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Speaker 1: Welcome to my show. I'm Rashon McDonald, a host of

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Speaker 1: Money Making Conversations Masterclass, where we encourage people to stop

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Speaker 1: reading other people's success stories and start planning your own.

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Speaker 2: Now.

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Speaker 1: You don't want to miss an episode, so please take

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Speaker 1: a moment right now to follow or subscribe to Money

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Speaker 1: Making Conversations Masterclass. It's free. You can follow me on

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Speaker 1: to your podcast. New Money Making Conversations Masterclass episodes drop daily.

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Speaker 1: I want to keep you on alert because my guests

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Speaker 1: provide tips on how you can uplift your community, improve

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Speaker 1: your financial planning, motivation, or advice on how to be

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Speaker 1: a successful entrepreneur. Now, let's get this podcast started. My

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Speaker 1: guess it's the CEO of Knaka, Bruce Marx. Knaka is

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Speaker 1: changing the game and affordable housing. They're fighting for the

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Speaker 1: American dream. Knacker stands for a neighborhood. Assistance Corporation of

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Speaker 1: America provides affordable mortgages with no down payment, closing costs,

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Speaker 1: lowest fixed interest rates, not gon kept. Turn your Section

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Speaker 1: eight rent check into a moring. Come on that, Bruce's

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Speaker 1: building this for over thirty years I met him. We

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Speaker 1: won't talk about our history together. His objective simple, make

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Speaker 1: home ownership of reality for everyone. Please welcome the money

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Speaker 1: making conversation masterclass. I would call him my good friend,

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Speaker 1: Bruce Marks HOI on.

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Speaker 2: Bruce, I'm greater sean, great to be here.

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Speaker 1: Well, first of all, you know you old to me,

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Speaker 1: but maybe new to a lot of people. So let's

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Speaker 1: talk about who is Bruce Marks. Give a little background

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Speaker 1: on you before we get into Knaka.

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Speaker 2: I started NACCA forty years ago, so I'm a product

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Speaker 2: in the nineteen seventies fighting for economic justice. I have

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Speaker 2: an undergraduate economics. I went to business school at NYU

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Speaker 2: to learn the enemy. I worked at the Federal Reserve

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Speaker 2: Bank Bank of New York. Started with the hotel workers

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Speaker 2: in Boston and we refers to ever negotiate a housing

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Speaker 2: benefit for hotel workers. And it was illegal because it

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Speaker 2: was illegal to do it because it was not a

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Speaker 2: permissive subject of bargaining and the tas out they Act.

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Speaker 2: He did what was illegal. We got that benefit. We

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Speaker 2: got the first. George Bush signed it into law, and

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Speaker 2: we were the first to take on predatory lending on

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Speaker 2: a big scale back in the nineteen eighties, we coined

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Speaker 2: the term, and now you know, forty years later, we

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Speaker 2: have the best mortgage in the country. And you know

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Speaker 2: the history because we've been doing this together for a

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Speaker 2: long time.

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Speaker 1: My friend, well you know the thing now now it's

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Speaker 1: said a long time. Our relationship is roughly over my

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Speaker 1: four years. Four years. He was just an interview and

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Speaker 1: I'm gonna tell y'all, honestly, when he came on my show,

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Speaker 1: I couldn't believe what he was telling me. It was

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Speaker 1: just I was unbelievable when he was talking about turn

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Speaker 1: your Section eight print check into a mortgage payment, talking

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Speaker 1: about you know, lowest fixed interest rate, talking about no

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Speaker 1: down payment, no closing costs. How are you doing this, Bruce?

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Speaker 2: How well? You know? You know one thing is what

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Speaker 2: you said is what we say to everybody. So when

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Speaker 2: I do a workshop and you know, speak in front

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Speaker 2: of a thousand people or you know, whatever we say,

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Speaker 2: we said, how many people when you hear you can

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Speaker 2: get a mortgage with no down payment, no closing costs,

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Speaker 2: no fees at a global market fixed grate and we

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Speaker 2: don't consider your credits for how many people say it

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Speaker 2: sounds too good to be true? What's the scamp and

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Speaker 2: we we say what is to hand? And then we say,

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Speaker 2: if you didn't raise your hand, you're not doing your homebook.

