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Speaker 3: So real estate is and will be probably one always
Speaker 3: one of the greatest investment tools out there, especially because
Speaker 3: of the tax benefits that come with it. And you
Speaker 3: have to understand the tax play behind buying that much
Speaker 3: real estate as well. So these people are rich and
Speaker 3: wealthy and they're trying to hedge their taxes and minimize
Speaker 3: it too. So what's the best player real estate, brick
Speaker 3: and mortar. Because of things like depreciation, cost segregation, there's
Speaker 3: a lot of different things that you can do to
Speaker 3: offset your wins. If you got huge capital gains, you
Speaker 3: can put that in ten thirty one changes, buy real
Speaker 3: estate so you defern your taxes down the road. Right.
Speaker 3: Real estate gives you all these plays that the wealthy
Speaker 3: use at scale to continue to grow their wealth. Whereas
Speaker 3: with us in our community, we like to listen to
Speaker 3: everybody else, but instead of following the money.
Speaker 4: My graduates from my school being forced back drops drop.
Speaker 2: Mike, drop back drop.
Speaker 5: All right, guys, welcome back. We got a stranger to
Speaker 5: the program. Stranger somebody that you might not have ever
Speaker 5: seen before, Matthew Garland.
Speaker 3: And at all that's five eight seven and LS snow
Speaker 3: five eight seven zero zero. But it's all good. Yeah.
Speaker 3: The mortgage guy, The mortgage guy.
Speaker 5: Matthew Garland, CEO of the Garland Group. UH, star of
Speaker 5: Ransom Gyms see UH international speaker.
Speaker 3: International speaker. You gotta add that to the resume.
Speaker 6: Of course, damn sure to be having gyms.
Speaker 3: You know, I got a let in my bio now
Speaker 3: international speaker.
Speaker 5: True, Okay, that's a fact. Yeah, real estate experts. So
Speaker 5: obviously you guys are familiar with man if you're familiar
Speaker 5: with Earn your Leisure. He's been on a variety of
Speaker 5: different times, Market, Monday's invest Fest, you name it. He's
Speaker 5: always around providing great insight when it comes to real estate.
Speaker 5: And we did two episodes so far, and you know,
Speaker 5: whenever it is time, I feel like it's time to
Speaker 5: revisit this real estate conversation. So like this at the
Speaker 5: beginning of the year twenty twenty three was a great
Speaker 5: time to have the third trilogy three p. There's so
Speaker 5: much stuff that we haven't talked about before, and there's
Speaker 5: so much stuff that has changed a lot of people.
Speaker 5: Are you know, nervous economic environment that we're in, interest
Speaker 5: rates and recession, different things of that nature.
Speaker 6: So and on a personal level, during this time, we've
Speaker 6: had a relationship of you helping us with our properties. Absolutely,
Speaker 6: So that's even something that we're going to add to
Speaker 6: this conversation too.
Speaker 5: I love it, Yeah, I love it so you know,
Speaker 5: it's back to the blueprint man of education. Heavy gyms
Speaker 5: try to provide as much value as possible and help
Speaker 5: some people out.
Speaker 3: Man.
Speaker 5: So first formal, thanks for coming, appreciate.
Speaker 3: It, love fatus. It's a three P. I appreciate the opportunity.
Speaker 3: As always. It's always good to be back with my guys.
Speaker 3: Let's make it happen. Let's do it. Let's do it.
Speaker 5: So all right, all right, let's not even waste any time.
Speaker 5: Let's get into this.
Speaker 3: I think it was the first time I wore a
Speaker 3: suit on the shop on the show.
Speaker 6: This is the first time you had a red sworst
Speaker 6: shirt on an episode twelve, the Gold episode and your
Speaker 6: second appearance you had I think you might have a
Speaker 6: flannel shirt, had a flannel joint.
Speaker 3: Yeah, and we.
Speaker 6: Had just moved downstairs to kind of shoot, so that
Speaker 6: was that was cool too.
Speaker 3: Yeah, okay, three different flavors, three different episodes. I liked.
Speaker 3: I like the way this is gone.
Speaker 5: Let's talk about something that we never spoke about before,
Speaker 5: which is v a loans copy for veterans. There's a
Speaker 5: lot of veterans that watch us. We actually have an
Speaker 5: Infinity groupment Eyo University for veterans, whether it's Navy, h army, uh,
Speaker 5: you name it, the whole situation. Right, A lot of
Speaker 5: people have served the country and it's benefits with that.
Speaker 5: But and even some alumni. Aristotle is a veteran. Yeah,
Speaker 5: we got a few other veterans, but a lot of
Speaker 5: times that they're not educated on what they actually have.
Speaker 5: The credit credit credit.
Speaker 3: Definitely, what's up with this VA loan situation. First of all,
Speaker 3: thank you guys for your service. We appreciate your sacrifice
Speaker 3: and everything you do for us in our country to
Speaker 3: keep us safe here in America. So I don't want
Speaker 3: that to My father is a veteran also, so it's
Speaker 3: nandad in my heart. If you've been in my studio
Speaker 3: or see me on my content, I have his flag.
Speaker 3: When he passed away, they gave me the flag, so
Speaker 3: I have that kind of like right next to me
Speaker 3: when I shoot all my content. So, first of all,
Speaker 3: shout out to all the veterans. But a VA loan
Speaker 3: is one of probably the best loans that's available out
Speaker 3: there in the marketplace. It's an underutilized product. I don't
Speaker 3: think a lot of people speak about VA loans, and
Speaker 3: that's why I'm happy that we're having this conversation. So
Speaker 3: let's first start off with the credit score requirements. Most
Speaker 3: lenders will have a minimum credit score of a five
Speaker 3: to eighty to qualify for a VA loan. It's one
Speaker 3: hundred percent financing no PMI. PMI is private mortgage insurance.
Speaker 3: So typically when you put down less than twenty percent
Speaker 3: down on a property, you have to pay the PMI,
Speaker 3: which is insurance that's insuring the bank, not you, the
Speaker 3: barwer in case you default on the mortgage, that that
Speaker 3: loan is insured and the bank can basically get their
Speaker 3: money back from the insurance company. Right. So, VA loans
Speaker 3: have no PMI. It does have a fund and fee
Speaker 3: when you do a VA loan, which can be on
Speaker 3: average around two percent just depending on your status. If
Speaker 3: you are one hundred percent disability then disabled veteran, then
Speaker 3: you don't pay a fund and fee, But typically most
Speaker 3: VA loans that we're doing come with around a two
Speaker 3: percent fund and fee which gets financed into the loan. Now,
Speaker 3: with a VA loan, you can purchase a primary residence.
Speaker 3: It's not for investment properties. I just want to be
Speaker 3: clear on that it's for primary residents. You can buy
Speaker 3: condo VA approved. If you could buy condo that is
Speaker 3: VA approved. You could buy one family, two family, three family,
Speaker 3: four family properties. They have to be owner occupied multifamilies.
Speaker 3: The requirement to for VA to live in the property
Speaker 3: is for one year, just like an f h A,
Speaker 3: so you have to live in that property for one year.
Speaker 3: But the main thing, there's a couple of things I
Speaker 3: want to discuss with a VA that's very important. Number
Speaker 3: one is your certificate of eligibility your COOE. So to
Speaker 3: determine how much of a loan that you can get
Speaker 3: from a VA, you have to provide the lender or
Speaker 3: the lender can pull what's called the COE, your certificate
Speaker 3: or eligibility, and it will tell you exactly how much
Speaker 3: entitlement that you have from the VA. To determine what's
Speaker 3: the maximum, the possible maximum loan amount that you can
Speaker 3: get financed for using a VA loan. Now, unlike well,
Speaker 3: VA loans don't have a minimum a maximum loan amount requirement.
Speaker 3: So if you go an FHA loan or a conventional mortgage,
Speaker 3: you have a maximum loan amount. So let's just keep
Speaker 3: in this so in New York, I'll just keep in
Speaker 3: New York so a simple what a one family right now,
Speaker 3: because this is considered a high cost area, you can
Speaker 3: get an FHA or conventional mortgage million dollars on a
Speaker 3: single family property, a four family property, you can go
Speaker 3: up to like two million, a little bit under two
Speaker 3: point one million somewhere around there. So the loan limits
Speaker 3: increased in twenty twenty three, which is great because home
Speaker 3: prices have been appreciated. But with VA loan there's technically
Speaker 3: no minimum or no maximum loan amount for the VA.
Speaker 3: It's all on how much eligibility you have and obviously
Speaker 3: how much you can qualify for with your debt to
Speaker 3: income ratio and your residual income, which I'm gonna go
Speaker 3: into in a bit. So that's another great thing about
Speaker 3: a VA loan. You can buy a single family home
Speaker 3: one point five million dollars and get one hundred percent
Speaker 3: finance and on it with a low interest rate with
Speaker 3: no PMI.
Speaker 6: Let's say you do do that, and you do a
Speaker 6: loan for one point five is there a millionaire tax
Speaker 6: that comes along with that, like.
Speaker 3: A Manchi tax man tax? Right? So in New York,
Speaker 3: if you purchasing a property over a million dollars, you
Speaker 3: have mansion tax, which you guys happily had to pay, right,
Speaker 3: mansion tax anybody but New York. That's common, right, A
Speaker 3: million dollar house in New York is kind of like
Speaker 3: the normal. It's like an everyday house. New York is
Speaker 3: very expensive, but yes, you have to pay a man
Speaker 3: attach other states it varies, you may not have to pay.
Speaker 3: But I would say check which you know, your realtor,
Speaker 3: or your local lend or whoever you work and with,
Speaker 3: to see if you have to pay any type of
Speaker 3: mansion tax.
Speaker 6: Is there like a percentage that the standard mansion tax.
Speaker 3: Is New York is one percent one percent, So a
Speaker 3: million dollar sales price, you're going to pay ten thousand
Speaker 3: dollars or in closing costs on top of all the
Speaker 3: other fees that come with, you know, buying a property.
Speaker 3: So if you're buying over a million dollars, it can
Speaker 3: definitely get more expensive, especially in this state like New York.
Speaker 3: So that's why you have you can't be house rich
Speaker 3: and cash boy. You have to have money when you
Speaker 3: go into that ballpark, right, But with a VA loan again,
Speaker 3: you can go up to a million and a half.
