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Speaker 1: An illegal alien from Guatemala charged with raping a child

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Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador

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Speaker 1: accused of murdering a Texas man of Venezuelan charged with

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Speaker 1: filming and selling child pornography in Michigan. These are just

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Speaker 1: some of the heinous migrant criminals caught because of President

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Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States

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Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border

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Speaker 1: crossings are at the lowest levels ever recorded, and over

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Speaker 1: one hundred thousand illegal aliens have been arrested. If you

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Speaker 1: are here illegally, your next you will be fined nearly

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Speaker 1: one thousand dollars a day, imprisoned, and deported. You will

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Speaker 1: never return. But if you register using our CBP home

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Speaker 1: app and leave now, you could be allowed to return legally.

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Speaker 1: Do what's right. Leave now. Under President Trump, America's laws,

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Speaker 1: border and families will.

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Speaker 2: Be protected sponsored by the United States Department of Homeland Security.

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Speaker 3: So real estate is and will be probably one always

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Speaker 3: one of the greatest investment tools out there, especially because

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Speaker 3: of the tax benefits that come with it. And you

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Speaker 3: have to understand the tax play behind buying that much

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Speaker 3: real estate as well. So these people are rich and

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Speaker 3: wealthy and they're trying to hedge their taxes and minimize

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Speaker 3: it too. So what's the best player real estate, brick

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Speaker 3: and mortar. Because of things like depreciation, cost segregation, there's

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Speaker 3: a lot of different things that you can do to

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Speaker 3: offset your wins. If you got huge capital gains, you

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Speaker 3: can put that in ten thirty one changes, buy real estate,

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Speaker 3: so you're deferring your taxes down the road.

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Speaker 4: Right.

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Speaker 3: Real estate gives you all these plays that the wealthy

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Speaker 3: use at scale to continue to grow their wealth. Whereas

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Speaker 3: with us in our community, we like to listen to

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Speaker 3: everybody else, but instead of following the money.

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Speaker 5: My graduates from my school being forced backdrop thanks drop, Mike,

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Speaker 5: drop back drop drop.

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Speaker 6: All right, guys, welcome back. We got a stranger to

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Speaker 6: the program, stranger somebody that you might not have ever

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Speaker 6: seen before, Matthew Garland.

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Speaker 3: And at all that's five eight seven and at my

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Speaker 3: last snowe a letter five eight seven zero zero.

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Speaker 4: But it's all good.

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Speaker 6: Yeah.

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Speaker 4: The mortgage guy, The mortgage guy.

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Speaker 6: Matthew Garland, CEO of the Garland Group, UH, star of

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Speaker 6: Ransom Gyms see UH international speaker.

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Speaker 4: International speaker, you gotta add that to the resume. Of course,

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Speaker 4: damn sure to be having gyms.

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Speaker 3: You don't tell you that I got a let in

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Speaker 3: my bio now, international speaker.

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Speaker 4: True, Okay, that's the fact.

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Speaker 6: Yeah, real estate experts. So obviously you guys are familiar

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Speaker 6: with man if you're familiar with Earn your Leisure. He's

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Speaker 6: been on a variety of different times Market, Monday's invest Fest,

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Speaker 6: you name it. He's always around providing great insight when

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Speaker 6: it comes to real estate. And we did two episodes

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Speaker 6: so far, and you know, whenever it is time, I

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Speaker 6: feel like it's time to revisit this real estate conversation.

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Speaker 6: So like this at the beginning of the year twenty

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Speaker 6: twenty three was a great time to have the third

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Speaker 6: trilogy three p. There's so much stuff that we haven't

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Speaker 6: talked about before, and there's so much stuff that has

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Speaker 6: changed a lot of people. Are you know, nervous economic

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Speaker 6: environment that we're in, interest rates and recession, different things

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Speaker 6: of that nature.

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Speaker 4: So and on a personal level.

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Speaker 7: During this time, we've had a relationship of you helping.

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Speaker 4: Us with our properties.

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Speaker 7: Absolutely, So that's even something that we were going to

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Speaker 7: add to this conversation too.

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Speaker 4: I love it. Yeah, I love it.

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Speaker 6: So you know, it's back to the blueprint, man of ducation.

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Speaker 6: Heavy gyms try to provide as much value as possible

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Speaker 6: and help some people out. Man. So first formal, thanks

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Speaker 6: for coming. Appreciate it, love Felers. It's a three P.

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Speaker 6: I appreciate the opportunity. As always, It's always good to

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Speaker 6: be back with my guys. Let's make it happen. Let's

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Speaker 6: do it. Let's do it. So all right, all right,

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Speaker 6: let's not even waste any time. Let's get into this.

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Speaker 3: I think it was the first time I WoT suit

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Speaker 3: on the shop on the show this is this is

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Speaker 3: the first time you had a red sword shirt on

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Speaker 3: an episode twelve, the gold episode, and your second appearance

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Speaker 3: you had I think you might have a flannel shirt,

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Speaker 3: had a flannel joint.

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Speaker 7: Yeah, and we had just moved downstairs to kind of shoot.

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Speaker 4: So that was that was cool too.

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Speaker 3: Yeah, okay, three different flavors, three different episodes.

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Speaker 4: I liked. I like the way this is going.

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Speaker 6: Let's talk about something that we never spoke about before,

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Speaker 6: which is V a loans copy for veterans. There's a

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Speaker 6: lot of veterans that watch us. We actually have an

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Speaker 6: infinity group in Eyo University for veterans, whether it's Navy,

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Speaker 6: h army, uh, you name its whole situation, right, A

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Speaker 6: lot of people have served the country and it's benefits

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Speaker 6: with that. But and even some alumni. Aristotle is a veteran. Yeah,

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Speaker 6: we got a few other veterans, but a lot of

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Speaker 6: times that they're not educated on what they actually have

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Speaker 6: the credit credit definitely, what's up with this VA loan situation.

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Speaker 3: First of all, thank you guys for your service. We

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Speaker 3: appreciate your sacrifice and everything you do for us in

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Speaker 3: our country to keep us safe here in America. So

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Speaker 3: I don't want that to My father is a veteran also,

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Speaker 3: so it's nandad in my heart. If you've been in

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Speaker 3: my studio or see me on my content, I have

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Speaker 3: his flag. When he passed away, they gave me the flag,

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Speaker 3: so I have that kind of like right next to

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Speaker 3: me when I shoot all my content.

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Speaker 4: So, first of all, shout out to all the veterans.

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Speaker 3: But a VA loan is one of probably the best

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Speaker 3: loans that's available out there in the marketplace. It's an

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Speaker 3: underutilized product. I don't think a lot of people speak

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Speaker 3: about VA loans, and that's why I'm happy that we're

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Speaker 3: having this conversation. So let's first start off with the

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Speaker 3: credit score requirements. Most lenders will have a minimum credit

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Speaker 3: score of a five to eighty to qualify for a

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Speaker 3: VA loan. It's one hundred percent financing no PMI. PMI

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Speaker 3: is private mortgage insurance. So typically when you put down

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Speaker 3: less than twenty percent down on a property, you have

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Speaker 3: to pay the PMI, which is insurance that's insuring the bank,

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Speaker 3: not you the barrower. In case you default on the mortgage,

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Speaker 3: that that loan is insured and the bank can basically

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Speaker 3: get their money back from the insurance company.

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Speaker 4: Right.

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Speaker 3: So, VA loans have no PMI. It does have a

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Speaker 3: fund and fee when you do a VA loan, which

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Speaker 3: can be on average around two percent just depending on

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Speaker 3: your status. If you are one hundred percent disability then

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Speaker 3: disabled veteran, then you don't pay a fund and fee,

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Speaker 3: But typically most VA loans that we're doing come with

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Speaker 3: around a two percent frond and fee which gets financed

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Speaker 3: into the loan. Now, with a VA loan, you can

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Speaker 3: purchase a primary residence. It's not for investment properties. I

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Speaker 3: just want to be clear on that it's for primary residents.

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Speaker 3: You can buy condo VA approved. If you could buy

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Speaker 3: condo that is VA approved, you could buy one family,

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Speaker 3: two family, three family, four family properties. They have to

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Speaker 3: be owner occupied multifamilies. The requirement to for VA to

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Speaker 3: live in the property is for one year, just like

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Speaker 3: an f HA, so you have to live in that

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Speaker 3: property for one year. But the main thing, there's a

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Speaker 3: couple things I want to discuss with a VA that's

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Speaker 3: very important. Number one is your certificate of eligibility your COE.

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Speaker 3: So to determine how much of a loan that you

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Speaker 3: can get from a VA, you have to provide the

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Speaker 3: lender or the lender can pull what's called the COE,

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Speaker 3: your certificate or eligibility, and it will tell you exactly

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Speaker 3: how much entitlement that you have from the VA. To

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Speaker 3: determine what's the maximum the possible maximum loan amount that

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Speaker 3: you can get financed for using a VA loan. Now,

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Speaker 3: unlike well, VA loans don't have a minimum a maximum

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Speaker 3: loan amount requirement. So if you go an FHA loan

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Speaker 3: or a conventional mortgage, you have a maximum loan amount.

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Speaker 4: So let's just keep in this. So in New York.

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Speaker 4: I'll just keep in New York.

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Speaker 3: So a simple with a one family right now, because

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Speaker 3: this is considered a high cost area. You can get

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Speaker 3: an FHA or conventional mortgage million dollars on a single

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Speaker 3: family property, a four family property, you can go up

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Speaker 3: to like two million, a little bit under two point

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Speaker 3: one million somewhere around there. So the loan limits increased

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Speaker 3: in twenty twenty three, which is great because home prices

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Speaker 3: have been appreciated. But with the VA loan, there's technically

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Speaker 3: no minimum or no maximum loan amount for the VA.

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Speaker 3: It's all on how much eligibility you have and obviously

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Speaker 3: how much you can qualify for with your debt to

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Speaker 3: income ratio and your residual income, which I'm gonna go

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Speaker 3: into in a bit. So that's another great thing about

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Speaker 3: a VA loan. You can buy a single family home

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Speaker 3: one point five million dollars and get one hundred percent

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Speaker 3: financing on it with a low interest rate with no PMI.

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Speaker 7: Let's say you do do that, and you do a

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Speaker 7: loan for one point five is there a millionaire tax

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Speaker 7: that comes along with that.

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Speaker 4: Like a mansion tax tax? Right?

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Speaker 3: So in New York, if you purchasing a property over

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Speaker 3: a million dollars, you have mansion tax, which you guys

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Speaker 3: happily had to pay, right, mansion tax anybody but New York.

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Speaker 3: That's common, right. A million dollar house in New York

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Speaker 3: is kind of like the normal. It's like an everyday house.

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Speaker 3: New York is very expensive, but yes, you have to

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Speaker 3: pay a man attach other states it varies, you may

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Speaker 3: not have to pay. But I would say check which

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Speaker 3: you know, your realtor, or your local lend or whoever

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Speaker 3: you work and with, to see if you have to

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Speaker 3: pay any type of mansion tax.

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Speaker 7: Is there like a percentage that the standard mansion tax.

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Speaker 3: Is New York is one percent one percent, So a

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Speaker 3: million dollar sales price, you're going to pay ten thousand

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Speaker 3: dollars or in closing costs on top of all the

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Speaker 3: other fees that come with, you know, buying a property.

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Speaker 3: So if you're buying over a million dollars, it can

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Speaker 3: definitely get more expensive, especially in this state like New York.

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Speaker 3: So that's why you have you can't be house rich

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Speaker 3: and cash boy. You have to have money when you

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Speaker 3: go into that ballpark, right, But with a VA loan again,

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Speaker 3: you can go up to a million and a half

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Speaker 3: you can go one point seven million. I've done loans

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Speaker 3: myself one three, one four when the loan amounts were

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Speaker 3: a lot less for conventional and FHA. So that's a

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Speaker 3: huge benefit for that veteran who can qualify for.

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Speaker 4: That that large of a house.

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Speaker 3: Right, And that's nationwide, so it's not it's not determined

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Speaker 3: on region where you live. If you live in Kentucky

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Speaker 3: and your veteran, you can get approved for a million

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Speaker 3: dollar loan with the VA if you have the eligibility

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Speaker 3: to do so, right. So that's number one, Right, But

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Speaker 3: the most important thing I want to touch on when

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Speaker 3: it comes to a VA loan because the most portant

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Speaker 3: ingredient on any loan is the debt to income ratio

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Speaker 3: your DTI. Right, But what VA you have what's called

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Speaker 3: residual income, and that residual income calculates basically, how much

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Speaker 3: money do you have left over after all of your expenses?

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Speaker 3: Can the veteran truly afford this house? And they taking

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Speaker 3: your household thoughts? Right, So let's just say, for example,

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Speaker 3: you have a family of four right the VA, and

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Speaker 3: if you're living in the Northeast, they want to see

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Speaker 3: after you're withholding has come out, So they're looking at

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Speaker 3: your gross income and then they're going to mind us

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Speaker 3: out you're withholdings like your fighter, your Social Security, all

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Speaker 3: the taxes, you're paying, your W two wages. Then they're

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Speaker 3: going to take the mortgage payment minus that out of it.

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Speaker 3: Then they're going to take your utilities on the home right,

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Speaker 3: And if you don't know what the utilities are, lenders

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Speaker 3: will use a calculation. It's usually the square footage of

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Speaker 3: the home times point one four percent, and so if

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Speaker 3: it's a two thousand square foot home times point one

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Speaker 3: four percent, that comes into like two hundred and eighty dollars.

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Speaker 3: That will guesstimate what your utilities are. We looking at childcare,

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Speaker 3: we're looking at you know, student loans, car loans. Everything

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Speaker 3: goes into this calculation. And then at the end of

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Speaker 3: the day, after all of that is spent, do you

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Speaker 3: have at least one thousand dollars a month left over?

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Speaker 3: And if you do, you qualify right, and if you don't,

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Speaker 3: you don't qualify. So, for example, I've seen Dell's where

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Speaker 3: you might get an aus AP pro, which is the

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Speaker 3: automated underwriting system that all lenders use that says, okay,

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Speaker 3: your DTI is X. It works, but then you might

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Speaker 3: not meet the residual income qualifications and that can decline

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Speaker 3: your loan. So it's very important that veterans understand it.

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Speaker 3: And anyone, any real estate professional, any loan officer who's

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Speaker 3: working with VA clients, they understand the residual income calculation

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Speaker 3: because that right there can make or break your deal.

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Speaker 3: So what I try to advise any veteran or anybody

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Speaker 3: who's looking to buy a house, you not only just

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Speaker 3: want to get pre approved, you want to make sure

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Speaker 3: that the lender that you're working with has the ability

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Speaker 3: to submit your loan into underwriting. Why you're in that

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Speaker 3: pre approval status so that way an underwriter can reveal

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Speaker 3: your loan and get you what's called a pre underwriting

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Speaker 3: commitment or loan commitment. Why you're still in that home

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Speaker 3: buying stage, because now you know it's been reviewed by

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Speaker 3: an underwriter. You know your commitment letter is legit. It's

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Speaker 3: not just some loan officer sending your lefe are saying, hey,

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Speaker 3: your prayer approval for X, Y and Z go out

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Speaker 3: in the house shop. And then when you get a

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Speaker 3: house and then you get into contract, you do all

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Speaker 3: these dispections, pay for appraisal, and then you go to

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Speaker 3: underwrite and you get the client because they didn't do

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Speaker 3: the calculations properly from the very beginning. It happens all

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Speaker 3: the time, so that residual income is extremely important when

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Speaker 3: it comes to VA loans for all veterans out there,

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Speaker 3: for all professionals who are.

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Speaker 7: Originating these loans. That's a lengthy process.

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Speaker 4: Yeah, a lot.

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Speaker 7: It's a lot of information, a lot of tape, a

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Speaker 7: lot of pork that has to be fouled.

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Speaker 4: You can correct me if I'm wrong.

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Speaker 7: But VA loans and one of the reasons that people

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Speaker 7: use it and it's a great loan product, is that

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Speaker 7: there's no down payment.

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Speaker 3: Correct, it's one hundred percent financing for a VA loan. Now,

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Speaker 3: typically with a VA loan, it's if you are buying

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Speaker 3: the house and you're the veteran, you can get up

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Speaker 3: one D one hundred percent finance. And another thing also,

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Speaker 3: you can use the VA loan more than once, so

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Speaker 3: it's not like FAHA where you have to refinance out

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Speaker 3: of the FA to use the FAHA loan. Again, right,

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Speaker 3: with a VA loan, if you have enough eligibility on

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Speaker 3: your COE, you can buy another property, it just has

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Speaker 3: to be your primary residence. Now, on that second property

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Speaker 3: that you purchase, you're you're probably going to have to

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Speaker 3: put some sort of down payment because you use a

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Speaker 3: lot of your entitement already to buy your first home.

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Speaker 3: But necessarily you don't have to refinance out of that

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Speaker 3: initial property that you purchase to use your VA loan again.

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Speaker 4: So it gives you the ability.

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Speaker 3: I've seen people that have three or four VA loans

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Speaker 3: all still active because they didn't burn up their eligibility

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Speaker 3: by going out and buying a million dollar million, one

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Speaker 3: point five million dollar house the first go around. They

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Speaker 3: probably bought a two three hundred thousand dollars house, started

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Speaker 3: slow and work their way up, and they still have

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Speaker 3: enough eligibility to use their VA over and over and over.

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Speaker 6: Is they give you a certain amount of money.

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Speaker 3: Correctly where, which is depending on your status of how

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Speaker 3: you got discharged.

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Speaker 6: Depend on how longs you were exactly. So it's like

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Speaker 6: you might have a million dollars.

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Speaker 3: It's not that it's and I'm not even going to

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Speaker 3: try to get into that. Go get the home Boys Blueprint.

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Speaker 3: It's a part of ey l University Volume one. We

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Speaker 3: kind of break all your great resource. You know, it's

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Speaker 3: a great resource that kind of breaks down the calculations

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Speaker 3: and everything like that. But essentially, yes, the certificate of

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Speaker 3: eligibility will tell Linda, if this is your first time

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Speaker 3: using it, if you have used it multiple times, how

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Speaker 3: much of your eligibility is available. And then there's a

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Speaker 3: whole calculation that we have to do on our and

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Speaker 3: to determine exactly how much of a loan that we

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Speaker 3: can get you approved for. So it's a process on

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Speaker 3: our end.

