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Speaker 2: It's a crazy time that we're living in. Everybody knows

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Speaker 2: obviously we in. You know the age of Corona, and

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Speaker 2: I remember texting you like when when Corona first hit.

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Speaker 2: I'm like, yo, that's when the stock market was crashing,

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Speaker 2: and I'm like, there's real estate market about the crash,

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Speaker 2: and he was like, nah, it's not And I'm like,

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Speaker 2: how people were losing their jobs, stock markets crashing, people

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Speaker 2: can't go to work, like all the writings on the

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Speaker 2: wall for another two thousand and eight to happen, and

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Speaker 2: you was like, nah, commercial real estate might be in trouble,

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Speaker 2: but residential real estate, I'm like, all right, we'll see.

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Speaker 2: And then to this day, it hasn't crashed. It's actually

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Speaker 2: going up. In most most places in America. The price

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Speaker 2: the home prices have actually going up. It's a shortage

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Speaker 2: of our inventory on the marketplace. So where we're at

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Speaker 2: right now as far as the state of real estate

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Speaker 2: in the United States of America.

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Speaker 3: The market is on fire for residential you know. And

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Speaker 3: I told you this back in March. I said, nah, bro,

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Speaker 3: it's not going to happen because with people and everybody

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Speaker 3: was kind of saying the same thing, like, yo, two

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Speaker 3: thousand and eight is coming back. Wait, don't buy weight,

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Speaker 3: And I said two thousand and eight was different. That

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Speaker 3: was a credit crisis, right, This is a health crisis.

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Speaker 3: Credit crisis means that banks, Wall streeters, everybody, homeowners, you know, investors,

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Speaker 3: everybody was greedy, you know, appraisers, everybody, right, So when

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Speaker 3: the market crashed, the government was reluctant on trying to

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Speaker 3: save everybody. They didn't want to bail out everybody, but

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Speaker 3: they had no choice but to bail out the big names. Right.

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Speaker 3: So with this one, I said, now, this is health

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Speaker 3: This has nothing to do with nobody. This is nobody's fault.

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Speaker 3: And if you think about it, if you look at

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Speaker 3: the real estate market going into twenty twenty, it was

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Speaker 3: already on fire. It was due for a correction at

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Speaker 3: some point, because what goes up must come down, right,

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Speaker 3: But I said, nah, this is not going to crash.

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Speaker 3: There's no way, because the government is going to have

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Speaker 3: to bail out everybody now, right from the big businesses

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Speaker 3: to the everyday person. And when you told me that

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Speaker 3: it's going to crash, that's what was in my mind

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Speaker 3: because I knew, especially with the election year, they couldn't

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Speaker 3: just let all these people die, people lose their homes.

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Speaker 3: There's no way. And as you see, all these stimulus

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Speaker 3: packages came out, everybody getting their ppe money and everything.

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Speaker 4: It was recklessly and hopefully they wasn't reckless.

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Speaker 3: Hopefully they wasn't reckless, and hopefully they did the right thing.

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Speaker 3: But you know, you have unemployment benefits, people are getting

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Speaker 3: them with ease, with no problem. So you know, you

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Speaker 3: got to give the administration credit for what they tried

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Speaker 3: to do to help as many people as possible. And

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Speaker 3: that's why I just didn't feel like the market was

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Speaker 3: going to crash. But residential real estate is on fire

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Speaker 3: right now all over the country. There's thirty forty offers

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Speaker 3: on one house, you know, So if you're a seller

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Speaker 3: right now, if you're thinking about selling your home to

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Speaker 3: upgrade or downsize, this is the time for the sellers

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Speaker 3: right now, because they're going to get twenty thirty percent

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Speaker 3: above asking price in some markets right now because it's

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Speaker 3: just too hot right now. It's too many buyers out there,

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Speaker 3: and with these low interest rates, you know, or rates

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Speaker 3: being in the mid twos to low threes, depending on

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Speaker 3: your circumstance, Like everybody wants to buy a house because

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Speaker 3: money is cheap now, right so it's easy to the

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Speaker 3: person who couldn't afford the half a million dollar house

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Speaker 3: last year when rates were three and a half four percent,

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Speaker 3: now it's two and a half.

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Speaker 2: Can can you explain like that? Like, because the average

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Speaker 2: person that maybe never brought a home might not fully

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Speaker 2: appreciate because they say three and a half, two and

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Speaker 2: a half, it's only one percent, that's not that big

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Speaker 2: of a deal. But because they looking at it like

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Speaker 2: it's stocks, like it's like if you earn one percent,

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Speaker 2: you know what I'm saying, or just regular life, one

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Speaker 2: percent doesn't move the needle. But in your world of

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Speaker 2: mortgage is one percent is huge. Right, So if you

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Speaker 2: kind of put that in perspective out.

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Speaker 3: Here, I mean, look, one percent depending on your loan amount, right,

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Speaker 3: that can be three four five hundred dollars a month.

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Speaker 3: That could be six thousand, eight thousand, ten thousand a year,

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Speaker 3: depending on the size of your loan. Right. So the

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Speaker 3: big of the loan, the low a rate, the cheap

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Speaker 3: of the payment. Right. So someone again who couldn't afford

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Speaker 3: the five hundred thousand dollars home or get pre approved

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Speaker 3: for a five hundred thousand dollar home a year ago

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Speaker 3: because the rate was probably three and a half to

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Speaker 3: four percent, now they're able to because now that brings

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Speaker 3: their payment down and they're able to get approved for

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Speaker 3: now that higher amount. So one percent is huge in

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Speaker 3: the real estate in the mortgage world, interest that you're

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Speaker 3: gonna pay over the life of the loan is also

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Speaker 3: very important too, because if you're looking at any house

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Speaker 3: that you buy, let's face it, right, the way the

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Speaker 3: mortgage in the banking system is set up, it's you know,

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Speaker 3: you're gonna pay interest three times more than what the

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Speaker 3: houses actually work. But if you're getting a cheaper interest rate,

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Speaker 3: that softens the blow a little bit, and now you

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Speaker 3: can focus on your debt strategy, which is repaying back

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Speaker 3: your debt and trying to beat that interest trap. You

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Speaker 3: know what I'm saying, and you know little things you

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Speaker 3: can do to do that. You can make one extra

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Speaker 3: payment a year and you can pay off your loan

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Speaker 3: in twenty two and a half years if you have

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Speaker 3: a thirty year mortgage. Know what I tell folks all

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Speaker 3: the time, take your income taxes refunds right and apply

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Speaker 3: that every single year to your principal balance. That could

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Speaker 3: bring down your debt. You can do as little as

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Speaker 3: one hundred dollars a month to your principal balance and

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Speaker 3: you'll be surprised how much interest you'll save on your mortgage,

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Speaker 3: especially if you plan on living in the house the

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Speaker 3: long term, the full term of thirty years you don't

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Speaker 3: want to just make your regular payment because you're gonna

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Speaker 3: pay you know, on a three hundred, four hundred thousand

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Speaker 3: dollars home, you may pay back eight hundred thousand.

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Speaker 2: Now that was a gym, what you just said. And

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Speaker 2: I learned that in business. I don't want that to

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Speaker 2: go people's head. When I first got into into the

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Speaker 2: industry working in finance, I learned that like one extra

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Speaker 2: payment a year on your mortgage cut seven years off

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Speaker 2: of your mortgage.

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Speaker 3: Absolutely, or eight seven, eight twenty two and a half years.

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Speaker 2: Yeah, so that's that's huge if you really think about it.

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Speaker 2: It's like one extra payment a year absolutely can really

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Speaker 2: take almost a decade off, like.

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Speaker 3: Basically, and it has to be towards your principal balance only.

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Speaker 3: So if you're making a payment, you can't just give

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Speaker 3: the bank money because they're automatically going to apply it

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Speaker 3: to interest, right, because you have to direct them where

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Speaker 3: you want that money to go.

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Speaker 5: How does that even look?

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Speaker 4: So if my mortgage is three thousand, I gotta pay

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Speaker 4: six thousand if I'm doing it.

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Speaker 3: Yeah, So if your mortgage is three, you can pay

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Speaker 3: six and you can tell them the difference to go

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Speaker 3: to principal balance only. Some online everything's online right now

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Speaker 3: with all the banks, right so you can go pay

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Speaker 3: your mortgage and you can specify their two principal balance only.

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Speaker 3: You can write a check, put on a check two

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Speaker 3: principal balance only. So, depending on how you pay your mortgage,

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Speaker 3: do that. And if it's not an online option to

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Speaker 3: pay extra, call the service and lender that you're paying

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Speaker 3: your mortgage too, and figure out a way to accomplish

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Speaker 3: that goal. Maybe they can just do automatic drafts from

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Speaker 3: your account something like that and set it up to

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Speaker 3: where you can make that extra payment, you know, and

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Speaker 3: you'll be surprised if you make two payments extra year.

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Speaker 4: That's what in my mind, I'm thinking that if I

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Speaker 4: make two extra pas now that seven ers of the fourteen,

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Speaker 4: I'm really at a fifteen year.

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Speaker 3: Mortgage basically, And I'm glad you brought up fifteen year

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Speaker 3: mortgages right, especially right now folks want to go into

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Speaker 3: fifteen year loans and look, the fifteen year rate. The

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Speaker 3: lowest I've seen it since we've been in COVID was

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Speaker 3: around two percent, which is phenomenais, right, that's incredible. But

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Speaker 3: what I try to tell people is maybe not going

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Speaker 3: to that fifteen year right now, because life happens, right,

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Speaker 3: you're committing yourself to a much higher payment, and what if,

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Speaker 3: you know, COVID twenty one comes God forbid and it's worse,

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Speaker 3: worse strained than this. Now you're committing yourself to that

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Speaker 3: higher payment just to try to pay it all early,

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Speaker 3: when you could have went to a thirty year, had

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Speaker 3: a cheaper payment, and just manage your principal balance yourself

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Speaker 3: that way, you're not committed to that fifteen year term

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Speaker 3: or that twenty year term. You stay with the cheapest

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Speaker 3: possible payment, but still you're paying down your debt, you

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Speaker 3: know so, And I'm not against year mortgages. I think

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Speaker 3: for the right people it works, right people who have

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Speaker 3: substantial income and they can really afford the payment. But

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Speaker 3: most people are trying to pay off their loan fast,

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Speaker 3: which I get, but they're now cash strap, right, They're

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Speaker 3: becoming house rich and cash poor because they're making their

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Speaker 3: payment so much higher because they're just focusing on I

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Speaker 3: just want to get rid of it, which again I understand,

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Speaker 3: but you got to be a little bit smarter right now,

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Speaker 3: because anything could happen. As we've seen, we woke up

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Speaker 3: in twenty twenty, Kobe dead with God bless you know,

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Speaker 3: then COVID came. Like this year has been crazy, you

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Speaker 3: know what I'm saying. So like, if this doesn't teach

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Speaker 3: anybody anything, you got to have cash flow right now.

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Speaker 3: You got to have liquidity because anything can happen. So

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Speaker 3: that's why I just try to tell home own future

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Speaker 3: homeowners and current homeowners who are refinancing, if you don't

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Speaker 3: have to go to the fifteen year, just stay with

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Speaker 3: the twenty or thirty years, so that way you can

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Speaker 3: have a little bit more cash flow.

