WEBVTT - Different Types of Home Loans, House Hacking Explained, & Buying Real Estate for Couples

0:00:01.240 --> 0:00:02.000
<v Speaker 1>Earners. What's up.

0:00:02.080 --> 0:00:04.560
<v Speaker 2>You ever walk into a small business and everything just

0:00:04.720 --> 0:00:07.880
<v Speaker 2>works like The checkout is fast, the receipts are digital,

0:00:08.400 --> 0:00:11.399
<v Speaker 2>tipping is a breeze, and you're out the door before

0:00:11.400 --> 0:00:15.560
<v Speaker 2>the line even builds. Odds are they're using Square. We

0:00:15.720 --> 0:00:18.280
<v Speaker 2>love supporting businesses that run on Square because it just

0:00:18.280 --> 0:00:21.520
<v Speaker 2>feels seamless. Whether it's a local coffee shop, a vendor

0:00:21.560 --> 0:00:23.840
<v Speaker 2>at a pop up market, or even one of our

0:00:23.880 --> 0:00:27.560
<v Speaker 2>merch partners, Square makes it easy for them to take payments,

0:00:27.760 --> 0:00:31.480
<v Speaker 2>manage inventory, and run their business with confidence, all from

0:00:31.600 --> 0:00:35.000
<v Speaker 2>one simple system. If you're a business owner or even

0:00:35.080 --> 0:00:38.600
<v Speaker 2>just thinking about launching something soon, Square is hands down

0:00:38.640 --> 0:00:41.680
<v Speaker 2>one of the best tools out there to help you start, run,

0:00:41.920 --> 0:00:45.240
<v Speaker 2>and grow. It's not just about payments, it's about giving

0:00:45.240 --> 0:00:47.920
<v Speaker 2>you time back so you can focus on what matters

0:00:47.960 --> 0:00:51.199
<v Speaker 2>most Ready. To see how Square can transform your business,

0:00:51.479 --> 0:00:56.120
<v Speaker 2>visit Square dot com backslash go backslash eyl to learn

0:00:56.160 --> 0:01:01.360
<v Speaker 2>more that Square dot com backslash, go backslash eyl. Don't wait,

0:01:01.640 --> 0:01:04.480
<v Speaker 2>don't hesitate. Let's Square handle the back end so you

0:01:04.480 --> 0:01:10.839
<v Speaker 2>can keep pushing your vision forward. This episode is brought

0:01:10.840 --> 0:01:12.760
<v Speaker 2>to you by P and C Bank, a lot of

0:01:12.760 --> 0:01:16.360
<v Speaker 2>people think podcasts about work are boring, and sure they

0:01:16.440 --> 0:01:20.319
<v Speaker 2>definitely can be, but understanding of professionals routine shows us

0:01:20.319 --> 0:01:24.840
<v Speaker 2>how they achieve their success little by little, day after day.

0:01:24.959 --> 0:01:27.440
<v Speaker 2>It's like banking with P and C Bank. It might

0:01:27.560 --> 0:01:30.440
<v Speaker 2>seem boring to save, plan and make calculated decisions with

0:01:30.480 --> 0:01:33.520
<v Speaker 2>your bank, but keeping your money boring is what helps

0:01:33.520 --> 0:01:36.640
<v Speaker 2>you live a more happily fulfilled life. P and C

0:01:36.760 --> 0:01:41.920
<v Speaker 2>Bank Brilliantly Boring since eighteen sixty five. Brilliantly Boring since

0:01:41.959 --> 0:01:44.520
<v Speaker 2>eighteen sixty five is a service mark of the PNC

0:01:44.720 --> 0:01:48.680
<v Speaker 2>Financial Service Group, Inc. P and C Bank National Association

0:01:48.880 --> 0:01:49.840
<v Speaker 2>Member FDIC.

0:01:51.520 --> 0:01:55.040
<v Speaker 3>Because yes, once we get pre qualified, preapproved, now we

0:01:55.120 --> 0:01:57.680
<v Speaker 3>need to figure out what type of loans we should

0:01:57.680 --> 0:01:59.720
<v Speaker 3>be looking for, right, So let's talk about let's get

0:01:59.720 --> 0:02:02.960
<v Speaker 3>into that because there's different programs for different people who

0:02:03.040 --> 0:02:04.280
<v Speaker 3>need different types of assistance.

0:02:04.520 --> 0:02:06.880
<v Speaker 1>But let's get into that a little bit. Yeah, man,

0:02:06.920 --> 0:02:09.320
<v Speaker 1>so there's tons of loans out there, right, So you

0:02:09.440 --> 0:02:15.000
<v Speaker 1>have the traditional loans, you know, FHA, conventional VA loans,

0:02:15.160 --> 0:02:18.440
<v Speaker 1>you know, you have Knacker I know someone mentioned out there.

0:02:18.560 --> 0:02:22.519
<v Speaker 1>But let's do a brief overview, right, faha, minimum five

0:02:22.639 --> 0:02:27.720
<v Speaker 1>eighty credit score. You can buy one to four family properties.

0:02:28.080 --> 0:02:31.080
<v Speaker 1>All properties must be on the occupied for at least

0:02:31.480 --> 0:02:36.200
<v Speaker 1>one year. Okay, again one to four family own the

0:02:36.240 --> 0:02:39.080
<v Speaker 1>occupied properties. You can even buy with a FAHA a

0:02:39.160 --> 0:02:42.440
<v Speaker 1>mixed use property. Right. So, now, a mixed use property

0:02:42.760 --> 0:02:45.440
<v Speaker 1>is basically a commercial building. Now we have a lot

0:02:45.480 --> 0:02:47.359
<v Speaker 1>of these mixed use properties here in New York where

0:02:47.360 --> 0:02:49.440
<v Speaker 1>you might have a bodega on the bottom and three

0:02:49.480 --> 0:02:52.520
<v Speaker 1>apartments on the top. Right, that's a mixed use property.

