Latest / Earn Your Leisure / Study Hall: How to Buy a Home with MG The Mortgage Guy

Transcript

Study Hall: How to Buy a Home with MG The Mortgage Guy · Earn Your Leisure

• 0:00
  Speaker 1: You just realized your business needed to hire someone yesterday.
• 0:04
  Speaker 1: How can you find amazing candidates fast? Easy? Just use Indeed.
• 0:09
  Speaker 1: Stop struggling to get your job posts seen on other
• 0:12
  Speaker 1: job sites. With Indeed sponsored jobs, your post jumps to
• 0:16
  Speaker 1: the top of the page for your relevant candidates, so
• 0:19
  Speaker 1: you can reach the people you want faster. According to
• 0:22
  Speaker 1: Indeed data, sponsored jobs posted directly on Indeed have forty
• 0:26
  Speaker 1: five percent more applications than non sponsored jobs. Don't wait
• 0:30
  Speaker 1: any longer. Speed up your hiring right now with Indeed,
• 0:33
  Speaker 1: and listeners of this show will get a seventy five
• 0:36
  Speaker 1: dollars sponsored job credit to get your jobs more visibility
• 0:39
  Speaker 1: at indeed dot com slash pod Katz thirteen. Just go
• 0:45
  Speaker 1: to Indeed dot com slash pod Katz thirteen right now
• 0:50
  Speaker 1: and support our show by saying you heard about Indeed
• 0:53
  Speaker 1: on this podcast. Terms and conditions apply. Hiring Indeed is
• 0:57
  Speaker 1: all you need.
• 0:58
  Speaker 2: It's a crazy time that we're living in. Everybody knows
• 1:02
  Speaker 2: obviously we in. You know the age of Corona, and
• 1:05
  Speaker 2: I remember texting you like when when Corona first hit.
• 1:08
  Speaker 2: I'm like, yo, that's when the stock market was crashing,
• 1:11
  Speaker 2: and I'm like, there's real estate market about the crash,
• 1:13
  Speaker 2: and he was like, nah, it's not And I'm like,
• 1:15
  Speaker 2: how people were losing their jobs, stock markets crashing, people
• 1:19
  Speaker 2: can't go to work, like all the writings on the
• 1:22
  Speaker 2: wall for another two thousand and eight to happen, and
• 1:25
  Speaker 2: you was like, nah, commercial real estate might be in trouble,
• 1:27
  Speaker 2: but residential real estate, I'm like, all right, we'll see.
• 1:31
  Speaker 2: And then to this day, it hasn't crashed. It's actually
• 1:34
  Speaker 2: going up. In most most places in America. The price
• 1:37
  Speaker 2: the home prices have actually going up. It's a shortage
• 1:39
  Speaker 2: of our inventory on the marketplace. So where we're at
• 1:43
  Speaker 2: right now as far as the state of real estate
• 1:46
  Speaker 2: in the United States of America.
• 1:48
  Speaker 3: The market is on fire for residential you know. And
• 1:51
  Speaker 3: I told you this back in March. I said, nah, bro,
• 1:53
  Speaker 3: it's not going to happen because with people and everybody
• 1:56
  Speaker 3: was kind of saying the same thing, like, yo, two
• 1:58
  Speaker 3: thousand and eight is coming back. Wait, don't buy weight,
• 2:01
  Speaker 3: And I said two thousand and eight was different. That
• 2:03
  Speaker 3: was a credit crisis, right, This is a health crisis.
• 2:07
  Speaker 3: Credit crisis means that banks, Wall streeters, everybody, homeowners, you know, investors,
• 2:13
  Speaker 3: everybody was greedy, you know, appraisers, everybody, right, So when
• 2:19
  Speaker 3: the market crashed, the government was reluctant on trying to
• 2:22
  Speaker 3: save everybody. They didn't want to bail out everybody, but
• 2:26
  Speaker 3: they had no choice but to bail out the big names. Right.
• 2:29
  Speaker 3: So with this one, I said, now, this is health
• 2:33
  Speaker 3: This has nothing to do with nobody. This is nobody's fault.
• 2:36
  Speaker 3: And if you think about it, if you look at
• 2:37
  Speaker 3: the real estate market going into twenty twenty, it was
• 2:39
  Speaker 3: already on fire. It was due for a correction at
• 2:42
  Speaker 3: some point, because what goes up must come down, right,
• 2:47
  Speaker 3: But I said, nah, this is not going to crash.
• 2:50
  Speaker 3: There's no way, because the government is going to have
• 2:51
  Speaker 3: to bail out everybody now, right from the big businesses
• 2:56
  Speaker 3: to the everyday person. And when you told me that
• 3:00
  Speaker 3: it's going to crash, that's what was in my mind
• 3:02
  Speaker 3: because I knew, especially with the election year, they couldn't
• 3:06
  Speaker 3: just let all these people die, people lose their homes.
• 3:09
  Speaker 3: There's no way. And as you see, all these stimulus
• 3:12
  Speaker 3: packages came out, everybody getting their ppe money and everything.
• 3:17
  Speaker 4: It was recklessly and hopefully they wasn't reckless.
• 3:19
  Speaker 3: Hopefully they wasn't reckless, and hopefully they did the right thing.
• 3:21
  Speaker 3: But you know, you have unemployment benefits, people are getting
• 3:24
  Speaker 3: them with ease, with no problem. So you know, you
• 3:27
  Speaker 3: got to give the administration credit for what they tried
• 3:31
  Speaker 3: to do to help as many people as possible. And
• 3:34
  Speaker 3: that's why I just didn't feel like the market was
• 3:36
  Speaker 3: going to crash. But residential real estate is on fire
• 3:39
  Speaker 3: right now all over the country. There's thirty forty offers
• 3:43
  Speaker 3: on one house, you know, So if you're a seller
• 3:46
  Speaker 3: right now, if you're thinking about selling your home to
• 3:49
  Speaker 3: upgrade or downsize, this is the time for the sellers
• 3:52
  Speaker 3: right now, because they're going to get twenty thirty percent
• 3:57
  Speaker 3: above asking price in some markets right now because it's
• 4:00
  Speaker 3: just too hot right now. It's too many buyers out there,
• 4:03
  Speaker 3: and with these low interest rates, you know, or rates
• 4:05
  Speaker 3: being in the mid twos to low threes, depending on
• 4:09
  Speaker 3: your circumstance, Like everybody wants to buy a house because
• 4:12
  Speaker 3: money is cheap now, right so it's easy to the
• 4:16
  Speaker 3: person who couldn't afford the half a million dollar house
• 4:18
  Speaker 3: last year when rates were three and a half four percent,
• 4:21
  Speaker 3: now it's two and a half.
• 4:23
  Speaker 2: Can can you explain like that? Like, because the average
• 4:25
  Speaker 2: person that maybe never brought a home might not fully
• 4:27
  Speaker 2: appreciate because they say three and a half, two and
• 4:29
  Speaker 2: a half, it's only one percent, that's not that big
• 4:32
  Speaker 2: of a deal. But because they looking at it like
• 4:35
  Speaker 2: it's stocks, like it's like if you earn one percent,
• 4:37
  Speaker 2: you know what I'm saying, or just regular life, one
• 4:38
  Speaker 2: percent doesn't move the needle. But in your world of
• 4:41
  Speaker 2: mortgage is one percent is huge. Right, So if you
• 4:43
  Speaker 2: kind of put that in perspective out.
• 4:44
  Speaker 3: Here, I mean, look, one percent depending on your loan amount, right,
• 4:47
  Speaker 3: that can be three four five hundred dollars a month.
• 4:50
  Speaker 3: That could be six thousand, eight thousand, ten thousand a year,
• 4:54
  Speaker 3: depending on the size of your loan. Right. So the
• 4:58
  Speaker 3: big of the loan, the low a rate, the cheap
• 5:01
  Speaker 3: of the payment. Right. So someone again who couldn't afford
• 5:05
  Speaker 3: the five hundred thousand dollars home or get pre approved
• 5:07
  Speaker 3: for a five hundred thousand dollar home a year ago
• 5:09
  Speaker 3: because the rate was probably three and a half to
• 5:11
  Speaker 3: four percent, now they're able to because now that brings
• 5:14
  Speaker 3: their payment down and they're able to get approved for
• 5:17
  Speaker 3: now that higher amount. So one percent is huge in
• 5:21
  Speaker 3: the real estate in the mortgage world, interest that you're
• 5:24
  Speaker 3: gonna pay over the life of the loan is also
• 5:26
  Speaker 3: very important too, because if you're looking at any house
• 5:30
  Speaker 3: that you buy, let's face it, right, the way the
• 5:32
  Speaker 3: mortgage in the banking system is set up, it's you know,
• 5:36
  Speaker 3: you're gonna pay interest three times more than what the
• 5:38
  Speaker 3: houses actually work. But if you're getting a cheaper interest rate,
• 5:42
  Speaker 3: that softens the blow a little bit, and now you
• 5:45
  Speaker 3: can focus on your debt strategy, which is repaying back
• 5:48
  Speaker 3: your debt and trying to beat that interest trap. You
• 5:51
  Speaker 3: know what I'm saying, and you know little things you
• 5:53
  Speaker 3: can do to do that. You can make one extra
• 5:55
  Speaker 3: payment a year and you can pay off your loan
• 5:57
  Speaker 3: in twenty two and a half years if you have
• 5:58
  Speaker 3: a thirty year mortgage. Know what I tell folks all
• 6:01
  Speaker 3: the time, take your income taxes refunds right and apply
• 6:05
  Speaker 3: that every single year to your principal balance. That could
• 6:08
  Speaker 3: bring down your debt. You can do as little as
• 6:10
  Speaker 3: one hundred dollars a month to your principal balance and
• 6:13
  Speaker 3: you'll be surprised how much interest you'll save on your mortgage,
• 6:17
  Speaker 3: especially if you plan on living in the house the
• 6:19
  Speaker 3: long term, the full term of thirty years you don't
• 6:23
  Speaker 3: want to just make your regular payment because you're gonna
• 6:25
  Speaker 3: pay you know, on a three hundred, four hundred thousand
• 6:28
  Speaker 3: dollars home, you may pay back eight hundred thousand.