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Speaker 4: Can I go back to something you said, because when

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Speaker 4: you say, I'm like, oh, how does that work? Because

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Speaker 4: I've heard of corrections obviously in the stock market, and

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Speaker 4: we know that's maybe eight to ten percent or eighteen percent.

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Speaker 4: What does that look What does the correction look like

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Speaker 4: in the real estate world? Is that interest rates go up? Like,

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Speaker 4: what is the correction in the real estate world?

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Speaker 3: I mean it could be rates go up, It could

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Speaker 3: be home prices depreciate, you know, it could be lenders

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Speaker 3: tightening up their guidelines. You know, all of these things

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Speaker 3: could be corrections in the market that can affect the

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Speaker 3: buying power of Americans. Right, if home prices decline like

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Speaker 3: you thought it was, I mean, it sucks, but what

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Speaker 3: goes up must come down at some point. Right. So

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Speaker 3: that's why over leveraging is not over leveraging is key,

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Speaker 3: you know. And this is why I talk a lot

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Speaker 3: about rehabs, rehab loans, and things of that nature, because

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Speaker 3: I want first time home buyers to think like investors.

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Speaker 3: When you're buying these homes, buy them the same way

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Speaker 3: that you'll see a Caesar by them, or Envy buy them,

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Speaker 3: or any investor that you guys are following online by

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Speaker 3: the same way they're buying. You know, there's nothing special

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Speaker 3: about anybody who's flipping real estate or doing anything. They

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Speaker 3: just have more knowledge than you, and they know where

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Speaker 3: to look and where to find these properties. You can

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Speaker 3: do the same thing. The information is available, you know,

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Speaker 3: there's no excuse. It's not like ten fifteen years ago

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Speaker 3: when I first came into business, there was no social media. Right,

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Speaker 3: you can hashtag and follow a hashtag and you'll see

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Speaker 3: hundreds of people flipping houses and they're giving you all

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Speaker 3: this information. So now you just got to apply it.

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Speaker 3: And if you're a first time home by it, there's

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Speaker 3: so many different programs out there for you to get

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Speaker 3: the rehab money to be able to now buy a

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Speaker 3: home that's undervalue. Put that money into it, force the appreciation,

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Speaker 3: and now you have equity in that home, and God

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Speaker 3: forbid the house does depreciate. You still good because if

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Speaker 3: you lose ten percent equity because the market is declining

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Speaker 3: five percent equity, you're not over leverage. You're not upside down.

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Speaker 3: So I try to promote don't buy retail if you

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Speaker 3: don't have to, But I understand you have to in

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Speaker 3: some cases buy retail because the school districts, family needs,

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Speaker 3: things of that nature, don't have a choice. But still

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Speaker 3: try to buy the ugliest house in the best neighborhood.

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Speaker 2: So let me ask you this because you know, obviously

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Speaker 2: you said that it's a seller's market, absolutely what interest

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Speaker 2: rates are extremely low right now, so that would say

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Speaker 2: it would be better.

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Speaker 5: It's good for the buyer so.

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Speaker 3: To get along, but it's great for the seller because

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Speaker 3: they're going to have multiple offers on their home.

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Speaker 2: Okay, So for people that's looking at maybe purchase a home,

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Speaker 2: is this a good time to or should it? Because like,

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Speaker 2: all right, average, like let's say somebody hasn't brought a

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Speaker 2: home yet, and they looking at it like, all right,

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Speaker 2: I got some money saved and low interest rates, it's

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Speaker 2: a good time for me to buy a home. But

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Speaker 2: if it's a seller's market, should they be looking to

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Speaker 2: buy a home or should they just be waiting for

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Speaker 2: it to be a buyer's market?

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Speaker 5: Again?

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Speaker 3: Good question, right, So this is what I tell everybody.

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Speaker 3: If you have financial security, if you have down payment,

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Speaker 3: closing costs and reserves, and you have the knowledge and

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Speaker 3: your mindset is right and everything is where it needs

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Speaker 3: to go, you have your team, and if your goal

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Speaker 3: in twenty twenty prior to COVID was to purchase, then

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Speaker 3: I personally believe you should still purchase, right because the

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Speaker 3: money is dirt cheap. Now on the flip side, should

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Speaker 3: you wait till the quote unquote buyers market come and

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Speaker 3: the homes depreciate? When the hell is that going to be?

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Speaker 3: No one has a crystal ball that could come five

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Speaker 3: years from now, and then the race could be seven

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Speaker 3: percent then, So like, I don't care if the homes

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Speaker 3: go down ten fifteen percent, but now I'm paying seven

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Speaker 3: percent on the money, right, So you got to look

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Speaker 3: at the whole opportunity costs for yourself of what's going

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Speaker 3: to be best for you. Everybody's going to have an

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Speaker 3: opinion on this, right, everybody has. Everybody's an expert, everybody's

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Speaker 3: an economist, you know what I'm saying. Like everybody knows

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Speaker 3: when the crash is going to happen. People will say, oh,

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Speaker 3: the foreclosure craze on waver is going to happen next year.

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Speaker 3: How do you know that? How do you know that?

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Speaker 3: No one knows. You know what I'm saying. So for me,

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Speaker 3: if you're financially secure and you want to buy real

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Speaker 3: estate and you want to get in the game and

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Speaker 3: you want to invest, then invest.

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Speaker 5: Do it.

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Speaker 3: Just be smart about it. Take it to because iteration.

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Speaker 3: If you're buying rental properties, make sure you're doing your

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Speaker 3: due diligence. If it has tenants in the property, make

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Speaker 3: sure you ask it for proof that they're paying. You

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Speaker 3: know what I'm saying, Because anybody can tell you anything. Yeah,

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Speaker 3: I got three tenants in here, they're all good. Okay,

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Speaker 3: show me the proof, home seller. You know what I'm saying.

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Speaker 3: Let me see two to three months of your bank

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Speaker 3: statement showing these deposits going in. Show me the proof,

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Speaker 3: be smart, and that's what it's all about, doing your

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Speaker 3: due diligence and applying that information and going out there

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Speaker 3: and executing at a high level, and being a CEO

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Speaker 3: of your real estate business. Even if it's your first home,

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Speaker 3: it doesn't matter. You still got to be a CEO.

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Speaker 3: You can't be out here emotional. And I think I

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Speaker 3: said that on the last episode two, and I've been

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Speaker 3: saying it's pretty much my whole career because at one

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Speaker 3: point I was emotional when I was buying homes. I

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Speaker 3: wasn't really looking at numbers. I was just happy to

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Speaker 3: be able to buy real estate, and I made a

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Speaker 3: lot of bad decisions, which you know, I share with

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Speaker 3: you guys that just paid for Like it was bad

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Speaker 3: decisions and I just had to pay for it, and

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Speaker 3: it sucks. But these were lessons and this is why

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Speaker 3: my message my message, and I try to educate everybody

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Speaker 3: to tell them, like, look, you just got to do

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Speaker 3: the numbers, and don't be scared. Just be sharp and

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Speaker 3: understand on what you're doing, but don't worry about what

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Speaker 3: could have, should have or what can happen, because if

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Speaker 3: it's going to happen, everything's going to happen in God's

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Speaker 3: time anyway, it's nothing you can do about it. So

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Speaker 3: just be smart to have your reserves and be prepared

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Speaker 3: for the worst. You know what Ian said, you need

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Speaker 3: five five years of reserves sixty months. It's like you

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Speaker 3: know what I'm saying. So like many people ain't in

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Speaker 3: that position to have five years. But if you lose

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Speaker 3: using your last dollar to buy real estate, then you're

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Speaker 3: playing yourself. You're really playing yourself. You should not be

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Speaker 3: house rich and cash Paul like, you have to do

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Speaker 3: your due diligence.

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Speaker 5: So it's up earnest.

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Speaker 5: Yeah.

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Speaker 4: One of the other things you said on episode twelve

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Speaker 4: was that the equity in your home is monopoly money. Correct,

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Speaker 4: And I feel like maybe thousands of people must have

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Speaker 4: heard that right because the refive rates have been low

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Speaker 4: and thousands of America's been doing it right. So what

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Speaker 4: has that been like for your business during Corona?

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Speaker 3: Well, it is a pandemic. Some people call it a

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Speaker 3: pandemic plandemic. I'm calling it a pandemic because right now,

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Speaker 3: if you're in a real estate industry, God bless you,

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Speaker 3: you know, and you're having record breaking years all across

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Speaker 3: the board in the industry, from the appraisers to the

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Speaker 3: realtors to shit, even the loan processors and loan assistance.

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Speaker 3: They're levering up their bag because it's so much volume

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Speaker 3: that companies need to hire. And now, look, I ain't

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Speaker 3: gonna tell all my business, but I had to pay

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Speaker 3: some people some money that I never thought I would

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Speaker 3: have to pay them to come work for me right

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Speaker 3: because you need talent right now because there's so much

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Speaker 3: volume coming in. It's not enough bodies in the real

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Speaker 3: estate industry to handle the amount of people who want

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Speaker 3: to do a refinance right now or buy a house.

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Speaker 3: It's absolutely incredible. So what is done for my business

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Speaker 3: is blowing up. It's a great thing. I love it,

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Speaker 3: but it's also overwhelming. It's stressful, like you're dealing with

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Speaker 3: people's lives and that's never an easy thing when you're

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Speaker 3: trying to help someone either save money on their mortgage,

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Speaker 3: pull money out to go buy other real estate, then

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Speaker 3: helping them do those transactions, so you know, it's late night,

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Speaker 3: early mornings, lack of sleep, you know, lack of time

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Speaker 3: spending at home with the fam and everything like that.

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Speaker 3: It's a lot right now, so a lot of things

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Speaker 3: being sacrificed, and it's for the greater good obviously, but

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Speaker 3: it's a lot man. So yeah, you're making money, but

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Speaker 3: it's also a lot of responsibility that comes with it

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Speaker 3: because you're trying to service so many people. It gets

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Speaker 3: overwhelmings and that's important. Having that balance.

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Speaker 4: We talk about that a lot, just having.

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Speaker 3: Balance in your life.

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Speaker 4: And like we've been watching the news and it looks

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Speaker 4: like the races are going to stay that way for

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Speaker 4: a while.

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Speaker 3: So this is going to be business, you know, God willing,

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Speaker 3: you know, race will stay low. Me personally, I hope

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Speaker 3: they do go back up a little bit, slow things down.

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Speaker 3: That's just me, you know what I'm saying. I'd rather

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Speaker 3: go up a little bit, get rid of some of

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Speaker 3: these people so we can all breathe and get back

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Speaker 3: to regular life so to speak. In our world. You know,

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Speaker 3: the mortgage businesses set the break records this year in

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Speaker 3: twenty twenty. Trillions of dollars are being went in twenty twenty. Like,

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Speaker 3: I can't wait till the final number it's talied up

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00:19:06,080 --> 00:19:08,280
Speaker 3: to just see what what the mortgage business did. But

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Speaker 3: it's it's incredible right now, what we're on pace to

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00:19:11,280 --> 00:19:13,199
Speaker 3: do right now. It's a couple of trillion dollars. Like

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00:19:13,359 --> 00:19:15,720
Speaker 3: I don't think people understand that it's a lot of

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Speaker 3: money being lent. And people think COVID and quarantines slowed

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00:19:20,119 --> 00:19:22,840
Speaker 3: things or stopped anything. They didn't stop anything. It may

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00:19:22,880 --> 00:19:26,159
Speaker 3: have slowed certain components down, like appraisals, getting tied of

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00:19:26,240 --> 00:19:29,280
Speaker 3: reports and things of that nature. But it didn't slow nothing.

