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The Mortgage Trap Nobody Warned Me About (Until I Was Buying My 5th House) · The Table with Anthony ONeal

0:00
[SPEAKER_01]: Pam, what's going on, Pam, listen, today's gonna be a good conversation.
0:04
[SPEAKER_01]: I'm learning some stuff needs to be offered to internet and then you talk about little bit of stuff, but I'm actually going through a new home purchase, you know, with my realtor y'all know him for years, Keith.
0:17
[SPEAKER_01]: And throughout this new process, because we're elevating the home time when we're living in, I've learned a lot of things, a lot, a lot of things, that I didn't know, even as a money guy, and I was like, man, if I didn't know this, then my community didn't not know this.
0:34
[SPEAKER_01]: Today everyone ever real conversation with my brother Keith and his friend and brother Jamal and I think it's going to be real solid y'all.
0:43
[SPEAKER_01]: So listen, I need to have a lot can keep a lot because we can get straight into it.
0:46
[SPEAKER_01]: Keith Jamal, keep welcome back to the show, my brother.
0:49
[SPEAKER_01]: Thank you, my welcome to the show for the first time.
0:51
[SPEAKER_01]: Thank you, thank you.
0:52
[SPEAKER_01]: No real quick for the people who are new to you.
0:55
[SPEAKER_01]: Tell them just a little bit about yourself real quick.
0:57
[SPEAKER_01]: So that way we can just make sure as we get into this conversation they know your credentials and your background.
1:03
[SPEAKER_00]: So I'm a mortgage lender with cross-mission mortgage.
1:05
[SPEAKER_00]: I've been in a lending space for over four years now.
1:08
[SPEAKER_00]: So I hope, first time home buyers, second buyers, and as well as investors, buying properties either ranging from one to four units.
1:17
[SPEAKER_00]: Yeah, yeah, I love that.
1:18
[SPEAKER_00]: I love that.
1:19
[SPEAKER_01]: Um, man.
1:23
[SPEAKER_01]: I want to start here because I think a lot of people just don't know like we bring in Keith all the time to talk about houses and you know how to get into the house, what to look for in the house, but I've really been looking for someone to come in from the lending perspective and it really teaches what are the right ways as a employee, as a non-employee, I'm an employer, yourself employed.
1:48
[SPEAKER_01]: Man, this process was actually very difficult.
1:52
[SPEAKER_01]: I would say difficult because I had all my stuff in line, right?
1:55
[SPEAKER_01]: But even having all your stuff in line, it is still a difficult process.
1:59
[SPEAKER_01]: Yeah.
1:59
[SPEAKER_01]: And this was my first time purchasing something of this magnitude as a self-employed person.
2:05
[SPEAKER_01]: Between you and Keith, why is that in case?
2:08
[SPEAKER_01]: Why is it easier for a W2 employee?
2:10
[SPEAKER_01]: Yee.
2:11
[SPEAKER_01]: who may make $50,000 a year, $100,000 a year.
2:16
[SPEAKER_01]: E is here to get into a house, compared to some of that myself, who shows millions, right?
2:22
[SPEAKER_01]: But I still gotta go through headaches, loan nights, every single day, you, someone else asked me for new documents.
2:30
[SPEAKER_01]: And I'm like, yo, bro, the money is there!
2:34
[SPEAKER_01]: What are we tripping on?
2:36
[SPEAKER_00]: Why is that the case, man?
2:38
[SPEAKER_00]: I mean, think about it this way.
2:39
[SPEAKER_00]: So if you're a W2 employee, you generally like salary.
2:41
[SPEAKER_00]: Yeah.
2:42
[SPEAKER_00]: So let's say you make it $75,000.
2:43
[SPEAKER_00]: Okay.
2:43
[SPEAKER_00]: Underright, we're going to look at it.
2:45
[SPEAKER_00]: This is guaranteed income.
2:47
[SPEAKER_01]: Right.
2:47
[SPEAKER_00]: Self-employed is like, oh, I made gross.
2:50
[SPEAKER_00]: A couple million dollars.
2:51
[SPEAKER_00]: Okay.
2:51
[SPEAKER_00]: What's your net operating income after all the expenses?
2:54
[SPEAKER_00]: It's like, oh, well, actually, my business only brought in $100,000.
2:57
[SPEAKER_00]: So you wrote off everything.
2:59
[SPEAKER_00]: So like, now it's a high risk, it's like, okay, now you want this high loan, that's like a jumbo-blown product that you're trying to buy houses a million dollars.
3:06
[SPEAKER_00]: But your tax returns are 2024, has your business bring it only $100,000.
3:09
[SPEAKER_00]: So now I got a stretch, okay, let's make sure you when you file 2025 taxes, you-
3:15
[SPEAKER_00]: claim more income, so that way we can average out and increase your debt to income ratio so we can get you qualified to buy that big loan product.
3:24
[SPEAKER_00]: So, jumbo loans, if you're self-employed, it's going to be harder for you regardless because your income can fluctuate.
3:31
[SPEAKER_00]: Based on how you file your taxes, that's always held clients go to a lender early on, especially if you're self-employed.
3:37
[SPEAKER_00]: So that way I can structure and talk to your CPA to figure
3:44
[SPEAKER_00]: And also, if you're at self-employed for over five years, we need to use one year's of worth to tax returns.
3:50
[SPEAKER_00]: For real, yes.
3:51
[SPEAKER_00]: It's not, too.
3:52
[SPEAKER_00]: No.
3:53
[SPEAKER_00]: But if you're under five years, you've got to use the last two, you've got to use the last two.
3:57
[SPEAKER_00]: But also, if you're going to, like, the bull, here's where it gets a little tricky, because if you're going with, like, a jump on loan product, certain investors are going to automatically request those two years, because of the loan amount you're getting.
4:08
[SPEAKER_00]: Okay.
4:08
[SPEAKER_00]: But if you're going to conforming loan, I can go over one year's of tax returns.
4:12
[SPEAKER_01]: Wow, wow, wow, wow, wow, wow.
4:14
[SPEAKER_01]: I can say this, y'all, Jamal, gave me a quote for the house that we're going on.
4:18
[SPEAKER_01]: And did you only use one year for my quote, did you gave me a Gigi?
4:21
[SPEAKER_01]: I did, I did two years.
4:22
[SPEAKER_01]: So I have no problem educating my people.
4:25
[SPEAKER_01]: Part of my tax strategy with my CPA is we have a tax strategy.
4:31
[SPEAKER_01]: Well, Anthony, are you going to buy anything major?
4:33
[SPEAKER_01]: No.
4:35
[SPEAKER_01]: So for in the five years of doing business,
4:38
[SPEAKER_01]: The very first time we showed a negative was 2024.
4:40
[SPEAKER_01]: The very first time, and that pissed me off, when y'all jokus said, hey, you need to value 2025 taxes because you showed a negative in 2024.
4:55
[SPEAKER_01]: I said, but yeah, in 2023, we showed a million.
4:57
[SPEAKER_01]: In 2022, we showed a million.
4:59
[SPEAKER_01]: Like, y'all, why can't y'all go back and look at all five years and look at the strategy of the income, like, okay, Anthony, and five years only wrote off one year, that's a tax strategy played, that's not a, that's not a, he making a money play.
5:15
[SPEAKER_00]: Right.
5:15
[SPEAKER_02]: Why?
5:16
[SPEAKER_00]: I mean, you understand that, but however you don't understand it.
5:20
[SPEAKER_04]: I get what you're trying to do.
5:21
[SPEAKER_04]: I can help you out too, but just to- Hey, Keith, help me out.
5:26
[SPEAKER_02]: So let's go back up here.
5:27
[SPEAKER_04]: How you want to stand here?
5:28
[SPEAKER_04]: Hey, you got back up.
5:30
[SPEAKER_04]: You got back up here.
5:31
[SPEAKER_04]: I got you.
5:32
[SPEAKER_04]: Because also, too, some business trend down, the banks don't know that that's a tax strategy.
5:39
[SPEAKER_04]: They're just going off what you were in 2023 and then you filed this a negative 2024, right?
5:45
[SPEAKER_04]: Well, how do we know you're not going to be turning down in 2025, 2025?
5:49
[SPEAKER_04]: Especially with where the economy is right now.
5:52
[SPEAKER_04]: So thanks, underwriters are getting more tighter when it comes to underwriting and are proven money, especially especially when it's a large amount like that.
6:01
[SPEAKER_01]: Yeah, so even if even if I mean I ain't gonna put this that number there, but we we show millions That we made.
6:09
[SPEAKER_04]: Yeah, so they don't why do they not which well, um, which is great because that's why you get in the house Right, right, right, so blessing because he has showed that right, you know, right Think of the person that showed the negative for two years straight instead of one
6:26
[SPEAKER_01]: And because I've been in business for five years, you were able to just go off on my 2025 taxes.
6:31
[SPEAKER_00]: Yes, 2025.