0:02:52.600 --> 0:02:56.520
<v Speaker 1>So FAHA will allow a home buyer to buy this

0:02:56.600 --> 0:02:59.920
<v Speaker 1>mixed use property. As long as the residential square foot

0:03:00.000 --> 0:03:02.960
<v Speaker 1>which is at least fifty one percent and the like

0:03:02.960 --> 0:03:06.600
<v Speaker 1>likeness of the building is more residential in stature, FAHA

0:03:06.720 --> 0:03:09.720
<v Speaker 1>will allow you to buy a commercial property. So that's perfect.

0:03:09.840 --> 0:03:12.280
<v Speaker 1>Let's just say we have any business owners here in

0:03:12.320 --> 0:03:14.280
<v Speaker 1>the chat right now, watching this live or going to

0:03:14.360 --> 0:03:16.720
<v Speaker 1>watch this on the replay. If you have a business

0:03:16.720 --> 0:03:19.480
<v Speaker 1>that needs a brick and mortar, right, you can go

0:03:19.720 --> 0:03:23.800
<v Speaker 1>with FHA loan buy this mixed use live upstairs, have

0:03:23.880 --> 0:03:26.079
<v Speaker 1>your business downstairs, and put as little west three and

0:03:26.120 --> 0:03:30.120
<v Speaker 1>a half percent down for a mixed use property that

0:03:30.280 --> 0:03:34.400
<v Speaker 1>is a home run. FAHA also allows you to get

0:03:34.480 --> 0:03:37.200
<v Speaker 1>rehab money with the two or three K program where

0:03:37.200 --> 0:03:39.520
<v Speaker 1>you can get one hundred percent of your rehab court

0:03:39.640 --> 0:03:43.920
<v Speaker 1>as well. Right, So FAHA is a terrific program you

0:03:43.920 --> 0:03:46.080
<v Speaker 1>can go up to. Like I said, four families were

0:03:46.080 --> 0:03:48.200
<v Speaker 1>putting down three and a half percent. Now, some of

0:03:48.200 --> 0:03:52.600
<v Speaker 1>the cons about FAHA is obviously the PMI. Right. The

0:03:52.600 --> 0:03:55.640
<v Speaker 1>PMI is if you put down less than ten percent

0:03:55.760 --> 0:03:57.280
<v Speaker 1>is for the life of the loan, and if you

0:03:57.360 --> 0:04:00.920
<v Speaker 1>put down ten percent or more, the PMI automatically goes

0:04:00.960 --> 0:04:03.840
<v Speaker 1>away year eleven. Right, So that I would say that

0:04:04.000 --> 0:04:06.560
<v Speaker 1>was probably one of the biggest cons with FAHA. But

0:04:06.640 --> 0:04:11.400
<v Speaker 1>despite what everybody would believe, FAH loans do close really quickly. Right.

0:04:11.440 --> 0:04:13.200
<v Speaker 1>A lot of people out there think, oh, if you're

0:04:13.200 --> 0:04:16.479
<v Speaker 1>getting an FAH loan, it's going to take forever, and

0:04:16.520 --> 0:04:19.120
<v Speaker 1>you got bad credit, you don't really qualify. No, that's

0:04:19.120 --> 0:04:22.200
<v Speaker 1>not the case. FAHA is a great program. It gives

0:04:22.200 --> 0:04:25.840
<v Speaker 1>you a higher approval amount sometimes than conventional lutgage is

0:04:25.880 --> 0:04:29.760
<v Speaker 1>because the debts and income racial requirement is higher than conventional.

0:04:30.160 --> 0:04:31.560
<v Speaker 1>Now with conventional let's.

0:04:31.480 --> 0:04:33.680
<v Speaker 4>Let's let's let's do this though, Let's let's before you

0:04:33.760 --> 0:04:36.560
<v Speaker 4>go on, let's really take our time. Let's just take

0:04:36.560 --> 0:04:38.760
<v Speaker 4>our time. I want to make sure everybody understands. So

0:04:39.279 --> 0:04:43.440
<v Speaker 4>even terms like PMI, somebody might not understand what that is, right,

0:04:43.480 --> 0:04:50.200
<v Speaker 4>primary mortgage insurance. And even like okay, the FAHA loan,

0:04:50.680 --> 0:04:52.920
<v Speaker 4>somebody asks like it's this first time home by its like,

0:04:52.960 --> 0:04:55.279
<v Speaker 4>you can use that for your first time home, right,

0:04:55.760 --> 0:04:57.920
<v Speaker 4>and it allows you to put three point five percent

0:04:58.120 --> 0:05:01.919
<v Speaker 4>down as opposed to a traditional twenty percent down, but

0:05:02.800 --> 0:05:07.120
<v Speaker 4>you have to pay the PMI until you reach twenty percent.

0:05:07.640 --> 0:05:12.000
<v Speaker 1>Right, No, No, So to answer the question about the

0:05:12.000 --> 0:05:14.919
<v Speaker 1>prompt the first time home buyer, FAHA is not just

0:05:14.960 --> 0:05:17.400
<v Speaker 1>for first time home buyers, right.