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Speaker 7: If you have one, then you obviously you get the

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Speaker 7: additional properties. Are they looked at as investment properties? I

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Speaker 7: know you said you can't use as rental. It's a

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Speaker 7: primary residence, all of them, all four of them are.

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Speaker 3: So when you buy the first one, you can rent

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Speaker 3: out after you meet your one year required and you

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Speaker 3: can go buy a new primary residence and now turn

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Speaker 3: that first property into a rental. So it's essentially your

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Speaker 3: house hacking. But you're just doing it the not quote

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Speaker 3: unquote non traditional way, and you're using the VA loan. Again,

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Speaker 3: even if you have to put down a down payment

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Speaker 3: five ten percent, you have no PMI, you're going to

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Speaker 3: have a low interest rate, right, So it's still a

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Speaker 3: huge benefit for someone who's looking to use as much

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Speaker 3: of the VA as possible, because, look, they earn the benefits,

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Speaker 3: why not use it, use it as many times as

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Speaker 3: you can. So some people might start off with to

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Speaker 3: start at home two hundred, two hundred and fifty thousand,

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Speaker 3: whatever it is, and if they understand how to run

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Speaker 3: the play, they'll continue to use their VA, move out

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Speaker 3: of one, living it for a year, move out another one,

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Speaker 3: and keep going to keep going. So if you do

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Speaker 3: it the right way, you can you can buy a

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Speaker 3: couple of properties using your VA loan and having all

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Speaker 3: those VA loans still open, not having a refinance out

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Speaker 3: of them.

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Speaker 6: All Right, Well, that's good to know a lot of

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Speaker 6: information when it comes to the VA loan situation.

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Speaker 3: So let's talk about how I'm going to cut you off.

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Speaker 3: I said that in your voice too, right, So let's

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Speaker 3: since I've said house hacking, I want to talk about

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Speaker 3: multifamilies real quick, because this is very important.

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Speaker 4: Before that, don't mean to come you off. I mean

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Speaker 4: I don't want to interrupt your wisdom.

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Speaker 7: But like that one are their disadvantages, right, So those

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Speaker 7: are some of the advantager and I know people have said,

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Speaker 7: like does every lender off of VA loans? Like are

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Speaker 7: there things that we did if they're veterans that they

350
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Speaker 7: should look out for good question.

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Speaker 3: So not all lenders and loan officers are built the same.

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Speaker 3: Just because someone offers a loan product doesn't mean they

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Speaker 3: know how to close that loan product. Doesn't mean they're

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Speaker 3: well versed in that loan product. So for the majority, yes,

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Speaker 3: all lenders will offer a VA loan. And I want

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Speaker 3: people to understand this right, there's a lot of lenders

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Speaker 3: out there that will have the name their name of

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Speaker 3: their company. It will sound military issue. That doesn't mean

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Speaker 3: the VA is endorsing them. So a lot of people

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Speaker 3: will go to these lenders because it sounds like it's

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Speaker 3: military and it's a military mortgage company or something like

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Speaker 3: that that is VA endorsed, and it's not. The VA

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Speaker 3: doesn't endorse one particular lender over another. That's just a

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Speaker 3: marketing tactic. And you have to be careful, especially your veterans,

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Speaker 3: because a lot of times these companies are offering you

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Speaker 3: higher fees and higher rates than someone like myself or

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Speaker 3: a mortgage broker, a mortgage banker, So you got to

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Speaker 3: be They may not have military slang in their company name,

369
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Speaker 3: but doesn't mean they can't get you a better deal.

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Speaker 3: So I want people to understand when you when you're

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Speaker 3: shopping for who's going to do your VA loan, don't

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Speaker 3: just go with the company or the mortgage company just

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Speaker 3: because they have some sort of military affiliation in their name,

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Speaker 3: because it's all a marketing tactic, right, So that's number

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Speaker 3: one when it comes to people offering V loans. But again,

376
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Speaker 3: and not all one is a built built the same.

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Speaker 3: Not everybody underst sands via loans. These are easy loans

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Speaker 3: if you understand what you're doing, but they can become

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Speaker 3: very difficult if you don't. And again, the residual income

380
00:20:09,200 --> 00:20:11,119
Speaker 3: is one of the big things that I see people

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Speaker 3: mess up on because they never heard of it before

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00:20:14,040 --> 00:20:16,639
Speaker 3: and they don't know how to calculate it. But for

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Speaker 3: multifamilies on house hacking, you can't. If you're a first

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Speaker 3: time home buyer and you're buying a multifamily property and

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Speaker 3: you're looking to use the rental income to qualify, Unfortunately,

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Speaker 3: the VA doesn't allow that you have in order to

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Speaker 3: use rental income to help you qualify for a multifamily

388
00:20:35,320 --> 00:20:38,240
Speaker 3: using a VA loan, you have to document that you

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Speaker 3: have or at least twelve months experience of property management

390
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Speaker 3: or owning a multi family property. So if you don't

391
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Speaker 3: work in the property management field, if you don't have

392
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Speaker 3: a multifamily currently and it's filed on your taxes and

393
00:20:53,520 --> 00:20:55,320
Speaker 3: we can see that you've owned it for a year

394
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Speaker 3: and you're collecting rent, then unfortunately, you will not be

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Speaker 3: able to use the rental income to qualify you. Now,

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00:21:01,840 --> 00:21:04,720
Speaker 3: if you do have that experience, then the v will

397
00:21:04,720 --> 00:21:08,359
Speaker 3: require at least six months of reserves off your mortgage payments.

398
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Speaker 3: So if your mortgage payment is one thousand dollars a month,

399
00:21:10,600 --> 00:21:12,919
Speaker 3: we're going to require at least six thousand dollars in

400
00:21:13,000 --> 00:21:15,760
Speaker 3: your bank account post closing, after you pay your closing

401
00:21:15,800 --> 00:21:20,040
Speaker 3: costs left over. So I want people to understand using

402
00:21:20,040 --> 00:21:24,760
Speaker 3: a VA loan to house hack and buy multifamilies. If

403
00:21:24,760 --> 00:21:28,560
Speaker 3: you're dependent on the rental income to qualify you can

404
00:21:28,720 --> 00:21:31,959
Speaker 3: you can be up for root awakening. You will have

405
00:21:32,000 --> 00:21:36,159
Speaker 3: to qualify using your own income to purchase that multi

406
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Speaker 3: family all right.

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Speaker 6: So let's get another topic in construction loans. This is

408
00:21:43,359 --> 00:21:45,600
Speaker 6: something that you know, me and Troy's going through, right,

409
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Speaker 6: now with a home. And this is a lot of

410
00:21:47,720 --> 00:21:50,280
Speaker 6: times people don't even realize that there's different loans that

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Speaker 6: you have to take. Even when you get into a mortgage,

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Speaker 6: all mortgages aren't the same, correct, So it's like a

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Speaker 6: construction loan when you're actually building a house from the

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Speaker 6: ground up. Correct, financing is different, very it's very different,

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Speaker 6: and it's a lot more strenuous. Well, I'll let you

416
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Speaker 6: talk about it, but a lot of I don't think

417
00:22:07,840 --> 00:22:10,920
Speaker 6: people are They wouldn't know that unless they've actually done

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Speaker 6: it before. So building a house, you know, it can

419
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Speaker 6: have some advantages, but you have to know what you're

420
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Speaker 6: getting yourself into before you before you decide if it's

421
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Speaker 6: gonna be a good decision or not. Absolutely, So what's

422
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Speaker 6: to deal with the construction loan situation?

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Speaker 4: Man construction loans.

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Speaker 6: And once again construction for not construction like you're going

425
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Speaker 6: to build an apartment building Like this is if you

426
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Speaker 6: buy a plot of land correct and you just want

427
00:22:35,200 --> 00:22:38,040
Speaker 6: to build your house as opposed to building a house

428
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Speaker 6: buying a house that's already built.

429
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Speaker 4: Correct.

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Speaker 3: So you know, typically, like you said, you buy, you

431
00:22:42,600 --> 00:22:45,639
Speaker 3: get a piece of land and now you need funding

432
00:22:45,680 --> 00:22:47,879
Speaker 3: for it. So there's two ways you can go by it.

433
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Speaker 3: If you're the consumer. If you're the home buyer. You

434
00:22:50,640 --> 00:22:53,080
Speaker 3: can buy the land on cash, which I would recommend

435
00:22:53,400 --> 00:22:56,000
Speaker 3: I'm buying whether it's cash or you use a credit card,

436
00:22:56,000 --> 00:22:58,520
Speaker 3: whatever means you find to buy that piece of land,

437
00:22:58,520 --> 00:23:00,320
Speaker 3: because I feel like this is the easiest way to

438
00:23:00,320 --> 00:23:03,040
Speaker 3: do a construction loan. And then now you go to

439
00:23:03,080 --> 00:23:07,520
Speaker 3: the bank to get a construction the permanent loan, where

440
00:23:07,560 --> 00:23:10,679
Speaker 3: now that construction permanent loan is basically treated like a

441
00:23:10,720 --> 00:23:14,239
Speaker 3: refinance now because since you already own the property, so

442
00:23:14,280 --> 00:23:18,480
Speaker 3: there's no rush right to get your plans and your

443
00:23:18,520 --> 00:23:21,720
Speaker 3: permits and things of that nature. Because with most construction loans,

444
00:23:21,760 --> 00:23:26,360
Speaker 3: when you're talking primary residences, which this conversation is about,

445
00:23:26,760 --> 00:23:29,000
Speaker 3: the bank is only going to give you a construction

446
00:23:29,119 --> 00:23:32,399
Speaker 3: time of nine to twelve months. So we all know

447
00:23:32,920 --> 00:23:36,879
Speaker 3: permits can take six months. So if you do a

448
00:23:37,080 --> 00:23:40,280
Speaker 3: one time closed construction loan, which is you're buying the

449
00:23:40,440 --> 00:23:44,080
Speaker 3: land and trying to get the construction loans simultaneously, and

450
00:23:44,119 --> 00:23:46,080
Speaker 3: you're using the bank for the finance and of the

451
00:23:46,160 --> 00:23:50,560
Speaker 3: land as well, that's when I see problems arise because

452
00:23:50,960 --> 00:23:54,000
Speaker 3: you're not technically the owner of that property. So you

453
00:23:54,080 --> 00:23:57,280
Speaker 3: can't go out and submit architectural plans to the town

454
00:23:57,640 --> 00:24:01,399
Speaker 3: that you're buying a property in until you close, because

455
00:24:01,400 --> 00:24:04,639
Speaker 3: you technically don't own the property unless the seller of

456
00:24:04,680 --> 00:24:09,520
Speaker 3: the property is willing to submit the plans on your behalf,

457
00:24:09,600 --> 00:24:12,520
Speaker 3: which in most cases they're not going to do that, right,

458
00:24:12,840 --> 00:24:16,399
Speaker 3: So it's much easier for you to acquire the land

459
00:24:16,480 --> 00:24:19,440
Speaker 3: on your own then use the bank for the construction

460
00:24:19,600 --> 00:24:22,720
Speaker 3: model to build your home. And the reason being again

461
00:24:22,920 --> 00:24:27,399
Speaker 3: is because architectural plans can take depending on the scope

462
00:24:27,400 --> 00:24:30,440
Speaker 3: of your work, that can take two to four months,

463
00:24:30,480 --> 00:24:34,840
Speaker 3: depending on how busy your architect is and how efficient

464
00:24:34,880 --> 00:24:37,159
Speaker 3: they are, And when you get plans you're going to

465
00:24:37,240 --> 00:24:40,119
Speaker 3: go back and forth to adjust things of that nature.

466
00:24:40,160 --> 00:24:43,200
Speaker 3: So if you're doing a one time closed to construction,

467
00:24:43,840 --> 00:24:46,680
Speaker 3: that means you're in contract and you have a time

468
00:24:46,720 --> 00:24:49,520
Speaker 3: clock already to close with the seller, right. They don't

469
00:24:49,520 --> 00:24:51,520
Speaker 3: want to sit there and wait four or five months

470
00:24:51,800 --> 00:24:54,679
Speaker 3: for you to get your plans together before you close,

471
00:24:54,960 --> 00:24:58,800
Speaker 3: So again that can cause a delay and it can

472
00:24:58,960 --> 00:24:59,679
Speaker 3: cause some.

473
00:25:00,440 --> 00:25:01,840
Speaker 4: Between you and the seller.

474
00:25:02,200 --> 00:25:04,719
Speaker 3: Now, if you've got an architect who's on it, they

475
00:25:04,720 --> 00:25:06,919
Speaker 3: can get you plans in thirty days. Cool, you can

476
00:25:06,960 --> 00:25:11,199
Speaker 3: do the one time close. But again another con of

477
00:25:11,240 --> 00:25:14,520
Speaker 3: that is after closing, now you have to submit those

478
00:25:14,560 --> 00:25:18,760
Speaker 3: plans to the town to get approval. And depending on

479
00:25:18,840 --> 00:25:24,239
Speaker 3: the counting, which it's hit a miss, right, it's hit

480
00:25:24,280 --> 00:25:27,560
Speaker 3: a miss for plans. I mean, New York is kind

481
00:25:27,560 --> 00:25:30,080
Speaker 3: of like, I don't want to say nothing negative because

482
00:25:30,560 --> 00:25:30,880
Speaker 3: you know.

483
00:25:31,359 --> 00:25:34,400
Speaker 4: But it kind of gets interest.

484
00:25:35,080 --> 00:25:37,399
Speaker 3: Yeah, it gets kind of it gets kind of crazy,

485
00:25:37,720 --> 00:25:40,719
Speaker 3: and it could be a lengthy process. So now, if

486
00:25:40,760 --> 00:25:43,080
Speaker 3: you're on a toime clock to build and the lenders

487
00:25:43,080 --> 00:25:45,960
Speaker 3: only give you nine to twelve months, and some lenders

488
00:25:46,000 --> 00:25:47,840
Speaker 3: will give you an extension of an extra two to

489
00:25:47,960 --> 00:25:50,440
Speaker 3: three months. On top of that, you done wasted half

490
00:25:50,480 --> 00:25:53,880
Speaker 3: of your time just waiting on the plans to get

491
00:25:53,880 --> 00:25:57,840
Speaker 3: approved by the town. So my recommendation for construction loans

492
00:25:57,840 --> 00:26:00,480
Speaker 3: and anyone who's looking to build their first home or

493
00:26:00,480 --> 00:26:04,679
Speaker 3: their dream home, acquire the land first. Acquire the land first,

494
00:26:05,160 --> 00:26:09,359
Speaker 3: have a dope ass architect who understands the urgency of

495
00:26:09,400 --> 00:26:11,959
Speaker 3: what you're looking to do, get your plans and everything

496
00:26:12,040 --> 00:26:14,240
Speaker 3: drawn up because you already have the home now or

497
00:26:14,280 --> 00:26:16,560
Speaker 3: the land, so you don't have to rush. And now,

498
00:26:17,359 --> 00:26:21,840
Speaker 3: once you have your plans submitted, then applied for your

499
00:26:21,880 --> 00:26:24,960
Speaker 3: construction loan, because now it's more like a refinance. There's

500
00:26:24,960 --> 00:26:27,480
Speaker 3: no time clock, there's no sellers. You can take four

501
00:26:27,520 --> 00:26:30,000
Speaker 3: months to close, it doesn't matter. And once your plans

502
00:26:30,040 --> 00:26:35,639
Speaker 3: get approved, then close on your construction loan, then boom,

503
00:26:35,840 --> 00:26:39,359
Speaker 3: you can start your construction pretty much immediately.

504
00:26:39,440 --> 00:26:41,679
Speaker 7: Yeah, so let's talk about the other way when you

505
00:26:41,680 --> 00:26:43,840
Speaker 7: have a lender that will do both give you construction,

506
00:26:44,320 --> 00:26:48,560
Speaker 7: the construction loan for building it, and then actually having

507
00:26:48,600 --> 00:26:49,520
Speaker 7: the house built itself.

508
00:26:49,600 --> 00:26:51,760
Speaker 4: Right, So there's two pieces you're paying for both.

509
00:26:52,080 --> 00:26:54,119
Speaker 7: Now, I think the misconception this is something that we

510
00:26:54,200 --> 00:26:56,520
Speaker 7: kind of learned through the process. Like you get that

511
00:26:56,600 --> 00:26:58,639
Speaker 7: time frame to build, and you know you do that

512
00:26:58,680 --> 00:27:01,720
Speaker 7: with your building and they'll say it's between six to

513
00:27:02,720 --> 00:27:05,200
Speaker 7: twelve months, we can get this house built, correct, Right,

514
00:27:05,240 --> 00:27:07,840
Speaker 7: But you're at the mercy of the town, correct, right,

515
00:27:07,840 --> 00:27:10,359
Speaker 7: because and the builder and the builder and the engineers

516
00:27:10,880 --> 00:27:11,800
Speaker 7: and the architects.

517
00:27:11,800 --> 00:27:12,200
Speaker 4: Correct.

518
00:27:12,800 --> 00:27:15,000
Speaker 7: But your paying for a house that you may not

519
00:27:15,040 --> 00:27:18,200
Speaker 7: even live in, right because sometimes the building process may

520
00:27:18,280 --> 00:27:21,920
Speaker 7: take sixteen months, absolutely, and so like for a year

521
00:27:21,960 --> 00:27:24,280
Speaker 7: you might be paying interest, but after that twelve months,

522
00:27:24,400 --> 00:27:26,560
Speaker 7: now you're going to be paying that full loan. So yeah,

523
00:27:26,640 --> 00:27:28,840
Speaker 7: talk about that and the appurances that having residual income

524
00:27:28,840 --> 00:27:29,639
Speaker 7: in situations like this.

525
00:27:30,040 --> 00:27:33,840
Speaker 3: Yeah, so when you get a construction loan, first, it's

526
00:27:33,880 --> 00:27:38,359
Speaker 3: an interest. During the construction period, it's interest only payments. So,

527
00:27:38,480 --> 00:27:40,760
Speaker 3: like you said, you're going to be paying a mortgage payment,

528
00:27:40,800 --> 00:27:42,879
Speaker 3: you have to pay your property taxes, you have to

529
00:27:42,880 --> 00:27:47,080
Speaker 3: pay your homeowners insurance and builders insurance. You're going to

530
00:27:47,160 --> 00:27:50,159
Speaker 3: need buildings insurance as well to protect yourself on that end.

