• The KillerFrogs

OT- Thoughts on Real Estate

Francis Xav

Active Member
Hey guys, just curious...since we are talking real estate, any agents/brokers/loan officers in here? I am a newly minted Notary and Signing agent. Any tips on developing business relationships with people in situations as yourself?
 

talor

Active Member
Hows the investment market? Can you find decent homes that rent for 1% of sale price or higher?
*Not a realtor/broker or mortgage professional* but I think as far as DFW goes, if it is in a desirable area, that general rule has been out of touch with market for several years. Now if you are buying in some questionable areas like Como or Stop 6 or Fair Park or West Dallas, yeah you can definitely find properties that will fit the bill.
 

WIN

Active Member
One big advantage to today's enviroment is the rate at which you can borrow money.

Things will definitely slow down for at least the next 2 weeks and the sellers will be the ones to suffer. The longer this goes on the more advantage to the buyers. We continued to see a strong sellers market up to the beginning of the pandemic because of low inventory in the dfw area. People were reluctant to put their homes on the market because it was difficult to compete for another home.

This pandemic may actually help bring more balance to the market.
 
Wife is a loan processor, up to today they are still extremely busy. She said they did a loan at 3.5% that normally she would have seen around 6% because of the borrower's history.

I had to do a closing this morning and the buyer had a 3.25. Self-employed and the scores were average. Pretty much unheard of.

We had some major issues with the Fed on Friday. Apparently the warehouse line was full/busy and we couldn't get anything posted through our bank. We had a lender actually bring us a cashier's check upwards of 500k but because of our guidelines and our bank's procedures it won't clear until Monday at the earliest. We had 8 transactions in our office alone that closed but didn't fund because of postings.

I'm pretty worried about the money supply. There's talk amonst my LO friends of the Fed actually closing by the end of next week.
 
My wife's broker has created a coronavirus addendum, noting that buyer or seller may enter quarantine and be unable to execute, or that outside events (like unavailability is title work, etc.) may prevent a successful closing. Allows delay in those type of instances upon mutual agreement.

Allegedly, there's a contract out there where in special provisions it states that the seller is to leave all toilet paper in the house.
 

AroundWorldFrog

Full Member
The property we were looking at got bid up about 5% above asking price. Still looking. Anyone seeing any change this week in closings, lending, etc? The part about seeing very low rates for self employed with average credit score is interesting.

And thanks for the comments!
 
The property we were looking at got bid up about 5% above asking price. Still looking. Anyone seeing any change this week in closings, lending, etc? The part about seeing very low rates for self employed with average credit score is interesting.

And thanks for the comments!
As for the low rate for the self-employed borrower, it would depend entirely on LTV, loan amount, credit score, if he paid any discount points, term of the loan, and, most importantly, on when the borrower locked his rate. I’m not trying to dampen your enthusiasm, just trying to provide the facts.

Rates are still low and you may have to pay a point or so, but, IMHO, artificial, because most Mortgage Backed Securities are being purchased by the government. Most investors are trying to maintain liquidity and a strong cash only position. I think, and it’s only my thoughts, that once the unemployment claims drop and the amount of mortgages in the pipeline finally close and fund, demand for MBS will return and there will be a great opportunity to purchase/refinance.

My advice for those that were looking at refinancing, but didn’t get locked, is to get an application in the system, supply the necessary documentation, and sit on it until rates get to where you want them to be. At that time I can push a button and get it locked in a matter of seconds. On a purchase like you are doing, do the same thing and when a contract is signed, it only takes a matter of minutes to add an address and lock it. If you mess around, rates in the afternoon could be a .25 of a point higher in the afternoon. Then you will be kicking yourself for not being ready.

Be smart and good luck.
 

PO Frog

Active Member
I’d call your lender and ask them if they will modify your loan down to a better rate. My business partner just did it and got a lower rate and got them to remove an asset that was cross-collateralized - didn’t cost a dime and you don’t have to mess with a refi.
 

AroundWorldFrog

Full Member
I’d call your lender and ask them if they will modify your loan down to a better rate. My business partner just did it and got a lower rate and got them to remove an asset that was cross-collateralized - didn’t cost a dime and you don’t have to mess with a refi.
Thanks, I'll call them today. Can't hurt.
 
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