really cool creative products
that we have that we may have talked about in brief passing,
but we have done some of these recently
and a couple of new things that have just rolled out
that we wanna give you as tools for your little tool belt
that you go out there as you be selling.
So one of the things, and we have a closing this week on it,
is renovation loan on the cutest little house
but needs renovation for an investor.
Yes, investment property, renovation loan, 15% down.
Let's go.
Like, and this is a 30 year fixed mortgage.
This is not some bank like five year arm
or floating rate kind of thing.
This is a 30 year fixed conventional,
15% down investment reno deal.
So on the down payment, here's how reno works,
just high level overview, all right?
So you have the price of the house
and then you have the amount of renovation
and the appraiser goes out to the property
and looks at what does it appraise for now
and what will it appraise for in the future
after you do these specific renovations.
Comes up with the future value of that home
and the transaction is based off of that,
but for the actual cash out of pocket,
it's purchase price plus renovations, 15% of that.
That's right.
So what's correct and it's not necessarily like,
let's say you put 30 into a house,
you bought it for 200, put 30 into it,
it's gonna be worth three,
you don't have to put 15% down on three,
15% down on 230.
Correct.
Yeah, awesome tool.
I don't know why more people aren't using it.
Especially for the high side
that this investor is going to see
after the renovations are complete
and to be able to get in without having to purchase a property
and then shovel out another 100,000 out of their pocket
to renovate it.
And it's not necessarily a flip.
This could be a buy and hold property.
That's right.
We could keep this thing and rent it out.
30 year fix.
Yeah, that's right.
So awesome product, I think is super underrated.
I love seeing, we got that approval this morning.
I love seeing that.
Yeah, it's closing.
Yeah.
Another thing is non-QM.
I don't know if you've ever heard of that.
It is basically, ooh, dirty word,
the old subprime, but way better.
Meaning.
Re-vamped.
So we call it now non-QM.
And it's actually, it's underwritten with documents.
Like subprime was just like, hey, I make 80,000 a month
and I have 100,000 in the bank and you're like,
stamp, here's your loan.
The ninja loan.
Not a good loan.
No asset, no job.
Big problem, created a big problem.
We don't do that, but we use alternative documentation
to prevent income.
And so a couple examples of this would be
for an investment property,
we could do what's called a DSCR loan.
That's debt service coverage ratio.
What you need to know is all we care about
is the property the investor is buying.
Does the rent forecasted for that house make the payment?
If it does, good to go.
And you guys, the rates actually mirror
regular investment rates.
They're not that different.
So sometimes when we have clients that have
20 different businesses and complicated returns
and showing losses over here
and they just don't wanna get into all that paperwork,
we've been going DSCR with them
and that rate is pretty much a mirror image
of a freddy or fanny rate on an investment property,
which blows my mind.
Yep, very comparable, very clean.
And so much easier on your client.
We're not easier to do.
The one thing that is different
is that you don't get your approval
until the appraisal's back.
Because obviously that's the only thing we're looking at.
And so, you know, that house,
hopefully it has some past rental history.
Hopefully we've looked at some comps up front
just to make sure that it will cover the note.
But all in all, what a great product.
Awesome product.
Another example of this would be
for self-employed borrowers,
we can do something called a bank statement loan.
So if you've got a really creative accountant
that writes off all your losses, that's great.
We are all about being efficient with your taxes.
Yep.
Right.
But it makes it hard to qualify for a loan.
We can actually get 12 months or 24 months
of bank statements from the business owner.
Look at the cash flow coming in
and use that as qualifying income.
Pretty cool.
So, super cool.
And then one more option.
I like this one.
There is a 1099 program.
Let's go.
And so, maybe you're a real estate agent.
You could be.
If you're listening to this.
With a super creative accountant.
That's great.
Love that.
Also, it could be that.
We can actually use your 1099
and then deduct an expense ratio from it.
I've seen 15%.
There could be, I don't know if that could range, right?
But we can actually use that.
Your 1099 from the real estate brokerage.
Deduct an expense ratio from it.
And then use that as qualifying income.
That is the income.
Huge deal.
So, as a company, we're starting to do a lot of these.
And we've talked to other originators across the country.
Yep.
That have increased their volume 20, 30%
just off of these types of loans themselves.
I mean, how would you like it as a real estate agent
to be able to use a 1099 to qualify
and go purchase additional investment properties
and then actually file your return the way you want to?
That's right.
I mean, why wouldn't you do that?
That's right.
And so you're not, yes, the interest rate
may be higher than a conventional loan.
But wait, is it more than what you would pay in taxes?
Right.
If you had just filed all that income?
That's right.
And not actually taking the ride-offs
that you can take per the tax code.
Just put them side by side and look at it.
There you go.
We're going to wrap up.
One thing that we do want to put out there
that we're really excited about, I think, business planning
or what a, I think that's a dirty word.
Yeah.
It's routine.
We do the same crap every year.
Yeah.
Come and see our business planning, whatever.
We're not doing that this year.
This year we have a whole new idea.
And we want to focus on your personal life and balance.
And we have a really cool concept
that we're pulling together that we want to invite you to.
That's right.
Stay tuned.
I heard a quote a long time ago that said,
before you decide what you want to do,
you need to determine who you want to be.
So we're going to take some time exploring who you want
to be as a person, as a family, as an employer, whatever.
And then we're going to back into now,
what do we need to do to accomplish that in our business?
Yep.
Super simple.
Your business will support your balanced life.
And not one person ever said, I wish I'd worked more.
Never.
Right?
So no.
You wish you would climb the Mount Kilimanjaro
with your children and made them hike up and have a picnic.
And be happy about it.
We're working on the weekends.
That's right.
After hours at dltwgroup.com, you can get us there.
Happy Thanksgiving from all of us to you.
We're so grateful for you.
It's been a really difficult year.
And thanks to you, we have had a decent year.
Pretty good year.
And follow us on social so you can see how grateful we are.
Yes, we'll have some grateful content coming out.
That's right.
Yes.
Thank you.
Much love.