WEBVTT - Study Hall: How to Buy a Home with MG The Mortgage Guy 0:00:00.400 --> 0:00:04.280 You just realized your business needed to hire someone yesterday. 0:00:04.800 --> 0:00:09.520 How can you find amazing candidates fast? Easy? Just use Indeed. 0:00:09.960 --> 0:00:12.680 Stop struggling to get your job posts seen on other 0:00:12.760 --> 0:00:16.439 job sites. With Indeed sponsored jobs, your post jumps to 0:00:16.480 --> 0:00:19.000 the top of the page for your relevant candidates, so 0:00:19.120 --> 0:00:22.119 you can reach the people you want faster. According to 0:00:22.160 --> 0:00:26.120 Indeed data, sponsored jobs posted directly on Indeed have forty 0:00:26.120 --> 0:00:30.040 five percent more applications than non sponsored jobs. Don't wait 0:00:30.080 --> 0:00:33.519 any longer. Speed up your hiring right now with Indeed, 0:00:33.960 --> 0:00:36.200 and listeners of this show will get a seventy five 0:00:36.280 --> 0:00:39.440 dollars sponsored job credit to get your jobs more visibility 0:00:39.600 --> 0:00:45.320 at indeed dot com slash pod Katz thirteen. Just go 0:00:45.360 --> 0:00:50.120 to Indeed dot com slash pod Katz thirteen right now 0:00:50.479 --> 0:00:53.040 and support our show by saying you heard about Indeed 0:00:53.080 --> 0:00:57.400 on this podcast. Terms and conditions apply. Hiring Indeed is 0:00:57.440 --> 0:00:58.040 all you need. 0:00:58.760 --> 0:01:02.200 It's a crazy time that we're living in. Everybody knows 0:01:02.200 --> 0:01:05.039 obviously we in. You know the age of Corona, and 0:01:05.400 --> 0:01:08.520 I remember texting you like when when Corona first hit. 0:01:08.880 --> 0:01:10.920 I'm like, yo, that's when the stock market was crashing, 0:01:11.240 --> 0:01:13.039 and I'm like, there's real estate market about the crash, 0:01:13.080 --> 0:01:15.440 and he was like, nah, it's not And I'm like, 0:01:15.680 --> 0:01:19.680 how people were losing their jobs, stock markets crashing, people 0:01:19.720 --> 0:01:22.520 can't go to work, like all the writings on the 0:01:22.520 --> 0:01:25.200 wall for another two thousand and eight to happen, and 0:01:25.240 --> 0:01:27.760 you was like, nah, commercial real estate might be in trouble, 0:01:27.800 --> 0:01:31.039 but residential real estate, I'm like, all right, we'll see. 0:01:31.400 --> 0:01:34.279 And then to this day, it hasn't crashed. It's actually 0:01:34.280 --> 0:01:37.520 going up. In most most places in America. The price 0:01:37.560 --> 0:01:39.640 the home prices have actually going up. It's a shortage 0:01:39.680 --> 0:01:42.920 of our inventory on the marketplace. So where we're at 0:01:43.040 --> 0:01:45.839 right now as far as the state of real estate 0:01:46.360 --> 0:01:48.440 in the United States of America. 0:01:48.520 --> 0:01:51.200 The market is on fire for residential you know. And 0:01:51.240 --> 0:01:53.280 I told you this back in March. I said, nah, bro, 0:01:53.360 --> 0:01:56.200 it's not going to happen because with people and everybody 0:01:56.280 --> 0:01:58.320 was kind of saying the same thing, like, yo, two 0:01:58.360 --> 0:02:00.880 thousand and eight is coming back. Wait, don't buy weight, 0:02:01.400 --> 0:02:03.320 And I said two thousand and eight was different. That 0:02:03.440 --> 0:02:06.360 was a credit crisis, right, This is a health crisis. 0:02:07.360 --> 0:02:13.880 Credit crisis means that banks, Wall streeters, everybody, homeowners, you know, investors, 0:02:13.919 --> 0:02:19.440 everybody was greedy, you know, appraisers, everybody, right, So when 0:02:19.440 --> 0:02:22.680 the market crashed, the government was reluctant on trying to 0:02:22.720 --> 0:02:26.120 save everybody. They didn't want to bail out everybody, but 0:02:26.160 --> 0:02:29.120 they had no choice but to bail out the big names. Right. 0:02:29.880 --> 0:02:32.840 So with this one, I said, now, this is health 0:02:33.480 --> 0:02:36.000 This has nothing to do with nobody. This is nobody's fault. 