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Speaker 1: Do what's right. Leave now. Under President Trump, America's laws,
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Speaker 2: Sponsored by the United States Department of Homeland Security. Get
Speaker 2: into the investor loan programs right.
Speaker 3: So, COVID nineteen came, a lot of things changed with
Speaker 3: the underwriting guidelines. But I'm here to tell you guys,
Speaker 3: a lot of programs are opening back up. So we're
Speaker 3: going to talk about tonight conventional financing using traditional Fannie MAE,
Speaker 3: Freddie MAC, income based financing to buy your first property
Speaker 3: or your tenth property. Hard money loans, We're going to
Speaker 3: talk about that. There's been a lot of changes, but
Speaker 3: a lot of hard money private lenders are opening back
Speaker 3: up again. I had conversations with several of them over
Speaker 3: the past week. Programs are coming back, Flexibility is coming back,
Speaker 3: So we're going to go through you know what I found,
Speaker 3: and asset based lending my favorite, right, income based loans,
Speaker 3: your exit strategy to get out of a hard money
Speaker 3: loan if you're doing a buy fix and then you
Speaker 3: want to hold it a long time. So that's the
Speaker 3: great thing that I want to report to you guys,
Speaker 3: that asset based loans are really coming back to full swing.
Speaker 3: So I'm gonna break these programs down for you. So
Speaker 3: conventional finance minimum six to eighty credit score. So I'm
Speaker 3: just going to give you guys kind of like the
Speaker 3: ABC's what you need to qualify.
Speaker 2: For, and then we go through Q and A. I'm
Speaker 2: pretty sure you guys are going to have a lot
Speaker 2: of questions about this stuff.
Speaker 3: So minimum crick six to eighty credit score. It's a
Speaker 3: full documentation loan, meaning it's income base.
Speaker 4: Right.
Speaker 3: W two's taxi turns paced up, just like you're gonna
Speaker 3: buy your primary residents.
Speaker 2: Right.
Speaker 3: Your minimum down payment is fifteen to twenty five percent
Speaker 3: of the purchase price. Now a single family or a
Speaker 3: condo investment property, you can put down as little as
Speaker 3: fifteen percent. Multifamilies, duplex, triplex squads twenty five percent down payment.
Speaker 2: No if ansbuch about it.
Speaker 3: Maximum sellers concession is three percent. Sellers concession guys is
Speaker 3: when the seller agrees to pay a portion of your
Speaker 3: closing cost. So one hundred thousand dollars sales price a
Speaker 3: three percent concession three thousand.
Speaker 2: Dollars that the seller is going to pay.
Speaker 3: One to four family properties like I said, Fanny may
Speaker 3: approve condos. The max loan amount is based off the
Speaker 3: Fandy mad loan limits. Single families are five hundred and
Speaker 3: ten thousand. If you live in high cost areas like
Speaker 3: New York Cali areas like that, single family goes up
Speaker 3: to seven sixty five, and you can go up to
Speaker 3: one point four million dollars with a four family property.
Speaker 2: All right.
Speaker 3: Rehab money is available for conventional investment properties. Only one
Speaker 3: family properties are allowed currently under the Fanny Made Homestyle program.
Speaker 2: That program right now, you.
Speaker 3: Need about a six sixty credit score to start off
Speaker 3: with that. Six to twelve months of reserves are required
Speaker 3: for each property owned. Now, this is one of the
Speaker 3: big things with conventional loans, the reserve requirement. Fanny Main
Speaker 3: and Freddie Mack will allow you to have up to
Speaker 3: ten finance properties, but for each finance property, you need
Speaker 3: to have six to twelve months of reserves.
Speaker 2: For each property.
Speaker 3: It could be in a retirement plan liquid but you
Speaker 3: have to document right. And this is where conventional financing
Speaker 3: gets a little bit tricky because some investors are just
Speaker 3: they just don't have that type of reserves handy. But
Speaker 3: one of the main reasons why you guys would want
Speaker 3: to go with conventional financing is because of the interest rates.
Speaker 2: The interest rates are going to be really cheap. I
Speaker 2: mean right now we're locking in people in the.
Speaker 3: Low four percent range on thirty year fixed mortgages even
Speaker 3: had a couple coming and the hot threes for investment properties, multifamilies,
Speaker 3: refinances and purchases. So that's one of the main reasons
Speaker 3: why you would go with a Fannie May of Freddie
Speaker 3: Mac conventional financing, because you really want to take take
Speaker 3: that cheap money that's available. Now, your LLC can be
Speaker 3: invested in the deed post closing if you are one
Speaker 3: hundred percent owner of that LLC and you're the owner
Speaker 3: of the property, but the mortgage will be in your
Speaker 3: personal name. Okay, you cannot get a mortgage in your
Speaker 3: LLC with conventional financing. So conventional finance, and again many
Speaker 3: many of clients of Minds have used this to buy
Speaker 3: Airbnb properties single families that they want to rehab and
Speaker 3: and rent them out long term because.
