As part of our Strategic Partners program, we’re bringing in local experts who will provide you with in-depth information about their role in the real estate process. Today, we’re spotlighting Joe Massey of Team Massey with Castle and Cooke Mortgage. Joe is a residential lender, who specializes in lending on primary residences, second homes, house hacks and investment properties.
“Lending First, Deals Second” is a phrase I share with clients often. Having an investment-friendly lender on your real estate team is a must. Joe is the lender for my personal team. He’s also the go-to lender for many of Envision Advisors’ agents and clients, as well.
- Listen to the podcast “#354: Strategic Partner Spotlight: Introducing Joe Massey, Residential Lender” on the Denver Real Estate Investing Podcast
- Watch the YouTube video (at the bottom).
- Read the blog post. Note, the blog is an executive summary. Get the in-depth breakdown from the podcast or video.
How I Know Joe
I met Joe through my mentor Charles Roberts. The very first person Charles introduced me to was Joe. He basically said, “If you have any lending questions, just talk to Joe.”
And I did. I asked Joe questions for my personal investing and client scenarios. I picked his brain on all sorts of topics on the podcast. He answered them all.
I was so impressed I used him as the lender to close on my primary residence. Then, I used him again for my next rental, and the one after that…. In fact, I’ve used him for all my residential lending needs.
Since he’s an investor himself, he “gets it” when evaluating buying investment properties and house hacks. He knows how to discuss lending as a part of long-term strategies and goals. Having Joe as an advisor on your real estate team puts you on the path to success from step one.
Why Lending Is More than Just Interest Rates
Lending often gets commoditized based on interest rates and closing costs. But there’s way more to lending than just rates and closing costs! Real estate investing is like a chess game, and each property is a chess move. Every move has a consequence or missed opportunity later in the game.
Here are two common issues I see in residential lending:
1 – Great rates, but takes forever to close.
Sometimes, clients will find a discount online broker who offers a lower interest rate. But then the 45 day close turns into a 3 month or even 6 month closing process! The lowest rate doesn’t matter if you can’t close. It also costs money for rate lock extensions and puts you at risk for interest rate changes. Plus, what’s the opportunity cost of 6 months?
2 – A loan today can cause issues tomorrow for getting the next loan.
I’ve seen house hackers and investors both make loan mistakes that they regret later. For example, a house hacker buys a property and then after a few years of appreciation, wants to pull out cash to use to buy their next house hack. If the cash-out refi loan is structured as a primary residence loan, then the house hacker is required to stay there another 12 months. D’oh! That throws a wrench in buying the next house hack.
Or, an investor wanted to refinance one of his properties. Joe gave him some examples of his options, but the investor didn’t respond. He later found out the investor got a refinance from a different lender, which happens from time to time. However, when the investor reached out to Joe to buy his next investment property, Joe saw that the loan with the different lender had been done so improperly that the problems on the new loan actually prevented the investor from qualifying for his next property.
While Joe does have some specialized products and loan options that other lenders don’t have, the biggest difference that Joe brings is his expertise as your advisor. Joe acts as your advisor and frequently asks “What’s next?” type of questions. Understanding “what’s next” is critical for structuring the correct type of loan today, so you’re good for the next one.
What a Pre-Approval from Joe Means
While the industry average of getting pre-approved clients to the closing table is 72%, Joe’s track record is 100%. The difference is that Joe does his prep work. He does his due diligence to ensure his pre-approval is for what clients are actually qualified for.
Part of his success is because he doesn’t doesn’t want clients to get trapped in hypotheticals. Joe wants to know the actual circumstances so he can clearly answer your questions and give you the best advice for YOUR situation. He gathers more information upfront than a typical lender and does extremely thorough underwriting before giving you the pre-approval letter. As a client, be prepared to present your W2, bank statements, and other required documents. Although it’s more upfront work, he makes sure no one finds out three days before closing that their loan can’t be funded. This process helps everyone win.
Why does this matter? Because 28% of pre-approvals fail! I’ve seen numerous horror stories where the borrower is just days away from closing, but then the lender can’t fund the loan because something came up in underwriting. Prep work today pays off tomorrow. That’s why I use and recommend Joe.
Connect with Joe
Joe can help investors, house hackers, people looking for their primary residence or a second home. He’s licensed in Colorado, but also oversees the region, including: Nebraska, New Mexico, and Wyoming. Although he doesn’t primarily do business in these states, he can connect you with the right person there, or nationwide.
He’s going to be creating a lot more content with us to teach our audience everything they need to know about the lending process. In the meantime, you can reach out to him via:
Connect with Us
If you want help figuring out your investing strategy or are ready to look at properties, reach out to us. We’d be happy to help you work toward your goals.