• 6:30
  Speaker 2: Now that was a gym, what you just said. And
• 6:32
  Speaker 2: I learned that in business. I don't want that to
• 6:34
  Speaker 2: go people's head. When I first got into into the
• 6:37
  Speaker 2: industry working in finance, I learned that like one extra
• 6:42
  Speaker 2: payment a year on your mortgage cut seven years off
• 6:46
  Speaker 2: of your mortgage.
• 6:47
  Speaker 3: Absolutely, or eight seven, eight twenty two and a half years.
• 6:50
  Speaker 2: Yeah, so that's that's huge if you really think about it.
• 6:54
  Speaker 2: It's like one extra payment a year absolutely can really
• 6:59
  Speaker 2: take almost a decade off, like.
• 7:01
  Speaker 3: Basically, and it has to be towards your principal balance only.
• 7:05
  Speaker 3: So if you're making a payment, you can't just give
• 7:07
  Speaker 3: the bank money because they're automatically going to apply it
• 7:09
  Speaker 3: to interest, right, because you have to direct them where
• 7:13
  Speaker 3: you want that money to go.
• 7:14
  Speaker 5: How does that even look?
• 7:15
  Speaker 4: So if my mortgage is three thousand, I gotta pay
• 7:18
  Speaker 4: six thousand if I'm doing it.
• 7:19
  Speaker 3: Yeah, So if your mortgage is three, you can pay
• 7:21
  Speaker 3: six and you can tell them the difference to go
• 7:24
  Speaker 3: to principal balance only. Some online everything's online right now
• 7:28
  Speaker 3: with all the banks, right so you can go pay
• 7:30
  Speaker 3: your mortgage and you can specify their two principal balance only.
• 7:33
  Speaker 3: You can write a check, put on a check two
• 7:35
  Speaker 3: principal balance only. So, depending on how you pay your mortgage,
• 7:39
  Speaker 3: do that. And if it's not an online option to
• 7:42
  Speaker 3: pay extra, call the service and lender that you're paying
• 7:44
  Speaker 3: your mortgage too, and figure out a way to accomplish
• 7:48
  Speaker 3: that goal. Maybe they can just do automatic drafts from
• 7:50
  Speaker 3: your account something like that and set it up to
• 7:53
  Speaker 3: where you can make that extra payment, you know, and
• 7:55
  Speaker 3: you'll be surprised if you make two payments extra year.
• 7:58
  Speaker 4: That's what in my mind, I'm thinking that if I
• 7:59
  Speaker 4: make two extra pas now that seven ers of the fourteen,
• 8:02
  Speaker 4: I'm really at a fifteen year.
• 8:03
  Speaker 3: Mortgage basically, And I'm glad you brought up fifteen year
• 8:06
  Speaker 3: mortgages right, especially right now folks want to go into
• 8:08
  Speaker 3: fifteen year loans and look, the fifteen year rate. The
• 8:12
  Speaker 3: lowest I've seen it since we've been in COVID was
• 8:15
  Speaker 3: around two percent, which is phenomenais, right, that's incredible. But
• 8:19
  Speaker 3: what I try to tell people is maybe not going
• 8:22
  Speaker 3: to that fifteen year right now, because life happens, right,
• 8:26
  Speaker 3: you're committing yourself to a much higher payment, and what if,
• 8:30
  Speaker 3: you know, COVID twenty one comes God forbid and it's worse,
• 8:34
  Speaker 3: worse strained than this. Now you're committing yourself to that
• 8:37
  Speaker 3: higher payment just to try to pay it all early,
• 8:40
  Speaker 3: when you could have went to a thirty year, had
• 8:42
  Speaker 3: a cheaper payment, and just manage your principal balance yourself
• 8:46
  Speaker 3: that way, you're not committed to that fifteen year term
• 8:49
  Speaker 3: or that twenty year term. You stay with the cheapest
• 8:53
  Speaker 3: possible payment, but still you're paying down your debt, you
• 8:57
  Speaker 3: know so, And I'm not against year mortgages. I think
• 9:01
  Speaker 3: for the right people it works, right people who have
• 9:04
  Speaker 3: substantial income and they can really afford the payment. But
• 9:07
  Speaker 3: most people are trying to pay off their loan fast,
• 9:11
  Speaker 3: which I get, but they're now cash strap, right, They're
• 9:15
  Speaker 3: becoming house rich and cash poor because they're making their
• 9:18
  Speaker 3: payment so much higher because they're just focusing on I
• 9:21
  Speaker 3: just want to get rid of it, which again I understand,
• 9:24
  Speaker 3: but you got to be a little bit smarter right now,
• 9:26
  Speaker 3: because anything could happen. As we've seen, we woke up
• 9:28
  Speaker 3: in twenty twenty, Kobe dead with God bless you know,
• 9:32
  Speaker 3: then COVID came. Like this year has been crazy, you
• 9:35
  Speaker 3: know what I'm saying. So like, if this doesn't teach
• 9:37
  Speaker 3: anybody anything, you got to have cash flow right now.
• 9:39
  Speaker 3: You got to have liquidity because anything can happen. So
• 9:43
  Speaker 3: that's why I just try to tell home own future
• 9:46
  Speaker 3: homeowners and current homeowners who are refinancing, if you don't
• 9:50
  Speaker 3: have to go to the fifteen year, just stay with
• 9:52
  Speaker 3: the twenty or thirty years, so that way you can
• 9:55
  Speaker 3: have a little bit more cash flow.
• 9:56
  Speaker 4: Can I go back to something you said, because when
• 9:58
  Speaker 4: you say, I'm like, oh, how does that work? Because
• 10:00
  Speaker 4: I've heard of corrections obviously in the stock market, and
• 10:02
  Speaker 4: we know that's maybe eight to ten percent or eighteen percent.
• 10:05
  Speaker 4: What does that look What does the correction look like
• 10:07
  Speaker 4: in the real estate world? Is that interest rates go up? Like,
• 10:10
  Speaker 4: what is the correction in the real estate world?
• 10:11
  Speaker 3: I mean it could be rates go up, It could
• 10:13
  Speaker 3: be home prices depreciate, you know, it could be lenders
• 10:17
  Speaker 3: tightening up their guidelines. You know, all of these things
• 10:20
  Speaker 3: could be corrections in the market that can affect the
• 10:23
  Speaker 3: buying power of Americans. Right, if home prices decline like
• 10:27
  Speaker 3: you thought it was, I mean, it sucks, but what
• 10:30
  Speaker 3: goes up must come down at some point. Right. So
• 10:32
  Speaker 3: that's why over leveraging is not over leveraging is key,
• 10:37
  Speaker 3: you know. And this is why I talk a lot
• 10:39
  Speaker 3: about rehabs, rehab loans, and things of that nature, because
• 10:42
  Speaker 3: I want first time home buyers to think like investors.
• 10:45
  Speaker 3: When you're buying these homes, buy them the same way
• 10:48
  Speaker 3: that you'll see a Caesar by them, or Envy buy them,
• 10:50
  Speaker 3: or any investor that you guys are following online by
• 10:54
  Speaker 3: the same way they're buying. You know, there's nothing special
• 10:57
  Speaker 3: about anybody who's flipping real estate or doing anything. They
• 11:01
  Speaker 3: just have more knowledge than you, and they know where
• 11:03
  Speaker 3: to look and where to find these properties. You can
• 11:05
  Speaker 3: do the same thing. The information is available, you know,
• 11:08
  Speaker 3: there's no excuse. It's not like ten fifteen years ago
• 11:12
  Speaker 3: when I first came into business, there was no social media. Right,
• 11:15
  Speaker 3: you can hashtag and follow a hashtag and you'll see
• 11:19
  Speaker 3: hundreds of people flipping houses and they're giving you all
• 11:22
  Speaker 3: this information. So now you just got to apply it.
• 11:24
  Speaker 3: And if you're a first time home by it, there's
• 11:25
  Speaker 3: so many different programs out there for you to get
• 11:28
  Speaker 3: the rehab money to be able to now buy a
• 11:30
  Speaker 3: home that's undervalue. Put that money into it, force the appreciation,
• 11:35
  Speaker 3: and now you have equity in that home, and God
• 11:38
  Speaker 3: forbid the house does depreciate. You still good because if
• 11:41
  Speaker 3: you lose ten percent equity because the market is declining
• 11:45
  Speaker 3: five percent equity, you're not over leverage. You're not upside down.
• 11:49
  Speaker 3: So I try to promote don't buy retail if you
• 11:52
  Speaker 3: don't have to, But I understand you have to in
• 11:55
  Speaker 3: some cases buy retail because the school districts, family needs,
• 11:59
  Speaker 3: things of that nature, don't have a choice. But still
• 12:01
  Speaker 3: try to buy the ugliest house in the best neighborhood.
• 12:03
  Speaker 2: So let me ask you this because you know, obviously
• 12:05
  Speaker 2: you said that it's a seller's market, absolutely what interest
• 12:09
  Speaker 2: rates are extremely low right now, so that would say
• 12:11
  Speaker 2: it would be better.
• 12:12
  Speaker 5: It's good for the buyer so.
• 12:14
  Speaker 3: To get along, but it's great for the seller because
• 12:18
  Speaker 3: they're going to have multiple offers on their home.
• 12:21
  Speaker 2: Okay, So for people that's looking at maybe purchase a home,
• 12:24
  Speaker 2: is this a good time to or should it? Because like,
• 12:28
  Speaker 2: all right, average, like let's say somebody hasn't brought a
• 12:30
  Speaker 2: home yet, and they looking at it like, all right,
• 12:31
  Speaker 2: I got some money saved and low interest rates, it's
• 12:34
  Speaker 2: a good time for me to buy a home. But
• 12:36
  Speaker 2: if it's a seller's market, should they be looking to
• 12:38
  Speaker 2: buy a home or should they just be waiting for
• 12:40
  Speaker 2: it to be a buyer's market?
• 12:41
  Speaker 5: Again?
