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Speaker 2: It's a crazy time that we're living in. Everybody knows
Speaker 2: obviously we in. You know the age of Corona, and
Speaker 2: I remember texting you like when when Corona first hit.
Speaker 2: I'm like, yo, that's when the stock market was crashing,
Speaker 2: and I'm like, there's real estate market about the crash,
Speaker 2: and he was like, nah, it's not And I'm like,
Speaker 2: how people were losing their jobs, stock markets crashing, people
Speaker 2: can't go to work, like all the writings on the
Speaker 2: wall for another two thousand and eight to happen, and
Speaker 2: you was like, nah, commercial real estate might be in trouble,
Speaker 2: but residential real estate, I'm like, all right, we'll see.
Speaker 2: And then to this day, it hasn't crashed. It's actually
Speaker 2: going up. In most most places in America. The price
Speaker 2: the home prices have actually going up. It's a shortage
Speaker 2: of our inventory on the marketplace. So where we're at
Speaker 2: right now as far as the state of real estate
Speaker 2: in the United States of America.
Speaker 3: The market is on fire for residential you know. And
Speaker 3: I told you this back in March. I said, nah, bro,
Speaker 3: it's not going to happen because with people and everybody
Speaker 3: was kind of saying the same thing, like, yo, two
Speaker 3: thousand and eight is coming back. Wait, don't buy weight,
Speaker 3: And I said two thousand and eight was different. That
Speaker 3: was a credit crisis, right, This is a health crisis.
Speaker 3: Credit crisis means that banks, Wall streeters, everybody, homeowners, you know, investors,
Speaker 3: everybody was greedy, you know, appraisers, everybody, right, So when
Speaker 3: the market crashed, the government was reluctant on trying to
Speaker 3: save everybody. They didn't want to bail out everybody, but
Speaker 3: they had no choice but to bail out the big names. Right.
Speaker 3: So with this one, I said, now, this is health
Speaker 3: This has nothing to do with nobody. This is nobody's fault.
Speaker 3: And if you think about it, if you look at
Speaker 3: the real estate market going into twenty twenty, it was
Speaker 3: already on fire. It was due for a correction at
Speaker 3: some point, because what goes up must come down, right,
Speaker 3: But I said, nah, this is not going to crash.
Speaker 3: There's no way, because the government is going to have
Speaker 3: to bail out everybody now, right from the big businesses
Speaker 3: to the everyday person. And when you told me that
Speaker 3: it's going to crash, that's what was in my mind
Speaker 3: because I knew, especially with the election year, they couldn't
Speaker 3: just let all these people die, people lose their homes.
Speaker 3: There's no way. And as you see, all these stimulus
Speaker 3: packages came out, everybody getting their ppe money and everything.
Speaker 4: It was recklessly and hopefully they wasn't reckless.
Speaker 3: Hopefully they wasn't reckless, and hopefully they did the right thing.
Speaker 3: But you know, you have unemployment benefits, people are getting
Speaker 3: them with ease, with no problem. So you know, you
Speaker 3: got to give the administration credit for what they tried
Speaker 3: to do to help as many people as possible. And
Speaker 3: that's why I just didn't feel like the market was
Speaker 3: going to crash. But residential real estate is on fire
Speaker 3: right now all over the country. There's thirty forty offers
Speaker 3: on one house, you know, So if you're a seller
Speaker 3: right now, if you're thinking about selling your home to
Speaker 3: upgrade or downsize, this is the time for the sellers
Speaker 3: right now, because they're going to get twenty thirty percent
Speaker 3: above asking price in some markets right now because it's
Speaker 3: just too hot right now. It's too many buyers out there,
Speaker 3: and with these low interest rates, you know, or rates
Speaker 3: being in the mid twos to low threes, depending on
Speaker 3: your circumstance, Like everybody wants to buy a house because
Speaker 3: money is cheap now, right so it's easy to the
Speaker 3: person who couldn't afford the half a million dollar house
Speaker 3: last year when rates were three and a half four percent,
Speaker 3: now it's two and a half.
Speaker 2: Can can you explain like that? Like, because the average
Speaker 2: person that maybe never brought a home might not fully
Speaker 2: appreciate because they say three and a half, two and
Speaker 2: a half, it's only one percent, that's not that big
Speaker 2: of a deal. But because they looking at it like
Speaker 2: it's stocks, like it's like if you earn one percent,
Speaker 2: you know what I'm saying, or just regular life, one
Speaker 2: percent doesn't move the needle. But in your world of
Speaker 2: mortgage is one percent is huge. Right, So if you
Speaker 2: kind of put that in perspective out.
Speaker 3: Here, I mean, look, one percent depending on your loan amount, right,
Speaker 3: that can be three four five hundred dollars a month.
Speaker 3: That could be six thousand, eight thousand, ten thousand a year,
Speaker 3: depending on the size of your loan. Right. So the
Speaker 3: big of the loan, the low a rate, the cheap
Speaker 3: of the payment. Right. So someone again who couldn't afford
Speaker 3: the five hundred thousand dollars home or get pre approved
Speaker 3: for a five hundred thousand dollar home a year ago
Speaker 3: because the rate was probably three and a half to
Speaker 3: four percent, now they're able to because now that brings
Speaker 3: their payment down and they're able to get approved for
Speaker 3: now that higher amount. So one percent is huge in
Speaker 3: the real estate in the mortgage world, interest that you're
Speaker 3: gonna pay over the life of the loan is also
Speaker 3: very important too, because if you're looking at any house
Speaker 3: that you buy, let's face it, right, the way the
Speaker 3: mortgage in the banking system is set up, it's you know,
Speaker 3: you're gonna pay interest three times more than what the
Speaker 3: houses actually work. But if you're getting a cheaper interest rate,
Speaker 3: that softens the blow a little bit, and now you
Speaker 3: can focus on your debt strategy, which is repaying back
Speaker 3: your debt and trying to beat that interest trap. You
Speaker 3: know what I'm saying, and you know little things you
Speaker 3: can do to do that. You can make one extra
Speaker 3: payment a year and you can pay off your loan
Speaker 3: in twenty two and a half years if you have
Speaker 3: a thirty year mortgage. Know what I tell folks all
Speaker 3: the time, take your income taxes refunds right and apply
Speaker 3: that every single year to your principal balance. That could
Speaker 3: bring down your debt. You can do as little as
Speaker 3: one hundred dollars a month to your principal balance and
Speaker 3: you'll be surprised how much interest you'll save on your mortgage,
Speaker 3: especially if you plan on living in the house the
Speaker 3: long term, the full term of thirty years you don't
Speaker 3: want to just make your regular payment because you're gonna
Speaker 3: pay you know, on a three hundred, four hundred thousand
Speaker 3: dollars home, you may pay back eight hundred thousand.
Speaker 2: Now that was a gym, what you just said. And
Speaker 2: I learned that in business. I don't want that to
Speaker 2: go people's head. When I first got into into the
Speaker 2: industry working in finance, I learned that like one extra
Speaker 2: payment a year on your mortgage cut seven years off
Speaker 2: of your mortgage.
Speaker 3: Absolutely, or eight seven, eight twenty two and a half years.
