WEBVTT - Study Hall: House Hacking with MG the Mortgage Guy 0:00:00.400 --> 0:00:04.280 You just realized your business needed to hire someone yesterday. 0:00:04.800 --> 0:00:09.520 How can you find amazing candidates fast? Easy? Just use Indeed. 0:00:09.960 --> 0:00:12.680 Stop struggling to get your job posts seen on other 0:00:12.760 --> 0:00:16.439 job sites. With Indeed sponsored jobs, your post jumps to 0:00:16.480 --> 0:00:19.000 the top of the page for your relevant candidates, so 0:00:19.120 --> 0:00:22.119 you can reach the people you want faster. According to 0:00:22.160 --> 0:00:26.120 Indeed data, sponsored jobs posted directly on Indeed have forty 0:00:26.120 --> 0:00:30.040 five percent more applications than non sponsored jobs. 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And give us new podcast 0:01:18.800 --> 0:01:22.680 resistance posts, SAYI T John Thomas Jr. Brings us stories 0:01:22.680 --> 0:01:24.800 from the front lines of the movement for Black lives, 0:01:25.040 --> 0:01:27.720 told by the generation fighting for the change. It's a 0:01:27.720 --> 0:01:30.280 show about people refusing to accept things as they are 0:01:30.600 --> 0:01:33.480 and how we can make sure this time really is different. 0:01:33.840 --> 0:01:42.280 Resistance is out now, follow and listen for free on Spotify. 0:01:43.240 --> 0:01:49.280 My graduates from my school being forced back drop Mike 0:01:49.400 --> 0:01:50.760 Drop backdrop. 0:02:02.040 --> 0:02:04.200 We're going to talk today about how to get really 0:02:04.320 --> 0:02:06.760 real estate one on one. So kind of average person 0:02:07.760 --> 0:02:12.239 that doesn't come from, you know, affluent family and low 0:02:12.280 --> 0:02:15.919 socio economic environment, how does someone get into real estate? 0:02:16.000 --> 0:02:17.760 Like, what would be the first step? 0:02:18.639 --> 0:02:22.040 Oh man, The first step personally, I think is mindset. 0:02:22.040 --> 0:02:24.119 You got to make the decision because I think that's 0:02:24.480 --> 0:02:27.880 numero ono right. But as far as financing, you need 0:02:27.960 --> 0:02:30.280 to get pre approved, you need to know exactly what 0:02:30.320 --> 0:02:33.960 you can qualify for. There's several different loans out there. 0:02:34.639 --> 0:02:37.560 So let's speak to the first time home buyer right now. 0:02:38.480 --> 0:02:41.119 What I try to coach all my first time home buyases. 0:02:41.200 --> 0:02:43.639 You know, most people want to go ahead and go 0:02:43.680 --> 0:02:45.480 to White Planes or go to Long Island and buy 0:02:45.560 --> 0:02:48.399 the nice single family home with the white pick offense 0:02:48.480 --> 0:02:50.320 and this that and the third, right, which is cool. 0:02:50.320 --> 0:02:53.000 If that's what you want to do, that's what you 0:02:53.120 --> 0:02:54.880 gotta do. What you gotta do. You got the money 0:02:54.919 --> 0:02:56.720 for well, you got to have the money for it though, right. 0:02:56.760 --> 0:02:58.880 But what I try to encourage all my first time 0:02:58.880 --> 0:03:00.760 home buyers, if you don't have a need for a 0:03:00.760 --> 0:03:03.040 certain school district, or if you don't have, you know, 0:03:03.639 --> 0:03:06.080 children that's going to junior high school or high school, 0:03:06.360 --> 0:03:08.280 then you should always start off with a multi family, 0:03:08.360 --> 0:03:10.320 especially if you know you're looking to get into real 0:03:10.400 --> 0:03:13.000 estate investment. You know at some point in your life, 0:03:13.360 --> 0:03:16.160 start off with a multi family anywhere between two to 0:03:16.240 --> 0:03:16.960 four units. 