The Southern Nevada Real Estate Show

Wesley Knight 0:00
This is a Kun V studios original program. You're listening to special programming brought to you by ragana COVID Henry of Coldwell, banker, Premier Realty. The content of this program does not reflect the views or opinions of 91.5 jazz and more the University of Nevada, Las Vegas, or the Board of Regents of the Nevada System of Higher Education. You Music.

Regana Kooman Henry 0:37
Welcome to the Southern Nevada real estate Show. I'm your host, ragana. I am a real estate agent and broker, associate with Coldwell Banker, Premier Realty. I have been a licensed real estate professional since 1991 I'm also a full time licensed real estate professional. Some of my accomplishments are, I am a quality service award winner. I am a member of the Veterans Association of real estate professionals. I have assisted in all types of real estate transaction over the years, from first time buyers to experienced sellers, and also corporate buyers and sellers transferring in and out of Southern Nevada. Later on in the show, I will be going over some important information for buyers and sellers, including how as a seller, you can get needed repairs and improvements done on your home before your home hits the market, for showings to potential buyers, without you having to worry about paying for the repairs and home improvements done until your home is sold. Also, I will be talking about how I put all the necessary steps I do for you as my seller or my buyer in writing as part of the written contract. When hiring me, that's right, in writing as part of the contract, not all real estate agents are willing to do this. However, I will guarantee my services in writing to you as part of the written contract agreement. And should you allow the current interest rates to discourage you to not push forward to investing in your future, and how to not let situations happening in the world that you have no control over affect you with your goals of securing your financial future, and how to take control of your mindset in order to move forward with your dreams of home ownership, and also your dreams of possibly selling your homes to benefit from your home's equity. Plus, how do you as a seller or buyer decide if this is a good time to sell or purchase a home? And in the later part of the show, I will be going over the stats for January for the Southern Nevada real estate market. Since February, stats are not available yet. Yes, listeners again, just like in previous months, you will have an abundance of current and helpful information regarding the Southern Nevada real estate market. I have a very special guest, repeat guest on my show, Kirsi mbaki, who is a loan officer with the loan depot mortgage company that is here to talk about all things related to mortgage loans. Welcome back to the show. Kyrsi,

Kirsi Mbacke 3:10
yeah. Thank you, raghana. It's always great to be here with you. Always

Regana Kooman Henry 3:14
great to have you here and with all your knowledge.

Kirsi Mbacke 3:17
So you know, I just wanted to say good morning to you, ragana, and good morning to our listeners. And you know, welcome to today's show where, where we kind of dive into the world of mortgage, and we help you navigate through the sometimes confusing world of loans. So again, like regana said, I am Kirsi mbaki With loan depot, and today I thought that we would talk about two kind of non traditional but still important loan types. And those loan types are the DSCR loan and bank statement loans. So you've probably been hearing a little bit, you know, a little bit more about these two types of loans recently, and if you're consider applying for a loan, but don't quite understand what they mean. Don't worry, by the end of this segment, you'll have a clear understanding of how these loan types work and whether they might be right for you or not. So let's get started.

Regana Kooman Henry 4:12
Okay, well, first, let's talk about DSCR. I think the best place to start Kirsi is, what is DSCR? Yeah,

Kirsi Mbacke 4:21
that's a great place to start regana. So DSCR, it's an acronym, and it stands for debt service coverage ratio. So this is a term that you're going to often hear in the world of real estate, and, you know, some in the commercial lending sector. So simply put, a DSCR is a financial ratio that measures a borrower's ability to cover their debt obligations based on their income, so the income of the property. So to break it down, you know, the way they do the calculations is DSCR. Calculated by dividing your net operating income by your debt obligations, which is, you know, how much you owe. So the formula kind of looks like this, DSCR is equal to net operating income divided by debt payments. So, you know, sounds like a whole lot of math that. You know, I don't like math. I don't know about you, or gonna not my not my favorite thing. But you know, why does this matter? Well, it matters because lenders use the DSCR to evaluate whether a borrower is going to be able to repay their loan. So if your DSCR is greater than one, it means that you have more income coming in from that property than you do debt payments, which is, you know, is always a good thing. It's good for you as a borrower. It's good for us as a lender. So, you know, if you have a DSCR of less than one, then that could mean that, you know, maybe the income coming in from your property doesn't quite cover your debts, and that might be a little bit of a red flag for a lender. So let's say, for example, if your net operating income is 120,000 a year, and your debt payments are 100,000 then your DSCR would be 1.2 and then this tells the lender that you're generating enough income to cover your debts with, even with a little bit left over, you know. So really, the key takeaway here is that a DSCR loan helps lenders, you know, assess the risk of lending to you, and if you're considering an investment property, and DSCR is for investment properties, obviously, or, you know, even commercial. Understanding what that DSCR means is crucial Gen you know, generally, your lenders are going to look for a DSCR of one and a quarter or higher for safer investments. Lower than that you might be facing, you know, higher interest rates or maybe not qualify for the loan at all, but it's, you know, we still, it's still doable. Okay,