• 12:42
  Speaker 3: Good question, right, So this is what I tell everybody.
• 12:45
  Speaker 3: If you have financial security, if you have down payment,
• 12:48
  Speaker 3: closing costs and reserves, and you have the knowledge and
• 12:52
  Speaker 3: your mindset is right and everything is where it needs
• 12:54
  Speaker 3: to go, you have your team, and if your goal
• 12:56
  Speaker 3: in twenty twenty prior to COVID was to purchase, then
• 13:00
  Speaker 3: I personally believe you should still purchase, right because the
• 13:03
  Speaker 3: money is dirt cheap. Now on the flip side, should
• 13:06
  Speaker 3: you wait till the quote unquote buyers market come and
• 13:09
  Speaker 3: the homes depreciate? When the hell is that going to be?
• 13:13
  Speaker 3: No one has a crystal ball that could come five
• 13:16
  Speaker 3: years from now, and then the race could be seven
• 13:18
  Speaker 3: percent then, So like, I don't care if the homes
• 13:22
  Speaker 3: go down ten fifteen percent, but now I'm paying seven
• 13:24
  Speaker 3: percent on the money, right, So you got to look
• 13:26
  Speaker 3: at the whole opportunity costs for yourself of what's going
• 13:30
  Speaker 3: to be best for you. Everybody's going to have an
• 13:31
  Speaker 3: opinion on this, right, everybody has. Everybody's an expert, everybody's
• 13:36
  Speaker 3: an economist, you know what I'm saying. Like everybody knows
• 13:39
  Speaker 3: when the crash is going to happen. People will say, oh,
• 13:42
  Speaker 3: the foreclosure craze on waver is going to happen next year.
• 13:45
  Speaker 3: How do you know that? How do you know that?
• 13:48
  Speaker 3: No one knows. You know what I'm saying. So for me,
• 13:51
  Speaker 3: if you're financially secure and you want to buy real
• 13:54
  Speaker 3: estate and you want to get in the game and
• 13:56
  Speaker 3: you want to invest, then invest.
• 13:57
  Speaker 5: Do it.
• 13:58
  Speaker 3: Just be smart about it. Take it to because iteration.
• 14:00
  Speaker 3: If you're buying rental properties, make sure you're doing your
• 14:04
  Speaker 3: due diligence. If it has tenants in the property, make
• 14:07
  Speaker 3: sure you ask it for proof that they're paying. You
• 14:10
  Speaker 3: know what I'm saying, Because anybody can tell you anything. Yeah,
• 14:12
  Speaker 3: I got three tenants in here, they're all good. Okay,
• 14:15
  Speaker 3: show me the proof, home seller. You know what I'm saying.
• 14:20
  Speaker 3: Let me see two to three months of your bank
• 14:22
  Speaker 3: statement showing these deposits going in. Show me the proof,
• 14:26
  Speaker 3: be smart, and that's what it's all about, doing your
• 14:28
  Speaker 3: due diligence and applying that information and going out there
• 14:33
  Speaker 3: and executing at a high level, and being a CEO
• 14:36
  Speaker 3: of your real estate business. Even if it's your first home,
• 14:39
  Speaker 3: it doesn't matter. You still got to be a CEO.
• 14:41
  Speaker 3: You can't be out here emotional. And I think I
• 14:43
  Speaker 3: said that on the last episode two, and I've been
• 14:46
  Speaker 3: saying it's pretty much my whole career because at one
• 14:48
  Speaker 3: point I was emotional when I was buying homes. I
• 14:51
  Speaker 3: wasn't really looking at numbers. I was just happy to
• 14:53
  Speaker 3: be able to buy real estate, and I made a
• 14:55
  Speaker 3: lot of bad decisions, which you know, I share with
• 14:58
  Speaker 3: you guys that just paid for Like it was bad
• 15:02
  Speaker 3: decisions and I just had to pay for it, and
• 15:04
  Speaker 3: it sucks. But these were lessons and this is why
• 15:07
  Speaker 3: my message my message, and I try to educate everybody
• 15:11
  Speaker 3: to tell them, like, look, you just got to do
• 15:13
  Speaker 3: the numbers, and don't be scared. Just be sharp and
• 15:16
  Speaker 3: understand on what you're doing, but don't worry about what
• 15:20
  Speaker 3: could have, should have or what can happen, because if
• 15:22
  Speaker 3: it's going to happen, everything's going to happen in God's
• 15:24
  Speaker 3: time anyway, it's nothing you can do about it. So
• 15:27
  Speaker 3: just be smart to have your reserves and be prepared
• 15:29
  Speaker 3: for the worst. You know what Ian said, you need
• 15:31
  Speaker 3: five five years of reserves sixty months. It's like you
• 15:34
  Speaker 3: know what I'm saying. So like many people ain't in
• 15:37
  Speaker 3: that position to have five years. But if you lose
• 15:40
  Speaker 3: using your last dollar to buy real estate, then you're
• 15:42
  Speaker 3: playing yourself. You're really playing yourself. You should not be
• 15:46
  Speaker 3: house rich and cash Paul like, you have to do
• 15:48
  Speaker 3: your due diligence.
• 15:49
  Speaker 5: So it's up earnest.
• 15:50
  Speaker 4: When it comes to beard here and facecare grooming products,
• 15:53
  Speaker 4: Scotch Porter is the real deal helping men with grooming
• 15:56
  Speaker 4: issues they face daily itchiness, dryness, shut when it comes
• 16:00
  Speaker 4: to your bed and hear and blemishes, bacteria and clock
• 16:03
  Speaker 4: pores when it comes to your face.
• 16:05
  Speaker 5: I mean, let's keep it real.
• 16:06
  Speaker 4: Who doesn't want to soft thick growing beer. Scotch Support
• 16:09
  Speaker 4: is non toxic, better for you products including ingredients such
• 16:12
  Speaker 4: as scale protein, white willow bark, biotin, and pomegranate amazons
• 16:16
  Speaker 4: to cleanse, condition, moisturize.
• 16:18
  Speaker 5: And promote your growth.
• 16:20
  Speaker 4: Need some new grooming products to get your full routine
• 16:22
  Speaker 4: into swing for a limited time, take fifteen dollars off
• 16:25
  Speaker 4: your order over forty five dollars excluding accessories. Visit Scotch
• 16:30
  Speaker 4: porter dot com and use the code EYL fifteen at checkout.
• 16:34
  Speaker 4: Make sure you tell them that the good folks at
• 16:35
  Speaker 4: EYL sent you.
• 16:36
  Speaker 5: Yeah.
• 16:37
  Speaker 4: One of the other things you said on episode twelve
• 16:39
  Speaker 4: was that the equity in your home is monopoly money. Correct,
• 16:41
  Speaker 4: And I feel like maybe thousands of people must have
• 16:43
  Speaker 4: heard that right because the refive rates have been low
• 16:47
  Speaker 4: and thousands of America's been doing it right. So what
• 16:50
  Speaker 4: has that been like for your business during Corona?
• 16:55
  Speaker 3: Well, it is a pandemic. Some people call it a
• 16:58
  Speaker 3: pandemic plandemic. I'm calling it a pandemic because right now,
• 17:04
  Speaker 3: if you're in a real estate industry, God bless you,
• 17:07
  Speaker 3: you know, and you're having record breaking years all across
• 17:10
  Speaker 3: the board in the industry, from the appraisers to the
• 17:12
  Speaker 3: realtors to shit, even the loan processors and loan assistance.
• 17:16
  Speaker 3: They're levering up their bag because it's so much volume
• 17:19
  Speaker 3: that companies need to hire. And now, look, I ain't
• 17:22
  Speaker 3: gonna tell all my business, but I had to pay
• 17:25
  Speaker 3: some people some money that I never thought I would
• 17:27
  Speaker 3: have to pay them to come work for me right
• 17:29
  Speaker 3: because you need talent right now because there's so much
• 17:31
  Speaker 3: volume coming in. It's not enough bodies in the real
• 17:35
  Speaker 3: estate industry to handle the amount of people who want
• 17:37
  Speaker 3: to do a refinance right now or buy a house.
• 17:40
  Speaker 3: It's absolutely incredible. So what is done for my business
• 17:44
  Speaker 3: is blowing up. It's a great thing. I love it,
• 17:47
  Speaker 3: but it's also overwhelming. It's stressful, like you're dealing with
• 17:50
  Speaker 3: people's lives and that's never an easy thing when you're
• 17:53
  Speaker 3: trying to help someone either save money on their mortgage,
• 17:56
  Speaker 3: pull money out to go buy other real estate, then
• 17:59
  Speaker 3: helping them do those transactions, so you know, it's late night,
• 18:04
  Speaker 3: early mornings, lack of sleep, you know, lack of time
• 18:07
  Speaker 3: spending at home with the fam and everything like that.
• 18:10
  Speaker 3: It's a lot right now, so a lot of things
• 18:11
  Speaker 3: being sacrificed, and it's for the greater good obviously, but
• 18:15
  Speaker 3: it's a lot man. So yeah, you're making money, but
• 18:19
  Speaker 3: it's also a lot of responsibility that comes with it
• 18:22
  Speaker 3: because you're trying to service so many people. It gets
• 18:25
  Speaker 3: overwhelmings and that's important. Having that balance.
• 18:27
  Speaker 4: We talk about that a lot, just having.
• 18:29
  Speaker 3: Balance in your life.
• 18:30
  Speaker 4: And like we've been watching the news and it looks
• 18:33
  Speaker 4: like the races are going to stay that way for
• 18:34
  Speaker 4: a while.
• 18:34
  Speaker 3: So this is going to be business, you know, God willing,
• 18:39
  Speaker 3: you know, race will stay low. Me personally, I hope
• 18:41
  Speaker 3: they do go back up a little bit, slow things down.