0:03:17.040 --> 0:03:18.720 And you can use programs. 0:03:18.280 --> 0:03:20.920 Like FAHA, which allows you to put down as little 0:03:20.919 --> 0:03:23.040 as three and a half percent as a down payment, 0:03:24.120 --> 0:03:26.679 which is a terrific program. 0:03:26.800 --> 0:03:30.440 So three and a half would be that's pretty small percentage, yeah, 0:03:30.440 --> 0:03:33.480 so as opposed to I had to just outright put 0:03:33.600 --> 0:03:35.200 like what is it normally twenty percent? No? 0:03:35.280 --> 0:03:37.640 No, no, So you have FAHA that allows you to 0:03:37.640 --> 0:03:40.480 put down three and a half percent, and also conventional 0:03:40.480 --> 0:03:42.480 loans allow you to put down a two US three percent, 0:03:42.520 --> 0:03:44.720 but you have to qualify, you have to be a 0:03:44.800 --> 0:03:48.240 certain income restrictions. If you're buying multi families, you have 0:03:48.360 --> 0:03:50.920 the you know, white planes. The income restriction is probably 0:03:51.040 --> 0:03:54.320 ninety six thousand, So if you exceed that, then you 0:03:54.360 --> 0:03:57.360 won't qualify for that three percent down on a multi family. 0:03:57.840 --> 0:04:00.000 Then you'll probably have to put down as fifteen percent 0:04:00.040 --> 0:04:00.560 because it's. 0:04:00.400 --> 0:04:01.600 Gonna be a boy my residence. 0:04:01.680 --> 0:04:04.360 But FAHA is always a good tool because no matter 0:04:04.520 --> 0:04:07.320 it has to have any income restrictions, as long as 0:04:07.320 --> 0:04:10.480 you're within the county's long limits, then you can and 0:04:10.520 --> 0:04:13.520 you can credit and income qualify, which minimum credit scores 0:04:13.560 --> 0:04:16.680 a five to eighty For FJA loans, we're putting down 0:04:16.720 --> 0:04:20.039 as little's three to half percent. Buy that multifamily and 0:04:20.080 --> 0:04:22.200 you can live in it for twelve months and then 0:04:22.279 --> 0:04:24.080 move out of it, and then you can writ the 0:04:24.240 --> 0:04:27.320 entire the entire place out and now you created a 0:04:27.360 --> 0:04:30.040 cash flow investment property for yourself. And now you can 0:04:30.080 --> 0:04:32.120 now go ahead and go buy your one family or 0:04:32.160 --> 0:04:33.680 your condo or whatever you. 0:04:33.640 --> 0:04:37.000 Want, and now put them in on down payment as well. 0:04:37.080 --> 0:04:41.279 So each county has a set loan limits that you said. 0:04:41.160 --> 0:04:44.680 Yeah, so FHA has. Every county is different, right, So 0:04:45.000 --> 0:04:48.720 we're in like five boroughs west Chester long Island, so 0:04:49.720 --> 0:04:51.560 up to a four family, we can go to one 0:04:51.560 --> 0:04:54.680 point three non seven million every county in America, every 0:04:54.680 --> 0:04:58.160 county in America. So if you're you know, your audience 0:04:58.200 --> 0:05:00.400 is probably all over the place, right, So if you 0:05:00.400 --> 0:05:02.520 want to know what your your county loan limit is, 0:05:02.640 --> 0:05:03.000 just you. 0:05:02.920 --> 0:05:06.480 Can google it again. You know, if you're living in Kentucky, you. 0:05:06.400 --> 0:05:10.039 Can google you know, FAK loan limits for Kentucky or 0:05:10.040 --> 0:05:13.640 whatever counties in Kentucky. Or if you're in Georgia, if 0:05:13.680 --> 0:05:17.240 you're in when It County, you can google FAH loan 0:05:17.279 --> 0:05:19.640 limits for when It County, right, and they'll tell you 0:05:19.880 --> 0:05:22.919 for one family, duplex, driplex for a plex, that's what 0:05:22.960 --> 0:05:23.680 they call it out there. 