0:05:18.560 --> 0:05:20.159
<v Speaker 4>It's not just for first time home buyers. But you

0:05:20.200 --> 0:05:22.560
<v Speaker 4>can use it if you're buying your first time home, right.

0:05:22.680 --> 0:05:25.160
<v Speaker 1>Correct, you can use it if you buy your first home.

0:05:25.200 --> 0:05:28.120
<v Speaker 1>But most people think if I own a home, I

0:05:28.160 --> 0:05:31.080
<v Speaker 1>can't do FAHA, which is not the case. You can

0:05:31.080 --> 0:05:32.800
<v Speaker 1>do FHA as long as it's going to be your

0:05:32.800 --> 0:05:36.880
<v Speaker 1>primary residence. Now, the PMI, the private mortgage insurance on

0:05:37.160 --> 0:05:41.640
<v Speaker 1>FAHA is called mortgage insurance premium that only goes away

0:05:41.839 --> 0:05:45.400
<v Speaker 1>if you put down ten percent or more, and it

0:05:45.480 --> 0:05:49.560
<v Speaker 1>goes away year eleven with a conventional mortgage. If you

0:05:49.640 --> 0:05:51.919
<v Speaker 1>obviously put down twenty percent up front, then you have

0:05:52.040 --> 0:05:55.640
<v Speaker 1>no PMI. But if you put down less than twenty

0:05:55.680 --> 0:05:59.400
<v Speaker 1>percent on a conventional mortgage, then that PMI will go

0:05:59.480 --> 0:06:02.400
<v Speaker 1>away wants you. You can request for it to go

0:06:02.440 --> 0:06:06.960
<v Speaker 1>away once you get about twenty percent equity in the home. Right.

0:06:07.440 --> 0:06:11.200
<v Speaker 1>So it's a little bit different than FHA. You don't

0:06:11.200 --> 0:06:14.719
<v Speaker 1>have to wait that long of a time frame to

0:06:14.760 --> 0:06:17.840
<v Speaker 1>get the pm I removed the conventional loan. You can

0:06:17.880 --> 0:06:20.720
<v Speaker 1>get that pm I removed much faster. And it was

0:06:20.760 --> 0:06:23.719
<v Speaker 1>something else you said in the ever shot. What else

0:06:23.760 --> 0:06:25.560
<v Speaker 1>did you say? I just had a brave freezon.

0:06:26.800 --> 0:06:28.240
<v Speaker 4>No, I think that you think that was it. I

0:06:28.320 --> 0:06:29.880
<v Speaker 4>just wanted to just make sure that they was just

0:06:30.040 --> 0:06:33.080
<v Speaker 4>understanding everything. But yeah, I think I think that was it.

0:06:33.160 --> 0:06:36.400
<v Speaker 4>But somebody asked the question too though, from the chat.

0:06:36.800 --> 0:06:42.000
<v Speaker 4>Somebody in the chat trenton Stewart. He said, what if

0:06:42.000 --> 0:06:44.120
<v Speaker 4>he's ten ninety nine and not w two?

0:06:45.040 --> 0:06:48.479
<v Speaker 1>Good question, great question. So if you are ten ninety nine,

0:06:48.480 --> 0:06:52.239
<v Speaker 1>you are considered self employed, Trent, So it's very important

0:06:52.279 --> 0:06:57.280
<v Speaker 1>remember two year work history with all of these traditional loans. Right,

0:06:57.720 --> 0:06:59.680
<v Speaker 1>So if you are ten ninety nine, you need to

0:06:59.680 --> 0:07:02.080
<v Speaker 1>be ten ninety nine for two years. But the most

0:07:02.120 --> 0:07:05.040
<v Speaker 1>important thing, Trent and anyone else who is self employed

0:07:05.120 --> 0:07:09.800
<v Speaker 1>or teny nine, your tax returns need to need to

0:07:09.920 --> 0:07:12.160
<v Speaker 1>line up appropriately. So let's just say you get one

0:07:12.200 --> 0:07:15.240
<v Speaker 1>hundred thousand dollars on your ten ninety nine. If you

0:07:15.280 --> 0:07:18.760
<v Speaker 1>write off ninety thousand and tell Uncle Sam that I

0:07:18.880 --> 0:07:22.880
<v Speaker 1>only made ten thousand, you pay income taxes on ten thousand.

0:07:23.040 --> 0:07:25.720
<v Speaker 1>That ten thousand is the money that we're going to

0:07:25.840 --> 0:07:28.760
<v Speaker 1>use to qualify you. And let's just be real, ten

0:07:28.800 --> 0:07:31.600
<v Speaker 1>thousand enough to buy the home. Right So if you

0:07:31.800 --> 0:07:36.000
<v Speaker 1>know you are self employed and you write off a lot,

0:07:36.120 --> 0:07:38.320
<v Speaker 1>this is why it is extremely important in the beginning

0:07:38.680 --> 0:07:42.520
<v Speaker 1>to have a great lender and start mortgage planning. Right.

0:07:42.680 --> 0:07:46.480
<v Speaker 1>Everybody type and chat mortgage planning, especially my self employed people.

