California Real Estate Headline Roundup

Posts Tagged ‘real estate investing’

By Bruce Norris .

Regulator Test Failed by Several Big Banks

Wednesday, July 1st, 2015

 

Today’s News Synopsis:

 

According to Fannie Mae’s latest Housing Insight Report, the homes more millennials prefer are single-family.  Spending on construction increased 0.8% in May, although spending on residential properties was below expectations.  Several big banks, including Wells Fargo, JPMorgan Chase U.S. Bancorp, failed on their regulator satisfactory tests.

 

In The News:

Housing Wire - “Construction spending rises in May but residential component weak” (7-1-15)

“Construction spending during May 2015 was estimated at a seasonally adjusted annual rate of $1,035.8 billion, 0.8% above the revised April estimate of $1,027.0 billion, the U.S. Census Bureau of the Department of Commerce announced today.”

Mortgage Professional America - “California leads pack in hottest housing markets” (7-1-15)

“California continued to dominate the list of the hottest U.S. housing markets in June – but if recent trends continue, housing markets across the country are on their way to being the best since 2006, according to new data from realtor.com.”

DS News - “CFPB Asks For Comments on Enhanced Consumer Complaint Database” (7-1-15)

“The Consumer Financial Protection Bureau (CFPB) has issued a request for information regarding its consumer complaint database after going live with an enhanced version of the database last week, according to the CFPB.”

Mortgage Bankers Association - “Mortgage Applications Drop in Latest MBA Weekly Survey as Rates Increase” (7-1-15)

“Mortgage applications decreased 4.7 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending June 26, 2015.”

Bloomberg - “Oaktree, JPMorgan Buy $3.2 Billion of Loans From Commerzbank” (7-1-15)

“Commerzbank AG sold 2.9 billion euros ($3.2 billion) of commercial real estate loans to Oaktree Capital Group LLC and JPMorgan Chase & Co., making headway with its plan to reduce riskier assets.”

DS News - “Freddie Mac’s Mortgage Portfolio Expands for Eighth Time in Nine Months” (7-1-15)

“Freddie Mac’s total mortgage portfolio expanded at an annualized rate of 2.2 percent in May up to a balance of about $1.919 trillion, an increase of about $3.5 billion from April, according to Freddie Mac’s May 2015 Monthly Volume Summary.”

Housing Wire- “Millennials demand single-family homes” (7-1-15)

“Young adults prefer single-family homes, and in fact, 25-34 year-old homeowners are found to be more likely to reside in a single-family home today than their predecessors, Fannie Mae’s latest Housing Insight report showed.”

DS News - “Newspaper Files Motion to Unseal Depositions in Fairholme GSE Profits Lawsuit” (7-1-15)

“The New York Times Company has filed a motion with the U.S. Court of Federal Claims to intervene and to have the “protected information” designation removed from the testimony of key government officials in Fairholme Funds’ GSE profits lawsuit.”

Mortgage Professional America - “Big banks fail regulator tests” (7-1-15)

“Despite promising to rectify numerous foreclosure abuses, Wells Fargo, JPMorgan Chase U.S. Bancorp and several others have not properly satisfied the regulators.”

Bruce Norris of The Norris Group will be speaking at Discover How to Create A $100,000 Payday Per Deal in 2015 – LAREIC on Tuesday, July 14.

Bruce Norris of The Norris Group will be having its Property Buying Bootcamp Tuesday, July 21 to Thursday, July 23.

Bruce Norris of The Norris Group will be presenting the 8th annual I Survived Real Estate 2015 on Friday, October 16.

 

Copyright: Image from www.flickr.com/photos/phobia/

 

Looking Back:

Zillow and Bloomberg recently collaborated to come up with a list of the twenty most risky and most stable markets in the U.S.  Hartford, Connecticut was found to be the most risky while Buffalo, New York was the most stable.  Due to the booming commercial mortgage market, more and more debt from the bubble was being shaved off and helping the market improve.  A recent dismissal of a lawsuit against MERSCORP was affirmed by the U.S. Court of Appeals.

 

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.

 

 

Fannie Mae Mortgage Portfolio Decreases Again to Below $4 Billion

Tuesday, June 30th, 2015

 

Today’s News Synopsis:

 

Richard Cordray, director of the CFPB, is scheduled to speak in front of the Senate Banking Committee on July 15.  The National Association of Realtors reported an increase in pending home sales to levels not seen in nine years.  Fannie Mae’s mortgage portfolio decreased again this month to below $4 billion.

 

In The News:

Bloomberg - “Calpers Pension to Sell $3 Billion of Real Estate Portfolio” (6-30-15)

“The California Public Employees’ Retirement System, the biggest U.S. pension, plans to sell as much as $3 billion of its real estate portfolio, a move that’s part of a broader plan to reduce costs, risks and external managers.”

DS News - “CFPB Director Cordray to Testify In Full Senate Banking Committee Hearing July 15″ (6-30-15)

“Consumer Financial Protection Bureau (CFPB) Director Richard Cordray is scheduled to testify before the U.S. Senate Committee on Banking, Housing, and Urban Affairs on Wednesday, July 15, according to an announcement on the Senate Banking Committee’s website.”

Mortgage Professional America - “Pending home sales hit 9-year high” (6-30-15)

“Pending home sales reached a nine-year high last month, according to new data from the National Association of Realtors.  The NAR’s Pending Homes Sales Index rose 0.9% in May to 112.6, up from April’s downwardly revised reading of 111.6 and 10.4% above May of 2014.”

Bloomberg - “Normal Banks Are Helping Shadow Banks Grow a Lot (6-30-15)

“It’s no secret that financial companies without government-backed deposits—often dubbed shadow banks—have been growing as a result of post-financial crisis regulations imposed on actual banks.”

DS News - “Fannie Mae’s Gross Mortgage Portfolio Dips Below $4 Billion” (6-30-15)

“Fannie Mae’s gross mortgage portfolio experienced its second consecutive month of double-digit contraction as its value fell below $4 billion, according to Fannie Mae’s May 2015 Monthly Volume Summary released Tuesday.”

Housing Wire- “Treasury sweep of Fannie, Freddie shareholder profits ‘costly for housing’” (6-30-15)

“Yale Law School lecturer Logan Beirne examined a lawsuit recently filed by three Fannie Mae and Freddie Mac investors accusing the federal government of exceeding its authority as a conservator.”