0:05:23.680 --> 0:05:24.120 So that's why. 0:05:24.200 --> 0:05:26.599 So that's interesting because yeah, so that's interested in that 0:05:26.680 --> 0:05:28.800 you say that your first home should. 0:05:28.520 --> 0:05:30.440 Be a multi family, it should be a multi family absolu. 0:05:30.600 --> 0:05:32.440 A lot of people have the reverse mindset where they 0:05:32.480 --> 0:05:35.080 want to get the picket white fans as their first home, 0:05:35.160 --> 0:05:38.400 and then if they want to get like an investment property, 0:05:38.440 --> 0:05:39.760 then they'll look at multi family. 0:05:39.880 --> 0:05:40.080 Yeah. 0:05:40.080 --> 0:05:42.600 But see that's where they screw themselves, right, because now 0:05:42.640 --> 0:05:44.839 when you go ahead and you do that one family first, 0:05:44.839 --> 0:05:46.640 and you go do the multi family second. Now you 0:05:46.640 --> 0:05:49.120 got to put down twenty five percent. Now less you 0:05:49.160 --> 0:05:52.280 have twenty five percent plus closing costs, which is probably 0:05:52.440 --> 0:05:55.360 you probably spend around thirty percent for that transaction. 0:05:55.839 --> 0:05:58.280 Then guess what, you You just screwed yourself. 0:05:58.320 --> 0:05:59.920 Now it's gonna it's gonna be harder for you to 0:06:00.160 --> 0:06:02.919 get into that investment game. Now if you go ahead 0:06:02.920 --> 0:06:06.120 and you buy that that multifamily first using three and 0:06:06.200 --> 0:06:08.719 a half percent plus your closing costs, Now you have 0:06:08.920 --> 0:06:12.159 a multifamily. Potentially it's you're going to live in it 0:06:12.160 --> 0:06:14.440 because it has to be your prominent residence. You have 0:06:14.520 --> 0:06:17.680 to live in it for twelve months. Right after twelve months, 0:06:17.680 --> 0:06:20.800 you can move out free and clear, no problem. Now 0:06:20.960 --> 0:06:24.160 go ahead and buy another one family buy one family 0:06:24.240 --> 0:06:27.280 property and now still do a minimum down payment loan 0:06:27.800 --> 0:06:30.800 because you're moving out of one and moving into the 0:06:30.839 --> 0:06:33.719 other as your primary residence. So the key to anything 0:06:34.080 --> 0:06:36.360 is all on how you're structuring your loans and structuring 0:06:36.400 --> 0:06:39.400 your deal. Right, and if once you say investment property, 0:06:39.640 --> 0:06:43.160 you automatically think twenty five percent down payment, you say 0:06:43.200 --> 0:06:46.080 from difference, that's a huge difference, and especially here and 0:06:46.160 --> 0:06:48.360 where we are. You know, that can be a couple 0:06:48.480 --> 0:06:50.640 hundred grand depending on that sales price. But if you 0:06:50.680 --> 0:06:54.760 go ahead and do multifamily, first minimum down payment, twelve months, 0:06:54.839 --> 0:06:57.320 you move out, move into your single family. Now you 0:06:57.360 --> 0:06:59.159 have an asset that's going to pay for itself and 0:06:59.200 --> 0:07:01.960 probably pay for you one family or a portion of 0:07:01.960 --> 0:07:04.279 that one family. Right now, you created some sort of 0:07:04.279 --> 0:07:08.200 cash flow. I've had clients move from four family to 0:07:08.240 --> 0:07:10.640 a two family, you know, and still was able to 0:07:10.720 --> 0:07:14.040 use minimum down payments. Now, if you use an FAHA loan, 0:07:14.560 --> 0:07:16.800 you can't go ahead move out of that four family 0:07:16.840 --> 0:07:19.600 property FAHA and then going to the two family FAHA 0:07:19.600 --> 0:07:22.440 because FAHA changed their rules a couple of years ago. 0:07:22.720 --> 0:07:26.760 You can't have two FAHA loans at the same time now, right. 