531
00:27:50,160 --> 00:27:52,320
Speaker 3: But yeah, you're going to have a payment. So if

532
00:27:52,359 --> 00:27:56,679
Speaker 3: it drags out, you know, and the lender says, okay,

533
00:27:56,840 --> 00:28:00,560
Speaker 3: now it's trying to convert from the construction to permanent.

534
00:28:01,000 --> 00:28:03,160
Speaker 3: Now you're going to be paying the mortgage payment. That's

535
00:28:03,160 --> 00:28:05,960
Speaker 3: going to be hired because now it's principal and interest

536
00:28:06,000 --> 00:28:09,960
Speaker 3: that's going to be included into your mortgage payment. And

537
00:28:10,040 --> 00:28:13,399
Speaker 3: so your first twelve sixteen months is all going to

538
00:28:13,400 --> 00:28:16,040
Speaker 3: be interest only. And that's why it's very important if

539
00:28:16,040 --> 00:28:20,159
Speaker 3: you're going to take the leap of faith and build

540
00:28:20,160 --> 00:28:23,000
Speaker 3: your own home, especially if you're going to act as

541
00:28:23,480 --> 00:28:26,600
Speaker 3: your project manager. You're hiring your GC, you're hiring your builder,

542
00:28:26,720 --> 00:28:28,919
Speaker 3: you're hiring all these folks. And you're not buying directly

543
00:28:28,960 --> 00:28:31,800
Speaker 3: from a builder, right, you're hiring everybody. You have to

544
00:28:31,840 --> 00:28:33,520
Speaker 3: make sure you know what you're doing and you're hiring

545
00:28:33,520 --> 00:28:36,680
Speaker 3: the right folks, because folks will sit here and overpromise

546
00:28:36,720 --> 00:28:40,520
Speaker 3: and underdeliver you and kill your entire timeline, which ultimately

547
00:28:40,600 --> 00:28:43,360
Speaker 3: is going to cost you more money as the homeowner.

548
00:28:43,480 --> 00:28:46,800
Speaker 3: So it's very important that you make sure you vet

549
00:28:46,840 --> 00:28:49,960
Speaker 3: out your team because your team has to understand the

550
00:28:50,120 --> 00:28:53,600
Speaker 3: urgency of you getting it done the timeline, and they

551
00:28:53,640 --> 00:28:56,720
Speaker 3: have to understand how they get paid as well, because

552
00:28:56,760 --> 00:29:00,160
Speaker 3: there's a process of how they get paid. So when

553
00:29:00,280 --> 00:29:03,440
Speaker 3: you close on a construction loan, the lender is only

554
00:29:03,520 --> 00:29:08,000
Speaker 3: going to give you ten percent or max fifty thousand

555
00:29:08,240 --> 00:29:12,880
Speaker 3: within ten ten days fourteen days after closing, and typically

556
00:29:13,160 --> 00:29:18,000
Speaker 3: that money is used to cover you know, demolition permits, plans,

557
00:29:18,080 --> 00:29:20,120
Speaker 3: you know, things of that nature. You're kind of like

558
00:29:20,160 --> 00:29:23,280
Speaker 3: your soft costs, right, But the lender, I mean, the

559
00:29:23,320 --> 00:29:26,280
Speaker 3: builder will have to be able to front that job.

560
00:29:26,320 --> 00:29:28,240
Speaker 3: So let's just say that the building's going to cost

561
00:29:28,240 --> 00:29:31,600
Speaker 3: a million dollars Fellas to build, and they only released

562
00:29:31,640 --> 00:29:34,880
Speaker 3: in fifty thousand dollars. But the first phase of the

563
00:29:34,880 --> 00:29:36,880
Speaker 3: project is going to cost you all quarter a million dollars.

564
00:29:36,920 --> 00:29:40,320
Speaker 3: So now where does that two hundred thousand come from? Right,

565
00:29:40,480 --> 00:29:43,680
Speaker 3: that two hundred thousand has to come from the builder.

566
00:29:43,960 --> 00:29:47,200
Speaker 3: They have to be in position to start that job.

567
00:29:47,600 --> 00:29:51,160
Speaker 3: Complete phase one. Then the lender will send out an

568
00:29:51,200 --> 00:29:54,760
Speaker 3: inspector to inspect, you know, phase one, to make sure

569
00:29:54,840 --> 00:29:59,120
Speaker 3: autis across Aza dott it and then the inspector will

570
00:29:59,120 --> 00:30:01,040
Speaker 3: go back to the bank and say, okay, you can

571
00:30:01,080 --> 00:30:04,280
Speaker 3: release the draw of two hundred thousand. And then now

572
00:30:04,280 --> 00:30:06,560
Speaker 3: the builder gets paid that two hundred thousand, and then

573
00:30:06,560 --> 00:30:09,000
Speaker 3: they move on to phase two and it goes on

574
00:30:09,280 --> 00:30:11,960
Speaker 3: like that until the job is complete.

575
00:30:12,080 --> 00:30:12,720
Speaker 4: So it's very.

576
00:30:12,640 --> 00:30:15,920
Speaker 3: Important that you understand your builder, understands how they get

577
00:30:16,000 --> 00:30:19,240
Speaker 3: paid and they are liquid because a lot of builders

578
00:30:19,280 --> 00:30:22,480
Speaker 3: out here are not liquid as well. So you can't

579
00:30:22,520 --> 00:30:25,640
Speaker 3: pick the builder just because they might have gave you

580
00:30:25,720 --> 00:30:26,640
Speaker 3: the cheapest price.

581
00:30:27,520 --> 00:30:28,560
Speaker 6: How do you note that liquor.

582
00:30:28,680 --> 00:30:32,360
Speaker 3: Now the lenders will vet the builders as well. There's

583
00:30:32,400 --> 00:30:35,080
Speaker 3: a lot of lenders out there that use third party.

584
00:30:36,400 --> 00:30:36,840
Speaker 4: Companies.

585
00:30:36,960 --> 00:30:38,480
Speaker 3: I'm not going to mention their name because they don't

586
00:30:38,520 --> 00:30:41,840
Speaker 3: endorse us, right, and they will have to see the

587
00:30:41,880 --> 00:30:45,560
Speaker 3: liquidity of the builder bank statements, do you have amax's

588
00:30:45,640 --> 00:30:49,760
Speaker 3: whatever it is, to make sure that they are liquid to.

589
00:30:49,760 --> 00:30:51,120
Speaker 4: Be able to do this job.

590
00:30:51,160 --> 00:30:54,560
Speaker 3: Because the lenders, again they're putting out a million dollars

591
00:30:54,640 --> 00:30:58,440
Speaker 3: on construction. They want this house built. They don't want

592
00:30:58,440 --> 00:31:00,840
Speaker 3: to own the property, especially if it is something that's

593
00:31:00,880 --> 00:31:05,240
Speaker 3: not built right. So it's in their best interest as

594
00:31:05,280 --> 00:31:08,640
Speaker 3: a lender to make sure that the builder can get

595
00:31:08,680 --> 00:31:11,680
Speaker 3: this job done and they have the experience to get

596
00:31:11,760 --> 00:31:13,640
Speaker 3: it done as well, because a lot of people talk

597
00:31:13,680 --> 00:31:16,160
Speaker 3: to talk, but they can't walk the walk. So that's

598
00:31:16,200 --> 00:31:18,240
Speaker 3: why again like a two or three K, I like

599
00:31:18,240 --> 00:31:20,000
Speaker 3: to call a two or three K the training will

600
00:31:20,040 --> 00:31:24,040
Speaker 3: for investors. So a construction loan when you're going through

601
00:31:24,160 --> 00:31:28,320
Speaker 3: like the conventional way for a homeowner, is kind of

602
00:31:28,360 --> 00:31:30,560
Speaker 3: like training wheels if you want to get into development

603
00:31:30,600 --> 00:31:33,640
Speaker 3: as well, because you have the lender by your side

604
00:31:33,720 --> 00:31:36,400
Speaker 3: and the inspectors by your side that work for you,

605
00:31:36,480 --> 00:31:40,280
Speaker 3: and the lender to protect you against the builders because

606
00:31:41,880 --> 00:31:44,680
Speaker 3: you know, we all say contractors are you know, you

607
00:31:44,720 --> 00:31:46,800
Speaker 3: know what I'm saying, but you got to But the

608
00:31:47,160 --> 00:31:49,240
Speaker 3: bank is always going to make sure that they protect

609
00:31:49,280 --> 00:31:50,960
Speaker 3: the investment at the same.

610
00:31:50,760 --> 00:31:58,800
Speaker 6: Time, So what happens if it's not going right? Like,

611
00:31:58,880 --> 00:32:04,280
Speaker 6: what as as a customer, what recourse do you have

612
00:32:04,960 --> 00:32:08,960
Speaker 6: if the contractor isn't doing what he's supposed to be doing.

613
00:32:09,320 --> 00:32:11,360
Speaker 6: It's not moving at the timeline and that's supposed to

614
00:32:11,360 --> 00:32:13,200
Speaker 6: be moved there, Like what can you do?

615
00:32:13,440 --> 00:32:16,239
Speaker 3: You can fire them, but then now you start from

616
00:32:16,320 --> 00:32:18,680
Speaker 3: square one again. Right now you have to find a

617
00:32:18,680 --> 00:32:20,640
Speaker 3: new builder. Now they have to give you their court.

618
00:32:21,320 --> 00:32:23,600
Speaker 3: Now that's new paperwork that has to get submitted to

619
00:32:23,680 --> 00:32:27,360
Speaker 3: the bank. Right, So it's a whole process that if

620
00:32:27,360 --> 00:32:30,800
Speaker 3: you're doing this post closing right, you're doing the post

621
00:32:30,840 --> 00:32:35,040
Speaker 3: closing and you're already in your project. It's like anything

622
00:32:35,080 --> 00:32:37,080
Speaker 3: if you do. If you do a bathroom over in

623
00:32:37,120 --> 00:32:39,440
Speaker 3: your house and you don't like the contract and you

624
00:32:39,480 --> 00:32:41,719
Speaker 3: fired them, now a new contract is going to come

625
00:32:41,760 --> 00:32:43,880
Speaker 3: in and say, well, their work is not good, So

626
00:32:43,960 --> 00:32:46,360
Speaker 3: now I got to tear all their work down and

627
00:32:46,440 --> 00:32:49,400
Speaker 3: restart it over again. So now the cost will be

628
00:32:49,440 --> 00:32:52,320
Speaker 3: more than what you anticipated. So you have to weigh

629
00:32:52,320 --> 00:32:55,040
Speaker 3: out what's the opportunity cost really of me firing my

630
00:32:55,120 --> 00:32:58,959
Speaker 3: contractor right now or my builder at the phase that

631
00:32:58,960 --> 00:33:01,280
Speaker 3: I'm in right now, because I'm already started and it

632
00:33:01,320 --> 00:33:04,120
Speaker 3: can wind up costing you more money. Now, if they're

633
00:33:04,160 --> 00:33:06,960
Speaker 3: just negligent and they're just disrespectful and they just don't

634
00:33:07,280 --> 00:33:09,280
Speaker 3: they're not really there, then obviously you're going to have

635
00:33:09,280 --> 00:33:11,560
Speaker 3: no choice. But you got to handle your business because

636
00:33:11,560 --> 00:33:13,760
Speaker 3: you are a CEO. This is real estate, right, so

637
00:33:13,800 --> 00:33:15,880
Speaker 3: you have to fire them. But understand there's going to

638
00:33:15,920 --> 00:33:18,080
Speaker 3: be now a whole new vetting process that now the

639
00:33:18,160 --> 00:33:20,560
Speaker 3: lender is going to have to do. And then ultimately,

640
00:33:20,920 --> 00:33:23,800
Speaker 3: if they're going to charge more than what the scope

641
00:33:23,800 --> 00:33:27,760
Speaker 3: of workers already approve, you're not getting no more money.

642
00:33:28,000 --> 00:33:29,560
Speaker 4: So where's that extra money.

643
00:33:29,560 --> 00:33:31,680
Speaker 3: If they're gonna charge your extra fifty one hundred K,

644
00:33:31,960 --> 00:33:34,000
Speaker 3: where's that extra money coming from. It's coming from you

645
00:33:34,920 --> 00:33:38,560
Speaker 3: because you decided to fire them. So it's best while

646
00:33:38,560 --> 00:33:41,760
Speaker 3: you're in the underwriting process. If you're going to make

647
00:33:41,840 --> 00:33:44,960
Speaker 3: any changes with your contract or your builder, is best

648
00:33:45,000 --> 00:33:47,720
Speaker 3: to do it while you're in the process because if

649
00:33:47,720 --> 00:33:52,320
Speaker 3: they come with the higher scope of work, then you

650
00:33:52,360 --> 00:33:55,880
Speaker 3: can protect yourself easier and reapply or not reapply, but

651
00:33:55,960 --> 00:33:58,440
Speaker 3: you can ask for all request to see if you

652
00:33:58,480 --> 00:34:02,560
Speaker 3: can get more of a approval to compensate for that

653
00:34:02,720 --> 00:34:05,440
Speaker 3: extra money. So you just have to make sure again

654
00:34:05,760 --> 00:34:09,560
Speaker 3: vetting out your people to make sure that they are

655
00:34:09,680 --> 00:34:10,600
Speaker 3: who they say they are.

656
00:34:10,680 --> 00:34:12,920
Speaker 7: If I'm looking to build a new property and I'm

657
00:34:12,960 --> 00:34:15,760
Speaker 7: trying to find land, I know you can vet everybody

658
00:34:15,760 --> 00:34:18,000
Speaker 7: on that side, but is there any way to or

659
00:34:18,120 --> 00:34:20,839
Speaker 7: is there a database that you can vet the town

660
00:34:20,880 --> 00:34:23,720
Speaker 7: engineer or the county engineer or the building department.

661
00:34:23,880 --> 00:34:24,759
Speaker 4: Is there any way to do that?

662
00:34:24,840 --> 00:34:27,320
Speaker 7: Because a lot of times, and we've seen it personally,

663
00:34:27,520 --> 00:34:31,680
Speaker 7: like they're the ones that are holding up the whole things, right,

664
00:34:31,719 --> 00:34:34,040
Speaker 7: Like I might not move to that town, or I

665
00:34:34,080 --> 00:34:35,759
Speaker 7: might not try to develop there if I know there's

666
00:34:35,800 --> 00:34:37,360
Speaker 7: going to be that type of ay, if they have

667
00:34:37,400 --> 00:34:38,080
Speaker 7: a history of that.

668
00:34:38,200 --> 00:34:41,520
Speaker 3: So typically when you're applying for permits and stuff like that,

669
00:34:42,760 --> 00:34:45,680
Speaker 3: you would want to hire an expediter, right And an

670
00:34:45,719 --> 00:34:49,160
Speaker 3: expedite is someone who works within the town or has

671
00:34:49,160 --> 00:34:52,160
Speaker 3: a relationship with them and they're able to push the

672
00:34:52,200 --> 00:34:57,799
Speaker 3: paperwork through in a timely matter. But ultimately, again it's relationships, right,

673
00:34:57,880 --> 00:35:00,400
Speaker 3: Like if you hire a great architect and they have

674
00:35:00,480 --> 00:35:03,399
Speaker 3: good relationships within the town because they're doing a lot

675
00:35:03,440 --> 00:35:05,960
Speaker 3: of business and they're doing a lot of jobs, then

676
00:35:06,000 --> 00:35:08,560
Speaker 3: they might not need to hire experdita because they know

677
00:35:08,960 --> 00:35:13,080
Speaker 3: Mary Sue over here in this department and their sons

678
00:35:13,120 --> 00:35:15,440
Speaker 3: go to soccer together, right, so they can have that

679
00:35:15,520 --> 00:35:17,759
Speaker 3: type of conversation and kind of try to get things

680
00:35:17,800 --> 00:35:21,000
Speaker 3: pushed through. But that's hit and miss as well. So no,

681
00:35:21,280 --> 00:35:24,960
Speaker 3: is there a way to vet, really really not. It's

682
00:35:25,120 --> 00:35:27,200
Speaker 3: kind of the lucky to draw and you have to

683
00:35:27,239 --> 00:35:30,680
Speaker 3: put your plans in as complete as possible because sometimes

684
00:35:30,719 --> 00:35:33,000
Speaker 3: they'll come back and they want corrections to your plans

685
00:35:33,000 --> 00:35:34,840
Speaker 3: and then you got to go back and forth as well.

686
00:35:35,239 --> 00:35:39,600
Speaker 3: So it's unfortunately, it's one of those situations you're damned

687
00:35:39,640 --> 00:35:42,399
Speaker 3: if you do, you're damned if you don't. The town

688
00:35:42,480 --> 00:35:44,800
Speaker 3: is always going to come back with something. They're always

689
00:35:44,800 --> 00:35:47,280
Speaker 3: going to want some sort of correction, and there's always

690
00:35:47,320 --> 00:35:49,640
Speaker 3: going to be some back and forth. And that's why

691
00:35:50,400 --> 00:35:53,520
Speaker 3: your architect and building is probably one of the most

692
00:35:53,520 --> 00:35:56,399
Speaker 3: important roles because they have to be quick on their feet.

693
00:35:56,440 --> 00:36:00,720
Speaker 3: Some architects are just slow as hell to change something

694
00:36:01,080 --> 00:36:04,879
Speaker 3: so minor to us. It might take them thirty days.

695
00:36:05,280 --> 00:36:08,920
Speaker 3: That's setting your timeline back, right, So again I think

696
00:36:09,520 --> 00:36:13,200
Speaker 3: not vetting the building apartment, you need to vet the

697
00:36:13,280 --> 00:36:18,040
Speaker 3: architect to make sure that what's their turnaround for changes?

698
00:36:18,600 --> 00:36:21,279
Speaker 3: What's their relationships with the town that you're building in.