Speaker 3: You can go one point seven million. I've done loans
Speaker 3: myself one three, one four when the loan amounts were
Speaker 3: a lot less for conventional and FHA. So that's a
Speaker 3: huge benefit for that veteran who can qualify for that
Speaker 3: that large of a house. Right, And that's nationwide, so
Speaker 3: it's not not determined on region where you live. If
Speaker 3: you live in Kentucky and your veteran, you can get
Speaker 3: approved for a million dollar loan with the VA if
Speaker 3: you have the eligibility to do so, right, So that's
Speaker 3: number one, right, But the most important thing I want
Speaker 3: to touch on when it comes to a VA loan
Speaker 3: because the most portant ingredient on any loan is the
Speaker 3: debt to income ratio your DTI. Right, But what VA
Speaker 3: you have what's called residual income, and that residual income
Speaker 3: calculates basically, how much money do you have left over
Speaker 3: after all of your expenses? Can the veteran truly afford
Speaker 3: this house? And they taking your household thoughts. Right, So
Speaker 3: let's just say, for example, you have a family of four,
Speaker 3: right the VA, and if you're living in the Northeast,
Speaker 3: they want to see after you're withholding has come out,
Speaker 3: so they're looking at your gross income and they're going
Speaker 3: to mind us out. You're withholdings like your fighter, your
Speaker 3: social Security, all the taxes, you paying, your W two wages.
Speaker 3: Then they're going to take the mortgage payment minus that
Speaker 3: out of it. Then they're going to take your utilities
Speaker 3: on the home right. And if you don't know what
Speaker 3: the utilities are, lenders will use a calculation. It's usually
Speaker 3: the square footage of the home times point one four percent,
Speaker 3: and so if it's a two thousand square foot home
Speaker 3: times point one four percent, that comes into like two
Speaker 3: hundred and eighty dollars. That will guestimate what your utilities are.
Speaker 3: We looking at childcare, we're looking at you know, student loans,
Speaker 3: car loans. Everything goes into this calculation. And then at
Speaker 3: the end of the day, after all of that is spent,
Speaker 3: do you have at least one thousand dollars a month
Speaker 3: left over? And if you do, you qualify right, and
Speaker 3: if you don't, you don't qualify. So, for example, I've
Speaker 3: seen Dell's where you might get an aus aprise, which
Speaker 3: is the automated underwriting system that all lenders use that says, okay,
Speaker 3: your DTI is X, it works, But then you might
Speaker 3: not meet the residual income qualifications, and that can decline
Speaker 3: your loan. So it's very important that veterans understand it,
Speaker 3: and anyone, any real estate professional, any loan officer who's
Speaker 3: working with VA clients, they understand the residual income calculation
Speaker 3: because that right there can make or break your deal.
Speaker 3: So what I try to advise any veteran or anybody
Speaker 3: who's looking to buy a house, you not only just
Speaker 3: want to get pre approved, you want to make sure
Speaker 3: that the lender that you're working with has the ability
Speaker 3: to submit your loan into underwriting. Why you're in that
Speaker 3: pre approval status so that way an underwriter can reveal
Speaker 3: your loan and get you what's called a pre underwriting
Speaker 3: commitment or loan commitment while you're still in that home
Speaker 3: buying stage. Because now you know it's been reviewed by
Speaker 3: an underwriter. You know your commitment letter is legit. It's
Speaker 3: not just some loan officer sending your life and saying, hey,
Speaker 3: your pray approval for X, Y and Z. Go out
Speaker 3: in the house shop. And then when you get a
Speaker 3: house and then you get in the contract, you do
Speaker 3: all these dispections, pay for appraisal, and then you go
Speaker 3: to underwrite and you get the climb because they didn't
Speaker 3: do the calculations properly from the very beginning. It happens
Speaker 3: all the time, so that residual income is extremely important
Speaker 3: when it comes to VA loans for all veterans out there,
Speaker 3: for all professionals who are originating these loans. And that's
Speaker 3: a lengthy process. Yeah, a lot. It's a lot of information,
Speaker 3: a lot, a lot of tape, a lot of work
Speaker 3: that has to be fouled.
Speaker 6: You can correct me if I'm wrong, But VA loans
Speaker 6: and one of the reasons that people use it and
Speaker 6: it's a great loan product, is that there's no down payment.
Speaker 3: Correct, it's one hundred percent financing for a VA loan. Now,
Speaker 3: typically with a VA loan, it's if you are buying
Speaker 3: the house and you're the veteran, you can get up
Speaker 3: one hundred percent finance. And another thing also, you can
Speaker 3: use the VA loan more than once, so it's not
Speaker 3: like FAHA where you have to refinance out of the
Speaker 3: FA to use the FAH loan. Again, right, with a
Speaker 3: VA loan, if you have enough eligibility on your COOE,
Speaker 3: you can buy another property. It just has to be
Speaker 3: your primary residence. Now on that second property that you purchase,
Speaker 3: you're not you're probably going to have to put some
Speaker 3: sort of down payment because you use a lot of
Speaker 3: your entitlement already to buy your first home. But necessarily
Speaker 3: you don't have to refinance out of that initial property
Speaker 3: that you purchase to use your VA loan again. So
Speaker 3: it gives you the ability. I've seen people that have
Speaker 3: three or four VA loans all still active because they
Speaker 3: didn't burn up their eligibility by going out and buying
Speaker 3: a million dollar million one point five million dollar house
Speaker 3: the first go around. They probably bought a two three
Speaker 3: hundred thousand dollars house, started slow and work their way up,
Speaker 3: and they still have had enough eligibility to use their
Speaker 3: VA over and over and over.
Speaker 5: A loan is they give you a certain amount of
Speaker 5: money correctly.
Speaker 3: Depending on your status of how you got discharged.
Speaker 5: Depending on how long you work.
Speaker 3: Exactly.
Speaker 5: So it's like you might have a million dollars.
Speaker 3: It's not that it's like and I'm not even going
Speaker 3: to try to get into that. Go get the home
Speaker 3: Boys Blueprint. It's a part of E Y L University
Speaker 3: Volume one. We kind of break all the rest. Great
Speaker 3: resource you know, it's a great resource that kind of
Speaker 3: breaks down the calculations and everything like that. But essentially, yes,
Speaker 3: the certificate eligibility will tell Linda, if this is your
Speaker 3: first time using it, if you have used it multiple times,
Speaker 3: how much of your eligibility is available, and then there's
Speaker 3: a whole calculation that we have to do on our
Speaker 3: and to determine exactly how much of a loan that
Speaker 3: we can get you approved for. So it's a process
Speaker 3: on our end.
Speaker 6: If you have one, then you obviously you get the
Speaker 6: additional properties. Are they looked at as investment properties because
Speaker 6: I know you said you can't use as rental.
Speaker 2: It's a primary residence, all of them, all four of them.
Speaker 3: So when you buy the first one, you can rent
Speaker 3: out after you meet your one year required and you
Speaker 3: can go buy a new primary residence and now turn
Speaker 3: that first property into a rental. So it's essentially your
Speaker 3: house hacking, but you're just doing it the not quote
Speaker 3: unquote non traditional way, and you're using the VA loan. Again,
Speaker 3: even if you have to put down a down payment
Speaker 3: five percent, you have no PMI, you're going to have
Speaker 3: a low interest rate, right, So it's still a huge
Speaker 3: benefit for someone who's looking to use as much of
Speaker 3: the VA as possible, because look, they earned the benefits,
Speaker 3: why not use it, use it as many times as
Speaker 3: you can. So some people might start off with the
Speaker 3: start at home two hundred, two hundred and fifty thousand,
Speaker 3: whatever it is, and if they understand how to run
Speaker 3: the play, they'll continue to use their VA, move out
Speaker 3: of one, living it for a year, move out another one,
Speaker 3: and keep going to keep going. So if you do
Speaker 3: it the right way, you can you can buy a
Speaker 3: couple of properties using your VA loan and having all
Speaker 3: those VA loans still open, not having a refinance out
Speaker 3: of them.
Speaker 5: All right, Well, that's good to know a lot of
Speaker 5: information when it comes to the VA loan situation.
Speaker 3: So let's talk about how I'm gonna cut you off.
Speaker 3: I said that in your voice too, don't mean to
Speaker 3: cut right. So let's be since I've said house hack,
Speaker 3: and I want to talk about multifamilies real quick because
Speaker 3: this is very important.
Speaker 6: Before that, don't mean to come you off. I mean,
Speaker 6: I don't want to interrupt your wisdom. But like that one,
Speaker 6: are there disadvantages?
Speaker 3: Right?
Speaker 6: So those are some of the advantager And I know
Speaker 6: people have said like, does every lender off of VA loans? Like,
Speaker 6: are there things that we did if they're veterans that
Speaker 6: they should look out for good question.
Speaker 3: So not all lenders and loan officers are built the same.
Speaker 3: Just because someone offers a loan product doesn't mean they
Speaker 3: know how to close that loan product. Doesn't mean they're
Speaker 3: well versed in that loan product. So for the majority, yes,
Speaker 3: all lenders will offer a VA loan. And I want
Speaker 3: people to understand this right, there's a lot of lenders
Speaker 3: out there that will have the name, their name of
Speaker 3: their company. It will sound military issue. That doesn't mean
Speaker 3: the VA is endorsing them. So a lot of people
Speaker 3: will go to these lenders because it sounds like it's
Speaker 3: military and it's a military mortgage company or something like
Speaker 3: that that is VA endorsed, and it's not. The VA
Speaker 3: doesn't endorse one particular lender over another. That's just a
Speaker 3: marketing tactic. And you have to be careful, especially your veterans,
Speaker 3: because a lot of times these companies are offering you
Speaker 3: higher fees and higher rates than someone like myself or
Speaker 3: a mortgage broker, a mortgage banker, So you got to
Speaker 3: be They may not have military slang in their company name,
Speaker 3: but doesn't mean they can't get you a better deal.