0:07:46.760 --> 0:07:49.280
<v Speaker 1>You have to plan for your mortgage. You just can't

0:07:49.560 --> 0:07:51.400
<v Speaker 1>walk out and say, hey, I'm going to buy a

0:07:51.440 --> 0:07:54.320
<v Speaker 1>house today and you don't know what your finance is

0:07:54.360 --> 0:07:57.760
<v Speaker 1>looking like. So having a great lender and also having

0:07:57.760 --> 0:08:00.560
<v Speaker 1>a great account and a CPA who understand and real

0:08:00.680 --> 0:08:03.960
<v Speaker 1>estate to guide you to let you know, okay, if

0:08:04.000 --> 0:08:08.960
<v Speaker 1>you pay less taxes this year, if you write off

0:08:09.040 --> 0:08:11.320
<v Speaker 1>less you're going to pay X, y, and z amount

0:08:11.400 --> 0:08:15.280
<v Speaker 1>of income taxes. Is it worth it for you to

0:08:15.440 --> 0:08:17.840
<v Speaker 1>buy a house and use this income or is it

0:08:17.880 --> 0:08:20.400
<v Speaker 1>better for you just to put twenty percent down and

0:08:20.440 --> 0:08:23.400
<v Speaker 1>go with a non traditional loan where we don't need

0:08:23.760 --> 0:08:27.160
<v Speaker 1>tax returns. Right, So you have to look at both

0:08:27.240 --> 0:08:31.240
<v Speaker 1>sides of defense to see what's most beneficial to you

0:08:31.760 --> 0:08:35.000
<v Speaker 1>as that entrepreneur and trying to get into real estate.

0:08:35.640 --> 0:08:38.240
<v Speaker 4>Somebody else, ex can you have more than one FHA

0:08:38.520 --> 0:08:38.800
<v Speaker 4>at that.

0:08:38.840 --> 0:08:43.680
<v Speaker 1>Time if you meet the one hundred mile room right.

0:08:43.840 --> 0:08:49.840
<v Speaker 1>So if you buy an FHA to say duplex in Brooklyn, right,

0:08:50.520 --> 0:08:53.520
<v Speaker 1>and then you're moving to Atlanta and you want to

0:08:53.600 --> 0:08:57.960
<v Speaker 1>use FHA again to buy another duplex in Atlanta, and

0:08:58.000 --> 0:09:01.200
<v Speaker 1>you can prove that you are moving there is work related,

0:09:01.440 --> 0:09:04.679
<v Speaker 1>then yes, because it's old Brooklyn and Atlanta as well

0:09:04.720 --> 0:09:07.640
<v Speaker 1>over one hundred miles away. So that is really one

0:09:07.640 --> 0:09:11.120
<v Speaker 1>of the only circumstances that I've seen get approved when

0:09:11.160 --> 0:09:15.200
<v Speaker 1>you are looking to have multiple FAHA loans. But if

0:09:15.200 --> 0:09:20.400
<v Speaker 1>you're looking to house hack right. Prior to conventional loans

0:09:20.480 --> 0:09:23.320
<v Speaker 1>changing the guidelines about a year ago, the strategy was

0:09:23.400 --> 0:09:29.199
<v Speaker 1>by the four family use FAHA. You know, refinance into

0:09:29.200 --> 0:09:31.679
<v Speaker 1>a conventional, then go into a three family and then

0:09:31.840 --> 0:09:35.840
<v Speaker 1>use FHA again. But now that conventional allows five percent

0:09:36.000 --> 0:09:40.480
<v Speaker 1>down payment on multifamilies for your primary residence. Now you

0:09:40.480 --> 0:09:43.360
<v Speaker 1>don't really need to use FAHA more than one time.

0:09:43.880 --> 0:09:48.360
<v Speaker 1>You can now go the first property FAHA, then the

0:09:48.440 --> 0:09:51.200
<v Speaker 1>second property, which could be the three unit, Now you

0:09:51.240 --> 0:09:54.200
<v Speaker 1>can use conventional and put the five percent down because

0:09:54.240 --> 0:09:57.480
<v Speaker 1>it's now your primary residence. Right. So the strategy for

0:09:57.520 --> 0:09:59.360
<v Speaker 1>the four three to one change a little bit with

0:09:59.400 --> 0:10:02.240
<v Speaker 1>that guideline, which is which is a home run for

0:10:02.360 --> 0:10:07.439
<v Speaker 1>everybody looking the house hack. But no, you don't need

0:10:07.480 --> 0:10:10.200
<v Speaker 1>to have two FAH loans at the same time to

0:10:10.280 --> 0:10:13.280
<v Speaker 1>continue to grow your real estate portfolio using the house

0:10:13.320 --> 0:10:16.960
<v Speaker 1>hacking strategy. MG. You brought up the FAH loan.

0:10:17.040 --> 0:10:20.280
<v Speaker 3>We talked about conventional, but when we were at invest Vest,

0:10:20.960 --> 0:10:23.600
<v Speaker 3>one of the biggest seminars that people were lined up

0:10:23.600 --> 0:10:25.880
<v Speaker 3>for was the VA loans. So can you touch on

0:10:25.960 --> 0:10:27.560
<v Speaker 3>that and tell people about the benefits of that and

0:10:27.559 --> 0:10:28.880
<v Speaker 3>salute to everybody that's a veteran.