699
00:36:21,600 --> 00:36:25,360
Speaker 3: How many jobs have they submitted in the last sixty

700
00:36:25,480 --> 00:36:29,000
Speaker 3: ninety twelve months? Right, these are questions when you're interviewing

701
00:36:29,000 --> 00:36:32,000
Speaker 3: an architect. Just don't go off the referral like, oh,

702
00:36:32,000 --> 00:36:34,000
Speaker 3: he's a great architect in this than a third Nah,

703
00:36:34,120 --> 00:36:37,480
Speaker 3: Chill ask the questions. Right, this is your house, this

704
00:36:37,560 --> 00:36:40,719
Speaker 3: is your business. You own the property, You're responsible for

705
00:36:40,760 --> 00:36:43,080
Speaker 3: the mortgage payment, nobody else. So you have to make

706
00:36:43,120 --> 00:36:45,719
Speaker 3: sure whoever you're hiring, you have to make sure they

707
00:36:45,719 --> 00:36:47,839
Speaker 3: can get that job done. And they have a sense

708
00:36:47,880 --> 00:36:50,520
Speaker 3: of urgency too, right, And because a lot of these

709
00:36:50,560 --> 00:36:51,799
Speaker 3: folks they just don't have it.

710
00:36:52,640 --> 00:36:55,640
Speaker 6: So let's talk about build to rent financing.

711
00:36:55,880 --> 00:36:58,040
Speaker 4: Build to rent finance, yes, investors.

712
00:36:58,640 --> 00:37:03,920
Speaker 3: Built to rent financing is you know something that's happening

713
00:37:04,400 --> 00:37:08,320
Speaker 3: nationwide from a mom and pop level and also from.

714
00:37:08,120 --> 00:37:09,359
Speaker 4: The institutional level.

715
00:37:09,440 --> 00:37:14,080
Speaker 3: Right, So build to rent financing, you can buy them

716
00:37:14,080 --> 00:37:16,879
Speaker 3: in your you can get these Basically, it's the same

717
00:37:16,880 --> 00:37:19,759
Speaker 3: thing like a constructional Right, you find a plot of

718
00:37:19,840 --> 00:37:24,319
Speaker 3: land or older property and you want to build a

719
00:37:24,400 --> 00:37:28,040
Speaker 3: multi family building, you know, five units, ten units, What

720
00:37:28,239 --> 00:37:33,080
Speaker 3: have you, and most cases you want to have some

721
00:37:33,120 --> 00:37:38,120
Speaker 3: sort of experience with investing number one. So most lenders,

722
00:37:38,160 --> 00:37:41,560
Speaker 3: if you're a first time investor, they probably won't lend

723
00:37:41,600 --> 00:37:44,400
Speaker 3: to you on build to rent financing because you just

724
00:37:44,400 --> 00:37:47,160
Speaker 3: don't have the experience of being a landlord. So that's

725
00:37:47,280 --> 00:37:49,680
Speaker 3: number one. So this is really not like a first

726
00:37:49,760 --> 00:37:53,600
Speaker 3: time home buyer type of product. It's for the real

727
00:37:53,719 --> 00:37:56,920
Speaker 3: estate investor. Everything is in your LLC, it's not in

728
00:37:56,960 --> 00:37:59,919
Speaker 3: your personal name, just like when you're buying a turnkey proper.

729
00:38:00,400 --> 00:38:03,840
Speaker 3: But essentially it's the same like construction loan. You're getting

730
00:38:03,960 --> 00:38:07,839
Speaker 3: a loan from the bank to build the multifamily that

731
00:38:08,040 --> 00:38:12,399
Speaker 3: ultimately you're not flipping the multifamily. You're going to rent

732
00:38:12,400 --> 00:38:15,279
Speaker 3: it out. It's a new construction multifamily. And you can

733
00:38:15,320 --> 00:38:19,719
Speaker 3: do this product nationwide, so it's a great product. Right now,

734
00:38:19,840 --> 00:38:21,480
Speaker 3: interest rates are going to be a little bit high

735
00:38:21,600 --> 00:38:24,160
Speaker 3: on a higher level just because the market that we end,

736
00:38:24,360 --> 00:38:26,439
Speaker 3: so you have to make sure the numbers still work.

737
00:38:27,160 --> 00:38:31,080
Speaker 3: But traditionally for this type of financing, you can expect

738
00:38:31,400 --> 00:38:32,960
Speaker 3: you need to be able to put down at least

739
00:38:33,000 --> 00:38:35,480
Speaker 3: a thirty percent down payment twenty five to thirty percent

740
00:38:35,560 --> 00:38:38,520
Speaker 3: down payment plus your closing costs to get this done.

741
00:38:38,719 --> 00:38:42,120
Speaker 3: But again it's the same thing you need architects, you

742
00:38:42,239 --> 00:38:43,760
Speaker 3: need to get your plans.

743
00:38:44,000 --> 00:38:45,200
Speaker 4: You got to submit from.

744
00:38:46,160 --> 00:38:48,359
Speaker 7: This episode is brought to you by P and C Bank.

745
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746
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748
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749
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750
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752
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755
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756
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757
00:39:30,120 --> 00:39:32,600
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758
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759
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760
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761
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762
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763
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764
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765
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766
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767
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768
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769
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770
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772
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775
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776
00:40:36,400 --> 00:40:40,080
Speaker 1: An illegal alien from Guatemala charged with raping a child

777
00:40:40,080 --> 00:40:43,920
Speaker 1: in Massachusetts. An MS thirteen gang member from El Salvador

778
00:40:44,160 --> 00:40:48,279
Speaker 1: accused of murdering a Texas man of Venezuelan charged with

779
00:40:48,360 --> 00:40:52,239
Speaker 1: filming and selling child pornography in Michigan. These are just

780
00:40:52,360 --> 00:40:56,120
Speaker 1: some of the heinous migrant criminals caught because of President

781
00:40:56,160 --> 00:40:59,600
Speaker 1: Donald J. Trump's leadership. I'm Christine Nohm the United States

782
00:40:59,680 --> 00:41:04,160
Speaker 1: Secret Terry of Homeland Security. Under President Trump, attempted illegal

783
00:41:04,200 --> 00:41:07,880
Speaker 1: border crossings are at the lowest levels ever recorded, and

784
00:41:07,920 --> 00:41:11,279
Speaker 1: over one hundred thousand illegal aliens have been arrested. If

785
00:41:11,320 --> 00:41:14,960
Speaker 1: you were here illegally, you're next. You will be fine

786
00:41:15,000 --> 00:41:19,120
Speaker 1: nearly one thousand dollars a day, imprisoned and deported. You

787
00:41:19,200 --> 00:41:22,720
Speaker 1: will never return. But if you register using our CBP

788
00:41:22,880 --> 00:41:25,600
Speaker 1: home app and leave now, you could be allowed to

789
00:41:25,680 --> 00:41:30,480
Speaker 1: return legally. Do what's right. Leave now. Under President Trump,

790
00:41:30,640 --> 00:41:34,280
Speaker 1: America's laws border and families will be protected.

791
00:41:34,360 --> 00:41:37,160
Speaker 2: Sponsored by the United States Department of Homeland Security permits.

792
00:41:37,200 --> 00:41:39,680
Speaker 3: You need a construction crew. Your construction crew has to

793
00:41:39,719 --> 00:41:43,160
Speaker 3: have experience will build them multifamilies. So it's not like

794
00:41:43,800 --> 00:41:45,319
Speaker 3: you have my wake up and I'm gonna do build

795
00:41:45,400 --> 00:41:48,200
Speaker 3: rent right. You have to have a team in place

796
00:41:48,760 --> 00:41:51,080
Speaker 3: that can actually get the job done. Because now when

797
00:41:51,120 --> 00:41:54,640
Speaker 3: you get to building attenu unit, the fifteen unit, a

798
00:41:54,719 --> 00:41:59,080
Speaker 3: five unit, whatever it is, it's a lot more work

799
00:41:59,120 --> 00:42:01,960
Speaker 3: that has to be done for I'm a design standpoint

800
00:42:02,160 --> 00:42:05,239
Speaker 3: to make sure everything's cold, and they're now submitting that

801
00:42:05,640 --> 00:42:08,440
Speaker 3: to the town. Now, that process can take a little

802
00:42:08,440 --> 00:42:11,600
Speaker 3: while longer to get approved just because of the amount

803
00:42:11,719 --> 00:42:14,759
Speaker 3: of plans that has to be submitted to the town.

804
00:42:14,880 --> 00:42:18,600
Speaker 7: So you got a slightly higher interest rate. Correct, you're

805
00:42:18,600 --> 00:42:20,000
Speaker 7: going to put more of a down payment.

806
00:42:20,080 --> 00:42:20,600
Speaker 4: Correct.

807
00:42:20,920 --> 00:42:25,040
Speaker 7: But on the flip side, new bills always attract premium

808
00:42:25,040 --> 00:42:28,560
Speaker 7: customers absolutely, and so you'll probably get high rental costs

809
00:42:28,600 --> 00:42:35,200
Speaker 7: from your renters and new construction. New bills always require

810
00:42:35,600 --> 00:42:37,520
Speaker 7: for long term or at least for the immedia future,

811
00:42:37,760 --> 00:42:39,520
Speaker 7: fewer maintenance costs when the people are in there.

812
00:42:39,640 --> 00:42:40,120
Speaker 4: Absolutely.

813
00:42:40,200 --> 00:42:43,480
Speaker 7: Are there any other like hitting advantages that are inside

814
00:42:43,560 --> 00:42:44,080
Speaker 7: this is loan.

815
00:42:44,320 --> 00:42:46,640
Speaker 3: Well, I can tell you about some cons before I

816
00:42:46,680 --> 00:42:48,680
Speaker 3: go into some of the images. Right, So let's look

817
00:42:48,719 --> 00:42:51,799
Speaker 3: at when you're doing anything build to rent. Remember this

818
00:42:51,840 --> 00:42:54,160
Speaker 3: is an investment, but it's going to take time for

819
00:42:54,239 --> 00:42:56,480
Speaker 3: you to recoup your investment, right because you got to

820
00:42:56,520 --> 00:42:59,239
Speaker 3: think about this depending on where you're building that and

821
00:42:59,480 --> 00:43:02,439
Speaker 3: to just get the plans approve, that could be six

822
00:43:02,480 --> 00:43:05,520
Speaker 3: months eight months alone, right, then you have to build

823
00:43:05,560 --> 00:43:09,080
Speaker 3: the property. Right, Building the property can take a year,

824
00:43:09,640 --> 00:43:11,640
Speaker 3: maybe a little bit longer. So you gotta figure your

825
00:43:11,640 --> 00:43:14,600
Speaker 3: first two years you have no income coming into this property,

826
00:43:14,920 --> 00:43:17,040
Speaker 3: and then now you have to go out here and

827
00:43:17,080 --> 00:43:20,040
Speaker 3: rent the property, and depending on the market at that time,

828
00:43:20,440 --> 00:43:23,320
Speaker 3: you might be protracting two years ago. Hey the rents

829
00:43:23,320 --> 00:43:26,760
Speaker 3: are here, I'm going to make X right, or construction

830
00:43:26,920 --> 00:43:30,520
Speaker 3: costs is this. But if construction costs goes up while

831
00:43:30,520 --> 00:43:34,040
Speaker 3: you're filing your permits, that can blow up your numbers too.

832
00:43:34,640 --> 00:43:37,880
Speaker 3: Let's say a rental income goes down or rent income

833
00:43:37,920 --> 00:43:40,080
Speaker 3: goes down in your neighborhood, that can blow up your

834
00:43:40,160 --> 00:43:43,880
Speaker 3: numbers as well. So there's cons with doing any type

835
00:43:43,920 --> 00:43:46,520
Speaker 3: of build to rent type of finance. And so I

836
00:43:46,560 --> 00:43:48,840
Speaker 3: want any type of deal I should say, not just

837
00:43:48,880 --> 00:43:50,960
Speaker 3: the finance of just taking on those type of deals,

838
00:43:51,080 --> 00:43:55,520
Speaker 3: because anything can happen and within that time frame before

839
00:43:55,560 --> 00:43:58,160
Speaker 3: you even put a shovel on the ground, right, which

840
00:43:58,200 --> 00:43:59,920
Speaker 3: can really hurt your numbers. So I want all of

841
00:44:00,040 --> 00:44:02,919
Speaker 3: while folks who are watching us to really understand you

842
00:44:03,000 --> 00:44:05,720
Speaker 3: can't have these lofty numbers because a lot of times

843
00:44:05,719 --> 00:44:08,279
Speaker 3: people will come and say, oh, I'm gonna charge this.

844
00:44:08,600 --> 00:44:10,120
Speaker 3: I know the market is this, but I'm gonna go

845
00:44:10,160 --> 00:44:13,520
Speaker 3: to hear No, you can't depend on that, right because

846
00:44:13,960 --> 00:44:17,800
Speaker 3: you got to always plan for the very worst case scenario. Now,

847
00:44:18,160 --> 00:44:21,279
Speaker 3: on the flip side, your force and appreciation. That's really

848
00:44:21,320 --> 00:44:23,799
Speaker 3: the truest way to build wealth with real estate is

849
00:44:23,840 --> 00:44:27,040
Speaker 3: now your force and appreciation. Right now, we're still in

850
00:44:27,080 --> 00:44:33,440
Speaker 3: an appreciated market. Although home prices and values have come down,

851
00:44:33,960 --> 00:44:38,120
Speaker 3: they haven't went negative, right, so you're forcing the appreciation.

852
00:44:38,360 --> 00:44:42,000
Speaker 3: If you're able to get good cost with materials, you

853
00:44:42,040 --> 00:44:44,600
Speaker 3: can probably find yourself to have a lot of equity

854
00:44:45,040 --> 00:44:47,919
Speaker 3: in that multifamily that you're building, and then now you'll

855
00:44:47,920 --> 00:44:52,040
Speaker 3: be able to refinance out of that loan, get into

856
00:44:52,239 --> 00:44:55,239
Speaker 3: and possibly take some cash out now so you can

857
00:44:55,280 --> 00:44:59,440
Speaker 3: go and do another project. So builter and financing is

858
00:44:59,719 --> 00:45:02,160
Speaker 3: a grea right product, but it's strictly for live.

859
00:45:02,000 --> 00:45:05,080
Speaker 4: Men, not for freshmen, not for freshmen, not for freshmen,

860
00:45:05,680 --> 00:45:06,440
Speaker 4: not for freshmen.

861
00:45:06,520 --> 00:45:09,000
Speaker 3: You really have to you have to have a team,

862
00:45:09,080 --> 00:45:11,479
Speaker 3: And I will advise anyone who's looking to do any

863
00:45:11,520 --> 00:45:14,640
Speaker 3: type of bill to finance any type of deal like that,

864
00:45:14,960 --> 00:45:17,680
Speaker 3: get some partners who know what they're doing, because it's

865
00:45:17,719 --> 00:45:20,560
Speaker 3: a lot to try to develop property, and if you're

866
00:45:20,560 --> 00:45:23,160
Speaker 3: a rookie, you're gonna make a lot of mistakes, and

867
00:45:23,160 --> 00:45:27,080
Speaker 3: it's almost sometimes better to either pay for some sort

868
00:45:27,120 --> 00:45:31,840
Speaker 3: of consultant or mentor because that will save you a

869
00:45:31,880 --> 00:45:34,800
Speaker 3: lot of time, mistakes, and money.

870
00:45:35,360 --> 00:45:37,719
Speaker 4: So I would highly advise anyone who's.

871
00:45:37,480 --> 00:45:39,640
Speaker 3: Looking to do this for the first time to get

872
00:45:39,800 --> 00:45:42,960
Speaker 3: to get some real people in their circle that can

873
00:45:43,000 --> 00:45:45,720
Speaker 3: really help them and guide them. So that way you learn.

874
00:45:45,880 --> 00:45:49,640
Speaker 3: You're paying for it, but you're earning while you're learning.

875
00:45:49,520 --> 00:45:50,080
Speaker 4: So to speak.

876
00:45:50,600 --> 00:45:55,759
Speaker 6: So what about people you made a video? I think

877
00:45:55,800 --> 00:45:58,360
Speaker 6: about this when putting a house in your name as

878
00:45:58,400 --> 00:46:00,160
Speaker 6: opposed to putting a house not in your name so

879
00:46:00,200 --> 00:46:02,560
Speaker 6: people can't find out where you live. Different things of

880
00:46:02,560 --> 00:46:03,000
Speaker 6: the nature.

881
00:46:03,160 --> 00:46:04,160
Speaker 4: Yeah, what's the what's the.

882
00:46:04,120 --> 00:46:04,480
Speaker 6: Deal with that?

883
00:46:05,080 --> 00:46:08,600
Speaker 3: So when you're buying a property, and if you're using

884
00:46:08,880 --> 00:46:11,719
Speaker 3: a non QM loan, a non QM loan is a

885
00:46:11,760 --> 00:46:16,040
Speaker 3: non qualified mortgage that basically means that Fannie Mae Freddie

886
00:46:16,120 --> 00:46:20,839
Speaker 3: mac fha VA won't purchase that loan in the secondary market. Right,

887
00:46:21,160 --> 00:46:25,160
Speaker 3: this is a portfolio loan, which more non traditional lenders

888
00:46:25,160 --> 00:46:30,040
Speaker 3: will use for non traditional buyers. Right now, if you're

889
00:46:30,080 --> 00:46:34,520
Speaker 3: buying a primary residence, there are several lenders out there

890
00:46:34,920 --> 00:46:38,040
Speaker 3: that will allow you to buy that primary residence in

891
00:46:38,080 --> 00:46:41,600
Speaker 3: your LLC name. Right, we are living in the post

892
00:46:41,640 --> 00:46:43,920
Speaker 3: pandemic era where a lot of people made a lot

893
00:46:43,920 --> 00:46:47,160
Speaker 3: of money over the past two years, and folks are

894
00:46:47,160 --> 00:46:51,120
Speaker 3: buying you know, their mini mansions and their the mansions

895
00:46:51,200 --> 00:46:55,040
Speaker 3: right now. And if you don't want the world to

896
00:46:55,120 --> 00:46:58,520
Speaker 3: be able to find you, the best way is to

897
00:46:58,600 --> 00:47:02,319
Speaker 3: put it in a l so that way they can't

898
00:47:02,400 --> 00:47:05,560
Speaker 3: google your name and find you because it's in the LLC.