DS News - “Average Guarantee Fees on GSE Loans Are Two and a Half Times Their 2009 Level” (6-30-15)

“Under the Housing and Economic Recovery Act of 2008 (HERA) requirements, the Federal Housing Finance Agency (FHFA) is obligated to submit an annual report to Congress concerning Fannie Mae’s and Freddie Mac’s guarantee fees.”

Mortgage Professional America - “Seven indicted in multimillion-dollar mortgage scheme” (6-30-15)

“Seven California residents have been indicted for allegedly taking part in a massive mortgage fraud scheme.  The seven Californians – Jyoteshna Karan, Praveen Singh, Mahendra Prasad, Phul Singh, Sunita Singh, Nani Isaac and Martin Bahrami – allegedly conspired to defraud mortgage lending companies and financial institutions by making false statements on loan and short sale applications to obtain properties both in their own names and in the names of others.”

Bruce Norris of The Norris Group will be speaking at Discover How to Create A $100,000 Payday Per Deal in 2015 – LAREIC on Tuesday, July 14.

Bruce Norris of The Norris Group will be having its Property Buying Bootcamp Tuesday, July 21 to Thursday, July 23.

Bruce Norris of The Norris Group will be presenting the 8th annual I Survived Real Estate 2015 on Friday, October 16.

 

Copyright: Image from www.flickr.com/photos/peddhapati/

 

Looking Back:

The NAHB saw a major accomplishment this week when the Supreme Court ruled the EPA could not require pre-construction permits for greenhouse gasses emitted on multifamily and commercial homes.  According to the latest National Association of Realtors report, pending home sales increased 6.1% month-over-month but decreased 5.2% year-over-year.  In a unique news story, a 91-year old woman bought a house for the first time in her life.

 

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.

 

 

Smart Phones for Smart Homes

Monday, June 29th, 2015

 

Today’s News Synopsis:

 

Recent data from the NPD Group Connected Intelligence Home Automation Advisory Service showed more and more millennials are having a smart product of some kind installed in their home.  Consumer complaints submitted to the CFPA regarding financial services have just been released.  Existing home sales that are still pending increased 0.9% to 112.6 according to the latest pending home sales index.

 

In The News:

Bloomberg - “Pending Sales of U.S. Existing Homes Climb to Nine-Year High” (6-29-15)

“Contracts to purchase previously owned U.S. homes rose in May to a nine-year high, indicating recent strength in the real-estate industry will be sustained.  The pending home sales index increased 0.9 percent to 112.6, the highest since April 2006, after a revised 2.7 percent advance in the previous month, the National Association of Realtors said Monday in Washington.”

DS News - “GSEs Combine for Q1 Net Income of $2.4 Billion” (6-29-15)

“Freddie Mac and Fannie Mae experienced a substantial increase in their net income for the first quarter. The Federal Housing Finance Agency (FHFA) released the Quarterly Performance Report of the Housing GSEs Monday analyzing the first quarter earnings and other contributing factors that boosted these GSEs’ incomes.”

Mortgage Professional America - “CFPB releases complain data” (6-26-15)

“The Consumer Financial Protection Bureau released over 7,000 complaints from consumers against financial services providers — including many big banks regarding mortgages — which originators can use to win potential clients.”

Bloomberg - “Homebuyers Sign on Dotted Line to Bolster U.S. Housing Rebound” (6-29-15)

“The U.S. housing recovery is thriving, and home sellers have the signed contracts to prove it.  A measure of pending sales of previously owned properties increased 0.9 percent in May to 112.6, the highest since April 2006, after a revised 2.7 percent advance in the previous month, the National Association of Realtors said Monday in Washington. It marked the fifth straight gain, the longest such stretch since the period ended June 2013.”

Housing Wire- “High-rise FHA loans push mortgage risk index up in May” (6-29-15)

“The composite National Mortgage Risk Index for Agency purchase loans stood at 12.33% in May, up 0.4 percentage point from the average for the prior three months and up 0.7 percentage point from a year earlier.”

DS News - “SFR Vacancy Rate Stays Flat While Delinquency Rate Rises Slightly” (6-29-15)

“Vacancy rates among single-family rental securitizations remained relatively flat month-over-month despite a general trend of a rising number of lease expirations,  according to data reported by Morningstar Credit Ratings in its June 2015 Single-Family Research: Performance Summary Covering All Morningstar Rated Securitizations released Monday.”

Mortgage Professional America - “Morning Briefing: Millennial homes are getting smarter” (6-29-15)

“Millennials are keen to embrace new technology in homes according to a new survey. The NPD Group Connected Intelligence Home Automation Advisory Service shows that American millennials are twice as likely as the total population to have a smart home product installed in their residence.”

Bruce Norris of The Norris Group will be speaking at Discover How to Create A $100,000 Payday Per Deal in 2015 – LAREIC on Tuesday, July 14.

Bruce Norris of The Norris Group will be having its Property Buying Bootcamp Tuesday, July 21 to Thursday, July 23.

Bruce Norris of The Norris Group will be presenting the 8th annual I Survived Real Estate 2015 on Friday, October 16.

 

Copyright: Image from www.flickr.com/photos/mikecogh/

 

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.

 

 

New home sales increase 2.2% Month-Over-Month

Friday, June 26th, 2015

 

 

 

Sources:

 

Today’s News Synopsis:

 

In this week’s video Aaron Norris gives the news of the week in the world of real estate.  New home sales increased last month by 2.2% month-over-month.  However, this news is not as good as it sounds since most of the home sales were the result of a large increase of sales in the Northeast, which in turn was a result of New York state’s Program 421-a expiring.  Bank of America Merrill Lynch just released a new chart showing which investments are most at risk due to increasing interest rates.  Despite the latest ruling in the disparate impact claims case, people still have to be careful when presenting there case as certain aspects could still be considered unconstitutional, including racial targets and quotas.

 

In The News:

DS News - “Former FDIC Chair to Deliver Keynote Address at Women in Housing Leadership Forum” (6-26-15)

“Former Federal Deposit Insurance Corp. chair Sheila Bair has announced as the keynote speaker for the Third Annual Women in Housing Leadership Forum at the 12th Annual Five Star Conference and Expo on September 18 in Dallas, according to an announcement from the Five Star Institute.”