Speaker 2: Yeah, so that's that's huge if you really think about it.
Speaker 2: It's like one extra payment a year absolutely can really
Speaker 2: take almost a decade off, like.
Speaker 3: Basically, and it has to be towards your principal balance only.
Speaker 3: So if you're making a payment, you can't just give
Speaker 3: the bank money because they're automatically going to apply it
Speaker 3: to interest, right, because you have to direct them where
Speaker 3: you want that money to go.
Speaker 5: How does that even look?
Speaker 4: So if my mortgage is three thousand, I gotta pay
Speaker 4: six thousand if I'm doing it.
Speaker 3: Yeah, So if your mortgage is three, you can pay
Speaker 3: six and you can tell them the difference to go
Speaker 3: to principal balance only. Some online everything's online right now
Speaker 3: with all the banks, right so you can go pay
Speaker 3: your mortgage and you can specify their two principal balance only.
Speaker 3: You can write a check, put on a check two
Speaker 3: principal balance only. So, depending on how you pay your mortgage,
Speaker 3: do that. And if it's not an online option to
Speaker 3: pay extra, call the service and lender that you're paying
Speaker 3: your mortgage too, and figure out a way to accomplish
Speaker 3: that goal. Maybe they can just do automatic drafts from
Speaker 3: your account something like that and set it up to
Speaker 3: where you can make that extra payment, you know, and
Speaker 3: you'll be surprised if you make two payments extra year.
Speaker 4: That's what in my mind, I'm thinking that if I
Speaker 4: make two extra pas now that seven ers of the fourteen,
Speaker 4: I'm really at a fifteen year.
Speaker 3: Mortgage basically, And I'm glad you brought up fifteen year
Speaker 3: mortgages right, especially right now folks want to go into
Speaker 3: fifteen year loans and look, the fifteen year rate. The
Speaker 3: lowest I've seen it since we've been in COVID was
Speaker 3: around two percent, which is phenomenais, right, that's incredible. But
Speaker 3: what I try to tell people is maybe not going
Speaker 3: to that fifteen year right now, because life happens, right,
Speaker 3: you're committing yourself to a much higher payment, and what if,
Speaker 3: you know, COVID twenty one comes God forbid and it's worse,
Speaker 3: worse strained than this. Now you're committing yourself to that
Speaker 3: higher payment just to try to pay it all early,
Speaker 3: when you could have went to a thirty year, had
Speaker 3: a cheaper payment, and just manage your principal balance yourself
Speaker 3: that way, you're not committed to that fifteen year term
Speaker 3: or that twenty year term. You stay with the cheapest
Speaker 3: possible payment, but still you're paying down your debt, you
Speaker 3: know so, And I'm not against year mortgages. I think
Speaker 3: for the right people it works, right people who have
Speaker 3: substantial income and they can really afford the payment. But
Speaker 3: most people are trying to pay off their loan fast,
Speaker 3: which I get, but they're now cash strap, right, They're
Speaker 3: becoming house rich and cash poor because they're making their
Speaker 3: payment so much higher because they're just focusing on I
Speaker 3: just want to get rid of it, which again I understand,
Speaker 3: but you got to be a little bit smarter right now,
Speaker 3: because anything could happen. As we've seen, we woke up
Speaker 3: in twenty twenty, Kobe dead with God bless you know,
Speaker 3: then COVID came. Like this year has been crazy, you
Speaker 3: know what I'm saying. So like, if this doesn't teach
Speaker 3: anybody anything, you got to have cash flow right now.
Speaker 3: You got to have liquidity because anything can happen. So
Speaker 3: that's why I just try to tell home own future
Speaker 3: homeowners and current homeowners who are refinancing, if you don't
Speaker 3: have to go to the fifteen year, just stay with
Speaker 3: the twenty or thirty years, so that way you can
Speaker 3: have a little bit more cash flow.
Speaker 4: Can I go back to something you said, because when
Speaker 4: you say, I'm like, oh, how does that work? Because
Speaker 4: I've heard of corrections obviously in the stock market, and
Speaker 4: we know that's maybe eight to ten percent or eighteen percent.
Speaker 4: What does that look What does the correction look like
Speaker 4: in the real estate world? Is that interest rates go up? Like,
Speaker 4: what is the correction in the real estate world?
Speaker 3: I mean it could be rates go up, It could
Speaker 3: be home prices depreciate, you know, it could be lenders
Speaker 3: tightening up their guidelines. You know, all of these things
Speaker 3: could be corrections in the market that can affect the
Speaker 3: buying power of Americans. Right, if home prices decline like
Speaker 3: you thought it was, I mean, it sucks, but what
Speaker 3: goes up must come down at some point. Right. So
Speaker 3: that's why over leveraging is not over leveraging is key,
Speaker 3: you know. And this is why I talk a lot
Speaker 3: about rehabs, rehab loans, and things of that nature, because
Speaker 3: I want first time home buyers to think like investors.
Speaker 3: When you're buying these homes, buy them the same way
Speaker 3: that you'll see a Caesar by them, or Envy buy them,
Speaker 3: or any investor that you guys are following online by
Speaker 3: the same way they're buying. You know, there's nothing special
Speaker 3: about anybody who's flipping real estate or doing anything. They
Speaker 3: just have more knowledge than you, and they know where
Speaker 3: to look and where to find these properties. You can
Speaker 3: do the same thing. The information is available, you know,
Speaker 3: there's no excuse. It's not like ten fifteen years ago
Speaker 3: when I first came into business, there was no social media. Right,
Speaker 3: you can hashtag and follow a hashtag and you'll see
Speaker 3: hundreds of people flipping houses and they're giving you all
Speaker 3: this information. So now you just got to apply it.
Speaker 3: And if you're a first time home by it, there's
Speaker 3: so many different programs out there for you to get
Speaker 3: the rehab money to be able to now buy a
Speaker 3: home that's undervalue. Put that money into it, force the appreciation,
Speaker 3: and now you have equity in that home, and God
Speaker 3: forbid the house does depreciate. You still good because if
Speaker 3: you lose ten percent equity because the market is declining
Speaker 3: five percent equity, you're not over leverage. You're not upside down.
Speaker 3: So I try to promote don't buy retail if you
Speaker 3: don't have to, But I understand you have to in
Speaker 3: some cases buy retail because the school districts, family needs,
Speaker 3: things of that nature, don't have a choice. But still
Speaker 3: try to buy the ugliest house in the best neighborhood.
Speaker 2: So let me ask you this because you know, obviously
Speaker 2: you said that it's a seller's market, absolutely what interest
Speaker 2: rates are extremely low right now, so that would say
Speaker 2: it would be better.
Speaker 5: It's good for the buyer so.
Speaker 3: To get along, but it's great for the seller because
Speaker 3: they're going to have multiple offers on their home.
Speaker 2: Okay, So for people that's looking at maybe purchase a home,
Speaker 2: is this a good time to or should it? Because like,
Speaker 2: all right, average, like let's say somebody hasn't brought a
Speaker 2: home yet, and they looking at it like, all right,
Speaker 2: I got some money saved and low interest rates, it's
Speaker 2: a good time for me to buy a home. But
Speaker 2: if it's a seller's market, should they be looking to
Speaker 2: buy a home or should they just be waiting for
Speaker 2: it to be a buyer's market?