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00:19:29,320 --> 00:19:31,560
Speaker 3: Now people are buying homes. And that's why I tell

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00:19:31,760 --> 00:19:34,800
Speaker 3: folks over time, if you're looking to buy, buy, what

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00:19:34,840 --> 00:19:37,560
Speaker 3: are you waiting for? Go ahead? Because your opportunity may

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00:19:37,600 --> 00:19:38,120
Speaker 3: not be there.

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Speaker 5: Yeah, so let me ask you this.

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Speaker 2: As far as this is a business show, so a

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Speaker 2: lot of people that listen to ernalisia Is are entrepreneurs

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Speaker 2: or aspiring entrepreneurs. One of the hardest things for entrepreneurs,

415
00:19:49,840 --> 00:19:52,639
Speaker 2: business people ten ninety nine, contractors, things of that nature

416
00:19:53,080 --> 00:19:55,000
Speaker 2: is to buy a home because it's like a lot

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00:19:55,000 --> 00:19:56,960
Speaker 2: of times it's one of the benefits of being business

418
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Speaker 2: owners that you get to write.

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Speaker 5: Off a lot.

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Speaker 2: Absolutely, but the problem with that when it comes to

421
00:20:01,040 --> 00:20:03,360
Speaker 2: getting a mortgage is that you don't show enough income.

422
00:20:03,920 --> 00:20:05,920
Speaker 2: So now it's like, you know, you're in a tough

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00:20:05,960 --> 00:20:09,160
Speaker 2: spot because, yeah, you might have made two hundred thousand dollars,

424
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Speaker 2: but you're only paying taxes on twenty thousand.

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Speaker 3: No blessed Americans.

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Speaker 5: Like that, or seven hundred and fifty.

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00:20:19,280 --> 00:20:27,040
Speaker 3: Dollars yea, yeah, yeah one eight beautiful beautiful old living.

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Speaker 2: So but yeah, it's like it's hard to get a mortgage,

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00:20:30,320 --> 00:20:33,119
Speaker 2: but you was actually enlightened me, Like there's different programs

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00:20:33,480 --> 00:20:36,960
Speaker 2: for business owners, like especially like bank statement loan things

431
00:20:36,960 --> 00:20:39,359
Speaker 2: that you could We haven't really covered that.

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Speaker 5: Can you talk about that?

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00:20:40,720 --> 00:20:43,600
Speaker 3: Yeah, So you have loans out there that fall into

434
00:20:43,640 --> 00:20:47,520
Speaker 3: that non QM category, non qualified mortgage. It basically means

435
00:20:47,520 --> 00:20:51,480
Speaker 3: Fanny Mae or Freddie Mack who buys conventional loans from banks, right,

436
00:20:51,520 --> 00:20:54,240
Speaker 3: they won't purchase this type of loan, but there's private

437
00:20:54,320 --> 00:20:57,919
Speaker 3: lenders out there that will fund bank statement loans whereas

438
00:20:57,960 --> 00:21:00,240
Speaker 3: you can put as little as ten percent down. You

439
00:21:00,280 --> 00:21:02,800
Speaker 3: can borrow up to four million dollars with this type

440
00:21:02,840 --> 00:21:05,800
Speaker 3: of loan, and we're using the deposits as your income

441
00:21:05,840 --> 00:21:08,800
Speaker 3: for your business. So you can use either twelve months

442
00:21:09,000 --> 00:21:12,199
Speaker 3: or twenty four months of those deposits in your business

443
00:21:12,280 --> 00:21:15,520
Speaker 3: bank account and that can be used to qualify you

444
00:21:15,560 --> 00:21:17,679
Speaker 3: for your loans. So it's no tax returns, there's no

445
00:21:17,960 --> 00:21:20,840
Speaker 3: W two's obviously because you're self employed. We're not looking

446
00:21:20,840 --> 00:21:22,520
Speaker 3: at any of that stuff. We just need to see

447
00:21:22,560 --> 00:21:25,760
Speaker 3: twelve months of your business bank statements and we use

448
00:21:25,840 --> 00:21:28,160
Speaker 3: that for your income to qualify, and you can put

449
00:21:28,200 --> 00:21:30,399
Speaker 3: down as little as ten percent with these loans.

450
00:21:30,920 --> 00:21:31,840
Speaker 5: How's the interest rates?

451
00:21:31,920 --> 00:21:33,840
Speaker 3: Oh yeah, the rich interest rate you're gonna pay for it,

452
00:21:34,440 --> 00:21:37,520
Speaker 3: like you're gonna pay like, You're gonna talk probably like

453
00:21:37,560 --> 00:21:41,960
Speaker 3: in the right now six to eight percent range, depending

454
00:21:42,000 --> 00:21:44,639
Speaker 3: on the lender, you know what I'm saying. And you know,

455
00:21:44,680 --> 00:21:47,040
Speaker 3: when you're talking six you're probably going to have to

456
00:21:47,080 --> 00:21:50,560
Speaker 3: be more thirty percent thirty five percent down, you know,

457
00:21:51,359 --> 00:21:54,919
Speaker 3: high credit no minimum credit score for this program six sixty.

458
00:21:55,880 --> 00:21:57,840
Speaker 3: But you want to get that lower rate, you're going

459
00:21:57,880 --> 00:22:00,399
Speaker 3: to have to probably be in the high sevens with

460
00:22:00,480 --> 00:22:03,359
Speaker 3: a larger down payment. But if you're talking ten percent down,

461
00:22:04,200 --> 00:22:07,560
Speaker 3: you know, jumbo bank statement loan, you're probably gonna get

462
00:22:08,000 --> 00:22:09,840
Speaker 3: collaborated for like seven and a half percent.

463
00:22:10,240 --> 00:22:11,320
Speaker 5: Can you refinance later?

464
00:22:11,480 --> 00:22:15,119
Speaker 3: Absolutely? You can always refinance. Right, And here's another gym.

465
00:22:15,480 --> 00:22:19,080
Speaker 3: If you use the bank statement program and you get

466
00:22:19,080 --> 00:22:22,560
Speaker 3: into let's just say you're raighted seven percent. Right, file

467
00:22:22,600 --> 00:22:25,960
Speaker 3: your taxes and your business has been in business for

468
00:22:26,080 --> 00:22:29,960
Speaker 3: five years, like legally in business, right, Like you have

469
00:22:30,000 --> 00:22:33,919
Speaker 3: your filing receipt in this document. Freddie Mac has a

470
00:22:33,960 --> 00:22:37,280
Speaker 3: program where you can use one year tax returns as

471
00:22:37,280 --> 00:22:40,160
Speaker 3: a business owner. Right. So now this is a conventional loan.

472
00:22:40,200 --> 00:22:42,520
Speaker 3: So you can refinance into the conventional loan. Just file

473
00:22:42,520 --> 00:22:46,400
Speaker 3: your taxes the right way, show the income. Now pay

474
00:22:46,440 --> 00:22:50,120
Speaker 3: the tax the tax man they what you owe them,

475
00:22:50,240 --> 00:22:52,560
Speaker 3: or get into a payment arrangement so that way you

476
00:22:52,600 --> 00:22:56,320
Speaker 3: have a monthly payment on your tax bill that's outstanding.

477
00:22:56,960 --> 00:23:00,800
Speaker 3: We include that tax payment into your debt to income ratio.

478
00:23:00,920 --> 00:23:03,119
Speaker 3: And now you can use one year your TAXI terms

479
00:23:03,240 --> 00:23:05,200
Speaker 3: and you don't those negative tax with terms. We don't

480
00:23:05,200 --> 00:23:06,879
Speaker 3: even have to look at it. So you can just

481
00:23:06,960 --> 00:23:09,920
Speaker 3: use the one year and then refinance into a conventional loan.

482
00:23:10,040 --> 00:23:11,359
Speaker 3: After you do the bank statement loan.

483
00:23:11,400 --> 00:23:12,639
Speaker 4: How long you have to stay in the property.

484
00:23:13,880 --> 00:23:16,480
Speaker 3: If you're doing a primary residence, it's one year I

485
00:23:16,520 --> 00:23:19,199
Speaker 3: can perceive. But obviously Banks namer loans is not just

486
00:23:19,240 --> 00:23:21,879
Speaker 3: for primary residents. You can do vacation homes with it,

487
00:23:21,960 --> 00:23:23,160
Speaker 3: you can do investing properties.

488
00:23:23,160 --> 00:23:25,480
Speaker 2: What it is well, but that's that's that's big, especially

489
00:23:25,480 --> 00:23:26,960
Speaker 2: for business owners because if you compare, it's like a

490
00:23:26,960 --> 00:23:27,520
Speaker 2: hard money.

491
00:23:27,880 --> 00:23:30,200
Speaker 5: Hard money's like ten percent, yeah, hard money.

492
00:23:30,280 --> 00:23:32,720
Speaker 3: Right now, COVID rates are probably going to be ten

493
00:23:32,760 --> 00:23:36,680
Speaker 3: to thirteen fourteen percent depending on who you're working with. Yes,

494
00:23:36,920 --> 00:23:39,960
Speaker 3: only in your LLC's name. So these bank statement loans

495
00:23:40,000 --> 00:23:42,520
Speaker 3: just to clarify us in your personal name. Still it's

496
00:23:42,560 --> 00:23:46,320
Speaker 3: not in your LLC's name. So when you go asset

497
00:23:46,359 --> 00:23:49,120
Speaker 3: based or hard money, that's strictly in your LLC's name.

498
00:23:49,160 --> 00:23:51,280
Speaker 3: And that's why the rate is even higher because it's

499
00:23:51,320 --> 00:23:52,160
Speaker 3: on LLC based.

500
00:23:52,240 --> 00:23:54,080
Speaker 2: But that's the semi valuable and even if it's six

501
00:23:54,119 --> 00:23:57,480
Speaker 2: percent or even eight percent, it's still depending on how

502
00:23:57,560 --> 00:24:01,120
Speaker 2: much income you're not showing, because you have realized it's

503
00:24:01,160 --> 00:24:04,159
Speaker 2: like it's a trade off, right, you either show a

504
00:24:04,200 --> 00:24:06,600
Speaker 2: bunch of income. By showing a bunch of income, you

505
00:24:06,640 --> 00:24:08,080
Speaker 2: have to pay taxes on that money.

506
00:24:08,119 --> 00:24:08,479
Speaker 3: Correct.