Speaker 2: It's the money. It's just so cheap.
Speaker 3: But if you don't again, income base W two's tax returns,
Speaker 3: pay stubs, that's the documents that we need to.
Speaker 2: See rental income.
Speaker 3: We can help use to help you qualify if you
Speaker 3: have a history of collecting rental income.
Speaker 2: On your tax returns.
Speaker 3: So those are the kind of the basics of the
Speaker 3: conventional program. All right, so let's let's move on. We're
Speaker 3: going through this. Okay, guys, good, all right, all right,
Speaker 3: So hard money loans, right, So, hard money loans favorite
Speaker 3: of most investors, especially if you're going to do a.
Speaker 2: Fix and flip.
Speaker 3: You want to buy forll closed property that's a multi failure,
Speaker 3: but you want to hold it in a long run.
Speaker 2: You want to go the hard money route. This is
Speaker 2: the way to get the quickest, cheapest, fastest money.
Speaker 3: If you're buying at an auction, if you're buying, you know,
Speaker 3: one of those properties, if they say all cash, typically
Speaker 3: hard money is allowed. So you have very flexible times
Speaker 3: with this out Let me get back to conventional real
Speaker 3: quick closing time.
Speaker 2: Closing time with conventional loans are going to be.
Speaker 3: Around thirty to sixty days, just depending on the lender also,
Speaker 3: and that's very important if you're in a competitive bidding
Speaker 3: more on a property, you need to be able to
Speaker 3: close fast. So that's a con with conventional loans for investors.
Speaker 3: Just want to throw that out there.
Speaker 2: Closing time with hard money typically around two weeks.
Speaker 3: Some guys say they can do it in ten days,
Speaker 3: but I'll tell yourself, just prepare for two weeks closing.
Speaker 3: There's no income verification, so unlike traditional fanny made loans,
Speaker 3: you don't need W two's pay stuffs, TAXI terms, you
Speaker 3: don't need any of that information. The property is in
Speaker 3: your LLC's name, you will personally guarantee it. But it's
Speaker 3: probably ninety five percent of the hard money private lenders
Speaker 3: out there, they will take a look at your credit score.
Speaker 3: That's why they need a minimum six twenty to six sixty.
Speaker 3: This depends on who you're going to. Some people are
Speaker 3: still as six twenty. Some people want the highest score.
Speaker 3: It just all depends on what you're talking to. But
Speaker 3: you don't need no income documentation, all right. Minimum down
Speaker 3: payment dependent on experience, will be anywhere right now from
Speaker 3: fifteen to thirty percent if you have if you have
Speaker 3: a lot of experience, you can probably get the higher financing.
Speaker 3: But if you don't have experience, if your first time
Speaker 3: and right now, you can expect to put down twenty
Speaker 3: to thirty percent down payment.
Speaker 2: One hundred percent.
Speaker 3: Rehab court is available out of sixty five percent ARV.
Speaker 3: All right, pre COVID, you have some very aggressive lenders
Speaker 3: out there that.
Speaker 4: Will do you just explain? Can you just explain what
Speaker 4: ARV is?
Speaker 2: So after renovated value, okay, after rented value. Renovated value
Speaker 2: is your ARV.
Speaker 3: So it's basically the comps right, that's basically what you
Speaker 3: have to look at when you're going into any type
Speaker 3: of rehab situation. So easy numbers, right, how you figure
Speaker 3: out sixty five percent ARV. So you got one hundred
Speaker 3: fifty thousand dollars acquisition price, fifteen thousand dollars in repairs
Speaker 3: at sixty five sixty five thousand total between rehab and acquisition,
Speaker 3: the helmet will be worth one hundred thousand per the comps.
Speaker 3: The comps are comparable sales, typically within a one mile
Speaker 3: radius of the property sold within the past six months,
Speaker 3: depending on the area. If it's not enough sales, the
Speaker 3: praiser can go further out in time or in distance.
Speaker 3: They just have to notate that. But that's pretty much
Speaker 3: what you want to look for is the comps, and
Speaker 3: that's going to determine. So in that situation is one
Speaker 3: hundred thousand dollars comps, it will sell one hundred k.
Speaker 2: So your ARV in that situation is sixty five percent.
Speaker 4: Man, Man, what kind of interest rates are we looking at?
Speaker 4: Fo hard money?
Speaker 2: So boom, there we go.
Speaker 3: Oh, interest rates are going to be somewhere in that
Speaker 3: right now, nine to fifteen percent range, depending on who
Speaker 3: you talk to, your relationships, new or season investor. You know,
Speaker 3: the guys who've been out here consistently doing numbers, they're
Speaker 3: still getting that nine to ten percent with the more
Speaker 3: favorable terms.
Speaker 2: Right now, the people who are new are getting.
Speaker 3: The thirteen to fourteen percents and the twenty five to
Speaker 3: thirty percent down payment.
Speaker 2: So it's this all depends on where you are in life.
