Latest / Earn Your Leisure / How to Buy a Home in 2026 w/ MG The Mortgage Guy

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How to Buy a Home in 2026 w/ MG The Mortgage Guy · Earn Your Leisure

0:00
Speaker 1: Earners. What's up.
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1:38
Speaker 1: Man, what's God? What's what's good? Fellows? And my brother?
1:43
Speaker 1: How you doing?
1:43
Speaker 3: Man?
1:44
Speaker 1: We are blasted? Thank God for another day? What's pod? Brother?
1:49
Speaker 1: Don't be mad at me?
1:50
Speaker 2: Man, I meant to text you that that TSM thing. Man,
1:52
Speaker 2: It's just I'm looking in.
1:54
Speaker 4: The group text right now and I'm starting that group
1:56
Speaker 4: text drives hell right.
1:58
Speaker 1: Yeah, I just saw that.
2:00
Speaker 4: It was the damn that shit is crazy, bro.
2:04
Speaker 1: But I have called you.
2:05
Speaker 4: I have called you, so shout out to Troy. I'm
2:08
Speaker 4: on my Troy Ish for twenty twenty six. Stay low,
2:11
Speaker 4: keep firing. You might not see me after Market, Mondays,
2:15
Speaker 4: Tonight Live or anything.
2:16
Speaker 1: For the rest of it.
2:17
Speaker 4: You while I do it, dive and get things right
2:21
Speaker 4: on my end. So shout out to Troy. I am
2:24
Speaker 4: taking a page out of his book. For twenty twenty
2:27
Speaker 4: six and maybe for the near future, I might post
2:30
Speaker 4: once every other week and it might just be some
2:33
Speaker 4: fly pitches of me and my father.
2:34
Speaker 1: You still got never know.
2:36
Speaker 5: But just the personal time.
2:38
Speaker 1: Keep to yourself.
2:39
Speaker 4: Brother, I'm just gonna keep everything to myself.
2:44
Speaker 1: Stand out. That's a fact, my god, welcome back to
2:48
Speaker 1: the show. Look, seven straight summers.
2:51
Speaker 4: Critics might not admit it, but nobody of Financial Licy
2:54
Speaker 4: did it quite like we did it. We did it
2:57
Speaker 4: like seven straight summers. There's nothing no more can tell
3:00
Speaker 4: me what I want to get, No foolishness in twenty
3:03
Speaker 4: twenty six from nobody.
3:06
Speaker 1: Thank you. It's seven straight summers. Get your numbers up.
3:09
Speaker 1: That's a fact. That's a fact.
3:11
Speaker 3: So Matt Garland, licensed real estate professional, loan officer. End
3:16
Speaker 3: of the show has been on every platform that we've
3:20
Speaker 3: ever had investmentest earned Aalsia market. Mondays, I don't think
3:25
Speaker 3: you've been on blackout. That's probably only your we go'll
3:28
Speaker 3: keep back with a blackout.
3:29
Speaker 1: I got some.
3:33
Speaker 4: I got some inch to talk about for blackout that
3:36
Speaker 4: other time you see me on the internet this year blackout.
3:39
Speaker 1: Let's set it up. So let's talk about real estate.
3:43
Speaker 3: We haven't talked about real estate in a while, okay,
3:46
Speaker 3: so we talk about stocks all time. Is it a
3:48
Speaker 3: good time of bostocks? Is a bad time of boss stocks?
3:50
Speaker 3: So twenty twenty six we hear right now? Will home
3:55
Speaker 3: prices drop in twenty twenty six?
