Las Vegas area house lenders

All knowing Beeb…

Looking for someone who does bank statement home loans/mortgages for a house in the Las Vegas area.

Not for me personally but my friend.

Connect me please!

 

@shakazulu12 Got any references in Vegas?

 

Is Geoff May able to do stuff in Nevada ?

 

I'm not thinking I'd purchase in Vegas just now. Seems a wee bit heated there.

I've also heard through the grapevine that lenders are being very selective right now, banks/credit unions are already holding too many mortgages that they are having difficulty packaging and selling.

I have some raw land in podunk rural Oklahoma I'm trying to move right now, and plan to put the proceeds into another 3/2 in either Lubbock or OK City... probably Lubbock. When people look at me askew and sneering and ask ""Why Lubbock?!?!"" I smile and say, "Exactly." Some understand what I mean. Most don't.

 

Yeah, I can do those. Bank statement loans are a whole different world from the mortgages that most people are talking about though. @gpstar748 shoot me a PM if you want to chat or link up with your friend. It's just like the old alternative doc programs that we used pre-2008 madness. That being said, a lot of loan officers tell self-employed individuals that a bank statement loan is all they can have, because they simply don't know how to analyze tax returns properly. So there is sometimes an angle to get it done under better terms on a conventional or portfolio product first. Bank statement is usually a last resort. Though if they truly have the best accountant ever, it's the only angle.

 

The beeb never ceases to amaze.

I very much respect you and @SteveThompson when you speak on this topic, as it's one I'm just starting to delve serious scratch to, and I am just smart and wealthy enough to lose serious bank if I get ahead of myself.

I'd dearly love to hear either of you divulge your reading of the housing market tea leaves, specifically/especially as pertains to the 3/2/1500sf rental property market in Lubbock, OK City, Albuquerque, and anywhere else in that region where the market isn't already scorching like the DFW and Austin metro areas.

I really wanna buy this one,

https://www.zillow.com/homedetails/1506-Yorkshire-Ave-Wolfforth-TX-79382/69210849_zpid/

but I have to move my Oklahoma property first.

https://www.zillow.com/homedetails/475-Maverick-Wilson-OK-73463/2059470916_zpid/

 

Good Luck.
Is that on the "Indian side" of the state?

 

Do you have a minute or two to summarize what a bank statement loan is, along with the usual terms?

 

That is good price but property tax is not cheap down there, 5k.

 

I'm hip... This one cost me ~ that much last year. Totally worth it, though. https://www.realtor.com/realestateandhomes-detail/6903-9th-St_Lubbock_TX_79416_M87823-58468

I'd gladly do it again.

Ask me in 10 years, though. Hence my hat in hand query of those more experienced.

 

Yeah, I'll come back to this later this morning. Everyone is panicking for no reason over the jobs report this morning so I have to explain what it really means and why the bond market is doing what it's doing to a bunch of people that are just going to completely forget about it by Monday

 

Got my call from MBS Highway this morning with the alert to lock! Nothing to lock at the moment so back to bothering clients to send in their freaking docs! lol

 

Sigh, everyone wants money in two seconds but can't send an email........That being said, I'm having a bit of a different problem. Bidding wars are back for a lot of my clients. So lots of updating approvals and running numbers, only for them to get beat out by 100k.

 

Generally:

 

Most of my first time home buyers with 3.5-5% down are sol here in NJ. While it seemed like the inventory was getting a bit better, we are back to long lines at all of the open houses. Shit, there is a house in my neighborhood that needs a complete reno and there must have been over a hundred people there for the open house.

 

Yeah, it's a shitshow all over again. Though I mostly just do loans for medical professionals or self employed these days. Same stuff, different price range though.

 

I am not intimately familiar with those regions, so I hesitate to offer any speculation. As far as the housing market on a national level, and painting VERY broad strokes.................Sigh, just don't know. You have a couple of things at work at the moment. For one, anything the Fed is doing now, really doesn't affect things for a while historically. Now, the market is a lot more sophisticated than they used to be, so it's not a year long delay like most will say, but it's still a ways out there. We are just going to start feeling the affects of rate cuts on employment and wages, and even that, so far hasn't been as bad as the headlines have portrayed. That would cover the demand side of the equation. As mentioned elsewhere in this thread, I'm starting to run into bidding wars again in the 750k-1.25 million range for my clients around Portland Metro. Out in AZ, more like 1.25 - 2 million range. If the property is desirable. While the average days on market for listings is lagging, I think the issue is there just aren't that many desirable listings available. The ones I see pop up are either priced really poorly or just not something that really jumps out. Any time I see something that makes me go "Oh man, I like this one", it's gone in a couple days with multiple offers. The supply side of things is still really constricted and that is keeping pricing inflated, even in the face of double the interest rates we had in the recent past. There isn't really any end in sight for the supply side of things. Construction is nowhere near where it would need to be to ease pressure on that. And on top of that, everyone who owned a house already is probably sitting on a rate in the 2's or 3's. Therefore, it simply doesn't make sense for them to sell and buy anything else, as it would be a downgrade unless there is a major life event change.