• 18:45
  Speaker 3: That's just me, you know what I'm saying. I'd rather
• 18:47
  Speaker 3: go up a little bit, get rid of some of
• 18:49
  Speaker 3: these people so we can all breathe and get back
• 18:53
  Speaker 3: to regular life so to speak. In our world. You know,
• 18:56
  Speaker 3: the mortgage businesses set the break records this year in
• 18:59
  Speaker 3: twenty twenty. Trillions of dollars are being went in twenty twenty. Like,
• 19:03
  Speaker 3: I can't wait till the final number it's talied up
• 19:06
  Speaker 3: to just see what what the mortgage business did. But
• 19:08
  Speaker 3: it's it's incredible right now, what we're on pace to
• 19:11
  Speaker 3: do right now. It's a couple of trillion dollars. Like
• 19:13
  Speaker 3: I don't think people understand that it's a lot of
• 19:15
  Speaker 3: money being lent. And people think COVID and quarantines slowed
• 19:20
  Speaker 3: things or stopped anything. They didn't stop anything. It may
• 19:22
  Speaker 3: have slowed certain components down, like appraisals, getting tied of
• 19:26
  Speaker 3: reports and things of that nature. But it didn't slow nothing.
• 19:29
  Speaker 3: Now people are buying homes. And that's why I tell
• 19:31
  Speaker 3: folks over time, if you're looking to buy, buy, what
• 19:34
  Speaker 3: are you waiting for? Go ahead? Because your opportunity may
• 19:37
  Speaker 3: not be there.
• 19:38
  Speaker 5: Yeah, so let me ask you this.
• 19:39
  Speaker 2: As far as this is a business show, so a
• 19:42
  Speaker 2: lot of people that listen to ernalisia Is are entrepreneurs
• 19:46
  Speaker 2: or aspiring entrepreneurs. One of the hardest things for entrepreneurs,
• 19:49
  Speaker 2: business people ten ninety nine, contractors, things of that nature
• 19:53
  Speaker 2: is to buy a home because it's like a lot
• 19:55
  Speaker 2: of times it's one of the benefits of being business
• 19:56
  Speaker 2: owners that you get to write.
• 19:57
  Speaker 5: Off a lot.
• 19:58
  Speaker 2: Absolutely, but the problem with that when it comes to
• 20:01
  Speaker 2: getting a mortgage is that you don't show enough income.
• 20:03
  Speaker 2: So now it's like, you know, you're in a tough
• 20:05
  Speaker 2: spot because, yeah, you might have made two hundred thousand dollars,
• 20:09
  Speaker 2: but you're only paying taxes on twenty thousand.
• 20:13
  Speaker 3: No blessed Americans.
• 20:15
  Speaker 5: Like that, or seven hundred and fifty.
• 20:19
  Speaker 3: Dollars yea, yeah, yeah one eight beautiful beautiful old living.
• 20:27
  Speaker 2: So but yeah, it's like it's hard to get a mortgage,
• 20:30
  Speaker 2: but you was actually enlightened me, Like there's different programs
• 20:33
  Speaker 2: for business owners, like especially like bank statement loan things
• 20:36
  Speaker 2: that you could We haven't really covered that.
• 20:39
  Speaker 5: Can you talk about that?
• 20:40
  Speaker 3: Yeah, So you have loans out there that fall into
• 20:43
  Speaker 3: that non QM category, non qualified mortgage. It basically means
• 20:47
  Speaker 3: Fanny Mae or Freddie Mack who buys conventional loans from banks, right,
• 20:51
  Speaker 3: they won't purchase this type of loan, but there's private
• 20:54
  Speaker 3: lenders out there that will fund bank statement loans whereas
• 20:57
  Speaker 3: you can put as little as ten percent down. You
• 21:00
  Speaker 3: can borrow up to four million dollars with this type
• 21:02
  Speaker 3: of loan, and we're using the deposits as your income
• 21:05
  Speaker 3: for your business. So you can use either twelve months
• 21:09
  Speaker 3: or twenty four months of those deposits in your business
• 21:12
  Speaker 3: bank account and that can be used to qualify you
• 21:15
  Speaker 3: for your loans. So it's no tax returns, there's no
• 21:17
  Speaker 3: W two's obviously because you're self employed. We're not looking
• 21:20
  Speaker 3: at any of that stuff. We just need to see
• 21:22
  Speaker 3: twelve months of your business bank statements and we use
• 21:25
  Speaker 3: that for your income to qualify, and you can put
• 21:28
  Speaker 3: down as little as ten percent with these loans.
• 21:30
  Speaker 5: How's the interest rates?
• 21:31
  Speaker 3: Oh yeah, the rich interest rate you're gonna pay for it,
• 21:34
  Speaker 3: like you're gonna pay like, You're gonna talk probably like
• 21:37
  Speaker 3: in the right now six to eight percent range, depending
• 21:42
  Speaker 3: on the lender, you know what I'm saying. And you know,
• 21:44
  Speaker 3: when you're talking six you're probably going to have to
• 21:47
  Speaker 3: be more thirty percent thirty five percent down, you know,
• 21:51
  Speaker 3: high credit no minimum credit score for this program six sixty.
• 21:55
  Speaker 3: But you want to get that lower rate, you're going
• 21:57
  Speaker 3: to have to probably be in the high sevens with
• 22:00
  Speaker 3: a larger down payment. But if you're talking ten percent down,
• 22:04
  Speaker 3: you know, jumbo bank statement loan, you're probably gonna get
• 22:08
  Speaker 3: collaborated for like seven and a half percent.
• 22:10
  Speaker 5: Can you refinance later?
• 22:11
  Speaker 3: Absolutely? You can always refinance. Right, And here's another gym.
• 22:15
  Speaker 3: If you use the bank statement program and you get
• 22:19
  Speaker 3: into let's just say you're raighted seven percent. Right, file
• 22:22
  Speaker 3: your taxes and your business has been in business for
• 22:26
  Speaker 3: five years, like legally in business, right, Like you have
• 22:30
  Speaker 3: your filing receipt in this document. Freddie Mac has a
• 22:33
  Speaker 3: program where you can use one year tax returns as
• 22:37
  Speaker 3: a business owner. Right. So now this is a conventional loan.
• 22:40
  Speaker 3: So you can refinance into the conventional loan. Just file
• 22:42
  Speaker 3: your taxes the right way, show the income. Now pay
• 22:46
  Speaker 3: the tax the tax man they what you owe them,
• 22:50
  Speaker 3: or get into a payment arrangement so that way you
• 22:52
  Speaker 3: have a monthly payment on your tax bill that's outstanding.
• 22:56
  Speaker 3: We include that tax payment into your debt to income ratio.
• 23:00
  Speaker 3: And now you can use one year your TAXI terms
• 23:03
  Speaker 3: and you don't those negative tax with terms. We don't
• 23:05
  Speaker 3: even have to look at it. So you can just
• 23:06
  Speaker 3: use the one year and then refinance into a conventional loan.
• 23:10
  Speaker 3: After you do the bank statement loan.
• 23:11
  Speaker 4: How long you have to stay in the property.
• 23:13
  Speaker 3: If you're doing a primary residence, it's one year I
• 23:16
  Speaker 3: can perceive. But obviously Banks namer loans is not just
• 23:19
  Speaker 3: for primary residents. You can do vacation homes with it,
• 23:21
  Speaker 3: you can do investing properties.
• 23:23
  Speaker 2: What it is well, but that's that's that's big, especially
• 23:25
  Speaker 2: for business owners because if you compare, it's like a
• 23:26
  Speaker 2: hard money.
• 23:27
  Speaker 5: Hard money's like ten percent, yeah, hard money.
• 23:30
  Speaker 3: Right now, COVID rates are probably going to be ten
• 23:32
  Speaker 3: to thirteen fourteen percent depending on who you're working with. Yes,
• 23:36
  Speaker 3: only in your LLC's name. So these bank statement loans
• 23:40
  Speaker 3: just to clarify us in your personal name. Still it's
• 23:42
  Speaker 3: not in your LLC's name. So when you go asset
• 23:46
  Speaker 3: based or hard money, that's strictly in your LLC's name.
• 23:49
  Speaker 3: And that's why the rate is even higher because it's
• 23:51
  Speaker 3: on LLC based.
• 23:52
  Speaker 2: But that's the semi valuable and even if it's six
• 23:54
  Speaker 2: percent or even eight percent, it's still depending on how
• 23:57
  Speaker 2: much income you're not showing, because you have realized it's
• 24:01
  Speaker 2: like it's a trade off, right, you either show a
• 24:04
  Speaker 2: bunch of income. By showing a bunch of income, you
• 24:06
  Speaker 2: have to pay taxes on that money.
• 24:08
  Speaker 3: Correct.
• 24:08
  Speaker 2: So like let's say you're making two hundred thousand dollars
• 24:11
  Speaker 2: and you're showing twenty thousand. In order to qualify, you
• 24:14
  Speaker 2: need to show one hundred thousand. So now you got
• 24:17
  Speaker 2: to show eighty thousand dollars more correct, So now you
• 24:20
  Speaker 2: could potentially.
• 24:22
  Speaker 4: This episode is brought to you by P and C Bank.
• 24:25
  Speaker 4: A lot of people think podcasts about work are boring,
• 24:28
  Speaker 4: and sure they definitely can be, but understanding a professional's
• 24:32
  Speaker 4: routine shows us how they achieve their success little by little,
• 24:36
  Speaker 4: day after day. It's like banking with P and C Bank.
• 24:40
  Speaker 4: It might seem boring to safe plan and make calculated
• 24:43
  Speaker 4: decisions with your bank, but keeping your money boring is
• 24:46
  Speaker 4: what helps you live or more happily fulfilled life. P
• 24:49
  Speaker 4: and C Bank Brilliantly Boring since eighteen sixty five. Brilliantly
• 24:54
  Speaker 4: Boring since eighteen sixty five is a service mark of
• 24:57
  Speaker 4: the PNC Financial Service Group, Inc. And C Bank National
• 25:01
  Speaker 4: Association member fdic Erners What's up? You ever walk into
• 25:07
  Speaker 4: a small business and everything just works like the checkout
• 25:11
  Speaker 4: is fast, the receipts are digital, tipping is a breeze,
• 25:15
  Speaker 4: and you're out the door before the line even builds
• 25:17
  Speaker 4: Odds are they're using Square. We love supporting businesses that
• 25:21
  Speaker 4: run on Square because it just feels seamless. Whether it's
• 25:24
  Speaker 4: a local coffee shop, a vendor at a pop up market,
• 25:27
  Speaker 4: or even one of our merch partners. Square makes it
• 25:30
  Speaker 4: easy for them to take payments, manage inventory, and run
• 25:34
  Speaker 4: their business with confidence, all from one simple system. If
• 25:38
  Speaker 4: you're a business owner or even just thinking about launching
• 25:41
  Speaker 4: something soon, Square is hands down one of the best
• 25:44
  Speaker 4: tools out there to help you start, run, and grow.