Speaker 3: So I want people to understand when you when you're
Speaker 3: shopping for who's going to do your VA loan, don't
Speaker 3: just go with the company or the mortgage company just
Speaker 3: because they have some sort of military affiliation in their name,
Speaker 3: because it's all a marketing tactic, right. So that's number
Speaker 3: one when it comes to people offering V loans. But again,
Speaker 3: not all in is a built the same. Not everybody
Speaker 3: unders stands VIA loans. These are easy loans if you
Speaker 3: understand what you're doing, but they can become very difficult
Speaker 3: if you don't. And again, the residual income is one
Speaker 3: of the big things that I see people mess up
Speaker 3: on because they never heard of it before and they
Speaker 3: don't know how to calculate it. But for multifamilies on
Speaker 3: house hacking, you can't. If you're a first time home
Speaker 3: buyer and you're buying a multi family property and you're
Speaker 3: looking to use the rental income to qualify, Unfortunately, the
Speaker 3: VA doesn't allow that you have. In order to use
Speaker 3: rental income to help you qualify for a multifamily using
Speaker 3: a VA loan, you have to document that you have
Speaker 3: at least twelve months experience of property management or owning
Speaker 3: a multi family property. So if you don't work in
Speaker 3: the property management field, if you don't have a multifamily
Speaker 3: currently and it's filed on your taxes and we can
Speaker 3: see that you've owned it for a year and you're
Speaker 3: collecting rent, then unfortunately, you will not be able to
Speaker 3: use the rental income to qualify you. Now, if you
Speaker 3: do have that experience, then the VA will require at
Speaker 3: least six months of reserves off your mortgage payments. So
Speaker 3: if your mortgage payment is one thousand dollars a month,
Speaker 3: we're going to require at least six thousand dollars in
Speaker 3: your bank account post closing, after you pay your closing
Speaker 3: costs left over. So I want people to understand using
Speaker 3: a VA loan to house hack and buy multifamilies, if
Speaker 3: you're dependent on the rental income to qualify you can
Speaker 3: you can be up for a root awakening. You will
Speaker 3: have to qualify using your own income to purchase that
Speaker 3: multi family all right.
Speaker 5: So let's get another topic in construction loans. This is
Speaker 5: something that you know, me and Troy's going through right
Speaker 5: now with find a Home and This is a lot
Speaker 5: of time people don't even realize that there's different loans
Speaker 5: that you have to take. Even when you're getting in
Speaker 5: a mortgage, all mortgages aren't the same, correct, So it's
Speaker 5: like a construction loan when you're actually building a house
Speaker 5: from the ground up. Correct, The financing is different, very
Speaker 5: it's very different, and it's a lot more strenuous. Well,
Speaker 5: I'll let you talk about it, but a lot of
Speaker 5: I don't think people are They wouldn't know that unless
Speaker 5: they've actually done it before. So building a house, you know,
Speaker 5: it can have some advantages, but you have to know
Speaker 5: what you're getting yourself into before you before you decide
Speaker 5: if it's gonna be a good decision or not. Absolutely,
Speaker 5: So what's to deal with the construction loan situation?
Speaker 3: Man construction loans.
Speaker 5: And once again construction for not construction like you're going
Speaker 5: to build an apartment building Like this is if you
Speaker 5: buy a plot of land correct and you just want
Speaker 5: to build your house as opposed to building a house
Speaker 5: buying a house that's already built.
Speaker 3: Correct. So you know, typically, like you said, you buy,
Speaker 3: you get a piece of land, and now you need
Speaker 3: funding for it. So there's two ways you can go
Speaker 3: by it. If you're the consumer, if you're the home buyer,
Speaker 3: you can buy the land or cash, which I would
Speaker 3: recommend I'm buying whether it's cash or you use a
Speaker 3: credit card, whatever means you find to buy that piece
Speaker 3: of land, because I feel like this is the easiest
Speaker 3: way to do a construction loan. And then now you
Speaker 3: go to the bank to get a construction the permanent loan,
Speaker 3: where now that construction permanent loan is basically it's treated
Speaker 3: like a refinance now because since you already own the property,
Speaker 3: so there's no rush right to get your plans and
Speaker 3: your permits and things of that nature. Because with most
Speaker 3: construction loans, when you're talking primary residences, which this conversation
Speaker 3: is about, the bank is only going to give you
Speaker 3: a construction time of nine to twelve months. So we
Speaker 3: all know permits can take six months. So if you
Speaker 3: do a one time closed construction loan, which is you're
Speaker 3: buying the land and trying to get the construction loans simultaneously,
Speaker 3: and you're using the bank for the finance and of
Speaker 3: the land as well, that's when I see problems arise
Speaker 3: because you're not technically the owner of that property. So
Speaker 3: you can't go out and submit architectural plans to the
Speaker 3: town that you're buying a property in until you close,
Speaker 3: because you technically don't own the property unless the seller
Speaker 3: of the property is willing to submit the plans on
Speaker 3: your behalf, which in most cases they're not going to
Speaker 3: do that, right, So it's much easier for you to
Speaker 3: acquire the land on your own then use the bank
Speaker 3: for the construction loan to build your home. And the
Speaker 3: reason being again is because architectural plans can take depending
Speaker 3: on the scope of your work, that can take two
Speaker 3: to four months, depending on how busy your architect is
Speaker 3: and how efficient they are, And when you get plans
Speaker 3: you're going to go back and forth to adjust things
Speaker 3: of that nature. So if you're doing a one time
Speaker 3: close to construction, that means you're in contract and you
Speaker 3: have a time clock already to close with the seller, right.
Speaker 3: They don't want to sit there and wait four or
Speaker 3: five months for you to get your plans together before
Speaker 3: you close, So again that can cause a delay and
Speaker 3: it can cause some between you and the seller. Now,
Speaker 3: if you've got an architect who's on it, it can
Speaker 3: get you plans in thirty days. Cool, you can do
Speaker 3: the one time close. But again another con of that
Speaker 3: is after closing, now you have to submit those plans
Speaker 3: to the town to get approval and depending on the county,
Speaker 3: which it has hit a miss, right, hit a miss
Speaker 3: for plans. I mean New York is kind of like,
Speaker 3: I don't want to say nothing negative because you know, but.
Speaker 2: It kind it kind of gets interest.
Speaker 3: Yeah, it gets kind of it gets kind of crazy,
Speaker 3: and it could be a lengthy process. So now, if
Speaker 3: you're in a tome clock to build and the lenders
Speaker 3: only give you nine to twelve months, and some lenders
Speaker 3: will give you an extension of an extra two to
Speaker 3: three months. On top of that, you done wasted half
Speaker 3: of your time just waiting on the plans to get
Speaker 3: approved by the town. So my recommendation for construction loans
Speaker 3: and anyone who's looking to build their first home or
Speaker 3: their dream home, acquire the land first. Acquire the land first,
Speaker 3: have a dope ass architect who understands the urgency of
Speaker 3: what you're looking to do, get your plans and everything
Speaker 3: drawn up because you already have the home now or
Speaker 3: the land, so you don't have to rush. And now,
Speaker 3: once you have your plans submitted, then applied for your
Speaker 3: construction loan, because now it's more like a refinance. There's
Speaker 3: no time clock, there's no sellers. You can take four
Speaker 3: months to close, it doesn't matter. And once your plans
Speaker 3: get approved, then close on your construction loan, then boom,
Speaker 3: you can start your construction pretty much immediately.
Speaker 6: Yeah, so let's talk about the other way when you
Speaker 6: have a lender that will do both give you construction,
Speaker 6: the construction loan for building it, and then actually having
Speaker 6: the house built itself. Right, So there's two pieces you're
Speaker 6: paying for both. Now, I think the misconception this is
Speaker 6: something that we kind of learned through the process.
Speaker 3: Like you get that time frame to.
Speaker 6: Build, and you know you do that with your building
Speaker 6: and they'll say it's between six to twelve months, we
Speaker 6: can get this house built, correct, Right, But you're at
Speaker 6: the mercy of the town, correct, right, because and the
Speaker 6: builder and the builder and the engineers and the architects.
Speaker 3: Correct.
Speaker 6: But your paying for a house that you may not
Speaker 6: even live in, right because sometimes the building process may
Speaker 6: take sixteen months, absolutely, and so like for a year
Speaker 6: you might be paying interest, but after that twelve months,
Speaker 6: now you're going to be paying that full loan. So yeah,
Speaker 6: talk about that in the apportances, that having residual income
Speaker 6: in situations like this.
Speaker 3: Yeah, so when you get a construction loan, first, it's
Speaker 3: an interest. During the construction period, it's interest only payments. So,
Speaker 3: like you said, you're going to be paying a mortgage payment,
Speaker 3: you have to pay your property taxes, you have to
Speaker 3: pay your homeowners insurance and builders insurance. You're going to
Speaker 3: need buildings insurance as well to protect yourself on that end.
Speaker 3: But yeah, you're going to have a payment. So if
Speaker 3: it drags out, you know, and the lender says, okay,
Speaker 3: now it's trying to convert from the construction to permanent.
Speaker 3: Now you're going to be paying the mortgage payment. That's
Speaker 3: going to be hired because now it's principal and interest
Speaker 3: that's going to be included into your mortgage payment. So
Speaker 3: your first twelve sixteen months is all going to be
Speaker 3: interest only. And that's why it's very important if you're
Speaker 3: going to take the leap of faith and build your
Speaker 3: own home, especially if you're going to act as your
Speaker 3: project manager. You're hiring your GC, you're hiring your builder,
Speaker 3: you're hiring all these folks. And you're not buying directly
Speaker 3: from a builder, right, you're hiring everybody. You have to
Speaker 3: make sure you know what you're doing and you're hiring
Speaker 3: the right folks, because folks will sit here and overpromise
Speaker 3: and underdeliver you and kill your entire timeline, which ultimately
Speaker 3: is going to cost you more money as the homeowner.
Speaker 3: So it's very important that you make sure you vet
Speaker 3: out your team because your team has to understand the
Speaker 3: urgency of you getting it done the timeline, and they
Speaker 3: have to understand how they get paid as well, because
Speaker 3: there's a process of how they get paid. So when
Speaker 3: you close on a construction loan, the lender is only
Speaker 3: going to give you ten percent or max fifty thousand
Speaker 3: within ten ten days fourteen days after closing, and typically
Speaker 3: that money is used to cover you know, demolition permits, plans,
Speaker 3: you know, things of that nature. You're kind of like
Speaker 3: your soft costs, right, But the lender, I mean, the
Speaker 3: builder will have to be able to front that job.
Speaker 3: So let's just say that the building's going to cost
Speaker 3: a million dollars Fellas to build, and they only released
Speaker 3: in fifty thousand dollars. But the first phase of the
Speaker 3: project is going to cost you all quarter a million dollars.
Speaker 3: So now where does that two hundred thousand come from? Right,
Speaker 3: that two hundred thousand has to come from the builder.
