And welcome back to take 10 2025. First one. Oh my gosh.
Yours truly Lisa Wiles. Corey Frills. We're here to preach.
Absolutely. What are we, what are we preaching about?
Um, I would like you to preach the market as we do. Let's do it. Um, well,
I have actually a pointed question for you. Okay.
Something that somebody asked me and I actually have never asked you this in 2025. Okay.
Do you think rates are going to drop? Um,
I would answer that by saying there is not a forecasted drop in rates by the smartest people in mortgage right now. No, no, no.
Do you, guru, Corey Frills have a feeling as to what the rates are going to do in 2025?
And if, if you do have a feeling or if you don't have a feeling that you want to talk about, go ahead and expose what you think that's going to be.
Well, I'll say that what's going to cause rates to drop is you're going to have a significant negative economic, uh, happening.
Something has to happen that's not good for the economy for rates to drop. Um, do I think that's going to happen?
Uh, I think it could. I think we could see rates in the high fives by the end of the year. Um, by employment getting a little weaker.
We've seen that. So we had in December, uh, was one of the highest unemployment, uh, numbers that we've had, uh, prior to since 2020 and then prior to that since 09.
So we are seeing, uh, actually that was today, the challenge of job cuts from today, from last month, we had the highest number of mass layoffs today since 2020.
How are rates still going up?
You know, they have, you guys, they have been steadily going up for the last two weeks.
Yeah. I mean, well, since the middle of December, early December, I mean, we're up, we're up well over half a point, almost a point since the middle of December.
And that's good for you guys to know because your pre-approved buyers need to go back and readjust their price points.
It is. And then our buyers that are under contract are talking to their friends at work that went under contract in early December and they're like, well, I got this rate.
It's very different in a short amount of time. So do I think rates could get better this year? I do.
Better not forecasted to do so. So I think we work like they never get better.
I think we work and we plan as if these are the rates forever.
I am tired of the heartbreak.
I honestly just want that to be something that I don't even care about anymore.
And, um, do I think rates are going to get better?
I honestly am going to go ahead and take the position that I do not believe they're going to get better because I do believe that anything an administration puts into play takes time to have negative impact or positive impact.
And so in my humble opinion, it's going to take COVID point two or something out of the frickin blue.
And I'm not going to ever bet on something like that.
I'm not going to bet on 9 11.
I'm not betting on COVID point two or the Gulf of America happening this year.
Well, a friend of mine used to say never bet on the end of the world because you're only right once and you can't collect.
The rest of this and what we want this take 10 to be used for is we want you guys to be able to have some content that will save one deal of yours or make one deal.
We've been the freaking deal saviors this week.
We're in a cape this month.
We are flying in and saving deals.
And so since there are so many today is a save day.
Okay.
So one of the saves that we're working on actively right now is a self-employed borrower has only one tax return under this new employment to 99 worker and has a half of a year under the previous tax return.
2024 ain't nobody got that return yet.
So can't use that got told by their lender.
Need two years.
Do you you actually don't on a conventional loan.
You don't need two years.
You need one year tax return and you need that person to have been in the business for two years.
And you do have to average the 17 months that they had or 18 whatever it was.
You have to average that out.
But then after that as long as their P&L is showing that it tracks and it's on the up and up you're good to go with that income.
How is that possible that if we have the same guidelines or the same rules as everybody else.
Why can't we do the deal and they can't.
I believe it's because we approach deals with logic and does it make sense.
And do we have something we can hang our hat on and defend.
And if it's defendable we're going for it.
And this one's defendable.
She is on the up and it's pretty awesome.
So we have a travel nurse came in hot like New Year's trying to actually tried to close on Tuesday.
But we got it like the week before.
So we are closing it Friday.
So we closed it in less than two weeks which is.
But travel nurses are very difficult to underwrite.
So they just the nature of the job.
I mean literally variable over two years you could have easily eight assignments.
Nondidae contracts you could have eight different W2s eight different pay stubs eight different verification of employment.
And you could be two months without a job.
But our we have something we don't talk about enough our support staff here.
I mean really shouldn't be called support staff.
Like are the people that we have to work with us Rachel Kelly Tasha Jesse.
They are unbelievable at their jobs and they will chase something down and get a deal done.
And so Rachel on our team she grabbed this one chased down all the verifications of employment.
Her and Leslie got together made this deal work was turned down by that lender a week before closing.
We turned it around close it a week and a half.
Yeah I mean it's literally just what Lisa just said.
If we have a defendable position we're going to use logic and we're going to get it done and kudos to Fairway for having that kind of culture.
Yeah I do love that.
Another one that we're saving and we're going to be closing this one in so five business days eight business days eight business days.
It's closing on next Friday.
The they were working with the credit union no doubt credit unions have such good rates.
Corey how good is a rate that you never close on.
Is that a great it's zero percent really because you don't have the mortgage to pay back.
You never got a mortgage because they close close so closing costs either.
So these credit unions didn't even order the appraisal didn't have time to pick up a phone.
Never called the HOA thinks that there could be a problem with the condo.
They honestly don't have a the first clue about how to do a condo but man they have good rates.
Yeah so we're going to go ahead and close that on Friday.
It's like finding the coolest pair shoes ever and they're the wrong size.
Like who does Jordan's are sick but there are six and I wear a 12.
Go look at it and then keep going.
Okay one more.
Oh no I have one too.
Yeah you go.
All right so self-employed when we did the old fashioned conventional income calculation we got $6000 a month which take two years tax terms.
Yeah yeah yeah.
We have another way where we can do 12 or 24 months of bank statements take all those deposits.
And apply an expense ratio to it means nothing.
Anyway self-employed borrower $6000 this way couldn't qualify for the house they want.
We did with bank statements $12000.
And guess what they didn't have to claim it on their taxes.
That's right and for this agent it's going to free up two deals the listing of the house that they have.
And then the purchase on the new one.
You guys think outside of the box and use these things.
Also if you are a developer or no a developer or a builder inventory may be they may not get that top dollar right now.
They may start seeing those prices drop a little bit.
It could be a good idea to use the DSCR loan because developers and builders have a ton of different businesses.
We don't want to get into all that.
They probably take huge losses because I would because they own massive real estate.
Why wouldn't you write it off.
So DSCR debt service coverage ratio that loan has the property approve itself with the rental income.
They can refinance out of that construction loan into a loan an arm product even an interest only arm and hold that asset rented out.
And then in two years or one year when the market comes back sell it for for 50% more than they could have sold it now instead of taking that loss.
It seems like a no brainer to me and we can handle them all at one time.
And that's the end of our 10 minutes.
Don't take it for no get it done.
We work on weekends.
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After hours at the LTW group.com eight eight eight days a week.
All right have a good one.