Housing Wire- “Hurdles remain for disparate impact claims in housing despite SCOTUS ruling” (6-26-15)

“On Thursday the Supreme Court ruled in a contentious and qualified opinion that the legal doctrine of “disparate impact” is cognizable under the Fair Housing Act, but a closer look at the ruling shows it may not be as perilous for the mortgage industry as initially thought.”

Mortgage Professional America - “Organization makes plea that will benefit originators” (6-26-15)

“The U.S. Conference of Mayors is urging the U.S Department of Housing and Urban Development, Fannie Mae and Freddie Mac to sell non-performing mortgage loans to non-profit organizations instead of Wall Street investors”

Bloomberg - “BofAML: These Asset Classes Are Most at Risk When Interest Rates Rise” (6-26-15)

“As we enter the second half of the year, more and more investors are talking about when the Federal Reserve will first increase its benchmark interest rate. A number of FOMC members have continued to speak out on a liftoff sometime this year, so it’s no wonder that investors and analysts are thinking about which asset classes are the most exposed to the loss of zero interest rate policies, or ‘Zirp’.”

Housing Wire- “Digging deeper: May new home sales increase has weak foundation” (6-26-15)

“Sales of new single-family houses in May 2015 came in Monday at a seasonally adjusted annual rate of 546,000, which is up 2.2% from April.  And looking at the report on an annual basis, May new home sales were a staggering 19.5% above the May 2014 estimate of 457,000, with huge gains in the Northeast region markets.”

DS News - “Wells Fargo Leader Named Chairperson of National Mortgage Servicing Association” (6-26-15)

“J.K. Huey, SVP of asset management and preservation with Wells Fargo Home Mortgage, has been appointed the chairperson of the Five Star Institute National Mortgage Servicing Association (NMSA), according to an announcement from Five Star.”

Mortgage Professional America - “Millennials more optimistic about home buying” (6-26-15)

“U.S. millennials are becoming more optimistic about home ownership and may gain market share in the latter half of the year, according to new data from realtor.com.”

DS News - “HUD Appropriations Bill Passes in Senate Committee” (6-26-15)

“The U.S. Senate Committee on Appropriations recently approved the FY2016 Transportation, HUD (THUD), and related agencies Appropriations Bill. The major goals of the bill are to increase the efficiency and affordability of federal housing programs and provide funding for transportation and infrastructure priorities, working within the guidelines of the Budget Control Act. The bill was approved on a 20-10 vote.”

Bruce Norris of The Norris Group will be speaking at Discover How to Create A $100,000 Payday Per Deal in 2015 – LAREIC on Tuesday, July 14.

Bruce Norris of The Norris Group will be having its Property Buying Bootcamp Tuesday, July 21 to Thursday, July 23.

Bruce Norris of The Norris Group will be presenting the 8th annual I Survived Real Estate 2015 on Friday, October 16.

 

Looking Back:

Mortgage rates decreased again and were at levels below 2014.   30-year rates stood at 4.14%, and 15-year rates were at 3.22%.  The number of foreclosures completed was only half of what it was before according to a recent report by the Office of the Comptroller of the Currency.  90,852 foreclosures were completed in the first quarter, down 50% for the quarter and 33.9% year-over-year.  Recent date from Trulia showed there was not expected to not be another housing bubble anytime soon due to an increasing number of undervalued homes.

Copyright: Image from www.flickr.com/photos/nicksee/

 

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.

 

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Almost 8,000 Consumer Complaints Published by the CFPB

Thursday, June 25th, 2015

 

Today’s News Synopsis:

 

In a ruling by the Supreme Court today, discriminatory claims under the Fair Housing Act may legally utilize disparate impact claims.  More and more millennials are gaining confidence when it comes to buying a home.  Almost 8,000 consumer complaints were published by the CFPB regarding consumers’ issues with financial companies.

 

In The News:

Housing Wire - “MERS victorious in Georgia federal and state courts” (6-25-15)

“MERSCORP Holdings, Inc. won again in two separate courtrooms in Georgia recently, continuing its string of winning legal challenges to its ability to assign a mortgage.  According to a release from MERS, the United States District Court for the Northern District of Georgia recently dismissed a quiet title claim in Dean v. Mortgage Elec. Registration Sys.”

DS News - “CFPB Publishes Nearly 8,000 Consumer Complaint Narratives For the First Time” (6-25-15)

“For the first time, more than 7,700 consumer complaints about problems they are facing with financial companies concerning mortgages, bank accounts, credit cards, and debt collection, among others, were released today by the Consumer Financial Protection Bureau (CFPB) on their Consumer Complaint Database, according to a press release. The Bureau is also requesting input on how to engage the public in this influx of information so that consumers can understand the information and make comparisons.”

Housing Wire - “OCC: Mortgage performance better in 1Q15″ (6-25-15)

“The performance of first-lien mortgages serviced by eight national banks improved during the first quarter of 2015, according to the Office of the Comptroller of the Currency’s quarterly report on mortgage performance.”

DS News - “Democratic Senators Call For Investigation of Possible Discrimination in REO Maintenance” (6-25-15)

“A group of Democratic Senators led by Bob Menendez (D- New Jersey) has written a letter to the leaders of several government agencies calling for an investigation to determine if banks and lenders violated the Fair Housing Act by neglecting maintenance of foreclosed and REO homes in minority-dominated neighborhoods.”

Bloomberg - “Buyout Firms Join Apartment Hunt With Rentals in Vogue: Real M&A” (6-25-15)

“Buyout firms are apartment hunting again.  An affiliate of private equity firm Lone Star Funds agreed this week to acquire apartment real estate investment trust Home Properties Inc. for about $7.6 billion including debt. It marks the largest takeover of a U.S. apartment REIT since the buyout boom of 2007, and more may be on the way.”

Housing Wire- “Millennials getting more positive about homebuying” (6-25-15)

“Millennials have become more positive when it comes to taking the plunge into home ownership and are primed to gain market share in the second half of the year, according to the results of realtor.com’s consumer behavior survey of more than 12,000 respondents conducted from Jan. 1, 2015 to June 15, 2015.”