0:07:26.760 --> 0:07:29.520 But you could use it again if you rea. 0:07:29.760 --> 0:07:32.600 What I tell everybody is this, right, you buy that 0:07:32.640 --> 0:07:35.880 four family or that multi family, you stay in there, 0:07:36.160 --> 0:07:39.680 you refinance it, You get out of the FAH loan, 0:07:39.760 --> 0:07:42.960 and you go into a conventional mortgage. Right, probably try 0:07:42.960 --> 0:07:45.240 to pull some equity out of that home so that way, 0:07:45.320 --> 0:07:47.560 now you can use that equity as a down payment 0:07:47.600 --> 0:07:51.360 for your new property. Now you're refinancing as a primary 0:07:51.640 --> 0:07:55.080 primary residence because you're still technically living in there, but 0:07:55.120 --> 0:07:57.800 your intent is obviously at some point to move out 0:07:57.840 --> 0:08:01.080 of it. Now you're taking that equity, you have a 0:08:01.160 --> 0:08:03.680 conventional loan on it. Now, now you're going to buy 0:08:03.680 --> 0:08:06.080 your one family. Great, you're going to go move in 0:08:06.080 --> 0:08:08.320 that one family. Now you can use FHA for that 0:08:08.360 --> 0:08:11.160 one family because this four family or multi family is 0:08:11.160 --> 0:08:14.200 now in the conventional mortgage and you took the equity. 0:08:13.800 --> 0:08:16.840 Out of there to help you purchase that one family. 0:08:16.880 --> 0:08:19.560 And now your tenants are not only paying for this property, 0:08:20.000 --> 0:08:22.120 now they're going to help pay for this property depending 0:08:22.160 --> 0:08:26.000 on the rentals and cash flow of that property. It's 0:08:26.040 --> 0:08:27.920 all about strategy at the end of the day. And 0:08:27.960 --> 0:08:30.440 most people don't lead with strategy. Most people lead with 0:08:30.520 --> 0:08:33.840 emotional And this is business at the end of the day. 0:08:33.960 --> 0:08:37.480 Like you know, I try to coach all my buyers 0:08:38.040 --> 0:08:40.160 think business. I don't care if you're going to live there. 0:08:40.200 --> 0:08:42.680 I don't care about any of that stuff. Men live, 0:08:42.760 --> 0:08:44.800 women live. Numbers don't at the end of the day. 0:08:44.840 --> 0:08:47.520 And if you're telling me your goals are to invest 0:08:47.559 --> 0:08:50.160 in are to invest in real estate, then you. 0:08:50.120 --> 0:08:51.400 Need to think like an investor. 0:08:51.880 --> 0:08:54.600 Every first time home buyers should be thinking like an investor, 0:08:55.000 --> 0:08:58.920 Why go buy the flip? Why when there's programs out 0:08:58.920 --> 0:09:00.480 there for the first time home by like an f 0:09:00.640 --> 0:09:02.680 h A two or three K long or Fanny Made 0:09:02.679 --> 0:09:05.520 Homestyle loan where you can get renovation and your mortgage 0:09:05.520 --> 0:09:08.360 money all in one, all in one loan. Yeah, so 0:09:08.440 --> 0:09:11.520 why not go on buy? Look, we spoke about Envy 0:09:11.559 --> 0:09:14.880 and Caesar. These guys are not buying the flip right, 0:09:15.200 --> 0:09:16.760 They're going ahead and they're buying at. 0:09:16.640 --> 0:09:18.839 The foreclosure auctions. They're buying short sales. 