6:32
[SPEAKER_00]: And we're also, I had the average of 2024, because it's a loan product you're getting.
6:38
[SPEAKER_00]: So that's why because you're at a certain price point and it's like they got an automatic request two years of tax returns.
6:43
[SPEAKER_01]: God, you.
6:44
[SPEAKER_00]: Because another thing, too, is with like a jumbo loan, that's an income ratio is kept at 43%.
6:49
[SPEAKER_00]: Okay.
6:50
[SPEAKER_00]: So we have to make sure you have enough income coming in.
6:54
[SPEAKER_00]: So that way the investor will buy your loan.
6:56
[SPEAKER_00]: It'll ask me what to do to happen is that you buy this house, something happy default in the mortgage.
7:01
[SPEAKER_00]: We have to buy
7:06
[SPEAKER_00]: So we don't want that to happen.
7:07
[SPEAKER_00]: And then also on top of that, my commission gets taken back.
7:12
[SPEAKER_00]: Yep.
7:13
[SPEAKER_01]: So I'm gonna make sure that you qualify for this home.
7:15
[SPEAKER_01]: That's for sure.
7:16
[SPEAKER_01]: Now I'm curious about this, because I know like in car sales, it's three months.
7:20
[SPEAKER_01]: But then three months, they don't get their commission check from the car because if it gets financed.
7:25
[SPEAKER_01]: On hours and like 30 days, things 30 days.
7:27
[SPEAKER_01]: 30 days, I can't remember the new laws.
7:29
[SPEAKER_01]: I'm wondering, don't tell me that amount, you're gonna make off of these houses, but like how long,
7:34
[SPEAKER_01]: or is it period?
7:36
[SPEAKER_01]: You know I'm telling how long before you're safe on your commission as a sales rep. Not sales rep as a loan officer.
7:42
[SPEAKER_01]: Six months of mortgage payments.
7:43
[SPEAKER_01]: Six months of mortgage payments.
7:45
[SPEAKER_01]: Wow, now keep as a relative, your good period wants to deal get cut.
7:49
[SPEAKER_01]: I'm a good period, once you're close.
7:51
[SPEAKER_01]: You're good.
7:51
[SPEAKER_00]: How's your relative?
7:52
[SPEAKER_00]: Yep.
7:53
[SPEAKER_00]: If you need to follow the mortgage for 90 days?
7:56
[SPEAKER_00]: Yeah, it's a wrap.
7:58
[SPEAKER_00]: It's a wrap for the loan officer.
8:01
[SPEAKER_00]: So just I had that actually happened to me recently two months ago client losses job.
8:07
[SPEAKER_00]: No And they took back your commission.
8:11
[SPEAKER_00]: Yep, the gross amount Look how soon I already played the taxes on it.
8:16
[SPEAKER_01]: Yeah, the gross amount.
8:16
[SPEAKER_01]: So he negative But you can show that on your we file taxes all right.
8:20
[SPEAKER_01]: Yes, huh?
8:22
[SPEAKER_01]: That's I did not I did not know that bro
8:26
[SPEAKER_01]: So I see why y'all are so like anal and picky, because it's low in the opposite and even underwriters get some commission too, right?
8:34
[SPEAKER_00]: Yeah.
8:34
[SPEAKER_00]: Well, there's nothing too.
8:35
[SPEAKER_00]: It's like my commission cut back.
8:37
[SPEAKER_00]: And I also, the branch is the end money taking back, too.
8:41
[SPEAKER_00]: So it's affecting a lot of people involved in transaction.
8:45
[SPEAKER_04]: Because you're going to wall street and wall street can be like, oh, you're calling back this long, oh, they can be, they may be a problem.
8:51
[SPEAKER_04]: The branch may be a problem because they're going to wall street to get the money.
8:54
[SPEAKER_04]: That's why you, when you're liking an interest rate, it's based off the wall street.
8:58
[SPEAKER_01]: For real, yeah.
9:00
[SPEAKER_01]: Educate that a little bit more.
9:02
[SPEAKER_01]: Where are you getting money?
9:03
[SPEAKER_01]: Look where are the bands getting money from?
9:05
[SPEAKER_01]: That is a good question.
9:06
[SPEAKER_01]: For you to say a wall street, something like, wait, wait, wait.
9:09
[SPEAKER_01]: Wait, where are we getting money upon that system?
9:13
[SPEAKER_01]: That is a good, I've never asked that question yet.
9:16
[SPEAKER_01]: That's really good.
9:17
[SPEAKER_00]: Go ahead, John.
9:18
[SPEAKER_00]: So, basically it's a company of like Wall Street.
9:21
[SPEAKER_00]: So, a high level view of it, look at it.
9:23
[SPEAKER_00]: So, more is companies we serve as loans, too, okay?
9:26
[SPEAKER_00]: So, we make money off of a transaction for minimum three different ways, okay?
9:31
[SPEAKER_00]: So, like we have like a service in portfolio.
9:33
[SPEAKER_00]: And so, then we also have like a where lines line of credit, where we use that to fund loans,
9:38
[SPEAKER_00]: So as different entities that are involved in the transaction when you're buying a house.
9:42
[SPEAKER_00]: Yeah, yeah.
9:42
[SPEAKER_00]: So let's for instance, let's say you close in your house next week.
9:45
[SPEAKER_00]: Yeah, yeah.
9:46
[SPEAKER_00]: And so generally we have to balance out your final CD and so like we have to fund the loan.
9:51
[SPEAKER_00]: Anytime you go to the closing, really, oh, it the loans have the funds been dispersed.
9:56
[SPEAKER_00]: Yeah.
9:56
[SPEAKER_00]: And so that's why I called our where house line of credit.
10:00
[SPEAKER_00]: So basically they have to fund the loan, okay?
10:03
[SPEAKER_00]: So we have a warehouse line of, let's say, access of, you know, nine figures in that count.
10:08
[SPEAKER_00]: Yeah.
10:08
[SPEAKER_00]: To make sure that we're closing on our phones.
10:10
[SPEAKER_00]: Yeah.
10:11
[SPEAKER_00]: And then also in the back end, it's just like we have our lock desk that's looking to see, okay, how many loans are locked?
10:17
[SPEAKER_00]: What time are they closing?
10:18
[SPEAKER_00]: Do we have a lot of money in this warehouse line of credit to fund these loans within the certain time period?
10:23
[SPEAKER_00]: And so all of that is correlated.
10:25
[SPEAKER_00]: So if you're, it's, it's pretty intricate and like how it works in the back end of things.
10:30
[SPEAKER_00]: Go.
10:30
[SPEAKER_00]: But it's, it's, it's pretty interesting.
10:32
[SPEAKER_00]: If you really look at it, it's unlike the type of view.
10:36
[SPEAKER_01]: I was, I had sent you, because keep is he's always good at making sure that I practice what I preach.
10:42
[SPEAKER_01]: And I always say, you know, due diligence gets several quotes on this and that and that.
10:46
[SPEAKER_01]: And I'm loyal by the fault, which is a good thing, but it's also a negative thing.
10:50
[SPEAKER_01]: And so he made me reach out to you to get a quote and with you, I learned the difference between APR and an interest rate.
10:58
[SPEAKER_01]: Yeah.
10:58
[SPEAKER_01]: Right?
10:59
[SPEAKER_01]: And so we hear APR all the time, we hear interest rate all the time.
11:03
[SPEAKER_01]: And I think a lot of people think those two are to say, no, no, no.
11:06
[SPEAKER_01]: Can y'all break down exactly why that's important to understand that because you kept asking Wester APR.
11:12
[SPEAKER_01]: And I'm saying this is 6.75.
11:14
[SPEAKER_01]: You're not, no, no, no, no, no.
11:15
[SPEAKER_01]: Wester APR.
11:16
[SPEAKER_01]: I'm like, bro, I'm looking at it.
11:18
[SPEAKER_01]: See the paper.
11:19
[SPEAKER_01]: And my interest rate is that it was like no I need to know this because there could be points like this and I think that is important for everyone to know because even when I'm went back to my first pre-approved it was no APR on there it said TBD but it did have my interest rate on there and I was like okay so what's the difference and why should we be aware of the two and why is the APR just as important as the interest rate.
11:44
[SPEAKER_00]: So the APR is basically how much your basic pain to buy that loan to get that loan.
11:50
[SPEAKER_00]: And so for, that's why I was asking for that because I can see of a lender's hiding fees and charge you more money in the back end.
11:57
[SPEAKER_00]: So that's why I was asked for on some like, anytime you're like shopping lenders get a full cost estimate.
12:02
[SPEAKER_00]: Okay.
12:02
[SPEAKER_00]: Because then I can kind of see and like, are they hiding fees in any different type of bucket?
12:08
[SPEAKER_00]: Generally clients will look at discount points, origination fees, to see if the lender charges and points.
12:13
[SPEAKER_00]: But however, they can hide it in like a processing, underwriting fee.
12:18
[SPEAKER_00]: to like cover it.