Speaker 5: Again?
Speaker 3: Good question, right, So this is what I tell everybody.
Speaker 3: If you have financial security, if you have down payment,
Speaker 3: closing costs and reserves, and you have the knowledge and
Speaker 3: your mindset is right and everything is where it needs
Speaker 3: to go, you have your team, and if your goal
Speaker 3: in twenty twenty prior to COVID was to purchase, then
Speaker 3: I personally believe you should still purchase, right because the
Speaker 3: money is dirt cheap. Now on the flip side, should
Speaker 3: you wait till the quote unquote buyers market come and
Speaker 3: the homes depreciate? When the hell is that going to be?
Speaker 3: No one has a crystal ball that could come five
Speaker 3: years from now, and then the race could be seven
Speaker 3: percent then, So like, I don't care if the homes
Speaker 3: go down ten fifteen percent, but now I'm paying seven
Speaker 3: percent on the money, right, So you got to look
Speaker 3: at the whole opportunity costs for yourself of what's going
Speaker 3: to be best for you. Everybody's going to have an
Speaker 3: opinion on this, right, everybody has. Everybody's an expert, everybody's
Speaker 3: an economist, you know what I'm saying. Like everybody knows
Speaker 3: when the crash is going to happen. People will say, oh,
Speaker 3: the foreclosure craze on waver is going to happen next year.
Speaker 3: How do you know that? How do you know that?
Speaker 3: No one knows. You know what I'm saying. So for me,
Speaker 3: if you're financially secure and you want to buy real
Speaker 3: estate and you want to get in the game and
Speaker 3: you want to invest, then invest.
Speaker 5: Do it.
Speaker 3: Just be smart about it. Take it to because iteration.
Speaker 3: If you're buying rental properties, make sure you're doing your
Speaker 3: due diligence. If it has tenants in the property, make
Speaker 3: sure you ask it for proof that they're paying. You
Speaker 3: know what I'm saying, Because anybody can tell you anything. Yeah,
Speaker 3: I got three tenants in here, they're all good. Okay,
Speaker 3: show me the proof, home seller. You know what I'm saying.
Speaker 3: Let me see two to three months of your bank
Speaker 3: statement showing these deposits going in. Show me the proof,
Speaker 3: be smart, and that's what it's all about, doing your
Speaker 3: due diligence and applying that information and going out there
Speaker 3: and executing at a high level, and being a CEO
Speaker 3: of your real estate business. Even if it's your first home,
Speaker 3: it doesn't matter. You still got to be a CEO.
Speaker 3: You can't be out here emotional. And I think I
Speaker 3: said that on the last episode two, and I've been
Speaker 3: saying it's pretty much my whole career because at one
Speaker 3: point I was emotional when I was buying homes. I
Speaker 3: wasn't really looking at numbers. I was just happy to
Speaker 3: be able to buy real estate, and I made a
Speaker 3: lot of bad decisions, which you know, I share with
Speaker 3: you guys that just paid for Like it was bad
Speaker 3: decisions and I just had to pay for it, and
Speaker 3: it sucks. But these were lessons and this is why
Speaker 3: my message my message, and I try to educate everybody
Speaker 3: to tell them, like, look, you just got to do
Speaker 3: the numbers, and don't be scared. Just be sharp and
Speaker 3: understand on what you're doing, but don't worry about what
Speaker 3: could have, should have or what can happen, because if
Speaker 3: it's going to happen, everything's going to happen in God's
Speaker 3: time anyway, it's nothing you can do about it. So
Speaker 3: just be smart to have your reserves and be prepared
Speaker 3: for the worst. You know what Ian said, you need
Speaker 3: five five years of reserves sixty months. It's like you
Speaker 3: know what I'm saying. So like many people ain't in
Speaker 3: that position to have five years. But if you lose
Speaker 3: using your last dollar to buy real estate, then you're
Speaker 3: playing yourself. You're really playing yourself. You should not be
Speaker 3: house rich and cash Paul like, you have to do
Speaker 3: your due diligence.
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Speaker 5: Yeah.
Speaker 4: One of the other things you said on episode twelve
Speaker 4: was that the equity in your home is monopoly money. Correct,
Speaker 4: And I feel like maybe thousands of people must have
Speaker 4: heard that right because the refive rates have been low
Speaker 4: and thousands of America's been doing it right. So what
Speaker 4: has that been like for your business during Corona?
Speaker 3: Well, it is a pandemic. Some people call it a
Speaker 3: pandemic plandemic. I'm calling it a pandemic because right now,
Speaker 3: if you're in a real estate industry, God bless you,
Speaker 3: you know, and you're having record breaking years all across
Speaker 3: the board in the industry, from the appraisers to the
Speaker 3: realtors to shit, even the loan processors and loan assistance.
Speaker 3: They're levering up their bag because it's so much volume
Speaker 3: that companies need to hire. And now, look, I ain't
Speaker 3: gonna tell all my business, but I had to pay
Speaker 3: some people some money that I never thought I would
Speaker 3: have to pay them to come work for me right
Speaker 3: because you need talent right now because there's so much
Speaker 3: volume coming in. It's not enough bodies in the real
Speaker 3: estate industry to handle the amount of people who want
Speaker 3: to do a refinance right now or buy a house.
Speaker 3: It's absolutely incredible. So what is done for my business
Speaker 3: is blowing up. It's a great thing. I love it,
Speaker 3: but it's also overwhelming. It's stressful, like you're dealing with
Speaker 3: people's lives and that's never an easy thing when you're
Speaker 3: trying to help someone either save money on their mortgage,
Speaker 3: pull money out to go buy other real estate, then
Speaker 3: helping them do those transactions, so you know, it's late night,
Speaker 3: early mornings, lack of sleep, you know, lack of time
Speaker 3: spending at home with the fam and everything like that.
Speaker 3: It's a lot right now, so a lot of things
Speaker 3: being sacrificed, and it's for the greater good obviously, but
Speaker 3: it's a lot man. So yeah, you're making money, but
Speaker 3: it's also a lot of responsibility that comes with it
Speaker 3: because you're trying to service so many people. It gets
Speaker 3: overwhelmings and that's important. Having that balance.
Speaker 4: We talk about that a lot, just having.
Speaker 3: Balance in your life.
Speaker 4: And like we've been watching the news and it looks
Speaker 4: like the races are going to stay that way for
Speaker 4: a while.
Speaker 3: So this is going to be business, you know, God willing,
Speaker 3: you know, race will stay low. Me personally, I hope
Speaker 3: they do go back up a little bit, slow things down.