0:10:29.440 --> 0:10:32.080
<v Speaker 1>Yeah, shout out to everybody who's a veteran. You know,

0:10:32.160 --> 0:10:34.040
<v Speaker 1>I got my Pops flag right here, so I want

0:10:34.040 --> 0:10:36.160
<v Speaker 1>to show this man rest in peace, Pops man. So

0:10:36.160 --> 0:10:39.360
<v Speaker 1>shout out to all the veterans. Yeah, yeah, yeah, Mike,

0:10:39.400 --> 0:10:42.360
<v Speaker 1>I appreciate that. Shout out the pops right there. So

0:10:43.000 --> 0:10:45.720
<v Speaker 1>all all the vets, all my military folks, you got

0:10:45.760 --> 0:10:49.600
<v Speaker 1>a special place in my heart for sure, So salute

0:10:49.600 --> 0:10:51.440
<v Speaker 1>to all of y'all. But yeah, with the VA loan,

0:10:51.800 --> 0:10:54.600
<v Speaker 1>you could do a one hundred percent financing on your

0:10:54.640 --> 0:10:57.920
<v Speaker 1>primary residence. Some lenders would go down as low as

0:10:57.960 --> 0:10:59.920
<v Speaker 1>a five to eighty credit scores as well, but tip

0:11:00.480 --> 0:11:04.800
<v Speaker 1>usually six hundred to six twenties ideal, and you can

0:11:05.040 --> 0:11:09.360
<v Speaker 1>buy one to four family on the occupied properties. One

0:11:09.440 --> 0:11:11.520
<v Speaker 1>of the great things about VA loans you're going to

0:11:11.559 --> 0:11:14.959
<v Speaker 1>have great interest rates even in today's market. They're a

0:11:14.960 --> 0:11:18.040
<v Speaker 1>little bit lower than FHA, and it has no PMI

0:11:18.920 --> 0:11:22.600
<v Speaker 1>on the loan, which is a home run right. And

0:11:22.679 --> 0:11:25.800
<v Speaker 1>you can use a VA loan twice as long as

0:11:25.840 --> 0:11:31.080
<v Speaker 1>you have enough eligibility right to do so. So VA

0:11:31.440 --> 0:11:36.120
<v Speaker 1>is a terrific program. I encourage all my military folks

0:11:36.120 --> 0:11:39.760
<v Speaker 1>out there who's watching this live to please use that

0:11:39.920 --> 0:11:43.560
<v Speaker 1>VA loan. Use it to the highest and best use.

0:11:43.679 --> 0:11:45.560
<v Speaker 1>If you can get a multi family with it with

0:11:45.640 --> 0:11:48.680
<v Speaker 1>your first one go ahead, get that multi family first,

0:11:49.400 --> 0:11:51.240
<v Speaker 1>and then you can go ahead and probably get a

0:11:51.280 --> 0:11:54.320
<v Speaker 1>single family with it later on down the road. So

0:11:54.520 --> 0:11:58.080
<v Speaker 1>Va is an amazing product and I hope more people

0:11:58.600 --> 0:11:59.000
<v Speaker 1>use it.

0:12:01.240 --> 0:12:04.000
<v Speaker 4>So okay, so let's get back to the steps. But

0:12:04.040 --> 0:12:06.440
<v Speaker 4>before we get back to step last, the last detour,

0:12:06.880 --> 0:12:09.400
<v Speaker 4>you talked about the four three two one. Can you

0:12:09.480 --> 0:12:11.840
<v Speaker 4>just explain that for people that don't know what that is?

0:12:12.800 --> 0:12:15.560
<v Speaker 1>Okay, So the four to three to two one strategy

0:12:15.760 --> 0:12:18.040
<v Speaker 1>is only for the folks out there who want to

0:12:18.080 --> 0:12:20.600
<v Speaker 1>be a landlord. If you want to be a landlord

0:12:20.640 --> 0:12:23.000
<v Speaker 1>type landlord and chap, please, I want to see.

0:12:22.960 --> 0:12:24.480
<v Speaker 4>This is so, this is what this is for the

0:12:24.520 --> 0:12:25.520
<v Speaker 4>real estate investors.

0:12:25.960 --> 0:12:28.680
<v Speaker 1>This is what the real estate investors. But you're using

0:12:28.840 --> 0:12:33.040
<v Speaker 1>low down payment loans and your house hacking, meaning you

0:12:33.160 --> 0:12:37.319
<v Speaker 1>are going to live in this property for the requirements

0:12:37.360 --> 0:12:40.640
<v Speaker 1>that the guidelines are saying. You're not saying that, hey,

0:12:40.760 --> 0:12:43.280
<v Speaker 1>I'm going to live here and I don't live there.

0:12:43.520 --> 0:12:46.520
<v Speaker 1>Right here, I earn your leisure an MG, the mortgage God,

0:12:46.559 --> 0:12:49.000
<v Speaker 1>we do not participate in mortgage fraud. Let me be

0:12:49.200 --> 0:12:53.120
<v Speaker 1>very clear, Okay, we do not participate in that. Okay.

0:12:53.120 --> 0:12:55.920
<v Speaker 1>This is the disclaimer. Here, Okay, you must live in

0:12:55.960 --> 0:12:58.520
<v Speaker 1>a property for at least twelve months. That's what the

0:12:58.559 --> 0:13:01.760
<v Speaker 1>godlines state and the guidelines are in your favor two

0:13:01.800 --> 0:13:04.000
<v Speaker 1>house acts, So do it the right way so that

0:13:04.040 --> 0:13:07.200
<v Speaker 1>way you don't have the compliance police knocking on your door. Now,

0:13:07.880 --> 0:13:11.240
<v Speaker 1>the goal of this is to build your real estate portfolio.

0:13:11.440 --> 0:13:13.920
<v Speaker 1>Four unit first, if you live in an area that

0:13:14.040 --> 0:13:17.080
<v Speaker 1>has four units, live in it for a year maybe

0:13:17.120 --> 0:13:20.920
<v Speaker 1>two years. Now you don't have to refinance out of

0:13:20.920 --> 0:13:23.320
<v Speaker 1>that FAH loan. So let's people, since we started off,

0:13:23.360 --> 0:13:26.480
<v Speaker 1>we just left VA loans. Think about this. You're a veteran.