3:58
Speaker 4: M good question in my professional opinion, No, there's not
4:07
Speaker 4: enough supply out there or inventory out there for home
4:13
Speaker 4: prices to really crash like the Internet is telling you. Look,
4:18
Speaker 4: a crash is unlikely, right, So twenty twenty six, I
4:21
Speaker 4: believe it's going to be a flat year. Existing home
4:26
Speaker 4: sales right now are still at a three low territory
4:29
Speaker 4: the national medium home price in twenty twenty five, it's
4:34
Speaker 4: still up year of a year, one point seven percent
4:37
Speaker 4: year of a year. It's slow growth. But if you
4:40
Speaker 4: look at the historic growth of home appreciation, if you
4:45
Speaker 4: look back like sixty five years, homes jimmy appreciate around
4:49
Speaker 4: three percent on average. Right what we saw during the
4:54
Speaker 4: pandemic was a unicorn years when homes are appreciating twenty
4:58
Speaker 4: plus percent. But nationally where we have one point seven
5:03
Speaker 4: on average is still appreciation and it's compounded. Everybody type
5:08
Speaker 4: in chat compounded. That's the beautiful thing about investing, right,
5:12
Speaker 4: Everything compounds, So appreciation, whether it's slow growth, whether it's flat,
5:19
Speaker 4: whether it's skyrocketing, you still got to account for the
5:23
Speaker 4: other years prior to it, right. And the people who
5:26
Speaker 4: are in the market, meaning they own real estate, those
5:30
Speaker 4: are the ones who are going to win. And the
5:31
Speaker 4: people who are going to sit on the sidelines and
5:34
Speaker 4: try to double dutch their way into you know, you know,
5:37
Speaker 4: double dutch right, everybody from the hood. When you kind
5:39
Speaker 4: of like, you know what I'm saying, one foot in,
5:41
Speaker 4: one foot out, you double dutch in it, right, you
5:44
Speaker 4: folks who are going to be the ones who are
5:46
Speaker 4: going to lose out on this appreciation and lose out
5:48
Speaker 4: on this potential to change your net worth. So I
5:53
Speaker 4: would humbly say, I don't think home prices are going
5:56
Speaker 4: to drop. I don't think there's going to be a crash.
5:57
Speaker 4: I'm kind of like a broken record when it comes
5:59
Speaker 4: to the South. Jack and I still have been on
6:01
Speaker 4: this wrong.
6:03
Speaker 1: I've been saying this for five years, six years. These
6:07
Speaker 1: are facts, MG.
6:07
Speaker 2: And when we talk about investing, we always talk about
6:09
Speaker 2: callous events. There's a couple of things that are coming
6:12
Speaker 2: up this year. We're getting a new fetch here. I
6:13
Speaker 2: know you were excited about this two hundred billion dollar
6:17
Speaker 2: mortgage bonds thing that Trump is talking about. All that's
6:20
Speaker 2: going to affect interest rates were down?
6:23
Speaker 1: Here was it?
6:24
Speaker 2: Today's the nineteenth at six percent. How do you see
6:28
Speaker 2: interest rates heading into the rest of twenty twenty six?
6:32
Speaker 4: Man, I love anytime I hear the government talking about
6:37
Speaker 4: buying bonds or buying treasuries, which not for nothing since
6:42
Speaker 4: December of twenty twenty five, with a lot of people
6:45
Speaker 4: don't even realize is that the fans have already started
6:50
Speaker 4: buying treasuries again. They quit quantitative tightening back in December,
6:57
Speaker 4: and they not calling it q E anymore. With the easing,
7:00
Speaker 4: It's like I like to call a q E lte
7:02
Speaker 4: what they're doing right now, because you remember during pandemic
7:06
Speaker 4: they were buying trillions dollars of billions of dollars worth
7:09
Speaker 4: of bonds and that's why we saw this significant drop
7:12
Speaker 4: and interest rates the way we did. But the FATS
7:15
Speaker 4: is already buying treasuries right now since December, and when
7:20
Speaker 4: Trump came out and said that he wants Fannie May
7:23
Speaker 4: to buy two hundred billion dollars worth of bonds. That
7:26
Speaker 4: hasn't happened yet. But if you add that on top
7:30
Speaker 4: of what the Fed is already doing, I think twenty
7:32
Speaker 4: twenty six is going to be a great year for
7:35
Speaker 4: interest rates. You know, rates hit a three and a
7:38
Speaker 4: half year low recently. They're right around six percent right now,
7:42
Speaker 4: but you can definitely get if you're looking at a
7:44
Speaker 4: thirty year mortgage for a primary residence, you can definitely
7:47
Speaker 4: get in the high fives, mid fives, just depending on
7:51
Speaker 4: the product, the program, and your credit score. So rates
7:54
Speaker 4: are definitely lower than what they were a year ago.
7:59
Speaker 4: And if you look at refinance applications, refinance applications is
8:03
Speaker 4: up like one hundred and twenty percent. December home sales,
8:08
Speaker 4: you know, one of the best numbers of twenty twenty
8:11
Speaker 4: five was in December for the amount of homes that sold.