• 25:47
  Speaker 4: It's not just about payments. It's about giving you time
• 25:50
  Speaker 4: back so you can focus on what matters most Ready.
• 25:53
  Speaker 4: To see how Square can transform your business, visit Square
• 25:57
  Speaker 4: dot com backslash go backslash eyu to learn more that
• 26:01
  Speaker 4: Square dot com backslash, go backslash uyl, don't wait, don't hesitate.
• 26:07
  Speaker 4: Let's Square handle the back end so you can keep
• 26:09
  Speaker 4: pushing your vision forward.
• 26:13
  Speaker 6: Hi, I'm Sherry from Life Source Water. Did you know
• 26:16
  Speaker 6: Bay Area cities add chemicals like chlorine and chloromine to
• 26:20
  Speaker 6: disinfect the tapwater, on top of contaminants they can't handle,
• 26:24
  Speaker 6: like microplastics and forever chemicals. At Life Source, we believe
• 26:28
  Speaker 6: your water should support your family's health. Our whole house
• 26:31
  Speaker 6: water system filters every drop that enters your home, delivering clean,
• 26:35
  Speaker 6: healthy water to every tap, shower and appliance. Family owned
• 26:39
  Speaker 6: for three generations, we build every system, install it and
• 26:43
  Speaker 6: offer factory direct pricing. So end your water worries and
• 26:46
  Speaker 6: upgrade to the essential home appliance you'll love using every day, drink, bathe, cook,
• 26:52
  Speaker 6: and live clean with Life Source Water. Now, we are
• 26:55
  Speaker 6: offering a double dip in savings, free basic installation plus
• 26:59
  Speaker 6: an extra two hundred and fifty dollars off. That's up
• 27:02
  Speaker 6: to twelve hundred dollars in savings. Call our factory at
• 27:05
  Speaker 6: one eight hundred Water ninety nine or visit life sourcewater
• 27:08
  Speaker 6: dot com hurry offer in September thirty warranty limitations apply.
• 27:13
  Speaker 2: Be paying thirty thousand more. Absolutely taxes, So even if
• 27:18
  Speaker 2: you're paying twice as much or even three times as
• 27:22
  Speaker 2: much on an interest rate, it might not equal that
• 27:26
  Speaker 2: at least upfront. And then you always have the opportunity
• 27:30
  Speaker 2: even if you're paying a higher amount to refinance down
• 27:33
  Speaker 2: the line. Absolutely, you always have the opportunity to sell
• 27:37
  Speaker 2: the Propertylute, you always have the opportunity if it's a
• 27:39
  Speaker 2: multi family home to generate income to kind of upset that.
• 27:42
  Speaker 2: So that's something that business owners should definitely be aware
• 27:46
  Speaker 2: of because, like I said, that's a decision that business
• 27:48
  Speaker 2: owners have to make all the time, Like, all right,
• 27:50
  Speaker 2: do I sacrifice, do I show more income and pay
• 27:53
  Speaker 2: more taxes? Or do I just rent an apartment forever
• 27:57
  Speaker 2: because I don't have enough money to just buy a
• 28:00
  Speaker 2: home and cash something that you know, if you if
• 28:03
  Speaker 2: you if you don't, if you don't own a business,
• 28:04
  Speaker 2: it's not a big deal, but not just business owners.
• 28:07
  Speaker 2: But also, like I said, ten nine contractors.
• 28:11
  Speaker 3: Independent contractors are considered self employed in the mortgage world
• 28:15
  Speaker 3: because you're not having any taxes taken out of your
• 28:17
  Speaker 3: your checks. So you're self employed. So you're filing a
• 28:20
  Speaker 3: schedule C, right, and you have to pay taxes. So
• 28:23
  Speaker 3: it's the same thing, you know, But if you're if
• 28:26
  Speaker 3: you're ten ninety nine, you're going to have to I
• 28:29
  Speaker 3: would probably set yourself up as a business so that
• 28:31
  Speaker 3: way you can get better tax benefits of having yourself
• 28:34
  Speaker 3: incorporated or LLC brusu's just having yourself as an ESQ.
• 28:38
  Speaker 3: I mean schedule see filing. But you know, like you said,
• 28:43
  Speaker 3: pick your poison, right you want to pay seven hundred
• 28:46
  Speaker 3: and fifty dollars like you know, or you want to
• 28:50
  Speaker 3: go buy real estate, so you're going to have to
• 28:52
  Speaker 3: pick what's your poison right now. So if you want
• 28:55
  Speaker 3: to have this program gives you the option of having
• 28:57
  Speaker 3: your cake and eating it too, paying less taxis, using
• 29:02
  Speaker 3: the deposits to qualify, and you still buy in real estate.
• 29:05
  Speaker 3: You're just going to have to pay a premium for it.
• 29:07
  Speaker 3: So for me, I think the program is amazing and
• 29:10
  Speaker 3: it and it helps so many entrepreneurs get into the
• 29:13
  Speaker 3: real estate business.
• 29:15
  Speaker 5: Yeah, get you a good CPA.
• 29:16
  Speaker 3: Yeah, get you, get you a great get you a
• 29:18
  Speaker 3: great CPA.
• 29:20
  Speaker 5: That's a fact.
• 29:21
  Speaker 4: So you have you have a question, Jory, No, I
• 29:24
  Speaker 4: wanted to going into one of the things that you
• 29:25
  Speaker 4: mentioned before, and that's the appraisal process. Okay, because obviously
• 29:30
  Speaker 4: I've spoke about this a number of times of how
• 29:33
  Speaker 4: my family was robbed of thousands of dollars doing during
• 29:36
  Speaker 4: the appraisal process. And one of the things in speaking
• 29:39
  Speaker 4: to you, what I came to find out was something
• 29:41
  Speaker 4: called the AMC.
• 29:42
  Speaker 5: Can you explain what that is?
• 29:44
  Speaker 3: So AMC stands for Appraisal Management company. So when the
• 29:49
  Speaker 3: market crashed, the government said it was the bank's fault
• 29:53
  Speaker 3: in the appraises. So they took the control away from
• 29:56
  Speaker 3: the banks and the brokers, the mortgage brokers. They took
• 30:01
  Speaker 3: the appraisal control away from us, that process away from us. Right,
• 30:04
  Speaker 3: we can't have direct contact with an appraiser, so when
• 30:07
  Speaker 3: we do a deal, we go through the appraisal management company.
• 30:11
  Speaker 3: The appraisal management company now picks from a round robbin
• 30:14
  Speaker 3: of appraisers that's approved. But whatever, Linda, they're working with
• 30:18
  Speaker 3: and then they're the ones who have the communication with
• 30:22
  Speaker 3: the appraiser. They set up the order with them. You
• 30:25
  Speaker 3: got to contact this person whatever.
• 30:27
  Speaker 4: Right in my mind, I'm thinking the government did this
• 30:29
  Speaker 4: because it's like if I was an appraiser, I know
• 30:31
  Speaker 4: you worked at the bank, You're telling me, like, yo,
• 30:33
  Speaker 4: just give them a good rate so we can make
• 30:36
  Speaker 4: money on the deals.
• 30:36
  Speaker 5: Is that why?
• 30:37
  Speaker 3: It was kind of like this.
• 30:40
  Speaker 4: Let me tell you how I.
• 30:41
  Speaker 5: Went to tell you the story.
• 30:42
  Speaker 3: Let me tell you how it went. In a wild
• 30:43
  Speaker 3: cowboy days, it would say, Yo, Giovanni, I need this
• 30:47
  Speaker 3: deal to go this eight hundred thousand. I know it's
• 30:50
  Speaker 3: probably on the worth seven, but what can you do?
• 30:53
  Speaker 3: We can make we can pay you extra, and Giovanni
• 30:56
  Speaker 3: will come back with appraiser report of eight hundred thousand dollars.
• 31:00
  Speaker 3: And there was no systems in place back then and
• 31:03
  Speaker 3: no technology like we have now where underwriters were really
• 31:07
  Speaker 3: vetting that appraisal. They would just close on it, right,
• 31:10
  Speaker 3: they would take their words. So the market was being inflated.
• 31:13
  Speaker 3: And what they're saying is true. You know this call
• 31:15
  Speaker 3: was made this bad. We had too much contact. Right,
• 31:18
  Speaker 3: if you're on a praiser and you know I'm sending
• 31:20
  Speaker 3: you a lot of business. Look, if I need you
• 31:22
  Speaker 3: to make this happen, make it happen, and they would
• 31:25
  Speaker 3: because there was really no regulation behind it. Now with
• 31:28
  Speaker 3: the appraisal management company, that's out of the window. You
• 31:31
  Speaker 3: can't even talk to the appraiser. It's illegal for US
• 31:34
  Speaker 3: loan officers to talk to appraisers now, so I don't
• 31:37
  Speaker 3: know who to hell, the appraiser is going to be
• 31:38
  Speaker 3: on a deal until I get the actual report. And
• 31:41
  Speaker 3: even when I get the report, I can't make contact
• 31:44
  Speaker 3: with them. If I want to dispute something, I have questions,
• 31:46
  Speaker 3: I think there's errors. It all has to funnel back
• 31:49
  Speaker 3: through the AMC, and then the AMC goes back to
• 31:52
  Speaker 3: that appraiser to make whatever corrections.
• 31:54
  Speaker 4: And so my thing is like, and I've seen this
• 31:56
  Speaker 4: a lot, is like, I wonder how many people look
• 31:59
  Speaker 4: like us in this management company.