So yeah, it's murky. Long term? Well, I don't know that supply is going to get better anytime in the next few years. We may have a rough next year or so, but I don't really think of houses as a short term type of investment. I do see that corporations are getting into the single family game. The headlines always say numbers that look scary, like "Chase to buy 110 billion in single family residences and turn them into rentals!". And the concept would seem to indicate their belief that real estate supply is going to lag for a while. But 110 billion in real estate is still a drop in the bucket. Though it's interesting to me that foreign investors are coming back to areas like NY and hot parts of Florida.

But the general rules of thumb still hold IMHO. If it's in an area with decent employment centers, local government isn't crap, and it cashflows. Then it usually ends up working out. YOY rent growth is slowing, but the thing everyone is missing on the headlines is it's still growing. Just not as fast. The general public seems to be under the impression that inflation will go backwards after the Fed is done, and while it will on some goods and services, that's just not really how this works for the most part. So I expect housing to continue to be a large chunk of people's pay and they will just adapt as they already have. I think the thing that could affect some areas is restrictions on STR's. That could release some inventory that would normally be in the rent pool.

Kind of a rambling way to say.........no clue

 

Okay, so here is the gist of bank statements loans. Some self employed/retired individuals are really good with their taxes and showing losses. Now in the normal scope of being a loan officer, you can actually reverse engineer an income out of tax returns that produce a loss. Without getting into the full scope, anything that's a paper loss like depreciation, amortization, business use of home, non-recurring expenses etc. Host of others, you can add back into income. Sad reality is 90 percent of loan officers are either too lazy or too stupid to know how to do this, so they just default to saying "you need a bank statement loan". Now, that isn't to state that some people definitely need them. But it's a source of frustration to me that so many self employed individuals get penalized like this so I take great care to try and figure out how to get them done on a more conventional loan product.

That said, bank statement loans generally work by getting a range of bank statements for the business. 6-24 months depending on what you are trying to accomplish. Deposits will be analyzed, occasionally a P&L will be requested in conjunction. The idea is to figure out what the actual cashflow of the business is. Then take a percentage of that and use it as income to qualify the customer. In the case of retired individuals that are taking irregular withdrawals on investments, you can actually do some asset depletion calculations to accomplish the same thing and it's a way better rate. Seen it plenty of time, someone has 10 million in assets but shows zero income and idiot loan officers can't figure out how to lend to them.

Anyhow, the positive to this is, you can get a loan. The down payment requirements are usually higher. I mean, I can do them with 10 percent down, but you are talking 9 percent or more on something like that. Which, beggers can't be choosers so you are stuck with it. 20 percent or more down isn't that far off a conventional loan though assuming credit is solid. It's pretty much a middle ground between conventional financing and hard money. Which will want your first born as collateral and a ton of points in fees.

Other option, which I hate when people say this. Is to re-file taxes, actually show income, then pay taxes on that, just to get a loan. But I would rather take a high interest rate and deal with it that way than give uncle same more money.

 

Also, just realized you said Vegas, which is often an investment property type of deal. There are what are known as DSCR loans, where if the property cashflows and you have the down payment. Not a whole lot of questions asked. Usually used for STR's or multi-units. Things are getting touchy with STR bookings being down so it gets a little murky on those.

 

STR? Short term rentals?

Great info here. Thank you for taking the time.

Especially in the Lubbock area, the state and local economies remain strong, relative to the broader economy. Jobs up the wazoo, a yuuuuuuge medical industry, Texas Tech university, plus a couple of other universities. They did lose the Air Force base several years ago, but there's a developer pimping the bones of the base out as a technology and research hotbed. It's not nearly as hot as DFW, but you can buy WAY MORE house in Lubbock for a quarter million than you can in DFW. There's not a 250k 3/2 within the Dallas area that I would even live in.

I have noticed that properties in Lubbock are staying listed for much longer than even one year ago. Last spring, I saw multiple properties that would be listed on Thursday, and would put notice in the listing that highest and best offer would be selected Sunday afternoon. Not now. The one I posted above would have been right in the thick of that kind of sale, but it has been on Zillow for over 2 weeks. No chance a choice cherry like that would have lasted a week last year.

So maybe the one I bought I might have 'overpaid' for, but it rented for 10% more than I used in my math for bidding on it, targeting a 5% return on my investment net of all expenses and taxes. I'm still very happy with the purchase and would do it again in a heartbeat.

I can see by your posts that we are talking about very different properties. I'm not going to be looking at 7 figure homes for investment. The one I live in isn't even there... Yet.