0:13:26.920 --> 0:13:29.520
<v Speaker 1>You started off with your VA loan, first one hundred

0:13:29.559 --> 0:13:34.960
<v Speaker 1>percent financing for a family. Then you go FAHA for

0:13:35.080 --> 0:13:38.320
<v Speaker 1>the next one, the three family three point five percent down.

0:13:38.679 --> 0:13:42.920
<v Speaker 1>Then the next one you can go convention them with

0:13:43.040 --> 0:13:48.280
<v Speaker 1>a duplex five percent down. And then that last property,

0:13:48.600 --> 0:13:51.560
<v Speaker 1>single family, you can go back to VA if you

0:13:51.600 --> 0:13:55.280
<v Speaker 1>have enough eligibility and get one hundred percent financing on

0:13:55.320 --> 0:13:58.520
<v Speaker 1>that one with no PMI as well. So now the

0:13:58.559 --> 0:14:01.559
<v Speaker 1>cash flow that's coming from all of these units, that

0:14:02.320 --> 0:14:05.839
<v Speaker 1>for that three and that two, which what's that seven

0:14:06.000 --> 0:14:10.400
<v Speaker 1>non units right there, can now pay for your dream

0:14:10.440 --> 0:14:13.280
<v Speaker 1>home So the purpose of the strategy is most people

0:14:13.280 --> 0:14:16.640
<v Speaker 1>when they buy their first home, they're over extending itself.

0:14:16.679 --> 0:14:19.520
<v Speaker 1>Everybody trying to keep up with the Joneses. Everybody don't

0:14:19.720 --> 0:14:21.400
<v Speaker 1>I don't know what the hell's going on these days.

0:14:21.400 --> 0:14:24.600
<v Speaker 1>Nobody believes in starter homes. Everybody wants to make mansion

0:14:24.680 --> 0:14:28.480
<v Speaker 1>right now, I just don't understand it. So instead of

0:14:28.520 --> 0:14:32.280
<v Speaker 1>you people who don't want to start a home getting

0:14:32.280 --> 0:14:35.200
<v Speaker 1>a nice little townhouse or something like that, start off

0:14:35.240 --> 0:14:38.440
<v Speaker 1>with the multifamily, build that portfolio so that way, by

0:14:38.480 --> 0:14:41.960
<v Speaker 1>time you get to that one family in four years,

0:14:42.040 --> 0:14:45.040
<v Speaker 1>five years, now you've got cash flow coming in and

0:14:45.080 --> 0:14:47.280
<v Speaker 1>you can potentially live for free. So that's on the

0:14:47.360 --> 0:14:49.360
<v Speaker 1>basis of the four to three to two bus strategy.

0:14:49.840 --> 0:14:55.760
<v Speaker 4>So for okay, let's for the people that need a

0:14:55.760 --> 0:15:00.560
<v Speaker 4>little bit more further explanation on this. Right to the time,

0:15:00.680 --> 0:15:04.360
<v Speaker 4>the American dream is to buy a home, a single

0:15:04.360 --> 0:15:08.320
<v Speaker 4>family home, right, white picket fence, the whole nine. And

0:15:08.360 --> 0:15:10.520
<v Speaker 4>people think, like, that's your dream home. They want to

0:15:10.560 --> 0:15:14.920
<v Speaker 4>drop by their dream home. But and there's some debate

0:15:14.960 --> 0:15:18.560
<v Speaker 4>on this, but a home is not technically an asset.

0:15:18.840 --> 0:15:22.760
<v Speaker 4>If it's not producing cash flow, it can actually be

0:15:22.840 --> 0:15:30.080
<v Speaker 4>a liability ken. So the idea is to say, okay,

0:15:30.160 --> 0:15:33.600
<v Speaker 4>instead of trying to buy a one family dream home

0:15:33.680 --> 0:15:38.960
<v Speaker 4>right away, buy a four family home in a not

0:15:40.400 --> 0:15:43.240
<v Speaker 4>great neighborhood, but like you know, an uppercoming neighbor because

0:15:43.520 --> 0:15:46.360
<v Speaker 4>the four family home is going to be expensive. But

0:15:46.560 --> 0:15:49.240
<v Speaker 4>usually don't even have four family homes in great neighborhoods anyway.

0:15:49.480 --> 0:15:53.160
<v Speaker 4>So you buy a four family home in a relatively

0:15:54.400 --> 0:15:59.760
<v Speaker 4>slightly dangerous neighborhood, and you live there, and you're a landlord,

0:15:59.800 --> 0:16:03.080
<v Speaker 4>and you rent those other three units out. Right Now

0:16:03.120 --> 0:16:07.400
<v Speaker 4>you establish yourself as a landlord, and you're getting rental

0:16:07.440 --> 0:16:12.560
<v Speaker 4>income from three tenants after you lived there for a

0:16:12.680 --> 0:16:16.760
<v Speaker 4>year two years, right, then you can leave rent the

0:16:16.800 --> 0:16:19.040
<v Speaker 4>other one out. Now you have four units that you're

0:16:19.080 --> 0:16:22.840
<v Speaker 4>actually getting rental income from. Now you can move to

0:16:22.880 --> 0:16:26.840
<v Speaker 4>a slightly better neighborhood. The houses will probably costs a

0:16:26.880 --> 0:16:30.600
<v Speaker 4>little bit more, but you'll have an asset that's actually

0:16:30.640 --> 0:16:34.920
<v Speaker 4>producing income that you can add to your W two