Speaker 2: But again a lot.
Speaker 3: Of them are starting to As America starting to reopen,
Speaker 3: construction starting, people are starting to loosen that up. So
Speaker 3: from what I'm hearing, by mid summer beginning August somewhere
Speaker 3: around there, this should the requirements for down payment should
Speaker 3: go back up if things keep moving the way they're
Speaker 3: going right now, godre all right, So one four family
Speaker 3: investment properties only. You can't buy your primary residents and
Speaker 3: get a hard money loan. It's only investment properties. Some
Speaker 3: hard money lenders are requiring reserves anywhere from three.
Speaker 2: To six months.
Speaker 3: But again, depending on your relationships and who you are,
Speaker 3: you probably don't need no reserves.
Speaker 5: And that's one good thing, not to not to cut
Speaker 5: you offrom that, but not to cut you off.
Speaker 4: But I'm gonna cut you off. But that's yeah, we
Speaker 4: did a.
Speaker 5: Hard money class on Eyo University because a lot of
Speaker 5: people act all the time like you know, who should
Speaker 5: I contact about hard money and stuff like that. It's
Speaker 5: a variety of different people, but it's all about relationships.
Speaker 5: So that's one of the things that we try to
Speaker 5: provide at Eyo University. Also is that you know, you
Speaker 5: have direct access city people. So I believe the gentlemen
Speaker 5: that did the classes he works with DJMV and Cason
Speaker 5: absolutely absolutely.
Speaker 2: Kevin. Kevin a great guy. We can you know, he's
Speaker 2: the go to for the team. I work a lot
Speaker 2: with him.
Speaker 3: He closes a lot of deals for everybody, so yeah,
Speaker 3: he's that guy we use and he.
Speaker 4: Gave everybody his contact and all that, right.
Speaker 3: Absolutely at A lot of the people have been in
Speaker 3: touch with Kevin getting deals done, so he's he's made
Speaker 3: it suff available for eyl University members all right. All right,
Speaker 3: So three to six months are reserves depending on the
Speaker 3: lender closing your LLC. Name only experience is preferred, but
Speaker 3: it's not required, all right, Licensed contractors required. Some lenders
Speaker 3: don't care if you have a licensed contractor or not.
Speaker 3: Just all depends on the lender. Twelve month terms, particularly
Speaker 3: for hard money so you got to have your exit strategies.
Speaker 3: You got to know how you get rid of that property.
Speaker 3: For your newcomers. You don't want to get full closed on.
Speaker 3: You can get extensions depending on who you're talking to,
Speaker 3: anywhere from three months to six months for an extensions
Speaker 3: is going to come out of feed. It's probably going
Speaker 3: to be very expensive. And like I said earlier, TROIT
Speaker 3: interest rates on hard money loans right now ranging between
Speaker 3: nine and fifteen percent and with the points is two
Speaker 3: to four points. Now points is a one percent of
Speaker 3: your loan amount. So if it's one hundred thousand dollars loan,
Speaker 3: you're looking at two points. That's two grand.
Speaker 4: Right.
Speaker 2: The smaller the loan, the more points you're going to
Speaker 2: be charged, the least amount of experience, The more points
Speaker 2: you're going to get charged, the more experienced, the cheaper
Speaker 2: the rate, the cheaper the cost.
Speaker 6: All the terms usually just twelve months or have we
Speaker 6: seen them extended past twelve, like twelve to eighteen?
Speaker 2: Yeah, you've seen them extend up to eighteen.
Speaker 3: You know, there's a lot of lenders that had to
Speaker 3: do four bearans because some investors just couldn't work right
Speaker 3: during COVID. So you know, a lot of that is
Speaker 3: now starting to reopen up again, so extensions might be
Speaker 3: a little bit more generous in the next couple of months.
Speaker 3: But I know a lot of people had to hold
Speaker 3: a lot of notes because of the four barances and everything.
Speaker 5: That you got something on your screen that says the
Speaker 5: recording has been stopped. I mean, it's all good. We
Speaker 5: can still hear you answer you. But yeah, there's like
Speaker 5: some letters on your screen that says, man, we.
Speaker 2: Got my camera trying to Teddy Riley mean, all right,
Speaker 2: so we're gonna keep going.
Speaker 4: Yeah, you're good, keep going. Yeah.
Speaker 2: Yeah, So all right, so we got that's what the
Speaker 2: hard money? We got any questions while I'm doing this
Speaker 2: real quick?
Speaker 4: Yeah we do?
Speaker 2: Actually, yeah, take take one two.
Speaker 6: Well, you got your hosting it, so you gotta put jamal.
Speaker 6: Jamal is trying to ask question as his hand raise.
Speaker 6: Go ahead and take control real quick, all right, gotcha, Jamal,
Speaker 6: we're coming to you. Mute yourself. You've been unmuted.
Speaker 2: On Matt. Yeah, what's going on?
Speaker 4: The quick?