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Speaker 2: Because there's more fraud, there's more abuse. There's more criminals

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Speaker 2: in the real estate and the mortgage industry than any

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Speaker 2: other industry. But you know the fact of matter. Then

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Speaker 2: we ask people how many people have heard about NAKA

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Speaker 2: from family, friends, neighbors, co workers, And virtually everybody raises

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Speaker 2: their hand. Everybody raises their hands. He says, that's the

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Speaker 2: best reflection of this organization that you know, people that

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Speaker 2: you trust, you know are telling you for affordable home ownership.

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Speaker 2: You come to knack it and you know, one of

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Speaker 2: the great one of the greats. I have the best

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Speaker 2: job in this country or shun, I mean I so

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Speaker 2: when I go around and I have my shirt on,

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Speaker 2: I go through the airport or you know, I'm in Washington,

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Speaker 2: d C. And someone's honking their horn and they roll

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Speaker 2: down the window and say, I'm a Knack a homeowner. Wow,

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Speaker 2: my home Wow. And that's the best thing. So you know,

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Speaker 2: so it is the best mortgage. And yes, it came

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Speaker 2: out of the advocacy, but also it came out of

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Speaker 2: doing the operations better than anybody else out there. So

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Speaker 2: you know, there's a perception that if you're an advocacy organization,

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Speaker 2: you can't be a service provider. But but you know,

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Speaker 2: but the Black Panthers, they realized that you could do that.

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Speaker 2: That was important. You know, you have the breakfases, the

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Speaker 2: services that they did, and they're an advocacy organization, right,

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Speaker 2: So we say we do both. We're aggressive on the advocacy,

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Speaker 2: We take on the predatory lenders and we continue to

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Speaker 2: do that, but also we provide state of the art

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Speaker 2: services for massive numbers of people.

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Speaker 1: I'm speaking of Bruce mauv the CEO of NAKA Predatory Lending.

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Speaker 1: I've heard that term. What exactly is that and it

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Speaker 1: seems to be focused more in the minority community, of

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Speaker 1: community of color.

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Speaker 2: Why is that, Well, because that's where they can make

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Speaker 2: their money. That's you know, they they will these lenders.

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Speaker 2: So the definition predatory lending is a mortgage that is

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Speaker 2: structured to fail or unaffordable housing. So if you go

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Speaker 2: back to the housing crisis starting in two thousand and eight,

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Speaker 2: that was because those mortgages are structured to fail. People

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Speaker 2: had an affordable payment, but that payment started in two

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Speaker 2: thousand and eight double or tripled. So if I had

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Speaker 2: a payment one thousand dollars, I could afford that, I'm good.

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Speaker 2: So that went to two thousand dollars or three thousand dollars,

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Speaker 2: that means that that was a mortgage that was inevitably

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Speaker 2: going to be unaffordable.

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Speaker 1: What exactly is the American dream vent is? And how

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Speaker 1: do people do they do have to pay? Is there

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Speaker 1: feet tied to any of the things that you do?

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Speaker 2: No, no, So what we do is that at the advance,

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Speaker 2: they're all free, right, and so you know what we

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Speaker 2: did in what we did in Newer and we worked

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Speaker 2: in partnership with the mayor of Newer Ra Baraka. So

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Speaker 2: we what's called the one dollar program. So if dollar

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Speaker 2: on the one dollar home ownership program one dollar. So

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Speaker 2: if you drive around Newer or any city or in

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Speaker 2: the rural communities, you see vacant lots and you see

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Speaker 2: vacant houses. Yes, a lot of those are owned by

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Speaker 2: by the city, by the town. So we say so

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Speaker 2: instead of them selling him to a developer, we say

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Speaker 2: sell them to a home buyer for one dollar. And

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Speaker 2: then if it's a vacant home, Naka will we will

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Speaker 2: provide the financing to renovate the house. If it's a

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Speaker 2: vacant lot, we'll provide the financing for new construction. But

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Speaker 2: just think how much of that as a game changer.

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Speaker 2: There's no developer, so you're saving fifty percent of the cost,

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Speaker 2: and then you're building for new construction. Modular, beautiful home.

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Speaker 2: These are not manufactured homes. These are not mobile homes.