• 32:01
  Speaker 3: Oh, it's slim to none. Because in most cases, right,
• 32:07
  Speaker 3: we need black appraisers. We need we need people that
• 32:11
  Speaker 3: look like us going into our neighborhoods valuate our property
• 32:15
  Speaker 3: because we know the true value of our areas in
• 32:18
  Speaker 3: our neighborhoods. Most most of these folks don't and that's
• 32:21
  Speaker 3: when you see people getting these homes of praise and
• 32:25
  Speaker 3: like your situation, they devalued.
• 32:28
  Speaker 4: You came in, spent ten minutes here, I paid them
• 32:31
  Speaker 4: seven hundred dollars devalue mee. We lost like one hundred
• 32:34
  Speaker 4: thousand on the deal.
• 32:35
  Speaker 3: It's terrible, you know, it's terrible. So if anybody's looking
• 32:38
  Speaker 3: to get into the real estate industry, looking to becoming
• 32:42
  Speaker 3: an appraiser, there's a serious need to become an appraiser,
• 32:47
  Speaker 3: and especially if you're a minority, this could be a
• 32:49
  Speaker 3: good way for you to learn the real estate market
• 32:52
  Speaker 3: because you learn and how to value properties right, and
• 32:56
  Speaker 3: if you're going to invest, what better knowledge to have
• 32:59
  Speaker 3: than and being an appraiser. It pays well, and it
• 33:03
  Speaker 3: pays well ten minutes, ten minutes. But you got to
• 33:05
  Speaker 3: think about though, it doesn't pay that well no more
• 33:07
  Speaker 3: for the appraises, right, because now you have that AMC
• 33:11
  Speaker 3: of the company. So now the AMC has to eat
• 33:13
  Speaker 3: too off that same fee. So now the appraisers actually
• 33:16
  Speaker 3: make less. And that's why you see a lot of
• 33:18
  Speaker 3: sloppy work now, right, because they're not making as much
• 33:21
  Speaker 3: money as they used to. Now, what you see a
• 33:24
  Speaker 3: lot of now they'll make the So there's two there's
• 33:27
  Speaker 3: two appraisal reports. Right, it's either going to come back
• 33:31
  Speaker 3: as is or subject to repairs. Right, So if it
• 33:34
  Speaker 3: comes back as is, I mean the house is fine
• 33:36
  Speaker 3: how it is, right, but it comes back subject to repairs,
• 33:40
  Speaker 3: then whatever the appraiser list on that report that needs
• 33:43
  Speaker 3: to be repaired, it needs to be repaired prior to closing.
• 33:45
  Speaker 3: And then they have to come back out and do
• 33:47
  Speaker 3: a reinspection. That's another trip fee that could be an
• 33:51
  Speaker 3: extra one to fifty to five hundred dollars just depending
• 33:54
  Speaker 3: on the property type and everything like that. So that's
• 33:56
  Speaker 3: how they're making more money. You know what I'm saying.
• 33:59
  Speaker 3: They're making up for that loss is because now praisers
• 34:01
  Speaker 3: are going in and they're looking for cracks, they're looking
• 34:03
  Speaker 3: for mold, they're looking for whatever's out of order, you
• 34:07
  Speaker 3: know what I'm saying, So that way they can put that.
• 34:09
  Speaker 5: Put back on.
• 34:10
  Speaker 4: The appraiser is different from the home inspector. Even though
• 34:14
  Speaker 4: they come in they look at the property. They may say,
• 34:16
  Speaker 4: hey you need a new furnace, Hey that bathroom needs
• 34:19
  Speaker 4: new plumbing.
• 34:20
  Speaker 3: That's different from the home inspection. Absolutely, home inspection. The
• 34:23
  Speaker 3: home inspector is coming in to look at the house,
• 34:26
  Speaker 3: and they're going to see about the mechanics of the
• 34:28
  Speaker 3: house to make sure the roof, the baller, the heat,
• 34:31
  Speaker 3: the plumbing, electrical everything is where it used to be
• 34:34
  Speaker 3: and what they feel like needs repairs and what's the
• 34:36
  Speaker 3: cost to cure those repairs, right, And then they're going
• 34:40
  Speaker 3: to give you probably a thirty to fifty page report
• 34:43
  Speaker 3: with all this information in there right telling you this
• 34:46
  Speaker 3: is wrong, this is wrong, it's wrong. So the home
• 34:48
  Speaker 3: inspector is going to be thorough right. They're not spending
• 34:52
  Speaker 3: ten minutes, they're spending two three hours, you know, depending
• 34:55
  Speaker 3: on the size of the home, and they're looking through everything.
• 34:58
  Speaker 3: But even with a home inspection, you're really not going
• 35:01
  Speaker 3: to know your home until you live in it, you know.
• 35:03
  Speaker 3: But this would give you a good idea of what
• 35:05
  Speaker 3: you're buying, right, So it's very important get a home inspection.
• 35:09
  Speaker 3: And there's a lot of times that I'm starting to
• 35:10
  Speaker 3: see on deals with folks are opting out of home
• 35:13
  Speaker 3: inspections because they think it's a good house or it
• 35:15
  Speaker 3: was just recently renovated. If it's a flip, definitely get
• 35:19
  Speaker 3: a home inspection because these investors are being cheap with
• 35:23
  Speaker 3: their materials and they work. So you need to go
• 35:26
  Speaker 3: in there and double check and have somebody with professional
• 35:29
  Speaker 3: eyes that you don't have to kind of look at
• 35:30
  Speaker 3: this stuff because a lot of them are putting cheap materials.
• 35:34
  Speaker 4: I'm thinking like, yeah, they probably going to bring the
• 35:35
  Speaker 4: cheapest material to be done the fastest, tells the quickest.
• 35:39
  Speaker 3: Absolutely, they trying to turn the burn, you know what
• 35:41
  Speaker 3: I'm saying. So don't don't devalue your home and home inspection,
• 35:48
  Speaker 3: you know what I'm saying. Make sure that you take
• 35:50
  Speaker 3: serious notes. You're looking be there, you know, ask questions,
• 35:55
  Speaker 3: learn about it because if you're going to invest, that's
• 35:58
  Speaker 3: also free not free training, right because you're paying for it,
• 36:02
  Speaker 3: but it's still training if you if you use that information,
• 36:05
  Speaker 3: that you're learning because now they work for you. Now
• 36:08
  Speaker 3: they got to tell you this stuff, right, what's wrong
• 36:09
  Speaker 3: with this? Blah blah blahlah blah. Now you're starting to learn, right.
• 36:13
  Speaker 3: So that's another hack, so to speak. If you're trying
• 36:16
  Speaker 3: to get into real estate and you're buying your first house,
• 36:18
  Speaker 3: take the process serious, learn the entire process, everything that
• 36:23
  Speaker 3: you need to know. So that way when it's time
• 36:24
  Speaker 3: to do more deals. You already have the knowledge. No
• 36:27
  Speaker 3: one can take it from you. You have the blueprint,
• 36:29
  Speaker 3: you have the blue brinds.
• 36:31
  Speaker 2: So you know, one thing that a lesion. We're not
• 36:34
  Speaker 2: just tied to America. We get support from all over
• 36:37
  Speaker 2: the world, like literally, we get tons of support in Canada.
• 36:40
  Speaker 2: Shout out to Toronto, Shout out to Montreal, out to
• 36:43
  Speaker 2: Shout out to Vancouver, Shout out to the whole country
• 36:45
  Speaker 2: in Canada. Shout out to the Caribbean, all the countries
• 36:47
  Speaker 2: in Caribbean. Shouts at dr Shout to pr Shout to Jamaica,
• 36:51
  Speaker 2: Shout out to Antigua.
• 36:52
  Speaker 3: You guys are like number one in all these countries.
• 36:54
  Speaker 4: We got we gotta find.
• 36:55
  Speaker 2: On Shout to the Caribbean. Shots to Monday, London. The
• 36:58
  Speaker 2: UK is a big hub for us. To London, shout
• 37:01
  Speaker 2: out to everybody out there, and shout out to everybody
• 37:03
  Speaker 2: in Africa. We've been doing a lot of stuff in Africa.
• 37:06
  Speaker 2: We're going to go there. Yeah, Shout out to the
• 37:08
  Speaker 2: whole continent in Africa. Shout out to Asia. Shout out
• 37:10
  Speaker 2: that all over the world or every continent. So you know,
• 37:14
  Speaker 2: a lot of most of our continents kind of you know,
• 37:16
  Speaker 2: based around America because that's where we're from and that's
• 37:18
  Speaker 2: where we live. But we want to talk to people
• 37:20
  Speaker 2: and get people information that because you know a lot
• 37:22
  Speaker 2: of people live in especially like the you know, London, Toronto, Jamaica.
• 37:27
  Speaker 2: They have family in America and you know they go
• 37:30
  Speaker 2: back and forth and they might want to invest in America.
• 37:32
  Speaker 2: So there's different programs and things for like international people
• 37:36
  Speaker 2: as well.