Speaker 3: They have to be in position to start that job.
Speaker 3: Complete phase one. Then the lender will send out an
Speaker 3: inspector to inspect, you know, phase one, to make sure
Speaker 3: autis across ASA dotted. And then the inspector will go
Speaker 3: back to the bank say okay, you can release the
Speaker 3: draw of two hundred thousand, and then now the builder
Speaker 3: gets paid that two hundred thousand, and then they move
Speaker 3: on to phase two and it goes on like that
Speaker 3: until the job is complete. So it's very important that
Speaker 3: you understand your builder, understands how they get paid, and
Speaker 3: they are liquid because a lot of builders out here
Speaker 3: are not liquid as well. So you can't pick the
Speaker 3: builder just because they might have gave you the cheapest price.
Speaker 5: How do you note that liquor.
Speaker 3: Now the lenders will vet the builders as well. There's
Speaker 3: a lot of lenders out there that use third party companies,
Speaker 3: So I'm not going to mention their name because they
Speaker 3: don't endorse us, right, and they will have to see
Speaker 3: the liquidity of the builder bank statements, do you have
Speaker 3: Amax's whatever it is, to make sure that they are
Speaker 3: liquid to be able to do this job. Because the lenders,
Speaker 3: again they're putting out a million dollars on construction. They
Speaker 3: want this house built. They don't want to own the property,
Speaker 3: especially if is something that's not built right. So it's
Speaker 3: in their best interest as a lender to make sure
Speaker 3: that the builder can get this job done and they
Speaker 3: have the experience to get it done as well, because
Speaker 3: a lot of people talk to talk, but they can't
Speaker 3: walk the walk. So that's why again like a two
Speaker 3: or three K, I like to call it two or
Speaker 3: three K, the training will for investors. So a construction
Speaker 3: loan when you're going through like the conventional way for
Speaker 3: a homeowner, is kind of like training wheels if you
Speaker 3: want to get into development as well, because you have
Speaker 3: the lender by your side and the inspectors by your
Speaker 3: side that work for you, and the lender to protect
Speaker 3: you against the builders because you know, we all say
Speaker 3: contractors are you know, you know what I'm saying, but
Speaker 3: you got to But the bank is always going to
Speaker 3: make sure that they protect the investment at the same time.
Speaker 5: So what happens if it's not going right? Like, what
Speaker 5: as as a customer, what recourse do you have if
Speaker 5: the contractor isn't doing what he's supposed to be doing,
Speaker 5: it's not moving at the timeline that's supposed to be
Speaker 5: moved there, Like what can you do?
Speaker 3: You can fire them, but then now you start from
Speaker 3: square one again. Right now you have to find a
Speaker 3: new builder. Now they have to give you their cost.
Speaker 3: Now that's new paperwork that has to get submitted to
Speaker 3: the bank. Right, So it's a whole process that if
Speaker 3: you're doing this post closing right, you're doing the post
Speaker 3: closing and you're already in your project. It's like anything
Speaker 3: if you do. If you do a bathroom over in
Speaker 3: your house and you don't like the contract and you
Speaker 3: fired them, now a new contract is going to come
Speaker 3: in and say, well, their work is not good, So
Speaker 3: now I've got to tear all their work down and
Speaker 3: restart it over again. So now the cost will be
Speaker 3: more than what you anticipated. So you have to weigh
Speaker 3: out what's the opportunity cost really of me firing my
Speaker 3: contractor right now or my builder at the phase that
Speaker 3: I'm in right now, because I'm already started and it
Speaker 3: can wind up costing you more money. Now, if they're
Speaker 3: just negligent and they're just disrespectful and they just don't
Speaker 3: they're not really there, then obviously you're going to have
Speaker 3: no choice. But you got to handle your business because
Speaker 3: you are a CEO. This is real estate, right, so
Speaker 3: you have to fire them. But understand there's going to
Speaker 3: be now a whole new vetting process that now the
Speaker 3: lender is going to have to do. And then ultimately,
Speaker 3: if they're going to charge more than what the scope
Speaker 3: of workers.
Speaker 2: Already approve, you're not getting no more money.
Speaker 3: So where's that extra money. If they're gonna charge your
Speaker 3: extra fifty one hundred K, where's that extra money coming from.
Speaker 3: It's coming from you because you decided to fire them.
Speaker 3: So it's best while you're in the underwriting process. If
Speaker 3: you're going to make any changes with your contract or
Speaker 3: your builder, is best to do it while you're in
Speaker 3: the process because if they come with the higher scope
Speaker 3: of work, then you can protect yourself easier and reapply
Speaker 3: or not reapply, but you can ask for all request
Speaker 3: to see if you can get more of a approval
Speaker 3: to compensate for that extra money. So you just have
Speaker 3: to make sure again vetting out your people to make
Speaker 3: sure that they are who they say they are.
Speaker 6: If I'm looking to build a new property and I'm
Speaker 6: trying to find land, I know you can vet everybody
Speaker 6: on that side, but is there any way to or
Speaker 6: is there a database that you can vet the town
Speaker 6: engineer or the county engineer or the building department.
Speaker 3: Is there any way to do that?
Speaker 6: Because a lot of times, and we've seen it personally,
Speaker 6: like they're the ones that are hold enough the whole things, right,
Speaker 6: Like I might not move to that town, or I
Speaker 6: might not try to develop there if I know there's
Speaker 6: going to be that type of lay if they have
Speaker 6: a history of that.
Speaker 3: So typically when you're applying for permits and stuff like that,
Speaker 3: you would want to hire an expediter, right And the
Speaker 3: experedite is someone who works within the town or has
Speaker 3: a relationship with them and they're able to push the
Speaker 3: paperwork through in a timely matter. But ultimately, again it's relationships, right,
Speaker 3: Like if you hire a great architect and they have
Speaker 3: good relationships within the town because they're doing a lot
Speaker 3: of business and they're doing a lot of jobs, then
Speaker 3: they might not need to hire experdita because they know
Speaker 3: Mary Sue over here in this department and their sons
Speaker 3: go to soccer together, right, so they can have that
Speaker 3: type of conversation and kind of try to get things
Speaker 3: pushed through. But that's hit and miss as well. So no,
Speaker 3: is there a way to vet, really really not. It's
Speaker 3: kind of the lucky to draw and you have to
Speaker 3: put your plans in as complete as possible because sometimes
Speaker 3: they'll come back and they want corrections.
Speaker 2: To your plans and then you got to go back
Speaker 2: and forth as well.
Speaker 3: So it's unfortunately, it's one of those situations you're damned
Speaker 3: if you do, you're damned if you don't. The town
Speaker 3: is always going to come back with something. They're always
Speaker 3: going to want some sort of correction, and there's always
Speaker 3: going to be some back and forth. And that's why
Speaker 3: your architect and building is probably one of the most
Speaker 3: important roles because they have to be quick on their feet.
Speaker 3: Some architects are just slow as hell to change something
Speaker 3: so minor to us. It might take them thirty days.
Speaker 3: That's setting your timeline back, right, So again I think
Speaker 3: not vetting the building apartment, you need to vet the
Speaker 3: architect to make sure that what's their turnaround for changes,
Speaker 3: what's their relationships with the town that you're building in.
Speaker 3: How many jobs have they submitted in the last sixty
Speaker 3: ninety twelve months? Right, these are questions when you're interviewing
Speaker 3: an architect. Just don't go off the referral like, oh,
Speaker 3: he's a great architect and this than a third Nah,
Speaker 3: Chill ask the questions. Right, this is your house, this
Speaker 3: is your business. You own the property, You're responsible for
Speaker 3: the mortgage payment, nobody else. So you have to make
Speaker 3: sure whoever you're hiring, you have to make sure they
Speaker 3: can get that job done. And they have a sense
Speaker 3: of urgency too, right, And because a lot of these
Speaker 3: folks they just don't have it.
Speaker 5: So let's talk about build to rent financing.
Speaker 3: Build to rent finance, yes, investors. Build to rent financing
Speaker 3: is you know something that's happening nationwide from a mom
Speaker 3: and pop level and also from the institutional level. Right,
Speaker 3: So build to rent financing, you can buy them in
Speaker 3: your you can get these Basically, it's the same thing
Speaker 3: like a constructional Right, you find a plot of land
Speaker 3: or older property and you want to build a multi
Speaker 3: family building. You know, five units, ten units, What have you,
Speaker 3: and most cases you want to have some sort of
Speaker 3: experience with investing number one. So most lenders, if you're
Speaker 3: a first time investor, they probably won't lend to you
Speaker 3: on build to rent financing because you just don't have
Speaker 3: the experience of being a landlord. So that's number one.
Speaker 3: So this is really not like a first time home
Speaker 3: buyer type of product. It's for the real estate investor.
Speaker 3: Everything is in your LLC, it's not in your personal name,
Speaker 3: just like when you're buying a turnkey prop. But essentially
Speaker 3: it's the same like construction loan. You're getting a loan
Speaker 3: from the bank to build the multifamily that ultimately you're
Speaker 3: not flipping the multifamily. You're going to rent it out.
Speaker 3: It's a new construction multifamily. And you can do this
Speaker 3: product nationwide, so it's a great product. Right now, interest
Speaker 3: rates are going to be a little bit high on
Speaker 3: a higher level just because the market that we d
Speaker 3: so you have to make sure the numbers still work.
Speaker 3: But traditionally for this type of finance, and you can
Speaker 3: expect you need to be able to put down at
Speaker 3: least a thirty percent down payment twenty five to thirty
Speaker 3: percent down payment plus your closing costs to get this done.
Speaker 3: But again it's the same thing. You need architects, you
Speaker 3: need to get your plans, You gotta submit earners. What's up?
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Speaker 1: An illegal alien from Guatemala charged with raping a child
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Speaker 2: Sponsored by the United States Department of Homeland Security permits.
Speaker 3: You need a construction crew. Your construction crew has to
Speaker 3: have experience will build them multifamilies. So it's not like
Speaker 3: you have my wake up and I'm gonna do build
Speaker 3: rent right. You have to have a team in place
Speaker 3: that can actually get the job done. Because now when
Speaker 3: you get to building atten you unit, a fifteen unit,
Speaker 3: a five unit, whatever it is, it's a lot more
Speaker 3: work that has to be done for from a design standpoint,
Speaker 3: to make sure everything's cold. And they're now submitting that
Speaker 3: to the town. Now that process can take a little
Speaker 3: while longer to get approved just because of the amount
Speaker 3: of plans that has to be submitted to the town.