899
00:47:05,719 --> 00:47:07,759
Speaker 3: So now the mortgage is in the LLC name, the

900
00:47:07,840 --> 00:47:11,239
Speaker 3: deed of the properties in the LLC name. You own

901
00:47:11,239 --> 00:47:14,840
Speaker 3: the LLC, the LLC owns the properties, so it's the same.

902
00:47:16,719 --> 00:47:19,520
Speaker 3: It's the same way as if you're buying investment properties

903
00:47:19,760 --> 00:47:22,040
Speaker 3: and putting in LLC, but this just so happens to

904
00:47:22,080 --> 00:47:25,120
Speaker 3: be your primary residence. So there's several lenders that.

905
00:47:25,160 --> 00:47:27,960
Speaker 4: Out there that will allow you to do this.

906
00:47:28,440 --> 00:47:33,160
Speaker 3: But again, interest rates wise, right now, non QM loans

907
00:47:33,239 --> 00:47:36,120
Speaker 3: is going to be in at seven to nine percent range,

908
00:47:36,160 --> 00:47:38,600
Speaker 3: just depending on the lender and the deal that you're doing,

909
00:47:38,960 --> 00:47:41,040
Speaker 3: but it can get done. I've done several loans like

910
00:47:41,120 --> 00:47:45,120
Speaker 3: that over the past twenty four months where I'm working

911
00:47:45,120 --> 00:47:50,279
Speaker 3: with celebrities or influencers and we're using these products to

912
00:47:50,440 --> 00:47:53,000
Speaker 3: kind of shield their identity. And then also when you

913
00:47:53,040 --> 00:47:54,759
Speaker 3: set up the LLC and it's gonna be a brand

914
00:47:54,760 --> 00:47:56,960
Speaker 3: new LLC tool. By the way, it doesn't need established

915
00:47:57,000 --> 00:48:00,160
Speaker 3: business credit. You can have a minimum of a six

916
00:48:00,320 --> 00:48:02,840
Speaker 3: forty credit score. Obviously, the lower the credit score, the

917
00:48:02,920 --> 00:48:06,040
Speaker 3: higher interest rate. But the key to this is when

918
00:48:06,080 --> 00:48:08,160
Speaker 3: you open up the LLC. You know what it says.

919
00:48:08,200 --> 00:48:10,879
Speaker 3: You open an LLC, it says registered agent. You don't

920
00:48:10,880 --> 00:48:12,960
Speaker 3: put your name there as the registered agent. Because if

921
00:48:13,000 --> 00:48:16,080
Speaker 3: someone looks and in some way somehow finds that LLC

922
00:48:16,680 --> 00:48:19,920
Speaker 3: and your the name is the registered agent, then obviously

923
00:48:20,000 --> 00:48:22,120
Speaker 3: they're going to know you own it. So you got

924
00:48:22,120 --> 00:48:25,359
Speaker 3: to have another registered agent's name there, so that way

925
00:48:25,400 --> 00:48:28,560
Speaker 3: you showed it as well. But yeah, that's a play

926
00:48:28,640 --> 00:48:31,600
Speaker 3: right now that we're using on a daily basis and

927
00:48:31,640 --> 00:48:32,000
Speaker 3: my mobile.

928
00:48:32,040 --> 00:48:33,759
Speaker 6: It's the highest interest, it's a higher interest rate.

929
00:48:33,840 --> 00:48:36,560
Speaker 3: It's gonna if you have a lower credit score, but

930
00:48:36,640 --> 00:48:38,960
Speaker 3: if you have seven hundred plus credit scores. Because you're

931
00:48:38,960 --> 00:48:41,000
Speaker 3: still personal guaranteeing the loan. I want to make that

932
00:48:41,040 --> 00:48:44,880
Speaker 3: clear too. Although it's going in the LLC's name, you

933
00:48:45,160 --> 00:48:48,759
Speaker 3: as the owner are personal guaranteeing it. So if you

934
00:48:49,000 --> 00:48:53,280
Speaker 3: try to skip down and not pay the bank, okay,

935
00:48:53,320 --> 00:48:55,560
Speaker 3: they're gonna just put it on your personal credit and

936
00:48:55,600 --> 00:48:56,759
Speaker 3: then they're gonna come after you.

937
00:48:57,680 --> 00:48:59,960
Speaker 4: So yes, the.

938
00:49:00,080 --> 00:49:02,839
Speaker 3: Higher credit score, the lower the interest rate. And in

939
00:49:02,880 --> 00:49:05,719
Speaker 3: today's market, that lower rate will represent probably somewhere in

940
00:49:05,719 --> 00:49:09,279
Speaker 3: the sevens the higher nine ten percent, especially if you're

941
00:49:09,320 --> 00:49:10,600
Speaker 3: not low six hundred credit score.

942
00:49:10,880 --> 00:49:13,200
Speaker 7: So are there are ways and I saw you post

943
00:49:13,239 --> 00:49:16,520
Speaker 7: this as well, are there ways to lower the interest rate?

944
00:49:16,560 --> 00:49:18,399
Speaker 4: Obviously we've seen them going up over the.

945
00:49:18,360 --> 00:49:23,239
Speaker 7: Past twelve months and come down slightly over the past

946
00:49:23,280 --> 00:49:26,080
Speaker 7: month or so. Are there ways that we can use

947
00:49:26,520 --> 00:49:28,440
Speaker 7: or strategies we can use to lower our interest rates

948
00:49:28,440 --> 00:49:29,000
Speaker 7: when it comes to.

949
00:49:28,920 --> 00:49:32,440
Speaker 4: Finance, and all for primary residences or I.

950
00:49:32,440 --> 00:49:35,360
Speaker 7: Let's take primary and maybe I guess so.

951
00:49:35,719 --> 00:49:39,600
Speaker 3: Yeah, So if we're talking the traditional route, right, conventional FHA,

952
00:49:39,680 --> 00:49:41,879
Speaker 3: you could do what's called a two to one by

953
00:49:41,920 --> 00:49:44,680
Speaker 3: down right now. Two to one buy down is it

954
00:49:44,760 --> 00:49:47,279
Speaker 3: used to be popular during the wild cowboy days. It

955
00:49:47,360 --> 00:49:50,279
Speaker 3: was totally underwritten different but now I like the way

956
00:49:50,320 --> 00:49:53,120
Speaker 3: the program is. So basically, essentially, as a two to

957
00:49:53,120 --> 00:49:55,680
Speaker 3: one buy down, you need to seal this concession to

958
00:49:55,719 --> 00:49:56,640
Speaker 3: fund this buy down.

959
00:49:57,400 --> 00:49:58,680
Speaker 4: You the borrower.

960
00:49:58,320 --> 00:50:01,880
Speaker 3: Cannot use your own moneies to do the two to

961
00:50:01,880 --> 00:50:04,960
Speaker 3: one buy down. So how it works is a lender,

962
00:50:05,080 --> 00:50:08,400
Speaker 3: let's just say you're doing the FHA loan. Let's just

963
00:50:08,400 --> 00:50:10,040
Speaker 3: say today's rate is five and a half percent on

964
00:50:10,120 --> 00:50:14,439
Speaker 3: a thirty year fix. For example, the first year, your

965
00:50:14,520 --> 00:50:17,640
Speaker 3: interest rate will be three point five percent, the second

966
00:50:17,760 --> 00:50:20,360
Speaker 3: year the rate will be four point five percent, and

967
00:50:20,520 --> 00:50:24,759
Speaker 3: year three to maturity date will be the note rate

968
00:50:24,920 --> 00:50:28,040
Speaker 3: of five and a half percent. So the lender will

969
00:50:28,120 --> 00:50:30,759
Speaker 3: determine how much money are you saving between three and

970
00:50:30,840 --> 00:50:33,200
Speaker 3: a half percent and five and a half percent and

971
00:50:33,320 --> 00:50:35,760
Speaker 3: four and a half percent and five and a half percent.

972
00:50:35,960 --> 00:50:39,200
Speaker 3: So let's just say over those two years, you're saving

973
00:50:39,239 --> 00:50:42,600
Speaker 3: a combination of ten thousand dollars. Right, you need to

974
00:50:42,600 --> 00:50:46,680
Speaker 3: get a sealers concession of ten thousand dollars to fund

975
00:50:47,200 --> 00:50:50,000
Speaker 3: that two one buy down, and that essentially will give

976
00:50:50,080 --> 00:50:53,600
Speaker 3: you the opportunity to have a lower rate for the

977
00:50:53,640 --> 00:50:55,560
Speaker 3: first couple of years, kind of like a teaser rate,

978
00:50:55,640 --> 00:50:57,880
Speaker 3: so to speak. But it's a thirty year fixed program.

979
00:50:58,320 --> 00:51:01,359
Speaker 3: And the idea behind this is and this is why

980
00:51:01,440 --> 00:51:04,200
Speaker 3: lenders started bringing this program back when rates jumped up,

981
00:51:04,320 --> 00:51:06,520
Speaker 3: is because you know what lenders are still going to lend.

982
00:51:06,760 --> 00:51:08,440
Speaker 3: We're going to be creative, We're going to figure this

983
00:51:08,440 --> 00:51:10,759
Speaker 3: shit out right, it's totally illegal. So we're going to

984
00:51:10,800 --> 00:51:13,600
Speaker 3: bring back products that makes both sense and sense for

985
00:51:13,719 --> 00:51:17,520
Speaker 3: all parties involved. This is a way to make home

986
00:51:17,920 --> 00:51:21,719
Speaker 3: ownership affordable over the first couple of years while we

987
00:51:21,880 --> 00:51:25,000
Speaker 3: ride the wave of this current cycle, and when rates

988
00:51:25,040 --> 00:51:28,239
Speaker 3: tick down there's going to be a refinance boom in

989
00:51:28,320 --> 00:51:32,000
Speaker 3: the next twelve to eighteen months, maybe sooner right now.

990
00:51:32,040 --> 00:51:36,240
Speaker 3: Another way is to buy down points. Buying down points

991
00:51:36,640 --> 00:51:40,040
Speaker 3: now you can fund this with a salies concession, or

992
00:51:40,080 --> 00:51:42,000
Speaker 3: you can use your cash out of your bank account

993
00:51:42,040 --> 00:51:43,840
Speaker 3: to buy down points and as part of your closing

994
00:51:43,840 --> 00:51:47,359
Speaker 3: costs as well. And one point is equivalent of one

995
00:51:47,400 --> 00:51:50,399
Speaker 3: percent of the loan amount, So if you're buying, let's

996
00:51:50,400 --> 00:51:54,160
Speaker 3: just say it's a five hundred thousand dollars loan, one

997
00:51:54,200 --> 00:51:57,319
Speaker 3: point is five thousand dollars, and that will bring your

998
00:51:57,400 --> 00:52:00,800
Speaker 3: rate down, depending on the lender, a quarter point to

999
00:52:01,320 --> 00:52:03,080
Speaker 3: three eighths of a point. So if it started off

1000
00:52:03,080 --> 00:52:05,200
Speaker 3: at five and a half, you brought a point, it

1001
00:52:05,239 --> 00:52:08,040
Speaker 3: will go to five point one two five percent or

1002
00:52:08,160 --> 00:52:10,800
Speaker 3: five and a quarter on a thirty year fix. And

1003
00:52:11,480 --> 00:52:14,560
Speaker 3: each point you buy will knock down quarter to three

1004
00:52:14,600 --> 00:52:18,200
Speaker 3: as of a point, So that's also another way that

1005
00:52:18,360 --> 00:52:21,640
Speaker 3: you can bring down your interest rate. But ultimately the

1006
00:52:21,680 --> 00:52:25,600
Speaker 3: way to lock in the lowest rates possible is to

1007
00:52:25,760 --> 00:52:29,640
Speaker 3: have the highest possible credit score that you can have,

1008
00:52:29,800 --> 00:52:32,920
Speaker 3: especially in today's market, where you know, even if you

1009
00:52:32,920 --> 00:52:35,439
Speaker 3: have a seven hundred credit score, you might not still

1010
00:52:35,480 --> 00:52:37,440
Speaker 3: get the lowest rate, whereas a year ago that still

1011
00:52:37,480 --> 00:52:39,719
Speaker 3: would give you a great rate at seven hundred and

1012
00:52:39,840 --> 00:52:40,480
Speaker 3: seven to twenty.

1013
00:52:40,880 --> 00:52:42,319
Speaker 4: No, you really have to be in that.

1014
00:52:42,400 --> 00:52:45,239
Speaker 3: If you're going conventional, you really have to be seven

1015
00:52:45,360 --> 00:52:48,759
Speaker 3: forty seven sixty and higher right now to really get

1016
00:52:48,800 --> 00:52:52,920
Speaker 3: that whatever that national rate that people see online with

1017
00:52:53,040 --> 00:52:55,520
Speaker 3: no points, you really have to be in that higher

1018
00:52:56,200 --> 00:52:59,400
Speaker 3: upper echelon of credit when you're talking conventional now, FHA,

1019
00:53:00,440 --> 00:53:02,759
Speaker 3: you can have a six eighty seven hundred credit store

1020
00:53:02,760 --> 00:53:05,800
Speaker 3: and still get a great rate with those scores.

1021
00:53:05,880 --> 00:53:09,920
Speaker 7: So in that first scenario going from that's that example

1022
00:53:10,000 --> 00:53:12,600
Speaker 7: three point five to five point five, after it gets

1023
00:53:12,680 --> 00:53:14,520
Speaker 7: let's say after that third year, is it capped at

1024
00:53:14,520 --> 00:53:15,319
Speaker 7: the five point five?

1025
00:53:15,400 --> 00:53:15,760
Speaker 4: Correct?

1026
00:53:15,760 --> 00:53:17,960
Speaker 3: It's capped right, So it's not an adjustable rate. Correct,

1027
00:53:17,960 --> 00:53:20,279
Speaker 3: it's not adjustable rate. It's a thirty it's a thirty

1028
00:53:20,320 --> 00:53:23,399
Speaker 3: year fixed mortgage. But speaking of adjustable rates, that's another way.

1029
00:53:23,600 --> 00:53:25,960
Speaker 3: But adjustble rates, you got to really look at the

1030
00:53:25,960 --> 00:53:29,279
Speaker 3: math and see does it make sense for me to

1031
00:53:29,320 --> 00:53:33,120
Speaker 3: take this adjustable rate because the a five year so

1032
00:53:33,160 --> 00:53:36,040
Speaker 3: adjustment rates are typically fixed for five years, seven years,

1033
00:53:36,080 --> 00:53:39,279
Speaker 3: or ten years, and then after that it adjusts for

1034
00:53:39,320 --> 00:53:41,839
Speaker 3: the life of the loan. Depending on where the market is,

1035
00:53:41,880 --> 00:53:45,160
Speaker 3: the rate can go up and go down. So folks

1036
00:53:45,200 --> 00:53:49,399
Speaker 3: who had adjustable rates prior to the pandemic, they won

1037
00:53:49,880 --> 00:53:53,080
Speaker 3: because they rates. If there was an adjustment phase, they

1038
00:53:53,160 --> 00:53:57,120
Speaker 3: rates drop down, so they didn't really necessarily have to

1039
00:53:57,200 --> 00:53:59,880
Speaker 3: refinance and pay closing costs and things like that because

1040
00:54:00,360 --> 00:54:03,319
Speaker 3: the market was in a favor. Now on the flip.

1041
00:54:03,040 --> 00:54:06,040
Speaker 4: Side, huh, big difference.

1042
00:54:06,080 --> 00:54:08,560
Speaker 3: So they I advise all my clients and people who

1043
00:54:08,600 --> 00:54:11,560
Speaker 3: I was speaking to who had adjustables, you might as

1044
00:54:11,560 --> 00:54:15,160
Speaker 3: well get out of it because the ten, fifteen, twenty,

1045
00:54:15,200 --> 00:54:17,840
Speaker 3: and thirties the cheapest has ever been, so it doesn't

1046
00:54:17,880 --> 00:54:19,920
Speaker 3: make sense to play the risk. But in this market,

1047
00:54:20,120 --> 00:54:24,120
Speaker 3: adjustable rates make sense. For someone who is not looking

1048
00:54:24,280 --> 00:54:26,279
Speaker 3: and they know that not going to stand at home

1049
00:54:26,360 --> 00:54:28,319
Speaker 3: for the long term. This is not a thirty year

1050
00:54:28,360 --> 00:54:30,719
Speaker 3: play for them. This is a five year place. So

1051
00:54:30,760 --> 00:54:32,000
Speaker 3: if you know, I'm gonna be in this house for

1052
00:54:32,040 --> 00:54:35,160
Speaker 3: five years, and I'm just using this as my starter home.

1053
00:54:35,520 --> 00:54:38,279
Speaker 3: I wouldn't recommend getting a five year ARM I would

1054
00:54:38,320 --> 00:54:40,760
Speaker 3: probably say do a seven or ten, because life happens

1055
00:54:41,120 --> 00:54:43,360
Speaker 3: and you never know. And if you see an opportunity

1056
00:54:43,440 --> 00:54:45,319
Speaker 3: to refinance over the next couple of years and you

1057
00:54:45,400 --> 00:54:48,160
Speaker 3: still own that house, take advantage of the refinance opportunity

1058
00:54:48,160 --> 00:54:51,759
Speaker 3: as well. So adjustable rate mortgagees can work if it

1059
00:54:51,800 --> 00:54:54,080
Speaker 3: makes sense, but in most cases, from what I'm seeing,

1060
00:54:54,360 --> 00:54:56,080
Speaker 3: sometimes it just doesn't make sense.

1061
00:54:57,040 --> 00:55:00,480
Speaker 6: So let's talk about hedge funds buying single family homes.

1062
00:55:01,000 --> 00:55:02,520
Speaker 4: What's the deal with that business.

1063
00:55:03,280 --> 00:55:06,319
Speaker 3: Look, I know there's a lot of chat on the

1064
00:55:06,360 --> 00:55:09,759
Speaker 3: internet about the housing market, and a lot of folks

1065
00:55:09,800 --> 00:55:12,920
Speaker 3: will tell you, don't buy a house right now, don't

1066
00:55:12,960 --> 00:55:15,960
Speaker 3: do this right now. I tend to follow the money.

1067
00:55:16,560 --> 00:55:19,359
Speaker 3: What is the money doing. The money is the institutional

1068
00:55:19,360 --> 00:55:23,160
Speaker 3: investors and what they're doing right now, they're buying houses

1069
00:55:23,840 --> 00:55:26,480
Speaker 3: in the forms of billions and billions and billions of dollars.

