Mike’s Mortgage Update

Sunday night, we were at dinner celebrating my mom’s birthday, even though she passed away eight and a half years ago. We went around the room, and everyone told a little story about themselves. My dad said my mom was a social butterfly, and when she passed, 15 to 20 people said she was their best friend because they spoke with her all the time. She would be doing laundry, cooking, cleaning, taking care of everyone, and somehow still talking to her sphere of influence. LOL. No, she was not a Realtor. She was a mom, a grandma, a wife, a sister, a friend, a daughter, a caretaker, and someone who genuinely loved people. She wanted everyone to be happy and to help everyone she could. My girlfriend, who had never met her, said, "She sounds a lot like you." Well, my mom did not believe in tough love. But I do. So I am about to yell at all of you with the most love I can give. 

I am usually busy enough to work until 8:00 PM every night, but the past couple of weeks have been slow. Yes, we keep opening a few escrows here and there, and yes, business is still happening, but my phone has been way too quiet. When I was younger, I used to worry when things got slow. I would start wondering if people were talking crap, spreading rumors, saying things like, "Mike is a serial killer," or even worse, "Mike is a dumb-shit." I do not worry about that anymore. I’m concerned about what is happening in this market. 

There are a lot of people sniffing around right now, but not enough people pulling the trigger. Buyers are looking, Sellers are hoping, Agents are begging, and everyone is waiting for the perfect moment. So I started texting some friends and asking what they thought was causing the slowdown. Here is what we came up with: the election, which is over today; Iran, which has been "over" about seven times already; high gas prices, which will probably be here for a few more months; life being really expensive, which is true and unfortunately probably not getting cheaper; and then graduation, Memorial Day, Juneteenth, Fourth of July, weddings, birthdays, showers, bachelor parties, vacations, beach days, and every other thing people use to delay making a decision. All of those things are real, but they are also what I call excuses. 

Here is the deal. You need to call me and give me business. LOL. No, that was just my dumb way of saying please. In all honesty, we all need to be more consistent right now. We need to do things we wouldn’t normally do to create business. Yesterday, I sent 25 texts to say hi, check in, and let people know I am looking to drum up business. I wanted to hear what they are doing and how they are feeling about the market. When that didn’t magically make the phone ring off the hook, I went online and started digging in a different way that could create long-term business. I texted a few friends from the past. I called an old friend I had been thinking about after driving down the street he grew up on. I wrote a letter to some friends I work with on business development so that we can put another event together. I finished voting, found a few more productive things to do, and eventually walked out to my car with a ballot in hand and dropped it in a Stevenson Ranch box. 

That is the point. When business feels slow, you cannot just sit there and stare at the phone. You have to move. You have to create activity. You have to reach out. You have to be uncomfortable. You have to do the little things that create the big things. I have an important meeting in LA today, but I will work all day. If I am not available, you know I will get back to all of you immediately. 

After 36 years in this business, I still wonder when the next loan is coming in. I am the top loan officer in Santa Clarita and one of the top 3 or 4 in all of Los Angeles County, and I am concerned when business slows in the middle of the year. Honestly, I think you should be too, but not in a panic way, but in a wake-up-and-go-fight-for-your-business way. 

We are 29 days from the second half of the year, and we have two holiday weekends in the next five weeks. That means more distractions, more excuses, and more people saying they will get serious "after the holiday." But your bills are not waiting until after the holiday. Your goals are not waiting until after the holiday. Your business is not going to magically fix itself after the holiday. So what are you going to do about it? How are you going to change? 

Now is the time to bear down and fight for your share. Do your open houses. Text 20 people a day. Call 10 more. Check in with old leads you haven’t heard from in over 6 months. That one call could turn into a $20,000 commission. Do one open house, or two, or ten. Call me and pick my brain. Real Estate is not an easy business, and if you are not putting in the effort, you will be subject to the ups and downs. The "up" might be one closing this quarter, and the "down" might be three quarters with zero closings. That is a dangerous way to live in this business. 

I know I am good at what I do. I also know I am committed to you, my clients, my company, my family, and my friends. Sadly, my business has always come first. I am not saying that is always the healthiest thing, but it is the truth. I care deeply about what I do, and I care deeply about helping the people around me win. 

So stop waiting for the market to get easier. Stop waiting for rates to drop. Stop waiting for buyers to stop being scared. Stop waiting for sellers to become realistic. Stop waiting for the holidays to pass. Stop waiting for the phone to ring. Create business, call people, text people, follow up, do open houses, talk to your past clients, reach out to old leads, and ask people how they are doing. Ask them what they are hearing, what they need, and be the person they think of when they finally decide to move. 

This market is not easy, but easy markets do not separate the pros from the pretenders. Markets like this do. So let's get to work, and yes, call me if you need help, ideas, numbers, strategy, motivation, or just someone to tell you to stop making excuses, and go make something happen. I say that with love. Mostly. 

Interest Rates

Yesterday started ugly and recovered! Today is flat so far. Tomorrow is going to be great day!    

Loan Programs Snapshot

• Government loans (FHA/VA/USDA): in the 5s and now low 6’s
• Conventional (≤ $832,750): low to mid 6s
• High-balance: mid to high 6s
• Jumbo: Mid to high 6s
• Bridge Loans 7.75-7.99

Additional options:

• Bank statement loans (10% down+)
• P&L loans (20% down, no bank statements)
• 0% down options (620+ score)
• DSCR loans (15% down)
• Bridge loans (~7.99%)
• Buydowns (3/2/1, 2/1, 1/0)
• Private Money loans – Hard Money
• Construction Loans
• 203K loans
• Fix and Flip Loans

Rates subject to change without notice. 

Condo Update

• Good news: None today
• Bad news: The Madisons / Madisons at Town Center look really bad at this point!   

We love your Non-Warrantable Condo loans!!

Need help checking a condo? Call me, and we can look it up in real time.

Also:

Full California "naughty list" available here:

https://mikemeena.com/non-warrantable-condos/

Let's Connect

If you or your clients, friends, or family need guidance, I'm here.

📞 661-291-2222 (Direct)

📞 661-714-6258 (Cell)

📞 661-260-2970 ext. 2222 (Office)

📧 Mike@AugustaFinancial.com

Sincerely,