0:09:18.880 --> 0:09:21.320 They buy the worst house in the best in the 0:09:21.360 --> 0:09:23.679 best areas that they can, and they're putting that money 0:09:23.679 --> 0:09:25.760 into it and now they're making their r O Y. 0:09:26.280 --> 0:09:28.360 Why can't every first time home buy I think the 0:09:28.360 --> 0:09:31.160 same way like the investor. Why does the nvs and 0:09:31.160 --> 0:09:33.280 the Cazons of the world need to make all the money? 0:09:33.520 --> 0:09:36.000 Why can't the first time home buy have that same 0:09:36.080 --> 0:09:38.880 strategy and make the same returns. But you're gonna live 0:09:38.920 --> 0:09:40.880 in it for a year, two years, three years, whatever 0:09:40.960 --> 0:09:41.640 the case may be. 0:09:42.000 --> 0:09:43.840 But now you're buying under market. 0:09:44.679 --> 0:09:46.920 That's the whole So you would encourage anybody to go 0:09:47.000 --> 0:09:49.440 into buying a home as an investment. Like, even if 0:09:49.440 --> 0:09:51.959 somebody doesn't necessarily look at themselves a real estate investor, 0:09:52.679 --> 0:09:54.280 I guess they are a real estate investor. 0:09:54.040 --> 0:09:58.080 By buying homes investment. Whether you think you're investor or not, 0:09:58.120 --> 0:09:59.079 you're investment. 0:09:58.800 --> 0:09:59.600 You're investing or not. 0:09:59.720 --> 0:10:02.719 So some people will tell you out there that your 0:10:02.720 --> 0:10:04.960 primary residence or a single family home is not an 0:10:04.960 --> 0:10:09.120 investment because it doesn't generate cash flow, right, which is true. 0:10:09.160 --> 0:10:11.400 But to me, I don't think that's one hundred percent 0:10:11.400 --> 0:10:14.680 true because you're looking at that equity, right. That equity 0:10:14.760 --> 0:10:16.800 is what that first time home buy I should be 0:10:16.840 --> 0:10:19.240 paying attention to. And when that equity gets to a 0:10:19.240 --> 0:10:22.160 certain position, you need to act on it. You need 0:10:22.200 --> 0:10:25.120 to do something with it. Because equity is monopoly money. 0:10:25.320 --> 0:10:28.640 It's not guaranteed. The market crash twelve years ago, right 0:10:28.800 --> 0:10:31.920 when every home was depreciating across America. So if that 0:10:31.960 --> 0:10:34.400 doesn't tell people that equity is monopoly money, I don't 0:10:34.440 --> 0:10:36.520 know what's going to tell them. So I have people 0:10:36.559 --> 0:10:39.280 right now that may purchase a home in twenty eleven, 0:10:39.400 --> 0:10:42.400 twenty twelve. Now they may have two hundred three hundred 0:10:42.400 --> 0:10:43.960 thousand equity, and they don't want to touch it. 0:10:43.960 --> 0:10:45.240 I'm like, what are you doing? 0:10:45.880 --> 0:10:48.400 You need to take that money and do something with it, 0:10:48.480 --> 0:10:51.600 because if the market corrects yourself, which it will at 0:10:51.640 --> 0:10:54.000 some point, now, you're going to kick yourself that you 0:10:54.040 --> 0:10:56.480 didn't jump in the game. Take that money to invest 0:10:56.480 --> 0:11:00.520 in these opportunities zones right and build that generational wealthare yourself. 0:11:01.240 --> 0:11:04.120 Because the market doesn't care about what's going on, the 0:11:04.160 --> 0:11:06.040 market is going to do what the market wants to do. 0:11:06.200 --> 0:11:09.560 So what I try to coach all my buias, my sellers, 0:11:09.640 --> 0:11:14.000 my current homeowners whoever, don't let equity sit there because 0:11:14.040 --> 0:11:14.959 it's not guaranteed. 