0:02:36.000 --> 0:02:37.360 And if you think about it, if you look at 0:02:37.360 --> 0:02:39.679 the real estate market going into twenty twenty, it was 0:02:39.680 --> 0:02:42.919 already on fire. It was due for a correction at 0:02:42.919 --> 0:02:46.920 some point, because what goes up must come down, right, 0:02:47.440 --> 0:02:50.000 But I said, nah, this is not going to crash. 0:02:50.040 --> 0:02:51.800 There's no way, because the government is going to have 0:02:51.840 --> 0:02:55.959 to bail out everybody now, right from the big businesses 0:02:56.440 --> 0:03:00.280 to the everyday person. And when you told me that 0:03:00.280 --> 0:03:02.399 it's going to crash, that's what was in my mind 0:03:02.440 --> 0:03:06.680 because I knew, especially with the election year, they couldn't 0:03:06.760 --> 0:03:09.440 just let all these people die, people lose their homes. 0:03:09.800 --> 0:03:12.560 There's no way. And as you see, all these stimulus 0:03:12.560 --> 0:03:16.000 packages came out, everybody getting their ppe money and everything. 0:03:17.400 --> 0:03:19.200 It was recklessly and hopefully they wasn't reckless. 0:03:19.200 --> 0:03:21.320 Hopefully they wasn't reckless, and hopefully they did the right thing. 0:03:21.400 --> 0:03:24.640 But you know, you have unemployment benefits, people are getting 0:03:24.680 --> 0:03:27.679 them with ease, with no problem. So you know, you 0:03:27.800 --> 0:03:31.320 got to give the administration credit for what they tried 0:03:31.360 --> 0:03:34.880 to do to help as many people as possible. And 0:03:34.920 --> 0:03:36.960 that's why I just didn't feel like the market was 0:03:36.960 --> 0:03:39.840 going to crash. But residential real estate is on fire 0:03:39.920 --> 0:03:43.760 right now all over the country. There's thirty forty offers 0:03:43.800 --> 0:03:46.320 on one house, you know, So if you're a seller 0:03:46.400 --> 0:03:49.800 right now, if you're thinking about selling your home to 0:03:49.920 --> 0:03:52.720 upgrade or downsize, this is the time for the sellers 0:03:52.800 --> 0:03:56.840 right now, because they're going to get twenty thirty percent 0:03:57.080 --> 0:04:00.480 above asking price in some markets right now because it's 0:04:00.520 --> 0:04:03.240 just too hot right now. It's too many buyers out there, 0:04:03.280 --> 0:04:05.960 and with these low interest rates, you know, or rates 0:04:05.960 --> 0:04:09.200 being in the mid twos to low threes, depending on 0:04:09.240 --> 0:04:12.840 your circumstance, Like everybody wants to buy a house because 0:04:12.880 --> 0:04:16.400 money is cheap now, right so it's easy to the 0:04:16.440 --> 0:04:18.680 person who couldn't afford the half a million dollar house 0:04:18.960 --> 0:04:21.000 last year when rates were three and a half four percent, 0:04:21.520 --> 0:04:22.960 now it's two and a half. 0:04:23.000 --> 0:04:25.039 Can can you explain like that? Like, because the average 0:04:25.080 --> 0:04:27.000 person that maybe never brought a home might not fully 0:04:27.000 --> 0:04:29.520 appreciate because they say three and a half, two and 0:04:29.560 --> 0:04:32.880 a half, it's only one percent, that's not that big 0:04:32.920 --> 0:04:35.039 of a deal. But because they looking at it like 0:04:35.040 --> 0:04:37.200 it's stocks, like it's like if you earn one percent, 0:04:37.240 --> 0:04:38.920 you know what I'm saying, or just regular life, one 0:04:38.960 --> 0:04:41.800 percent doesn't move the needle. But in your world of 0:04:41.800 --> 0:04:43.560 mortgage is one percent is huge. Right, So if you 0:04:43.680 --> 0:04:45.080 kind of put that in perspective out. 0:04:44.960 --> 0:04:47.720 Here, I mean, look, one percent depending on your loan amount, right, 0:04:47.800 --> 0:04:50.600 that can be three four five hundred dollars a month. 