8:14
Speaker 4: So with rates coming down and Trump keep talking about
8:18
Speaker 4: the housing market, man, I love it. Anytime he's talking
8:21
Speaker 4: about the housing market, man, I get a rush because
8:25
Speaker 4: I already know it's just a matter of time before
8:28
Speaker 4: the floodgates open, and there's going to be a lot
8:31
Speaker 4: of buyers that are going to hit the market once
8:33
Speaker 4: they start seeing rates in that mid low fives on
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Speaker 4: a regular basis, and that's just going to bring a
8:38
Speaker 4: lot more competition out there. So I think rates by
8:41
Speaker 4: this time next year, by twenty twenty seven, we might
8:45
Speaker 4: be in the high fours low fives.
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Speaker 1: Really beautiful thing.
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Speaker 5: Okay, how much do you think appreciation what happened in houses?
8:53
Speaker 5: And then for anyone who's new tonight and maybe they
8:56
Speaker 5: haven't heard you speak, that's now a perfect time time
9:00
Speaker 5: to buy, and can you talk to them about how
9:03
Speaker 5: important it is it is to not miss out on
9:05
Speaker 5: this opportunity because the prices of homes have gone up
9:08
Speaker 5: so much in the last five or six years.
9:10
Speaker 4: So that's a good question. I think there's always an
9:12
Speaker 4: opportunity cost for anything that you do.
9:15
Speaker 1: Right.
9:16
Speaker 4: A good friend of ours hit me up tonight, was
9:18
Speaker 4: telling me he just got an offer in the house
9:20
Speaker 4: that he's not even trying to sell for a million
9:23
Speaker 4: dollars more than.
9:24
Speaker 1: What he paid for two years ago. Right, that's funny.
9:28
Speaker 1: Told Nicole, you.
9:30
Speaker 4: Shout out to the good friend, right, he called you too.
9:36
Speaker 1: Yo, distribling friend is.
9:38
Speaker 4: Making his rounds and calling the experts.
9:40
Speaker 1: You know what I'm saying.
9:42
Speaker 4: But like, and guys, I'm glad and this I didn't
9:45
Speaker 4: know he called y'all right, But that's just what's happening.
9:49
Speaker 4: He has time in the market and people are out
9:53
Speaker 4: there wanting to buy. And we're not talking about, you know,
9:55
Speaker 4: a small house. We're talking about, you know, a multi
9:58
Speaker 4: million dollar home. So if folks are new to me,
10:03
Speaker 4: please understand there's no better time to buy real estate
10:07
Speaker 4: than when you can afford to buy it. I don't
10:10
Speaker 4: care what the market is doing. You got to look
10:12
Speaker 4: at your individual goals right, look at your credit, look
10:16
Speaker 4: at your assets, look at your income, your job security
10:19
Speaker 4: if you're self employed, look at your business, look at
10:22
Speaker 4: your net if you're self employed, to see if you
10:24
Speaker 4: can really afford it. Because homes are not just your
10:28
Speaker 4: mortgage payment. You have expenses that come with maintaining that house.
10:32
Speaker 4: And especially the way taxes and insurance are increasing rapidly
10:36
Speaker 4: across America, it's not about what that payment is for
10:39
Speaker 4: your first year. You got to be looking at five
10:41
Speaker 4: years down the road. So if you can afford real estate,
10:45
Speaker 4: then I believe absolutely, you should go ahead and buy,
10:49
Speaker 4: but buy smart, right stop buying at market prices, stop
10:53
Speaker 4: buying at these retail prices. You can look on Zilo
10:56
Speaker 4: and MLS and work with relators, but you got to
10:58
Speaker 4: learn the art of negotiation. Right now, the ball is
11:01
Speaker 4: in your court as a buyer, but that is going
11:04
Speaker 4: to be short lived if these rates go down, because
11:07
Speaker 4: as these rates go down, it's going to bring more
11:09
Speaker 4: buyers into the market, which is going to create bidding wars.
11:13
Speaker 4: And I don't want to hear nobody in the comments
11:15
Speaker 4: talking about, oh he's crazy. There ain't gonna be no
11:17
Speaker 4: benning wars. You act some rotors in some of these
11:19
Speaker 4: markets today, they still have bidding wars happening and they
11:22
Speaker 4: haven't dropped down over the past couple of years.