507
00:24:08,480 --> 00:24:11,840
Speaker 2: So like let's say you're making two hundred thousand dollars

508
00:24:11,960 --> 00:24:14,879
Speaker 2: and you're showing twenty thousand. In order to qualify, you

509
00:24:14,920 --> 00:24:17,440
Speaker 2: need to show one hundred thousand. So now you got

510
00:24:17,440 --> 00:24:20,439
Speaker 2: to show eighty thousand dollars more correct, So now you

511
00:24:20,480 --> 00:24:21,880
Speaker 2: could potentially.

512
00:24:22,920 --> 00:24:25,160
Speaker 4: This episode is brought to you by P and C Bank.

513
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531
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535
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541
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543
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559
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Speaker 2: Be paying thirty thousand more. Absolutely taxes, So even if

560
00:27:18,119 --> 00:27:22,240
Speaker 2: you're paying twice as much or even three times as

561
00:27:22,320 --> 00:27:26,000
Speaker 2: much on an interest rate, it might not equal that

562
00:27:26,200 --> 00:27:30,160
Speaker 2: at least upfront. And then you always have the opportunity

563
00:27:30,200 --> 00:27:33,199
Speaker 2: even if you're paying a higher amount to refinance down

564
00:27:33,240 --> 00:27:37,000
Speaker 2: the line. Absolutely, you always have the opportunity to sell

565
00:27:37,040 --> 00:27:39,639
Speaker 2: the Propertylute, you always have the opportunity if it's a

566
00:27:39,720 --> 00:27:42,439
Speaker 2: multi family home to generate income to kind of upset that.

567
00:27:42,600 --> 00:27:46,200
Speaker 2: So that's something that business owners should definitely be aware

568
00:27:46,200 --> 00:27:48,280
Speaker 2: of because, like I said, that's a decision that business

569
00:27:48,320 --> 00:27:49,920
Speaker 2: owners have to make all the time, Like, all right,

570
00:27:50,440 --> 00:27:53,080
Speaker 2: do I sacrifice, do I show more income and pay

571
00:27:53,119 --> 00:27:57,639
Speaker 2: more taxes? Or do I just rent an apartment forever

572
00:27:57,800 --> 00:28:00,520
Speaker 2: because I don't have enough money to just buy a

573
00:28:00,520 --> 00:28:03,120
Speaker 2: home and cash something that you know, if you if

574
00:28:03,119 --> 00:28:04,720
Speaker 2: you if you don't, if you don't own a business,

575
00:28:04,720 --> 00:28:07,120
Speaker 2: it's not a big deal, but not just business owners.

576
00:28:07,520 --> 00:28:11,840
Speaker 2: But also, like I said, ten nine contractors.

577
00:28:11,080 --> 00:28:15,080
Speaker 3: Independent contractors are considered self employed in the mortgage world

578
00:28:15,240 --> 00:28:17,680
Speaker 3: because you're not having any taxes taken out of your

579
00:28:17,760 --> 00:28:20,760
Speaker 3: your checks. So you're self employed. So you're filing a

580
00:28:20,840 --> 00:28:23,679
Speaker 3: schedule C, right, and you have to pay taxes. So

581
00:28:23,720 --> 00:28:26,120
Speaker 3: it's the same thing, you know, But if you're if

582
00:28:26,160 --> 00:28:29,000
Speaker 3: you're ten ninety nine, you're going to have to I

583
00:28:29,040 --> 00:28:31,919
Speaker 3: would probably set yourself up as a business so that

584
00:28:31,960 --> 00:28:34,879
Speaker 3: way you can get better tax benefits of having yourself

585
00:28:34,880 --> 00:28:38,479
Speaker 3: incorporated or LLC brusu's just having yourself as an ESQ.

586
00:28:38,720 --> 00:28:43,080
Speaker 3: I mean schedule see filing. But you know, like you said,

587
00:28:43,760 --> 00:28:46,920
Speaker 3: pick your poison, right you want to pay seven hundred

588
00:28:46,960 --> 00:28:50,680
Speaker 3: and fifty dollars like you know, or you want to

589
00:28:50,680 --> 00:28:52,840
Speaker 3: go buy real estate, so you're going to have to

590
00:28:52,880 --> 00:28:55,000
Speaker 3: pick what's your poison right now. So if you want

591
00:28:55,040 --> 00:28:57,440
Speaker 3: to have this program gives you the option of having

592
00:28:57,480 --> 00:29:01,240
Speaker 3: your cake and eating it too, paying less taxis, using

593
00:29:02,000 --> 00:29:05,240
Speaker 3: the deposits to qualify, and you still buy in real estate.

594
00:29:05,280 --> 00:29:07,040
Speaker 3: You're just going to have to pay a premium for it.

595
00:29:07,360 --> 00:29:10,520
Speaker 3: So for me, I think the program is amazing and

596
00:29:10,640 --> 00:29:13,880
Speaker 3: it and it helps so many entrepreneurs get into the

597
00:29:13,920 --> 00:29:14,720
Speaker 3: real estate business.

598
00:29:15,000 --> 00:29:16,400
Speaker 5: Yeah, get you a good CPA.

599
00:29:16,520 --> 00:29:18,560
Speaker 3: Yeah, get you, get you a great get you a

600
00:29:18,560 --> 00:29:19,240
Speaker 3: great CPA.

601
00:29:20,080 --> 00:29:20,720
Speaker 5: That's a fact.

602
00:29:21,640 --> 00:29:24,000
Speaker 4: So you have you have a question, Jory, No, I

603
00:29:24,040 --> 00:29:25,800
Speaker 4: wanted to going into one of the things that you

604
00:29:25,840 --> 00:29:30,160
Speaker 4: mentioned before, and that's the appraisal process. Okay, because obviously

605
00:29:30,400 --> 00:29:33,360
Speaker 4: I've spoke about this a number of times of how

606
00:29:33,800 --> 00:29:36,520
Speaker 4: my family was robbed of thousands of dollars doing during

607
00:29:36,960 --> 00:29:39,600
Speaker 4: the appraisal process. And one of the things in speaking

608
00:29:39,640 --> 00:29:41,760
Speaker 4: to you, what I came to find out was something

609
00:29:41,760 --> 00:29:42,400
Speaker 4: called the AMC.

610
00:29:42,720 --> 00:29:43,719
Speaker 5: Can you explain what that is?

611
00:29:44,000 --> 00:29:49,280
Speaker 3: So AMC stands for Appraisal Management company. So when the

612
00:29:49,320 --> 00:29:53,120
Speaker 3: market crashed, the government said it was the bank's fault

613
00:29:53,440 --> 00:29:56,760
Speaker 3: in the appraises. So they took the control away from

614
00:29:56,760 --> 00:30:01,120
Speaker 3: the banks and the brokers, the mortgage brokers. They took

615
00:30:01,120 --> 00:30:04,600
Speaker 3: the appraisal control away from us, that process away from us. Right,

616
00:30:04,680 --> 00:30:07,680
Speaker 3: we can't have direct contact with an appraiser, so when

617
00:30:07,760 --> 00:30:11,320
Speaker 3: we do a deal, we go through the appraisal management company.

618
00:30:11,640 --> 00:30:14,640
Speaker 3: The appraisal management company now picks from a round robbin

619
00:30:14,680 --> 00:30:18,200
Speaker 3: of appraisers that's approved. But whatever, Linda, they're working with

620
00:30:18,880 --> 00:30:22,280
Speaker 3: and then they're the ones who have the communication with

621
00:30:22,400 --> 00:30:25,920
Speaker 3: the appraiser. They set up the order with them. You

622
00:30:25,960 --> 00:30:27,880
Speaker 3: got to contact this person whatever.

623
00:30:27,960 --> 00:30:29,840
Speaker 4: Right in my mind, I'm thinking the government did this

624
00:30:29,880 --> 00:30:31,760
Speaker 4: because it's like if I was an appraiser, I know

625
00:30:31,800 --> 00:30:33,720
Speaker 4: you worked at the bank, You're telling me, like, yo,

626
00:30:33,800 --> 00:30:36,040
Speaker 4: just give them a good rate so we can make

627
00:30:36,080 --> 00:30:36,800
Speaker 4: money on the deals.

628
00:30:36,840 --> 00:30:37,440
Speaker 5: Is that why?

629
00:30:37,680 --> 00:30:38,760
Speaker 3: It was kind of like this.

630
00:30:40,320 --> 00:30:41,120
Speaker 4: Let me tell you how I.

631
00:30:41,080 --> 00:30:42,000
Speaker 5: Went to tell you the story.

632
00:30:42,080 --> 00:30:43,440
Speaker 3: Let me tell you how it went. In a wild

633
00:30:43,480 --> 00:30:47,280
Speaker 3: cowboy days, it would say, Yo, Giovanni, I need this

634
00:30:47,320 --> 00:30:50,440
Speaker 3: deal to go this eight hundred thousand. I know it's

635
00:30:50,440 --> 00:30:52,480
Speaker 3: probably on the worth seven, but what can you do?

636
00:30:53,680 --> 00:30:56,640
Speaker 3: We can make we can pay you extra, and Giovanni

637
00:30:56,680 --> 00:30:59,680
Speaker 3: will come back with appraiser report of eight hundred thousand dollars.

638
00:31:00,160 --> 00:31:03,440
Speaker 3: And there was no systems in place back then and

639
00:31:03,480 --> 00:31:07,520
Speaker 3: no technology like we have now where underwriters were really

640
00:31:07,840 --> 00:31:10,200
Speaker 3: vetting that appraisal. They would just close on it, right,

641
00:31:10,240 --> 00:31:13,440
Speaker 3: they would take their words. So the market was being inflated.

642
00:31:13,560 --> 00:31:15,760
Speaker 3: And what they're saying is true. You know this call

643
00:31:15,840 --> 00:31:18,200
Speaker 3: was made this bad. We had too much contact. Right,

644
00:31:18,280 --> 00:31:20,880
Speaker 3: if you're on a praiser and you know I'm sending

645
00:31:20,880 --> 00:31:22,560
Speaker 3: you a lot of business. Look, if I need you

646
00:31:22,640 --> 00:31:25,040
Speaker 3: to make this happen, make it happen, and they would

647
00:31:25,160 --> 00:31:28,400
Speaker 3: because there was really no regulation behind it. Now with

648
00:31:28,480 --> 00:31:31,560
Speaker 3: the appraisal management company, that's out of the window. You

649
00:31:31,560 --> 00:31:34,280
Speaker 3: can't even talk to the appraiser. It's illegal for US

650
00:31:34,400 --> 00:31:37,200
Speaker 3: loan officers to talk to appraisers now, so I don't

651
00:31:37,240 --> 00:31:38,760
Speaker 3: know who to hell, the appraiser is going to be

652
00:31:38,800 --> 00:31:41,360
Speaker 3: on a deal until I get the actual report. And

653
00:31:41,440 --> 00:31:44,080
Speaker 3: even when I get the report, I can't make contact

654
00:31:44,120 --> 00:31:46,720
Speaker 3: with them. If I want to dispute something, I have questions,

655
00:31:46,760 --> 00:31:49,320
Speaker 3: I think there's errors. It all has to funnel back

656
00:31:49,360 --> 00:31:52,360
Speaker 3: through the AMC, and then the AMC goes back to

657
00:31:52,400 --> 00:31:54,520
Speaker 3: that appraiser to make whatever corrections.