Speaker 6: So you got a slightly higher interest rate. Correct, You're
Speaker 6: going to put more of a down payment.
Speaker 3: Correct.
Speaker 6: But on the flip side, new bills always attract premium
Speaker 6: customers absolutely, and so you'll probably get high rental costs
Speaker 6: from your renters and new construction. New bills always require
Speaker 6: for long term or at least for the immedia future
Speaker 6: if youre maintenance costs when the.
Speaker 3: People are in.
Speaker 6: There absolutely are other like hitting advantages that are inside
Speaker 6: this loan.
Speaker 3: Well, I can tell you about some cons before I
Speaker 3: go into some advantages. Right, So let's look at when
Speaker 3: you're doing anything build to rent. Remember this is an investment,
Speaker 3: but it's going to take time for you to recoup
Speaker 3: your investment, right because you got to think about this
Speaker 3: depending on where you're building that and to just get
Speaker 3: the plans approve, that could be six months eight months alone, right,
Speaker 3: then you have to build the property. Right, Building the
Speaker 3: property can take a year, maybe a little bit longer.
Speaker 3: So you gotta figure your first two years you have
Speaker 3: no income coming into this property, and then now you
Speaker 3: have to go out here and rent the property and
Speaker 3: depending on the market at that time, you might be
Speaker 3: protracting two years ago. Hey the rents are here, I'm
Speaker 3: going to make X right, or construction costs is this.
Speaker 3: But if construction costs goes up while you're filing your permits,
Speaker 3: that can blow up your numbers too. Let's say a
Speaker 3: rental income goes down or rent income goes down in
Speaker 3: your neighborhood, that can blow up your numbers as well.
Speaker 3: So there's cons with doing any type of build to
Speaker 3: rent type of finance. And so I want any type
Speaker 3: of deal. I should say, not just the finance of
Speaker 3: just taking on those type of deals, because anything can
Speaker 3: happen and within that time frame before you even put
Speaker 3: a shovel on the ground, right, which can really hurt
Speaker 3: your numbers.
Speaker 2: So I want all viole folks who are watching us.
Speaker 3: To really understand you can't have these lofty numbers because
Speaker 3: a lot of times people will come and say, oh,
Speaker 3: I'm gonna charge this. I know the market is this,
Speaker 3: but I'm gonna go to hear No, you can't depend
Speaker 3: on that, right because you got to always plan for
Speaker 3: the very worst case scenario. Now, on the flip side,
Speaker 3: your forcing appreciation, that's really the truest way to build
Speaker 3: wealth with real estate is now your force and appreciation.
Speaker 3: Right now, we're still in an appreciated market. Although home
Speaker 3: prices and values have come down, they haven't went negative, right,
Speaker 3: so you're forcing the appreciation. If you're able to get
Speaker 3: good court with materials, you can probably find yourself to
Speaker 3: have a lot of equity in that multifamily that you're building,
Speaker 3: and then now you'll be able to refinance out of
Speaker 3: that loan, get into and possibly take some cash out
Speaker 3: now so you can go and do another project. So
Speaker 3: builtering financing is a right product, but it's strictly for
Speaker 3: live men, not for freshmen, not for freshmen, not for freshmen,
Speaker 3: not for freshmen. You really have to you have to
Speaker 3: have a team, And I will advise anyone who's looking
Speaker 3: to do any type of bill to finance any type
Speaker 3: of deal like that, get some partners who know what
Speaker 3: they're doing, because it's a lot to try to develop property,
Speaker 3: and if you're a rookie, you're going to make a
Speaker 3: lot of mistakes, and it's almost sometimes better to either
Speaker 3: pay for some sort of consultant or mentor because that
Speaker 3: will save you a lot of time, mistakes and money.
Speaker 3: So I would highly advise anyone who's looking to do
Speaker 3: this for the first time to get to get some
Speaker 3: real people in their circle that can really help them
Speaker 3: and guide them. So that way you learn. You're paying
Speaker 3: for it, but you're earning while you're learning, so to speak.
Speaker 5: So what about people you made a video? I think
Speaker 5: about this when putting a house in your name as
Speaker 5: opposed to putting a house not in your name, so
Speaker 5: people can't find out where you live, different things of
Speaker 5: the nature.
Speaker 3: Yeah, what's the.
Speaker 5: What's the deal with that?
Speaker 3: So when you're buying a property and if you're using
Speaker 3: a non QM loan, a non QM loan is a
Speaker 3: non qualified mortgage that basically means that Fannie Mae Freddie
Speaker 3: mac fha Va won't purchase that loan in the secondary market. Right,
Speaker 3: this is a portfolio loan, which more non traditional lenders
Speaker 3: will use for non traditional buyers. Right now, if you're
Speaker 3: buying a primary residence, there are several lenders out there
Speaker 3: that will allow you to buy that primary residence in
Speaker 3: your LLC name. Right, we are living in the post
Speaker 3: pandemic era where a lot of people made a lot
Speaker 3: of money over the past two years, and folks are buying,
Speaker 3: you know, their mini mansions and their the mansions right now,
Speaker 3: and if you don't want the world to be able
Speaker 3: to find you, the best way is to put it
Speaker 3: in a l SE so that way they can't google
Speaker 3: your name and find you because it's in the LLC.
Speaker 3: So now the mortgage is in the LLC name, the
Speaker 3: deed of the properties in the LLC name. You own
Speaker 3: the LLC, the LLC owns the property, so it's the
Speaker 3: same It's the same way as if you're buying investment
Speaker 3: properties and putt in LLC, but this just so happens
Speaker 3: to be your primary residence. So there's several lenders that
Speaker 3: out there that will allow you to do this. But again,
Speaker 3: interest rates wise, right now, non QM loans is going
Speaker 3: to be in that seven to nine percent range, just
Speaker 3: depending on the lender and the deal that you're doing,
Speaker 3: but it can get done. I've done several loans like
Speaker 3: that over the past twenty four months where I'm working
Speaker 3: with celebrities or influencers and we're using these products to
Speaker 3: kind of shield their identity. And then also when you
Speaker 3: set up the LLC and it's gonna be a brand
Speaker 3: new LLC tool by the way. It doesn't need established
Speaker 3: business credit. You can have a minimum of a six
Speaker 3: forty credit score. Obviously, the lower the credit score, the
Speaker 3: higher interest rate. But the key to this is when
Speaker 3: you open up the LLC, you know where it says
Speaker 3: you open an LLC, it says registered agent. You don't
Speaker 3: put your name there as the registered agent. Because if
Speaker 3: someone looks in some way somehow finds that LLC and
Speaker 3: your the name is the registered agent, then obviously they're
Speaker 3: going to know you own it. So you got to
Speaker 3: have another registered agent's name there, so that way you
Speaker 3: showed as well. But yeah, that's a play right now
Speaker 3: that we're using on a daily basis.
Speaker 5: And mole it's the highest interest, it's a higher interest rate.
Speaker 3: It's gonna if you have a lower credit score, but
Speaker 3: if you have seven hundred plus credit scores. Because you're
Speaker 3: still personal guaranteeing the loan. I want to make that
Speaker 3: clear too. Although it's going in the LLC's name, you
Speaker 3: as the owner, are personal guaranteeing it. So if you
Speaker 3: try to skip down and not pay the bank, okay,
Speaker 3: they're gonna just put it on your personal credit and
Speaker 3: then they're gonna come after you. So yes, the high
Speaker 3: the credit score, the lower the interest rate, and in
Speaker 3: today's market, that lower rate will represent probably somewhere in
Speaker 3: the sevens the higher nine ten percent, especially if you're
Speaker 3: not low six hundred credit score.
Speaker 6: So are there are ways and I saw you post
Speaker 6: this as well, are there ways to lower the interest rate?
Speaker 3: Obviously we've seen them going up over the.
Speaker 6: Past twelve months and come down slightly over the past
Speaker 6: month or so. Are there ways that we can use
Speaker 6: or strategies we can use to lower our interest rates
Speaker 6: when it comes to finance, and know for primary residences
Speaker 6: or I let's take primary and maybe I guess so.
Speaker 3: Yeah, So if we're talking the traditional route, right, conventional FHA,
Speaker 3: you could do what's called a two to one by
Speaker 3: down right now. Two to one buy down is it
Speaker 3: used to be popular during the wild cowboy days. It
Speaker 3: was totally underwritten different but now I like the way
Speaker 3: the program is. So basically, essentially, as a two to
Speaker 3: one buy down, you need to sell this concession the
Speaker 3: fundess buy down. You the borrower, cannot use your own
Speaker 3: monies to do the two one buy down. So how
Speaker 3: it works is a lender, let's just say you're doing
Speaker 3: the FHA loan. Let's just say today's rate is five
Speaker 3: and a half percent on a thirty year fix for example,
Speaker 3: the first year your interest rate will be three point
Speaker 3: five percent, the second year the rate will be four
Speaker 3: point five percent, and year three to maturity date will
Speaker 3: be the note rate of five and a half percent.
Speaker 3: So the lender will determine how much money are you
Speaker 3: saving between three and a half percent and five and
Speaker 3: a half percent and four and a half percent and
Speaker 3: five and a half percent. So let's just say over
Speaker 3: those two years you're saving a combination of ten thousand dollars. Right,
Speaker 3: you need to get a sealers concession of ten thousand
Speaker 3: dollars to fund that two one buy down, and that
Speaker 3: essentially will give you the opportunity to have a lower
Speaker 3: rate for the first couple of years, kind of like
Speaker 3: a teaser rate, so to speak. But it's a thirty
Speaker 3: year fixed program. And the idea behind this is, and
Speaker 3: this is why lenders started bringing this program back when
Speaker 3: rates jumped up, is because you know what, lenders are
Speaker 3: still going to lend. We're going to be creative, We're
Speaker 3: going to figure this shit out. Right, it's totally illegal,
Speaker 3: so we're going to bring back products that makes both
Speaker 3: sense and sense for all parties involved. This is a
Speaker 3: way to make home ownership affordable over the first couple
Speaker 3: of years while we ride the wave of this current cycle,
Speaker 3: and when rates tick down there's going to be a
Speaker 3: refinance boom in the next twelve to eighteen months, maybe
Speaker 3: sooner right now. Another way is to buy down points.