1070
00:55:27,040 --> 00:55:29,000
Speaker 3: So for me, the light bulb goes over my head

1071
00:55:29,040 --> 00:55:31,799
Speaker 3: and say, hmm, what do they know that we don't know?

1072
00:55:32,840 --> 00:55:36,200
Speaker 3: These people are smart as hell. They're not stupid. And

1073
00:55:36,239 --> 00:55:39,160
Speaker 3: if they're buying homes, then why are we sitting on

1074
00:55:39,200 --> 00:55:42,520
Speaker 3: the sidelines? Well, not us, but why are some of

1075
00:55:42,719 --> 00:55:46,719
Speaker 3: our audience sitting on the sidelines and waiting for a

1076
00:55:46,800 --> 00:55:50,120
Speaker 3: quote unquote crash or anything like that to happen to

1077
00:55:50,239 --> 00:55:52,440
Speaker 3: get themselves in the game. If you look at the

1078
00:55:52,520 --> 00:55:56,520
Speaker 3: institutional money out there, they're buying all of Georgia right

1079
00:55:56,560 --> 00:56:00,400
Speaker 3: now for the most part. You know, you got Jeff

1080
00:56:00,400 --> 00:56:04,160
Speaker 3: Bezos and his back companies that are buying real estate.

1081
00:56:04,320 --> 00:56:07,760
Speaker 3: JP Morgan, Chase, his partner with another hedge fund. They're

1082
00:56:07,760 --> 00:56:10,680
Speaker 3: buying billion dollars worth of real estate right All of

1083
00:56:10,719 --> 00:56:15,320
Speaker 3: these companies, all these institutional investors are putting their money

1084
00:56:15,440 --> 00:56:18,400
Speaker 3: into the safe haven of real estate for a reason

1085
00:56:18,480 --> 00:56:22,359
Speaker 3: and the purpose because real estate is going nowhere. Right,

1086
00:56:22,680 --> 00:56:25,880
Speaker 3: Crypto was up to sixty plus thousand dollars, now.

1087
00:56:25,760 --> 00:56:29,200
Speaker 4: What is it at? Stocks was up? Where? And where

1088
00:56:29,280 --> 00:56:29,360
Speaker 4: is that?

1089
00:56:30,680 --> 00:56:33,600
Speaker 3: If the housing market does crash, I can still go

1090
00:56:33,680 --> 00:56:36,480
Speaker 3: touch my house. The tenant still has to pay me.

1091
00:56:36,920 --> 00:56:39,560
Speaker 3: I'm still going to get the same cash flow because

1092
00:56:40,160 --> 00:56:43,879
Speaker 3: with inflation rising, even though it's coming down a little bit,

1093
00:56:44,160 --> 00:56:46,480
Speaker 3: people still have to pay the rent and If you

1094
00:56:46,560 --> 00:56:49,000
Speaker 3: buy right, there's always going to be cash flow coming

1095
00:56:49,040 --> 00:56:51,719
Speaker 3: in no matter what the market is doing. So real

1096
00:56:51,840 --> 00:56:55,440
Speaker 3: estate is it will be probably one always one of

1097
00:56:55,480 --> 00:56:58,840
Speaker 3: the greatest investment tools out there, especially because of the

1098
00:56:58,920 --> 00:57:01,400
Speaker 3: tax benefits that come with it. And you have to

1099
00:57:01,480 --> 00:57:05,120
Speaker 3: understand the tax play behind buying that much real estate

1100
00:57:05,160 --> 00:57:08,520
Speaker 3: as well. So these people are rich and wealthy and

1101
00:57:08,600 --> 00:57:11,200
Speaker 3: they're trying to hedge their taxes and minimize it too.

1102
00:57:11,280 --> 00:57:14,360
Speaker 3: So what's the best player real estate? Brick and mortar

1103
00:57:14,760 --> 00:57:18,400
Speaker 3: because of things like depreciation, cost segregation, there's a lot

1104
00:57:18,400 --> 00:57:22,200
Speaker 3: of different things that you can do to offset your wins.

1105
00:57:22,240 --> 00:57:24,600
Speaker 3: If you got huge capital gains, you can put that

1106
00:57:24,640 --> 00:57:27,480
Speaker 3: in ten thirty one changes, buy real estate, so you

1107
00:57:27,600 --> 00:57:31,400
Speaker 3: defering your taxes down the road. Right real estate gives

1108
00:57:31,400 --> 00:57:35,720
Speaker 3: you all these plays that the wealthy use at scale

1109
00:57:36,320 --> 00:57:40,040
Speaker 3: to continue to grow their wealth. Whereas with us in

1110
00:57:40,120 --> 00:57:43,240
Speaker 3: our community, we like to listen to everybody else, but

1111
00:57:43,320 --> 00:57:47,120
Speaker 3: instead of following the money. So the institution of vestas

1112
00:57:47,160 --> 00:57:50,800
Speaker 3: are going to continue to buy real estate and also

1113
00:57:51,960 --> 00:57:53,160
Speaker 3: playing devil's advocate.

1114
00:57:53,560 --> 00:57:54,560
Speaker 4: Why is that tool?

1115
00:57:54,760 --> 00:57:57,640
Speaker 3: Besides everything I mentioned, is to keep the middle class

1116
00:57:57,640 --> 00:58:03,680
Speaker 3: middle classing right to make America ten period, like the

1117
00:58:03,720 --> 00:58:07,320
Speaker 3: middle class areas. They don't want you to own homes.

1118
00:58:07,320 --> 00:58:09,000
Speaker 3: They don't want you to be wealthy, they don't want

1119
00:58:09,000 --> 00:58:10,439
Speaker 3: you to be rich, they don't want you to build

1120
00:58:10,440 --> 00:58:15,120
Speaker 3: your wealth. So they're buying all these properties in my opinion,

1121
00:58:16,040 --> 00:58:17,800
Speaker 3: to keep the middle class at the middle class.

1122
00:58:17,840 --> 00:58:20,120
Speaker 6: So but like a lot of investors, like Julian Gordon,

1123
00:58:20,160 --> 00:58:22,480
Speaker 6: they like, it doesn't make sense to invest in multi

1124
00:58:22,800 --> 00:58:25,920
Speaker 6: in a single family, invest in multi family homes. So

1125
00:58:26,120 --> 00:58:29,240
Speaker 6: this is contrary to that because this is billion dollar entities.

1126
00:58:29,560 --> 00:58:31,520
Speaker 6: They're not buying well, they're buying multi people, but they're

1127
00:58:31,520 --> 00:58:32,800
Speaker 6: buying single family homes.

1128
00:58:33,120 --> 00:58:35,520
Speaker 3: Yeah, because single family is so you know, shout out

1129
00:58:35,560 --> 00:58:38,560
Speaker 3: to Julia first and foremost in the multi family movement.

1130
00:58:39,080 --> 00:58:43,360
Speaker 3: But I understand his logic is if it's a single family,

1131
00:58:44,040 --> 00:58:46,120
Speaker 3: it's one income coming in and if they don't pay,

1132
00:58:46,600 --> 00:58:48,200
Speaker 3: then somebody has to pay that debt.

1133
00:58:48,200 --> 00:58:48,800
Speaker 4: Whereas it's a.

1134
00:58:48,800 --> 00:58:51,760
Speaker 3: Multi family, you have multiple rents coming in, so if

1135
00:58:51,800 --> 00:58:54,080
Speaker 3: one person doesn't pay, you have four units. You still

1136
00:58:54,080 --> 00:58:56,680
Speaker 3: got three rents coming in that can cover, right. So

1137
00:58:56,720 --> 00:58:59,560
Speaker 3: I understand that logic, but the reality of it is

1138
00:59:00,600 --> 00:59:03,680
Speaker 3: people live in single family rent who's longer than multi families.

1139
00:59:04,240 --> 00:59:07,440
Speaker 3: Multi family apartments are smaller than somebody want to live

1140
00:59:07,440 --> 00:59:10,000
Speaker 3: in house. So if you have children, you don't want

1141
00:59:10,040 --> 00:59:12,760
Speaker 3: to live in the hood where most multi families at.

1142
00:59:14,760 --> 00:59:17,920
Speaker 3: And now New York is different, right because you can

1143
00:59:17,920 --> 00:59:21,680
Speaker 3: go to Brooklyn and be in Park Slow and it's

1144
00:59:21,720 --> 00:59:25,520
Speaker 3: five million dollar multifamilies there, right. So New York is

1145
00:59:25,600 --> 00:59:28,520
Speaker 3: just a different peace in the self. So I can't

1146
00:59:28,560 --> 00:59:30,880
Speaker 3: compare New York to the rest of the country. But

1147
00:59:30,920 --> 00:59:32,960
Speaker 3: if we all travel around the country, and where you

1148
00:59:32,960 --> 00:59:35,560
Speaker 3: see multi families at. You don't see them in the suburbs.

1149
00:59:35,720 --> 00:59:37,960
Speaker 3: You don't see them in the good school districts, you

1150
00:59:38,000 --> 00:59:41,040
Speaker 3: don't see them in where there's good stores and amenities

1151
00:59:41,080 --> 00:59:43,760
Speaker 3: and things of that nature in the area. So most

1152
00:59:43,840 --> 00:59:48,160
Speaker 3: folks who have children, especially young children, that want school districts,

1153
00:59:48,320 --> 00:59:50,000
Speaker 3: they want to live in a single family home.

1154
00:59:50,080 --> 00:59:51,760
Speaker 4: They want backyard and bar mitzvahs.

1155
00:59:52,040 --> 00:59:54,960
Speaker 3: They probably just can't afford to buy right now, but

1156
00:59:54,960 --> 00:59:56,240
Speaker 3: they still want to live good.

1157
00:59:56,720 --> 00:59:56,959
Speaker 4: Right.

1158
00:59:57,120 --> 01:00:02,080
Speaker 3: So America's institutional vess understand that this is why they're

1159
01:00:02,080 --> 01:00:06,280
Speaker 3: doing more build to rent properties where they would build

1160
01:00:06,320 --> 01:00:09,800
Speaker 3: these communities for single families, and traditionally they would sell

1161
01:00:09,880 --> 01:00:14,040
Speaker 3: those and flip them now with rent at all time

1162
01:00:14,120 --> 01:00:18,560
Speaker 3: high style one bedroom apartment is on average nationally two

1163
01:00:18,600 --> 01:00:21,640
Speaker 3: thousand dollars. A one bedroom apartment in New York right

1164
01:00:21,680 --> 01:00:25,240
Speaker 3: now average is six thousand dollars. Right, look at what's

1165
01:00:25,240 --> 01:00:28,600
Speaker 3: happened in New York. The empty office spaces are now

1166
01:00:28,640 --> 01:00:29,520
Speaker 3: being converted to what.

1167
01:00:31,040 --> 01:00:32,400
Speaker 4: Apartments. Right.

1168
01:00:32,840 --> 01:00:37,720
Speaker 3: So, investors, especially institutional investors, are always going to find

1169
01:00:37,720 --> 01:00:40,280
Speaker 3: a way to make money. So it's no right or

1170
01:00:40,360 --> 01:00:43,560
Speaker 3: wrong way. Whether single family or multi family, to me,

1171
01:00:43,720 --> 01:00:47,160
Speaker 3: is no debate. Right if you are there some areas

1172
01:00:47,160 --> 01:00:49,160
Speaker 3: where it might be better to buy a single family

1173
01:00:49,160 --> 01:00:51,720
Speaker 3: and rentals. I know a lot of investors that swear

1174
01:00:51,840 --> 01:00:55,080
Speaker 3: up and down about single family rentals and won't touch

1175
01:00:55,480 --> 01:00:57,880
Speaker 3: a multi family and vice versa, like the Julian Gordons

1176
01:00:57,880 --> 01:00:59,600
Speaker 3: of the world. They won't touch a single family. They

1177
01:00:59,600 --> 01:01:02,160
Speaker 3: want more family. So I think it's really about picking

1178
01:01:02,160 --> 01:01:06,320
Speaker 3: your poison and doing what works for you, not kind

1179
01:01:06,320 --> 01:01:10,240
Speaker 3: of following suit with everyone else and understanding your numbers

1180
01:01:10,280 --> 01:01:12,360
Speaker 3: and what your ROI needs to be and they kind

1181
01:01:12,360 --> 01:01:13,160
Speaker 3: of moving on from there.

1182
01:01:13,320 --> 01:01:15,600
Speaker 7: Do you think that's where, because I'm seeing a lot

1183
01:01:15,600 --> 01:01:20,000
Speaker 7: of commercial real estate being vacant, you think that is

1184
01:01:20,160 --> 01:01:22,800
Speaker 7: the way we're headed with this, those commercial real estate

1185
01:01:22,840 --> 01:01:25,920
Speaker 7: spaces will now become rental properties inside.

1186
01:01:26,480 --> 01:01:28,840
Speaker 4: It would be like a conversion. Oh absolutely.

1187
01:01:28,880 --> 01:01:30,440
Speaker 3: I mean when we was at lunch with down People's

1188
01:01:30,440 --> 01:01:33,800
Speaker 3: we was having that conversation too, where conversions. There's billions

1189
01:01:33,800 --> 01:01:36,160
Speaker 3: of dollars just in New York City right now that's

1190
01:01:36,240 --> 01:01:40,240
Speaker 3: being flooded into the market in these office retail spaces

1191
01:01:40,480 --> 01:01:43,000
Speaker 3: that are now because look look what happened during the pandemic,

1192
01:01:44,080 --> 01:01:48,160
Speaker 3: companies people got to work from home. Why do I

1193
01:01:48,240 --> 01:01:51,560
Speaker 3: need to pay one hundred thousand dollars a month with

1194
01:01:51,720 --> 01:01:55,440
Speaker 3: that space? So what are the land and those are

1195
01:01:55,480 --> 01:01:59,080
Speaker 3: rentals right, they're leasing. They're not owning these skyscrapers in

1196
01:01:59,120 --> 01:02:04,800
Speaker 3: these buildings. So they rather pay the penalties to get out,

1197
01:02:05,120 --> 01:02:07,520
Speaker 3: then they can deduct it anyway off they taxes.

1198
01:02:07,560 --> 01:02:08,360
Speaker 4: So it's a whole place.

1199
01:02:08,360 --> 01:02:10,680
Speaker 3: So it really doesn't If they are a profitable company

1200
01:02:10,680 --> 01:02:12,720
Speaker 3: and they got a lot of money, it's not going

1201
01:02:12,720 --> 01:02:14,160
Speaker 3: to hurt them to get out their least. But from

1202
01:02:14,200 --> 01:02:17,440
Speaker 3: the landlord perspective, it's going to hurt me now because

1203
01:02:17,600 --> 01:02:20,120
Speaker 3: maybe I got the penalties and all this upfront money,

1204
01:02:20,360 --> 01:02:23,160
Speaker 3: but now I still got a vacant property. So why

1205
01:02:23,280 --> 01:02:26,320
Speaker 3: not convert it? Because there's a housing crisis. I think

1206
01:02:26,360 --> 01:02:30,160
Speaker 3: America needs about seven million homes right now to kind

1207
01:02:30,200 --> 01:02:34,280
Speaker 3: of balance out the housing market. So why not where

1208
01:02:34,320 --> 01:02:37,160
Speaker 3: you have all these cities and people now want the amenities,

1209
01:02:37,160 --> 01:02:41,560
Speaker 3: they want downtown living, they want the New York City flair,

1210
01:02:41,720 --> 01:02:44,120
Speaker 3: so to speak, in smaller towns and things of that nature,

1211
01:02:44,360 --> 01:02:47,680
Speaker 3: So why not create loss? Why not can create one bedrooms,

1212
01:02:47,680 --> 01:02:50,600
Speaker 3: two bedrooms in a downtown area because now that's going

1213
01:02:50,680 --> 01:02:55,560
Speaker 3: to command what more rent, So you'll find people that

1214
01:02:55,680 --> 01:03:00,600
Speaker 3: will live in these as an apartment versus businesses that

1215
01:03:00,640 --> 01:03:03,800
Speaker 3: probably can't afford to rent them. So it's a play

1216
01:03:03,840 --> 01:03:07,720
Speaker 3: that's going on, and there's billions of dollars that are

1217
01:03:07,840 --> 01:03:15,560
Speaker 3: being dumped into converting office spaces into apartment So.

1218
01:03:15,720 --> 01:03:17,280
Speaker 6: How do you get licensed to become a real to

1219
01:03:17,440 --> 01:03:18,160
Speaker 6: a loan officer?

1220
01:03:18,640 --> 01:03:21,840
Speaker 3: Good question, and I don't think we ever spoke about that.

1221
01:03:22,800 --> 01:03:25,880
Speaker 3: So to get a real estate license, I think it's

1222
01:03:26,400 --> 01:03:29,640
Speaker 3: it's cheap. It's a couple hundred dollars, right, a couple

1223
01:03:29,720 --> 01:03:32,720
Speaker 3: hundred dollars investment. You need to take a seventy five

1224
01:03:32,760 --> 01:03:36,960
Speaker 3: hour course, be over eighteen years old.

1225
01:03:36,840 --> 01:03:40,200
Speaker 4: Pass a background check, past the class.

1226
01:03:40,760 --> 01:03:43,320
Speaker 3: Once you pass the class, then you have to submit

1227
01:03:43,320 --> 01:03:45,120
Speaker 3: for your license and for the state that you're in,

1228
01:03:45,720 --> 01:03:49,320
Speaker 3: and then once you get approved, you have to get

1229
01:03:49,360 --> 01:03:54,320
Speaker 3: sponsored by real estate brokerage and then once you get sponsored,

1230
01:03:54,600 --> 01:03:57,800
Speaker 3: they issue your license. And then today I'm a real

1231
01:03:57,840 --> 01:03:59,919
Speaker 3: to So you really can become a real estate agent

1232
01:04:00,080 --> 01:04:04,120
Speaker 3: thirty days forty five days is depending on where you're located,

1233
01:04:04,280 --> 01:04:06,480
Speaker 3: and it's only going to cost you a couple hundred

1234
01:04:06,480 --> 01:04:10,840
Speaker 3: dollars to do, so it's not an expensive investment. Now

1235
01:04:10,920 --> 01:04:13,160
Speaker 3: on the flip side, just because your licensed real estate

1236
01:04:13,200 --> 01:04:15,640
Speaker 3: agent doesn't mean you're gonna make no money. The average

1237
01:04:15,640 --> 01:04:18,200
Speaker 3: real estate agent probably does one deal a year, if

1238
01:04:18,240 --> 01:04:22,760
Speaker 3: that right. So twenty percent of the people and to

1239
01:04:22,840 --> 01:04:25,000
Speaker 3: have a real estate license are doing eighty percent of

1240
01:04:25,000 --> 01:04:28,160
Speaker 3: the business. And it's like any sales profession. I'm pretty

1241
01:04:28,160 --> 01:04:30,160
Speaker 3: sure when you as financial planning, the numbers were pretty

1242
01:04:30,200 --> 01:04:30,800
Speaker 3: much the same.