658
00:31:54,680 --> 00:31:56,600
Speaker 4: And so my thing is like, and I've seen this

659
00:31:56,640 --> 00:31:59,480
Speaker 4: a lot, is like, I wonder how many people look

660
00:31:59,520 --> 00:32:01,520
Speaker 4: like us in this management company.

661
00:32:01,880 --> 00:32:06,800
Speaker 3: Oh, it's slim to none. Because in most cases, right,

662
00:32:07,360 --> 00:32:11,600
Speaker 3: we need black appraisers. We need we need people that

663
00:32:11,640 --> 00:32:15,720
Speaker 3: look like us going into our neighborhoods valuate our property

664
00:32:15,800 --> 00:32:18,480
Speaker 3: because we know the true value of our areas in

665
00:32:18,520 --> 00:32:21,840
Speaker 3: our neighborhoods. Most most of these folks don't and that's

666
00:32:21,880 --> 00:32:25,240
Speaker 3: when you see people getting these homes of praise and

667
00:32:25,280 --> 00:32:28,720
Speaker 3: like your situation, they devalued.

668
00:32:28,160 --> 00:32:31,400
Speaker 4: You came in, spent ten minutes here, I paid them

669
00:32:31,440 --> 00:32:34,840
Speaker 4: seven hundred dollars devalue mee. We lost like one hundred

670
00:32:34,840 --> 00:32:35,479
Speaker 4: thousand on the deal.

671
00:32:35,800 --> 00:32:38,880
Speaker 3: It's terrible, you know, it's terrible. So if anybody's looking

672
00:32:38,920 --> 00:32:42,160
Speaker 3: to get into the real estate industry, looking to becoming

673
00:32:42,240 --> 00:32:47,360
Speaker 3: an appraiser, there's a serious need to become an appraiser,

674
00:32:47,400 --> 00:32:49,880
Speaker 3: and especially if you're a minority, this could be a

675
00:32:49,920 --> 00:32:52,560
Speaker 3: good way for you to learn the real estate market

676
00:32:52,560 --> 00:32:55,760
Speaker 3: because you learn and how to value properties right, and

677
00:32:56,080 --> 00:32:59,760
Speaker 3: if you're going to invest, what better knowledge to have

678
00:32:59,840 --> 00:33:03,080
Speaker 3: than and being an appraiser. It pays well, and it

679
00:33:03,120 --> 00:33:05,880
Speaker 3: pays well ten minutes, ten minutes. But you got to

680
00:33:05,920 --> 00:33:07,920
Speaker 3: think about though, it doesn't pay that well no more

681
00:33:07,960 --> 00:33:10,800
Speaker 3: for the appraises, right, because now you have that AMC

682
00:33:11,040 --> 00:33:13,280
Speaker 3: of the company. So now the AMC has to eat

683
00:33:13,320 --> 00:33:16,320
Speaker 3: too off that same fee. So now the appraisers actually

684
00:33:16,320 --> 00:33:18,520
Speaker 3: make less. And that's why you see a lot of

685
00:33:18,520 --> 00:33:21,800
Speaker 3: sloppy work now, right, because they're not making as much

686
00:33:21,840 --> 00:33:24,440
Speaker 3: money as they used to. Now, what you see a

687
00:33:24,480 --> 00:33:27,600
Speaker 3: lot of now they'll make the So there's two there's

688
00:33:27,640 --> 00:33:31,320
Speaker 3: two appraisal reports. Right, it's either going to come back

689
00:33:31,560 --> 00:33:34,480
Speaker 3: as is or subject to repairs. Right, So if it

690
00:33:34,520 --> 00:33:36,600
Speaker 3: comes back as is, I mean the house is fine

691
00:33:36,720 --> 00:33:39,760
Speaker 3: how it is, right, but it comes back subject to repairs,

692
00:33:40,200 --> 00:33:43,000
Speaker 3: then whatever the appraiser list on that report that needs

693
00:33:43,040 --> 00:33:45,600
Speaker 3: to be repaired, it needs to be repaired prior to closing.

694
00:33:45,720 --> 00:33:47,640
Speaker 3: And then they have to come back out and do

695
00:33:47,680 --> 00:33:51,239
Speaker 3: a reinspection. That's another trip fee that could be an

696
00:33:51,240 --> 00:33:54,160
Speaker 3: extra one to fifty to five hundred dollars just depending

697
00:33:54,200 --> 00:33:56,600
Speaker 3: on the property type and everything like that. So that's

698
00:33:56,600 --> 00:33:58,960
Speaker 3: how they're making more money. You know what I'm saying.

699
00:33:59,000 --> 00:34:01,280
Speaker 3: They're making up for that loss is because now praisers

700
00:34:01,320 --> 00:34:03,400
Speaker 3: are going in and they're looking for cracks, they're looking

701
00:34:03,400 --> 00:34:07,600
Speaker 3: for mold, they're looking for whatever's out of order, you

702
00:34:07,640 --> 00:34:09,359
Speaker 3: know what I'm saying, So that way they can put that.

703
00:34:09,320 --> 00:34:10,160
Speaker 5: Put back on.

704
00:34:10,280 --> 00:34:14,560
Speaker 4: The appraiser is different from the home inspector. Even though

705
00:34:14,719 --> 00:34:16,480
Speaker 4: they come in they look at the property. They may say,

706
00:34:16,480 --> 00:34:19,640
Speaker 4: hey you need a new furnace, Hey that bathroom needs

707
00:34:19,680 --> 00:34:20,200
Speaker 4: new plumbing.

708
00:34:20,440 --> 00:34:23,560
Speaker 3: That's different from the home inspection. Absolutely, home inspection. The

709
00:34:23,600 --> 00:34:26,160
Speaker 3: home inspector is coming in to look at the house,

710
00:34:26,360 --> 00:34:28,320
Speaker 3: and they're going to see about the mechanics of the

711
00:34:28,400 --> 00:34:30,959
Speaker 3: house to make sure the roof, the baller, the heat,

712
00:34:31,080 --> 00:34:33,759
Speaker 3: the plumbing, electrical everything is where it used to be

713
00:34:34,280 --> 00:34:36,759
Speaker 3: and what they feel like needs repairs and what's the

714
00:34:36,840 --> 00:34:40,040
Speaker 3: cost to cure those repairs, right, And then they're going

715
00:34:40,080 --> 00:34:42,960
Speaker 3: to give you probably a thirty to fifty page report

716
00:34:43,440 --> 00:34:46,120
Speaker 3: with all this information in there right telling you this

717
00:34:46,200 --> 00:34:48,560
Speaker 3: is wrong, this is wrong, it's wrong. So the home

718
00:34:48,600 --> 00:34:52,240
Speaker 3: inspector is going to be thorough right. They're not spending

719
00:34:52,280 --> 00:34:55,640
Speaker 3: ten minutes, they're spending two three hours, you know, depending

720
00:34:55,680 --> 00:34:58,760
Speaker 3: on the size of the home, and they're looking through everything.

721
00:34:58,840 --> 00:35:01,359
Speaker 3: But even with a home inspection, you're really not going

722
00:35:01,440 --> 00:35:03,480
Speaker 3: to know your home until you live in it, you know.

723
00:35:03,520 --> 00:35:05,759
Speaker 3: But this would give you a good idea of what

724
00:35:05,800 --> 00:35:09,240
Speaker 3: you're buying, right, So it's very important get a home inspection.

725
00:35:09,360 --> 00:35:10,759
Speaker 3: And there's a lot of times that I'm starting to

726
00:35:10,760 --> 00:35:13,120
Speaker 3: see on deals with folks are opting out of home

727
00:35:13,160 --> 00:35:15,440
Speaker 3: inspections because they think it's a good house or it

728
00:35:15,560 --> 00:35:19,879
Speaker 3: was just recently renovated. If it's a flip, definitely get

729
00:35:19,880 --> 00:35:23,759
Speaker 3: a home inspection because these investors are being cheap with

730
00:35:23,800 --> 00:35:26,400
Speaker 3: their materials and they work. So you need to go

731
00:35:26,480 --> 00:35:29,080
Speaker 3: in there and double check and have somebody with professional

732
00:35:29,080 --> 00:35:30,960
Speaker 3: eyes that you don't have to kind of look at

733
00:35:30,960 --> 00:35:33,840
Speaker 3: this stuff because a lot of them are putting cheap materials.

734
00:35:34,320 --> 00:35:35,840
Speaker 4: I'm thinking like, yeah, they probably going to bring the

735
00:35:35,920 --> 00:35:39,320
Speaker 4: cheapest material to be done the fastest, tells the quickest.

736
00:35:39,360 --> 00:35:41,759
Speaker 3: Absolutely, they trying to turn the burn, you know what

737
00:35:41,760 --> 00:35:47,640
Speaker 3: I'm saying. So don't don't devalue your home and home inspection,

738
00:35:48,040 --> 00:35:50,359
Speaker 3: you know what I'm saying. Make sure that you take

739
00:35:50,600 --> 00:35:55,200
Speaker 3: serious notes. You're looking be there, you know, ask questions,

740
00:35:55,600 --> 00:35:58,680
Speaker 3: learn about it because if you're going to invest, that's

741
00:35:58,800 --> 00:36:02,440
Speaker 3: also free not free training, right because you're paying for it,

742
00:36:02,560 --> 00:36:05,760
Speaker 3: but it's still training if you if you use that information,

743
00:36:05,800 --> 00:36:08,120
Speaker 3: that you're learning because now they work for you. Now

744
00:36:08,160 --> 00:36:09,879
Speaker 3: they got to tell you this stuff, right, what's wrong

745
00:36:09,920 --> 00:36:12,960
Speaker 3: with this? Blah blah blahlah blah. Now you're starting to learn, right.

746
00:36:13,200 --> 00:36:16,080
Speaker 3: So that's another hack, so to speak. If you're trying

747
00:36:16,080 --> 00:36:18,000
Speaker 3: to get into real estate and you're buying your first house,

748
00:36:18,440 --> 00:36:23,279
Speaker 3: take the process serious, learn the entire process, everything that

749
00:36:23,320 --> 00:36:24,919
Speaker 3: you need to know. So that way when it's time

750
00:36:24,920 --> 00:36:27,000
Speaker 3: to do more deals. You already have the knowledge. No

751
00:36:27,000 --> 00:36:28,920
Speaker 3: one can take it from you. You have the blueprint,

752
00:36:29,080 --> 00:36:30,120
Speaker 3: you have the blue brinds.

753
00:36:31,280 --> 00:36:33,880
Speaker 2: So you know, one thing that a lesion. We're not

754
00:36:34,080 --> 00:36:37,640
Speaker 2: just tied to America. We get support from all over

755
00:36:37,680 --> 00:36:40,880
Speaker 2: the world, like literally, we get tons of support in Canada.

756
00:36:40,920 --> 00:36:43,239
Speaker 2: Shout out to Toronto, Shout out to Montreal, out to

757
00:36:43,600 --> 00:36:45,520
Speaker 2: Shout out to Vancouver, Shout out to the whole country

758
00:36:45,560 --> 00:36:47,920
Speaker 2: in Canada. Shout out to the Caribbean, all the countries

759
00:36:47,960 --> 00:36:51,160
Speaker 2: in Caribbean. Shouts at dr Shout to pr Shout to Jamaica,

760
00:36:51,200 --> 00:36:52,320
Speaker 2: Shout out to Antigua.