Speaker 7: Question about your experience or was it experience with hard
Speaker 7: money or your experience with uh, you know, rehabbing homes?
Speaker 7: Can you break that down a little bit both, right,
Speaker 7: So mainly didn't want to look for your experience with
Speaker 7: hard money.
Speaker 2: But if you have.
Speaker 3: Investment properties, they will count that also just to pay
Speaker 3: on how many property.
Speaker 2: It just depends on how many properties you are. Okay,
Speaker 2: but what about flipped in the past. Was it in
Speaker 2: the past twenty four months? Yeah?
Speaker 3: Yeah, that's fine. So they'll go back on your resumes.
Speaker 3: So when you're when you guys are applying with lenders,
Speaker 3: they're going to ask you how many transactions you completed.
Speaker 3: Most want to see twenty four months, some will go
Speaker 3: twelve months. But for the most part, if you got
Speaker 3: experience even three.
Speaker 2: Years ago, disclose it. Right.
Speaker 3: The more experience you have, even if it's spread out
Speaker 3: over ten years, Let's say if you did five flips
Speaker 3: or seven flips in the last ten years, like, you
Speaker 3: still have experience, right, Okay, thank you.
Speaker 4: I appreciate you. I appreciate that.
Speaker 2: No problem.
Speaker 4: Yeah, we met.
Speaker 6: I got a couple so I'm gonna go to a
Speaker 6: few months that go. Yeah, yeah, go ahead, all right,
Speaker 6: Patrice be coming to you.
Speaker 4: I meet yourself. You've been unmuted.
Speaker 5: Hi, I had a question outside of flip properties, what
Speaker 5: other benefits.
Speaker 2: Would people use hard money for to flip properties? That's it.
Speaker 3: That's the only Like it's like a hammer, right, What
Speaker 3: else are you gonna use a hammer for just a
Speaker 3: driller nail or hit somebody in the head.
Speaker 2: But like you know what I'm saying.
Speaker 3: But like, hard money is a tool, right, that's the
Speaker 3: main purpose of the tools to flip a house or
Speaker 3: get a house to rehabit. It's short term solution. It's
Speaker 3: quick funding.
Speaker 2: Okay, So not read somebody I see somebody else post
Speaker 2: it to not rehabit holds.
Speaker 3: Yeah, you can rehabit holds. So you can use it
Speaker 3: to rehab the property. You can flip the property, or
Speaker 3: you can hold the property. And that's why you need
Speaker 3: to refinance out of it and get yourself into an
Speaker 3: asset based loan, which I'm a covered.
Speaker 2: Right after I get this camera.
Speaker 5: Right, So you want to refine mat Just from my
Speaker 5: understanding from talking to the guys that really do hard
Speaker 5: money a lot, the reason why you don't want to
Speaker 5: stay in the hard money long long term is because
Speaker 5: the interest rates is so much higher, right.
Speaker 3: Yeah, absolutely, I mean interest rates are much higher. You
Speaker 3: got none to fifteen percent. It's interestingly you know that
Speaker 3: can get expensive depending on your loan amount.
Speaker 2: Right that carrying corust can add up. So you want
Speaker 2: to get out of it.
Speaker 3: And it's only a twelve month term, it's going to
Speaker 3: balloon on you, so you you have to go. Hard
Speaker 3: money is all about getting in and getting out, whether
Speaker 3: you're flipping it or whether you're going to buy and hold.
Speaker 3: You need if you're going to a buide hold or
Speaker 3: rehab and then hold, you need to know your asset lender.
Speaker 3: You need to know who's going to be the person
Speaker 3: that's going to refinance you out of it. You need
Speaker 3: to know their qualifications. You already have to have that
Speaker 3: lined up, so it's a seamless transition.
Speaker 2: You don't get jammed up.
Speaker 6: Man, when you're looking for a hard money lender. Are
Speaker 6: you looking for somebody that is in a close proximity,
Speaker 6: like somebody that's local or can we do this anyway
Speaker 6: in the United States?
Speaker 3: Man, I don't care if they're in Hawaii. You know
Speaker 3: they're able to fund fund perfect.
Speaker 4: Patrice. We appreciate you, thank you, thank you, thank you,
Speaker 4: thank you. Morgan. We coming to you. I mute yourself.
Speaker 4: You've been unmuted. What's going on?
Speaker 8: With fellas.
Speaker 4: How y'all doing. How you I'm all right.
Speaker 8: I had a quick question about you, I said earlier.
Speaker 8: I think it was in a conventional loan for the
Speaker 8: rehab money for the single families. I just wanted to know,
Speaker 8: is there also opportunities to get money or different incentives
Speaker 8: if you get that single family and the opportunity zone.
Speaker 3: If you get the single family and the opportunity zone
Speaker 3: for investment property, you can use family made home style.
Speaker 3: It's not like you get like extra money just because
Speaker 3: it's in the oz.
Speaker 2: I mean that.
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Speaker 3: The money you'll get is in the future, you know, seven, eight,
Speaker 3: nine years from now when people probably start selling because
Speaker 3: it's all gonna be tax free.