0:11:15.320 --> 0:11:17.200 You got to use it. If you don't use it, 0:11:17.240 --> 0:11:21.120 then it's not it's nothing. It's monopoly money. That's real. 0:11:23.160 --> 0:11:25.160 Don't the single family home is great, and I don't 0:11:25.200 --> 0:11:27.760 have nothing against the single family home, but I think 0:11:27.800 --> 0:11:32.640 the strategy moving forward should be multi family first, single families, 0:11:32.720 --> 0:11:34.319 laiter down the road because you can always buy a 0:11:34.400 --> 0:11:36.720 single family home. There's never going to be a shortage 0:11:36.720 --> 0:11:39.439 of that. Look, what's happening in the housing is expensive. 0:11:39.800 --> 0:11:43.120 Rent are going up. The rental market is booming right now, 0:11:43.160 --> 0:11:45.960 So why not put yourself in that position to be 0:11:46.600 --> 0:11:51.000 owner occupied landlord where you can basically live for free. 0:11:51.320 --> 0:11:53.800 Now have your job, Now you can save all that 0:11:53.880 --> 0:11:55.319 money to reinvest into. 0:11:55.120 --> 0:11:56.920 Other realpers I think it goes back to where I 0:11:57.000 --> 0:11:58.679 guess last week talked about as well. A lot of 0:11:58.720 --> 0:12:02.679 times we care about we're perceived exactly, and it's like, okay, well, 0:12:02.720 --> 0:12:05.400 how would I look living in a three family home. 0:12:05.480 --> 0:12:08.400 I'd rather have the white picket fence with the backyard 0:12:08.440 --> 0:12:08.840 and all. 0:12:08.679 --> 0:12:10.480 That well, with the Mercedes side. 0:12:13.800 --> 0:12:16.400 When you look at it from a financial standpoint, from 0:12:16.440 --> 0:12:26.280 a lot of different reasons, it does make sense, all right, guys. 0:12:26.280 --> 0:12:27.960 So a lot of people asks us how do they 0:12:28.000 --> 0:12:30.640 make a podcast? So I'm letting on a secret on 0:12:30.760 --> 0:12:34.960 the easiest, most productive way to start a podcast and 0:12:35.000 --> 0:12:37.200 get it up and running, and that is the app 0:12:37.240 --> 0:12:40.480 called Anchor is Free. They have all kinds of cool 0:12:40.480 --> 0:12:42.959 creation tools that allow you to record and edit your 0:12:43.000 --> 0:12:46.040 podcast right from your phone or computer. They will distribute 0:12:46.080 --> 0:12:48.360 your podcast for you to all of the major outlets 0:12:48.400 --> 0:12:52.199 including Spotify, Apple, Google, many more, and you can make 0:12:52.280 --> 0:12:55.800 money from your podcast with no minimum listenership. It's everything 0:12:55.840 --> 0:12:58.960 you need to make a podcast in one simple, easy place. 0:12:59.440 --> 0:13:03.199 So if you're interested, in starting the podcast. Go download 0:13:03.240 --> 0:13:07.520 the free Anchor app or go to anchor dot fm 0:13:07.559 --> 0:13:08.319 to get started. 0:13:08.400 --> 0:13:08.959 Let's do it. 0:13:12.520 --> 0:13:15.480 Oh absolutely, and the piggyback off of episode eleven, which 0:13:15.520 --> 0:13:19.760 was a phenomenal, phenomenal, phenomenal phenomenal episode that So if 0:13:19.800 --> 0:13:22.319 you guys haven't watched it eleven, you need to watch 0:13:22.360 --> 0:13:25.040 that before you watch this to watch all the other 0:13:25.120 --> 0:13:25.520 ten two. 0:13:26.240 --> 0:13:28.559 Episode eleven was fire right, So. 0:13:29.160 --> 0:13:31.640 What he he brought up a