11:24
Speaker 1: Now.
11:25
Speaker 4: Every market is different, every market is local. But you know,
11:28
Speaker 4: I definitely think people should definitely buy if you can
11:31
Speaker 4: afford to buy.
11:33
Speaker 3: Real estate is fastly becoming a luxury item. The average
11:41
Speaker 3: home first time home buyers in their forties.
11:44
Speaker 1: But the first time ever.
11:47
Speaker 3: Less and less people are buying home can afford to
11:50
Speaker 3: buy a home. So okay for the people that said okay,
11:53
Speaker 3: I understand real estate's an investment in Da da DA,
11:56
Speaker 3: You know, but how can you how can you buy
11:59
Speaker 3: a home? How can the average person buy a home
12:04
Speaker 3: in today's economy? Like, what are some programs? What are
12:08
Speaker 3: some tips, what are some hacks? What is some advice
12:10
Speaker 3: that you would give somebody that just feels defeated in
12:15
Speaker 3: the marketplace?
12:18
Speaker 4: Good question if you feel defeated and you don't know
12:23
Speaker 4: if you can afford to buy the home, because let's
12:25
Speaker 4: face it, affordability is definitely an issue in most cases.
12:30
Speaker 4: But I'm gonna be real with you, guys. I've been
12:32
Speaker 4: doing this for twenty three years. Twenty twenty six makes
12:35
Speaker 4: twenty three years. I've been in the mortgage business. I'm
12:38
Speaker 4: not just a content creator. I am a licensed professional.
12:41
Speaker 4: Allow me to reintroduce myself Matt Garland, and I'm a
12:44
Speaker 4: less number five eight seven zero zero, better known as
12:47
Speaker 4: MG the Mortgage Guy. I've been doing this for a
12:49
Speaker 4: long time. This is my Jordan year, and since I've
12:52
Speaker 4: been in this game, people couldn't afford the house. There's
12:56
Speaker 4: always been an affordability issue, just depending on where you
12:58
Speaker 4: lived and where your income. I think where people gotta focus.
13:02
Speaker 4: If you can't afford to buy a house right now.
13:04
Speaker 4: That's okay, learn how the trade and watch market mondays
13:10
Speaker 4: exacting me, and learn how to create another source of
13:14
Speaker 4: income like you guys were talking about all these great
13:17
Speaker 4: stocks earlier. Right, let's talk MU, right because Troy hit
13:21
Speaker 4: me a couple of weeks ago about MU. And I'm
13:23
Speaker 4: gonna just keep very transparent with everybody here tonight. We
13:27
Speaker 4: have how many people and most fifty five hundred people
13:29
Speaker 4: watching us live right now. When I looked at the
13:32
Speaker 4: contract price, I kind of took a step back. I said,
13:35
Speaker 4: only smokes, this thing is expensive, and I think it
13:38
Speaker 4: was at like two sixty at that moment. Troy and
13:42
Speaker 4: I texted her, I say, yo, bro, I got a
13:44
Speaker 4: lot going on. I don't know if I want to
13:45
Speaker 4: buy a couple contracts of this right now. But what
13:47
Speaker 4: I said to myself, I said, you know what, Matt,
13:50
Speaker 4: scare money, don't make money, Let me at least put
13:52
Speaker 4: it in the stock. Let me not buy some contracts
13:55
Speaker 4: because this is a long term play. So I'll start
13:58
Speaker 4: feeding my long term fit. And I put a couple
14:02
Speaker 4: dollars into it so that way I can have time
14:05
Speaker 4: in the market. Even though I didn't go for the
14:07
Speaker 4: options I went for the stock and fed my long
14:11
Speaker 4: term portfolio. That one stock right now is up twenty
14:15
Speaker 4: nine percent since I purchased it, and I have some
14:18
Speaker 4: gains right now. So if you're someone who cannot afford
14:21
Speaker 4: a home and maybe you have ten thousand, you have fifteen,
14:25
Speaker 4: you have twenty thousand. You have shows like Market Monday
14:28
Speaker 4: out here that's teaching you every single week for free
14:32
Speaker 4: and giving you plays and things that you can now
14:37
Speaker 4: go ahead and research and now you can make extra money.