1243
01:04:31,040 --> 01:04:33,160
Speaker 4: Even on the loan office socide. It's the same thing.

1244
01:04:33,560 --> 01:04:35,919
Speaker 3: So just because you got a license, it doesn't give

1245
01:04:35,960 --> 01:04:38,640
Speaker 3: you a license to print money. You have to go

1246
01:04:38,720 --> 01:04:41,760
Speaker 3: out there and you have to network and you have

1247
01:04:41,880 --> 01:04:44,440
Speaker 3: to really roll up your sleeves to get some business.

1248
01:04:44,440 --> 01:04:46,280
Speaker 3: Because it's not easy at all. I think in New

1249
01:04:46,360 --> 01:04:49,160
Speaker 3: York Co loan is over thirty thousand real estate active

1250
01:04:49,160 --> 01:04:52,480
Speaker 3: real estate licenses. Thirty thousand people are not closing deals.

1251
01:04:52,920 --> 01:04:58,520
Speaker 3: You know, it's not happening, so, but it is. I

1252
01:04:58,640 --> 01:05:01,840
Speaker 3: believe that if you are looking to get into real estate,

1253
01:05:01,920 --> 01:05:04,280
Speaker 3: and if you don't have the capital to get into

1254
01:05:04,320 --> 01:05:06,200
Speaker 3: real estate, go get licensed.

1255
01:05:06,240 --> 01:05:07,200
Speaker 4: It's not going to hurt you.

1256
01:05:07,280 --> 01:05:10,200
Speaker 3: Because everybody knows somebody who needs to rent an apartment

1257
01:05:10,600 --> 01:05:11,480
Speaker 3: or do something like that.

1258
01:05:11,520 --> 01:05:11,800
Speaker 4: You can.

1259
01:05:11,840 --> 01:05:14,840
Speaker 3: It's so many different streams of income when you become

1260
01:05:14,840 --> 01:05:17,560
Speaker 3: a licensed realtor. You can rent apartments, you can sell homes.

1261
01:05:17,560 --> 01:05:19,800
Speaker 3: You can represent sellers, you can represent buyers, you can

1262
01:05:19,840 --> 01:05:23,680
Speaker 3: represent investors, developers. You can property manage right. You can

1263
01:05:23,720 --> 01:05:27,800
Speaker 3: do bpo's broken price opinions, which is basically appraisers right

1264
01:05:27,880 --> 01:05:30,840
Speaker 3: on behalf of the banks. You can do short sale negotiations.

1265
01:05:30,840 --> 01:05:32,800
Speaker 3: You can whole sale because in some states now they

1266
01:05:32,880 --> 01:05:35,480
Speaker 3: requiring you to have a real estate license to even

1267
01:05:35,520 --> 01:05:36,520
Speaker 3: whole sale properties.

1268
01:05:36,600 --> 01:05:36,760
Speaker 4: Right.

1269
01:05:37,000 --> 01:05:41,000
Speaker 3: So there's many different avenues of making money when you

1270
01:05:41,040 --> 01:05:43,160
Speaker 3: have your real estate license. You just got to figure

1271
01:05:43,200 --> 01:05:45,200
Speaker 3: out what's going to be your play and kind of

1272
01:05:45,200 --> 01:05:48,720
Speaker 3: stick to it. Now also to get your mL license,

1273
01:05:48,800 --> 01:05:51,640
Speaker 3: to get become a licensed loan officer, I believe you

1274
01:05:51,680 --> 01:05:52,920
Speaker 3: got to take like a twenty.

1275
01:05:52,600 --> 01:05:53,360
Speaker 4: Five hour.

1276
01:05:55,960 --> 01:05:58,440
Speaker 3: Class and tests, and then when you pass that, you

1277
01:05:58,520 --> 01:06:01,480
Speaker 3: got to take a federal exam. You pass the federal

1278
01:06:01,520 --> 01:06:06,360
Speaker 3: exam again, it's a couple hundred dollars for a couple

1279
01:06:06,400 --> 01:06:09,200
Speaker 3: hundred dollars investment to get licensed. Once you pass the

1280
01:06:09,200 --> 01:06:13,160
Speaker 3: federal exam, then you submit to the state, you submit

1281
01:06:13,200 --> 01:06:15,880
Speaker 3: to NMLS. You gotta do your fingerprints, your background check.

1282
01:06:15,920 --> 01:06:18,200
Speaker 3: It's a little bit more intense on my side because

1283
01:06:18,240 --> 01:06:20,680
Speaker 3: of the wild cowboy days and the market crash, so

1284
01:06:20,720 --> 01:06:23,240
Speaker 3: they kind of overregulated us. They blamed us for everything,

1285
01:06:23,800 --> 01:06:27,360
Speaker 3: so we got overregulated a little bit. So now once

1286
01:06:27,400 --> 01:06:30,160
Speaker 3: you get your passed and then you have to get

1287
01:06:30,200 --> 01:06:32,680
Speaker 3: sponsored by a mortgage company, but the same rules apply.

1288
01:06:32,720 --> 01:06:34,600
Speaker 3: It doesn't mean you're going to make money, but both

1289
01:06:34,640 --> 01:06:38,760
Speaker 3: careers could be six figure careers. Seven figure careers if

1290
01:06:38,800 --> 01:06:41,040
Speaker 3: you really hit a lick and you really get a

1291
01:06:41,120 --> 01:06:44,200
Speaker 3: good referral sources and you're out there putting in.

1292
01:06:44,200 --> 01:06:47,280
Speaker 6: Your way and just a source of way to get information.

1293
01:06:47,680 --> 01:06:52,720
Speaker 3: Most importantly right information and resources. Right now, you have

1294
01:06:52,760 --> 01:06:55,320
Speaker 3: a real estate license Now you got access to the MLS,

1295
01:06:55,320 --> 01:06:58,200
Speaker 3: the Multiple Listening service. Now you see all the homes

1296
01:06:58,440 --> 01:07:00,720
Speaker 3: that are being listed, you see who listen to homes.

1297
01:07:00,760 --> 01:07:02,600
Speaker 3: You get access to the public records. You get to

1298
01:07:02,680 --> 01:07:06,080
Speaker 3: learn how to navigate the systems. You get to learn

1299
01:07:06,160 --> 01:07:08,520
Speaker 3: how to look for comparable sales.

1300
01:07:08,920 --> 01:07:09,160
Speaker 4: Right.

1301
01:07:09,360 --> 01:07:11,880
Speaker 3: So there's a lot of knowledge that comes with this.

1302
01:07:12,000 --> 01:07:14,160
Speaker 3: And if you get with the right brokerage, the right

1303
01:07:14,520 --> 01:07:17,160
Speaker 3: real estate brokerage will always offer training. They will always

1304
01:07:17,200 --> 01:07:20,640
Speaker 3: have mortgage professionals in their offices like me, training you

1305
01:07:20,720 --> 01:07:23,240
Speaker 3: on long products. They'll have title companies in your office.

1306
01:07:23,480 --> 01:07:26,360
Speaker 3: You'll learn so much. So it's a great way to

1307
01:07:26,400 --> 01:07:29,000
Speaker 3: get started if you want to be a real estate

1308
01:07:29,040 --> 01:07:32,440
Speaker 3: investor is to start off by getting your license, earning

1309
01:07:32,520 --> 01:07:34,480
Speaker 3: some money. Now you take your commissions, and now you

1310
01:07:34,520 --> 01:07:37,520
Speaker 3: start buying properties because now you start learning all the

1311
01:07:37,560 --> 01:07:41,200
Speaker 3: players are, especially the local players in your area. And

1312
01:07:41,200 --> 01:07:43,200
Speaker 3: now you can build a referral worker. I know people

1313
01:07:43,200 --> 01:07:45,000
Speaker 3: who got their real estate license and don't sell the

1314
01:07:45,000 --> 01:07:48,160
Speaker 3: house at all. They just a referral network. They'll refer

1315
01:07:48,560 --> 01:07:52,120
Speaker 3: to agents all over the country and they'll just get

1316
01:07:52,160 --> 01:07:54,000
Speaker 3: all the leads and they'll make thirty.

1317
01:07:53,720 --> 01:07:55,080
Speaker 4: Three percent of that transaction.

1318
01:07:55,720 --> 01:07:59,400
Speaker 3: Right, so that's also another play too, right, So there's

1319
01:07:59,440 --> 01:08:00,920
Speaker 3: a lot that you can do.

1320
01:08:01,320 --> 01:08:03,600
Speaker 4: With you have your real estate license face.

1321
01:08:03,640 --> 01:08:07,280
Speaker 7: Benji, I'm looking at you, man, and I remember you

1322
01:08:07,320 --> 01:08:10,040
Speaker 7: know it was Marsha twenty nineteen when you sat down

1323
01:08:10,440 --> 01:08:11,560
Speaker 7: in the dining room.

1324
01:08:11,880 --> 01:08:16,040
Speaker 8: And what I've seen, obviously very close up is the

1325
01:08:16,080 --> 01:08:20,120
Speaker 8: growth obviously you in the real estate world, obviously in

1326
01:08:20,200 --> 01:08:22,480
Speaker 8: the social media world as well.

1327
01:08:22,640 --> 01:08:25,240
Speaker 7: And I've listened to you over and over and every

1328
01:08:25,280 --> 01:08:27,040
Speaker 7: time I hear you, I feel like you're being more

1329
01:08:26,840 --> 01:08:29,240
Speaker 7: You're more educated than the last time. Right, So it

1330
01:08:29,240 --> 01:08:31,760
Speaker 7: feels like you're staying on top of the game. But

1331
01:08:31,840 --> 01:08:33,960
Speaker 7: I wonder, now, as you look at it from where

1332
01:08:33,960 --> 01:08:37,439
Speaker 7: you stand, what's a missing like, what's a missing link

1333
01:08:37,880 --> 01:08:41,719
Speaker 7: inside of real estate that nobody has tried to solve

1334
01:08:42,240 --> 01:08:43,000
Speaker 7: or nobody.

1335
01:08:42,760 --> 01:08:46,479
Speaker 3: Has found a solution for just yet what's missing? I

1336
01:08:46,520 --> 01:08:51,800
Speaker 3: think representation matters in our in the real estate world.

1337
01:08:51,840 --> 01:08:56,320
Speaker 3: There's not too many black real estate mortgage broken riches,

1338
01:08:56,439 --> 01:08:59,120
Speaker 3: owners and banks, mortgage banks out there.

1339
01:09:00,080 --> 01:09:00,240
Speaker 4: Now.

1340
01:09:00,240 --> 01:09:04,479
Speaker 3: When you're in cities like Atlanta or Houston where's predominantly black, yes,

1341
01:09:04,640 --> 01:09:09,040
Speaker 3: you'll see more black real estate brokerages, more black mortgage

1342
01:09:09,040 --> 01:09:12,720
Speaker 3: brokerages or mortgage banks. But when you're in the Northeast

1343
01:09:13,280 --> 01:09:17,439
Speaker 3: East Coast, I mean, how many black mortgage company owners

1344
01:09:17,439 --> 01:09:21,120
Speaker 3: do you guys know? I don't, I know, and I'm

1345
01:09:21,200 --> 01:09:23,880
Speaker 3: in this business for twenty years and I probably say

1346
01:09:23,920 --> 01:09:27,000
Speaker 3: I know two or three black people that own a

1347
01:09:27,040 --> 01:09:30,880
Speaker 3: mortgage bank or mortgage brokerage. So for me, what's missing

1348
01:09:31,000 --> 01:09:34,080
Speaker 3: in my career I've been doing this now twenty years

1349
01:09:34,600 --> 01:09:38,799
Speaker 3: is ownership. Most people think I own a mortgage company,

1350
01:09:38,800 --> 01:09:41,360
Speaker 3: but I don't. I just represent my team and I

1351
01:09:41,400 --> 01:09:42,439
Speaker 3: represent my last name.

1352
01:09:42,520 --> 01:09:43,920
Speaker 4: So for me, my.

1353
01:09:44,040 --> 01:09:47,160
Speaker 3: Goals have shifted, especially because of the past couple of

1354
01:09:47,280 --> 01:09:50,840
Speaker 3: years of what we've all been through together as a

1355
01:09:50,920 --> 01:09:54,360
Speaker 3: unit with Euyo University. We're doing events and traveling and

1356
01:09:54,400 --> 01:09:57,200
Speaker 3: now becoming an international speaker. I'm going to definitely use

1357
01:09:57,240 --> 01:09:59,759
Speaker 3: that all the time now, Rashana, thank you as you should.

1358
01:10:00,240 --> 01:10:01,800
Speaker 3: First he said I was the authority of real estate,

1359
01:10:01,840 --> 01:10:05,360
Speaker 3: and I'm like, what Now I believe them and I'm

1360
01:10:05,439 --> 01:10:09,559
Speaker 3: living that. But that's another story, y'all. But ownership for

1361
01:10:09,680 --> 01:10:12,919
Speaker 3: me is what matters. So now I'm in the process

1362
01:10:12,960 --> 01:10:15,760
Speaker 3: of getting my mortgage broker license to open up my

1363
01:10:15,840 --> 01:10:19,840
Speaker 3: own mortgage company, which I would turn that into a

1364
01:10:19,880 --> 01:10:23,320
Speaker 3: mortgage bank and hopefully within the next five years take

1365
01:10:23,360 --> 01:10:27,519
Speaker 3: that mortgage bank public and have a couple billion dollar valuation.

1366
01:10:27,920 --> 01:10:30,679
Speaker 3: So for me, what's missing in my career right now

1367
01:10:30,840 --> 01:10:33,720
Speaker 3: is the representation of ownership. Because it's great to sit

1368
01:10:33,760 --> 01:10:35,880
Speaker 3: out here and do content. It's great out here to

1369
01:10:35,920 --> 01:10:39,280
Speaker 3: teach people and do loans for people, But how do

1370
01:10:39,360 --> 01:10:43,000
Speaker 3: I bring up the next Who's next? Right, who's the

1371
01:10:43,439 --> 01:10:46,080
Speaker 3: twenty year old MG, the mortgage guy who might watch

1372
01:10:46,160 --> 01:10:48,400
Speaker 3: this and they might want to get into the business,

1373
01:10:48,400 --> 01:10:50,439
Speaker 3: but they want to work for someone that looks like them,

1374
01:10:50,439 --> 01:10:53,040
Speaker 3: that talks like them, that understands where they come from.

1375
01:10:53,160 --> 01:10:55,120
Speaker 4: Right, That's where I want to do.

1376
01:10:55,240 --> 01:10:57,400
Speaker 3: So it's easy for me now to hire people and

1377
01:10:57,479 --> 01:11:00,960
Speaker 3: have them a part of my team. Right now, I

1378
01:11:00,960 --> 01:11:02,840
Speaker 3: got to really do this for my last name, how

1379
01:11:02,920 --> 01:11:05,360
Speaker 3: do I really leave the legacy of everything that I

1380
01:11:05,439 --> 01:11:08,839
Speaker 3: work hard for? And that's really what ownership bro So yeah,

1381
01:11:08,880 --> 01:11:12,320
Speaker 3: so Galland Mortgage Group. Hopefully I can get that name

1382
01:11:12,520 --> 01:11:15,400
Speaker 3: approved with the licensing and the FEDS and everything like

1383
01:11:15,439 --> 01:11:19,040
Speaker 3: that coming soon. But that's my next step is ownership

1384
01:11:19,439 --> 01:11:24,080
Speaker 3: and becoming one of the biggest black owned mortgage companies

1385
01:11:24,080 --> 01:11:24,559
Speaker 3: in the world.

1386
01:11:26,160 --> 01:11:28,439
Speaker 6: You have it, ladies and gentlemen. One last thing before

1387
01:11:28,439 --> 01:11:30,200
Speaker 6: you got USDA loans.

1388
01:11:31,479 --> 01:11:36,519
Speaker 3: Us DA loans, those are euro rural loans, right, so,

1389
01:11:37,040 --> 01:11:39,000
Speaker 3: and believe it or not, there's a lot of rural

1390
01:11:39,040 --> 01:11:43,120
Speaker 3: areas in America, right But it's again it's one hundred

1391
01:11:43,160 --> 01:11:45,360
Speaker 3: percent finance and I believe the minimum credits call is

1392
01:11:45,360 --> 01:11:49,559
Speaker 3: six twenty urban areas. Yeah, yeah, there's there's a lot

1393
01:11:49,560 --> 01:11:53,080
Speaker 3: of opportunity to use these loans, and that's it's something

1394
01:11:53,080 --> 01:11:55,240
Speaker 3: that I don't speak about a lot of at all

1395
01:11:55,280 --> 01:11:57,360
Speaker 3: because I don't do too many of these loans. But

1396
01:11:57,439 --> 01:12:01,400
Speaker 3: it's a good program. You can buy ten fifteen agre

1397
01:12:03,439 --> 01:12:06,840
Speaker 3: almost that are sitting on these type of land where

1398
01:12:06,880 --> 01:12:08,799
Speaker 3: you couldn't do that with a conventional mortgage.

1399
01:12:08,840 --> 01:12:10,879
Speaker 4: You can get great low interest rates.

1400
01:12:11,280 --> 01:12:14,280
Speaker 3: There are some of the programs have income restrictions on it,

1401
01:12:14,360 --> 01:12:16,160
Speaker 3: so you kind of have to check and see what

1402
01:12:16,360 --> 01:12:18,599
Speaker 3: if there are income restrictions for the areas that you're

1403
01:12:18,640 --> 01:12:21,920
Speaker 3: looking to buy in. But ultimately it's a great loan

1404
01:12:22,400 --> 01:12:25,400
Speaker 3: for someone who's looking to own a lot of land

1405
01:12:25,479 --> 01:12:28,760
Speaker 3: and you can get one hundred percent finance.