Speaker 3: That's just me, you know what I'm saying. I'd rather
Speaker 3: go up a little bit, get rid of some of
Speaker 3: these people so we can all breathe and get back
Speaker 3: to regular life so to speak. In our world. You know,
Speaker 3: the mortgage businesses set the break records this year in
Speaker 3: twenty twenty. Trillions of dollars are being went in twenty twenty. Like,
Speaker 3: I can't wait till the final number it's talied up
Speaker 3: to just see what what the mortgage business did. But
Speaker 3: it's it's incredible right now, what we're on pace to
Speaker 3: do right now. It's a couple of trillion dollars. Like
Speaker 3: I don't think people understand that it's a lot of
Speaker 3: money being lent. And people think COVID and quarantines slowed
Speaker 3: things or stopped anything. They didn't stop anything. It may
Speaker 3: have slowed certain components down, like appraisals, getting tied of
Speaker 3: reports and things of that nature. But it didn't slow nothing.
Speaker 3: Now people are buying homes. And that's why I tell
Speaker 3: folks over time, if you're looking to buy, buy, what
Speaker 3: are you waiting for? Go ahead? Because your opportunity may
Speaker 3: not be there.
Speaker 5: Yeah, so let me ask you this.
Speaker 2: As far as this is a business show, so a
Speaker 2: lot of people that listen to ernalisia Is are entrepreneurs
Speaker 2: or aspiring entrepreneurs. One of the hardest things for entrepreneurs,
Speaker 2: business people ten ninety nine, contractors, things of that nature
Speaker 2: is to buy a home because it's like a lot
Speaker 2: of times it's one of the benefits of being business
Speaker 2: owners that you get to write.
Speaker 5: Off a lot.
Speaker 2: Absolutely, but the problem with that when it comes to
Speaker 2: getting a mortgage is that you don't show enough income.
Speaker 2: So now it's like, you know, you're in a tough
Speaker 2: spot because, yeah, you might have made two hundred thousand dollars,
Speaker 2: but you're only paying taxes on twenty thousand.
Speaker 3: No blessed Americans.
Speaker 5: Like that, or seven hundred and fifty.
Speaker 3: Dollars yea, yeah, yeah one eight beautiful beautiful old living.
Speaker 2: So but yeah, it's like it's hard to get a mortgage,
Speaker 2: but you was actually enlightened me, Like there's different programs
Speaker 2: for business owners, like especially like bank statement loan things
Speaker 2: that you could We haven't really covered that.
Speaker 5: Can you talk about that?
Speaker 3: Yeah, So you have loans out there that fall into
Speaker 3: that non QM category, non qualified mortgage. It basically means
Speaker 3: Fanny Mae or Freddie Mack who buys conventional loans from banks, right,
Speaker 3: they won't purchase this type of loan, but there's private
Speaker 3: lenders out there that will fund bank statement loans whereas
Speaker 3: you can put as little as ten percent down. You
Speaker 3: can borrow up to four million dollars with this type
Speaker 3: of loan, and we're using the deposits as your income
Speaker 3: for your business. So you can use either twelve months
Speaker 3: or twenty four months of those deposits in your business
Speaker 3: bank account and that can be used to qualify you
Speaker 3: for your loans. So it's no tax returns, there's no
Speaker 3: W two's obviously because you're self employed. We're not looking
Speaker 3: at any of that stuff. We just need to see
Speaker 3: twelve months of your business bank statements and we use
Speaker 3: that for your income to qualify, and you can put
Speaker 3: down as little as ten percent with these loans.
Speaker 5: How's the interest rates?
Speaker 3: Oh yeah, the rich interest rate you're gonna pay for it,
Speaker 3: like you're gonna pay like, You're gonna talk probably like
Speaker 3: in the right now six to eight percent range, depending
Speaker 3: on the lender, you know what I'm saying. And you know,
Speaker 3: when you're talking six you're probably going to have to
Speaker 3: be more thirty percent thirty five percent down, you know,
Speaker 3: high credit no minimum credit score for this program six sixty.
Speaker 3: But you want to get that lower rate, you're going
Speaker 3: to have to probably be in the high sevens with
Speaker 3: a larger down payment. But if you're talking ten percent down,
Speaker 3: you know, jumbo bank statement loan, you're probably gonna get
Speaker 3: collaborated for like seven and a half percent.
Speaker 5: Can you refinance later?
Speaker 3: Absolutely? You can always refinance. Right, And here's another gym.
Speaker 3: If you use the bank statement program and you get
Speaker 3: into let's just say you're raighted seven percent. Right, file
Speaker 3: your taxes and your business has been in business for
Speaker 3: five years, like legally in business, right, Like you have
Speaker 3: your filing receipt in this document. Freddie Mac has a
Speaker 3: program where you can use one year tax returns as
Speaker 3: a business owner. Right. So now this is a conventional loan.
Speaker 3: So you can refinance into the conventional loan. Just file
Speaker 3: your taxes the right way, show the income. Now pay
Speaker 3: the tax the tax man they what you owe them,
Speaker 3: or get into a payment arrangement so that way you
Speaker 3: have a monthly payment on your tax bill that's outstanding.
Speaker 3: We include that tax payment into your debt to income ratio.
Speaker 3: And now you can use one year your TAXI terms
Speaker 3: and you don't those negative tax with terms. We don't
Speaker 3: even have to look at it. So you can just
Speaker 3: use the one year and then refinance into a conventional loan.
Speaker 3: After you do the bank statement loan.
Speaker 4: How long you have to stay in the property.
Speaker 3: If you're doing a primary residence, it's one year I
Speaker 3: can perceive. But obviously Banks namer loans is not just
Speaker 3: for primary residents. You can do vacation homes with it,
Speaker 3: you can do investing properties.
Speaker 2: What it is well, but that's that's that's big, especially
Speaker 2: for business owners because if you compare, it's like a
Speaker 2: hard money.
Speaker 5: Hard money's like ten percent, yeah, hard money.
Speaker 3: Right now, COVID rates are probably going to be ten
Speaker 3: to thirteen fourteen percent depending on who you're working with. Yes,
Speaker 3: only in your LLC's name. So these bank statement loans
Speaker 3: just to clarify us in your personal name. Still it's
Speaker 3: not in your LLC's name. So when you go asset
Speaker 3: based or hard money, that's strictly in your LLC's name.
Speaker 3: And that's why the rate is even higher because it's
Speaker 3: on LLC based.
Speaker 2: But that's the semi valuable and even if it's six
Speaker 2: percent or even eight percent, it's still depending on how
Speaker 2: much income you're not showing, because you have realized it's
Speaker 2: like it's a trade off, right, you either show a
Speaker 2: bunch of income. By showing a bunch of income, you
Speaker 2: have to pay taxes on that money.
Speaker 3: Correct.
Speaker 2: So like let's say you're making two hundred thousand dollars
Speaker 2: and you're showing twenty thousand. In order to qualify, you
Speaker 2: need to show one hundred thousand. So now you got
Speaker 2: to show eighty thousand dollars more correct, So now you
Speaker 2: could potentially.
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Speaker 2: Be paying thirty thousand more. Absolutely taxes, So even if
Speaker 2: you're paying twice as much or even three times as
Speaker 2: much on an interest rate, it might not equal that
Speaker 2: at least upfront. And then you always have the opportunity
Speaker 2: even if you're paying a higher amount to refinance down
Speaker 2: the line. Absolutely, you always have the opportunity to sell
Speaker 2: the Propertylute, you always have the opportunity if it's a
Speaker 2: multi family home to generate income to kind of upset that.