Mortgage Professional America - “Supreme Court upholds disparate impact” (6-25-15)

“The Supreme Court ruled today that the doctrine of disparate impact can continue to be used to challenge discriminatory outcomes under the Fair Housing Act, even if there was no intent to discriminate.”

Housing Wire- “Senate Appropriations Committee approves $55B housing, transportation bill” (6-25-15)

“The Senate Committee on Appropriations today approved the FY2016 Transportation, Housing and Urban Development, and Related Agencies Appropriations Bill, making the $55.65 billion measure available for consideration by the Senate.”

Bruce Norris of The Norris Group will be speaking at Discover How to Create A $100,000 Payday Per Deal in 2015 – LAREIC on Tuesday, July 14.

Bruce Norris of The Norris Group will be having its Property Buying Bootcamp Tuesday, July 21 to Thursday, July 23.

Bruce Norris of The Norris Group will be presenting the 8th annual I Survived Real Estate 2015 on Friday, October 16.

 

Looking Back:

The Mortgage Bankers Association reported a 1% decrease in mortgage applications from the previous week.  GDP decreased in the first quarter by 2.9%, which was actually below expectations from analysts. HARP Refinancing was expected to be heavily pushed for again by the regulator for Fannie Mae and Freddie Mac in order to help those with little to no equity.

Copyright: Image from www.flickr.com/photos/sylvar/

 

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.

 

TRID Decision May Be Delayed Yet Again to October

Wednesday, June 24th, 2015

 

Today’s News Synopsis:

 

The Mortgage Bankers Association reported an increase in both refinance and purchase applications.  The refinance index increased 2%, while applications increased 1.6%.  Half of the states in the country now have stable housing markets with the prosperous buying season in the spring.  The CFPB, which had already postponed the decision on TRID, now wants to delay it until October.

 

In The News:

Housing Wire - “CoreLogic Chief Economist: Here’s how new policies can help homeownership” (6-24-15)

“The decline in the homeownership rate has been very steady, Frank Nothaft, chief economist for CoreLogic, said in an interview with HousingWire.  The rate has returned to what it was 20 years ago and is more severe for younger age groups, he explained.”

DS News - “Spring Homebuying Season Pushes Half of States Into ‘Stable’ Housing Market Range” (6-24-15)

“More than half of the states plus the District of Columbia, along with more than a third of the nation’s largest metro areas, were categorized as in the “stable” range in April on the strength of a healthy spring homebuying season, according to Freddie Mac’s April 2015 Multi-Indicator Market Index (MiMi) released Wednesday.”

Mortgage Bankers Association - “Refi, Purchase Applications Both Up in Latest MBA Weekly Survey” (6-24-15)

“Mortgage applications increased 1.6 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending June 19, 2015.”

Mortgage Professional America - “State sets sights on mortgage relief scams” (6-24-15)

“New York’s attorney general has kicked off a public awareness campaign that is taking aim at “mortgage rescue” scams.  Many companies – including legitimate law firms – making false promises of offering mortgage debt relief are making off with client money.”

DS News - “Fed Vice Chairman Speaks On Evolution of Supervisory Stress Tests” (6-24-15)

“Speaking at the Riksbank Macroprudential Conference in Stockholm, Sweden, on Wednesday, U.S. Federal Reserve Vice Chairman Stanley Fischer related to the audience the critical role that stress tests played in restoring the U.S. financial system to health and of the continued evolution of those tests over the last six years.”

Housing Wire- “Whistleblowers to testify on discrimination at CFPB” (6-24-15)

“For more than a year, the House Financial Services Committee has investigated serious allegations of discrimination and retaliation against employees at the Consumer Financial Protection Bureau.”

DS News - “CFPB Issues Proposed Amendment to Delay TRID Effective Date Until October 3″ (6-24-15)

“The Consumer Financial Protection Bureau (CFPB) has announced a proposed amendment to the Know Before You Owe mortgage rule, commonly known as the TILA-RESPA Integrated Disclosure (TRID) rule, which would move the effective date of the rule to Saturday, October 3, 2015.”

Mortgage Professional America - “Underwater mortgages dropping” (6-24-15)

“New stats from CoreLogic show that 254,000 homes regained equity in the first quarter of this year, and the share of underwater mortgages has dropped to 10.2 percent.”

Bruce Norris of The Norris Group will be speaking at Discover How to Create A $100,000 Payday Per Deal in 2015 – LAREIC on Tuesday, July 14.

Bruce Norris of The Norris Group will be having its Property Buying Bootcamp Tuesday, July 21 to Thursday, July 23.

Bruce Norris of The Norris Group will be presenting the 8th annual I Survived Real Estate 2015 on Friday, October 16.

 

Looking Back:

The MBA expected high return of commercial and multifamily originations this year with the increase in housing volume.  Sales of newly constructed homes increased 18.6% and stood at 504.000.  According to the latest Case-Shiller Index, home prices increased 10.8% in 20 U.S. cities, falling short of expectations.

Copyright: Image from www.flickr.com/photos/dougww

 

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.

 

Jumbo Reverse Mortgages Gaining Popularity Among High-Value Homeowners

Tuesday, June 23rd, 2015

 

Today’s News Synopsis:

 

The latest data from the Commerce Department showed new home sales increased last month by 2.2% to 546,000, their highest since 2008.  Home prices also increased by 0.3% the prior month according to the FHFA.  High-value homeowners are taking a bigger interest in something new: jumbo reverse mortgages

 

In The News:

Housing Wire - “Three American cities score high on global luxury list” (6-22-15)

“What do San Francisco, Los Angeles and Miami have in common besides beaches and tourist attractions? Real estate. All three cities are all on the list of the top ten luxury real estate markets in the world released by Knight Frank.”

Bloomberg - “Sales of New U.S. Homes Rise to Highest Level in Seven Years” (6-23-15)

“Purchases of new homes in the U.S. rose in May to the highest level in seven years, signaling the industry is gaining momentum heading toward the second half of the year.  Sales climbed 2.2 percent to a 546,000 annualized pace, exceeding all forecasts in a Bloomberg survey of economists and the most since February 2008, Commerce Department data showed Tuesday in Washington. Readings for February through April were revised up.”