14:41
Speaker 4: Right So that's for that crowd. For the folks who
14:44
Speaker 4: don't have the money, who may have limited savings, you
14:47
Speaker 4: have to learn how to invest and pick up this
14:49
Speaker 4: skill set. Because even for myself, y'all, and I'm being
14:52
Speaker 4: very transparent with y'all, when I saw that, I say,
14:55
Speaker 4: you know what, Troy, this is my year when I'm
14:58
Speaker 4: going to learn this game like I know real estate,
15:01
Speaker 4: and by this time next year, I'm going to beat
15:04
Speaker 4: the SMP by landslide. I even told y'all when I
15:07
Speaker 4: came on this backstage, like this is my year to
15:09
Speaker 4: beat the SMP by landslide. Because I am a believer
15:13
Speaker 4: in this, and I'm a believer in y'all, teaching right,
15:15
Speaker 4: So that's number one with shard learn how to learn
15:17
Speaker 4: a skill set to make more money. Now, if you
15:20
Speaker 4: are someone who can buy a house, but you feel
15:24
Speaker 4: like it's still not affordable and you might not want
15:27
Speaker 4: to be the person who wants to house hack your
15:29
Speaker 4: way to wealth and do the four three two one
15:31
Speaker 4: strategy or buy multifamilies and things like that. Well, the
15:37
Speaker 4: the zonning laws are changing nationwide where many cities and
15:44
Speaker 4: states are now allowing not just for one ADU. A ADU,
15:48
Speaker 4: for those who don't know, is a necessory dwelling unit
15:51
Speaker 4: is basically like a tiny home in your house on
15:54
Speaker 4: your house, on your property right. So many of us
15:57
Speaker 4: live in these states where even New York approve where
16:00
Speaker 4: you can have an ADU in your backyard or convert
16:03
Speaker 4: your basement into an ADU right because they understand affordability
16:07
Speaker 4: is an issue. These states have these options to where
16:12
Speaker 4: you can have ADUs. But Fanny may just came out
16:16
Speaker 4: a couple of weeks ago and now they have expanded
16:20
Speaker 4: their ADU rules which allows you now and they will
16:24
Speaker 4: give you the money for rehab as well, where you
16:27
Speaker 4: can now have a single family unit and put up
16:30
Speaker 4: to two ADUs on that property right, and Fanny May
16:37
Speaker 4: will allow you to use one of the adu's rent
16:40
Speaker 4: at least thirty percent of that rent to allow you
16:43
Speaker 4: to qualify for the mortgage as well. So if you're
16:47
Speaker 4: buying a primary residence and you have the capability in
16:51
Speaker 4: the town, allows you to have an ADU, whether it's
16:54
Speaker 4: a detached garage, attached garage, a basement, you can build
16:59
Speaker 4: it on your pro This is a great way for
17:02
Speaker 4: someone who probably can't afford to live on their own
17:06
Speaker 4: or afford that mortgage one hundred percent to now supplement
17:09
Speaker 4: their income on a single family And if you are
17:12
Speaker 4: someone who lives in an area where there's a lot
17:15
Speaker 4: of duplexes, fanny May allows you to now put up
17:19
Speaker 4: to two eighty us on that duplex as well, as
17:22
Speaker 4: long as you don't exceed four tonal units on the property.
17:27
Speaker 4: So what we're starting to see on the mortgage side,
17:30
Speaker 4: mortgage guidelines are now starting to catch up with the
17:33
Speaker 4: times because they've realized Fanning made Freddie mac FHFA. They've
17:39
Speaker 4: realized that the times are changing and we have to
17:43
Speaker 4: make things happen for the consumer in today's twenty twenty
17:46
Speaker 4: six markets. So to me, I think this is a
17:48
Speaker 4: home run and you can get one hundred percent of
17:50
Speaker 4: your rehab course. This is a game changer right here.
17:54
Speaker 3: Well, let me let me just follo up with if
17:55
Speaker 3: I can't, because what do you think about from a
17:58
Speaker 3: standpoint of a group buying as far as like you
18:03
Speaker 3: actually you you deal with people that get mortgages, right,
18:07
Speaker 3: So I'm interested to see your perspective as far as
18:08
Speaker 3: I'm assuming a lot of your clients are black, because
18:12
Speaker 3: I'll never forget. In our neighborhood, it was a house
18:16
Speaker 3: a Mexican family moved in years ago, and it was
18:20
Speaker 3: a joke at first because it was like eight cars
18:22
Speaker 3: in the in the in the driveway. But then every
18:25
Speaker 3: year the house got bigger and then eventually there was
18:29
Speaker 3: there wasn't as many cars.
