All Forum Posts by: Kevin Parnella

Hi peeps,
Former mortgage UW here that was working my dream job until mortgage rates sourced which was crushing for my line of work. So now I can begin to look at a BRRRR method. One of my questions I wanted to inquire about now is with the contractor. Is the contactor a one stop shop essentially? What I mean by that is that the home will need plumbing work, potentially drywall, flooring, electrical, roofing, etc. These areas seem like they are well beyond the scope of a specialized contractor. So does he then hire subcontractors? How does that work?

Secondly, when we bring the contractor in and he does a walk through, how does he know what to do? I believe I heard David say that all of the plumbing replaced. How does he know what he cannot see.  I presume he will have access to the inspection.  Will he have anything else to estimate the cost of repairs? Who else will he talk to outside of the inspector? I thought David also say that inspector will review his notes with someone else, but I cannot remember who that is? 

Lastly, when in the process is the contractor brought in? I presume after the inspection? If so, wouldn't that make it difficult to generate a fair offer if we don't know what is wrong with the property before we do our due diligence?

Have a great day
Kevin 

I was a very successful mortgage underwriter for nearly 6 years.  I was laid off from my job last April and I am not anywhere near of considering going back at this point because there are so few jobs. Many of us have been laid off there are hundreds of underwriters applying for just one job. My friend has been an underwriter for 17 years and has all of her gov't lending authority. She was laid off last May and has received no interest from anyone, and she was the best underwriter on my team. 

Great post @Ronald Fontenot Jr

Yes madame. I looked at it last night and DFW is all over the place- some areas are better than others I used a site called Snapforce that pulls data from Zillow. The data I am looking at is average price reduction from June 2022 through January 2023 and then also looking at where values are today versus January 2019. Let me give you a few examples:

Denton county for example has only dropped 7% from June until now. And it is still 32% above the values from January 2019.  So that according to many is an area where there is going to be significant depreciation. Collin County is even worse. It is also down only 7% from June, however it is 42% above January 2019 numbers. However Dallas county appears to be in better shape than either of these two counties. It is down nearly 9% since June and it's 18% over the January 2019 numbers. So some make the point it doesn't have too much to drop between now and then.  

From an economic standpoint, inflation is up again which has again lead to another spike in mortgage rates which is good for nobody. Many people are not going to want to sell their home because their 3% rate is gone pecan and now it will be in the high 6's or 7's. To demonstrate that in January 2019, there were 7,637 active listings in Dallas county. In January 2023, there were only 4,534 active listings - or a 40% drop in listings. I don't see mortgage rates dropping anytime soon either and may actually get worse. Maybe I'm wrong? But I don't think so. 

Have a good day.  

hi Lucia. I'm sorry if I was misleading. DFW is being hit over the past 6 months as one of the worst performing markets in home depreciation in the country. Now with that being said, it is nowhere close to San Francisco and other places that are performing poorly, but it's good either.  On the flip side, Tennessee hasn't lost much value at all, but they are the most overinflated area in the country. I'm going to be looking at the numbers again tonight to get an update. 

But DFW depreciation is to be expected due to the massive appreciation over the past couple of years. And you as a realtor remember how it was 18 months ago on how the market was at the time.  

Agree with Luka. In addition, the Dallas market is about to decline significantly. The market is still way overpriced and I would dread of seeing what many of these homes will go for one year from now if i was holding hard money or a HELOC once the market does reset. Some markets have recovered to being at pre-covid levels, but most have not. Dallas has had some downturn, but has a long way to go before it begins to recover.

No. I had a phone conversation with his staff prior to getting a full understanding of what he is offering. Now that I understand his business model of developing in less than desirable communities, that does not meet my requirements as an investor and therefore that's why I won't be looking into this any further.

@Ned J. I was very clear that I wont' be buying a property with Morris Invest. You responded "then have at it with investing with Clayton..."