DS News - “CoreLogic Launches New Compliance Solution to Help Lenders With TRID” (6-23-15)

“CoreLogic recently announced the release of its LoanSafe Compliance Manager, a new solution to help lenders comply with a broad array of federal, state, and local residential mortgage lending regulations, including the upcoming TILA-RESPA Integrated Disclosure (TRID) rule.”

Realty Trac - “Can Boomerang Buyers Spark A Real Estate Revival?” (6-23-15)

“Boomerang buyers are out there by the millions, possible purchasers with the potential to heat up the real estate marketplace and with it large parts of the U.S. economy. And yet while the real estate industry is ready to gleefully welcome such buyers the path back to homeownership may be more difficult than expected.”

Mortgage Professional America - “Jumbo reverse mortgage a hit with high-value homeowners” (6-23-15)

“The popularity of reverse mortgages is growing among consumers – and one company is taking that concept to stratospheric levels.  Urban Financial of America, LLC (UFA), one of the top lenders of reverse mortgages in the United States, introduced its HomeSafe proprietary reverse mortgage in September – offering loan proceeds of up to $2.25 million, compared to traditional reverse mortgages or Home Equity Conversion Loans (HECMs), which currently have legislated maximum available loan proceeds of $469,125.”

Bloomberg - “U.S. Home Prices Rose 0.3% in April, FHFA Says” (6-23-15)

“U.S. home prices rose less than economists estimated in April as sellers put more properties on the market.  Prices climbed 0.3 percent on a seasonally adjusted basis from March, the Federal Housing Finance Agency said in a report Tuesday. The average economist estimate was for a 0.5 percent increase, according to data compiled by Bloomberg.”

Housing Wire- “Fannie Mae: Economic rebound on the horizon” (6-23-15)

“Recent indicators suggest that the U.S. is experiencing a moderate rebound in economic growth in the current quarter following a temporary drop in activity in the first quarter, according to Fannie Mae’s Economic & Strategic Research Group.”

DS News - “Five Star Partners With Industry to Launch Mortgage Diversity Council” (6-23-15)

“The Five Star Institute has announced the launch of the American Mortgage Diversity Council (AMDC), a member organization comprised of industry leaders and advocates focused on shaping the diversity agenda for the mortgage industry.”

Mortgage Professional America - “Newly creditworthy buyers to ‘flood’ mortgage market” (6-23-15)

“According to a recently released study by credit agency TransUnion, 1.5 million Americans who were forced out of the housing market by the housing crash will flood the housing market in the next two years.”

Bruce Norris of The Norris Group will be speaking at Discover How to Create A $100,000 Payday Per Deal in 2015 – LAREIC on Tuesday, July 14.

Bruce Norris of The Norris Group will be having its Property Buying Bootcamp Tuesday, July 21 to Thursday, July 23.

Bruce Norris of The Norris Group will be presenting the 8th annual I Survived Real Estate 2015 on Friday, October 16.

 

Looking Back:

Existing home sales increased by an impressive amount the previous month with the increase in inventory and improving prices.  Existing home sales increased 4.9% month-over-month and were at 4.89 million. The number of failed banks stood at 11 with the closure of two subsidiaries of River Valley Bancorp.  Inventory for homes increased 11.8%, although most of the homes were purchased by the middle class

Copyright: Image from www.aag.com

 

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.

 

Existing-Home Sales Increase Significantly, But What Does This Mean for the Housing Market?

Monday, June 22nd, 2015

 

 

Today’s News Synopsis:

 

Existing-home sales increased significantly to their highest in 6 years with the increase in homebuyers last month.  However, this news has actually caused concern for people at organizations like Capital Economics as this increase in sales means totals sales increased 9% year-over-year and may not be able to increase anymore without losing sustainability.  The American Enterprise Institute reported an increase to record highs for the May 2015 First-Time Buyer Mortgage Risk Index.

 

In The News:

Bloomberg - “More First-Time Buyers Drive U.S. Home Sales to Best Since 2009″ (6-22-15)

“More first-time homebuyers took the plunge in May, helping catapult U.S. sales of previously owned properties to their highest level since 2009.  Closings on existing houses, which usually occur a month or two after a contract is signed, rose 5.1 percent to a 5.35 million annualized rate, the National Association of Realtors said Monday.”

DS News - “Investors Revive Suit Against U.S. Bank in State Court Over $743 Billion Worth of RMBS” (6-22-15)

“A group of dozens of investors, led by BlackRock, Inc., have revived a lawsuit in a New York state court that was dismissed in a federal court last month, accusing U.S. Bank of failing in its duties as trustee for more than $743 billion worth of mortgage backed securities.”

Mortgage Professional America - “Originators can celebrate latest housing starts” (6-22-15)

“May home sales were greater than any previous May since RE/MAX began publishing its National Housing Report in 2008.  ”Many positive factors are contributing to a strong housing market this year. Job growth and wages are slowly improving, while rents are increasing rapidly and mortgages are becoming much more accessible,” Dave Liniger, RE/MAX, CEO, chairman and co-founder said in an official release..”

Realty Trac - “How to Help a Homeowner Understand Their Foreclosure Options” (6-22-15)

“Every real estate investor knows that the success of our businesses depends on our ability to find motivated sellers who are willing to sell us their houses for less than retail price. With the recent housing downturn, it seemed like practically every market in America was flooded with short sales and distressed homeowners.”

Mortgage Professional America - “Morning Briefing: Millennial first-time property buyers return on Phoenix” (6-22-15)

“Realtors in Phoenix, AZ are reporting a return of first-time buyers especially millennials. The AZ Central reports that having shunned the commitment of a mortgage in recent years, millennials are now among the many buyers entering bidding wars for properties.”

Housing Wire - “Concerns lurk beneath the good news in May existing-home sales” (6-22-15)

“Existing-home sales increased in May to their highest pace in nearly six years, according to the National Association of Realtors, but what’s really behind the numbers and what do they mean?.”

Mortgage Professional America - “Who is best equipped to handle TRID?” (6-22-15)

“Smaller lenders are enjoying a better recovery following the housing market downturn than their big bank counterparts, and industry players are pointing to a number of reasons for the phenomena.”