• 37:36
  Speaker 3: Right, absolutely, absolutely, So you have what's called foreign national
• 37:40
  Speaker 3: loans where if you're not living here or a US citizen,
• 37:45
  Speaker 3: you still have the ability to get a loan and
• 37:48
  Speaker 3: buy investment properties here in the US. So it's called
• 37:50
  Speaker 3: the foreign national loan, and depending on the lender, you
• 37:53
  Speaker 3: can put down as little as twenty to thirty five
• 37:56
  Speaker 3: percent down payment on these loans. And it's not a
• 37:59
  Speaker 3: real difficul cool process to get approved foreign national. Right,
• 38:04
  Speaker 3: there's only a handful of lenders that will take these
• 38:06
  Speaker 3: type of loans. There's not too many of them. So
• 38:09
  Speaker 3: if you are, you know, overseas and you want to
• 38:12
  Speaker 3: get a foreign national loan, just do a simple Google
• 38:14
  Speaker 3: search and you'll see a bunch of lenders that will
• 38:16
  Speaker 3: come up. They will tell you there are different requirements,
• 38:18
  Speaker 3: but the baseline of it is no credit score requirement
• 38:21
  Speaker 3: because obviously you're not US citizen. Some lenders will want
• 38:27
  Speaker 3: you to have a US bank account and have the
• 38:30
  Speaker 3: money transferred over to the US. Some lenders don't. They'll
• 38:34
  Speaker 3: accept the money coming in from overseas the day of closing,
• 38:37
  Speaker 3: but a lot of them want you to have the
• 38:39
  Speaker 3: money in the US already, So check with the lender
• 38:42
  Speaker 3: for their particular guidelines on what they require. If you're
• 38:47
  Speaker 3: self employed, then you have to get a letter from
• 38:49
  Speaker 3: your account or your CPA just verifying where your income
• 38:52
  Speaker 3: is and how long you've been in business, if a
• 38:54
  Speaker 3: lot of good standing and things of that nature. If
• 38:56
  Speaker 3: you are a W two employee, I'm not sure if
• 38:58
  Speaker 3: they even call it W two them Lloyds over there,
• 39:00
  Speaker 3: but whatever you guys call it. If you work for somebody,
• 39:03
  Speaker 3: then you get a paycheck from someone else, then we
• 39:06
  Speaker 3: have to get a letter also from your employer, just
• 39:09
  Speaker 3: to verify your employment. Some lenders will rub not rubbed,
• 39:15
  Speaker 3: but run like you do a certain country, I forget
• 39:17
  Speaker 3: the name what they call it, and just do make
• 39:19
  Speaker 3: sure you're not on like any terrorist list or anything
• 39:22
  Speaker 3: like that fair enough. Well, you know, got to make
• 39:25
  Speaker 3: sure that you're not, you know, doing nothing crazy out here.
• 39:29
  Speaker 3: But you know, there are options out there for foreign
• 39:32
  Speaker 3: investors to invest here in the United States and buy
• 39:35
  Speaker 3: investment properties. I've helped ton of foreign investors, especially in
• 39:38
  Speaker 3: the Philadelphia market. Like you know, a couple of years ago,
• 39:41
  Speaker 3: everybody in China was coming in to Philly and buying
• 39:43
  Speaker 3: up all the Philly right. Shout out to my guy
• 39:47
  Speaker 3: Malik caught out there in Philly. We did a lot
• 39:49
  Speaker 3: of deals out there together. But shout out to my
• 39:53
  Speaker 3: god real estate coach Carter. But yeah, it's opportunities out
• 39:57
  Speaker 3: there for foreign investors too, that's here in the United States.
• 40:01
  Speaker 3: So COVID slowed it down a little bit, so you know,
• 40:04
  Speaker 3: it's not too many banks like it was prior to
• 40:07
  Speaker 3: COVID that are doing it, but you can still, you know,
• 40:10
  Speaker 3: find good financing out there.
• 40:12
  Speaker 2: What are some of the biggest hurdles that stop people
• 40:14
  Speaker 2: from buying homes credit score? Is it not having enough
• 40:18
  Speaker 2: for the down payment, because that's something that you know
• 40:21
  Speaker 2: a lot of times people. Is it just not having
• 40:22
  Speaker 2: a proper education like what it's.
• 40:24
  Speaker 3: Above, you know, not having a proper education first and foremost.
• 40:29
  Speaker 3: That's the biggest thing I see. People don't they fear
• 40:31
  Speaker 3: what they don't know, right, So most people who don't
• 40:35
  Speaker 3: buy a home, and when you speak to them, they
• 40:37
  Speaker 3: don't know nothing about the process. They don't know nothing
• 40:39
  Speaker 3: about loans, they don't understand interest rates. It's just overwhelming
• 40:42
  Speaker 3: for them. Right, So that's first things. First is the knowledge.
• 40:45
  Speaker 3: Then credit. Credit is probably the second biggest thing. People
• 40:49
  Speaker 3: have bad credit out here, and they need to get
• 40:51
  Speaker 3: worry about fixing their credit and stop spending so much.
• 40:55
  Speaker 3: Then I will probably say cash the capital, you know.
• 40:58
  Speaker 3: I think that's probably the third thing that I see
• 41:00
  Speaker 3: that hold people back, especially in cities like New York.
• 41:04
  Speaker 3: LA was very expensive to buy real estate. You know,
• 41:08
  Speaker 3: a two family here is a million dollars. Right, you've
• 41:12
  Speaker 3: got to talk about you need probably three point five
• 41:14
  Speaker 3: percent plus closing costs. I mean, before you know, you
• 41:17
  Speaker 3: can be close to one hundred k you know that
• 41:19
  Speaker 3: you need to buy a house. So it's a lot
• 41:22
  Speaker 3: that happens. I mean, it's a lot that stops home buyers.
• 41:27
  Speaker 3: But these are the things that I see the top
• 41:30
  Speaker 3: three that stop the lack of education, credit and capital.
• 41:34
  Speaker 4: Yeah, I like what you said, we don't know what
• 41:36
  Speaker 4: we don't know, right, And part of that is the question.
• 41:39
  Speaker 4: And so like, when we're getting into this process, what
• 41:41
  Speaker 4: are some things when we're trying to find the right
• 41:44
  Speaker 4: loan office or the right commercial bank or investment bank.
• 41:48
  Speaker 4: What are the questions that we should be asking before
• 41:50
  Speaker 4: we take that step.
• 41:51
  Speaker 3: When you interview on your loan offices?
• 41:53
  Speaker 5: Right?
• 41:53
  Speaker 3: Oh man, there's tons of questions that you need to
• 41:55
  Speaker 3: ask them. First of all, do they own any property themselves?
• 41:57
  Speaker 5: Right?
• 41:58
  Speaker 3: Are they investing their homeowners themselves?
• 42:01
  Speaker 4: Right?
• 42:01
  Speaker 3: How long have they been in the business? Very important
• 42:03
  Speaker 3: question to me because look, there's nothing wrong with rookie
• 42:06
  Speaker 3: loan officers, right, but they don't have the experience. They
• 42:09
  Speaker 3: don't have the product knowledge yet, they don't know how
• 42:11
  Speaker 3: to maneuver.
• 42:13
  Speaker 5: Right.
• 42:13
  Speaker 3: They're going to be more reactive than proactive because they're
• 42:16
  Speaker 3: learning on the job. So I experience. You know, how
• 42:19
  Speaker 3: many deals are you really closing? How many did you
• 42:22
  Speaker 3: close last month?
• 42:23
  Speaker 5: Right?
• 42:23
  Speaker 3: Just to get an idea of what that person is
• 42:26
  Speaker 3: closing people, are they really truly honestly helping?
• 42:30
  Speaker 4: How much is a season person? How many how many
• 42:32
  Speaker 4: closings that they haven't a season loanovers.
• 42:35
  Speaker 3: I mean, you could be seasoned, it's still you know,
• 42:38
  Speaker 3: not right. So, I mean, if you're a top producer,
• 42:42
  Speaker 3: in my opinion, you closing well over one hundred plus
• 42:45
  Speaker 3: deals a year. You know, if you're a top producing
• 42:47
  Speaker 3: loan officer. But the mega producers are closing a couple
• 42:50
  Speaker 3: hundred loans a year, you know they're they're out here
• 42:54
  Speaker 3: really killing it. So but you know, the average loan
• 42:57
  Speaker 3: officer is probably closing four deals a month somewhere an there,
• 43:02
  Speaker 3: which is not bad. You know, depending on your compensation level,
• 43:05
  Speaker 3: you can still make great a great living closing four
• 43:08
  Speaker 3: or five deals a month. But you know, you want
• 43:10
  Speaker 3: to ask these people these questions. Do they have a team,
• 43:13
  Speaker 3: very important, especially in times right now where everybody's overwhelmed
• 43:16
  Speaker 3: and busy. Are you the only person that they're going
• 43:18
  Speaker 3: to speak to, right? So team is very important. They
• 43:22
  Speaker 3: are they underwriting their loans in house?
• 43:24
  Speaker 5: Right?
• 43:25
  Speaker 3: Is their underwright and being sourced to somewhere else? Or
• 43:28
  Speaker 3: what kind of control do they have? You know, these
• 43:31
  Speaker 3: are all the things that are very important because you
• 43:33
  Speaker 3: want to know that your deal is going to be
• 43:35
  Speaker 3: able to go through the system with no issues.
• 43:37
  Speaker 2: So, speaking of the mortgage industry and working with a
• 43:40
  Speaker 2: mortgage professional. You're a mortgage you're a loan officer, correct,
• 43:43
  Speaker 2: So we haven't had this conversation either. We talk about
• 43:46
  Speaker 2: like investing in real estate, but there's always two sides
• 43:49
  Speaker 2: of the coring, so you can make money actually working
• 43:52
  Speaker 2: in real estate as well. Like you know, we've interviewed
• 43:54
  Speaker 2: Kata Keanu wats we talked about like being a real
• 43:57
  Speaker 2: estate agent or realter. So like how what are the
• 44:02
  Speaker 2: opportunities for people if they want to become like where
• 44:04
  Speaker 2: you are as far as a loan officer? How do
• 44:06
  Speaker 2: you do that? Like you have to go to school
• 44:07
  Speaker 2: for that? Is it like a test that you take?
• 44:09
  Speaker 2: Like do you how do you get hired? Like what's
• 44:11
  Speaker 2: to do?
• 44:12
  Speaker 5: Well?
• 44:12
  Speaker 3: So first and first you have to get license, right,
• 44:15
  Speaker 3: So you have to get licensed. You have to take
• 44:17
  Speaker 3: the safe test and that's I think twenty five hours,
• 44:21
  Speaker 3: which is not a long period of time. It's not
• 44:24
  Speaker 3: a lot of hours, right, you can do that in
• 44:26
  Speaker 3: a week. You can do it online with no problem.
• 44:28
  Speaker 3: Of course you're a couple hundred bucks. Once you pass
• 44:31
  Speaker 3: the class, then you have to take the federal exam.