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Speaker 2: These are the homes that the Elon must the multi

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Speaker 2: billionaires and millionaires, they're the ones that they're building these

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Speaker 2: beautiful module home factory built, yes, but we're being able

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Speaker 2: to build them for eighty five dollars a square foot,

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Speaker 2: So a twelve hundred square foot you hit that a

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Speaker 2: three bedroom to bath, beautiful open kitchen, beautiful living area,

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Speaker 2: and that's about one hundred hundred and ten thousand dollars.

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Speaker 2: Plus you add on, you know, the hookup for the

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Speaker 2: utilities and things like that. You're talking to people being

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Speaker 2: able to buy a house, beautiful house, highest quality, better

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Speaker 2: than stick build for about one hundred and twenty thousand dollars.

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Speaker 2: That's a mortgage payment with NAC is Best in America

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Speaker 2: mortgage for about seven to eight hundred dollars a month. Wow,

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Speaker 2: and that's a game changer. I mean to doing this

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Speaker 2: on scale. So we talk about the New Work event.

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Speaker 2: We did it for five days. We had over twenty

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Speaker 2: five thousand.

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Speaker 1: People, families, I'll tell you families really yeah, yeah.

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Speaker 2: Yes, over twenty five thousand. And it's all word of mouth.

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Speaker 2: There was no marketing. There was no all word of mouth.

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Speaker 2: Because what you do at these events is you get

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Speaker 2: through the whole processes in one day. So you go

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Speaker 2: through a workshop, which is you know, three to four hours, right,

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Speaker 2: then you will Step two you will upload your information

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Speaker 2: because remember it's full document underwriting. Right. Step three you'll

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Speaker 2: meet with a NAKA counselor one on one, either be

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Speaker 2: on site or a video conferencing, but you're gonna be

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Speaker 2: one on one with a counselor. And step four you're

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Speaker 2: gonna meet with a NAKA underwriter to be nacka qualified

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Speaker 2: or your next steps. And when you're nack of qualified,

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Speaker 2: that's basically the free approval. So you get that done

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Speaker 2: in one day in the knack of staff. And we

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Speaker 2: started at eight o'clock in the morning. We don't end

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Speaker 2: till probably after midnight each day because we don't turn

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Speaker 2: anybody away. And it's you know, it's an amazing event,

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Speaker 2: and you know, and we've done this, you know, across

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Speaker 2: the country. But this is a game changer and the

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Speaker 2: best thing is the drum beat, particularly in the minority community.

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Speaker 2: But you know, we're open to everybody. Is for affordable

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Speaker 2: home ownership. You come to NACOS so people come from

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Speaker 2: just newer but they come from the New York metropolitan

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Speaker 2: area and around the country for affordable home ownership. With that,

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Speaker 2: please don't go anywhere.

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Speaker 1: We'll be right back with more Money Making Conversations Masterclass.

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Speaker 1: No need for you to do me a favor right

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Speaker 1: now to follow or subscribe to Money Making Conversation. It's

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Speaker 1: free and you can find it on the iHeartRadio app, Spotify,

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Speaker 1: Apple Podcasts, or wherever you get your podcasts. Please do

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Speaker 1: many that favor, follow us, subscribe money Making Conversations. Welcome

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Speaker 1: back to Money Making Conversation Master Lass with me Rashaun McDonald. Wow,

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Speaker 1: you know this is now how many of those events

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Speaker 1: have you done? Like that? Is that is just is

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Speaker 1: that the launch of the one dollar home Ownership program

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Speaker 1: Because the last time you was on my show, you

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Speaker 1: talked about it and you talked about investing in the

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Speaker 1: community in equity. But the thing that really shines stands

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Speaker 1: out to me when I talk about the Section eight check,

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Speaker 1: turning that Section eight rent payment, because once you get

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Speaker 1: that that's pretty much guaranteed. Turning that into home ownership,

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Speaker 1: how did that hole Because that's a that's a that's

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Speaker 1: a culture, that's a group of people who've been disenfranchised,

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Speaker 1: who basically told them there will be nothing there.

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Speaker 2: This is where they're gonna live.

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Speaker 1: They're gonna live in the hood, they're gonna live, they're

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Speaker 1: gonna be They're gonna be discriminated against because of who

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Speaker 1: they are and what people such a portion of society

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Speaker 1: people say they represent. How did that program get in

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Speaker 1: the place to Section eight?