761
00:36:52,480 --> 00:36:54,240
Speaker 3: You guys are like number one in all these countries.

762
00:36:54,480 --> 00:36:55,600
Speaker 4: We got we gotta find.

763
00:36:55,440 --> 00:36:58,480
Speaker 2: On Shout to the Caribbean. Shots to Monday, London. The

764
00:36:58,560 --> 00:37:01,239
Speaker 2: UK is a big hub for us. To London, shout

765
00:37:01,239 --> 00:37:03,640
Speaker 2: out to everybody out there, and shout out to everybody

766
00:37:03,640 --> 00:37:06,080
Speaker 2: in Africa. We've been doing a lot of stuff in Africa.

767
00:37:06,440 --> 00:37:08,160
Speaker 2: We're going to go there. Yeah, Shout out to the

768
00:37:08,200 --> 00:37:10,359
Speaker 2: whole continent in Africa. Shout out to Asia. Shout out

769
00:37:10,360 --> 00:37:13,359
Speaker 2: that all over the world or every continent. So you know,

770
00:37:14,040 --> 00:37:15,960
Speaker 2: a lot of most of our continents kind of you know,

771
00:37:16,280 --> 00:37:18,279
Speaker 2: based around America because that's where we're from and that's

772
00:37:18,280 --> 00:37:20,280
Speaker 2: where we live. But we want to talk to people

773
00:37:20,360 --> 00:37:22,640
Speaker 2: and get people information that because you know a lot

774
00:37:22,680 --> 00:37:27,560
Speaker 2: of people live in especially like the you know, London, Toronto, Jamaica.

775
00:37:27,239 --> 00:37:30,360
Speaker 2: They have family in America and you know they go

776
00:37:30,440 --> 00:37:32,600
Speaker 2: back and forth and they might want to invest in America.

777
00:37:32,760 --> 00:37:36,319
Speaker 2: So there's different programs and things for like international people

778
00:37:36,360 --> 00:37:36,680
Speaker 2: as well.

779
00:37:36,719 --> 00:37:40,160
Speaker 3: Right, absolutely, absolutely, So you have what's called foreign national

780
00:37:40,200 --> 00:37:44,960
Speaker 3: loans where if you're not living here or a US citizen,

781
00:37:45,080 --> 00:37:47,839
Speaker 3: you still have the ability to get a loan and

782
00:37:48,120 --> 00:37:50,600
Speaker 3: buy investment properties here in the US. So it's called

783
00:37:50,600 --> 00:37:53,840
Speaker 3: the foreign national loan, and depending on the lender, you

784
00:37:53,880 --> 00:37:56,399
Speaker 3: can put down as little as twenty to thirty five

785
00:37:56,440 --> 00:37:59,400
Speaker 3: percent down payment on these loans. And it's not a

786
00:37:59,440 --> 00:38:03,680
Speaker 3: real difficul cool process to get approved foreign national. Right,

787
00:38:04,400 --> 00:38:06,839
Speaker 3: there's only a handful of lenders that will take these

788
00:38:06,840 --> 00:38:09,640
Speaker 3: type of loans. There's not too many of them. So

789
00:38:09,719 --> 00:38:12,440
Speaker 3: if you are, you know, overseas and you want to

790
00:38:12,480 --> 00:38:14,640
Speaker 3: get a foreign national loan, just do a simple Google

791
00:38:14,640 --> 00:38:16,319
Speaker 3: search and you'll see a bunch of lenders that will

792
00:38:16,360 --> 00:38:18,440
Speaker 3: come up. They will tell you there are different requirements,

793
00:38:18,440 --> 00:38:20,960
Speaker 3: but the baseline of it is no credit score requirement

794
00:38:21,000 --> 00:38:27,040
Speaker 3: because obviously you're not US citizen. Some lenders will want

795
00:38:27,080 --> 00:38:30,480
Speaker 3: you to have a US bank account and have the

796
00:38:30,560 --> 00:38:33,839
Speaker 3: money transferred over to the US. Some lenders don't. They'll

797
00:38:34,000 --> 00:38:37,800
Speaker 3: accept the money coming in from overseas the day of closing,

798
00:38:37,840 --> 00:38:39,160
Speaker 3: but a lot of them want you to have the

799
00:38:39,200 --> 00:38:41,920
Speaker 3: money in the US already, So check with the lender

800
00:38:42,640 --> 00:38:47,000
Speaker 3: for their particular guidelines on what they require. If you're

801
00:38:47,000 --> 00:38:49,120
Speaker 3: self employed, then you have to get a letter from

802
00:38:49,120 --> 00:38:51,920
Speaker 3: your account or your CPA just verifying where your income

803
00:38:52,040 --> 00:38:54,160
Speaker 3: is and how long you've been in business, if a

804
00:38:54,200 --> 00:38:56,640
Speaker 3: lot of good standing and things of that nature. If

805
00:38:56,680 --> 00:38:58,840
Speaker 3: you are a W two employee, I'm not sure if

806
00:38:58,840 --> 00:39:00,839
Speaker 3: they even call it W two them Lloyds over there,

807
00:39:00,840 --> 00:39:03,560
Speaker 3: but whatever you guys call it. If you work for somebody,

808
00:39:03,880 --> 00:39:06,440
Speaker 3: then you get a paycheck from someone else, then we

809
00:39:06,560 --> 00:39:09,200
Speaker 3: have to get a letter also from your employer, just

810
00:39:09,200 --> 00:39:15,360
Speaker 3: to verify your employment. Some lenders will rub not rubbed,

811
00:39:15,400 --> 00:39:17,720
Speaker 3: but run like you do a certain country, I forget

812
00:39:17,719 --> 00:39:19,480
Speaker 3: the name what they call it, and just do make

813
00:39:19,520 --> 00:39:22,320
Speaker 3: sure you're not on like any terrorist list or anything

814
00:39:22,360 --> 00:39:25,640
Speaker 3: like that fair enough. Well, you know, got to make

815
00:39:25,680 --> 00:39:28,640
Speaker 3: sure that you're not, you know, doing nothing crazy out here.

816
00:39:29,120 --> 00:39:32,240
Speaker 3: But you know, there are options out there for foreign

817
00:39:32,320 --> 00:39:35,040
Speaker 3: investors to invest here in the United States and buy

818
00:39:35,080 --> 00:39:38,560
Speaker 3: investment properties. I've helped ton of foreign investors, especially in

819
00:39:38,560 --> 00:39:41,399
Speaker 3: the Philadelphia market. Like you know, a couple of years ago,

820
00:39:41,520 --> 00:39:43,680
Speaker 3: everybody in China was coming in to Philly and buying

821
00:39:43,760 --> 00:39:46,319
Speaker 3: up all the Philly right. Shout out to my guy

822
00:39:47,120 --> 00:39:49,960
Speaker 3: Malik caught out there in Philly. We did a lot

823
00:39:49,960 --> 00:39:53,560
Speaker 3: of deals out there together. But shout out to my

824
00:39:53,600 --> 00:39:57,879
Speaker 3: god real estate coach Carter. But yeah, it's opportunities out

825
00:39:57,880 --> 00:40:01,440
Speaker 3: there for foreign investors too, that's here in the United States.

826
00:40:01,880 --> 00:40:04,880
Speaker 3: So COVID slowed it down a little bit, so you know,

827
00:40:04,920 --> 00:40:07,560
Speaker 3: it's not too many banks like it was prior to

828
00:40:07,680 --> 00:40:10,480
Speaker 3: COVID that are doing it, but you can still, you know,

829
00:40:10,640 --> 00:40:12,200
Speaker 3: find good financing out there.

830
00:40:12,400 --> 00:40:14,399
Speaker 2: What are some of the biggest hurdles that stop people

831
00:40:14,440 --> 00:40:18,439
Speaker 2: from buying homes credit score? Is it not having enough

832
00:40:18,440 --> 00:40:20,960
Speaker 2: for the down payment, because that's something that you know

833
00:40:21,000 --> 00:40:22,839
Speaker 2: a lot of times people. Is it just not having

834
00:40:22,840 --> 00:40:24,880
Speaker 2: a proper education like what it's.

835
00:40:24,920 --> 00:40:28,920
Speaker 3: Above, you know, not having a proper education first and foremost.

836
00:40:29,000 --> 00:40:31,640
Speaker 3: That's the biggest thing I see. People don't they fear

837
00:40:31,680 --> 00:40:35,600
Speaker 3: what they don't know, right, So most people who don't

838
00:40:35,600 --> 00:40:37,120
Speaker 3: buy a home, and when you speak to them, they

839
00:40:37,160 --> 00:40:39,200
Speaker 3: don't know nothing about the process. They don't know nothing

840
00:40:39,239 --> 00:40:42,719
Speaker 3: about loans, they don't understand interest rates. It's just overwhelming

841
00:40:42,760 --> 00:40:45,600
Speaker 3: for them. Right, So that's first things. First is the knowledge.

842
00:40:45,840 --> 00:40:49,480
Speaker 3: Then credit. Credit is probably the second biggest thing. People

843
00:40:49,560 --> 00:40:51,879
Speaker 3: have bad credit out here, and they need to get

844
00:40:51,960 --> 00:40:55,200
Speaker 3: worry about fixing their credit and stop spending so much.

845
00:40:55,880 --> 00:40:58,799
Speaker 3: Then I will probably say cash the capital, you know.

846
00:40:58,920 --> 00:41:00,920
Speaker 3: I think that's probably the third thing that I see

847
00:41:00,960 --> 00:41:04,600
Speaker 3: that hold people back, especially in cities like New York.

848
00:41:04,880 --> 00:41:08,160
Speaker 3: LA was very expensive to buy real estate. You know,

849
00:41:08,960 --> 00:41:12,040
Speaker 3: a two family here is a million dollars. Right, you've

850
00:41:12,040 --> 00:41:14,439
Speaker 3: got to talk about you need probably three point five

851
00:41:14,480 --> 00:41:17,200
Speaker 3: percent plus closing costs. I mean, before you know, you

852
00:41:17,200 --> 00:41:19,680
Speaker 3: can be close to one hundred k you know that

853
00:41:19,719 --> 00:41:22,799
Speaker 3: you need to buy a house. So it's a lot

854
00:41:22,880 --> 00:41:26,720
Speaker 3: that happens. I mean, it's a lot that stops home buyers.

855
00:41:27,120 --> 00:41:30,080
Speaker 3: But these are the things that I see the top

856
00:41:30,120 --> 00:41:34,600
Speaker 3: three that stop the lack of education, credit and capital.

857
00:41:34,719 --> 00:41:36,560
Speaker 4: Yeah, I like what you said, we don't know what

858
00:41:36,600 --> 00:41:39,520
Speaker 4: we don't know, right, And part of that is the question.