Speaker 2: Okay, I got you.
Speaker 4: Appreciate it.
Speaker 2: Morgan, appreciate you, marg I appreciate you. My guy shout
Speaker 2: out to all the ernest.
Speaker 6: I got like two more, man, you want to take
Speaker 6: two more and then keep going?
Speaker 2: Yeah? You go ahead?
Speaker 6: All right, Christopher, you are unmuted.
Speaker 4: I'm mute yourself. God.
Speaker 2: Hello, yeah, yeah you just what's going on?
Speaker 8: Man?
Speaker 2: Just a quick question? So hard money could har money
Speaker 2: be used.
Speaker 3: For sixty teen units of ten to fifteen property? Depends
Speaker 3: depends on who you're talking to. You do have hard
Speaker 3: money lenders out there that only focus on the big
Speaker 3: commercial stuff. So yeah, there are opportunities out there, but it's,
Speaker 3: you know again, experience. If you have the experience, then
Speaker 3: you can you can find financing for anything you want.
Speaker 6: Appreciate you, bro, Thanks Chris, Stephanie, we got you. U
Speaker 6: mute yourself, You've been unmuted, God.
Speaker 8: Thank you.
Speaker 10: Hi everyone, I have a question. I'm trying to figure
Speaker 10: out how if you don't own a property currently and
Speaker 10: you know how if you have an FAHA or conventional
Speaker 10: it can be three and a half if it's your
Speaker 10: primary resident. So I'm trying to figure out if you
Speaker 10: don't own anything, how do they know it's going to
Speaker 10: be an investment property if technically it can be your
Speaker 10: primary if you don't own another property.
Speaker 2: Does that make sense?
Speaker 3: So are you talking about if you're buying with hard
Speaker 3: money or investment propertys or just FAHA and just in general.
Speaker 10: Just in general, Like I know you have to put
Speaker 10: fifteen percent to twenty five like you said if it's
Speaker 10: an investment property, But what if I don't own another
Speaker 10: property and this is my first property? And yes I
Speaker 10: do want to look to rent it out later in life,
Speaker 10: but like, how can I get in with just the
Speaker 10: three and a half down versus going on.
Speaker 2: Very very easy and simple just live there.
Speaker 3: Okay, that's what you gotta do, bio multi family living
Speaker 3: it for a year and then house hack your life away.
Speaker 6: Okay, okay, you know.
Speaker 2: So you can.
Speaker 3: You can use FAHA as a tool to help you
Speaker 3: build wealth with real estate. Three point five percent down
Speaker 3: right now, credit scorees of ranging anywhere between six hundred
Speaker 3: and six forty as a minimum score, just depending on
Speaker 3: who you're speaking to. So yeah, you can buy own
Speaker 3: an your pod multi family properties with the FAH loan
Speaker 3: and just hold for a year.
Speaker 2: Yeah, just living it for you.
Speaker 3: Look, guys, if you want to go ahead in three
Speaker 3: point five percent, get grant money, you know, do oer
Speaker 3: PM your life away house hack your life away. The
Speaker 3: system is heir is designed for you to do it.
Speaker 3: You just got to play by the rules, you know,
Speaker 3: and sacrifice that one year.
Speaker 2: One year is nothing. Absolutely, thank you, Matt. Appreciate you.
Speaker 6: Earn as we see, Matt, well, I'm gonna give you
Speaker 6: the whole privileges back. I see there's a lot of questions.
Speaker 6: We're gonna get to all the home. But let's take
Speaker 6: an intimission. So YouTube YouTube, shout to everybody in YouTube,
Speaker 6: shout out to prove it, mom for making encouraging people
Speaker 6: to hit the like button.
Speaker 4: Appreciate it's almost to prove that, mom.
Speaker 5: If we can get everybody just to take a millisecond
Speaker 5: and hit the like button, it's extremely free. You won't
Speaker 5: even burn a calorie. So but it does actually help.
Speaker 5: It helps with the algorithm and it helps the channel.
Speaker 5: So we would greatly appreciate it if you guys can
Speaker 5: just take a second out of your day and hit
Speaker 5: the like button, we appreciate that.
Speaker 3: And yeah, so also share this, man, share this with
Speaker 3: your community right now. Tell your people as you getting
Speaker 3: some good knowledge, and tell them to come come join
Speaker 3: the party with us live.
Speaker 4: That's a fact.
Speaker 5: And yeah, once again, if people are just joined us,
Speaker 5: they might be wondering, like who's on the zoom call.
Speaker 5: So this is an open enrollment. Once a month we
Speaker 5: do an open class just showing showcasing Eyo University. We
Speaker 5: do this stuff every single week. We did a hard
Speaker 5: money class. We do all kinds of different classes. And
Speaker 5: if you're interested in joining Eyo University, you get access
Speaker 5: to seventy past webinars, weekly webinars, access to our private
Speaker 5: investment group on Facebook, access to the book and movie club,
Speaker 5: and then Matt does a bi weekly real estate session
Speaker 5: with the group.