Regana Kooman Henry 7:05
and that's really great information. Kirsi, now let's move on another type of loan that I have been hearing about. Can you give a little insight on what a bank statement loan is? Curious? Yeah,

Kirsi Mbacke 7:19
perfect intro, Regina, so let's kind of shift gears a little bit, and let's talk about bank statement loans. You know this. This is a type of loan that's becoming increasingly popular, and especially for self employed borrowers, individuals or business owners who might not have that traditional w2 income which makes it hard for them to qualify for conventional types of financing, you know. And here's the deal. When you apply for a standard loan, the lender is typically going to ask for things like your pay stubs, your tax returns, and that's how they're going to verify your income, and, you know, calculate your qualifying income. But you know, if you're self employed or you have irregular income, you know, what do you do? They just turn you down and send you on your way, right? So in that case, looking at a bank statement loan could really be a game changer for these types of borrowers. So instead of providing traditional income documentation with the bank statement loans, you can provide your bank statements, usually anywhere from 12 to 24 months. You know the lender is going to review your deposits, and they're typically focusing on average monthly deposits. They don't want to see a big chunk deposited in July, right? And then nothing the rest of the year. So they're looking at average monthly deposits to determine your income and your ability to repay that loan. So let's say, for example, you're a freelancer, you know, of some sort, you run your own business. You might not get a steady paycheck, but you've been depositing a solid amount of money into your business account each month. You know the bank statement loan would allow you to use these deposits as proof of income instead of your tax returns or w2 pay stubs. And you know, why is why is this important? And it's important because, you know, many self employed individuals, their tax returns don't show the full picture of what their earnings are, you know, especially if they write off a lot of business expenses, right? So bank statement loans can be a way of accessing funds without worrying about deductions and complex tax filings.

Regana Kooman Henry 9:39
Sounds like a lot of useful information, curious. Let's tie these two together for the listeners for practical purposes. Can we compare DSCR loans with versus bank statement loans? Yeah,

Kirsi Mbacke 9:56
of course. So you know, you might be wondering. How a DSCR loan or bank statement loan differ and which one's the right option for you. So let's kind of break it down here. DSCR loans are typically used in in real estate for investment property scenarios, right? Not owner occupied, not site home, just specifically, if you're looking to buy investment property, sure. And you know, these loans are often evaluated off the property's income potential, rather than the borrower's personal income. So, you know, we qualify you off the property, not your personal income. So the lender is going to look at the property's ability to generate cash flow through rent, another means to cover the debts. DSCR loans can be a really great option for those looking to finance investment properties. And then, on the other hand, we have the bank statement loans. They are more focused on the borrower's income, especially when they don't have traditional means of verifying income, w2 tax returns. So it makes them a great option for our self employed individuals, our business owners and people just with irregular income, tip income, seasonal income, things like that. So you know the lender is going to focus more on your your banking history to to gage your income and bank statement loans, they can be used for, you know, a primary residence, a second home or or investment property, so any of those. So if you're looking to finance an investment property and you have strong rental income, then the DSCR loan is probably going to be the best fit for, you know that type of loan, sure. But if you're self employed and you need to show your income through your bank deposits rather than tax returns, then you're gonna maybe sway more towards the bank statement loans, which could be a better fit. Okay?

Regana Kooman Henry 11:54
And Kirsty, can we talk a little about the pros and cons of each loan type?

Kirsi Mbacke 11:59
Yeah, yeah, absolutely. Raganna, that's a really great idea. So let's take a quick look at the pros and cons of each option. So pros of a DSCR loan, they focus on the property's income potential and not your personal income. They're great for real estate investors and those you know, looking into the commercial sector, there's no need to provide personal tax returns or pay stubs. So that's the pros of a DSCR. Okay, cons of a DSCR is, you know, they typically require a higher minimum DSCR, so your payment needs to be a little bit lower than what your income is coming in on it Sure. And you know, the interest rates can be a little bit higher because it's a little bit riskier loan, and you know, they usually require the property to generate consistent income. So that would be the pros and cons of DSCR and bank statement. The pros of a bank statement loans is they're just really ideal for your self employed or your gig economy workers who may not have that traditional income verification, sure. And then, you know, it's a little bit easier to qualify if you have strong bank deposits but no regular, standard documentation. And then another pro is it can be used for a variety of types of loans, you know, owner occupied, second home investment, you know, all the different ones. And then a con of a bank statement loan is, you know, they really scrutinize your bank for deposit consistency. And then the interest rates on those can typically be a little bit higher just due to a little bit higher risk for the lenders, and they do often require a little bit larger down payment than your traditional financing. Okay,