859
00:41:39,600 --> 00:41:41,759
Speaker 4: And so like, when we're getting into this process, what

860
00:41:41,840 --> 00:41:44,719
Speaker 4: are some things when we're trying to find the right

861
00:41:44,800 --> 00:41:47,960
Speaker 4: loan office or the right commercial bank or investment bank.

862
00:41:48,040 --> 00:41:50,320
Speaker 4: What are the questions that we should be asking before

863
00:41:50,360 --> 00:41:51,680
Speaker 4: we take that step.

864
00:41:51,680 --> 00:41:53,240
Speaker 3: When you interview on your loan offices?

865
00:41:53,360 --> 00:41:53,560
Speaker 5: Right?

866
00:41:53,760 --> 00:41:55,600
Speaker 3: Oh man, there's tons of questions that you need to

867
00:41:55,600 --> 00:41:57,840
Speaker 3: ask them. First of all, do they own any property themselves?

868
00:41:57,880 --> 00:41:58,040
Speaker 5: Right?

869
00:41:58,160 --> 00:42:01,280
Speaker 3: Are they investing their homeowners themselves?

870
00:42:01,400 --> 00:42:01,560
Speaker 4: Right?

871
00:42:01,600 --> 00:42:03,800
Speaker 3: How long have they been in the business? Very important

872
00:42:03,840 --> 00:42:06,160
Speaker 3: question to me because look, there's nothing wrong with rookie

873
00:42:06,320 --> 00:42:09,200
Speaker 3: loan officers, right, but they don't have the experience. They

874
00:42:09,200 --> 00:42:11,839
Speaker 3: don't have the product knowledge yet, they don't know how

875
00:42:11,880 --> 00:42:12,520
Speaker 3: to maneuver.

876
00:42:13,040 --> 00:42:13,200
Speaker 5: Right.

877
00:42:13,200 --> 00:42:16,279
Speaker 3: They're going to be more reactive than proactive because they're

878
00:42:16,360 --> 00:42:19,920
Speaker 3: learning on the job. So I experience. You know, how

879
00:42:19,920 --> 00:42:22,120
Speaker 3: many deals are you really closing? How many did you

880
00:42:22,160 --> 00:42:22,919
Speaker 3: close last month?

881
00:42:23,040 --> 00:42:23,200
Speaker 5: Right?

882
00:42:23,440 --> 00:42:26,239
Speaker 3: Just to get an idea of what that person is

883
00:42:26,480 --> 00:42:29,160
Speaker 3: closing people, are they really truly honestly helping?

884
00:42:30,160 --> 00:42:32,439
Speaker 4: How much is a season person? How many how many

885
00:42:32,560 --> 00:42:35,360
Speaker 4: closings that they haven't a season loanovers.

886
00:42:35,600 --> 00:42:37,480
Speaker 3: I mean, you could be seasoned, it's still you know,

887
00:42:38,200 --> 00:42:41,960
Speaker 3: not right. So, I mean, if you're a top producer,

888
00:42:42,000 --> 00:42:45,000
Speaker 3: in my opinion, you closing well over one hundred plus

889
00:42:45,040 --> 00:42:47,440
Speaker 3: deals a year. You know, if you're a top producing

890
00:42:47,520 --> 00:42:50,480
Speaker 3: loan officer. But the mega producers are closing a couple

891
00:42:50,640 --> 00:42:53,920
Speaker 3: hundred loans a year, you know they're they're out here

892
00:42:54,000 --> 00:42:57,319
Speaker 3: really killing it. So but you know, the average loan

893
00:42:57,360 --> 00:43:01,799
Speaker 3: officer is probably closing four deals a month somewhere an there,

894
00:43:02,239 --> 00:43:05,399
Speaker 3: which is not bad. You know, depending on your compensation level,

895
00:43:05,480 --> 00:43:08,120
Speaker 3: you can still make great a great living closing four

896
00:43:08,200 --> 00:43:10,680
Speaker 3: or five deals a month. But you know, you want

897
00:43:10,719 --> 00:43:13,279
Speaker 3: to ask these people these questions. Do they have a team,

898
00:43:13,440 --> 00:43:16,480
Speaker 3: very important, especially in times right now where everybody's overwhelmed

899
00:43:16,480 --> 00:43:18,640
Speaker 3: and busy. Are you the only person that they're going

900
00:43:18,719 --> 00:43:22,080
Speaker 3: to speak to, right? So team is very important. They

901
00:43:22,239 --> 00:43:24,560
Speaker 3: are they underwriting their loans in house?

902
00:43:24,800 --> 00:43:25,040
Speaker 5: Right?

903
00:43:25,480 --> 00:43:28,719
Speaker 3: Is their underwright and being sourced to somewhere else? Or

904
00:43:28,920 --> 00:43:31,399
Speaker 3: what kind of control do they have? You know, these

905
00:43:31,440 --> 00:43:33,440
Speaker 3: are all the things that are very important because you

906
00:43:33,440 --> 00:43:34,960
Speaker 3: want to know that your deal is going to be

907
00:43:35,000 --> 00:43:37,160
Speaker 3: able to go through the system with no issues.

908
00:43:37,280 --> 00:43:40,080
Speaker 2: So, speaking of the mortgage industry and working with a

909
00:43:40,120 --> 00:43:43,800
Speaker 2: mortgage professional. You're a mortgage you're a loan officer, correct,

910
00:43:43,840 --> 00:43:46,439
Speaker 2: So we haven't had this conversation either. We talk about

911
00:43:46,480 --> 00:43:49,160
Speaker 2: like investing in real estate, but there's always two sides

912
00:43:49,160 --> 00:43:52,400
Speaker 2: of the coring, so you can make money actually working

913
00:43:52,400 --> 00:43:54,440
Speaker 2: in real estate as well. Like you know, we've interviewed

914
00:43:54,480 --> 00:43:57,399
Speaker 2: Kata Keanu wats we talked about like being a real

915
00:43:57,520 --> 00:44:02,120
Speaker 2: estate agent or realter. So like how what are the

916
00:44:02,120 --> 00:44:04,239
Speaker 2: opportunities for people if they want to become like where

917
00:44:04,239 --> 00:44:06,440
Speaker 2: you are as far as a loan officer? How do

918
00:44:06,520 --> 00:44:07,880
Speaker 2: you do that? Like you have to go to school

919
00:44:07,880 --> 00:44:09,560
Speaker 2: for that? Is it like a test that you take?

920
00:44:09,640 --> 00:44:11,480
Speaker 2: Like do you how do you get hired? Like what's

921
00:44:11,480 --> 00:44:11,640
Speaker 2: to do?

922
00:44:12,120 --> 00:44:12,319
Speaker 5: Well?

923
00:44:12,480 --> 00:44:14,600
Speaker 3: So first and first you have to get license, right,

924
00:44:15,440 --> 00:44:17,319
Speaker 3: So you have to get licensed. You have to take

925
00:44:17,360 --> 00:44:21,160
Speaker 3: the safe test and that's I think twenty five hours,

926
00:44:21,880 --> 00:44:24,239
Speaker 3: which is not a long period of time. It's not

927
00:44:24,280 --> 00:44:26,040
Speaker 3: a lot of hours, right, you can do that in

928
00:44:26,080 --> 00:44:28,400
Speaker 3: a week. You can do it online with no problem.

929
00:44:28,440 --> 00:44:31,080
Speaker 3: Of course you're a couple hundred bucks. Once you pass

930
00:44:31,120 --> 00:44:33,800
Speaker 3: the class, then you have to take the federal exam.

931
00:44:34,120 --> 00:44:36,560
Speaker 3: And when you pass the federal exam. Then you have

932
00:44:36,640 --> 00:44:41,080
Speaker 3: to submit your information to NMLST, you know, National Mortgage

933
00:44:41,160 --> 00:44:45,080
Speaker 3: Licenses System, that's the acronym. You keep saying. Yeah, actually,

934
00:44:45,280 --> 00:44:48,160
Speaker 3: and I'm saying that because I'm official telling you I'm

935
00:44:48,160 --> 00:44:50,719
Speaker 3: a licensed loan officer, like I'm not an Internet guy.

936
00:44:50,800 --> 00:44:52,920
Speaker 3: I always say this, right, and that's why I started

937
00:44:52,920 --> 00:44:55,319
Speaker 3: saying my license number one to be compliant. At one

938
00:44:55,320 --> 00:44:58,760
Speaker 3: point I knew about her. Yeah, I heard on every video,

939
00:44:59,640 --> 00:45:02,840
Speaker 3: every video. It's like NMLS number five as I almost

940
00:45:02,840 --> 00:45:03,239
Speaker 3: forgot that.

941
00:45:05,719 --> 00:45:05,959
Speaker 5: Right.

942
00:45:06,360 --> 00:45:10,920
Speaker 3: But it's important that once you once you pass, then

943
00:45:10,960 --> 00:45:15,319
Speaker 3: you submit all your documentation got to get fingerprinted. I mean,

944
00:45:15,440 --> 00:45:18,080
Speaker 3: we're getting your credit gets looked at. So you can't

945
00:45:18,080 --> 00:45:20,480
Speaker 3: really have bad credit. If you have any issues on

946
00:45:20,520 --> 00:45:22,960
Speaker 3: your credit, you have the right explanations of why, if

947
00:45:22,960 --> 00:45:26,080
Speaker 3: you have outstanding child support and things like that. This

948
00:45:26,200 --> 00:45:28,319
Speaker 3: is serious. This is not like you. Just when I

949
00:45:28,360 --> 00:45:30,640
Speaker 3: came into business, there was no licensing. They literally gave

950
00:45:30,640 --> 00:45:32,759
Speaker 3: me a phone book and said call people. Right, I

951
00:45:32,760 --> 00:45:36,480
Speaker 3: didn't know a damn thing. But now after the crash,

952
00:45:36,560 --> 00:45:39,680
Speaker 3: they make people get licensed now, So if you're a

953
00:45:39,719 --> 00:45:41,960
Speaker 3: licensed loan offic shout out to all the licensed loan offices,

954
00:45:42,000 --> 00:45:46,400
Speaker 3: by the way, that's how you start to get licensed.

955
00:45:46,400 --> 00:45:48,239
Speaker 3: But that doesn't mean you're going to get a job,

956
00:45:48,880 --> 00:45:53,080
Speaker 3: right because most banks right now don't have time to

957
00:45:53,160 --> 00:45:57,319
Speaker 3: hire and train new loan officers. It's too busy, right,

958
00:45:57,360 --> 00:46:01,720
Speaker 3: So you have to find either more company, a mortgage broker,

959
00:46:02,760 --> 00:46:04,680
Speaker 3: or even a big bank right that's willing to take

960
00:46:04,680 --> 00:46:08,040
Speaker 3: the chance with you and hire you. Or I would

961
00:46:08,040 --> 00:46:10,000
Speaker 3: recommend anybody looking to get in the business try to

962
00:46:10,080 --> 00:46:12,719
Speaker 3: join a team, right because if you join the team,

963
00:46:12,800 --> 00:46:15,120
Speaker 3: like I run a team right around my own division.