12:19
[SPEAKER_00]: So that's why I asked the APR because I could see in the back and I'm like, oh, there's hitting fees here because you're 6.75 and your APR is like a 6.81.
12:27
[SPEAKER_00]: Let's say for me, however, another one is giving you an interest rate of 6.75, but they APR is a 7%.
12:33
[SPEAKER_00]: There's hitting fees in there.
12:35
[SPEAKER_01]: Wow.
12:36
[SPEAKER_01]: So, so, make sure I'm correct.
12:38
[SPEAKER_01]: The interest rate is what the rate I'm getting.
12:41
[SPEAKER_01]: Yes, basically pay it back to long to pay back to long.
12:45
[SPEAKER_01]: So if this statement is like for the say for example, my interest is 0.75, but then my APR says 7.0, how does the 7.0 impact me moving forward with them?
12:56
[SPEAKER_00]: So over the period of time, that's how much you're paying on the loan for the total, let's even keep the mortgage for 30 years.
13:02
[SPEAKER_00]: Yeah, yeah.
13:02
[SPEAKER_00]: That's so much in interest you're being the 7% or 6% fat the 7% because if I'm going to It's because it's like when you look at their closeness closure, you'll see it's like total Interest charge over to the whole 30 years and you'll see like if you're let's say for And see about how's the $70,000 loan amount your total interest you paying on all those part of like over 1.1 million dollars
13:24
[SPEAKER_00]: and inches, yep.
13:28
[SPEAKER_00]: That's why I tell clients, make sure you try to pay off your loan before 30 years.
13:31
[SPEAKER_00]: Not, it's fat.
13:32
[SPEAKER_00]: Set up by weekly payments, do extra principal payment each year.
13:35
[SPEAKER_00]: Yeah.
13:35
[SPEAKER_00]: We're even trying to like a 15-year mortgage if you can.
13:38
[SPEAKER_00]: That's a fat.
13:39
[SPEAKER_00]: They're even paid off because you're paying so much to interest.
13:41
[SPEAKER_00]: And so another thing too is like with that APR is that you're paying money up front.
13:47
[SPEAKER_00]: So one of the things I want to talk to is like discount points, okay, is that they're right time to pay points now with the rise of like interest rates because of the market.
13:54
[SPEAKER_00]: What I tell clients is like right now don't pay points.
13:58
[SPEAKER_00]: Because you're paying points, we know the market is going to change within the next, let's say, let's say within the next two years, right?
14:05
[SPEAKER_00]: Okay, let's say the market started interest rate right now is no point.
14:08
[SPEAKER_00]: Let's say you're at a 6.4% interest rate.
14:11
[SPEAKER_00]: No points.
14:12
[SPEAKER_00]: Okay, great.
14:13
[SPEAKER_00]: If you want to pay points, we can get your interest rate down to $6.125, but let's say your loan amount is $500,000.
14:19
[SPEAKER_00]: You pay $1.5,000.
14:21
[SPEAKER_00]: Okay, so your monthly payment savings between a 6.4 to a 6.1, let's just say it was $100.
14:28
[SPEAKER_00]: Are you going to recoup that cost within 36 months?
14:32
[SPEAKER_00]: No.
14:34
[SPEAKER_00]: So it's like, okay, then comes another another question is like, how long you plan on staying in the home?
14:40
[SPEAKER_00]: It's like, okay, I'm gonna stay in the home for, you know, 10 years.
14:43
[SPEAKER_00]: I was like, okay, great.
14:44
[SPEAKER_00]: Let's still not buy down the interest rate.
14:46
[SPEAKER_00]: Because the thing is, if you refinance, if you pay points now, to get your 6.125, let's say rate drop to, let's, 5.75.
14:55
[SPEAKER_00]: I mean, I want a little more interest rate again.
14:57
[SPEAKER_00]: I was like, well, now you're double dipping.
14:59
[SPEAKER_00]: You just pay points for no reason.
15:02
[SPEAKER_01]: So, I want to talk about that because I think if you and I were talking my other lender he said, well, you could buy down to 6.25, right, but it would have been 17,000 dollars.
15:17
[SPEAKER_04]: Right, and throughout the process, I kept saying cash is keen, carrying, keeping money in your pocket, right, because as Jamal just said, I'll put you pay $17,000 right now, and then we're gonna wait on Race to Fall, right, to $5.75, $5.55, right, what's the point that $17,000 is with the Ways?
15:39
[SPEAKER_01]: Ways, and I didn't know when we all kept saying, when we talked about buying, like, by-down, that's when Race was like an 8%.
15:46
[SPEAKER_01]: Right and so on my okay, but I had no idea that buying down a point didn't go towards the mortgage
15:53
[SPEAKER_01]: and that piss me off.
15:55
[SPEAKER_01]: And I was like, so why would I give you money and it pisses and it's not going towards my mortgage?
15:59
[SPEAKER_01]: My down payment is going towards my mortgage.
16:02
[SPEAKER_01]: Now my closing cost is not going towards to mortgage, right?
16:04
[SPEAKER_01]: That's just fees and stuff like that.
16:06
[SPEAKER_01]: Right.
16:07
[SPEAKER_01]: But my down payment is, so I'm like everything except for my actual closing cost is going towards a mortgage.
16:13
[SPEAKER_01]: Why would I pay more money to go down?
16:16
[SPEAKER_01]: and to buy it down my rate.
16:18
[SPEAKER_01]: And I think that's what bothers me.
16:19
[SPEAKER_01]: Some people want to see a lower monthly payment rather than actually have cash and capital inside their hand.
16:25
[SPEAKER_04]: Right, right, right, right, and so remember, strategy wise, right, and it's all about strategy, our structure and the deal, right?
16:34
[SPEAKER_04]: Yeah, I'll say, well, Anthony, instead of dropping the payment, bye.
16:40
[SPEAKER_04]: you know, $10,000.
16:41
[SPEAKER_04]: Yeah.
16:42
[SPEAKER_04]: Let's ask for $10,000 in closing.
16:44
[SPEAKER_04]: You sure that's going to decrease your cash.
16:46
[SPEAKER_04]: It closed and by dropping your monthly drop by dropping the price by $10,000, it's only going to affect your monthly payment by 50 or 60 bucks.
16:54
[SPEAKER_01]: But I was brewing me, told me that.
16:56
[SPEAKER_01]: So we went to the do our thing and they gave us, you know, $10,000 to do a little bit of fixing around the house.
17:01
[SPEAKER_01]: Now's my first question to you.
17:03
[SPEAKER_01]: So is that coming off the house?
17:04
[SPEAKER_01]: It was a none of that's cash back in your pocket, facts.
17:07
[SPEAKER_01]: And then when I got my numbers back from Jamal and our other guy, the other bank, I saw that on the, the thing I was like, wow, so now I come to the table 10,000 dollars less.
17:17
[SPEAKER_01]: When it actually was out, there's some people who wanted off the house.
17:20
[SPEAKER_01]: It would have been maybe 25 bucks, 25 to the bucks, $10,000.
17:23
[SPEAKER_01]: Yeah, anyway.
17:24
[SPEAKER_01]: So trading for, you trading $50 for $10,000 in cash.
17:27
[SPEAKER_01]: Yes.
17:29
[SPEAKER_01]: You see, this is why I believe everyone got to sit down with a
17:35
[SPEAKER_01]: I'm curious Keith and Jamal, well, the y'all can answer this from your end on the reals of perspective, learning the market, seeing what's available, and then Jamal, on your end from the financing, when should people be reaching out to you all?
17:45
[SPEAKER_01]: Because at the same time, y'all are only commission-based, right, right?
17:50
[SPEAKER_01]: So it's like, you all don't have that much time to be spending on people who are not ready to buy now, because y'all got to pay bills and provide for your family.
17:56
[SPEAKER_01]: But when is the right time to start the conversation, to start the relationship, to make sure that they're in a good position to buy?
18:03
[SPEAKER_04]: Absolutely.
18:04
[SPEAKER_04]: I think as early as possible, you know, our mission statement is to be the bridge to our community for all things rule of state lifestyle and wealth building.
18:11
[SPEAKER_04]: And it starts with the education.
18:12
[SPEAKER_04]: Yeah.
18:13
[SPEAKER_04]: That's why we hear right now.
18:13
[SPEAKER_04]: It's about the education.
18:15
[SPEAKER_04]: Yeah.
18:15
[SPEAKER_04]: And as soon as somebody thinks, oh, I have aspirations to buy a home, they need to be the earlier it starts planning for that.
18:22
[SPEAKER_01]: Yeah.
18:23
[SPEAKER_04]: The easier it's going to be on the long run.
18:25
[SPEAKER_04]: So he immediately when they think about, I want to buy a house because you guys think about his three buckets price location suitability on the real estate side by the home so price if you want to pay this monthly payment you need to know what that's equivalent to in a sales price as early as possible so you can start planning for that right okay um
18:45
[SPEAKER_04]: location.