Speaker 3: Buying down points now you can fund this with a
Speaker 3: salies concession, or you can use your cash out of
Speaker 3: your bank account to buy down points and as part
Speaker 3: of your closing costs as well. And one point is
Speaker 3: equivalent of one percent of the loan amount, So if
Speaker 3: you're buying let's just say it's a five hundred thousand
Speaker 3: dollars loan, one point is five thousand dollars, and that
Speaker 3: will bring your rate down, depending on the lender, a
Speaker 3: quarter a point to three eighths of a point. So
Speaker 3: if it started off at five and a half, you
Speaker 3: brought a point, it will go to five point one
Speaker 3: two five percent or five and a quarter on a
Speaker 3: thirty year fix. And each point you buy will knock
Speaker 3: down quarter to three a's of a point. So that's
Speaker 3: also another way that you can bring down your interest rate.
Speaker 3: But ultimately, the way to lock in the lowest rates
Speaker 3: possible is to have the highest possible credit score that
Speaker 3: you can have, especially in today's market, where you know,
Speaker 3: even if you have a seven hundred credit score, you
Speaker 3: might not still get the lowest rate, whereas a year
Speaker 3: ago that still would give you a great rate at
Speaker 3: seven hundred and seven to twenty. Now you really have
Speaker 3: to be in that if you're going conventional, you really
Speaker 3: have to be seven forty seven sixty and higher right
Speaker 3: now to really get that whatever that national rate that
Speaker 3: people see online with no points, you really have to
Speaker 3: be in that higher upper echelon of credit when you're
Speaker 3: talking conventional. Now, fha, you can have a six eighty
Speaker 3: seven hundred credit store still get a great rate with
Speaker 3: those scores.
Speaker 6: So in that first scenario, going from's that example three
Speaker 6: point five to five point five, after it gets let's
Speaker 6: say after that third year, is it capped at the
Speaker 6: five point five?
Speaker 3: Correct?
Speaker 2: It's capped, right, So it's not an adjustable rate.
Speaker 3: Correct, it's not adjustable rate. It's a thirty it's a
Speaker 3: thirty year fixed mortgage. But speaking of adjustable rates, that's
Speaker 3: another way, but adjustable rates, you got to really look
Speaker 3: at the math and see does it make sense for
Speaker 3: me to take this adjustable rate because the a five
Speaker 3: year so adjustable rates are typically fixed for five years,
Speaker 3: seven years, or ten years, and then after that it
Speaker 3: adjusts for the life of the loan. Depending on where
Speaker 3: the market is, the rate can go up and go down.
Speaker 3: So folks who had adjustable rates prior to the pandemic,
Speaker 3: they won because they rates. If there was an adjustment phase,
Speaker 3: they rates drop down so they didn't really necessarily have
Speaker 3: to refinance and pay closing costs and things like that
Speaker 3: because the market was in a favor now on the
Speaker 3: flip side, huh difference, so they I advise all my
Speaker 3: clients and people who I was speaking to who had adjustables,
Speaker 3: you might as well get out of it because the ten, fifteen, twenty,
Speaker 3: and thirties the cheapest has ever been, So it doesn't
Speaker 3: make sense to play the risk. But in this market,
Speaker 3: adjustable rates make sense. For someone who is not looking
Speaker 3: and they know that not going to stand at home
Speaker 3: for the long term. This is not a thirty year
Speaker 3: play for them. This is a five year place. So
Speaker 3: if you know I'm gonna be in this house for
Speaker 3: five years and I'm just using this as my starter home.
Speaker 3: I wouldn't recommend getting a five year ARM. I would
Speaker 3: probably say do a seven or ten because life happens
Speaker 3: and you never know. And if you see an opportunity
Speaker 3: to refinance over the next couple of years and you
Speaker 3: still own that house, take advantage of the refinance opportunity
Speaker 3: as well. So adjustable rate mortgagees can work if it
Speaker 3: makes sense, But in most cases, from what I'm seeing,
Speaker 3: sometimes it just doesn't make sense.
Speaker 5: So let's talk about hedge funds buying single family homes.
Speaker 3: What's the deal with that business. Look, I know there's
Speaker 3: a lot of chat on the internet about the housing market,
Speaker 3: and a lot of folks will tell you, don't buy
Speaker 3: a house right now, don't do this right now. I
Speaker 3: tend to follow the money. What is the money doing.
Speaker 3: The money is the institutional investors and what they're doing
Speaker 3: right now. They're buying houses in the forms of billions
Speaker 3: and billions and billions of dollars. So for me, the
Speaker 3: light bulb goes over my head and say, hmm, what
Speaker 3: do they know that we don't know. These people are
Speaker 3: smart as hell, they're not stupid, and if they're buying homes,
Speaker 3: then why are we sitting on the sidelines, Well, not us,
Speaker 3: but why are some of our audience sitting on the
Speaker 3: sidelines and waiting for a quote unquote crash or anything
Speaker 3: like that to happen to get themselves in the game.
Speaker 3: If you look at the institutional money out there, they're
Speaker 3: buying all of Georgia right now for the most part.
Speaker 3: You know, you got Jeff Bezos and his back companies
Speaker 3: that are buying real estate. JP Morgan Chase just partner
Speaker 3: with another hedge fund. They're buying billion dollars worth of
Speaker 3: real estate right All of these companies, all these institutional
Speaker 3: investors are putting their money into the safe haven of
Speaker 3: real estate for a reason and the purpose because real
Speaker 3: estate is going nowhere. Right, Crypto was up to sixty
Speaker 3: plus thousand dollars. Now where is it at? Stocks was
Speaker 3: up where and where is at? If the housing market
Speaker 3: does crash, I can still go touch my house. The
Speaker 3: tenant still has to pay me. I'm still going to
Speaker 3: get the same cash flow because with inflation rising, even
Speaker 3: though it's coming down a little bit, people still have
Speaker 3: to pay their rent. And if you buy right, there's
Speaker 3: always going to be cash flow coming in no matter
Speaker 3: what the market is doing. So real estate is it
Speaker 3: will be probably one always one of the greatest investment
Speaker 3: tools out there, especially because of the tax benefits that
Speaker 3: come with it. And you have to understand the tax
Speaker 3: play behind buying that much real estate as well. So
Speaker 3: these people are rich and wealthy and they're trying to
Speaker 3: hedge their taxes and minimize it too. So what's the
Speaker 3: best player real estate? Brick and mortar because of things
Speaker 3: like depreciation, cost segregation, there's a lot of different things
Speaker 3: that you can do to offset your wins. If you
Speaker 3: got huge capital gains, you can put that in ten
Speaker 3: thirty one changes, buy real estate, so you defering your
Speaker 3: taxes down the road. Right. Real estate gives you all
Speaker 3: these plays that the wealthy use at scale to continue
Speaker 3: to grow their wealth. Whereas with us in our community,
Speaker 3: we like to listen to everybody else, but instead of
Speaker 3: following the money, so the institution investors are going to
Speaker 3: continue to buy real estate and also playing devil's advocate.
Speaker 3: Why is that too? Besides everything I mentioned is to
Speaker 3: keep the middle class middle classing right to make America
Speaker 3: ten period. Like the middle class areas they don't want
Speaker 3: you to own homes, They don't want you to be wealthy.
Speaker 3: They don't want you to be rich, they don't want
Speaker 3: you to build your wealth. So they're buying all these
Speaker 3: properties in my opinion, to keep the middle class at
Speaker 3: the middle class.
Speaker 5: So but like a lot of investors, like Julian Gordon,
Speaker 5: they like it doesn't make sense to invest in multi
Speaker 5: in a single family, invest in multi family owns. So
Speaker 5: this is contrary to that because this is billion dollar entities.
Speaker 5: They're not buying well, they're buying multi pemple, but they're
Speaker 5: buying single family homes.
Speaker 3: Yeah, because single family is so you know, shout out
Speaker 3: to Julia first and foremost in the multi family movement.
Speaker 3: But I understand his logic is if it's a single family,
Speaker 3: one it's one income coming in and if they don't pay,
Speaker 3: then somebody has to pay that debt. Whereas it's a
Speaker 3: multi family, you have multiple rents coming in, so if
Speaker 3: one person doesn't pay, you have four units. You still
Speaker 3: got three rents coming in that can cover, right. So
Speaker 3: I understand that logic, But the reality of it is
Speaker 3: people live in single family rents. Who's longer than multi families.
Speaker 3: Multi family apartments are smaller than somebody want to live
Speaker 3: in house. So if you have children, you don't want
Speaker 3: to live in the hood where are most multi families at.
Speaker 3: And now New York is different, right because you can
Speaker 3: go to Brooklyn and be in Park Slow and it's
Speaker 3: five million dollar multifamilies there, right. So New York is
Speaker 3: just a different peace in the self. So I can't
Speaker 3: compare New York to the rest of the country. But
Speaker 3: if we all travel around the country, and where you
Speaker 3: see multi families at. You don't see them in the suburbs,
Speaker 3: you don't see them in the good school districts, you
Speaker 3: don't see them in where there's good stores and amenities
Speaker 3: and things of that nature in the area. So most
Speaker 3: folks who have children, especially young children, that want school districts,
Speaker 3: They want to live in a single family home. They
Speaker 3: want backyard and bar mitzvahs. They probably just can't afford
Speaker 3: to buy right now, but they still want to live good. Right.
Speaker 3: So America's institutional investors understand that this is why they're
Speaker 3: doing more build to rent properties where they would build
Speaker 3: these communities for single families, and traditionally they would sell
Speaker 3: those and flip them now with rent at all time
Speaker 3: high style one bedroom apartment is on average nationally two
Speaker 3: thousand dollars a one bedroom apartment in New York right
Speaker 3: now average is six thousand dollars. Right, look at what's
Speaker 3: happened in New York. The empty office spaces are now
Speaker 3: being converted to what apartments? Yeah, right, So investors, especially
Speaker 3: institutional investors, are always going to find a way to
Speaker 3: make money. So it's no right or wrong way, whether
Speaker 3: single family or multi family, to me is no debate.
Speaker 3: Right if you are there some areas where it might
Speaker 3: be better to buy a single family and rentals. I
Speaker 3: know a lot of investors that swear up and down
Speaker 3: about single family rentals and won't touch a multi family
Speaker 3: and vice versa, Like the Julian Gordons of the world.
Speaker 3: They won't touch a single family. They want more family.