0:16:35.040 --> 0:16:38.440
<v Speaker 4>or ten to eety nine income also, and you repeat

0:16:38.480 --> 0:16:43.080
<v Speaker 4>the process, and now you have two other incomes coming

0:16:43.200 --> 0:16:46.000
<v Speaker 4>and then you you're living there. Then when you move

0:16:46.080 --> 0:16:49.360
<v Speaker 4>out after a year two years, now you have seven

0:16:49.480 --> 0:16:54.240
<v Speaker 4>and now you have seven units from four family building,

0:16:54.480 --> 0:16:59.000
<v Speaker 4>a three family building, you do the same, and a

0:16:59.000 --> 0:17:02.480
<v Speaker 4>good neighborhood in a two family home. Right, And so

0:17:02.520 --> 0:17:06.280
<v Speaker 4>by the time you've done this, it might take eight years,

0:17:06.760 --> 0:17:10.119
<v Speaker 4>but by the time you've done this process, you have

0:17:10.359 --> 0:17:16.200
<v Speaker 4>nine nine units that's producing income, and now you're able

0:17:16.359 --> 0:17:20.920
<v Speaker 4>to actually a have enough income that's coming in that

0:17:21.000 --> 0:17:22.720
<v Speaker 4>you probably don't even have to work a real job

0:17:22.720 --> 0:17:27.359
<v Speaker 4>anymore because you have nine units that's producing income, and

0:17:27.480 --> 0:17:32.400
<v Speaker 4>now you're able to move into the dream house and

0:17:32.640 --> 0:17:36.399
<v Speaker 4>you have the income from the units that's paying for

0:17:36.480 --> 0:17:39.760
<v Speaker 4>the house, as opposed to what most people do. They

0:17:39.800 --> 0:17:42.640
<v Speaker 4>move into their dream house, they don't really have enough

0:17:42.680 --> 0:17:45.760
<v Speaker 4>money to pay for it. Then they're just working every

0:17:45.760 --> 0:17:49.320
<v Speaker 4>single month to just maintain the mortgage and they don't

0:17:49.359 --> 0:17:51.480
<v Speaker 4>have enough money to invest, they don't have enough money

0:17:51.520 --> 0:17:54.199
<v Speaker 4>to buy any additional real estate. They get stuck in

0:17:54.200 --> 0:17:57.560
<v Speaker 4>a thirty year mortgage. That's not a recipe for building wealth.

0:17:57.640 --> 0:18:00.520
<v Speaker 4>That's a recipe for being in debt until you're seventy

0:18:00.560 --> 0:18:05.760
<v Speaker 4>years old. So yeah, that's kind of the ABC version

0:18:05.800 --> 0:18:08.160
<v Speaker 4>of it. But I think that that's kind of important

0:18:08.200 --> 0:18:11.200
<v Speaker 4>to like fully lay out because everybody, and I might

0:18:11.240 --> 0:18:14.960
<v Speaker 4>not get it at first, like which you know, you've

0:18:15.000 --> 0:18:17.840
<v Speaker 4>been doing this for twenty years. So some people are

0:18:17.880 --> 0:18:20.240
<v Speaker 4>just getting into real estate today, right, so they got

0:18:20.280 --> 0:18:23.040
<v Speaker 4>to kind of be read. Even how you think about

0:18:23.119 --> 0:18:25.199
<v Speaker 4>buying a home kind of has to be rewired in

0:18:25.240 --> 0:18:26.800
<v Speaker 4>your brain so you can just kind of have a

0:18:26.800 --> 0:18:27.600
<v Speaker 4>different perspective.

0:18:27.640 --> 0:18:29.560
<v Speaker 3>It definitely will change your perspective on how you look

0:18:29.560 --> 0:18:31.399
<v Speaker 3>at it. And I remember five years ago hearing you

0:18:31.440 --> 0:18:33.040
<v Speaker 3>say it, and obviously we tweeted it a little bit,

0:18:33.040 --> 0:18:35.240
<v Speaker 3>but it was mind blowing as I was sitting in

0:18:35.280 --> 0:18:37.280
<v Speaker 3>my home doing that interview. But Matt, I got it.

0:18:37.320 --> 0:18:40.040
<v Speaker 3>There's another great question. And I know the four three

0:18:40.119 --> 0:18:43.160
<v Speaker 3>two one was a great strategy, but there's another strategy

0:18:43.160 --> 0:18:44.919
<v Speaker 3>that I know you like talking about. And Terry m

0:18:45.040 --> 0:18:48.280
<v Speaker 3>asked the question. They said, I'm about to get married

0:18:48.600 --> 0:18:51.480
<v Speaker 3>own a townhouse. Can we still use my fiancee' fha

0:18:51.560 --> 0:18:54.160
<v Speaker 3>loan before we get married? And so we're talking about

0:18:54.160 --> 0:18:57.280
<v Speaker 3>two single people, two different loans before they get married.

0:18:57.560 --> 0:18:58.960
<v Speaker 3>I know this is one of those topics you love

0:18:59.000 --> 0:18:59.560
<v Speaker 3>talking about.