18:47
[SPEAKER_04]: Now if you want to be in this if you want to be in this area, school, things of that nature, and you're going to be in this price point, this location, you also need to know what that monthly payment is going to look like, and this in this location, right?
19:00
[SPEAKER_04]: Because as we know, different areas have different price points.
19:03
[SPEAKER_04]: Sure, do you know.
19:06
[SPEAKER_04]: Sure, do.
19:06
[SPEAKER_04]: And then also suitability.
19:08
[SPEAKER_04]: Somebody's walking into a house.
19:10
[SPEAKER_04]: If they want to pay college in this area, $350, $350,000, well, that probably doesn't need some work, right?
19:18
[SPEAKER_04]: That probably doesn't need some work.
19:19
[SPEAKER_04]: Are you, as a first-time home buyer, do you want to do that?
19:22
[SPEAKER_04]: Or, do you want to go up $50,000, which will increase your monthly payment, maybe $200 bucks, yeah, and pay something that's newly renovated.
19:30
[SPEAKER_04]: to make sure it's suitable for you.
19:32
[SPEAKER_04]: So that's the three buckets I always talk about when I'm talking to people and they should be planning for those three buckets as early as possible.
19:38
[SPEAKER_04]: So I'll talk to people that say year out two years out and put them on a plan.
19:41
[SPEAKER_00]: Yeah.
19:42
[SPEAKER_04]: So therefore, when it comes time for them, they've studied the market, you're into them with the market and they know the market they've seen the trend.
19:48
[SPEAKER_04]: And I tell them to watch, don't watch the homes that are coming on the market.
19:51
[SPEAKER_04]: Watch where the homes are selling for.
19:53
[SPEAKER_04]: Yeah, that's going to tell you the price point and the trends.
19:56
[SPEAKER_04]: Yeah.
19:57
[SPEAKER_04]: So it's earliest possible.
19:58
[SPEAKER_04]: Yeah.
19:58
[SPEAKER_01]: I mean, keep going until a huge old friendly argument.
20:01
[SPEAKER_01]: That's always, as always.
20:03
[SPEAKER_01]: That's always.
20:03
[SPEAKER_01]: I was like, Keith, I ain't paying that much money for no outs.
20:06
[SPEAKER_01]: Keep was like, Anthony, you want to be in this neighborhood.
20:09
[SPEAKER_01]: In this market, Anthony, okay, we wait.
20:12
[SPEAKER_01]: I said, Keith, send me the house available.
20:13
[SPEAKER_01]: It's not, not, not, not, not.
20:14
[SPEAKER_01]: I'm going to send you the houses that sold in this area so you can see.
20:18
[SPEAKER_01]: And I was like, okay, I think we came 50, 50.
20:20
[SPEAKER_01]: Keith was like,
20:23
[SPEAKER_02]: I was a little bit too long, we're all saying we've met in the middle.
20:26
[SPEAKER_02]: Yeah, we did, we didn't meet in the middle.
20:28
[SPEAKER_02]: I was like, see, keep the call just now.
20:30
[SPEAKER_02]: Because I know I told you, I was like, we both was an awful little thing.
20:34
[SPEAKER_01]: All right, all right.
20:35
[SPEAKER_01]: But guy moved and sent us a beautiful home, man.
20:37
[SPEAKER_01]: At the right time, two timings, everything.
20:39
[SPEAKER_01]: Timing is everything, man.
20:41
[SPEAKER_01]: And I really learned too and and and and and and keep a tell you this.
20:44
[SPEAKER_01]: This one thing I do love about Keith and his whole team.
20:46
[SPEAKER_01]: This is why I have the most monthly y'all.
20:48
[SPEAKER_01]: And this is why I'm saying if you're in the DMV area or if you're
20:53
[SPEAKER_01]: He's just going to get someone like Keith, I want you to do it because we're looking at a house that, and I'll tell them the story.
21:00
[SPEAKER_01]: It listed for 2.4 million drop down to 2.1 and then that house went to auction for 900,000.
21:07
[SPEAKER_01]: So the auction is what got me at 900,000.
21:11
[SPEAKER_01]: I said, wait, this thing is 14,000 square feet with indoor pool on my golf course that I play on.
21:22
[SPEAKER_01]: to only find out it was that auction and so I was okay.
21:25
[SPEAKER_01]: So we won the bid, but then they didn't accept the bid because they wanted more money.
21:30
[SPEAKER_01]: Yeah.
21:30
[SPEAKER_01]: So he was an Anthony and there's neighborhood.
21:34
[SPEAKER_01]: You're not going to get a house that well for that price.
21:36
[SPEAKER_01]: So I think we bid it at, well we made up offer at 1.7.
21:38
[SPEAKER_01]: Yeah.
21:40
[SPEAKER_01]: Yeah.
21:40
[SPEAKER_01]: And when we went into that house,
21:43
[SPEAKER_01]: My, like, I loved the neighborhood and I even loved the house, but the amount of work it would have took.
21:50
[SPEAKER_01]: I would have been in a house where about like 2.5, 2.6 million.
21:53
[SPEAKER_01]: And I was like, man, I'm single.
21:54
[SPEAKER_01]: I ain't really, nah, it's a lot, right?
21:58
[SPEAKER_01]: But then keeps point was like, this is gonna be the cheapest house to get into this neighborhood.
22:03
[SPEAKER_01]: And I was like, I know, but my gut was like, ah, that's important.
22:08
[SPEAKER_01]: Oh yeah, that's important.
22:09
[SPEAKER_01]: I said, keep, this is what I do.
22:10
[SPEAKER_01]: I will get the house at 1.4.
22:13
[SPEAKER_01]: I mean the offer and I'm clearly they didn't accept the offer and so we got out of it and then a very next what two days not even 24 hours 24 hours this house wins on the market for my budget and it's like only 3000 square feet lower yeah and a house technically it ain't fully updated
22:33
[SPEAKER_01]: It's beautiful and it's going to cause me who's not a lot of money at all to do that.
22:40
[SPEAKER_01]: And I just want to encourage y'all, man, get a relative who is not going to just try to force you into a home, to make a deal and to make a commission, you know what I'm saying, but he'll be like, or she will be like, hey, if you don't fill it, don't do it and keep never pressure me.
22:54
[SPEAKER_01]: He educated me on the positives and the negatives.
22:57
[SPEAKER_01]: And when I said, keep, this is what I do
23:02
[SPEAKER_01]: And because I said, this is my budget and I can't go with that budget right now, we got out of the deal in another home beautiful.
23:12
[SPEAKER_01]: five minutes away in the same neighborhood just in a different side of the neighborhood came for within my budget.
23:19
[SPEAKER_01]: Yep.
23:20
[SPEAKER_01]: And I didn't even see the home before we put an offering.
23:22
[SPEAKER_01]: Nope.
23:23
[SPEAKER_01]: Absolutely.
23:24
[SPEAKER_01]: I said, y'all keep just running black.
23:25
[SPEAKER_01]: Just get me down.
23:25
[SPEAKER_01]: You know, just get me in the house.
23:27
[SPEAKER_01]: Cause I mean, I know my budget.
23:28
[SPEAKER_01]: I like the house.
23:29
[SPEAKER_01]: I love the neighborhood.
23:30
[SPEAKER_01]: Boom.
23:31
[SPEAKER_01]: And we walk in the house for inspection.
23:33
[SPEAKER_01]: Man, the house was gorgeous.
23:34
[SPEAKER_01]: Right.
23:34
[SPEAKER_01]: So you're saying about a year.
23:36
[SPEAKER_01]: Jamal for you.
23:37
[SPEAKER_01]: Cause yours is probably a little bit more difficult cause they gotta qualify.
23:40
[SPEAKER_01]: Yeah, so how long, what would you say is the right time for someone to reach out to yourself if they know they wanna buy a home?
23:47
[SPEAKER_00]: I mean, I think it's once you start thinking about buying a house, reach out to me early on.
23:51
[SPEAKER_00]: Cause the thing is, I gotta see what your finances are.
23:53
[SPEAKER_00]: Are you self-employed, okay?
23:55
[SPEAKER_00]: What's your credit score?
23:57
[SPEAKER_00]: What your savings look like?
23:58
[SPEAKER_00]: Cause I always like to tell the clients it's like, listen, this fill out the application is just a soft pool.
24:03
[SPEAKER_00]: I can run all the numbers, need it.
24:04
[SPEAKER_00]: It's being create like a roll map.
24:06
[SPEAKER_00]: to when you're trying to buy.
24:07
[SPEAKER_05]: Yeah, yeah.
24:08
[SPEAKER_00]: So it's like, let's say if a client's like, hey, I want to buy a home, let's say, in December of this year.
24:13
[SPEAKER_00]: We talk to me now, because we need to see, okay, what are your finances looking like?
24:18
[SPEAKER_00]: Because the thing is, if you come to soon, like, you don't have enough wiggle room and like, time for the ham trying to buy a house and like a month, I'm like, whoa, your credit is shy.
