I hope you had a wonderful long weekend, and this short week is packed with production.
Last week was pretty humbling as we had to lay off people for what I hope is the last time. We try to run a tight ship, but with the market slowing down, we could not maintain the payroll we once had. Market volatility is no different than any other business, except our highs are higher, and our lows are lower. I say this knowing that I haven’t figured it all out in my 31-plus years in this business. I am not perfect, and I work my butt off to keep my employees working and achieving their goals. I feel like I fail when I don’t close enough business to keep all of the employees, but the reality is that the market has changed, and I need to lower the overhead to keep the business on solid grounds.
I say this because we all must look at where we are in business this year. My team has closed 218 loans this year, which is less than what we closed in the first two months of 2021, although those were record months. We have closed 168 purchases which are 24 fewer than we did in the first half of last year. The overall market is slower, and my job is to meet more people that can send us business. I put together a business plan that I think will start to get my phones to ring a little more, and I will be more active in communication during the loan process. I will be working open houses, have invested in a few mortgage lead companies, and am watching everyone on my staff to ensure they are giving me 100% effort. Will this take me from 36 loans a month to 60? NO! But an increase of 10-15% is dramatic in any business.
Why am I telling you this? Because you probably need to look at your business in the same way. If you closed 30 transactions in 2021, and are at 10 this year, your business is off 33%. If you can close that gap by working harder, becoming more knowledgeable, finding new avenues of business, hustling more, being more proactive, calling instead of texting, texting instead of doing nothing, following up more, following up faster. I was in the office for at least a few hours every day this weekend, including the 4th of July. I agree that I have issues, and I work too much, but I love the challenge, and my goal is not to have to let anyone else go ever again!
Interest rates got better last week and slightly better today. I was very excited to pay $6.45 a gallon for Premium gas this weekend, so maybe we have seen the worst inflation? The markets should be pretty quiet until Friday. Next week will have inflation numbers, which could move the markets, so hold onto your seat.
30-year Government Loans (FHA / VA) are in the low 5’s
Conventional Loans up to $647,200.00 – Mid 5’s.
High Balance Loans $647,201.00-$ 970,800.00 are in the high 5’s and low 6’s
Jumbo loans above $970,801 are in the high 5’s
5/1, 7/1, 10/1 Arms are in the 4’s for over $647,201. Under that, don’t bother right now!
Bank statement loans – They are available with 10% down again! 6’s+ depending on down and credit score.
Stated income loans – I have one bank with 30% down, but everything else has to be perfect! Interest rates are in the high 6’s.
0 down loans are in the 5’s – 620 credit score min right now! Mid 6’s, for the most part, up to $670,000.00 Price.
0 down Jumbo to $975,000.00 – 680 credit score – call for a quote
Private Money lenders – hard Money Loans – 35% down!
No Ratio Loans 30% down
Debt Service Coverage loans with as little as 25% down
Bridge Loans – are typically 6.99% with limited fees – But they get you where you need to go!
Interest rates are subject to change without notice! Above are LA County Loan Limits.
I will be around all week if you have any questions or if someone interested in buying a property! My cell is 661-714-6258, and my office line is 661-260-2970 xt. 2222. Please text me at 661-714-6258 or email me at Mike@AugustaFinancial.com. Have a great day and a better tomorrow! Please call me when you have a client that needs to borrow!