Regana Kooman Henry 13:53
so thank you for detailing out those two different options for home loan scarcity. That is really great information. Now, are there any final thoughts you would like to share? Yeah,

Kirsi Mbacke 14:04
thanks for gonna it's been, it's been a pleasure as always sitting going back and forth with you here, whether you're looking for a DSCR loan or a bank statement loan. You know they both have their unique advantages depending on whatever your personal situation is. You know, if you're a real estate investor looking to finance properties, understanding a DSCR and making sure you have good debt service coverage ratio is really key. If you're self employed, or, you know, your income doesn't fit that typical mold, then the bank statement loan could be your ticket to securing financing, you know. But before you make decisions, you know, any decisions, I always recommend speaking with a trusted loan officer who can help guide you through the process based on your specific financial goals. You know, a lot of people talk to their neighbor, their cousins, and everybody's situation is different. You know, and so I hope that today that you found this discussion on DSCR, bank statement loans helpful. If you have any questions or would like to dive deeper into either of these topics, or, you know, just any topics on purchasing a home, feel free to reach out and until next time, you know, stay smart with your money. Well.

Regana Kooman Henry 15:21
Thank you so much. Kirsty. Now, Kirsi, could you please leave your content, say your contact information for the listeners this morning, and also gonna bring you back at the end of the show, so in case they weren't able to write it down right at this time. Yeah,

Kirsi Mbacke 15:35
thanks, Regina. So my name is Kirsi mbaki. My NMLS number is 1398336, and I am with the loan depot. My cell phone number is 208-589-1181 again, Kirsi and Bucha, loan depot, 208-589-1181