24:27
[SPEAKER_00]: You don't have enough money, like you're looking at a house at $600,000, but you have $10,000 to save.
24:32
[SPEAKER_00]: What do we do with it?
24:34
[SPEAKER_00]: Or if you're self-employed, for instance, and it's like you took a hit on income for 2025.
24:39
[SPEAKER_00]: And let's say you are, you've been in business for five years.
24:43
[SPEAKER_00]: I can't really do anything because it's like, okay, we have this big income drop.
24:48
[SPEAKER_00]: So that's the one big key thing is, if, like, for instance, in 2024, you took the hit on your income.
24:56
[SPEAKER_00]: But 2025 went up drastically.
24:59
[SPEAKER_00]: But was the opposite, that's a major reflag on the writing.
25:03
[SPEAKER_01]: Wow, this is declining.
25:05
[SPEAKER_01]: So you're saying, if I would have had a 2020 essay, 2024, I showed what I showed in 2025, and then 2025, I'm shown a negative, that's a huge red flag.
25:16
[SPEAKER_01]: Yes.
25:16
[SPEAKER_01]: And you know what, I got to say this man, I know I understand it and it makes sense, but also too, I'm pretty sure the owner of your company shows a negative every now and then too.
25:26
[SPEAKER_01]: It's just part of the strategy.
25:29
[SPEAKER_01]: It makes no sense for me to show positive every single year if I could legally, ethically, and morally write off stuff.
25:36
[SPEAKER_01]: Right.
25:37
[SPEAKER_01]: Right.
25:37
[SPEAKER_01]: And in fact, we get penalized, which is so important to where one of these conversations, I think we need to have a whole team in here, a CPA, a realtor, a loan officer.
25:49
[SPEAKER_01]: Because I think in this whole process, all three of y'all were super important in my process.
25:58
[SPEAKER_01]: My other loan guy, I'm going to say his name because he's not here.
26:02
[SPEAKER_01]: He called my CPA and they had a whole conversation.
26:05
[SPEAKER_01]: He was like, what can we legally and ethically, and morally, and for Anthony, spiritually, right?
26:11
[SPEAKER_01]: Show him making this year.
26:14
[SPEAKER_01]: And they literally told him, it's like, hey, this is the best we can do because we cannot afford for Anthony or Neil to get out of it, right?
26:21
[SPEAKER_01]: You know, but him being a money guy, we gotta show it, right?
26:23
[SPEAKER_01]: Absolutely, right?
26:24
[SPEAKER_01]: Absolutely.
26:24
[SPEAKER_01]: And so, I think that's why it's important for everyone to have a tax strategy.
26:28
[SPEAKER_01]: It's not just a tax follower.
26:30
[SPEAKER_04]: Right, right, right.
26:31
[SPEAKER_04]: And to your point, Anthony, just think about the people that are not in a position to file what they need to file for in 2025.
26:39
[SPEAKER_04]: That's why he's super important to start early, right?
26:43
[SPEAKER_04]: Because everybody in blessed to be able to file that.
26:47
[SPEAKER_04]: Okay, I'm a file of positive for 2025, right?
26:49
[SPEAKER_04]: They might not have a positive.
26:50
[SPEAKER_04]: Right, right.
26:51
[SPEAKER_04]: They started back in 2024.
26:53
[SPEAKER_04]: understanding what they need to file for 2025 based on that type of home they want, right?
26:59
[SPEAKER_04]: Because it's a math problem, right?
27:00
[SPEAKER_04]: You got a file for the type of home you want for that price point.
27:04
[SPEAKER_04]: So the lender can say you qualify for that.
27:06
[SPEAKER_04]: So that's why it's super important.
27:08
[SPEAKER_04]: Very important thinking about buying a home need to come.
27:11
[SPEAKER_04]: And I'll send people as early as possible because I want them to do that.
27:14
[SPEAKER_04]: So I'll pull because I want them to see what the cash flows are going to be, what the monthly payment is going to be.
27:18
[SPEAKER_01]: Yeah.
27:19
[SPEAKER_04]: Right?
27:19
[SPEAKER_04]: Yeah, and just think about the grant money.
27:21
[SPEAKER_04]: Sometimes, grant money is in and then it goes away.
27:24
[SPEAKER_04]: You want to know when it's coming and when it's gone.
27:26
[SPEAKER_04]: If you need a first time home by a program, all that stuff is important.
27:30
[SPEAKER_01]: I'm curious, what do y'all think is something else?
27:32
[SPEAKER_01]: So we talked about that known APR.
27:34
[SPEAKER_01]: So earlier, a friend, we need to ask, okay, what is the APR in this loan?
27:38
[SPEAKER_01]: And that should be on your pre approval letter?
27:40
[SPEAKER_01]: Yes.
27:40
[SPEAKER_01]: If they don't see that on the pre approval letter, they just see it in just right.
27:44
[SPEAKER_01]: Should they ask for the APR rate upfront first?
27:47
[SPEAKER_01]: Yes.
27:47
[SPEAKER_01]: So 40 start looking at all?
27:48
[SPEAKER_00]: Yeah, Leonard should disclose all that information.
27:51
[SPEAKER_00]: If a lender's not disclosing your full breakdown of costs, that's the main thing that's automatic red flag.
27:56
[SPEAKER_00]: Because again, if I'm helping you and I'm your loan off of them helping you at best interest, I should be disclosing all of the fees to your upfront.
28:04
[SPEAKER_00]: If I'm not, then I'm doing a disservice to you.
28:09
[SPEAKER_01]: Have I ever seen an APR in my career proves?
28:12
[SPEAKER_04]: Um, when you box first house, yeah.
28:14
[SPEAKER_01]: Yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah
28:43
[SPEAKER_01]: I can get you what you where you want.
28:44
[SPEAKER_01]: You're gonna be at $1.99.
28:45
[SPEAKER_01]: I'm just gonna go up on how long you pay it back.
28:48
[SPEAKER_01]: So you want to pay $1.99 a month?
28:49
[SPEAKER_01]: Okay, cool.
28:50
[SPEAKER_01]: Instead of for doing you at $42, I'm gonna get you at $72 a month.
28:52
[SPEAKER_01]: I can get you at $1.99.
28:54
[SPEAKER_01]: But you're gonna pay me a whole lot of money back.
28:56
[SPEAKER_01]: Yeah.
28:58
[SPEAKER_01]: Jamal.
28:59
[SPEAKER_01]: I like y'all, but I don't like y'all.
29:02
[SPEAKER_01]: It was just told us he can.
29:03
[SPEAKER_01]: He can.
29:04
[SPEAKER_01]: I can show you any interest rate you want.
29:06
[SPEAKER_01]: But the true money isn't APR.
29:07
[SPEAKER_00]: Yeah.
29:09
[SPEAKER_01]: Listen, y'all listen, let me ask you this question.
29:13
[SPEAKER_01]: When you go to refi, is it the APR to interest rate that's a problem then?
29:18
[SPEAKER_00]: There from refinance to your APR is generally going to be higher, because that's when it makes sense to pay points, because it's not coming out of your pocket is rolling to your loan amount.
29:28
[SPEAKER_00]: So that's something that's the thing with Keith saying earlier that cash is king.
29:31
[SPEAKER_00]: So we rather keep that $8,000 in your pocket.
29:33
[SPEAKER_00]: Right, right, right up front, right?
29:34
[SPEAKER_00]: Okay, and I'm going to still pay to $8,000 in points if you want rolling to your loan amount.
29:39
[SPEAKER_00]: Your interest rate is going down, your mother pain is going down, and you've got more money in your pocket.
29:43
[SPEAKER_00]: That's how you refinance.
29:45
[SPEAKER_00]: That's what you should pay opponents.
29:46
[SPEAKER_01]: That's what you should pay points.
29:47
[SPEAKER_01]: Okay, all right.
29:48
[SPEAKER_01]: From what's something else that we should be looking out for when it comes to financing and getting on?
29:55
[SPEAKER_01]: That you think that some people overlook.
29:59
[SPEAKER_00]: I think one of the big things people overlook is closing cars and being realistic.
30:04
[SPEAKER_00]: Yeah, which is about there.
30:05
[SPEAKER_00]: Okay.
30:06
[SPEAKER_00]: Being realistic about closing cars.
30:07
[SPEAKER_00]: Because I've seen it many times when like social media people were like, Oh, I bought this house.
30:11
[SPEAKER_00]: My down payment was only $15,000.
30:14
[SPEAKER_00]: or no money down, no money down.
30:16
[SPEAKER_00]: That's like, that's only part of the picture.
30:18
[SPEAKER_00]: That's just a down payment, that's a fact.
30:19
[SPEAKER_00]: They're not talking about cheering for taxes.
30:21
[SPEAKER_00]: The appraisal, title fees, all of that makes up closing costs.
30:25
[SPEAKER_00]: Yeah, yeah.
30:26
[SPEAKER_00]: Like, houses are expensive.