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Speaker 2: So we're always looking to, you know, help people, you

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Speaker 2: know who need it the most, But think of who's

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Speaker 2: getting a Section eight Housing choice vounty. Virtually everybody works,

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Speaker 2: people are working, but what it is is that those

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Speaker 2: jobs are not respected and they don't pay as much

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Speaker 2: as they should. So what the Section eight does is

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Speaker 2: its subsidized in someone's income, you know, because we should

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Speaker 2: have the fact that if you work in a service sector,

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Speaker 2: you should get paid as probably more than someone who

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Speaker 2: works at a Wall Street because all you're doing Wall

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Speaker 2: Street is you're doing strip sheets and you're calling your

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Speaker 2: friends and your neighbor And we know that's why you know,

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Speaker 2: we see about Harvard and all the ivy leagues. You

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Speaker 2: don't learn much at those places. You just learn to

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Speaker 2: how to socialize and how to connect with wealthy people.

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Speaker 2: But anyway, putting that aside, you so you take the

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Speaker 2: Section eight and the Section eight is really a significant

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Speaker 2: payment that goes to the landlord. So he said, instead

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Speaker 2: of taking that Section eight Housing Choice voucher and paying

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Speaker 2: the landlord, use it to pay the mortgage payment. But

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Speaker 2: the reason why that hasn't worked on home ownership in

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Speaker 2: the past because Naka wasn't there. So with the knack

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Speaker 2: of mortgage, no down payment, no closing costs, no fees

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Speaker 2: at a bluemark fixed ray, you take that, but you

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Speaker 2: take the twenty year term. So that means for virtually

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Speaker 2: the whole period that the Section eight is available for,

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Speaker 2: it pays the mortgage payment. Right, so at the end

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Speaker 2: of that that person who has virtually no assets now

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Speaker 2: has wealth of two hundred thousand, three hundred thousand dollars

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Speaker 2: so what you're doing is the wealth is now going

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Speaker 2: to the person with a Section A, not to the landlord,

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Speaker 2: and that's what we should be about. What you're doing

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Speaker 2: is the wealth is now going to the person with

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Speaker 2: a Section A, not to the landlord. And that's what

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Speaker 2: we should be about. And you know, the best workshop

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Speaker 2: that I have ever done, RESHN was in Newer put

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Speaker 2: out the word to the sixty five hundred Section eight

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Speaker 2: recipients in Newer we had over one thousand people come.

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Speaker 2: We had a workshop from nine to one, and from

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Speaker 2: two to six over one thousand people come because they

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Speaker 2: want home ownership. And so the stereotype of someone with

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Speaker 2: a Section eight or housing to its voucher is just

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Speaker 2: it's just wrong, and it's sometimes a racist stereotype. And

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Speaker 2: we got to be to debunk that and to provide

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Speaker 2: opportunities because if I have a Section eight and without

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Speaker 2: knack of why would I give up my Section eight

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Speaker 2: where after fifteen years I would be stuck with the

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Speaker 2: payments for the next fifteen years. With KNAKA, we've eliminated

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Speaker 2: that financial cliff. So it makes economic sense for that

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Speaker 2: person with Section eight to be a homewner, and it

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Speaker 2: works for the Housing Authority because then they can recycle

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Speaker 2: that that Resection eight and you're generating wealth and reducing

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Speaker 2: the wealth racial disparity gap.

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Speaker 1: You know, there's a lot of numbers you're talking about.

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Speaker 1: You know, say twenty five thousand basically families showed up

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Speaker 1: in New York. Then a thousand people out of the

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Speaker 1: sixty five hundred people who owned the Section eight payment plan,

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Speaker 1: a thousand showed up. How is your staff? This is

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Speaker 1: just Newark? Now, this is just New York. Yeah, and

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Speaker 1: you're a nationwide conglomerate. Our structure, you're in different cities

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Speaker 1: because I know you're based in the Northeast. Are you

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Speaker 1: throughout the country?

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Speaker 2: Yeah, so we are in all fifty states. But when

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Speaker 2: we did that Newark event, we mobilize all of our staff.