Speaker 2: So that's something that business owners should definitely be aware
Speaker 2: of because, like I said, that's a decision that business
Speaker 2: owners have to make all the time, Like, all right,
Speaker 2: do I sacrifice, do I show more income and pay
Speaker 2: more taxes? Or do I just rent an apartment forever
Speaker 2: because I don't have enough money to just buy a
Speaker 2: home and cash something that you know, if you if
Speaker 2: you if you don't, if you don't own a business,
Speaker 2: it's not a big deal, but not just business owners.
Speaker 2: But also, like I said, ten nine contractors.
Speaker 3: Independent contractors are considered self employed in the mortgage world
Speaker 3: because you're not having any taxes taken out of your
Speaker 3: your checks. So you're self employed. So you're filing a
Speaker 3: schedule C, right, and you have to pay taxes. So
Speaker 3: it's the same thing, you know, But if you're if
Speaker 3: you're ten ninety nine, you're going to have to I
Speaker 3: would probably set yourself up as a business so that
Speaker 3: way you can get better tax benefits of having yourself
Speaker 3: incorporated or LLC brusu's just having yourself as an ESQ.
Speaker 3: I mean schedule see filing. But you know, like you said,
Speaker 3: pick your poison, right you want to pay seven hundred
Speaker 3: and fifty dollars like you know, or you want to
Speaker 3: go buy real estate, so you're going to have to
Speaker 3: pick what's your poison right now. So if you want
Speaker 3: to have this program gives you the option of having
Speaker 3: your cake and eating it too, paying less taxis, using
Speaker 3: the deposits to qualify, and you still buy in real estate.
Speaker 3: You're just going to have to pay a premium for it.
Speaker 3: So for me, I think the program is amazing and
Speaker 3: it and it helps so many entrepreneurs get into the
Speaker 3: real estate business.
Speaker 5: Yeah, get you a good CPA.
Speaker 3: Yeah, get you, get you a great get you a
Speaker 3: great CPA.
Speaker 5: That's a fact.
Speaker 4: So you have you have a question, Jory, No, I
Speaker 4: wanted to going into one of the things that you
Speaker 4: mentioned before, and that's the appraisal process. Okay, because obviously
Speaker 4: I've spoke about this a number of times of how
Speaker 4: my family was robbed of thousands of dollars doing during
Speaker 4: the appraisal process. And one of the things in speaking
Speaker 4: to you, what I came to find out was something
Speaker 4: called the AMC.
Speaker 5: Can you explain what that is?
Speaker 3: So AMC stands for Appraisal Management company. So when the
Speaker 3: market crashed, the government said it was the bank's fault
Speaker 3: in the appraises. So they took the control away from
Speaker 3: the banks and the brokers, the mortgage brokers. They took
Speaker 3: the appraisal control away from us, that process away from us. Right,
Speaker 3: we can't have direct contact with an appraiser, so when
Speaker 3: we do a deal, we go through the appraisal management company.
Speaker 3: The appraisal management company now picks from a round robbin
Speaker 3: of appraisers that's approved. But whatever, Linda, they're working with
Speaker 3: and then they're the ones who have the communication with
Speaker 3: the appraiser. They set up the order with them. You
Speaker 3: got to contact this person whatever.
Speaker 4: Right in my mind, I'm thinking the government did this
Speaker 4: because it's like if I was an appraiser, I know
Speaker 4: you worked at the bank, You're telling me, like, yo,
Speaker 4: just give them a good rate so we can make
Speaker 4: money on the deals.
Speaker 5: Is that why?
Speaker 3: It was kind of like this.
Speaker 4: Let me tell you how I.
Speaker 5: Went to tell you the story.
Speaker 3: Let me tell you how it went. In a wild
Speaker 3: cowboy days, it would say, Yo, Giovanni, I need this
Speaker 3: deal to go this eight hundred thousand. I know it's
Speaker 3: probably on the worth seven, but what can you do?
Speaker 3: We can make we can pay you extra, and Giovanni
Speaker 3: will come back with appraiser report of eight hundred thousand dollars.
Speaker 3: And there was no systems in place back then and
Speaker 3: no technology like we have now where underwriters were really
Speaker 3: vetting that appraisal. They would just close on it, right,
Speaker 3: they would take their words. So the market was being inflated.
Speaker 3: And what they're saying is true. You know this call
Speaker 3: was made this bad. We had too much contact. Right,
Speaker 3: if you're on a praiser and you know I'm sending
Speaker 3: you a lot of business. Look, if I need you
Speaker 3: to make this happen, make it happen, and they would
Speaker 3: because there was really no regulation behind it. Now with
Speaker 3: the appraisal management company, that's out of the window. You
Speaker 3: can't even talk to the appraiser. It's illegal for US
Speaker 3: loan officers to talk to appraisers now, so I don't
Speaker 3: know who to hell, the appraiser is going to be
Speaker 3: on a deal until I get the actual report. And
Speaker 3: even when I get the report, I can't make contact
Speaker 3: with them. If I want to dispute something, I have questions,
Speaker 3: I think there's errors. It all has to funnel back
Speaker 3: through the AMC, and then the AMC goes back to
Speaker 3: that appraiser to make whatever corrections.
Speaker 4: And so my thing is like, and I've seen this
Speaker 4: a lot, is like, I wonder how many people look
Speaker 4: like us in this management company.
Speaker 3: Oh, it's slim to none. Because in most cases, right,
Speaker 3: we need black appraisers. We need we need people that
Speaker 3: look like us going into our neighborhoods valuate our property
Speaker 3: because we know the true value of our areas in
Speaker 3: our neighborhoods. Most most of these folks don't and that's
Speaker 3: when you see people getting these homes of praise and
Speaker 3: like your situation, they devalued.
Speaker 4: You came in, spent ten minutes here, I paid them
Speaker 4: seven hundred dollars devalue mee. We lost like one hundred
Speaker 4: thousand on the deal.
Speaker 3: It's terrible, you know, it's terrible. So if anybody's looking
Speaker 3: to get into the real estate industry, looking to becoming
Speaker 3: an appraiser, there's a serious need to become an appraiser,
Speaker 3: and especially if you're a minority, this could be a
Speaker 3: good way for you to learn the real estate market
Speaker 3: because you learn and how to value properties right, and
Speaker 3: if you're going to invest, what better knowledge to have
Speaker 3: than and being an appraiser. It pays well, and it
Speaker 3: pays well ten minutes, ten minutes. But you got to
Speaker 3: think about though, it doesn't pay that well no more
Speaker 3: for the appraises, right, because now you have that AMC
Speaker 3: of the company. So now the AMC has to eat
Speaker 3: too off that same fee. So now the appraisers actually
Speaker 3: make less. And that's why you see a lot of
Speaker 3: sloppy work now, right, because they're not making as much
Speaker 3: money as they used to. Now, what you see a
Speaker 3: lot of now they'll make the So there's two there's
Speaker 3: two appraisal reports. Right, it's either going to come back
Speaker 3: as is or subject to repairs. Right, So if it
Speaker 3: comes back as is, I mean the house is fine
Speaker 3: how it is, right, but it comes back subject to repairs,
Speaker 3: then whatever the appraiser list on that report that needs
Speaker 3: to be repaired, it needs to be repaired prior to closing.