30:28
[SPEAKER_01]: Yes.
30:28
[SPEAKER_00]: It's not, there's no, no money down situation.
30:31
[SPEAKER_01]: Yes.
30:32
[SPEAKER_00]: And then the whole down payment assistance program, that's a whole another conversation.
30:35
[SPEAKER_00]: Yes.
30:36
[SPEAKER_00]: Because the thing is, it's like, if you're using a down payment assistance program, let's say to give you 5% to sales price.
30:41
[SPEAKER_00]: Buy a house 500,000, that's $25,000 in assistance they give you to offset your closing costs.
30:47
[SPEAKER_00]: So what will happen is, is that $25,000 is a second lean against your property.
30:52
[SPEAKER_00]: So they want you to stay in the house for 10 years.
30:55
[SPEAKER_00]: And if you were to sell refinance or turn them home to a vessel property, that comes due.
31:02
[SPEAKER_00]: There's no free money.
31:03
[SPEAKER_00]: So you're basically born and gets a future equity of your home.
31:07
[SPEAKER_00]: And it's a second lean on my credit report.
31:09
[SPEAKER_00]: It's a lean on your property.
31:10
[SPEAKER_01]: It's like a lean, but it's not on my credit.
31:12
[SPEAKER_01]: No, it's not on your credit.
31:13
[SPEAKER_01]: It's just on the property if I go sell it.
31:15
[SPEAKER_00]: It's attached to the deed.
31:16
[SPEAKER_00]: Yeah.
31:17
[SPEAKER_00]: If you want to sell it or refinance, I have this issue going on right now with a few clients that use downpinances and programs that have a higher interest rate.
31:24
[SPEAKER_00]: Now they want to like lower interest rate.
31:25
[SPEAKER_00]: However, there's not enough equity in the property because I have to pay off this second lean in order for you to refinance.
31:33
[SPEAKER_00]: And then you have issues because now you're stuck.
31:35
[SPEAKER_01]: Wow.
31:38
[SPEAKER_01]: Now are people educated about this when they sign up?
31:41
[SPEAKER_01]: And are you saying yes?
31:43
[SPEAKER_01]: They just forget.
31:44
[SPEAKER_00]: Not everyone's being there.
31:47
[SPEAKER_00]: Yeah, I'm never being fully transparent.
31:48
[SPEAKER_00]: No, that's the thing I always like to tell clients at any time they're doing initial prayer approval with me.
31:52
[SPEAKER_00]: It's like, I'm going over all of these items with you.
31:55
[SPEAKER_00]: Because the thing is, this is very important.
31:57
[SPEAKER_00]: Like, this is a silent second lean against your home.
31:59
[SPEAKER_00]: Yeah.
31:59
[SPEAKER_00]: You realize, like, okay, this programs, they may have their own industry.
32:02
[SPEAKER_00]: They may have their own other fees associated with everything.
32:06
[SPEAKER_00]: So you've got understand the nuances with using certain down payment assistance programs.
32:09
[SPEAKER_00]: Now it's a difference if it's a true grant.
32:12
[SPEAKER_00]: I mean, there's no restriction to it.
32:13
[SPEAKER_00]: Grants are great.
32:14
[SPEAKER_00]: They're important.
32:15
[SPEAKER_00]: You can use those anytime.
32:16
[SPEAKER_00]: There's no streams of tax here, good to go.
32:18
[SPEAKER_00]: But these downpins systems programs, nine times of the 10 is the second lien.
32:22
[SPEAKER_00]: I guess you're a property.
32:24
[SPEAKER_04]: And that's why I say grant money.
32:25
[SPEAKER_04]: Grant money.
32:26
[SPEAKER_04]: Good.
32:27
[SPEAKER_04]: DPA downpins of the sickness.
32:29
[SPEAKER_04]: Oh, it's no free money, it's no free money.
32:33
[SPEAKER_04]: And also, I've seen what they'll put a lean on the deed for 20 years to where, if you buy a property at 400,000 and 20 years, you got to sell the property for 400,000 to somebody that qualifies for that program.
32:47
[SPEAKER_04]: That's why you have to, yes.
32:48
[SPEAKER_01]: That's why you have to watch out.
32:49
[SPEAKER_01]: Leave it, leave it, leave it, leave it.
32:50
[SPEAKER_01]: That makes no sense, he.
32:51
[SPEAKER_01]: It doesn't.
32:52
[SPEAKER_01]: I bought the house 400,000 dollars, 20 years ago.
32:55
[SPEAKER_01]: Yes.
32:56
[SPEAKER_01]: So, you see, I got a, I can't make no profit off of the home, zero.
33:01
[SPEAKER_01]: Zero.
33:03
[SPEAKER_04]: Zero.
33:04
[SPEAKER_04]: And that's why when people are buying houses, they have to be educated.
33:08
[SPEAKER_04]: It's super important to redefine print and to understand.
33:11
[SPEAKER_04]: People think, oh, now I'm here with assistance.
33:13
[SPEAKER_04]: Let me go take this money.
33:14
[SPEAKER_04]: Let me go take this money.
33:15
[SPEAKER_04]: It's free money.
33:16
[SPEAKER_04]: It's never free money, right?
33:18
[SPEAKER_04]: It's never free money.
33:19
[SPEAKER_04]: whether you put your time in the house or interest on the second lean or when you got a sale, you're borrowing it's the future equity or your property, you've got to pay that money back.
33:29
[SPEAKER_04]: It's not free money, but the grant money, the grant money is what you want.
33:33
[SPEAKER_04]: And you've got to be people who have to watch out because some lenders will tell you, oh, this is just grant money.
33:40
[SPEAKER_04]: This is just grant money.
33:41
[SPEAKER_04]: You need this to get into your home.
33:43
[SPEAKER_04]: In fact, that person shouldn't be buying a house right now.
33:45
[SPEAKER_04]: They need to wait a little while so they can qualify for what they need to qualify for.
33:49
[SPEAKER_04]: Ethically, to buy their home.
33:53
[SPEAKER_01]: system same and I didn't know that about DPA's yeah I didn't read deep there's some DPA programs that are not technically the right thing to do man that's that bothers me though though it's like I can get the house with 400,000 staying here for 20 years and I can't even make a little bit of profit off of the home so what's the point of me even buying a home I miss what's going on
34:14
[SPEAKER_01]: Because I have no equity, all right.
34:16
[SPEAKER_01]: So what I'm going to do is just get a refund for what I paid into the home, but not really making any money.
34:21
[SPEAKER_01]: That's the same as the count.
34:22
[SPEAKER_01]: We know interest baron on me, right?
34:24
[SPEAKER_01]: That is stupid.
34:25
[SPEAKER_04]: Yes, yes, yes.
34:27
[SPEAKER_01]: Which is why it's very important for people like yourself to get a loan officer Anna, a real estate agent, who can make sure that you know every single thing that you sign in.
34:35
[SPEAKER_00]: Yeah.
34:41
[SPEAKER_01]: I'm not going to read everything again.
34:46
[SPEAKER_01]: At the time of recording, it's still got like five days to back up.
34:49
[SPEAKER_01]: There you got me.
34:50
[SPEAKER_03]: Got the date.
34:52
[SPEAKER_03]: That look.
34:54
[SPEAKER_03]: There's like, I like five days.
34:56
[SPEAKER_03]: You play the game right.
34:57
[SPEAKER_03]: I did.
34:57
[SPEAKER_03]: You play the game right.
34:58
[SPEAKER_03]: I did.
34:59
[SPEAKER_03]: Anthony, please, please do this.
35:01
[SPEAKER_03]: Please do this.
35:02
[SPEAKER_03]: I did.
35:03
[SPEAKER_03]: I did.
35:05
[SPEAKER_03]: Jamal came in and saved the day.
35:06
[SPEAKER_01]: I ain't gonna lie.
35:07
[SPEAKER_01]: Angola, you know, that's why we got to send him some bitnish all.
35:12
[SPEAKER_01]: Yep, you know, he's a good guy.
35:14
[SPEAKER_01]: I saw a guy and did his thing.
35:15
[SPEAKER_01]: That's cool.
35:16
[SPEAKER_01]: I like that.
35:17
[SPEAKER_01]: I do like that.
35:18
[SPEAKER_01]: Jamal, how long you've been in the business?
35:20
[SPEAKER_01]: A little for four years now.
35:21
[SPEAKER_01]: Four years.
35:22
[SPEAKER_01]: Okay.
35:22
[SPEAKER_01]: Okay.
35:22
[SPEAKER_01]: Keep it in for what?
35:24
[SPEAKER_01]: nine years now nine years.
35:25
[SPEAKER_01]: Yes, 2000s.
35:28
[SPEAKER_01]: No, and I'll say 90s.
35:29
[SPEAKER_01]: 80s and 90s.
35:31
[SPEAKER_01]: Morty's race was not my saying is right.
35:34
[SPEAKER_01]: Am I saying interest rate or I'm saying APR?