Regana Kooman Henry 15:56
thank you so much, Kirsi and so now many of you that have been loyal listeners to my show. Have heard me talk about the real vitalized program for sellers that want to sell their home for the highest market price possible. However, you don't have the money to do the necessary work and or improvements on the home in order to get the top market price for the home. For all you potential sellers out there listening this morning. You know that in order for your home to get top quality buyers that will pay the top market price for your home, the home needs to shine like a new penny. The home needs to be in top condition, just like when you are trying to sell your car, right? Think of it that way. Your home needs to look good. It needs to smell good as well as function well, regarding plumbing, electrical, heating and cooling, the roof should be in a good condition without leaks, as well as how the home looks on the outside, regarding the landscaping, painting, etc. This program will allow the work to be done on the home before the home is on the market for showings. And the greatest benefit of this program is the payment for the work is made after the closing of the home that's right after, not before. For more information about this program that some of my past sellers have really benefited from, my number is 702-596-1267, and I know the listeners out there are wondering, so what is going to happen to interest rates, and are they going to go back to 3% soon? And should you the on standby future home buyers out there be waiting for that to happen? No, I repeat, no. What do you listeners think will happen if 10s of 1000s of you wait to jump back into the housing market all at the same time, as soon as rates drop that low, and even if they drop that low, well, I'll tell you what's going to happen. It's going to be bidding wars like crazy. That's what's going to happen, buyers competing against each other just to get those low interest rates. And guess what will happen to the home prices? At that point, the home prices are going to skyrocket and become crazy high, like it did during the pandemic time when rates were at 3% so what's the solution to this? Well, I'll tell you the solution purchase now and refi later when rates do drop enough to justify the interest rate, just remember, you can always refi the rate. However, you can never guarantee today's prices of homes won't go up in the future, pushing you further and further away from you becoming a homeowner. So now let's switch gears and talk about how to not let things that are happening that are beyond your control, regarding what you're hearing about, and the economy and the political talks and the media that are being discussed every minute of every day, it seems like, and all the things that can influence you, the listeners, into believing that you may have to take a step back with your plans. Well, let me tell you something. If you let fear take over, the rich will keep getting richer, and you will not get ahead in life by being scared and allowing things that you have no control over dictate how your 2025 will be. We all need to work smarter this year, not just harder in order to keep our mindset strong, don't stay a slave to your landlord. Listeners out there, every year, your rent has the possibility of going up each year with no limit in sight. Some stop making your landlord rich. Each month you're giving your money to a landlord without any return on that money spent. Yes, rates are higher and prices are definitely higher. However, when you own a home, your money is going into your own home, and over time, you will have increased equity, no matter if the market goes down, because what goes down has to come back up again. That's the way it's always been. Listeners out there, I have been a full time real estate professional for over 30 years, all here in Southern Nevada. I've seen all the real estate market conditions here in Southern Nevada, the highs and the lows you know, happening to my client's home and even my home. And I still feel so strongly if I had to do it over between rent versus buy. I definitely would always purchase, at least my money is going into something for the future. Now, some of you listeners out there may be undecided to know for sure if it's a good time to purchase a home. Well, the first thing you need to do is to schedule an appointment consultation so I can learn further about your situation and everything, and for more information and an appointment, my number is 702-596-1267, Now, switching gears to sellers. Most sellers have equity these days in their home, unless they took their equity out up front, you know, and the only way that you're going to tell if you have enough money to equity to go ahead and go ahead with your plans is to talk to a real estate professional such as myself to see where you stand as far as your equity is concerned, and for more information and an appointment for a decent market analysis on your home in writing in a full report, and to see your property to make sure that it is a good time between the report and condition of your home. Again, my number is 702-596-1267, also, I put all my services in writing as part of the written contract. When you hire me as a buyer or seller to help help represent you in the purchase or sell of your home, everything's in writing, all my services and what I guarantee all in writing, not all agents do that. And again, if you'd like more information on how I do business again, my number is 702-596-1267, any real estate transaction is a process of necessary steps involved, from A to Z, and if there is any missing steps at all, it could the transaction could turn very bad, very fast. Again, my number 702-596-1267, now, on another note, I would like to talk about the stats for Southern Nevada for January. And since February, stats have not come out yet. Now, the real estate stats for where you live are important to know and to keep up with the current information of what's happening in your local real estate market. And these stats are for resell homes only, not new construction, resell homes only. So let's get started. There were 1500 78 homes that sold. $485,000 was the median sold price for single family homes. 525,000 was the median price of new single family home listings. $545,000 was the price of all available single family homes, excluding offers. There was 3.3 months of available inventory for single family homes, 47% of all single family homes went from available to sold in 30 days or less. So now let's switch over to town homes and condos combined. There were 413 town homes and condos combined that sold $293,000 was the median sold price of all town homes and condos combined. $290,000 was the median available price of all new available condos and town home listings combined. $285,000 was the median price of all available town homes and condos combined, excluding offers Now there were 4.6 months worth of available inventory of condos and town homes combined, and 51.1% of all town homes and condos combined went from available to sold in 30 days or less. Now if you missed any of these stats, and would like to know more information regarding the stats. My number is 702-596-1267, I want to let all you listeners know that when you hire me to assist you with whatever real estate needs you have, I take that very, very seriously, and I know I have a huge responsibility with the most expensive asset that you will ever sell or purchase. I am also truly grateful for my career consisting of helping many people throughout the years with the American dream of home ownership and also selling their existing home and gaining Finance. Wealth and stability through their homes. Equity and I can represent on a variety of transactions, including construct, new construction, resale homes, single family homes, condos, high rise condos, land, four plexes and the areas I service are Las Vegas, Henderson, Boulder, City, North Las Vegas, Pahrump and mesquite. Now, if selling or purchasing a home is your goal this year, and you would like a one on one consultation, once again, my number is 702-596-1267, for an appointment. Now, Kiersey, please give your name, company name and phone number out again for the listeners that didn't write it down earlier.

Kirsi Mbacke 25:46
All right. Thank you, organ it Yeah. This is Kirsi mbaki, and I'm with the loan depot. My NMLS number is 1398336, my phone number is 208-589-1181, again. 208-589-1181,

Regana Kooman Henry 26:08
thank you so much. Kirsty, it's always a pleasure with all the knowledge you have regarding everything for mortgages. Thank you. Thank you. And I just want to let the listeners know again, if you would like a one on one consultation with me. I put all my services in writing, whether you're hiring me as a buyer's agent or a seller's agent to represent you and the most expensive transaction you'll ever do, whether it's buying or selling a home and I am ragana Cooman Henry with Colville Banker Premier Realty, your host for the Southern Nevada real estate show that airs every third Sunday of The month at 8:30am my number is 702-596-1267, that's 702596 702-596-1267, and my license number is B, s2, 7880, you can follow me on Facebook, Instagram, tick tock and YouTube. Thank you so much for listening to my show this morning, and I wish everyone listening a great Sunday and a great week. You?