Speaker 3: And then they have to come back out and do
Speaker 3: a reinspection. That's another trip fee that could be an
Speaker 3: extra one to fifty to five hundred dollars just depending
Speaker 3: on the property type and everything like that. So that's
Speaker 3: how they're making more money. You know what I'm saying.
Speaker 3: They're making up for that loss is because now praisers
Speaker 3: are going in and they're looking for cracks, they're looking
Speaker 3: for mold, they're looking for whatever's out of order, you
Speaker 3: know what I'm saying, So that way they can put that.
Speaker 5: Put back on.
Speaker 4: The appraiser is different from the home inspector. Even though
Speaker 4: they come in they look at the property. They may say,
Speaker 4: hey you need a new furnace, Hey that bathroom needs
Speaker 4: new plumbing.
Speaker 3: That's different from the home inspection. Absolutely, home inspection. The
Speaker 3: home inspector is coming in to look at the house,
Speaker 3: and they're going to see about the mechanics of the
Speaker 3: house to make sure the roof, the baller, the heat,
Speaker 3: the plumbing, electrical everything is where it used to be
Speaker 3: and what they feel like needs repairs and what's the
Speaker 3: cost to cure those repairs, right, And then they're going
Speaker 3: to give you probably a thirty to fifty page report
Speaker 3: with all this information in there right telling you this
Speaker 3: is wrong, this is wrong, it's wrong. So the home
Speaker 3: inspector is going to be thorough right. They're not spending
Speaker 3: ten minutes, they're spending two three hours, you know, depending
Speaker 3: on the size of the home, and they're looking through everything.
Speaker 3: But even with a home inspection, you're really not going
Speaker 3: to know your home until you live in it, you know.
Speaker 3: But this would give you a good idea of what
Speaker 3: you're buying, right, So it's very important get a home inspection.
Speaker 3: And there's a lot of times that I'm starting to
Speaker 3: see on deals with folks are opting out of home
Speaker 3: inspections because they think it's a good house or it
Speaker 3: was just recently renovated. If it's a flip, definitely get
Speaker 3: a home inspection because these investors are being cheap with
Speaker 3: their materials and they work. So you need to go
Speaker 3: in there and double check and have somebody with professional
Speaker 3: eyes that you don't have to kind of look at
Speaker 3: this stuff because a lot of them are putting cheap materials.
Speaker 4: I'm thinking like, yeah, they probably going to bring the
Speaker 4: cheapest material to be done the fastest, tells the quickest.
Speaker 3: Absolutely, they trying to turn the burn, you know what
Speaker 3: I'm saying. So don't don't devalue your home and home inspection,
Speaker 3: you know what I'm saying. Make sure that you take
Speaker 3: serious notes. You're looking be there, you know, ask questions,
Speaker 3: learn about it because if you're going to invest, that's
Speaker 3: also free not free training, right because you're paying for it,
Speaker 3: but it's still training if you if you use that information,
Speaker 3: that you're learning because now they work for you. Now
Speaker 3: they got to tell you this stuff, right, what's wrong
Speaker 3: with this? Blah blah blahlah blah. Now you're starting to learn, right.
Speaker 3: So that's another hack, so to speak. If you're trying
Speaker 3: to get into real estate and you're buying your first house,
Speaker 3: take the process serious, learn the entire process, everything that
Speaker 3: you need to know. So that way when it's time
Speaker 3: to do more deals. You already have the knowledge. No
Speaker 3: one can take it from you. You have the blueprint,
Speaker 3: you have the blue brinds.
Speaker 2: So you know, one thing that a lesion. We're not
Speaker 2: just tied to America. We get support from all over
Speaker 2: the world, like literally, we get tons of support in Canada.
Speaker 2: Shout out to Toronto, Shout out to Montreal, out to
Speaker 2: Shout out to Vancouver, Shout out to the whole country
Speaker 2: in Canada. Shout out to the Caribbean, all the countries
Speaker 2: in Caribbean. Shouts at dr Shout to pr Shout to Jamaica,
Speaker 2: Shout out to Antigua.
Speaker 3: You guys are like number one in all these countries.
Speaker 4: We got we gotta find.
Speaker 2: On Shout to the Caribbean. Shots to Monday, London. The
Speaker 2: UK is a big hub for us. To London, shout
Speaker 2: out to everybody out there, and shout out to everybody
Speaker 2: in Africa. We've been doing a lot of stuff in Africa.
Speaker 2: We're going to go there. Yeah, Shout out to the
Speaker 2: whole continent in Africa. Shout out to Asia. Shout out
Speaker 2: that all over the world or every continent. So you know,
Speaker 2: a lot of most of our continents kind of you know,
Speaker 2: based around America because that's where we're from and that's
Speaker 2: where we live. But we want to talk to people
Speaker 2: and get people information that because you know a lot
Speaker 2: of people live in especially like the you know, London, Toronto, Jamaica.
Speaker 2: They have family in America and you know they go
Speaker 2: back and forth and they might want to invest in America.
Speaker 2: So there's different programs and things for like international people
Speaker 2: as well.
Speaker 3: Right, absolutely, absolutely, So you have what's called foreign national
Speaker 3: loans where if you're not living here or a US citizen,
Speaker 3: you still have the ability to get a loan and
Speaker 3: buy investment properties here in the US. So it's called
Speaker 3: the foreign national loan, and depending on the lender, you
Speaker 3: can put down as little as twenty to thirty five
Speaker 3: percent down payment on these loans. And it's not a
Speaker 3: real difficul cool process to get approved foreign national. Right,
Speaker 3: there's only a handful of lenders that will take these
Speaker 3: type of loans. There's not too many of them. So
Speaker 3: if you are, you know, overseas and you want to
Speaker 3: get a foreign national loan, just do a simple Google
Speaker 3: search and you'll see a bunch of lenders that will
Speaker 3: come up. They will tell you there are different requirements,
Speaker 3: but the baseline of it is no credit score requirement
Speaker 3: because obviously you're not US citizen. Some lenders will want
Speaker 3: you to have a US bank account and have the
Speaker 3: money transferred over to the US. Some lenders don't. They'll
Speaker 3: accept the money coming in from overseas the day of closing,
Speaker 3: but a lot of them want you to have the
Speaker 3: money in the US already, So check with the lender
Speaker 3: for their particular guidelines on what they require. If you're
Speaker 3: self employed, then you have to get a letter from
Speaker 3: your account or your CPA just verifying where your income
Speaker 3: is and how long you've been in business, if a
Speaker 3: lot of good standing and things of that nature. If
Speaker 3: you are a W two employee, I'm not sure if
Speaker 3: they even call it W two them Lloyds over there,
Speaker 3: but whatever you guys call it. If you work for somebody,
Speaker 3: then you get a paycheck from someone else, then we
Speaker 3: have to get a letter also from your employer, just
Speaker 3: to verify your employment. Some lenders will rub not rubbed,
Speaker 3: but run like you do a certain country, I forget
Speaker 3: the name what they call it, and just do make
Speaker 3: sure you're not on like any terrorist list or anything
Speaker 3: like that fair enough. Well, you know, got to make
Speaker 3: sure that you're not, you know, doing nothing crazy out here.