0:04:50.760 --> 0:04:53.920 That could be six thousand, eight thousand, ten thousand a year, 0:04:54.000 --> 0:04:58.039 depending on the size of your loan. Right. So the 0:04:58.040 --> 0:05:01.320 big of the loan, the low a rate, the cheap 0:05:01.320 --> 0:05:05.120 of the payment. Right. So someone again who couldn't afford 0:05:05.120 --> 0:05:07.360 the five hundred thousand dollars home or get pre approved 0:05:07.400 --> 0:05:09.600 for a five hundred thousand dollar home a year ago 0:05:09.680 --> 0:05:11.440 because the rate was probably three and a half to 0:05:11.520 --> 0:05:14.559 four percent, now they're able to because now that brings 0:05:14.560 --> 0:05:17.120 their payment down and they're able to get approved for 0:05:17.200 --> 0:05:21.240 now that higher amount. So one percent is huge in 0:05:21.320 --> 0:05:24.800 the real estate in the mortgage world, interest that you're 0:05:24.800 --> 0:05:26.640 gonna pay over the life of the loan is also 0:05:26.800 --> 0:05:30.680 very important too, because if you're looking at any house 0:05:30.720 --> 0:05:32.680 that you buy, let's face it, right, the way the 0:05:32.720 --> 0:05:35.960 mortgage in the banking system is set up, it's you know, 0:05:36.040 --> 0:05:38.880 you're gonna pay interest three times more than what the 0:05:38.880 --> 0:05:42.320 houses actually work. But if you're getting a cheaper interest rate, 0:05:42.720 --> 0:05:45.039 that softens the blow a little bit, and now you 0:05:45.080 --> 0:05:48.840 can focus on your debt strategy, which is repaying back 0:05:48.920 --> 0:05:51.479 your debt and trying to beat that interest trap. You 0:05:51.480 --> 0:05:53.440 know what I'm saying, and you know little things you 0:05:53.480 --> 0:05:55.440 can do to do that. You can make one extra 0:05:55.440 --> 0:05:57.040 payment a year and you can pay off your loan 0:05:57.040 --> 0:05:58.440 in twenty two and a half years if you have 0:05:58.480 --> 0:06:01.120 a thirty year mortgage. Know what I tell folks all 0:06:01.160 --> 0:06:04.960 the time, take your income taxes refunds right and apply 0:06:05.080 --> 0:06:08.120 that every single year to your principal balance. That could 0:06:08.160 --> 0:06:10.360 bring down your debt. You can do as little as 0:06:10.400 --> 0:06:13.440 one hundred dollars a month to your principal balance and 0:06:13.480 --> 0:06:17.440 you'll be surprised how much interest you'll save on your mortgage, 0:06:17.600 --> 0:06:19.520 especially if you plan on living in the house the 0:06:19.600 --> 0:06:23.400 long term, the full term of thirty years you don't 0:06:23.400 --> 0:06:25.880 want to just make your regular payment because you're gonna 0:06:25.880 --> 0:06:28.119 pay you know, on a three hundred, four hundred thousand 0:06:28.120 --> 0:06:30.040 dollars home, you may pay back eight hundred thousand. 0:06:30.240 --> 0:06:32.720 Now that was a gym, what you just said. And 0:06:32.760 --> 0:06:34.599 I learned that in business. I don't want that to 0:06:34.600 --> 0:06:37.159 go people's head. When I first got into into the 0:06:37.200 --> 0:06:42.240 industry working in finance, I learned that like one extra 0:06:42.320 --> 0:06:46.280 payment a year on your mortgage cut seven years off 0:06:46.320 --> 0:06:47.440 of your mortgage. 0:06:47.040 --> 0:06:50.680 Absolutely, or eight seven, eight twenty two and a half years. 