• 44:34
  Speaker 3: And when you pass the federal exam. Then you have
• 44:36
  Speaker 3: to submit your information to NMLST, you know, National Mortgage
• 44:41
  Speaker 3: Licenses System, that's the acronym. You keep saying. Yeah, actually,
• 44:45
  Speaker 3: and I'm saying that because I'm official telling you I'm
• 44:48
  Speaker 3: a licensed loan officer, like I'm not an Internet guy.
• 44:50
  Speaker 3: I always say this, right, and that's why I started
• 44:52
  Speaker 3: saying my license number one to be compliant. At one
• 44:55
  Speaker 3: point I knew about her. Yeah, I heard on every video,
• 44:59
  Speaker 3: every video. It's like NMLS number five as I almost
• 45:02
  Speaker 3: forgot that.
• 45:05
  Speaker 5: Right.
• 45:06
  Speaker 3: But it's important that once you once you pass, then
• 45:10
  Speaker 3: you submit all your documentation got to get fingerprinted. I mean,
• 45:15
  Speaker 3: we're getting your credit gets looked at. So you can't
• 45:18
  Speaker 3: really have bad credit. If you have any issues on
• 45:20
  Speaker 3: your credit, you have the right explanations of why, if
• 45:22
  Speaker 3: you have outstanding child support and things like that. This
• 45:26
  Speaker 3: is serious. This is not like you. Just when I
• 45:28
  Speaker 3: came into business, there was no licensing. They literally gave
• 45:30
  Speaker 3: me a phone book and said call people. Right, I
• 45:32
  Speaker 3: didn't know a damn thing. But now after the crash,
• 45:36
  Speaker 3: they make people get licensed now, So if you're a
• 45:39
  Speaker 3: licensed loan offic shout out to all the licensed loan offices,
• 45:42
  Speaker 3: by the way, that's how you start to get licensed.
• 45:46
  Speaker 3: But that doesn't mean you're going to get a job,
• 45:48
  Speaker 3: right because most banks right now don't have time to
• 45:53
  Speaker 3: hire and train new loan officers. It's too busy, right,
• 45:57
  Speaker 3: So you have to find either more company, a mortgage broker,
• 46:02
  Speaker 3: or even a big bank right that's willing to take
• 46:04
  Speaker 3: the chance with you and hire you. Or I would
• 46:08
  Speaker 3: recommend anybody looking to get in the business try to
• 46:10
  Speaker 3: join a team, right because if you join the team,
• 46:12
  Speaker 3: like I run a team right around my own division.
• 46:15
  Speaker 3: But I won't hire anybody. No, sorry, not right now,
• 46:19
  Speaker 3: not even not right now. Please don't hit me up
• 46:21
  Speaker 3: on that. You need to hear experience minimum, right, But
• 46:26
  Speaker 3: there are there are people in my position that will
• 46:28
  Speaker 3: hire new people because they may have the capacity to train.
• 46:32
  Speaker 3: I don't have that capacity right now. Unfortunately, at some
• 46:34
  Speaker 3: point I will, but not not today, right. But get
• 46:38
  Speaker 3: on the team so that way you can get that experience,
• 46:40
  Speaker 3: you can get that train and you can mess up
• 46:43
  Speaker 3: and have somebody to guide you and hold your hand.
• 46:45
  Speaker 3: Because there's a lot that goes into originating loan people think,
• 46:49
  Speaker 3: you know, especially with the digital stuff that we have
• 46:51
  Speaker 3: and the information and technology era that we're in. It's
• 46:54
  Speaker 3: so easy to go on these websites and people get
• 46:57
  Speaker 3: a pre qualification letter and they think it's so easy. Right,
• 47:00
  Speaker 3: It's not that easy. It's something these guidelines. If you
• 47:03
  Speaker 3: look at the underwriting guidelines, even from like an FAHA loan, right,
• 47:06
  Speaker 3: the underwriting guidelines is over a thousand pages. There's a
• 47:10
  Speaker 3: lot of information. You know what I'm saying, And we
• 47:12
  Speaker 3: have to be Godeline ghats like, you know what I'm saying, Like,
• 47:15
  Speaker 3: we have to know our guidelines. This is our bible,
• 47:18
  Speaker 3: this is this is how guidelines, this is how we
• 47:21
  Speaker 3: make our living right. So for me, I study these guidelines.
• 47:24
  Speaker 3: I live in these guidelines. They tell you everything you
• 47:27
  Speaker 3: need to do to execute right and and then you
• 47:30
  Speaker 3: have to now be able to articulate that to someone
• 47:33
  Speaker 3: who has no clue. Right. So it's not it's like, what.
• 47:36
  Speaker 5: Are some of the guidelines that you have to memorize?
• 47:39
  Speaker 3: Man, Everything guidelines changed today, all certain things right, like
• 47:45
  Speaker 3: especially in COVID. Right, things are changing rapidly. It seems
• 47:49
  Speaker 3: like almost every other week there's something coming out from
• 47:52
  Speaker 3: the government saying this or that right, especially with self
• 47:55
  Speaker 3: employee borrowers making sure that their businesses operate and they're running.
• 48:00
  Speaker 3: If if you're buying investment properties, they want to make
• 48:03
  Speaker 3: sure now that rent is being collected, especially if you're
• 48:06
  Speaker 3: refinancing and you're using an income to qualify. Right, we
• 48:09
  Speaker 3: got a document, you're receiving rent. Now. There's a lot
• 48:12
  Speaker 3: that's happening, and all that I discussed in the blueprint,
• 48:15
  Speaker 3: by the way, but there's a lot happening in the
• 48:17
  Speaker 3: market right now, and it happens at a rapid pace.
• 48:20
  Speaker 3: We wake up and the guidelines are changed, and then
• 48:23
  Speaker 3: we have to just learn them and adapt, and it
• 48:25
  Speaker 3: affects every loan that's in the pipeline. Sometimes they'll give
• 48:28
  Speaker 3: you like, oh, it's going to be December first or
• 48:30
  Speaker 3: January first, twenty twenty, but sometimes they say effective immediately.
• 48:34
  Speaker 4: I remember we had a conversation. I was reading an
• 48:36
  Speaker 4: article and I think they gave you like a week.
• 48:39
  Speaker 3: I think it was September. It was for the refinance
• 48:41
  Speaker 3: feed that they added the refinance fee, and the whole
• 48:45
  Speaker 3: industry got pissed off, Like the entire mortgage industry was
• 48:48
  Speaker 3: pissed right, And then they they delayed it to December first.
• 48:53
  Speaker 5: What did that?
• 48:54
  Speaker 3: So they added so Fannie Mae and Freddie Matt came
• 48:57
  Speaker 3: out I think this was August, that they're taxing lenders now,
• 49:01
  Speaker 3: basically saying, hey, y'all doing a lot of refinances. Rate
• 49:04
  Speaker 3: is low. We need to make some of my stimulus
• 49:06
  Speaker 3: to basically, and we're going to tax y'all a half
• 49:09
  Speaker 3: a point for every refud that you're going to sell
• 49:12
  Speaker 3: to Fandy made and Freddie Mack effective immediately. So that
• 49:15
  Speaker 3: means that you're going to sell to them, right, So
• 49:18
  Speaker 3: they basically said, we want our money, and you have.
• 49:21
  Speaker 3: You could have a pipeline of a thousand loans, two
• 49:24
  Speaker 3: thousand loans in your pipeline right now. You got to
• 49:27
  Speaker 3: pay a half a point per loan. That could be
• 49:29
  Speaker 3: twenty thirty forty fifty million dollars worth of loans one
• 49:33
  Speaker 3: hundred million dollars a long times a half a point
• 49:36
  Speaker 3: that you didn't expect. They're taking your revenue, right, but
• 49:40
  Speaker 3: they're not going to take the lenders revenue.
• 49:42
  Speaker 1: I know.
• 49:43
  Speaker 3: Is it's gonna take your revenue. They're gonna get charged
• 49:46
  Speaker 3: charge you more. We're gonna we're gonna charge you more
• 49:48
  Speaker 3: because we're not gonna pay for that, right And and
• 49:51
  Speaker 3: anytime things like this happened, it gets passed on to
• 49:53
  Speaker 3: the consumer, like the lenders are not going to pay
• 49:56
  Speaker 3: for it, you know. So the industry went crazy and
• 50:00
  Speaker 3: they decided to delay it to December first. So people
• 50:04
  Speaker 3: who are originating refinances right now, that half a point
• 50:07
  Speaker 3: is already built into your rate sheets already, you know
• 50:10
  Speaker 3: what I'm saying. Which in town made interest rates for
• 50:12
  Speaker 3: refinances depending on which Linda, go up by eight to
• 50:17
  Speaker 3: three eighths of a point over the past week. Because
• 50:21
  Speaker 3: now it's loans that's sold by a certain period of time,
• 50:24
  Speaker 3: so we have to cut. Once loans are closed, it
• 50:27
  Speaker 3: takes a while for it to get sold to the agencies,
• 50:30
  Speaker 3: you know what I'm saying. So you got to price
• 50:32
  Speaker 3: that in now because you don't know when they're gonna
• 50:33
  Speaker 3: buy it from you.
• 50:34
  Speaker 1: You know what I'm saying, Coach, The energy out there
• 50:37
  Speaker 1: felt different. What changed for the team today?
• 50:40
  Speaker 3: It was the new game day scratches from the California
• 50:42
  Speaker 3: Lottery players everything. Those games sent the team's energy through
• 50:45
  Speaker 3: the roof.
• 50:46
  Speaker 6: Are you saying it was the off field play that
• 50:48
  Speaker 6: made the difference.
• 50:48
  Speaker 3: On the field, A little play makes your day, and
• 50:51
  Speaker 3: today it made the game.
• 50:52
  Speaker 5: That's all for now.
• 50:53
  Speaker 6: Coach one more question play than new Los Angeles Chargers,
• 50:56
  Speaker 6: San Francisco forty nine Ers and Los Angeles Rams Scratchers
• 50:59
  Speaker 6: from at a California lottery. A little play can make
• 51:02
  Speaker 6: your day face play responsibly. Must be eighteen years or
• 51:05
  Speaker 6: older to purchase play or claim