great point, right, mixed 0:13:31.720 --> 0:13:35.679 use properties, which mixed use properties are common where we 0:13:35.720 --> 0:13:38.800 are in New York. You can use faha long to 0:13:38.800 --> 0:13:41.080 purchase a mix use property, which a lot of people 0:13:41.120 --> 0:13:43.240 don't know, and put down three and a half percent 0:13:43.679 --> 0:13:46.560 as long as fifty one percent of that mixed use 0:13:46.640 --> 0:13:49.679 is residential. So you can go ahead and buy that 0:13:49.720 --> 0:13:52.160 mixed use that may have a storefront, but two apartments 0:13:52.200 --> 0:13:55.720 or three apartments as residential. And if you're a business owner, 0:13:55.760 --> 0:13:58.640 if you're like he said, he runs a restaurant, now 0:13:58.720 --> 0:14:00.880 he can live in that one of the units, have 0:14:01.040 --> 0:14:04.680 the restaurant and still have two rental incomes coming in 0:14:04.760 --> 0:14:06.000 to help support everything. 0:14:06.080 --> 0:14:06.959 Now living for free. 0:14:07.040 --> 0:14:09.840 His business is for free, and the mortgage is being 0:14:09.840 --> 0:14:11.760 paid off, and you can use the two or three 0:14:11.840 --> 0:14:12.880 k long to renovate it. 0:14:12.920 --> 0:14:15.199 So you can go buy the piece of shit to 0:14:15.440 --> 0:14:17.320 use property and use. 0:14:17.200 --> 0:14:19.520 That renovation money is to fix it up, clean it 0:14:19.600 --> 0:14:21.560 up and open up a business or rent it out 0:14:21.560 --> 0:14:24.560 to another business owner the commercial aspect of it. And 0:14:24.600 --> 0:14:29.000 now commercial rents are much higher than residential rents. So again, 0:14:29.120 --> 0:14:30.440 living in for one year, now. 0:14:30.320 --> 0:14:30.880 You move out. 0:14:31.080 --> 0:14:34.840 Now you have a commercial property or under three and 0:14:34.880 --> 0:14:37.360 a half under an FHA loan with three and. 0:14:37.320 --> 0:14:39.440 A half persent down. Plush your clothing costs. We got 0:14:39.440 --> 0:14:41.080 to know the game, man, You gotta know the game. 0:14:41.120 --> 0:14:43.000 It's all about It's all about strategy. 0:14:43.080 --> 0:14:45.760 And most people, especially listen, we're in the age of 0:14:45.880 --> 0:14:47.320 the business owner the entrepreneur. 0:14:47.440 --> 0:14:50.000 Right. Most people don't think you still need. 0:14:49.840 --> 0:14:52.200 A brick and mortar, but some businesses you need a 0:14:52.200 --> 0:14:54.800 brick and mortar, right, depending on if you're in a 0:14:54.840 --> 0:14:56.760 service industry or whatever the case may be. If you're 0:14:56.800 --> 0:14:58.880 in retail, if you want to open a store or restaurant, 0:14:59.120 --> 0:15:00.840 like you said, one of the t off his businesses, 0:15:00.880 --> 0:15:03.680 because the overhead right and rent is a big thing. 0:15:04.120 --> 0:15:06.880 But if you have a mixed use property and you 0:15:06.880 --> 0:15:09.760 want to open up a restaurant, why not use that 0:15:09.800 --> 0:15:12.760 as your primary residents also for at least twelve months. 0:15:12.760 --> 0:15:13.920 For that twelve month. 0:15:13.800 --> 0:15:17.960 Sacrifice, get the loan living there because you always can 0:15:18.000 --> 0:15:21.560 move out. And now you have a business that's basically 0:15:21.640 --> 0:15:25.320 in there for free rental and rental property. So you 0:15:25.400 --> 0:15:27.880 get you know, you're killing two birds with one stone, 0:15:27.960 --> 0:15:30.080 so to speak. You get rental and your business in there, 0:15:30.120 --> 0:15:32.880 and your your business is not going to have all 0:15:32.880 --> 0:15:36.440 that overhead, the pressure of paying the rent because you 0:15:36.480 --> 0:15:38.200 know what, it's your mortgage and your tenants are paying 0:15:38.240 --> 0:15:38.960 for it upstairs. 