DS News - “Agency First-Time Buyer Risk Index Reaches Series High” (6-22-15)

“The May 2015 First-Time Buyer Mortgage Risk Index (FBMRI) for agency loans reached a series record of 15.66 in May, an increase of half a percentage point from the previous three months and 1.1 percentage points from May 2014, according to data released Monday by the American Enterprise Institute (AEI)’s International Center on Housing Risk.”

Bruce Norris of The Norris Group will be speaking at Discover How to Create A $100,000 Payday Per Deal in 2015 – LAREIC on Tuesday, July 14.

Bruce Norris of The Norris Group will be having its Property Buying Bootcamp Tuesday, July 21 to Thursday, July 23.

Bruce Norris of The Norris Group will be presenting the 8th annual I Survived Real Estate 2015 on Friday, October 16.

 

Copyright: Image from www.flickr.com/photos/hockeyholic/ and www.flickr.com/photos/jwthompson2/

 

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.

 

Despite Positive Forecast, Whether Housing Starts Will Return to Pre-Recession Levels is Still Unknown

Friday, June 19th, 2015

 

 

 

Sources:

Foreclosure activity hits 19-month high on rise in REOs
Number of Properties With Equity Is Rising While Total of Underwater Homes Declines

 

Today’s News Synopsis:

 

In this week’s video Aaron Norris gives the news of the week in the world of real estate.  More investors are looking to Cuba for future investment opportunities with the impending lifting of embargo.  The recent news story that plans for changes to the  TILA-RESPA Integrated Disclosure have been met with positive feedback.  Despite forecasts for housing starts being they will increase by almost 40%, it is still unknown if they will return to pre-recession levels.

 

In The News:

DS News - “Five Takeaways from Treasury Secretary Jack Lew’s Testimony Before Congress” (6-19-15)

“During his testimony this week before the full House Financial Services Committee, U.S. Department of Treasury Secretary Jack Lew stated when asked about GSEs and the conservatorship that the system should be restructured, but the time was not right for the conservatorship to end.”

Housing Wire- “CUNA discovers discrepancy in CFPB’s TRID rule, seeks answers” (6-19-15)

“The Credit Union National Association asked the Consumer Financial Protection Bureau to clarify a discrepancy and to exempt credit unions that make five or fewer mortgages in a calendar year from the Know Before You Owe rule, which includes the TILA-RESPA Integrated Disclosures in a letter Friday.”

Mortgage Professional America - “‘Friendship’ threatens key housing markets” (6-19-15)

“Cuba is becoming a hot market for investors as an embargo against U.S. investment could be lifted soon, opening up opportunities for the first time in more than 50 years, according to an Akerman U.S. Real Estate Survey.”

Bloomberg - “Goldman, Deutsche Bank Said to Compete for $4.8 Billion of Loans” (6-19-15)

“Goldman Sachs Group Inc. and Deutsche Bank AG are competing to buy Irish real estate loans with a face value of 4.2 billion euros ($4.8 billion) from Lloyds Banking Group Plc, according to people with knowledge of the matter.”

Housing Wire- “Aggregate market value of housing nearing 4Q06 peak” (6-19-15)

“The aggregate market value of owner-occupied housing hit its high point in the last part of 2006, reaching a high-watermark of $22.5 trillion.  Breaking that down, first lien mortgage and home equity loan debt outstanding equaled $9.9 trillion (44%) and homeowner equity equaled $12.6 trillion (56%).”

DS News - “Mortgage Industry Welcomes CFPB’s Proposed TRID Delay” (6-19-15)

“Taking the industry by surprise, Consumer Financial Protection Bureau (CFPB) Director Richard Cordray announced on Wednesday that a proposal has been released to delay the effective date of the TILA-RESPA Integrated Disclosure (TRID) rule. The proposal is requesting that the TRID rule be postponed until October 1, 2015 due to an administrative error. The rule was originally set to go into effect on August 1, 2015.”

Mortgage Professional America - “Huge opportunity for small originators” (6-19-15)

“Smaller lenders are enjoying a better recovery following the housing market downturn than their big bank counterparts, and industry players are pointing to a number of reasons for the phenomena.”

Housing Wire - “Will homebuilding ever return to the highs of 2006?” (6-19-15)

“While Capital Economics is forecasting housing starts to surge by almost 40% over the next few years, reaching 1.5 million by the end of 2017, they’re not so sure the industry will see a return to pre-recession 2006 levels.”

Bruce Norris of The Norris Group will be speaking at Discover How to Create A $100,000 Payday Per Deal in 2015 – LAREIC on Tuesday, July 14.

Bruce Norris of The Norris Group will be having its Property Buying Bootcamp Tuesday, July 21 to Thursday, July 23.

Bruce Norris of The Norris Group will be presenting the 8th annual I Survived Real Estate 2015 on Friday, October 16.

 

Looking Back:

It was expected that new and existing home sales would decrease 4.1% to 5.28 million homes this year, the first drop in four years.  Housing continued to remain affordable despite an increase in home prices.  Richard Cordray of the CFPB appeared before the House Financial Services Committee to answer several questions regarding everything from discrimination allegations and concerns about accountability.

Copyright: Image from www.flickr.com/photos/concrete_forms/

 

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.

 

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The Norris Group’s Craig Hill Joins Bruce Norris on the Real Estate Radio Show #439

Friday, June 19th, 2015

Craig_Hill

 

Craig Hill

 

Norris Group Hard Money Lender


(Full Bio)


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Bruce Norris is joined this week by Craig Hill of the Norris Group. Craig is the gentleman you would be talking to if you were going to invest in trust deeds or borrowing money from the Norris Group.

Bruce asked Craig how long he has been in hard money, which he said it has been about 28 years. He asked Craig when he first started who was the typical borrower. Craig said back then the typical borrower was somebody who was an owner-occupant, meaning they lived in their home and had a first trust deed. They were either behind on their first or had another issue to solve, and they were looking to borrow $10-$20,000 to help solve a problem. Most of the trust deeds at that time were an average of $20-$40,000 seconds. At that time prices were progressing pretty well, so Bruce wondered if it was common to do another loan for that same person. Craig said unfortunately there were cases where somebody would borrow money, although he said personally he would do it twice. If they can’t solve it in two segments, then there is something inherently wrong. However, there was definitely always equity to be pulled.