18:31
Speaker 1: So hm other communities by.
18:35
Speaker 3: Real estate in tandem like and then they live in
18:40
Speaker 3: it together and then they might refine the answer, get
18:44
Speaker 3: on their feet and then they I don't really see
18:46
Speaker 3: too many people in our community do that. So is
18:50
Speaker 3: that something that I think needs to at least be
18:54
Speaker 3: thought about. And another thing that needs to be thought
18:56
Speaker 3: about as well is the encouragement of marriage.
19:01
Speaker 1: If anythink about it.
19:03
Speaker 3: Marriage is something a lot of people think, like you,
19:06
Speaker 3: if you don't have money, you can't afford to be married.
19:08
Speaker 1: It's actually the exact opposite.
19:09
Speaker 3: If you're on the lower economic spectrum, that's like one
19:14
Speaker 3: of the first things you should do because that's actually
19:16
Speaker 3: going to help your situation from an economic standpoints. Two
19:18
Speaker 3: incomes as opposed to one, like the less money you have,
19:22
Speaker 3: that should be the more reason why you're actually getting married.
19:25
Speaker 1: Facts.
19:26
Speaker 3: But you see this, So what do you think from
19:29
Speaker 3: just from that social construct?
19:33
Speaker 4: Man, I think it's Look, if we look at Hispanic
19:37
Speaker 4: brothers and sisters, they've been doing this for decades.
19:39
Speaker 1: This is nothing right.
19:42
Speaker 4: This is something that's been happening all over New York
19:45
Speaker 4: where we're from. I love it personally. It gives you
19:49
Speaker 4: the opportunity to have group economics, right. It's just another
19:54
Speaker 4: form of it.
19:55
Speaker 1: Now.
19:56
Speaker 4: Obviously, you got to have your paperwork together, you have
20:01
Speaker 4: your agreements, you know, having an attorney kind of write
20:03
Speaker 4: something up and make sure that you're protecting your interests
20:08
Speaker 4: as well. But we're starting to see more co buying
20:12
Speaker 4: that's happening, especially if you can get a duplex, you know,
20:16
Speaker 4: you have basically two families and two households are putting
20:20
Speaker 4: their money together and now they're in the duplex and
20:24
Speaker 4: each has one side, right, So I love it, Rashard.
20:29
Speaker 4: I think it's something that we're going to continue to
20:31
Speaker 4: see a trend. I'm starting to see a lot more
20:34
Speaker 4: marketing around that, like where we're starting to have more
20:38
Speaker 4: like family compounds, and I'm starting to see more listings
20:43
Speaker 4: being sold like that. Shout out to Boosy too. I
20:45
Speaker 4: know Boosi has a family compound. He brought a couple
20:47
Speaker 4: of acres and now he's building like a whole neighborhood
20:49
Speaker 4: just for him and his kids and his family. But
20:52
Speaker 4: even if you see just regular houses, I've seen a
20:55
Speaker 4: lot on TikTok just in Florida, like a multi generational living, right,
21:00
Speaker 4: Like that's just becoming a thing because it's just more
21:02
Speaker 4: affordable for everyone to live under the same roof. Because look,
21:08
Speaker 4: you said earlier, Rashard, that housing is a luxury, I
21:12
Speaker 4: think the opposite is a necessity because if you don't
21:14
Speaker 4: have a home, or if you don't rent somewhere where,
21:18
Speaker 4: you're gonna be homeless. Right, So it's like home is
21:22
Speaker 4: a luxury, correct, correct, correct, But being I own to
21:26
Speaker 4: Being a homeowner is definitely a luxury, but I think
21:29
Speaker 4: it's also a necessity in my opinion, right because I'm
21:34
Speaker 4: just an advocate of ownership, just me personally, and I
21:39
Speaker 4: encourage people to buy by smart and if co ownership
21:45
Speaker 4: multi generational living situations works for you in yours, then
21:50
Speaker 4: I am one hundred percent with it, as long as
21:54
Speaker 4: you got your paperwork.