Speaker 6: So I see people that are asking questions like this,
Speaker 6: what about NAC or what about Sony Maine.
Speaker 4: We actually have class.
Speaker 5: Now, we have a class on everything, class on that community.
Speaker 5: We got a class on hard money. We got a
Speaker 5: class on Section eight. So every single week it's a
Speaker 5: different class.
Speaker 3: We got a class on that class on wholesale and.
Speaker 5: That I'm gonna be teaching a class soon about saving
Speaker 5: for your kids because everybody keeps asking about that. So
Speaker 5: I'm gonna teach a class about that, about how to
Speaker 5: invest money for your kids. So yeah, the price, the
Speaker 5: price is going up tomorrow. The price is told so
Speaker 5: if you want to take advantage of this is the
Speaker 5: lowest price it'll ever be. Put the information in here.
Speaker 5: The code is earners and yeah, we would love to
Speaker 5: see you on the other side. But Matt, I had
Speaker 5: a question. Somebody said house hacking. You said that, Can
Speaker 5: you just explain for people that might not be familiar
Speaker 5: with what house hack? Because we always we always want
Speaker 5: to make sure that everybody is taking part of the conversation.
Speaker 4: We don't want to leave anybody behind.
Speaker 6: Yeah, there was a few people like, oh man, this
Speaker 6: sounds a little advanced, So let's go down just so what.
Speaker 4: What what is house hacking? All right?
Speaker 2: Gods?
Speaker 3: So look, house hacking could be a variation of different things, right,
Speaker 3: many people have different definitions for it. So when I
Speaker 3: speak of house hacking, I'm more so saying go and
Speaker 3: building a real estate portfolio using you know, minimum down
Speaker 3: payments right, using the owner occupy strategy, staying in the
Speaker 3: house for one or two years. Start off with a
Speaker 3: four family FAHA three point five percent down refinance in
Speaker 3: a year out off out of the FHA into a
Speaker 3: conventional loan, Move out of the house, go buy another
Speaker 3: property three family three point five percent down, living it
Speaker 3: for a year to two, then repeat the cycle. Go
Speaker 3: to the two families, so you go four three two one.
Speaker 3: If your area is not does not have a lot
Speaker 3: of four families or triplexus, then go duplex.
Speaker 2: Right. It can work either which way. You can also
Speaker 2: house hack by getting a single family and having roommates
Speaker 2: right written out your rooms. I know folks who live
Speaker 2: in the basement and airbnb their homes. Right. There's many different.
Speaker 3: Ways to house hack to live for free. You just
Speaker 3: have to pick a strategy that will works best for you.
Speaker 3: This stuff is like real estate investment or just running
Speaker 3: a business period. I think personally is unique to you.
Speaker 3: It's like your fingerprint, right. You got to do what's
Speaker 3: best for you. At the end of the day, everybody's
Speaker 3: going to have an opinion. Run your business as you
Speaker 3: see fit. Pick your lane of what you want to
Speaker 3: go in and just go do it. You know, if
Speaker 3: you don't have the capital to do twenty percent down,
Speaker 3: thirty percent down, you can only do three point five.
Speaker 2: Great, do it. There's options. You know, you can get
Speaker 2: grants to help you with down payment.
Speaker 3: You got programs like Sony Made, like you mentioned in
Speaker 3: just a little while ago, where you can get down
Speaker 3: payment assistance, and these things are available all over the country.
Speaker 3: You just have to know where to look. You have
Speaker 3: to work with the right team of real estate professionals, realtors,
Speaker 3: loan offices, and use Google and Google this stuff is
Speaker 3: right there at your fingertips. So there's many different options,
Speaker 3: and there's many different ways where people can get in
Speaker 3: the game and house hack and build up a portfolio
Speaker 3: in a couple of years. I've seen it time and
Speaker 3: time again.
Speaker 6: Yeah, man, you said a lot of important people just
Speaker 6: now in what you were saying. But if I'm a
Speaker 6: first time investor, like who should be on my team?
Speaker 6: Like what players should I be putting on my team
Speaker 6: if I'm going into the investment game.
Speaker 3: So I think if you're buying real estate period, you
Speaker 3: should have a loan officer or you know, a money
Speaker 3: a mortgage guy, mortgage girl. Right, you need a realtor,
Speaker 3: you need a wholesaler, you need a contractor you know
Speaker 3: what I'm saying.
Speaker 2: You need hope.
Speaker 3: You need attorneys very important. You definitely need attorneys. Even
Speaker 3: if your state is not an attorney state, you still
Speaker 3: need an attorney just in case someone's going to suit you.
Speaker 2: Right, you need property managers.
Speaker 3: If you're investing out of state, you need someone who
Speaker 3: can help manage those properties. Man, you need a CPA.