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Speaker 2: So we'll have about one hundred and fifty staff on site,

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Speaker 2: but then there's over five hundred that are around the

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Speaker 2: country and connect them to our computers and so they

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Speaker 2: can do the video counseling. We're going to help homeowners

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Speaker 2: because through NAKA, if you can get financing if you're

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Speaker 2: a homeowner, to improve your home, and then the fact

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Speaker 2: who is the best person to protect their home and

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Speaker 2: their neighborhood. It's a homeowner, so it's a safety issue,

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Speaker 2: it's an anti crime issue. So that's what you have

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Speaker 2: to do. But you got to do it on scale,

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Speaker 2: and that's what we're doing. But you know, this is

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Speaker 2: a game changer, as you know, because we're going against

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Speaker 2: the for profits and sometimes the nonprofit entities that say

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Speaker 2: they're making you know, money on affordable homeownership. We're saying,

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Speaker 2: let's do this at cost. So you shouldn't have to

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Speaker 2: pay two or three hundred thousand dollars to purchase a

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Speaker 2: home in Atlanta, you know, and the city of Atlanta

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Speaker 2: shouldn't be subsidizing these developers to do that whatever. We're

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Speaker 2: talking about being able to so in to buy a

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Speaker 2: home for one hundred and twenty thousand dollars with no

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Speaker 2: government subsidies, none to do this, and then when you

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Speaker 2: add in any kind of subsidy down paying as systems,

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Speaker 2: it's even more affordable. Wow, everybody can have a home

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Speaker 2: virtually for less maybe even half what they're paying in

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Speaker 2: rent with.

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Speaker 1: As we close out the interview, one thing that I

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Speaker 1: know that it says that you know, we talked about

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Speaker 1: the achieved, the dream. We talk about predator lending repairs

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Speaker 1: through NAKA. Can renovate your properties that comes through NAPKA.

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Speaker 1: We just talked about focusing on the rural community and

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Speaker 1: in doing your sessions, you teach them about being a homeowner.

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Speaker 1: But the responsibilities of being a homeowner, you know, the care,

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Speaker 1: the up keep getting in the property and not depressing

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Speaker 1: the value because you don't take care of it, but

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Speaker 1: upgrading the value because you are taking care of it.

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Speaker 1: And one thing for sure, I wanted to talk about

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Speaker 1: not relying on your credit score. How do you get

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Speaker 1: around that because.

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Speaker 2: The fact of the matter is we should you know,

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Speaker 2: during the mortgage crisis, you know, I thought in a

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Speaker 2: romantic idea that because so many people watch their homes

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Speaker 2: with a high credit score, that you know, people would

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Speaker 2: look at it in a different way. So we do

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Speaker 2: character based lending, never looking at so much credits, for

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Speaker 2: looking at the payments that they control over the last

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Speaker 2: focusing on the last twelve months. So for example, if

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Speaker 2: someone has unaffordable medical bills, that's not a reflection whether

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Speaker 2: they're ready for home ownership, just as that we have

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Speaker 2: a dysfunctional, unaffordable healthcare system, so you look at that.

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Speaker 2: So of what they control. But then you do the

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Speaker 2: financial management counselor, and when you do the budget, you're

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Speaker 2: looking at the expenses that people have actually incurred in

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Speaker 2: the past and say, how can I improve my financial management?

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Speaker 2: And results speak for themselves. With over seventy five thousand

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Speaker 2: knack of homeowners we have a foreclosure rate was zero

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Speaker 2: point zero zero zero one two. Wow.

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Speaker 1: Again I'm talking to Bruce Marks, CEO of NAKA Affordable

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Speaker 1: home Ownership was in reach. That's what he did in

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Speaker 1: Reach now because he has a planning place you know,

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Speaker 1: lowers fixed rates on interest, no down payment, closing costs.

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Speaker 1: More importantly, building equity not only in you your family,

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Speaker 1: but also in the community. Bruce, as always thank you

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Speaker 1: for coming on my show. More importantly, just keep doing

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Speaker 1: what you're doing.

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Speaker 2: Brother. Thank you, Bruce, Thank you. And if I can

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Speaker 2: say you know anybody you know, go to NACA dot

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Speaker 2: com at ac A dot com and you know we'll

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Speaker 2: look forward to uh taking it to the next level.

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Speaker 1: Thank you for listening to this episode. No need for

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Speaker 1: you to do me a favor right now to follow

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