Speaker 3: But you know, there are options out there for foreign
Speaker 3: investors to invest here in the United States and buy
Speaker 3: investment properties. I've helped ton of foreign investors, especially in
Speaker 3: the Philadelphia market. Like you know, a couple of years ago,
Speaker 3: everybody in China was coming in to Philly and buying
Speaker 3: up all the Philly right. Shout out to my guy
Speaker 3: Malik caught out there in Philly. We did a lot
Speaker 3: of deals out there together. But shout out to my
Speaker 3: god real estate coach Carter. But yeah, it's opportunities out
Speaker 3: there for foreign investors too, that's here in the United States.
Speaker 3: So COVID slowed it down a little bit, so you know,
Speaker 3: it's not too many banks like it was prior to
Speaker 3: COVID that are doing it, but you can still, you know,
Speaker 3: find good financing out there.
Speaker 2: What are some of the biggest hurdles that stop people
Speaker 2: from buying homes credit score? Is it not having enough
Speaker 2: for the down payment, because that's something that you know
Speaker 2: a lot of times people. Is it just not having
Speaker 2: a proper education like what it's.
Speaker 3: Above, you know, not having a proper education first and foremost.
Speaker 3: That's the biggest thing I see. People don't they fear
Speaker 3: what they don't know, right, So most people who don't
Speaker 3: buy a home, and when you speak to them, they
Speaker 3: don't know nothing about the process. They don't know nothing
Speaker 3: about loans, they don't understand interest rates. It's just overwhelming
Speaker 3: for them. Right, So that's first things. First is the knowledge.
Speaker 3: Then credit. Credit is probably the second biggest thing. People
Speaker 3: have bad credit out here, and they need to get
Speaker 3: worry about fixing their credit and stop spending so much.
Speaker 3: Then I will probably say cash the capital, you know.
Speaker 3: I think that's probably the third thing that I see
Speaker 3: that hold people back, especially in cities like New York.
Speaker 3: LA was very expensive to buy real estate. You know,
Speaker 3: a two family here is a million dollars. Right, you've
Speaker 3: got to talk about you need probably three point five
Speaker 3: percent plus closing costs. I mean, before you know, you
Speaker 3: can be close to one hundred k you know that
Speaker 3: you need to buy a house. So it's a lot
Speaker 3: that happens. I mean, it's a lot that stops home buyers.
Speaker 3: But these are the things that I see the top
Speaker 3: three that stop the lack of education, credit and capital.
Speaker 4: Yeah, I like what you said, we don't know what
Speaker 4: we don't know, right, And part of that is the question.
Speaker 4: And so like, when we're getting into this process, what
Speaker 4: are some things when we're trying to find the right
Speaker 4: loan office or the right commercial bank or investment bank.
Speaker 4: What are the questions that we should be asking before
Speaker 4: we take that step.
Speaker 3: When you interview on your loan offices?
Speaker 5: Right?
Speaker 3: Oh man, there's tons of questions that you need to
Speaker 3: ask them. First of all, do they own any property themselves?
Speaker 5: Right?
Speaker 3: Are they investing their homeowners themselves?
Speaker 4: Right?
Speaker 3: How long have they been in the business? Very important
Speaker 3: question to me because look, there's nothing wrong with rookie
Speaker 3: loan officers, right, but they don't have the experience. They
Speaker 3: don't have the product knowledge yet, they don't know how
Speaker 3: to maneuver.
Speaker 5: Right.
Speaker 3: They're going to be more reactive than proactive because they're
Speaker 3: learning on the job. So I experience. You know, how
Speaker 3: many deals are you really closing? How many did you
Speaker 3: close last month?
Speaker 5: Right?
Speaker 3: Just to get an idea of what that person is
Speaker 3: closing people, are they really truly honestly helping?
Speaker 4: How much is a season person? How many how many
Speaker 4: closings that they haven't a season loanovers.
Speaker 3: I mean, you could be seasoned, it's still you know,
Speaker 3: not right. So, I mean, if you're a top producer,
Speaker 3: in my opinion, you closing well over one hundred plus
Speaker 3: deals a year. You know, if you're a top producing
Speaker 3: loan officer. But the mega producers are closing a couple
Speaker 3: hundred loans a year, you know they're they're out here
Speaker 3: really killing it. So but you know, the average loan
Speaker 3: officer is probably closing four deals a month somewhere an there,
Speaker 3: which is not bad. You know, depending on your compensation level,
Speaker 3: you can still make great a great living closing four
Speaker 3: or five deals a month. But you know, you want
Speaker 3: to ask these people these questions. Do they have a team,
Speaker 3: very important, especially in times right now where everybody's overwhelmed
Speaker 3: and busy. Are you the only person that they're going
Speaker 3: to speak to, right? So team is very important. They
Speaker 3: are they underwriting their loans in house?
Speaker 5: Right?
Speaker 3: Is their underwright and being sourced to somewhere else? Or
Speaker 3: what kind of control do they have? You know, these
Speaker 3: are all the things that are very important because you
Speaker 3: want to know that your deal is going to be
Speaker 3: able to go through the system with no issues.
Speaker 2: So, speaking of the mortgage industry and working with a
Speaker 2: mortgage professional. You're a mortgage you're a loan officer, correct,
Speaker 2: So we haven't had this conversation either. We talk about
Speaker 2: like investing in real estate, but there's always two sides
Speaker 2: of the coring, so you can make money actually working
Speaker 2: in real estate as well. Like you know, we've interviewed
Speaker 2: Kata Keanu wats we talked about like being a real
Speaker 2: estate agent or realter. So like how what are the
Speaker 2: opportunities for people if they want to become like where
Speaker 2: you are as far as a loan officer? How do
Speaker 2: you do that? Like you have to go to school
Speaker 2: for that? Is it like a test that you take?
Speaker 2: Like do you how do you get hired? Like what's
Speaker 2: to do?
Speaker 5: Well?
Speaker 3: So first and first you have to get license, right,
Speaker 3: So you have to get licensed. You have to take
Speaker 3: the safe test and that's I think twenty five hours,
Speaker 3: which is not a long period of time. It's not
Speaker 3: a lot of hours, right, you can do that in
Speaker 3: a week. You can do it online with no problem.
Speaker 3: Of course you're a couple hundred bucks. Once you pass
Speaker 3: the class, then you have to take the federal exam.
Speaker 3: And when you pass the federal exam. Then you have
Speaker 3: to submit your information to NMLST, you know, National Mortgage
Speaker 3: Licenses System, that's the acronym. You keep saying. Yeah, actually,
Speaker 3: and I'm saying that because I'm official telling you I'm
Speaker 3: a licensed loan officer, like I'm not an Internet guy.
Speaker 3: I always say this, right, and that's why I started
Speaker 3: saying my license number one to be compliant. At one
Speaker 3: point I knew about her. Yeah, I heard on every video,
Speaker 3: every video. It's like NMLS number five as I almost
Speaker 3: forgot that.