Speaker 3: Let's talk about that for a second, because remember this
Speaker 3: is a whole wealth play, right, This is about generational wealth,
Speaker 3: and you need to have your CPA. You need to
Speaker 3: have a U, the state plan. You need to be
Speaker 3: able to have these these things together because if you're
Speaker 3: going to be out here buying real.
Speaker 2: Estate, you need to be able to pass it down.
Speaker 4: Right.
Speaker 3: We're working hard out here to acquire this knowledge, to
Speaker 3: acquire this wealth that we all have opportunity to get. Yo,
Speaker 3: make sure you do it right, man, Get your state plans,
Speaker 3: get your insurance, get everything that you need, and that
Speaker 3: needs to be a part of your team.
Speaker 4: Right.
Speaker 2: It's not just about can I go buy some houses?
Speaker 2: You know what I mean? You need to have everything
Speaker 2: come full circle.
Speaker 5: Dope, dope, just all right? So you want to keep
Speaker 5: going with your slides. You want to take some more.
Speaker 3: Questions now, No, no, no, let me let me keep going
Speaker 3: so we can wrap this up. I can wrap this
Speaker 3: up in like five minutes, all right, all right, So
Speaker 3: look I see my screen.
Speaker 2: All right, great, so let's get onto asset base.
Speaker 6: Right.
Speaker 3: So a lot of people in the comments on YouTube
Speaker 3: earners asking about the birth strategy buy, renovate, refinance, rent
Speaker 3: and repeat. Right, So this is the most important part
Speaker 3: of that birth strategies. Your refinance. Okay, your asset based lender.
Speaker 3: You need to find your asset based lender EYL private
Speaker 3: Facebook group. No worries, I'm gonna put it some in
Speaker 3: the group so that way you guys have direct access
Speaker 3: to it. All right, minimum credit score six sixty to
Speaker 3: six eighty. No income verification is needed, so no W two's,
Speaker 3: no pay stubs, no bank statements, none of that stuff.
Speaker 3: Like a conventional loan. Only rental income is used to
Speaker 3: qualify for the loan closed thirty to forty five days,
Speaker 3: all right. Thirty day of ownership seasoning very important. So
Speaker 3: if you buy, you know, a home at of foreclosure auction,
Speaker 3: you use hard money, it needed a light fix up.
Speaker 3: You can be in and out of that project thirty days.
Speaker 3: Refinance into an asset based loan, no season and no
Speaker 3: problem as long as the rental income is enough for
Speaker 3: the owner to make at least twenty percent profit. Right DSCR.
Speaker 3: We'll have a class on that. Eyou about DSR. Five
Speaker 3: seven year arms and thirty year terms are available, so
Speaker 3: you can do a five year, seven year justible rate.
Speaker 2: All you can do a thirty year fix.
Speaker 3: Twenty percent down for purchase price for a purchase, seventy
Speaker 3: five percent for a rate in turn refinance, seventy percent
Speaker 3: for a cash out refile. Now this is for one
Speaker 3: to four family properties, so you can with an asset
Speaker 3: based loan if you if you have twenty percent down
Speaker 3: and you want to buy a multifamily, you can put
Speaker 3: twenty percent down if you want to refinance out of
Speaker 3: your hard money. This seventy five percent, right, there is
Speaker 3: the key. Right, you can go a rate in term
Speaker 3: up to seventy five percent LTV. So remember, guys, in
Speaker 3: that example I gave earlier, you purchase the price for
Speaker 3: fIF the property for fifty thousand, You put fifteen thousand
Speaker 3: to rehab into it, so that's sixty five thousand. So
Speaker 3: if we can do a rate in turn refinance, I
Speaker 3: want you guys to put in the comments. If my
Speaker 3: max LTV is seventy five percent, what what amount can
Speaker 3: we go up to?
Speaker 2: What's the max loan amount? Let's see if you guys
Speaker 2: are paying attention. YouTube.
Speaker 3: Let's see if you're paying attention. Put that in the
Speaker 3: comments for me. Right, if you're LTV on the rate
Speaker 3: in turn refinance is seventy five you pay fifty fifteen
Speaker 3: K a rehab. What's your maximum loans amount to be
Speaker 3: up to put in the comments? All right, seventy percent
Speaker 3: cash out refinance. And I guess everybody's slow with the
Speaker 3: math today.
Speaker 2: Yeah number, Yeah, I can't.
Speaker 4: I can't.
Speaker 3: I can't see it on the earners, but in YouTube
Speaker 3: they still is my lasses.
Speaker 4: Yeah, earners is really smart people.
Speaker 5: I just really algebra these formulas.
Speaker 4: No calcul.
Speaker 2: Maybe quick math. You got to know the numbers, kid,
Speaker 2: like Darren Falcon said, you gotta.
Speaker 4: Know your numbers to know your numbers.
Speaker 3: Doesn't know your numbers. How you're going to analyze the deal?
Speaker 4: We go YouTube running up the numbers. Now there were
Speaker 4: going to.