35:36
[SPEAKER_01]: He's interest rate.
35:38
[SPEAKER_01]: Interest rate was going to be anywhere between like six and even up to 12% he was buying a house like in the 80s and 90s and 90s.
35:45
[SPEAKER_01]: Yeah, even higher than that.
35:46
[SPEAKER_01]: Yeah, definitely double digits.
35:47
[SPEAKER_01]: Double digits.
35:49
[SPEAKER_01]: Okay.
35:49
[SPEAKER_01]: So, what we saw during COVID time at a two three percent, do you believe, honestly, realistically, but this administration or even the next administration, do you think we'll get back to the reason for us?
36:05
[SPEAKER_01]: No.
36:06
[SPEAKER_04]: Never.
36:08
[SPEAKER_00]: Why is that, though?
36:10
[SPEAKER_00]: Well, there's a couple things in play because if interest rates were to go that low, that's a reason for it.
36:17
[SPEAKER_00]: So that means something happened with the economy.
36:20
[SPEAKER_00]: Interest not going to just fall just because everything's going good with the economy.
36:24
[SPEAKER_00]: So that means unemployment rates are through the roof.
36:29
[SPEAKER_00]: It's this, it's like recession happened, essentially.
36:32
[SPEAKER_00]: A COVID, a COVID 2 point up.
36:34
[SPEAKER_00]: Yeah, yeah, yeah, yeah.
36:35
[SPEAKER_00]: And so then we have to lower rates.
36:38
[SPEAKER_00]: But right now, I think it's the least try to aim to get back to like five mid-five percent interest rate, which is a good market, because even if you have a home buyer, or a homeowner that has a house, then it interest rates are 3.5 percent, and it was just waiting to sell their home, just like, I don't want to sell my house and like get like a 7 percent interest rate, but I'll take a five.
36:56
[SPEAKER_00]: That's more reasonable, you know, sell like a 4% industry jump.
37:00
[SPEAKER_00]: And so that way we have some more sellers, you know, listen more homes, and then the marketing can move a little bit more freely.
37:06
[SPEAKER_04]: And that's why I when people say, man, I want a 2% interest rate, I want a 3% interest rate, but what they don't realize is when interest rates are like that, there's more competition.
37:18
[SPEAKER_04]: So that's rise.
37:20
[SPEAKER_04]: If you were to tell me if you were to bring me a property during the 2% and 3% interest rate market, I would tell you at $50,000 to that price, that's the starting price.
37:30
[SPEAKER_04]: Yes, that's not even where we on the end, that's not even where we're going to end, we might we might even go up another 50,000 right 100,000 above list price right to get the home and we're going to have to wave everything.
37:44
[SPEAKER_01]: That's more we had to down in the house right now.
37:46
[SPEAKER_01]: Yeah, we have everything because we moved during COVID.
37:49
[SPEAKER_04]: Yep exactly.
37:50
[SPEAKER_04]: So the thing is.
37:53
[SPEAKER_04]: Do you want that 2% or 3% to increase the risk and increase the monthly payment?
38:00
[SPEAKER_04]: You might, you might, you might, you right back where you are at a 5% interest rate.
38:06
[SPEAKER_01]: Because that's what everyone's saying.
38:07
[SPEAKER_01]: I'm waiting to buy to get a little interest rate.
38:10
[SPEAKER_01]: And I'm like, is that the right strategy right now in 2026?
38:13
[SPEAKER_00]: No, the right questions asked, can I forward this home?
38:18
[SPEAKER_00]: Yes.
38:20
[SPEAKER_00]: But if I can afford his monthly payment by the house, by the house.
38:24
[SPEAKER_01]: Nope.
38:25
[SPEAKER_01]: And
38:26
[SPEAKER_01]: The truth of the fact is, if I know I can afford, for an example, $3,500 a month, I call you and say, hey, this is what I can afford a month.
38:36
[SPEAKER_01]: What did those numbers look like?
38:38
[SPEAKER_01]: I get those numbers.
38:39
[SPEAKER_01]: I go to Keith, say, Keith, the mess I can afford is X amount of dollars.
38:44
[SPEAKER_01]: Then Keith, you send me back homes within that budget that goes down to my monthly payment.
38:50
[SPEAKER_01]: I'm in a good place.
38:51
[SPEAKER_01]: Correct.
38:52
[SPEAKER_01]: And it's not really about the interest rate.
38:54
[SPEAKER_01]: It's about what you just said.
38:56
[SPEAKER_01]: What is the monthly mortgage I can afford?
38:58
[SPEAKER_01]: Now, the truth of the fact is, your monthly mortgage is going to be impacted by a 7% interest rate, compared to a 5% interest rate.
39:06
[SPEAKER_01]: So you may buy less house and you just have to be okay with that.
39:19
[SPEAKER_01]: No, I mean, I just, I just think we gotta have more conversations after this man.
39:23
[SPEAKER_01]: Have to.
39:24
[SPEAKER_01]: Because I think right now, if I'm just being very honest and transparent, one of the reasons why African Americans struggle financially is because we do not have homes.
39:35
[SPEAKER_01]: We're not homeowners.
39:36
[SPEAKER_01]: And I know there's this big wave.
39:38
[SPEAKER_01]: I'm curious about my no-key perspective on this.
39:40
[SPEAKER_01]: There's a lot of stuff online saying rent.
39:43
[SPEAKER_01]: This rent if you're a millionaire just rent because home ownership and today's the end time that's not really worth it I thought it's one to talk video keath in the guy which is breaking out all the numbers Hmm, he's all right.
39:54
[SPEAKER_01]: So if I buy this house, right?
39:56
[SPEAKER_01]: Okay, I pay all this money to fix in a room fix in that fix in this business then I go and I sell it because it it Appreciate it.
40:03
[SPEAKER_01]: I just got a refund back and maybe 50,000 dollars
40:07
[SPEAKER_01]: of my money because it was like, hey, boom.
40:10
[SPEAKER_01]: But I was like, yeah, but you painted the worst case in the area, not everyone was replacing their roof.
40:17
[SPEAKER_01]: He's just more clicks.
40:18
[SPEAKER_01]: Yeah, you know what I'm saying?
40:19
[SPEAKER_01]: Like, that is a valid point.
40:21
[SPEAKER_01]: But if I look at all the wealthy people, make Donald's in Walmart, they're not in the business of burgers and selling those clothes.
40:28
[SPEAKER_01]: They're in the business of real estate.
40:30
[SPEAKER_01]: Yeah, easy.
40:31
[SPEAKER_01]: You know what I'm saying?
40:32
[SPEAKER_01]: And I'm like, so if the billionaires are in the business of real estate, why can't we get in my set of real estate?
40:40
[SPEAKER_01]: Yeah.
40:40
[SPEAKER_01]: I'm curious, Mom, you're in, I know keeps in.
40:43
[SPEAKER_01]: What's your thoughts on that?
40:43
[SPEAKER_01]: Like, I don't know you're in the mortgage loan offers of spades, but do you think everyone should be striving to be homeowners?
40:52
[SPEAKER_00]: Yes.
40:53
[SPEAKER_00]: Um, because there's a couple of factors in place because when you buying a house, there's more thing, more benefit you're getting attacks right off.
41:00
[SPEAKER_00]: Yeah, you're building well.
41:02
[SPEAKER_00]: Yes.
41:02
[SPEAKER_00]: And so you, I think the culture now everything's ever wants something quick, quick, quick money fast and I think it'll have the slow, wealth building and home ownership, which is how you should be looking at it.
41:12
[SPEAKER_00]: Bro.
41:13
[SPEAKER_00]: And so that's the key thing people are like, like stressing over, it's like, well, what is my returns on this about this house, that this down payment, the interest rate, I'm paying all this stuff, it doesn't make sense.
41:24
[SPEAKER_00]: I'm better off just renting.
41:25
[SPEAKER_00]: I have to worry about long care and doing all those things up the house.
41:28
[SPEAKER_00]: I was like, yeah, but you have to look at it.
41:30
[SPEAKER_00]: That's a fact.
41:31
[SPEAKER_00]: From a long turn perspective, yeah, like I will get it from my parents when they bought their house.
41:36
[SPEAKER_00]: They bought their house at 175.
41:38
[SPEAKER_00]: The house is about now's worth $600,000.
41:40
[SPEAKER_00]: They paid it off.
41:42
[SPEAKER_00]: The house is about $800,000 left.
41:44
[SPEAKER_00]: They did some upgrades to our house.
41:46
[SPEAKER_00]: But the thing is, that's the thing about real estate.
41:49
[SPEAKER_00]: is that the property, so the value is going to keep going up.
41:52
[SPEAKER_00]: They're going to keep going up.
41:54
[SPEAKER_00]: And so it's like by the house and like if you can afford, if you can afford the rent of $3,000, you can afford the buy a house of a mortgage of $3,000.
42:03
[SPEAKER_00]: This makes sure your finances are in place and an order and goes to a lender and an agent early on.