Speaker 5: Right.
Speaker 3: But it's important that once you once you pass, then
Speaker 3: you submit all your documentation got to get fingerprinted. I mean,
Speaker 3: we're getting your credit gets looked at. So you can't
Speaker 3: really have bad credit. If you have any issues on
Speaker 3: your credit, you have the right explanations of why, if
Speaker 3: you have outstanding child support and things like that. This
Speaker 3: is serious. This is not like you. Just when I
Speaker 3: came into business, there was no licensing. They literally gave
Speaker 3: me a phone book and said call people. Right, I
Speaker 3: didn't know a damn thing. But now after the crash,
Speaker 3: they make people get licensed now, So if you're a
Speaker 3: licensed loan offic shout out to all the licensed loan offices,
Speaker 3: by the way, that's how you start to get licensed.
Speaker 3: But that doesn't mean you're going to get a job,
Speaker 3: right because most banks right now don't have time to
Speaker 3: hire and train new loan officers. It's too busy, right,
Speaker 3: So you have to find either more company, a mortgage broker,
Speaker 3: or even a big bank right that's willing to take
Speaker 3: the chance with you and hire you. Or I would
Speaker 3: recommend anybody looking to get in the business try to
Speaker 3: join a team, right because if you join the team,
Speaker 3: like I run a team right around my own division.
Speaker 3: But I won't hire anybody. No, sorry, not right now,
Speaker 3: not even not right now. Please don't hit me up
Speaker 3: on that. You need to hear experience minimum, right, But
Speaker 3: there are there are people in my position that will
Speaker 3: hire new people because they may have the capacity to train.
Speaker 3: I don't have that capacity right now. Unfortunately, at some
Speaker 3: point I will, but not not today, right. But get
Speaker 3: on the team so that way you can get that experience,
Speaker 3: you can get that train and you can mess up
Speaker 3: and have somebody to guide you and hold your hand.
Speaker 3: Because there's a lot that goes into originating loan people think,
Speaker 3: you know, especially with the digital stuff that we have
Speaker 3: and the information and technology era that we're in. It's
Speaker 3: so easy to go on these websites and people get
Speaker 3: a pre qualification letter and they think it's so easy. Right,
Speaker 3: It's not that easy. It's something these guidelines. If you
Speaker 3: look at the underwriting guidelines, even from like an FAHA loan, right,
Speaker 3: the underwriting guidelines is over a thousand pages. There's a
Speaker 3: lot of information. You know what I'm saying, And we
Speaker 3: have to be Godeline ghats like, you know what I'm saying, Like,
Speaker 3: we have to know our guidelines. This is our bible,
Speaker 3: this is this is how guidelines, this is how we
Speaker 3: make our living right. So for me, I study these guidelines.
Speaker 3: I live in these guidelines. They tell you everything you
Speaker 3: need to do to execute right and and then you
Speaker 3: have to now be able to articulate that to someone
Speaker 3: who has no clue. Right. So it's not it's like, what.
Speaker 5: Are some of the guidelines that you have to memorize?
Speaker 3: Man, Everything guidelines changed today, all certain things right, like
Speaker 3: especially in COVID. Right, things are changing rapidly. It seems
Speaker 3: like almost every other week there's something coming out from
Speaker 3: the government saying this or that right, especially with self
Speaker 3: employee borrowers making sure that their businesses operate and they're running.
Speaker 3: If if you're buying investment properties, they want to make
Speaker 3: sure now that rent is being collected, especially if you're
Speaker 3: refinancing and you're using an income to qualify. Right, we
Speaker 3: got a document, you're receiving rent. Now. There's a lot
Speaker 3: that's happening, and all that I discussed in the blueprint,
Speaker 3: by the way, but there's a lot happening in the
Speaker 3: market right now, and it happens at a rapid pace.
Speaker 3: We wake up and the guidelines are changed, and then
Speaker 3: we have to just learn them and adapt, and it
Speaker 3: affects every loan that's in the pipeline. Sometimes they'll give
Speaker 3: you like, oh, it's going to be December first or
Speaker 3: January first, twenty twenty, but sometimes they say effective immediately.
Speaker 4: I remember we had a conversation. I was reading an
Speaker 4: article and I think they gave you like a week.
Speaker 3: I think it was September. It was for the refinance
Speaker 3: feed that they added the refinance fee, and the whole
Speaker 3: industry got pissed off, Like the entire mortgage industry was
Speaker 3: pissed right, And then they they delayed it to December first.
Speaker 5: What did that?
Speaker 3: So they added so Fannie Mae and Freddie Matt came
Speaker 3: out I think this was August, that they're taxing lenders now,
Speaker 3: basically saying, hey, y'all doing a lot of refinances. Rate
Speaker 3: is low. We need to make some of my stimulus
Speaker 3: to basically, and we're going to tax y'all a half
Speaker 3: a point for every refud that you're going to sell
Speaker 3: to Fandy made and Freddie Mack effective immediately. So that
Speaker 3: means that you're going to sell to them, right, So
Speaker 3: they basically said, we want our money, and you have.
Speaker 3: You could have a pipeline of a thousand loans, two
Speaker 3: thousand loans in your pipeline right now. You got to
Speaker 3: pay a half a point per loan. That could be
Speaker 3: twenty thirty forty fifty million dollars worth of loans one
Speaker 3: hundred million dollars a long times a half a point
Speaker 3: that you didn't expect. They're taking your revenue, right, but
Speaker 3: they're not going to take the lenders revenue.
Speaker 1: I know.
Speaker 3: Is it's gonna take your revenue. They're gonna get charged
Speaker 3: charge you more. We're gonna we're gonna charge you more
Speaker 3: because we're not gonna pay for that, right And and
Speaker 3: anytime things like this happened, it gets passed on to
Speaker 3: the consumer, like the lenders are not going to pay
Speaker 3: for it, you know. So the industry went crazy and
Speaker 3: they decided to delay it to December first. So people
Speaker 3: who are originating refinances right now, that half a point
Speaker 3: is already built into your rate sheets already, you know
Speaker 3: what I'm saying. Which in town made interest rates for
Speaker 3: refinances depending on which Linda, go up by eight to
Speaker 3: three eighths of a point over the past week. Because
Speaker 3: now it's loans that's sold by a certain period of time,
Speaker 3: so we have to cut. Once loans are closed, it
Speaker 3: takes a while for it to get sold to the agencies,
Speaker 3: you know what I'm saying. So you got to price
Speaker 3: that in now because you don't know when they're gonna
Speaker 3: buy it from you.
Speaker 1: You know what I'm saying, Coach, The energy out there
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Speaker 3: It was the new game day scratches from the California
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Speaker 3: the roof.
Speaker 6: Are you saying it was the off field play that
Speaker 6: made the difference.
Speaker 3: On the field, A little play makes your day, and
Speaker 3: today it made the game.
Speaker 5: That's all for now.
Speaker 6: Coach one more question play than new Los Angeles Chargers,
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Speaker 6: older to purchase play or claim