Bruce said the entire business really dealt with somebody who had equity and lived in the house. When Bruce and Craig met, it was an interesting day for Bruce because he was busy buying lots of houses and ran out of money. He sat right in front of Craig, and for the first time he had an investor with whom he had to deal. It was not an easy pill to swallow for the one who owned the hard money loan business and was thinking of loaning to an investor instead of an occupant. Craig said it was a challenge that shocked him.

As an example, Bruce was buying $100,000 houses in Moreno Valley just to make the number simple for $40,000. Typically, a hard money company would lend $60-$70,000 on the house, but it was hard for Craig to get the owner to lend Bruce what he paid for the house at $40,000. It was a long process to get it started and the realization that the house had as much value as the other house. The only difference was the house with the owner-occupant had somebody who was not credit-worthy, and this one had somebody who was absolutely credit-worthy and somebody to whom you should be lending money. It is funny how this has flip-flopped over the years. The investor world did not have access to that money. Bruce remembered thinking how this was a great tool at the time because of auctions.

Craig did the appraisal for the first two loans Bruce had, and he got more money than he paid for the property. When Craig told him how much he could borrow, Bruce asked him if it was a problem that he was loaning him more than he paid. However, because he sensed this he remembered writing a check for six months payments on each house. He had never talked to the business owner, but it would have dawned on him this was a different kind of person. This eventually changed what hard money was because until Craig and Bruce met, a house was worth what you paid for it. If somebody paid $40,000 for a house, then that is what it was worth. Even though the one next door is worth $100, that one was only worth $40. Over time they really changed the model.

Bruce said what was also interesting was Craig was now able to go to a HUD auction, and he gave Bruce a $1 million credit letter. This was great because he had bought a house for $40 grand, and they actually took a pen, crossed off the million, and said he now has $960. He could not believe it. What it also did for the business was instead of having to loan one loan to one troubled person, then two years later getting a refi, this was not the model anymore. When Bruce went to an auction, Craig could not wait until the next morning when the facts would come over on how many deals he bought. He would get half a dozen deals, and he did not have to worry about chasing money. Bruce said he never understood trying to work all the angles to where he has all the money directly. He got paid really well by finding the next deal, and he really did not want to think about where the $40 grand would originate. He accepted it as a cost of doing business. However, it was not so much a cost as much as it was an opportunity fee where if he did not have access to it he would not have been able to attend the HUD auctions. He really appreciated the access to the money.

Having that part of it solved is really amazing because it really helps you leverage your whole business. The question is whether there is a net cost if on their own they can do two loans/properties/deals. With leveraging money, they can do four deals. At the end of that year if they make more money, there is a cost to using the money. However, overall there is a benefit. Bruce ended up with the same issue they had talked about in another session where he had access to unlimited money as well as monthly payments. Just because you can buy it does not mean you should want it right now.

This is one thing Craig has always used with clients. A lot of times they will ask him how much they can borrow or how many he will do. He always then asks them how many monthly payments they can afford. This is really where they should stop. The thing with dealing with investors is sometimes you can be a really good buyer, but you do not have the other processes down as well as you should. Bruce was neither a contractor nor a salesperson as far as exiting the house. He could buy well, but he was also delegating a lot of the processes after that. One of the things he had to learn himself was that he had 20 hard money loans, is counting on seven closings, and only two happened. You have to have reserves, and ultimately they have to tell people it will not be as easy as you may think.

Craig said it is not the best case scenario. This does exist, but not every time. When they first started the loan business, it was right at the end of the REO cycle. Bruce remembered thinking about who they were going to loan to after all the REOs go and there are no more auctions. Bruce thinks maybe it was part of his education as an investor since he had to go someplace else to find deals, but so did everyone else. Bruce found he was getting business without having to change the model. They did not have to go to commercial or land, they just had to deal with the same people who now had to find different properties in a different way. Craig thinks this is why our model has always been successful in trying to create a program that is attractive enough to the most successful people in the business. This way they will always want to borrow your money.

If it is not REOs they are buying, they will be sending out letters to homeowners. They will be doing something since that is their business. Just because the REOs are gone, it does not mean they will get a job somewhere else. They are property buyers. You had the same market you would have in 1998-2002, and Bruce had lived through this in the late 80s when you were definitely buying properties directly from people out of the MLS. All of a sudden, all the phone calls he got were from people who were over encumbered. There was a transition to go from buying directly from people to buying from auctions.
Bruce said what happens with experience is you recognize the next phase in advance. When the REO auctions were done by 1996, it was already in Bruce’s mind what things were like. This is the 80s again, and Bruce already had experience with that. He was surprised to see the loan business so busy with the same kinds of things, only bought from an owner. He did not know if there were enough people who knew how to do this. Craig has always been amazed how many people buy houses at a discount.

Bruce said one of the things they ended up doing because they had access to money they bought 93 lots in Rosamond and did 93 hard money construction loans. The company learned how to do construction loans, and they learned how to do construction projects in order to teach others to do the same. Perhaps one of the next phases for the Norris Group in the coming years is they will see construction projects created from scratch. You do not necessarily have to find the deal because you can create the deal, and this is the difference. They have already done a fair amount of construction loans in the last six months.

When we got to 2008/2009, we had REOs at an amazing price and very different from the discounts. It was not like you were getting 50% off what it was worth since it was worth 50% less than it was. Whatever your discount was, it put it in a range where it cash-flowed but investors could not get money. This was the big deal; so the question is how you get money. He went back to Washington D.C. and got an interview in front of Fannie Mae asking if they would loan a pile of money rather than four loans. The answer was no, so they were able to start a program at 9.9% at the time. This was a big deal.

When this program was started in 2009, it really did not exist. There was not a hard money company that was trying to attract people who were buying rentals. When they came out with an 8-year term at 9.9%, it allowed so many people to keep so many rentals priced so well. As a result of this now six years later, a lot of people really made a lot in equity over the years. What is also interesting about this was there were a lot of pieces to it. At the Norris Group, they picked an 8-year timeframe because of the cycles and seeing how they had a long way to go before it petered out. Getting 9.9% investor money would have never happened without a track record that is trusted.