Speaker 3: So I think it's really about picking your poison and
Speaker 3: doing what works for you, not kind of following suit
Speaker 3: with everyone else, and understanding your numbers and what your
Speaker 3: ROI needs to be and they kind of moving on
Speaker 3: from there.
Speaker 6: Do you think that's where because I'm seeing a lot
Speaker 6: of commercial real estate being vacant, you think that is
Speaker 6: the way we're aheaded with this. Those commercial real estate
Speaker 6: spaces will now become rental properties inside would be like
Speaker 6: a conversion.
Speaker 3: Oh absolutely. I mean when we was at lunch with
Speaker 3: down people's we was having that conversation too, where conversions.
Speaker 3: There's billions of dollars just in New York City right
Speaker 3: now that's being flooded into the market in these office
Speaker 3: retail spaces that are now because look look what happened
Speaker 3: during the pandemic, companies people got to work from home.
Speaker 3: Why do I need to pay one hundred thousand dollars
Speaker 3: a month with that space? So what are the land
Speaker 3: and those are rentals right, they're leasing. They're not owning
Speaker 3: these skyscrapers in these buildings. So they rather pay the
Speaker 3: penalties to get out, then they can deduct it anyway
Speaker 3: off they taxes, so it's a whole place. So it
Speaker 3: really doesn't If they are a profitable company and they
Speaker 3: got a lot of money, it's not going to hurt
Speaker 3: them to get out their leavest. But from the landlord perspective,
Speaker 3: it's going to hurt me now because maybe I got
Speaker 3: the penalties and all this upfront money, but now I
Speaker 3: still got a vacant property, So why not convert it?
Speaker 3: Because there's a housing crisis. I think America needs about
Speaker 3: seven million homes right now to kind of balance out
Speaker 3: the housing market. So why not where you have all
Speaker 3: these cities and people now want the amenities, they want
Speaker 3: downtown living, they want the New York City flair, so
Speaker 3: to speak, in smaller towns and things of that nature.
Speaker 3: So why not create loss? Why not can create one bedrooms,
Speaker 3: two bedrooms in a downtown area, because now that's going
Speaker 3: to command what more rent, So you'll find people that
Speaker 3: will live in these as an apartment versus businesses that
Speaker 3: probably can't afford to rent them.
Speaker 2: So it's a play that's going on.
Speaker 3: And there's billions of dollars that are being dumped into
Speaker 3: converting office spaces into apartment So.
Speaker 5: How do you get licensed to become a real to
Speaker 5: a loan officer?
Speaker 3: Good question, and I don't think we ever spoke about that.
Speaker 3: So to get a real estate license, I think it's
Speaker 3: it's cheap. It's a couple hundred dollars, right, a couple
Speaker 3: hundred dollars investment. You need to take a seventy five
Speaker 3: hour course, be over eighteen years old, pass a background check,
Speaker 3: past the class. Once you pass the class, then you
Speaker 3: have to submit for your license and for the state
Speaker 3: that you're in, and then once you get approved, you
Speaker 3: have to get sponsored by real estate brokerage and then
Speaker 3: once you get sponsored, they issue your license, and then
Speaker 3: today I'm a real to So you really can become
Speaker 3: a real estate agent thirty days forty five days is
Speaker 3: depending on where you're located, and it's only going to
Speaker 3: cost you a couple hundred dollars to do, so it's
Speaker 3: not an expensive investment. Now on the flip side, just
Speaker 3: because your licensed real estate agent doesn't mean you're gonna
Speaker 3: make no money. The average real estate agent probably does
Speaker 3: one deal a year, if that right, So twenty percent
Speaker 3: of the people and really to have a real estate
Speaker 3: license are doing eighty percent of the business. And it's
Speaker 3: like any sales profession. I'm pretty sure when you were
Speaker 3: financial planning the numbers were pretty much the same. Even
Speaker 3: on the loan office socide. It's the same thing. So
Speaker 3: just because you got a license, it doesn't give you
Speaker 3: a license to print money. You have to go out
Speaker 3: there and you have tool network and you have to
Speaker 3: really roll up your sleeves to get some business because
Speaker 3: it's not easy at all. I think in New York Co.
Speaker 3: Loan is over thirty thousand real estate active real estate licenses.
Speaker 3: Thirty thousand people are not closing deals. You know what
Speaker 3: I'm saying, It's not happening, so, but it is. I
Speaker 3: believe that if you are looking to get into real estate,
Speaker 3: and if you don't have the capital to get into
Speaker 3: real estate, go get licensed. It's not going to hurt you.
Speaker 3: Because everybody knows somebody who needs to rent an apartment
Speaker 3: or do something like that. You can. It's so many
Speaker 3: different streams of income when you become a licensed realtor.
Speaker 3: You can rent apartments, you can sell homes. You can
Speaker 3: represent sellers, you can represent buyers, you can represent investors, developers.
Speaker 3: You can property manage right. You can do BPOs broken
Speaker 3: price opinions, which is basically appraisers right on behalf of
Speaker 3: the banks. You can do short sale negotiations. You can
Speaker 3: wholesale because in some states now they're requiring you to
Speaker 3: have a real estate license to even whole sale properties. Right.
Speaker 3: So there's many different avenues of making money. When you
Speaker 3: have your real estate license. You just got to figure
Speaker 3: out what's going to be your play and kind of
Speaker 3: stick to it. Now. Also, to get your mL license.
Speaker 3: To get become a licensed loan officer. Believe, you've got
Speaker 3: to take like a twenty five hour class and tests,
Speaker 3: and then when you pass that, you got to take
Speaker 3: a federal exam. You pass the federal exam again, it's
Speaker 3: a couple hundred dollars for a couple hundred dollars investment
Speaker 3: to get licensed. Once you pass the federal exam, then
Speaker 3: you submit to the state, you submit to NMLS. You
Speaker 3: got to do your fingerprints, your background check. It's a
Speaker 3: little bit more intense on my side because of the
Speaker 3: wild cowboy days and the market crash, so they kind
Speaker 3: of overregulated us. They blame us for everything, so we
Speaker 3: got overregulated a little bit. So now once you get
Speaker 3: your passed and then you have to get sponsored by
Speaker 3: a mortgage company, but the same rules apply. It doesn't
Speaker 3: mean you're going to make money, but both careers could
Speaker 3: be six figure careers. Seven figure careers if you really
Speaker 3: hit a lick and you really get a good referral
Speaker 3: sources and you're out there putting in.
Speaker 5: Your way and just a source of way to get information.
Speaker 3: Most importantly right information and resources. Right now you have
Speaker 3: a real estate license. Now you got access to MLS,
Speaker 3: the multiple listing service. Now you see all the homes
Speaker 3: that are being listed, you see who listening to homes.
Speaker 3: You get access to the public records. You get to
Speaker 3: learn how to navigate the systems. You get to learn
Speaker 3: how to look for comparable sales right. So there's a
Speaker 3: lot of knowledge that comes with this. And if you
Speaker 3: get with the right brokerage, the right real estate brokerage
Speaker 3: will always offer training. They will always have mortgage professionals
Speaker 3: in their offices like me, training you on loan products.
Speaker 3: They'll have title companies in your office. You'll learn so much.
Speaker 3: So it's a great way to get started if you
Speaker 3: want to be a real estate investor is to start
Speaker 3: off by getting your license, earning some money. Now you
Speaker 3: take your commissions, and now you start buying properties because
Speaker 3: now you start learning all the players are, especially the
Speaker 3: local players in your area. And now you can build
Speaker 3: a referral worre. I know people who got their real
Speaker 3: estate license, they don't sell the house at all. They
Speaker 3: just a referral network. They're refer to agents all over
Speaker 3: the country and they'll just get all the leads and
Speaker 3: they'll make thirty three percent of that transaction. Right, So
Speaker 3: that's also another play too, right, So there's a lot
Speaker 3: that you can do with you have your real estate
Speaker 3: license face BENGI.
Speaker 6: I'm looking at you, man, and I remember you know
Speaker 6: it was Marsha twenty nineteen when you sat down in
Speaker 6: the dining room. And what I've seen, obviously very close
Speaker 6: up is the growth obviously you in the real estate world,
Speaker 6: obviously in the social media world as well. And I've
Speaker 6: listened to you over and over and every time I
Speaker 6: hear you, I feel like you're being more You're more
Speaker 6: educated than the last time. Right, So it feels like
Speaker 6: you're staying on top of the game. But I wonder, now,
Speaker 6: as you look at it from where you stand, what's
Speaker 6: a missing like, what's a missing link inside of real
Speaker 6: estate that nobody has tried to solve or nobody has
Speaker 6: found a solution for it just yet?
Speaker 3: What's missing? I think representation matters in our in the
Speaker 3: real estate world. There's not too many black real estate
Speaker 3: mortgage broke riches, owners and banks mortgage banks out there.
Speaker 4: Now.
Speaker 3: When you're in cities like Atlanta or Houston where's predominantly black, yes,
Speaker 3: you'll see more black real estate brokerages, more black mortgage
Speaker 3: brokerages or mortgage banks. But when you're in the Northeast
Speaker 3: East Coast, I mean, how many black mortgage company owners
Speaker 3: do you guys know? I don't, I know, and I'm
Speaker 3: in this business for twenty years and I probably say
Speaker 3: I know two or three black people that own a
Speaker 3: mortgage bank or mortgage brokerage. So for me, what's missing
Speaker 3: in my career I've been doing this now twenty years
Speaker 3: is ownership. Most people think I own a mortgage company,
Speaker 3: but I don't. I just represent my team and I
Speaker 3: represent my last name. So for me, my goals have shifted,
Speaker 3: especially because of the past couple of years of what
Speaker 3: we've all been through together as a unit with Euyle University.
Speaker 3: We're doing events and traveling and now becoming an international speaker.
Speaker 3: I'm going to definitely use that all the time now, Rashana,
Speaker 3: thank you as you should. First he said I was
Speaker 3: the authority of real estate, and I'm like, what Now
Speaker 3: I believe them and I'm living that. But that's another story, y'all.
