9/28/23 – Work Hard and Good Things Will Happen

Fun Market! OK, I lied, and for many of us, this is the most challenging market we have ever seen! Rates have never moved up this quickly in my 33 years in the business, plus adding the insurance issues to that and what’s next? I will tell you what is next and you will like it. Hard work will get you through this market and into a better, stronger market; if you do all the right things and work hard, you will be better.

The mental part of this business is sometimes the hardest to deal with. We are all supposed to say that business is excellent, and we all know that this is a line of Bull Shit! One or two people may have their best year this year, but 99% of us will have a poor year. We will all have a sub-par or poor year for the most part.

I am not comparing this year to 2020/2021 and saying it’s a bad year. I am comparing this to every other year, and this is a bad year. My team will close between 250-300 loans (I don’t want to look), and my company will close 700-800 deals, which is far from where it has been in the past. Existing home sales were over 5 Million every year and averaged closer to 5.5 million over the past ten years. This year will be the first year that existing home sales will be under 4 Million homes sold since 1990.

So here’s the deal. It’s not you; it’s the market! Well, that is only partly true! The market has a lot to do with it, but you have more to say, and if you work hard, good things will happen. Everyone wanted to buy a couple of years ago, and now nobody wants to buy. Not true! The buyer market has decreased due to affordability, but people still buy or sell. It just means it is harder to get business, and those who work hard will get it. I could easily shut down, play golf, and vacation until things get better, but instead, I am now looking at new niches that will bring in more business. It is harder to win in this market, but winning in a tougher environment is awesome! Keep your head up, keep fighting, and don’t let the BS around you allow you to feel bad about yourself. Yes, it is stressful, and money is tight, but you can get one more sale next month and two more in November if you fight and claw and hone your skills.

It’s not you; it’s the market, but you can improve this market by being a better you!

Condo / Townhome issues we know of now:

1. American Beauty Village – Insurance
2. Scenic Hills – Insurance
3. Mariposa – Litigation – Agreed upon, but not yet recorded
4. Bouquet Canyon Village – Insurance
5. Scenic Hills – Insurance
6. Madison – Litigation
7. West Creek / West Hills – Insurance
8. Cornerstone – Insurance
9. Canyon Oaks – new this week! LOL!

Please let me know if you hear something new on Condos or Townhouses. We will see premiums increasing, likely increasing the HOA Fees soon!

The blood bath of the past few days is over, and the market is flat right now. We will call that a win just because it’s been a tough month.

• 12-day escrows if your buyer is pre-approved - Conventional / FHA / Jumbo / Bridge
• We do loans in all states, so call me with anything you need.  
• Government Loans (FHA / VA) are in the high 6’s.
• Conventional Loans up to $726,200.00 are in the high low to mid 7’s.
• High Balance Loans $726,201.00-$ 1,089,300.00 are in 7’s
• Jumbo loans above $1,089,300 are in the 7’s
• Bank statement loans - They are available with 10% down again! 7’s and 8’s + depending on down and credit score.
• No income qualifier – 40% down with reserves! In the 6’s!
• 0 down loans are in the mid to high 7’s – 660 credit score min right now, up to $740,000.00.
• 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 8.25% with limited fees – But they get you where you need to go!
• 0 down California Dream for all Equity Share – Postponed until October???
• 3/2/1 Buydowns 2/1 Buydowns and 1/0 Buydowns are available at great start rates!

Interest rates are subject to change without notice! Above are LA County Loan Limits.

I am available all weekend on my cell if you have any questions or if someone is interested in buying a property! My cell is 661-714-6258, and my office line is 661-260-2970 ext. 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!