There were a lot of elements that came together. They had a borrower come in who would have never been able to without a lot of pieces of the puzzle happening years prior. If you create an environment of successful investments, it makes it much easier to change course because they feel more comfortable with what you are recommending and why. Sometimes the market will change. What used to be the 12% turnaround became the 9%. The environment now has changed yet again, and it makes perfect sense. For the 9.9% program, they must have funded tens of millions of dollars. The last time Aaron showed it to him, they had funded $50 million worth of the loans. It was 3-4 notice of defaults they had out of the entire $50 million, and not one REO. For people who don’t know what an REO is, this meant not one property went back to an investor at the sale. This speaks on the quality of both the buyers and the borrowers. It is really their hats off to them since this speaks of people doing a really good job on that side.

Bruce asked what some of the misconceptions are that borrowers have regarding hard money. Craig said the biggest misconception they may get is they almost have this idea that since it is hard money, they do not need any money of their own. That is the most common call. The worst thing you can probably do is lend to somebody who does not have any money of their own. This is just a recipe for disaster. 90% of the time this would be the number one mistake people make with hard money. A lot of other people may have misconceptions that hard money is a different animal. Craig tells people hard money is like Bank of America money since the paperwork and process is identical. Hard money is a term and not a way of doing the loan.

Bruce has struggled with the term “hard money” since it did so much for him having access to it. The only thing hard about it for him was how hard it was to get the pile of money together for the person who put it up for him. He respects that somebody worked hard enough to give Bruce a chance to do what he needed. Paying them back and paying them on time was a big priority for him as it is for Craig. Bruce said this is one of the things he sees our industry abuse. They have access to it now, then all of a sudden they start doing things that are not acceptable. You always have to stay true to the process so you end up with a secured note or deed of trust. Sometimes if you get a little too casual with a relationship, this can happen.

When someone comes to talk about money, Bruce asked what would prevent them from saying yes. Craig said the number one thing would be if the client does not have enough liquid cash of their own. They look at a 30% rule, so if somebody wants to borrow or be approved for $200,000, they would want to see about $60,000 available to work that project. They will not have to have all that money in the project, but at the Norris Group they need to know it is there in case the client needs it for another reason. Without a doubt this is the number one reason. Other reasons are if somebody is in bankruptcy or other factors may affect the title of the property. Second, they say no more than anything because the customer has not found a good deal. They may think they have one and are anxious to do it, but once they start adding up the numbers and costs, they will probably go through the whole process only to not make any money. This is why not having a good deal is the second reason they say no.

Bruce asked if that because of the outreach in the education that sometimes they will receive a call from an out-of-state investor wanting to know if he is doing a good job. Craig said yes, and as an example they used to receive a lot more calls than this because of seminars. The people used to tell him how much they would buy it for and how much it needed in repairs. They would then tell Craig how much they were selling it for, and he would ask them how they came to that price. One person said it was because this was what the listing agent told him. He thought this was bizarre that somebody was making a decision based on information that really should not meant anything.

People need to know certain things like how much the house will sell for and how much it will take to fix it. If you miss either of these, you are going down a bad path. Bruce said this is hard to do from a distance. If you are calling California from Texas asking how much it will cost to fix it, you have to have a team on the ground you can trust that is not there yet. You are relying on people who are making commission or profit because of a yes answer from you and not a no answer. The classic comment was “We know we will not make any money on this one, but we are practicing.” This is not worth the practice. The broker will get paid, but the one putting up the money will not get anything. In a tight situation when a broker was involved, Craig would suggest putting his commission at the back side so that there was a little more in there and the rest they could deal with themselves. This never went over too well with the brokers.

Every once in a while Craig will tell Bruce about an investor who did not find a deal, but it found him. Craig said it is not uncommon for this. Sometimes he will receive a call, and can tell it is their first deal and they are relatively new at it. He will ask them to tell him how they found the deal. Often they will tell him that it was listed and had been for six months. Craig would say with all the investors out there looking at listings daily, a good deal will not last on the market that long. A lot of times what happens is people do not find their first deal but it finds them. Usually this means there is something hidden in there or it is a foundation issue. You really need to be careful about jumping in too quickly on the first deal.

Bruce heard a story of someone who bought a single-family, 20-acre property that had no permits or electric meters. Escrow was closed, and it turned out it used to be a former chicken coup. The broker was certainly happy to get commission on the sale, but that is literally after the fact. After they found out the meter was not there, they found out there was nothing structurally correct on the property. This is the wrong time to find out.

Bruce asked Craig what he thinks of the flips of the flips of the flips. This means he is dealing with the buyer, and suddenly he finds out it did not originate with the buyer but rather was flipped to him by someone else who in turn had it flipped to him. Bruce asked at what point this makes him feel like the designated back-holder. Craig said you always want to help the client with the initial numbers. They can analyze the deal and make sure they are not paying too much. Getting a deal from someone who flips properties may be a totally good deal, but most of the people who do the flips do not make a whole lot on every deal. Sometimes you will see a deal, or Rick Solis will note on the appraisal, that it was just recently bought for a certain amount and $80 grand has been added on to it. When you start to see numbers like that, you really want to caution people that maybe there is not any profit left in it for you.

At the Norris Group, they are now at a point where they have a brand new 6.9% program. This was actually what they had before the 9.9% program. This is a three-year loan that is now being used for new purchases or refinances of properties. New loans to the Norris Group are all available for this loan. There is also a prepay for the first year. What they tried to accomplish with this was they did a lot of research on what was available. Bruce was working with someone who wanted to be involved with them, so they could compete in a way at a lower interest rate since this is where a lot of the markets were going with banks and hedge funds.

At the Norris Group, they came to the fact that they wanted a product that was theirs. There would be no 20-page application or anything tricky about it. It would be exactly what they do. They have tried to find a niche for people who want to hold onto a property for a few years and then sell it. This helped them find a little niche in the market that nobody else was in at the time. It is an exciting new program they feel they will fund tens of millions of dollars through and have support from both sides. They are trusted with the money and have a borrower who deeds the interest rate. By doing this program, they can lend to really good borrowers they have had throughout the history of the company.

You can go to www.tngtrustdeeds.com for more information. Tune in next week as Bruce continues his talk with Craig Hill on the trust deeds side of the business.

Craig Hill on the Norris Group Real Estate Radio Show

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.