42:08
[SPEAKER_00]: So we can create a plan for you to let you know, okay, these are the next steps should be.
42:14
[SPEAKER_00]: These are what the numbers are going to look like.
42:15
[SPEAKER_00]: So that way you can be properly prepared to go out there and, you know, looking at homes and put an offer.
42:21
[SPEAKER_01]: Keith, our houses getting expensive more expensive now or is a market pretty like stable from what you're seeing or our houses going down.
42:28
[SPEAKER_01]: I mean, I'm hearing that it's stable and going down because of this market.
42:33
[SPEAKER_01]: But it's like I'm curious right now.
42:34
[SPEAKER_01]: What are you saying?
42:35
[SPEAKER_04]: We're in the spring market right now, and I give you an example, I had a couple shopping and Virginia right the property was listed for 1.25 right we started our offer at 1.3 and escalated up to 1.4 right and still lost and still lost and still lost and we weighed everything and still lost and still we did a pre-inspection way everything we still lost because
43:03
[SPEAKER_04]: What you have to understand when you're saying that, oh, houses are stable, it's going down.
43:09
[SPEAKER_04]: And stop the code that may be.
43:11
[SPEAKER_04]: And don't stop the code that may be.
43:12
[SPEAKER_04]: And Chicago, that may be.
43:14
[SPEAKER_04]: But like, hyper-local houses again, when you focus hyper-local houses is doing this, because the market that we're in, we're in a market where
43:23
[SPEAKER_04]: It's kind of too big to fill, jobs are always here, people are always coming in this area, touristy is driving the cost of schools, great schools in this area is driving the cost up.
43:34
[SPEAKER_04]: So you can't look at the macro level of veins, you have to look at where you are, what that market is doing, you can't look at TV.
43:42
[SPEAKER_04]: I can't look at TV what's going on.
43:44
[SPEAKER_04]: You look at TV right now.
43:45
[SPEAKER_04]: You're going to be, you all over the place.
43:47
[SPEAKER_04]: Yeah, all over the place, you know what I mean?
43:49
[SPEAKER_04]: Yeah.
43:50
[SPEAKER_04]: So you have to focus on what's going on, hyper-local, where you are.
43:54
[SPEAKER_04]: What is the market doing here?
43:56
[SPEAKER_04]: And even for furthermore, what is the market doing in the neighborhood you want to be in?
44:01
[SPEAKER_04]: That's a fat, you know?
44:02
[SPEAKER_04]: That's a fat.
44:03
[SPEAKER_04]: And you could say, six months worth of inventory, right?
44:07
[SPEAKER_04]: That's a balanced market, anything over six months, that's a buyer's market.
44:12
[SPEAKER_04]: Well, guess what, in February, right?
44:14
[SPEAKER_04]: DC market had six months worth of inventory on the market, right?
44:19
[SPEAKER_04]: In February, in March, it was 4.5.
44:23
[SPEAKER_04]: Which as a seller's market because the market's heating up, you know?
44:28
[SPEAKER_04]: So I always like to tell people which is focused on hyperlocal where you are what's going on in that market that you're in.
44:37
[SPEAKER_01]: Yeah, we almost asked my house because of that too.
44:39
[SPEAKER_01]: Yeah, we often went 50 grand more than 50 grand more than we had to go to a hundred.
44:46
[SPEAKER_01]: But the 100 was right at my budget and that's why I didn't even hesitate when keep told me that I said, but that's cool.
44:54
[SPEAKER_01]: That's my budget, but I was just trying to say money if I could.
44:56
[SPEAKER_01]: Yeah
44:57
[SPEAKER_01]: And they accepted that offer a main entity and I want to say the religious name, but if you're watching, thank you so much for working with us because I think they, they, they, they really did work with Keith and that's another thing to you got to have a fight you got to find your real good or illiterate because the right realiter can can work some magic for you on the back end if they know the other realiter.
45:18
[SPEAKER_03]: Oh, oh.
45:18
[SPEAKER_03]: Yeah.
45:19
[SPEAKER_01]: You know what I'm saying?
45:22
[SPEAKER_01]: Yeah.
45:22
[SPEAKER_01]: Yeah.
45:22
[SPEAKER_01]: And it's like, you know, and it's like, and then I think it really took me to have a good relationship with the loan officer and with the other realtor that you're going for because it was so funny, it was like, when I taste the house, it's like, do our kids play together.
45:33
[SPEAKER_01]: Hold on, bro, I'll call you back.
45:35
[SPEAKER_01]: That or that, blah, blah, blah, blah.
45:36
[SPEAKER_01]: Everybody's what we gotta do.
45:38
[SPEAKER_01]: Yep.
45:38
[SPEAKER_01]: I was like, where it was like, yeah, bro, that's my sister, like, she cool people.
45:42
[SPEAKER_01]: I was like, okay, boom, all right, she called me back.
45:46
[SPEAKER_01]: Just what she said, hey, this ain't gonna work, but we do this, right here we'll be in a real good position.
45:51
[SPEAKER_01]: We can, we can ratify this contract.
45:53
[SPEAKER_01]: I was like, all right, bad, boom, contract is ratified but then 24 hours.
45:56
[SPEAKER_01]: Yep.
45:57
[SPEAKER_01]: But, and I'm not saying, don't get, don't support a new realtor.
46:01
[SPEAKER_01]: I'm just saying, if you really wanna do it, right, you need to go with a well-seasoned realtor, yeah.
46:06
[SPEAKER_01]: or if you're gonna go with a new realtor, make sure that they're connected to a well-seasoned realtor that can help them get the deal across the table.
46:12
[SPEAKER_01]: That's right.
46:13
[SPEAKER_01]: Because I'm serious, like the last two big deals that mean Keith that looked at, it really came down in his relationship with the other realtor.
46:22
[SPEAKER_01]: And also, too, you gotta make sure that your realtor knows has the education on the market because the last deal keeps like,
46:31
[SPEAKER_01]: This particular person doesn't know what he talked about, and I was like, are you serious?
46:36
[SPEAKER_01]: Like, yeah, let me tell you why the ABCD, yeah, do you know what I'm like?
46:38
[SPEAKER_01]: It's like, so this is how they go and come back and it came back just like that.
46:42
[SPEAKER_01]: And I was like, yeah, you got to know it's not just about money at all because the right real tool will save you money.
46:49
[SPEAKER_01]: and the right loan officer would save you all money.
46:51
[SPEAKER_01]: And so y'all, we're going to continue.
46:53
[SPEAKER_01]: If y'all have more questions, let's do this.
46:56
[SPEAKER_01]: If you all have more questions, because I want to get you all in the home ownership.
47:02
[SPEAKER_01]: I think the quickest way I don't really believe in closing a wealth gap because if we close a wealth gap, that means that we got to ask our white brothers and sisters to stop making money.
47:08
[SPEAKER_01]: That ain't going to happen.
47:10
[SPEAKER_01]: But I do believe we can narrow the wealth gap and one of the key ways of narrowing the wealth gap is to get you all in a position to be a home owner and to get into investment properties.
47:20
[SPEAKER_01]: And I would love to bring you back on Jamal to talk about what is that process of life for investment properties with you and the realtor and how does that loan process work?
47:32
[SPEAKER_01]: Okay, how do I position myself for, you know, rental properties?
47:36
[SPEAKER_01]: Right.
47:36
[SPEAKER_01]: You know, and because that's a whole different conversation.
47:41
[SPEAKER_01]: You know, that's a whole different conversation.
47:43
[SPEAKER_01]: And I think one of my philosophies now is I want you to become a homeowner, and then I also want you to get at least one rental property.
47:50
[SPEAKER_01]: That is my goal is I want you to have at least one rental property.
47:56
[SPEAKER_01]: that is important, and I think it's just gonna close that close-out wealth gap.
48:00
[SPEAKER_01]: So y'all, we're gonna job Keith and Jamal's information inside of the show notes.
48:05
[SPEAKER_01]: If you're in a DMV area and if you're looking for property, hey, reach out to Keith, if you're in an area and wanna get some, where do you all find it inside of?
48:12
[SPEAKER_01]: So I find it's a whole DMV on PA in the jersey.
48:15
[SPEAKER_01]: Actually, anyone in the U.S. anywhere in the U.S. you can find it.
48:18
[SPEAKER_01]: Okay, cool.
48:18
[SPEAKER_01]: Great.
48:19
[SPEAKER_01]: Oh, so yeah, reach out and keep y'all and he'll get you connected and we will go from there.
48:22
[SPEAKER_01]: Y'all.
48:23
[SPEAKER_01]: It's been a great conversation.
48:24
[SPEAKER_01]: Thank y'all so much.
48:25
[SPEAKER_01]: I get about it here in Jet to School and Jet down to Richmond, Virginia, to teach my kids.
48:29
[SPEAKER_01]: So we'll see you in our next show.
48:30
[SPEAKER_01]: Peace out.