21:55
Speaker 1: Together, because Indian Indians do that a lot.
21:58
Speaker 4: Also, the Indians do it a lot in Queen's too,
22:03
Speaker 4: And like you said, it'd be like a whole three
22:05
Speaker 4: four families living in a one single family, four or
22:08
Speaker 4: five bedroom house and they chopped the whole house up
22:11
Speaker 4: and they stack their money, then they help the other
22:14
Speaker 4: person get the other house, and then it just continues
22:16
Speaker 4: the cycle, and you look up five years everybody is
22:19
Speaker 4: a homeowner, right. I just think in our community we
22:23
Speaker 4: have too much ego and too much pride and we
22:26
Speaker 4: need to cut that. We need to leave that back
22:28
Speaker 4: in twenty twenty five and be smart about buying real estate.
22:33
Speaker 1: MG.
22:34
Speaker 2: Something happened last week I would love to get your
22:36
Speaker 2: opinion on. We saw the administration put a ban on
22:39
Speaker 2: large institutional investors from buying single family homes. I want
22:42
Speaker 2: to know your thoughts, good, bad, and different. What does
22:45
Speaker 2: that mean for pricing, what does it mean for inventory?
22:48
Speaker 2: Just your thoughts around it.
22:51
Speaker 4: They talking about it, but nothing has happened yet. I
22:55
Speaker 4: think if you really look at institutional investors, and when
22:59
Speaker 4: I'm saying institutional investors, I'm saying folks who own a
23:03
Speaker 4: thousand plus units, that's only one percent of the buyer pool, right,
23:07
Speaker 4: I think everybody, let's call a space to space, right,
23:09
Speaker 4: And folks probably may't going to like what I'm about
23:12
Speaker 4: to say right now, but like, if you look at
23:17
Speaker 4: institutional vestor, it's a small piece of the verall pot
23:21
Speaker 4: of what's being purchased right now. In certain states like
23:25
Speaker 4: Atlanta and sunbelt states like Arizona, things like that, you
23:29
Speaker 4: might have a higher population, you know, certain parts of Florida,
23:33
Speaker 4: a higher population of institutional investors buying up real estate.
23:39
Speaker 4: But if you look at the grand scheme of things,
23:42
Speaker 4: there are more mom and pop investors buying investment properties
23:46
Speaker 4: than there are institutional vestors. And for me, I'm curious
23:50
Speaker 4: to see how they would regulate that or what's going
23:53
Speaker 4: to be the government's definition of institutional investors. Me personally,
23:59
Speaker 4: I think these institutional vestors are smart and they're going
24:04
Speaker 4: to find a loophole and they're still going to buy.
24:07
Speaker 4: So I don't think it's going to stop anything. It
24:10
Speaker 4: might slow down until they figure out all the mechanics
24:13
Speaker 4: of how to get around it, but I don't think
24:16
Speaker 4: it's going to stop anything. I think it's good for
24:19
Speaker 4: the press, and I think it's good for you know,
24:21
Speaker 4: trying to get votes, and it's a short term. I
24:26
Speaker 4: think it's good market manipulation too. At the same time,
24:29
Speaker 4: I mean, I think we got to pay attention to
24:31
Speaker 4: that because who are these institutional vestors. They're the ones
24:35
Speaker 4: who are putting their the biggest donors too at the
24:37
Speaker 4: same time, So you think, guys, let's be real here,
24:41
Speaker 4: do you think the money is going to let let
24:44
Speaker 4: anybody stop them from getting money? Like that's going to
24:48
Speaker 4: hurt folks politically when it comes to raising funds. Right,
24:52
Speaker 4: These are the masters of the universe for crying out loud.
24:55
Speaker 4: So like, you got to really look at what's really happening.
24:58
Speaker 4: And I don't think it it's really going to do much.
25:02
Speaker 4: I think, if anything, once you start having that level
25:04
Speaker 4: of government intervention, there's nothing stopping them from trying to
25:08
Speaker 4: stop the everyday mom and pop like us from buying homes.
25:11
Speaker 4: What if they come back and say, well, if you
25:13
Speaker 4: buy over fifty units, you are now institutional.
25:17
Speaker 1: Vestor or government.