Speaker 3: But ownership for me is what matters. So now I'm
Speaker 3: in the process of getting my mortgage broker license to
Speaker 3: open up my own mortgage company. Which I would turn
Speaker 3: that into a mortgage bank and hopefully within the next
Speaker 3: five years take that mortgage bank public and have a
Speaker 3: couple billion dollar evaluation. So for me, what's missing in
Speaker 3: my career right now is the representation of ownership. Because
Speaker 3: it's great to sit out here and do content. It's
Speaker 3: great out here to teach people and do loans for people,
Speaker 3: But how do I bring up the next Who's next? Right,
Speaker 3: who's the twenty year old MG, the mortgage guy who
Speaker 3: might watch this and they might want to get into
Speaker 3: the business, but they want to work for someone that
Speaker 3: looks like them, that talks like them, that understands where
Speaker 3: they come from. Right, That's where I want to do.
Speaker 3: So it's easy for me now to hire people and
Speaker 3: have them a part of my team. Right now, I
Speaker 3: got to really do this for my last name, how
Speaker 3: do I really leave the legacy of everything that I
Speaker 3: work hard for? And that's really what ownership bro So yeah,
Speaker 3: so galland Mortgage Group. Hopefully I can get that name
Speaker 3: approved with the licensing and the FEDS and everything like
Speaker 3: that coming soon. But that's my next step is ownership
Speaker 3: and becoming one of the biggest black owned mortgage companies.
Speaker 3: In the world.
Speaker 5: You have it, ladies and gentlemen. One last thing before
Speaker 5: you got USDA loans, that.
Speaker 3: Brief USDA loans. Those are euro rural loans, right, so,
Speaker 3: and believe it or not, there's a lot of rural
Speaker 3: eras areas in America, right But it's again it's one
Speaker 3: hundred percent finance and I believe the minimum credits care is.
Speaker 5: Six twenty urban areas.
Speaker 3: Yeah, Yeah, there's there's a lot of opportunity to use
Speaker 3: these loans. And that's it's something that I don't speak
Speaker 3: about a lot of at all because I don't do
Speaker 3: too many of these loans. But it's a good program.
Speaker 3: You can buy ten fifteen acre homes that are sitting
Speaker 3: on these type of land where you cann't do that
Speaker 3: with a conventional mortgage. You can get great low interest rates.
Speaker 3: There are some of the programs have income restrictions on it,
Speaker 3: so you kind of have to check and see what
Speaker 3: if there are income restrictions for the areas that you're
Speaker 3: looking to buy in. But ultimately it's a great loan
Speaker 3: for someone who's looking to own a lot of land
Speaker 3: and you can get one hundred percent finance and with low,
Speaker 3: low interest rates. Yeah, so it's a great program. But
Speaker 3: I'm not gonna say I hold you up. I don't
Speaker 3: fund too many of these loans. I can, you know,
Speaker 3: do a whole class on this at a later note.
Speaker 3: But for this purposes, I would just say Google's your
Speaker 3: best friend and kind of really look into it more.
Speaker 3: Google's your friend, bro. Google's your best friend.
Speaker 6: Bro.
Speaker 5: You have it? So how can people contact you for
Speaker 5: mortgages or buy your book? And then to talk about
Speaker 5: the real estate blueprint as well?
Speaker 3: So apply with MG dot com if you want to
Speaker 3: do along with me and my team with licensed in
Speaker 3: twenty one states pretty much from New York to Florida, Cali, Texas, Illinois,
Speaker 3: Rhode Island, Alabama, Tennessee, Indiana, Chicago, Illinois. I mean I
Speaker 3: love Chicago, shoutout with Shan Scott, so we do a
Speaker 3: lot of deals over there. So apply with MG dot com.
Speaker 3: You can also go to my Instagram page MG the
Speaker 3: Mortgage Guy links in the bio set up a consultation
Speaker 3: with the team where would love to help you guys
Speaker 3: achieve your real estate goals, especially if you're learning from me.
Speaker 3: We'd love to help you. The book House Economics and
Speaker 3: real Estate Investors Manifesto both are number one best selling
Speaker 3: books on Amazon MS two times, the third times The
Speaker 3: chim Dog Got another book coming out soon soon come,
Speaker 3: and the books. So I'm glad you brought that up
Speaker 3: a shot because the bookstore is like my baby right now,
Speaker 3: because I have a lot of information in my head
Speaker 3: and I want to be able to provide people. I
Speaker 3: want to be the number one source for real estate
Speaker 3: education in the world. So people like to read. Although
Speaker 3: I'm not a reader per se, I know other people
Speaker 3: out there love to read books. They love to hold
Speaker 3: the book in the hand and just read it right.
Speaker 3: So for me, it wasn't enough just to put out
Speaker 3: courses and do webinars and do content. It was like,
Speaker 3: how do I reach more people? And that's where the
Speaker 3: bookstore and putting out books came into place. So for me,
Speaker 3: I don't want to. You know, most people they put
Speaker 3: out books a book every two years. I'm like, forget that.
Speaker 3: I can put out a book five times a year
Speaker 3: if I really wanted to, because the information is always
Speaker 3: changing and I can always do house economic, second edition,
Speaker 3: third edition, fourth edition, and so forth, right as time
Speaker 3: go on. So the bookstore, you know, go to mg
Speaker 3: Bookstore dot com and you can pick up some books
Speaker 3: and then the Home Buys Blueprint Volume one and volume two.
Speaker 3: Volume three is coming soon. So it's a part of
Speaker 3: succlusively part of e y L University. Eyl University is
Speaker 3: the number one online financial literacy platform the world, powered
Speaker 3: by Recession Proof. We have what twenty seven chapters in there.
Speaker 3: We have the Homebuys Blueprint Via one, Volume two. I
Speaker 3: mean we have a whole calendar man and it's like
Speaker 3: it seems like it's something going on every single day.
Speaker 3: We have the book club with Troy and Greg shout
Speaker 3: out to Greg. We have financial planning calls with Rashad.
Speaker 3: You have break bread calls with me once a month
Speaker 3: as well, and you have so many different things that
Speaker 3: are at ey L University. So I wild highly recommend
Speaker 3: you guys be a part of eyl University, become an
Speaker 3: owner and take your financial literacy and your business and
Speaker 3: your education to the next level.
Speaker 2: So yeah, go to e y l University.
Speaker 3: Dot com if you want to get the Homeboys Blueprint
Speaker 3: Via one, Volume two and potentially volume three coming soon,
Speaker 3: and everything else that we have to offer in e
Speaker 3: y L University and what else you ask me what else?
Speaker 3: I think it just took my part, man.
Speaker 5: I think you covered it.
Speaker 3: Man, don't think I got my lines anymore? What is it?
Speaker 3: Twenty seven chapters? What else?
Speaker 6: I think you ran down everything? Bro, it's a lot. Yeah,
Speaker 6: chapter to be in person, chapter meetings. There will obviously
Speaker 6: be some events. So yeah, it's doing improved.
Speaker 3: Yeah. Like I said, the Biggest just got bigger. So
Speaker 3: we really the biggest Scott bigger? Yeah, the Biggest just
Speaker 3: got bigger. You know, you guys are on a world tour.
Speaker 3: Biggas just got bigger and it's only going to get bigger,
Speaker 3: god willing. And I'm just happy to be a part
Speaker 3: of the ride. I mean, I remember the first episode,
Speaker 3: first episode, I was nervous as hell. I called them
Speaker 3: after the episode, said, Yo, can we just can we
Speaker 3: not put that out? Can you not put that out?
Speaker 3: I thought it was trash and it's a nah, you're good,
Speaker 3: I said, nah, bro, it's trash, Like, can we not
Speaker 3: put it out? I was nervous as hell and that
Speaker 3: thing took off? And I'm happy that you guys ain't
Speaker 3: listen to me because it changed the trajectory of all
Speaker 3: of our lives and I'm very thankful for YouTube Brothers
Speaker 3: for allowing me to always come back on the show
Speaker 3: and being a part of the network and having businesses together,
Speaker 3: and just the friendship and the camaraderie the hood and
Speaker 3: the conversations that we have at individuals and as a
Speaker 3: group is very important to me. So I want to
Speaker 3: thank you guys for everything. That this guy calls me
Speaker 3: like a month ago says, Yo, you're not hitting the
Speaker 3: mark or something, and I'm like, damn right. So these
Speaker 3: are the kind of conversations and this is real. Your
Speaker 3: circle is important. Those are the type of conversations you need.
Speaker 3: People who are going to be honest with you. That's
Speaker 3: in your circle's just not going to give you yes
Speaker 3: man answers and stuff like that. Even when you're not
Speaker 3: asking them for their opinion, they'll still call you and
Speaker 3: give you their honest opinion without trying to get at
Speaker 3: you in a negative way, because you never know how
Speaker 3: people receive information too at the same time, So I
Speaker 3: always appreciate when both of you guys call me on
Speaker 3: something and say Yo, MG, X Y and Z or
Speaker 3: X Y and Z like you did, and you know
Speaker 3: what I'm saying. I'm appreciative of that, and I'm thankful
Speaker 3: for that. So I always got to give you guys
Speaker 3: your flowers when I have the opportunity to, especially in
Speaker 3: the public setting, like earn your leisure podcast or earn
Speaker 3: your leisure show. The biggest show in the world was love.
Speaker 5: Appreciate it brother Yuniversity dot com joy.
Speaker 3: Shout to u IL University.
Speaker 6: I shout everybody on Patreon, shot that all our earners
Speaker 6: that are out there that are just repping the brand.
Speaker 6: I told you we started this thing out when we
Speaker 6: just said yo, just one person to day and that's
Speaker 6: growing into millions and millions of people. So just a
Speaker 6: testament to hard work, testament to networking and creating real
Speaker 6: relationships and real brotherhood. And I hope when you hear
Speaker 6: Matt speak and you know all those con words that
Speaker 6: he just said, that's just you know, it goes to
Speaker 6: show you, like you never know who's gonna come into
Speaker 6: your life at what time, but make the opportunity worthwhile.
Speaker 3: And I'm glad that we did that with.
Speaker 6: You, my brother, And there's you know a number of
Speaker 6: people that we've done that with. You know, we try
Speaker 6: to keep good relationships with everybody because you never know
Speaker 6: when you're gonna need somebody or when somebody's gonna need you.
Speaker 6: So shout out to everybody out there that's been supporting
Speaker 6: us and continue to rock with us.
Speaker 2: We got a lot of things ahead that are going
Speaker 2: to be amazing.
Speaker 3: Stay tuned, alert, Yeah, stay tuned, learned, has now been issues.
Speaker 5: Thank you guys, rocking once for see you next week.
Speaker 4: Peace, My graduates from my school being force back drop.
Speaker 5: Bag drop Mike Drotroproft.
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