0:19:00.119 --> 0:19:03.920
<v Speaker 1>Yeah, go for it then, yeah, I mean divide and conquer, right,

0:19:04.520 --> 0:19:09.080
<v Speaker 1>I definitely love that strategy and congratulations to you, guys,

0:19:09.400 --> 0:19:12.320
<v Speaker 1>But I would say before you tie to not if

0:19:12.359 --> 0:19:18.439
<v Speaker 1>you each can qualify for your own property and it

0:19:18.560 --> 0:19:21.280
<v Speaker 1>be your own occupied. You live in one, he lives

0:19:21.280 --> 0:19:23.760
<v Speaker 1>in one until you get married, then I think it's

0:19:23.840 --> 0:19:29.280
<v Speaker 1>a great way to start your life together. Right now,

0:19:29.400 --> 0:19:33.000
<v Speaker 1>you buy a multifamily, he buys a multifamily. You each

0:19:33.119 --> 0:19:38.040
<v Speaker 1>use FAHA if you both can qualify independently of each

0:19:38.080 --> 0:19:43.439
<v Speaker 1>other and build your folio that way. So now, if

0:19:43.480 --> 0:19:46.000
<v Speaker 1>you can start with a three or four even a duplex.

0:19:46.119 --> 0:19:47.879
<v Speaker 1>Right say you live in an area that doesn't have

0:19:47.920 --> 0:19:50.320
<v Speaker 1>three or fours, you start with a duplex. You get

0:19:50.320 --> 0:19:54.119
<v Speaker 1>a duplex, he gets a duplex. Now you have four units.

0:19:54.200 --> 0:19:56.920
<v Speaker 1>Now you have cash flow coming in that could potentially

0:19:56.920 --> 0:20:00.320
<v Speaker 1>pay for now your dream home as well. Now, one

0:20:00.359 --> 0:20:03.760
<v Speaker 1>of the great things about buying a multifamily, especially with

0:20:03.920 --> 0:20:07.960
<v Speaker 1>FHA loans, guys, the rental income. The market rental income

0:20:08.480 --> 0:20:12.000
<v Speaker 1>can be used to help you qualify. Lenders will use

0:20:12.160 --> 0:20:15.880
<v Speaker 1>seventy five percent of that rental income. So for example,

0:20:15.920 --> 0:20:19.119
<v Speaker 1>if the gross rental income is one thousand dollars, a

0:20:19.240 --> 0:20:22.080
<v Speaker 1>lender will use seven hundred and fifty dollars as income

0:20:22.440 --> 0:20:25.040
<v Speaker 1>to help you qualify. Forward now. I saw in the

0:20:25.080 --> 0:20:29.240
<v Speaker 1>comments go while ago someone was asking about Airbnb income

0:20:29.320 --> 0:20:32.679
<v Speaker 1>and does lenders like Airbnb income with these multifamilies. Their

0:20:32.760 --> 0:20:36.639
<v Speaker 1>question is no, The lending landscape has not caught up

0:20:36.680 --> 0:20:39.560
<v Speaker 1>to the times that we are in down to allow

0:20:39.720 --> 0:20:44.400
<v Speaker 1>Airbnb is very unstable. So what lenders are always going

0:20:44.400 --> 0:20:48.159
<v Speaker 1>to use right now, guys, is market rent right, not

0:20:49.080 --> 0:20:51.840
<v Speaker 1>rent that you're going to get from Airbnb or if

0:20:51.880 --> 0:20:54.280
<v Speaker 1>you got to make in your house a content space

0:20:54.440 --> 0:20:57.439
<v Speaker 1>or anything like that. The guidelines have not caught up

0:20:57.480 --> 0:21:01.359
<v Speaker 1>to that. But divide and conquer is a great, a

0:21:01.560 --> 0:21:05.360
<v Speaker 1>great strategy for all you couples out here who want

0:21:05.400 --> 0:21:08.840
<v Speaker 1>to be landlords and grow your real estate portfolio.

0:21:09.080 --> 0:21:12.720
<v Speaker 5>An illegal alien from Guatemala charged with raping a child

0:21:12.760 --> 0:21:16.520
<v Speaker 5>in Massachusetts. An MS thirteen gang member from Al Salvador

0:21:16.800 --> 0:21:20.919
<v Speaker 5>accused of murdering a Texas. Man of Venezuelan charged with

0:21:21.000 --> 0:21:24.879
<v Speaker 5>filming and selling child pornography in Michigan. These are just

0:21:25.000 --> 0:21:28.760
<v Speaker 5>some of the heinous migrant criminals caught because of President

0:21:28.760 --> 0:21:32.320
<v Speaker 5>Donald J. Trump's leadership. I'm Christy nom the United States

0:21:32.359 --> 0:21:37.159
<v Speaker 5>Secretary of Homeland Security. Under President Trump, attempted illegal border

0:21:37.200 --> 0:21:40.760
<v Speaker 5>crossings are at the lowest levels ever recorded, and over

0:21:40.800 --> 0:21:44.040
<v Speaker 5>one hundred thousand illegal aliens have been arrested. If you

0:21:44.119 --> 0:21:47.960
<v Speaker 5>are here illegally, your next you will be fine nearly

0:21:48.040 --> 0:21:52.080
<v Speaker 5>one thousand dollars a day, imprisoned, and deported. You will

0:21:52.080 --> 0:21:55.760
<v Speaker 5>never return. But if you register using our CBP home

0:21:55.800 --> 0:21:59.160
<v Speaker 5>app and leave now, you could be allowed to return legally.

0:21:59.520 --> 0:22:04.240
<v Speaker 5>Do what's right. Leave now. Under President Trump America's laws,

0:22:04.440 --> 0:22:06.439
<v Speaker 5>border and families.

0:22:06.040 --> 0:22:08.440
<v Speaker 1>Will be protected. Sponsored by the United States Department of

0:22:08.480 --> 0:22:09.120
<v Speaker 1>Homeland Security,