1406
01:12:28,360 --> 01:12:33,760
Speaker 4: And with low low interest rates. Yeah.

1407
01:12:33,760 --> 01:12:35,880
Speaker 3: So it's a great program, but I'm not gonna say

1408
01:12:35,920 --> 01:12:38,160
Speaker 3: I hold you up. I don't fund too many of

1409
01:12:38,200 --> 01:12:42,920
Speaker 3: these loans. I can, you know, do a whole class

1410
01:12:42,960 --> 01:12:45,680
Speaker 3: on this at a later note. But for this purposes,

1411
01:12:45,800 --> 01:12:48,479
Speaker 3: I would just say Google's your best friend and kind

1412
01:12:48,479 --> 01:12:49,559
Speaker 3: of really look into it more.

1413
01:12:49,600 --> 01:12:51,800
Speaker 4: Google's your friend, bro. Google's your best friend. Bro.

1414
01:12:52,000 --> 01:12:54,360
Speaker 6: You have it? So how can people contact you for

1415
01:12:54,479 --> 01:12:58,040
Speaker 6: mortgages or buy your book? And then to talk about

1416
01:12:58,040 --> 01:12:59,840
Speaker 6: the real estate blueprint as well?

1417
01:13:00,360 --> 01:13:04,320
Speaker 3: So apply with MG dot com if you want to

1418
01:13:04,360 --> 01:13:06,840
Speaker 3: do along with me and my team with licensed in

1419
01:13:06,880 --> 01:13:13,800
Speaker 3: twenty one states pretty much from New York to Florida, Cali, Texas, Illinois,

1420
01:13:14,360 --> 01:13:20,600
Speaker 3: Rhode Island, Alabama, Tennessee, Indiana, Chicago, Illinois. I mean, I

1421
01:13:20,640 --> 01:13:23,160
Speaker 3: love Chicago, shoutout with Sean Scott, so we do a

1422
01:13:23,160 --> 01:13:26,479
Speaker 3: lot of deals over there. So apply with MG dot com.

1423
01:13:26,800 --> 01:13:28,640
Speaker 3: You can also go to my Instagram page MG. The

1424
01:13:28,680 --> 01:13:30,560
Speaker 3: Mortgage Guy link is in the bio. Set up a

1425
01:13:30,600 --> 01:13:32,479
Speaker 3: consultation with the team. Where would love to help you,

1426
01:13:32,479 --> 01:13:34,760
Speaker 3: guys achieve your real estate goals, especially if you're learning

1427
01:13:34,800 --> 01:13:35,040
Speaker 3: from me.

1428
01:13:35,280 --> 01:13:36,160
Speaker 4: We'd love to help you.

1429
01:13:36,960 --> 01:13:41,040
Speaker 3: The book House Economics and Real Estate Investors Manifesto. Both

1430
01:13:41,120 --> 01:13:45,000
Speaker 3: are number one best selling books on Amazon terms two times,

1431
01:13:45,240 --> 01:13:47,400
Speaker 3: the third times The chim Dog Got another book coming

1432
01:13:47,400 --> 01:13:49,479
Speaker 3: out soon soon come, and the books. So I'm glad

1433
01:13:49,479 --> 01:13:51,559
Speaker 3: you brought that up a shot because the bookstore is

1434
01:13:51,640 --> 01:13:54,040
Speaker 3: like my baby right now, because I have a lot

1435
01:13:54,040 --> 01:13:57,080
Speaker 3: of information in my head and I want to be able.

1436
01:13:56,880 --> 01:13:57,839
Speaker 4: To provide people.

1437
01:13:57,960 --> 01:14:00,280
Speaker 3: I want to be the number one source for real

1438
01:14:00,400 --> 01:14:03,599
Speaker 3: estate education in the world. So people like to read.

1439
01:14:03,960 --> 01:14:07,439
Speaker 3: Although I'm not a reader per se, I know other

1440
01:14:07,520 --> 01:14:09,760
Speaker 3: people out there love to read books. They love to

1441
01:14:09,800 --> 01:14:11,639
Speaker 3: hold the book in the hand and just read it right.

1442
01:14:11,760 --> 01:14:15,519
Speaker 3: So for me, it wasn't enough just to put out

1443
01:14:15,600 --> 01:14:17,719
Speaker 3: courses and do webinars and do content.

1444
01:14:17,760 --> 01:14:19,759
Speaker 4: It was like, how do I reach more people?

1445
01:14:20,040 --> 01:14:23,360
Speaker 3: And that's where the bookstore and putting out books came

1446
01:14:23,400 --> 01:14:25,880
Speaker 3: into place. So for me, I don't want to. You know,

1447
01:14:25,880 --> 01:14:28,479
Speaker 3: most people that put out books a book every two years,

1448
01:14:28,640 --> 01:14:29,000
Speaker 3: I'm like.

1449
01:14:28,960 --> 01:14:29,400
Speaker 4: Forget that.

1450
01:14:29,479 --> 01:14:31,720
Speaker 3: I can put out a book five times a year

1451
01:14:31,720 --> 01:14:34,040
Speaker 3: if I really wanted to, because the information is always

1452
01:14:34,120 --> 01:14:37,120
Speaker 3: changing and I can always do a house economic second edition,

1453
01:14:37,320 --> 01:14:40,320
Speaker 3: third edition, fourth edition is so forth right as time

1454
01:14:40,360 --> 01:14:43,200
Speaker 3: go on. So the bookstore, you know, go to MG

1455
01:14:43,280 --> 01:14:45,439
Speaker 3: Bookstore dot com and you can pick up some books

1456
01:14:45,680 --> 01:14:48,639
Speaker 3: and then the Home Buys Blueprint Volume one and volume two.

1457
01:14:49,120 --> 01:14:53,479
Speaker 3: Volume three is coming soon. So it's a part of

1458
01:14:53,680 --> 01:14:56,760
Speaker 3: s exclusively part of e y l University. E y

1459
01:14:56,880 --> 01:14:59,879
Speaker 3: L University is the number one online financial literacy platform

1460
01:15:00,080 --> 01:15:04,120
Speaker 3: the world, powered by Recession Proof. We have what twenty

1461
01:15:04,160 --> 01:15:07,040
Speaker 3: seven chapters in there. We have the Home Buys Blueprint

1462
01:15:07,120 --> 01:15:09,839
Speaker 3: Via one, Volume two. I mean we have a whole calendar,

1463
01:15:09,920 --> 01:15:11,920
Speaker 3: man and it's like it seems like it's something going

1464
01:15:11,960 --> 01:15:14,400
Speaker 3: on every single day. We have the book club with

1465
01:15:14,520 --> 01:15:17,280
Speaker 3: Troy and Greg shout out to Greg. We have financial

1466
01:15:17,280 --> 01:15:20,120
Speaker 3: planning calls with Rashad. You have break bread calls with

1467
01:15:20,240 --> 01:15:24,320
Speaker 3: me once a month as well, and you have so

1468
01:15:24,439 --> 01:15:27,000
Speaker 3: many different things that are at ey L University. So

1469
01:15:27,040 --> 01:15:29,200
Speaker 3: I would highly recommend you guys, be a part of

1470
01:15:29,240 --> 01:15:33,120
Speaker 3: eyl University, become an earner and take your financial literacy

1471
01:15:33,120 --> 01:15:35,719
Speaker 3: and your business and your education to the next level.

1472
01:15:36,080 --> 01:15:38,479
Speaker 4: So yeah, go to y l University dot.

1473
01:15:38,320 --> 01:15:41,280
Speaker 3: Com if you want to get the Homeboys Blueprint Via one,

1474
01:15:41,320 --> 01:15:44,320
Speaker 3: Voyume two and potentially volume three coming soon, and everything

1475
01:15:44,360 --> 01:15:47,160
Speaker 3: else that we have to offer in ey L University

1476
01:15:47,560 --> 01:15:49,040
Speaker 3: and what else you ask me what else.

1477
01:15:50,760 --> 01:15:52,679
Speaker 4: I think. I think it just took my part, man,

1478
01:15:54,479 --> 01:15:56,320
Speaker 4: I think you coveted man. I don't think I got

1479
01:15:56,320 --> 01:15:59,880
Speaker 4: my launch anymore. What is it? Twenty seven chapters? What else?

1480
01:16:00,680 --> 01:16:01,840
Speaker 4: I think you ran down everything?

1481
01:16:01,880 --> 01:16:04,760
Speaker 7: Bro, it's a lot. Yeah, chapter to be in person,

1482
01:16:04,840 --> 01:16:07,599
Speaker 7: chapter meetings. There will obviously be some events. So yeah,

1483
01:16:07,680 --> 01:16:08,920
Speaker 7: it's doing improved.

1484
01:16:09,280 --> 01:16:09,479
Speaker 6: Yeah.

1485
01:16:09,760 --> 01:16:11,519
Speaker 4: Like I said, the Biggest just got bigger. So we

1486
01:16:11,600 --> 01:16:11,920
Speaker 4: really the.

1487
01:16:12,040 --> 01:16:15,920
Speaker 3: Biggest Scott bigger? Yeah, the Biggest just got bigger. You know,

1488
01:16:15,960 --> 01:16:20,840
Speaker 3: you guys are on a world tour. Biggas just got

1489
01:16:20,880 --> 01:16:23,479
Speaker 3: bigger and it's only going to get bigger, god willing.

1490
01:16:23,880 --> 01:16:25,479
Speaker 3: And I'm just happy to be a part of the ride.

1491
01:16:25,479 --> 01:16:27,600
Speaker 3: I mean, I remember the first episode, first episode. I

1492
01:16:27,640 --> 01:16:29,960
Speaker 3: was nervous as hell. I called them after the episode, said, Yo,

1493
01:16:30,160 --> 01:16:30,559
Speaker 3: can we.

1494
01:16:30,479 --> 01:16:32,439
Speaker 4: Just not can we not put that out? Can you

1495
01:16:32,479 --> 01:16:34,600
Speaker 4: not put that out? I thought it was trash and

1496
01:16:34,640 --> 01:16:37,000
Speaker 4: it's like, nah, you're good. I said, nah, bro, it's trash, Like,

1497
01:16:37,200 --> 01:16:38,120
Speaker 4: can we not put it out?

1498
01:16:38,160 --> 01:16:40,719
Speaker 3: I was nervous as hell and that thing took off,

1499
01:16:41,120 --> 01:16:43,479
Speaker 3: And I'm happy that you guys ain't listen to me

1500
01:16:44,080 --> 01:16:48,160
Speaker 3: because it changed the trajectory of all of our lives,

1501
01:16:48,520 --> 01:16:52,479
Speaker 3: and I'm very thankful for YouTube Brothers for allowing me

1502
01:16:52,960 --> 01:16:55,400
Speaker 3: to always come back on the show and being a

1503
01:16:55,400 --> 01:16:58,320
Speaker 3: part of the network and having businesses together, and just

1504
01:16:58,400 --> 01:17:01,000
Speaker 3: the friendship and the camaraderie and the the hood and

1505
01:17:01,040 --> 01:17:03,760
Speaker 3: the conversations that we have at individuals and as a

1506
01:17:03,760 --> 01:17:06,160
Speaker 3: group's very important to me. So I want to thank

1507
01:17:06,200 --> 01:17:09,519
Speaker 3: you guys for everything. That this guy calls me like

1508
01:17:09,560 --> 01:17:11,400
Speaker 3: a month ago says, Yo, you're not hitting the mark

1509
01:17:11,479 --> 01:17:14,479
Speaker 3: or something, and I'm like, damn right. So these are

1510
01:17:14,479 --> 01:17:17,160
Speaker 3: the kind of conversations and this is real. Your circle

1511
01:17:17,240 --> 01:17:19,880
Speaker 3: is important. Those are the type of conversations you need.

1512
01:17:19,920 --> 01:17:22,200
Speaker 3: People who are going to be honest with you. That's

1513
01:17:22,240 --> 01:17:24,080
Speaker 3: in your circles. It's not going to give you yes

1514
01:17:24,160 --> 01:17:26,320
Speaker 3: man answers and stuff like that. Even when you're not

1515
01:17:26,439 --> 01:17:29,599
Speaker 3: asking them for their opinion, they'll still call you and

1516
01:17:29,680 --> 01:17:32,960
Speaker 3: give you their honest opinion without trying to get at

1517
01:17:33,000 --> 01:17:35,519
Speaker 3: you in a negative way, because you never know how

1518
01:17:35,560 --> 01:17:38,439
Speaker 3: people receive information too at the same time, so I

1519
01:17:38,520 --> 01:17:40,840
Speaker 3: always appreciate when both of you guys call me on

1520
01:17:40,920 --> 01:17:43,640
Speaker 3: something and say Yo, MG, X Y and Z or

1521
01:17:43,800 --> 01:17:46,360
Speaker 3: x Y and Z like you did, and you know

1522
01:17:46,400 --> 01:17:48,439
Speaker 3: what I'm saying, I'm appreciative of that, and I'm thankful

1523
01:17:48,439 --> 01:17:49,960
Speaker 3: for that. So I always got to give you guys

1524
01:17:49,960 --> 01:17:53,200
Speaker 3: your flowers when I have the opportunity to, especially in

1525
01:17:53,200 --> 01:17:57,240
Speaker 3: the public setting, like earn your LEISUA podcasts or earn

1526
01:17:57,240 --> 01:17:59,200
Speaker 3: your leisure show the biggest show in the world.

1527
01:18:00,160 --> 01:18:04,440
Speaker 4: Love appreciate it. Brother, Eyuniversity dot com.

1528
01:18:05,160 --> 01:18:10,280
Speaker 7: Troy shout at u IL University, I shout everybody on

1529
01:18:10,280 --> 01:18:13,400
Speaker 7: Patreon shot that all our earners that are out there

1530
01:18:13,439 --> 01:18:15,240
Speaker 7: that are just repping the brand. I told you we

1531
01:18:15,280 --> 01:18:17,080
Speaker 7: started this thing out when we just said, yo, just

1532
01:18:17,080 --> 01:18:19,160
Speaker 7: one person to day and that's grown into millions and

1533
01:18:19,200 --> 01:18:21,760
Speaker 7: millions of people. So just a testament to hard work,

1534
01:18:22,120 --> 01:18:26,679
Speaker 7: testament to networking and creating real relationships and real brotherhood.

1535
01:18:26,680 --> 01:18:29,200
Speaker 7: And I hope when you hear Matt speak and you

1536
01:18:29,240 --> 01:18:31,000
Speaker 7: know all those conords that he just said, that's just

1537
01:18:31,120 --> 01:18:32,680
Speaker 7: you know, it goes to show you like you never

1538
01:18:32,720 --> 01:18:34,400
Speaker 7: know who's gonna come into your life at what time,

1539
01:18:34,760 --> 01:18:37,360
Speaker 7: but make the opportunity worthwhile. And I'm glad that we

1540
01:18:37,400 --> 01:18:40,200
Speaker 7: did that with you, my brother, And there's you know

1541
01:18:40,439 --> 01:18:41,880
Speaker 7: a number of people that we've done that with.

1542
01:18:41,920 --> 01:18:43,479
Speaker 4: You know, we try to keep good relationships with.

1543
01:18:43,400 --> 01:18:45,639
Speaker 7: Everybody, because you never know when you're gonna need somebody

1544
01:18:45,760 --> 01:18:47,360
Speaker 7: or when somebody's gonna need you. So shout out to

1545
01:18:47,400 --> 01:18:50,200
Speaker 7: everybody out there that's been supporting us and continue to

1546
01:18:50,240 --> 01:18:50,720
Speaker 7: rock with us.

1547
01:18:51,040 --> 01:18:52,880
Speaker 4: We got a lot of things ahead.

1548
01:18:52,600 --> 01:18:55,200
Speaker 7: That are going to be a major Stay tuned alert, Yeah,

1549
01:18:55,240 --> 01:18:56,719
Speaker 7: stay tuned, learn has now been issues.

1550
01:18:57,520 --> 01:18:59,759
Speaker 6: Thank you guys, rocking once for see you next week. Peace.

1551
01:19:02,479 --> 01:19:07,919
Speaker 5: My graduates from my school being force back, drop drop.

1552
01:19:09,720 --> 01:19:10,800
Speaker 4: Drop draft.

1553
01:19:21,160 --> 01:19:24,840
Speaker 1: An illegal alien from Guatemala charged with raping a child

1554
01:19:24,880 --> 01:19:28,680
Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador

1555
01:19:28,920 --> 01:19:33,040
Speaker 1: accused of murdering a Texas man of Venezuelan charged with

1556
01:19:33,120 --> 01:19:37,000
Speaker 1: filming and selling child pornography in Michigan. These are just

1557
01:19:37,120 --> 01:19:40,879
Speaker 1: some of the heinous migrant criminals caught because of President

1558
01:19:40,920 --> 01:19:44,439
Speaker 1: Donald J. Trump's leadership. I'm Christy Noman, the United States

1559
01:19:44,520 --> 01:19:49,280
Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border

1560
01:19:49,320 --> 01:19:52,880
Speaker 1: crossings are at the lowest levels ever recorded, and over

1561
01:19:52,960 --> 01:19:56,160
Speaker 1: one hundred thousand illegal aliens have been arrested. If you

1562
01:19:56,240 --> 01:19:59,920
Speaker 1: are here illegally, your next you will be fine nearly

1563
01:20:00,200 --> 01:20:04,200
Speaker 1: one thousand dollars a day imprisoned and deported. You will

1564
01:20:04,240 --> 01:20:07,880
Speaker 1: never return. But if you register using our CBP home

1565
01:20:07,920 --> 01:20:11,280
Speaker 1: app and leave now, you could be allowed to return legally.

1566
01:20:11,640 --> 01:20:16,400
Speaker 1: Do what's right. Leave now. Under President Trump America's laws,

1567
01:20:16,560 --> 01:20:18,559
Speaker 1: border and families.

1568
01:20:18,200 --> 01:20:19,000
Speaker 4: Will be protected.

1569
01:20:19,120 --> 01:20:21,240
Speaker 2: Sponsored by the United States Department of Homeland Security,