0:06:50.880 --> 0:06:54.200 Yeah, so that's that's huge if you really think about it. 0:06:54.200 --> 0:06:58.960 It's like one extra payment a year absolutely can really 0:06:59.040 --> 0:07:01.720 take almost a decade off, like. 0:07:01.839 --> 0:07:05.360 Basically, and it has to be towards your principal balance only. 0:07:05.400 --> 0:07:07.600 So if you're making a payment, you can't just give 0:07:07.640 --> 0:07:09.800 the bank money because they're automatically going to apply it 0:07:09.840 --> 0:07:13.040 to interest, right, because you have to direct them where 0:07:13.080 --> 0:07:13.960 you want that money to go. 0:07:14.440 --> 0:07:15.240 How does that even look? 0:07:15.280 --> 0:07:17.840 So if my mortgage is three thousand, I gotta pay 0:07:18.000 --> 0:07:19.360 six thousand if I'm doing it. 0:07:19.640 --> 0:07:21.720 Yeah, So if your mortgage is three, you can pay 0:07:21.760 --> 0:07:24.280 six and you can tell them the difference to go 0:07:24.320 --> 0:07:28.920 to principal balance only. Some online everything's online right now 0:07:28.920 --> 0:07:30.520 with all the banks, right so you can go pay 0:07:30.520 --> 0:07:33.640 your mortgage and you can specify their two principal balance only. 0:07:33.680 --> 0:07:35.800 You can write a check, put on a check two 0:07:35.840 --> 0:07:39.200 principal balance only. So, depending on how you pay your mortgage, 0:07:39.680 --> 0:07:42.280 do that. And if it's not an online option to 0:07:42.320 --> 0:07:44.880 pay extra, call the service and lender that you're paying 0:07:44.880 --> 0:07:48.120 your mortgage too, and figure out a way to accomplish 0:07:48.160 --> 0:07:50.600 that goal. Maybe they can just do automatic drafts from 0:07:50.600 --> 0:07:53.120 your account something like that and set it up to 0:07:53.160 --> 0:07:55.800 where you can make that extra payment, you know, and 0:07:55.840 --> 0:07:58.040 you'll be surprised if you make two payments extra year. 0:07:58.120 --> 0:07:59.400 That's what in my mind, I'm thinking that if I 0:07:59.440 --> 0:08:02.200 make two extra pas now that seven ers of the fourteen, 0:08:02.280 --> 0:08:03.440 I'm really at a fifteen year. 0:08:03.360 --> 0:08:06.160 Mortgage basically, And I'm glad you brought up fifteen year 0:08:06.160 --> 0:08:08.920 mortgages right, especially right now folks want to go into 0:08:08.920 --> 0:08:12.040 fifteen year loans and look, the fifteen year rate. The 0:08:12.080 --> 0:08:15.040 lowest I've seen it since we've been in COVID was 0:08:15.080 --> 0:08:19.560 around two percent, which is phenomenais, right, that's incredible. But 0:08:19.720 --> 0:08:22.320 what I try to tell people is maybe not going 0:08:22.400 --> 0:08:26.800 to that fifteen year right now, because life happens, right, 0:08:26.840 --> 0:08:29.680 you're committing yourself to a much higher payment, and what if, 0:08:30.120 --> 0:08:33.959 you know, COVID twenty one comes God forbid and it's worse, 0:08:34.240 --> 0:08:37.160 worse strained than this. Now you're committing yourself to that 0:08:37.240 --> 0:08:40.280 higher payment just to try to pay it all early, 0:08:40.280 --> 0:08:42.600 when you could have went to a thirty year, had 0:08:42.600 --> 0:08:46.120 a cheaper payment, and just manage your principal balance yourself 0:08:46.480 --> 0:08:49.760 that way, you're not committed to that fifteen year term 0:08:49.920 --> 0:08:53.040 or that twenty year term. You stay with the cheapest 0:08:53.080 --> 0:08:57.400 possible payment, but still you're paying down your debt, you 0:08:57.440 --> 0:09:01.280 know so, And I'm not against year mortgages. I think 0:09:01.320 --> 0:09:03.840 for the right people it works, right people who have 0:09:04.080 --> 0:09:07.400 substantial income and they can really afford the payment. But 0:09:07.960 --> 0:09:11.160 most people are trying to pay off their loan fast, 0:09:11.200 --> 0:09:15.480 which I get, but they're now cash strap, right, They're 0:09:15.480 --> 0:09:18.240 becoming house rich and cash poor because they're making their 0:09:18.280 --> 0:09:21.880 payment so much higher because they're just focusing on I 0:09:21.960 --> 0:09:24.280 just want to get rid of it, which again I understand, 0:09:24.320 --> 0:09:26.040 but you got to be a little bit smarter right now, 0:09:26.080 --> 0:09:28.760 because anything could happen. As we've seen, we woke up 0:09:28.760 --> 0:09:32.000 in twenty twenty, Kobe dead with God bless you know, 0:09:32.120 --> 0:09:35.400 then COVID came. Like this year has been crazy, you 0:09:35.440 --> 0:09:37.240 know what I'm saying. So like, if this doesn't teach 0:09:37.280 --> 0:09:39.480 anybody anything, you got to have cash flow right now. 0:09:39.520 --> 0:09:43.480 You got to have liquidity because anything can happen. So 0:09:43.679 --> 0:09:46.080 that's why I just try to tell home own future 0:09:46.080 --> 0:09:50.079 homeowners and current homeowners who are refinancing, if you don't 0:09:50.080 --> 0:09:52.080 have to go to the fifteen year, just stay with 0:09:52.160 --> 0:09:55.240 the twenty or thirty years, so that way you can 0:09:55.280 --> 0:09:56.480 have a little bit more cash flow. 0:09:56.720 --> 0:09:58.240 Can I go back to something you said, because when 0:09:58.240 --> 0:09:59.880 you say, I'm like, oh, how does that work? Because 0:10:00.000 --> 0:10:02.240 I've heard of corrections obviously in the stock market, and 0:10:02.280 --> 0:10:04.840 we know that's maybe eight to ten percent or eighteen percent. 0:10:05.360 --> 0:10:07.160 What does that look What does the correction look like 0:10:07.480 --> 0:10:10.080 in the real estate world? Is that interest rates go up? Like, 0:10:10.160 --> 0:10:11.800 what is the correction in the real estate world? 0:10:11.840 --> 0:10:13.520 I mean it could be rates go up, It could 0:10:13.520 --> 0:10:17.400 be home prices depreciate, you know, it could be lenders 0:10:17.440 --> 0:10:20.200 tightening up their guidelines. You know, all of these things 0:10:20.200 --> 0:10:22.960 could be corrections in the market that can affect the 0:10:23.040 --> 0:10:27.360 buying power of Americans. Right, if home prices decline like 0:10:27.400 --> 0:10:30.360 you thought it was, I mean, it sucks, but what 0:10:30.480 --> 0:10:32.720 goes up must come down at some point. Right. So 0:10:32.720 --> 0:10:37.000 that's why over leveraging is not over leveraging is key, 0:10:37.440 --> 0:10:39.040 you know. And this is why I talk a lot 0:10:39.080 --> 0:10:42.679 about rehabs, rehab loans, and things of that nature, because 0:10:42.720 --> 0:10:45.480 I want first time home buyers to think like investors. 0:10:45.920 --> 0:10:48.440 When you're buying these homes, buy them the same way 0:10:48.480 --> 0:10:50.880 that you'll see a Caesar by them, or Envy buy them, 0:10:50.960 --> 0:10:54.400 or any investor that you guys are following online by 0:10:54.480 --> 0:10:57.120 the same way they're buying. You know, there's nothing special 0:10:57.440 --> 0:11:01.000 about anybody who's flipping real estate or doing anything. They 0:11:01.080 --> 0:11:03.400 just have more knowledge than you, and they know where 0:11:03.440 --> 0:11:05.840 to look and where to find these properties. You can 0:11:05.880 --> 0:11:08.400 do the same thing. The information is available, you know, 0:11:08.440 --> 0:11:11.600 there's no excuse. It's not like ten fifteen years ago 0:11:12.040 --> 0:11:15.880 when I first came into business, there was no social media. Right, 0:11:15.960 --> 0:11:19.360 you can hashtag and follow a hashtag and you'll see 0:11:19.600 --> 0:11:22.160 hundreds of people flipping houses and they're giving you all 0:11:22.160 --> 0:11:24.120 this information. So now you just got to apply it. 0:11:24.240 --> 0:11:25.720 And if you're a first time home by it, there's 0:11:25.720 --> 0:11:28.160 so many different programs out there for you to get 0:11:28.160 --> 0:11:30.559 the rehab money to be able to now buy a 0:11:30.640 --> 0:11:34.719 home that's undervalue. Put that money into it, force the appreciation, 0:11:35.559 --> 0:11:38.640 and now you have equity in that home, and God 0:11:38.760 --> 0:11:41.600 forbid the house does depreciate. You still good because if 0:11:41.679 --> 0:11:45.040 you lose ten percent equity because the market is declining 0:11:45.240 --> 0:11:48.880 five percent equity, you're not over leverage. You're not upside down. 0:11:49.000 --> 0:11:52.120 So I try to promote don't buy retail if you 0:11:52.160 --> 0:11:54.960 don't have to, But I understand you have to in 0:11:55.000 --> 0:11:58.920 some cases buy retail because the school districts, family needs, 0:11:59.040 --> 0:12:01.160 things of that nature, don't have a choice. But still 0:12:01.160 --> 0:12:03.319 try to buy the ugliest house in the best neighborhood. 