0:15:39.760 --> 0:15:40.920 So it's all about strategy. 0:15:41.000 --> 0:15:42.080 Not all good in real estate. 0:15:42.080 --> 0:15:46.120 It's never always a dangerous Now we're going to we're 0:15:46.120 --> 0:15:49.320 going to explain that how things can go wrong, all right. 0:15:49.520 --> 0:15:52.240 So, as I said, it's never all good in anything 0:15:52.280 --> 0:15:52.600 in life. 0:15:52.720 --> 0:15:52.880 Right. 0:15:53.560 --> 0:15:59.080 So, real estate is something that's very popular, very trendy 0:15:59.240 --> 0:16:02.160 right now, and very has this stigma I think of 0:16:02.320 --> 0:16:04.400 everybody thinks they're just gonna get rich overnight, right, and 0:16:04.440 --> 0:16:07.280 people don't know it's like any business. You know, when 0:16:07.280 --> 0:16:09.440 you go into business without a plan, your destined to field. 0:16:09.520 --> 0:16:09.760 Right. 0:16:10.000 --> 0:16:12.080 So if you plan to be a real estate investor. 0:16:12.240 --> 0:16:14.240 And as you said, whether you think you're investor or not, 0:16:14.320 --> 0:16:16.280 if you're buying a home, you're an investor. But you 0:16:16.320 --> 0:16:19.160 don't have a plan in place, then you're gonna aid 0:16:19.200 --> 0:16:23.200 probably make mistakes and worst propulica scenarios, you're gonna fail correct. Right, 0:16:23.360 --> 0:16:26.360 So this dudes and don't involve right, absolutely? Can you 0:16:26.400 --> 0:16:29.040 just talk about some dudes and don't in the real 0:16:29.120 --> 0:16:29.680 estate game. 0:16:29.680 --> 0:16:30.720 Yeah, there's tons of them. 0:16:30.800 --> 0:16:32.880 Right, But if you're a first time home by one 0:16:32.880 --> 0:16:35.680 of the don'ts I tell people is, especially if you're 0:16:35.840 --> 0:16:40.480 in the application process, you found the house, you're in contract, 0:16:41.160 --> 0:16:45.480 don't open their debt, don't buy your Mercedes, bends before 0:16:45.480 --> 0:16:48.400 you go to closing. Don't change your jobs, you know, 0:16:48.600 --> 0:16:51.640 don't do something that would impact you in a negative 0:16:51.680 --> 0:16:55.680 way to turn your approval to a decline. Right, And 0:16:55.760 --> 0:16:58.280 most people you think is common sense, right, but common 0:16:58.280 --> 0:17:01.080 sense is not common Unfortunately they're not. 0:17:01.080 --> 0:17:03.840 It's true most people, like they don't realize, like when 0:17:03.840 --> 0:17:04.840 you apply for a car. 0:17:05.040 --> 0:17:06.600 They do a credit sure yea, then they have to 0:17:06.640 --> 0:17:06.960 pull your. 0:17:07.560 --> 0:17:09.000 Now they don't realize when you go for a car, 0:17:09.119 --> 0:17:12.200 they may pull your credit. What ten other banks to shop. 0:17:13.440 --> 0:17:15.680 This episode is brought to you by P and C Bank. 0:17:16.080 --> 0:17:18.840 A lot of people think podcasts about work are boring, 0:17:19.040 --> 0:17:22.879 and sure they definitely can be, but understanding a professionals 0:17:22.960 --> 0:17:26.200 routine shows us how they achieve their success little by little, 0:17:26.600 --> 0:17:30.240 day after day. 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