Speaker 2: Finally YouTube, Finally, I don't know if it's a delay
Speaker 2: on my device.
Speaker 4: Definite bro. Shout out to YouTube.
Speaker 2: Shout out to YouTube, but shout out to the earnest.
Speaker 4: Somebody said, I'm.
Speaker 3: All right, so you could close the LLC name investment
Speaker 3: properties only, Like I said, rent ready properties very important.
Speaker 3: You cannot do an asset based loan that needs If
Speaker 3: it needs rehab it won't work.
Speaker 2: It needs to be rent ready. It doesn't have to
Speaker 2: be rented.
Speaker 3: You can use market rents to help qualify for the
Speaker 3: refinance or the purchase. It doesn't have to be rented,
Speaker 3: but it has to be rent ready.
Speaker 2: Right.
Speaker 3: You can do use long term and short term rental
Speaker 3: income to help you qualify as well.
Speaker 5: So Matt with the answer to the question, seventy five thousand.
Speaker 2: Yeah, seventy five thousand, that was the answer.
Speaker 3: Okay, seventy five percent LTV shout out to everybody who
Speaker 3: says seventy five thousand. There was a few on on YouTube,
Speaker 3: but a lot of them was way off. Right.
Speaker 2: I ain't gonna call y'all out by name, but jeez man,
Speaker 2: it's so good, so good.
Speaker 4: That's all good.
Speaker 3: That's why, that's that's why you need a mortgage guy
Speaker 3: or a mortgage girl higher at us.
Speaker 4: Right.
Speaker 3: So, look, this is the most important part of the
Speaker 3: presentation to me, Right, why should you buy and invest?
Speaker 4: Right?
Speaker 3: This is especially in today's time. Right, we have a
Speaker 3: lot going on with the race war and everything. So
Speaker 3: we got to really understand where we came from. And
Speaker 3: while we need to take pride and ownership right. I
Speaker 3: see a lot of people on the internet time I
Speaker 3: never buy a single family home, Never do this, never
Speaker 3: do that. Look, screw everybody, right, we gotta take priduct ownership.
Speaker 3: Own some ship. I don't care if you own primary residents.
Speaker 3: If you just want to rent your whole life, go
Speaker 3: own some investment properties. There's plenty of places where you
Speaker 3: can go for cheap and get some investment properties. But
Speaker 3: we got to take pride in this ownership right. Generational
Speaker 3: wealth in real estate is the number one source of
Speaker 3: generational wealth in America.
Speaker 2: It's proven fact.
Speaker 3: But we've been through gym core laws, red lining, systemic racism.
Speaker 3: We've been through so much, and our ancestor has been
Speaker 3: through so much to get us to the right to
Speaker 3: where we can really go at any hood right, any
Speaker 3: hood and buy right. Money is available for us.
Speaker 2: Right.
Speaker 3: They tried to red line us forty fifty sixty years ago,
Speaker 3: but they can't stop us now. Right, anyway you put it,
Speaker 3: they can't stop us. They're going to try to still
Speaker 3: do the bs. But look, we control this man. I'm
Speaker 3: telling you, we're lending billions and billions.
Speaker 2: Of dollars to people. People.
Speaker 3: Come get your piece of it, because our people fought
Speaker 3: for this, for this right, for us to be sitting
Speaker 3: here today, to be able to talk about this. They
Speaker 3: fought for this. You got to really think about that.
Speaker 3: So when you guys are sitting on the sidelines, just
Speaker 3: think about You got people that came wait before you
Speaker 3: to get us to where we are. And if you
Speaker 3: look at the Black home ownership rate, it increased by
Speaker 3: four percent year over year, but we got so much
Speaker 3: room to grow. Like our peers sixty five percent. You
Speaker 3: know what I'm saying, we have forty four percent. But
Speaker 3: we got a lot of people out here looking rich,
Speaker 3: but a lot of people still ain't owner stuff. We
Speaker 3: got to take pride in this ownership man. Our neighborhoods
Speaker 3: are the opportunity zones. If we don't gentrify our own hoods,
Speaker 3: we can't complain about it. We now have the knowledge,
Speaker 3: the expertise. We have people that look just like us
Speaker 3: that can assist you with home ownership, whether it's investing,
Speaker 3: whether it's behind the primary residents, whatever it is. Right,
Speaker 3: we have these opportunities in front of us, So please
Speaker 3: don't take this for granted. Guys, we owe it to
Speaker 3: our ancestors to be owners. The only way we combat
Speaker 3: racism is if.
Speaker 2: We go out here and own some shit.
Speaker 4: Right.
Speaker 2: We can't change nothing if we're not own this.
Speaker 3: If we're always going to have that consumer mentality and
Speaker 3: not own our stuff, then we're never going to change anything.
Speaker 8: We have.
Speaker 3: The best, like our black dollar is crazy. We got
Speaker 3: to stop putting this into our own neighborhoods and.
Speaker 2: Really going out here to start buying. So that's all
Speaker 2: I got to say.
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