0:12:03.400 --> 0:12:05.360 So let me ask you this because you know, obviously 0:12:05.400 --> 0:12:09.080 you said that it's a seller's market, absolutely what interest 0:12:09.160 --> 0:12:11.720 rates are extremely low right now, so that would say 0:12:11.720 --> 0:12:12.240 it would be better. 0:12:12.400 --> 0:12:14.800 It's good for the buyer so. 0:12:14.960 --> 0:12:18.760 To get along, but it's great for the seller because 0:12:18.760 --> 0:12:21.400 they're going to have multiple offers on their home. 0:12:21.640 --> 0:12:24.240 Okay, So for people that's looking at maybe purchase a home, 0:12:24.960 --> 0:12:28.040 is this a good time to or should it? Because like, 0:12:28.040 --> 0:12:29.959 all right, average, like let's say somebody hasn't brought a 0:12:30.000 --> 0:12:31.320 home yet, and they looking at it like, all right, 0:12:31.640 --> 0:12:34.319 I got some money saved and low interest rates, it's 0:12:34.360 --> 0:12:36.439 a good time for me to buy a home. But 0:12:36.559 --> 0:12:38.240 if it's a seller's market, should they be looking to 0:12:38.240 --> 0:12:40.440 buy a home or should they just be waiting for 0:12:40.559 --> 0:12:41.640 it to be a buyer's market? 0:12:41.679 --> 0:12:41.959 Again? 0:12:42.080 --> 0:12:44.600 Good question, right, So this is what I tell everybody. 0:12:45.400 --> 0:12:48.600 If you have financial security, if you have down payment, 0:12:48.679 --> 0:12:52.600 closing costs and reserves, and you have the knowledge and 0:12:52.640 --> 0:12:54.640 your mindset is right and everything is where it needs 0:12:54.679 --> 0:12:56.800 to go, you have your team, and if your goal 0:12:56.920 --> 0:13:00.240 in twenty twenty prior to COVID was to purchase, then 0:13:00.280 --> 0:13:03.480 I personally believe you should still purchase, right because the 0:13:03.520 --> 0:13:06.240 money is dirt cheap. Now on the flip side, should 0:13:06.280 --> 0:13:09.760 you wait till the quote unquote buyers market come and 0:13:09.800 --> 0:13:12.720 the homes depreciate? When the hell is that going to be? 0:13:13.480 --> 0:13:16.000 No one has a crystal ball that could come five 0:13:16.080 --> 0:13:18.320 years from now, and then the race could be seven 0:13:18.320 --> 0:13:22.040 percent then, So like, I don't care if the homes 0:13:22.080 --> 0:13:24.360 go down ten fifteen percent, but now I'm paying seven 0:13:24.360 --> 0:13:26.959 percent on the money, right, So you got to look 0:13:26.960 --> 0:13:30.080 at the whole opportunity costs for yourself of what's going 0:13:30.160 --> 0:13:31.960 to be best for you. Everybody's going to have an 0:13:31.960 --> 0:13:36.520 opinion on this, right, everybody has. Everybody's an expert, everybody's 0:13:36.559 --> 0:13:39.400 an economist, you know what I'm saying. Like everybody knows 0:13:39.400 --> 0:13:41.960 when the crash is going to happen. People will say, oh, 0:13:42.360 --> 0:13:45.040 the foreclosure craze on waver is going to happen next year. 0:13:45.600 --> 0:13:48.640 How do you know that? How do you know that? 0:13:48.760 --> 0:13:51.520 No one knows. You know what I'm saying. So for me, 0:13:51.800 --> 0:13:54.760 if you're financially secure and you want to buy real 0:13:54.840 --> 0:13:56.200 estate and you want to get in the game and 0:13:56.240 --> 0:13:57.600 you want to invest, then invest. 0:13:57.679 --> 0:13:57.960 Do it. 0:13:58.000 --> 0:14:00.439 Just be smart about it. Take it to because iteration. 