During Episode 102 of the HyperFast Agent Podcast, Thad Wise, the Vice President of First Savings Mortgage, discusses the benefits of having local lenders on your team of vendors at the HyperFast Sales Summit. You’ll also hear about unique lending products that can help you close more deals and get your clients into their dream homes.
- Thad has been in the lending business since 2005. He joined First Savings Mortgage in 2010.
- First Savings Mortgage is a local lender with 30 years of presence in their market.
- First Savings Mortgage offers some portfolio products and they also offer some internal bridge products because they have their own money.
- Thad met Dan Lesniak on his first day in real estate.
- Thad encourages you to work with a local lender. Local lenders can provide the ability to move faster than big banks.
- Local lenders can help you be creative in getting things done upfront so you can compete with cash offers if your client is fully ready.
- A bridge loan is a temporary loan to help somebody get into a house.
- The most common example of when a bridge loan is used is when you own your house but the down payment for your next house is sitting in the equity of your current property.
- If you need to borrow $100k out of your equity they will lend you money so you can put that down, and then sell the first house.
- Another place bridge loans come into play is downsizing.
- The last place bridge loans come into play is with cross collateral bridge loans. Here the client finds the perfect place but doesn't qualify to buy it without selling their first house. In this case, the buyer puts down what they can, the mortgage company lends one loan collateralized on both property A and property B, lets them buy the house and then they refinance when house A is sold into some kind of permanent financing.
- Thad uses bridge loans only when necessary. While he talks about bridge loans frequently, they probably only close on around ten per year.
- Bridge loans are better than they used to be and they're better than hard money.
- Bridge loans are something that can be utilized with move-up buyers.
- He discusses home equity lines of credit. Go to your database and call whomever you've sold to in the past ten years and recommend opening the home equity line of credit. Get them now before they're thinking about selling.
- Banks don't want to give you a home equity line of credit on a home that's about to be sold.
- While you're on the phone with that warm touch, go ahead and ask them for a referral as well.
- Thad always has a line of home equity open on his own homes.
- When Keri met Thad she didn't know what a cross collateral loan. It will save you when you have a client that can't qualify for two houses.
- Cross collateral loans are a way to serve clients you have who tell you they won't buy until they sell.
- Keri has gotten many deals done because of this product.
- Keri suggests making a video about encouraging your clients to get a home equity line of credit.
- On one occasion Keri decided to go with a different lender because they had a really unique loan product. Two weeks before the closing the guy stopped calling her back. Thad took care of it.
3 Key Points:
- Local lenders can provide the ability to move faster.
- Bridge loans are temporary loans some mortgage companies provide to help clients get into a house.
- A cross-collateral loan could be a gamechanger for you if you have two transactions on the line.
- “If you don't work with a local lender, I think that it's a disservice to your clients.” – Thad Wise
- “A bridge loan is a temporary loan to help somebody get into a house.” – Thad Wise
- "I encourage all of you to go to your database, anyone you sold a house to within the last ten years, just make a call to them." – Thad Wise
- “I always have home equity lines on my houses only because it's a place to pool cheap cash, whether you want to renovate, invest in something else, you can use it for whatever you want.” – Thad Wise
- “This could be a gamechanger for you when you have two transactions on the line.” – Keri Shull