964
00:46:15,719 --> 00:46:19,120
Speaker 3: But I won't hire anybody. No, sorry, not right now,

965
00:46:19,960 --> 00:46:21,880
Speaker 3: not even not right now. Please don't hit me up

966
00:46:21,880 --> 00:46:25,600
Speaker 3: on that. You need to hear experience minimum, right, But

967
00:46:26,200 --> 00:46:28,839
Speaker 3: there are there are people in my position that will

968
00:46:28,920 --> 00:46:32,040
Speaker 3: hire new people because they may have the capacity to train.

969
00:46:32,120 --> 00:46:34,400
Speaker 3: I don't have that capacity right now. Unfortunately, at some

970
00:46:34,480 --> 00:46:38,600
Speaker 3: point I will, but not not today, right. But get

971
00:46:38,600 --> 00:46:40,680
Speaker 3: on the team so that way you can get that experience,

972
00:46:40,719 --> 00:46:42,480
Speaker 3: you can get that train and you can mess up

973
00:46:43,080 --> 00:46:45,319
Speaker 3: and have somebody to guide you and hold your hand.

974
00:46:45,320 --> 00:46:49,120
Speaker 3: Because there's a lot that goes into originating loan people think,

975
00:46:49,400 --> 00:46:51,400
Speaker 3: you know, especially with the digital stuff that we have

976
00:46:51,600 --> 00:46:54,399
Speaker 3: and the information and technology era that we're in. It's

977
00:46:54,440 --> 00:46:57,200
Speaker 3: so easy to go on these websites and people get

978
00:46:57,200 --> 00:46:59,879
Speaker 3: a pre qualification letter and they think it's so easy. Right,

979
00:47:00,280 --> 00:47:03,200
Speaker 3: It's not that easy. It's something these guidelines. If you

980
00:47:03,239 --> 00:47:06,600
Speaker 3: look at the underwriting guidelines, even from like an FAHA loan, right,

981
00:47:06,600 --> 00:47:10,000
Speaker 3: the underwriting guidelines is over a thousand pages. There's a

982
00:47:10,000 --> 00:47:12,680
Speaker 3: lot of information. You know what I'm saying, And we

983
00:47:12,800 --> 00:47:15,799
Speaker 3: have to be Godeline ghats like, you know what I'm saying, Like,

984
00:47:15,880 --> 00:47:18,240
Speaker 3: we have to know our guidelines. This is our bible,

985
00:47:18,280 --> 00:47:20,960
Speaker 3: this is this is how guidelines, this is how we

986
00:47:21,040 --> 00:47:24,480
Speaker 3: make our living right. So for me, I study these guidelines.

987
00:47:24,520 --> 00:47:27,120
Speaker 3: I live in these guidelines. They tell you everything you

988
00:47:27,160 --> 00:47:30,680
Speaker 3: need to do to execute right and and then you

989
00:47:30,760 --> 00:47:33,120
Speaker 3: have to now be able to articulate that to someone

990
00:47:33,120 --> 00:47:36,560
Speaker 3: who has no clue. Right. So it's not it's like, what.

991
00:47:36,520 --> 00:47:38,480
Speaker 5: Are some of the guidelines that you have to memorize?

992
00:47:39,600 --> 00:47:45,000
Speaker 3: Man, Everything guidelines changed today, all certain things right, like

993
00:47:45,440 --> 00:47:49,200
Speaker 3: especially in COVID. Right, things are changing rapidly. It seems

994
00:47:49,239 --> 00:47:52,160
Speaker 3: like almost every other week there's something coming out from

995
00:47:52,320 --> 00:47:55,719
Speaker 3: the government saying this or that right, especially with self

996
00:47:55,719 --> 00:47:59,920
Speaker 3: employee borrowers making sure that their businesses operate and they're running.

997
00:48:00,200 --> 00:48:03,319
Speaker 3: If if you're buying investment properties, they want to make

998
00:48:03,360 --> 00:48:06,279
Speaker 3: sure now that rent is being collected, especially if you're

999
00:48:06,320 --> 00:48:09,680
Speaker 3: refinancing and you're using an income to qualify. Right, we

1000
00:48:09,760 --> 00:48:12,839
Speaker 3: got a document, you're receiving rent. Now. There's a lot

1001
00:48:12,920 --> 00:48:15,000
Speaker 3: that's happening, and all that I discussed in the blueprint,

1002
00:48:15,040 --> 00:48:17,839
Speaker 3: by the way, but there's a lot happening in the

1003
00:48:17,880 --> 00:48:20,719
Speaker 3: market right now, and it happens at a rapid pace.

1004
00:48:20,800 --> 00:48:23,160
Speaker 3: We wake up and the guidelines are changed, and then

1005
00:48:23,200 --> 00:48:25,080
Speaker 3: we have to just learn them and adapt, and it

1006
00:48:25,120 --> 00:48:28,000
Speaker 3: affects every loan that's in the pipeline. Sometimes they'll give

1007
00:48:28,040 --> 00:48:30,759
Speaker 3: you like, oh, it's going to be December first or

1008
00:48:30,840 --> 00:48:33,840
Speaker 3: January first, twenty twenty, but sometimes they say effective immediately.

1009
00:48:34,480 --> 00:48:36,799
Speaker 4: I remember we had a conversation. I was reading an

1010
00:48:36,840 --> 00:48:39,719
Speaker 4: article and I think they gave you like a week.

1011
00:48:39,800 --> 00:48:41,760
Speaker 3: I think it was September. It was for the refinance

1012
00:48:41,800 --> 00:48:45,160
Speaker 3: feed that they added the refinance fee, and the whole

1013
00:48:45,200 --> 00:48:48,719
Speaker 3: industry got pissed off, Like the entire mortgage industry was

1014
00:48:48,960 --> 00:48:53,280
Speaker 3: pissed right, And then they they delayed it to December first.

1015
00:48:53,360 --> 00:48:54,000
Speaker 5: What did that?

1016
00:48:54,360 --> 00:48:57,239
Speaker 3: So they added so Fannie Mae and Freddie Matt came

1017
00:48:57,280 --> 00:49:01,439
Speaker 3: out I think this was August, that they're taxing lenders now,

1018
00:49:01,600 --> 00:49:04,120
Speaker 3: basically saying, hey, y'all doing a lot of refinances. Rate

1019
00:49:04,200 --> 00:49:06,480
Speaker 3: is low. We need to make some of my stimulus

1020
00:49:06,760 --> 00:49:09,759
Speaker 3: to basically, and we're going to tax y'all a half

1021
00:49:09,760 --> 00:49:12,120
Speaker 3: a point for every refud that you're going to sell

1022
00:49:12,160 --> 00:49:15,080
Speaker 3: to Fandy made and Freddie Mack effective immediately. So that

1023
00:49:15,239 --> 00:49:17,799
Speaker 3: means that you're going to sell to them, right, So

1024
00:49:18,520 --> 00:49:21,680
Speaker 3: they basically said, we want our money, and you have.

1025
00:49:21,840 --> 00:49:24,480
Speaker 3: You could have a pipeline of a thousand loans, two

1026
00:49:24,560 --> 00:49:27,360
Speaker 3: thousand loans in your pipeline right now. You got to

1027
00:49:27,680 --> 00:49:29,719
Speaker 3: pay a half a point per loan. That could be

1028
00:49:29,800 --> 00:49:33,920
Speaker 3: twenty thirty forty fifty million dollars worth of loans one

1029
00:49:33,960 --> 00:49:36,200
Speaker 3: hundred million dollars a long times a half a point

1030
00:49:36,680 --> 00:49:40,000
Speaker 3: that you didn't expect. They're taking your revenue, right, but

1031
00:49:40,280 --> 00:49:42,520
Speaker 3: they're not going to take the lenders revenue.

1032
00:49:42,600 --> 00:49:42,759
Speaker 1: I know.

1033
00:49:43,080 --> 00:49:46,399
Speaker 3: Is it's gonna take your revenue. They're gonna get charged

1034
00:49:46,719 --> 00:49:48,759
Speaker 3: charge you more. We're gonna we're gonna charge you more

1035
00:49:48,800 --> 00:49:51,520
Speaker 3: because we're not gonna pay for that, right And and

1036
00:49:51,640 --> 00:49:53,960
Speaker 3: anytime things like this happened, it gets passed on to

1037
00:49:53,960 --> 00:49:56,680
Speaker 3: the consumer, like the lenders are not going to pay

1038
00:49:56,719 --> 00:49:59,799
Speaker 3: for it, you know. So the industry went crazy and

1039
00:50:00,000 --> 00:50:04,160
Speaker 3: they decided to delay it to December first. So people

1040
00:50:04,200 --> 00:50:07,839
Speaker 3: who are originating refinances right now, that half a point

1041
00:50:07,880 --> 00:50:10,239
Speaker 3: is already built into your rate sheets already, you know

1042
00:50:10,239 --> 00:50:12,759
Speaker 3: what I'm saying. Which in town made interest rates for

1043
00:50:12,840 --> 00:50:17,080
Speaker 3: refinances depending on which Linda, go up by eight to

1044
00:50:17,360 --> 00:50:21,160
Speaker 3: three eighths of a point over the past week. Because

1045
00:50:21,160 --> 00:50:24,680
Speaker 3: now it's loans that's sold by a certain period of time,

1046
00:50:24,840 --> 00:50:27,799
Speaker 3: so we have to cut. Once loans are closed, it

1047
00:50:27,840 --> 00:50:30,319
Speaker 3: takes a while for it to get sold to the agencies,

1048
00:50:30,640 --> 00:50:32,040
Speaker 3: you know what I'm saying. So you got to price

1049
00:50:32,080 --> 00:50:33,720
Speaker 3: that in now because you don't know when they're gonna

1050
00:50:33,719 --> 00:50:34,799
Speaker 3: buy it from you.

1051
00:50:34,800 --> 00:50:37,839
Speaker 1: You know what I'm saying, Coach, The energy out there

1052
00:50:37,840 --> 00:50:39,960
Speaker 1: felt different. What changed for the team today?

1053
00:50:40,040 --> 00:50:42,160
Speaker 3: It was the new game day scratches from the California

1054
00:50:42,239 --> 00:50:45,600
Speaker 3: Lottery players everything. Those games sent the team's energy through

1055
00:50:45,640 --> 00:50:45,960
Speaker 3: the roof.

1056
00:50:46,040 --> 00:50:48,040
Speaker 6: Are you saying it was the off field play that

1057
00:50:48,080 --> 00:50:48,680
Speaker 6: made the difference.

1058
00:50:48,719 --> 00:50:51,080
Speaker 3: On the field, A little play makes your day, and

1059
00:50:51,120 --> 00:50:52,439
Speaker 3: today it made the game.

1060
00:50:52,960 --> 00:50:53,680
Speaker 5: That's all for now.

1061
00:50:53,960 --> 00:50:56,800
Speaker 6: Coach one more question play than new Los Angeles Chargers,

1062
00:50:56,800 --> 00:50:59,760
Speaker 6: San Francisco forty nine Ers and Los Angeles Rams Scratchers

1063
00:50:59,760 --> 00:51:02,359
Speaker 6: from at a California lottery. A little play can make

1064
00:51:02,400 --> 00:51:05,120
Speaker 6: your day face play responsibly. Must be eighteen years or

1065
00:51:05,120 --> 00:51:06,240
Speaker 6: older to purchase play or claim