0:14:00.800 --> 0:14:04.040 If you're buying rental properties, make sure you're doing your 0:14:04.120 --> 0:14:07.640 due diligence. If it has tenants in the property, make 0:14:07.640 --> 0:14:10.199 sure you ask it for proof that they're paying. You 0:14:10.240 --> 0:14:12.880 know what I'm saying, Because anybody can tell you anything. Yeah, 0:14:12.920 --> 0:14:15.679 I got three tenants in here, they're all good. Okay, 0:14:15.720 --> 0:14:19.760 show me the proof, home seller. You know what I'm saying. 0:14:20.200 --> 0:14:22.400 Let me see two to three months of your bank 0:14:22.440 --> 0:14:26.440 statement showing these deposits going in. Show me the proof, 0:14:26.480 --> 0:14:28.880 be smart, and that's what it's all about, doing your 0:14:28.960 --> 0:14:33.840 due diligence and applying that information and going out there 0:14:33.920 --> 0:14:36.560 and executing at a high level, and being a CEO 0:14:36.760 --> 0:14:39.400 of your real estate business. Even if it's your first home, 0:14:39.480 --> 0:14:41.080 it doesn't matter. You still got to be a CEO. 0:14:41.240 --> 0:14:43.280 You can't be out here emotional. And I think I 0:14:43.320 --> 0:14:46.680 said that on the last episode two, and I've been 0:14:46.680 --> 0:14:48.840 saying it's pretty much my whole career because at one 0:14:48.880 --> 0:14:51.120 point I was emotional when I was buying homes. I 0:14:51.160 --> 0:14:53.640 wasn't really looking at numbers. I was just happy to 0:14:53.720 --> 0:14:55.680 be able to buy real estate, and I made a 0:14:55.720 --> 0:14:58.120 lot of bad decisions, which you know, I share with 0:14:58.120 --> 0:15:02.400 you guys that just paid for Like it was bad 0:15:02.440 --> 0:15:04.480 decisions and I just had to pay for it, and 0:15:04.520 --> 0:15:07.680 it sucks. But these were lessons and this is why 0:15:07.800 --> 0:15:10.880 my message my message, and I try to educate everybody 0:15:11.400 --> 0:15:12.960 to tell them, like, look, you just got to do 0:15:13.000 --> 0:15:16.480 the numbers, and don't be scared. Just be sharp and 0:15:16.800 --> 0:15:20.400 understand on what you're doing, but don't worry about what 0:15:20.560 --> 0:15:22.800 could have, should have or what can happen, because if 0:15:22.800 --> 0:15:24.800 it's going to happen, everything's going to happen in God's 0:15:24.840 --> 0:15:27.080 time anyway, it's nothing you can do about it. So 0:15:27.240 --> 0:15:29.320 just be smart to have your reserves and be prepared 0:15:29.400 --> 0:15:31.400 for the worst. You know what Ian said, you need 0:15:31.440 --> 0:15:34.760 five five years of reserves sixty months. It's like you 0:15:34.760 --> 0:15:37.040 know what I'm saying. So like many people ain't in 0:15:37.080 --> 0:15:40.040 that position to have five years. But if you lose 0:15:40.280 --> 0:15:42.440 using your last dollar to buy real estate, then you're 0:15:42.440 --> 0:15:46.040 playing yourself. You're really playing yourself. You should not be 0:15:46.160 --> 0:15:48.880 house rich and cash Paul like, you have to do 0:15:48.920 --> 0:15:49.720 your due diligence. 0:15:49.720 --> 0:15:50.640 So it's up earnest. 0:15:50.640 --> 0:15:53.560 When it comes to beard here and facecare grooming products, 0:15:53.680 --> 0:15:56.160 Scotch Porter is the real deal helping men with grooming 0:15:56.200 --> 0:16:00.560 issues they face daily itchiness, dryness, shut when it comes 0:16:00.600 --> 0:16:03.520 to your bed and hear and blemishes, bacteria and clock 0:16:03.560 --> 0:16:04.920 pores when it comes to your face. 0:16:05.240 --> 0:16:06.280 I mean, let's keep it real. 0:16:06.560 --> 0:16:09.680 Who doesn't want to soft thick growing beer. 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Correct, 0:16:41.600 --> 0:16:43.520 And I feel like maybe thousands of people must have 0:16:43.560 --> 0:16:46.760 heard that right because the refive rates have been low 0:16:47.200 --> 0:16:50.640 and thousands of America's been doing it right. So what 0:16:50.680 --> 0:16:55.160 has that been like for your business during Corona? 