Wingy is all grown up!

For those that think housing prices are going to continue to
increase...

Northern Virginia Available Homes Inventory

March 1, 2005(left number) April 2, 2006 (right number)
Alexandria City 121 846
Arlington County 159 807
Fairfax City 26 90
Fairfax County 800 5,764
Falls Church City 6 46
Loudoun County 708 3,369
Manassas City 34 269
Manassas Park 18 125
Prince Will. Cty 673 3,708

Source: Virginiamls.com



A couple of years ago I bought a house. Conforming loan, 30% down, 15
year fixed. I got it at 4.625%. Or, i could have gone through the
company Wingie was working for and paid 6.5%. Needless to say, I
didn't use Wingie as my mortgage broker.

Here's what I don't understand. Wingie is promising his investors 12%.
Lenders are climbing over each other to re-fi stuff in the mid 6%
range. If I want to borrow money against real estate, under the
conditions Wingie has on his website (70% loan to value, no rural, no
construction loans, no rehab, etc) why would I go to him and pay 12%+?

You would go to him because you're working as a dealer, valet,
dancer/stripper, etc and 75% of your income is in tips which you don't
100% report to the IRS. So, your income tax return "says" you only make
$25,000 a year and you want to buy a $250,000 house. No bank will loan
you that much money given your reported income.

But, Wingy will at around 14% to 15%.... you pay him for a couple years
and now have a record of timely payments to show a banks financial
officer. You've shown you can make the payments and the bank is now
happy to loan you the money you need to pay off Wingy's loan and get a
new loan at normal rates.

Wingy is laughing all the way to the bank since the worst thing you can
do to him is pay off his loan. If you default on the loan, he gets the
house for 70% of it's value. He'll have to pay roughly 10% of the value
in lawyer fees but it's still a win/win situation for Wingy.

Wingy is making his money from people that are cheating the government
so it's probably not so bad that he's "cheating" them with his loan
rates. They end up with a house and he ends up with the money. Las
Vegas was made for Wingy... lots of people trying to get rich off of
other poor souls/suckers... Definately a target rich environment for
anyone willing to take advantage of the situation.


John

Richard Riley wrote:


Here's what I don't understand. Wingie is promising his investors 12%.
Lenders are climbing over each other to re-fi stuff in the mid 6%
range. If I want to borrow money against real estate, under the
conditions Wingie has on his website (70% loan to value, no rural, no
construction loans, no rehab, etc) why would I go to him and pay 12%+?

(sorry for not trimming the quote, Google doesn't seem to let me)

I called a couple of mortgage brokers in Las Vegas to ask them if it
made sense. I stipulated Wingies limits - 70% loan to value, no rural,
no construction loans, no rehab, etc. I also stipulated no
documentation of income and a 400 credit score. They said they could
do a 30 year fixed in the mid 7% range.

In the current environment, the only loan they'd demand 12% for would
be a second trust deed for someone in deep trouble - missed 1st
trustdeed payments, no job and no prospect for one, no cash on hand.
AND a terrific rate on the first trust deed that they don't want to
lose by refinancing the whole thing and getting cash out. The broker
would make his money on the points, the interest rate would pass
through to the investor.

Maybe there's a niche market for that kind of loan in Las Vegas - but
the people I talked to said they see that situation perhaps once a
year.

Richard Riley wrote:
(sorry for not trimming the quote, Google doesn't seem to let me)

I called a couple of mortgage brokers in Las Vegas to ask them if it
made sense. I stipulated Wingies limits - 70% loan to value, no rural,
no construction loans, no rehab, etc. I also stipulated no
documentation of income and a 400 credit score. They said they could
do a 30 year fixed in the mid 7% range.

In the current environment, the only loan they'd demand 12% for would
be a second trust deed for someone in deep trouble - missed 1st
trustdeed payments, no job and no prospect for one, no cash on hand.
AND a terrific rate on the first trust deed that they don't want to
lose by refinancing the whole thing and getting cash out. The broker
would make his money on the points, the interest rate would pass
through to the investor.

Maybe there's a niche market for that kind of loan in Las Vegas - but
the people I talked to said they see that situation perhaps once a
year.

When posting from Google, click the "show options" then "reply"
buttons. If you use the instan "reply" you get what shows above, i.e.,
no quoted text and can't tell who you replied to.

Harry K

Richard Riley wrote:
(sorry for not trimming the quote, Google doesn't seem to let me)

I called a couple of mortgage brokers in Las Vegas to ask them if it
made sense. I stipulated Wingies limits - 70% loan to value, no rural,
no construction loans, no rehab, etc. I also stipulated no
documentation of income and a 400 credit score. They said they could
do a 30 year fixed in the mid 7% range.

In the current environment, the only loan they'd demand 12% for would
be a second trust deed for someone in deep trouble - missed 1st
trustdeed payments, no job and no prospect for one, no cash on hand.
AND a terrific rate on the first trust deed that they don't want to
lose by refinancing the whole thing and getting cash out. The broker
would make his money on the points, the interest rate would pass
through to the investor.

Maybe there's a niche market for that kind of loan in Las Vegas - but
the people I talked to said they see that situation perhaps once a
year.

When posting from Google, click the "show options" then "reply"
buttons. If you use the instan "reply" you get what shows above, i.e.,
no quoted text and can't tell who you replied to.

Harry K

Richard Riley wrote:
(sorry for not trimming the quote, Google doesn't seem to let me)

I called a couple of mortgage brokers in Las Vegas to ask them if it
made sense. I stipulated Wingies limits - 70% loan to value, no rural,
no construction loans, no rehab, etc. I also stipulated no
documentation of income and a 400 credit score. They said they could
do a 30 year fixed in the mid 7% range.

In the current environment, the only loan they'd demand 12% for would
be a second trust deed for someone in deep trouble - missed 1st
trustdeed payments, no job and no prospect for one, no cash on hand.
AND a terrific rate on the first trust deed that they don't want to
lose by refinancing the whole thing and getting cash out. The broker
would make his money on the points, the interest rate would pass
through to the investor.

Maybe there's a niche market for that kind of loan in Las Vegas - but
the people I talked to said they see that situation perhaps once a
year.

When posting from Google, click the "show options" then "reply"
buttons. If you use the instan "reply" you get what shows above, i.e.,
no quoted text and can't tell who you replied to.

Harry K

I own a couple here in Sterling and Manassas and my sisters also own a
few in Asburn. We're stuck with a few ourselves and one is even
upside-down. Woes... me....

The Monk


Richard Riley wrote:
For those that think housing prices are going to continue to
increase...

Northern Virginia Available Homes Inventory

March 1, 2005(left number) April 2, 2006 (right number)
Alexandria City 121 846
Arlington County 159 807
Fairfax City 26 90
Fairfax County 800 5,764
Falls Church City 6 46
Loudoun County 708 3,369
Manassas City 34 269
Manassas Park 18 125
Prince Will. Cty 673 3,708

Source: Virginiamls.com



A couple of years ago I bought a house. Conforming loan, 30% down, 15
year fixed. I got it at 4.625%. Or, i could have gone through the
company Wingie was working for and paid 6.5%. Needless to say, I
didn't use Wingie as my mortgage broker.

Here's what I don't understand. Wingie is promising his investors 12%.
Lenders are climbing over each other to re-fi stuff in the mid 6%
range. If I want to borrow money against real estate, under the
conditions Wingie has on his website (70% loan to value, no rural, no
construction loans, no rehab, etc) why would I go to him and pay 12%+?