0:16:55.200 --> 0:16:58.760 Well, it is a pandemic. Some people call it a 0:16:58.760 --> 0:17:03.640 pandemic plandemic. I'm calling it a pandemic because right now, 0:17:04.119 --> 0:17:07.560 if you're in a real estate industry, God bless you, 0:17:07.560 --> 0:17:10.040 you know, and you're having record breaking years all across 0:17:10.119 --> 0:17:12.520 the board in the industry, from the appraisers to the 0:17:12.560 --> 0:17:16.639 realtors to shit, even the loan processors and loan assistance. 0:17:16.680 --> 0:17:19.240 They're levering up their bag because it's so much volume 0:17:19.560 --> 0:17:22.880 that companies need to hire. And now, look, I ain't 0:17:22.880 --> 0:17:25.200 gonna tell all my business, but I had to pay 0:17:25.240 --> 0:17:27.520 some people some money that I never thought I would 0:17:27.560 --> 0:17:29.440 have to pay them to come work for me right 0:17:29.480 --> 0:17:31.640 because you need talent right now because there's so much 0:17:31.760 --> 0:17:35.440 volume coming in. It's not enough bodies in the real 0:17:35.520 --> 0:17:37.679 estate industry to handle the amount of people who want 0:17:37.720 --> 0:17:39.879 to do a refinance right now or buy a house. 0:17:40.160 --> 0:17:43.760 It's absolutely incredible. So what is done for my business 0:17:44.840 --> 0:17:47.159 is blowing up. It's a great thing. I love it, 0:17:47.200 --> 0:17:50.760 but it's also overwhelming. It's stressful, like you're dealing with 0:17:50.800 --> 0:17:53.840 people's lives and that's never an easy thing when you're 0:17:53.840 --> 0:17:56.440 trying to help someone either save money on their mortgage, 0:17:56.440 --> 0:17:59.520 pull money out to go buy other real estate, then 0:17:59.560 --> 0:18:04.040 helping them do those transactions, so you know, it's late night, 0:18:04.160 --> 0:18:07.560 early mornings, lack of sleep, you know, lack of time 0:18:07.600 --> 0:18:09.720 spending at home with the fam and everything like that. 0:18:10.040 --> 0:18:11.680 It's a lot right now, so a lot of things 0:18:11.720 --> 0:18:15.600 being sacrificed, and it's for the greater good obviously, but 0:18:15.800 --> 0:18:19.240 it's a lot man. So yeah, you're making money, but 0:18:19.720 --> 0:18:22.240 it's also a lot of responsibility that comes with it 0:18:22.280 --> 0:18:25.240 because you're trying to service so many people. It gets 0:18:25.240 --> 0:18:27.840 overwhelmings and that's important. Having that balance. 0:18:27.880 --> 0:18:29.640 We talk about that a lot, just having. 0:18:29.520 --> 0:18:30.320 Balance in your life. 0:18:30.760 --> 0:18:33.160 And like we've been watching the news and it looks 0:18:33.200 --> 0:18:34.600 like the races are going to stay that way for 0:18:34.600 --> 0:18:34.920 a while. 0:18:34.960 --> 0:18:38.480 So this is going to be business, you know, God willing, 0:18:39.200 --> 0:18:41.960 you know, race will stay low. Me personally, I hope 0:18:41.960 --> 0:18:44.840 they do go back up a little bit, slow things down. 0:18:45.080 --> 0:18:47.160 That's just me, you know what I'm saying. I'd rather 0:18:47.440 --> 0:18:49.080 go up a little bit, get rid of some of 0:18:49.080 --> 0:18:53.480 these people so we can all breathe and get back 0:18:53.520 --> 0:18:56.320 to regular life so to speak. In our world. You know, 0:18:56.359 --> 0:18:59.399 the mortgage businesses set the break records this year in 0:18:59.400 --> 0:19:03.520 twenty twenty. Trillions of dollars are being went in twenty twenty. Like, 0:19:03.800 --> 0:19:06.040 I can't wait till the final number it's talied up 0:19:06.080 --> 0:19:08.280 to just see what what the mortgage business did. But 0:19:08.320 --> 0:19:11.240 it's it's incredible right now, what we're on pace to 0:19:11.280 --> 0:19:13.199