25:18
Speaker 4: Now we're all screwed because everybody wants to well, not
25:22
Speaker 4: going to say everybody, but most people. As you start
25:24
Speaker 4: growing and growing, you want to continue to grow and
25:26
Speaker 4: grow and scale.
25:27
Speaker 1: Why not? Right?
25:28
Speaker 4: So me personally, I want to see how that plays out.
25:34
Speaker 4: But right now it's just a rant on social media.
25:39
Speaker 5: Listen, I never heard you talk about this compound and
25:42
Speaker 5: generational multifamily house play, right, how do you structure Let's say,
25:48
Speaker 5: I want about compound for me Xander, my mom, dad, cousins.
25:52
Speaker 5: In terms of financing, how do you structure that?
25:55
Speaker 4: Good question? Good question? So first, first things first, you
26:00
Speaker 4: will have to get a First of all, you have
26:03
Speaker 4: to find the land that can fulfill that.
26:05
Speaker 1: Right.
26:05
Speaker 4: And let's just say, if you're going under ten acres,
26:09
Speaker 4: under ten acres is easier to get funding. If you
26:14
Speaker 4: want good financing, like good construction loans, you know, a
26:18
Speaker 4: paper type of rates and stuff like that, under ten
26:21
Speaker 4: acres is doable. You have to get a construction loan
26:26
Speaker 4: to do something like that, you probably won't be able
26:28
Speaker 4: to get a construction a permanent loan, but you'll have
26:30
Speaker 4: to get a construction loan, which is typically like twelve
26:33
Speaker 4: to eighteen months. But most lenders who are going to
26:36
Speaker 4: do something like that, they're going to fund the first
26:39
Speaker 4: initial house, right that primary house is.
26:43
Speaker 1: Going to be the one.
26:44
Speaker 4: You're going to get the construction loan and build that up,
26:47
Speaker 4: and then when you want to do the other other
26:49
Speaker 4: homes on there, you will have to get separate loans
26:52
Speaker 4: for those if you you know, if you want to
26:54
Speaker 4: get financing for it, you'll have to get loans for
26:58
Speaker 4: those properties to now do the constructuction for that as well.
27:01
Speaker 4: So it's not something that I've seen happen like right
27:06
Speaker 4: away when people are doing these family compounds. That's why look,
27:10
Speaker 4: look how many years Boosey has been talking about the
27:13
Speaker 4: family compounds that he's been slowly but surely just building building,
27:16
Speaker 4: building it right, adding to it, adding to it. It's
27:19
Speaker 4: something that takes time and a lot of capital because construction,
27:24
Speaker 4: even if you are getting loan, you're always paying for
27:26
Speaker 4: something out of pocket. So if someone is looking to
27:29
Speaker 4: do a family compound, you gotta have some capital with
27:33
Speaker 4: you because there's a lot of expenses out of pocket
27:35
Speaker 4: that you're going to have to cover too. But it's
27:37
Speaker 4: not too far fetchy, and it's it's something that we're
27:40
Speaker 4: starting to see all over because there are there are
27:45
Speaker 4: areas where you can get two, three, four five acres
27:49
Speaker 4: and start building and build your compound.
27:54
Speaker 3: The growing theme on social media is that it does
27:57
Speaker 3: not make sense to buy a home to live in.
28:00
Speaker 3: It makes sense to buy a home from real estate
28:01
Speaker 3: from an investment standpoint. But if you should rent, you
28:05
Speaker 3: should rent where you live. Invest your money stock market,
28:09
Speaker 3: other investments. And if you do buy real estate the
28:13
Speaker 3: real estate, that real estate should be an investment property.
28:16
Speaker 3: Because you're not generating cash flow from where you live.
28:20
Speaker 3: It's not a good investment. The taxes is going to
28:23
Speaker 3: kill you over the course of time. What do you
28:26
Speaker 3: say to the people Grant Cardon's champion this for a
28:29
Speaker 3: long time that say you buying real estate and living
28:33
Speaker 3: in that property that you buy is a bad decision.
28:40
Speaker 4: Okay, let's talk about this. I'm glad you brought this up.
28:45
Speaker 4: So first of all, rest in peace, doctor King. Right,
28:50
Speaker 4: this is MKA dad. Everybody type MKA and Chat. Sixty
28:56
Speaker 4: eight years ago, a week after Doctor King was assassinated,
29:02
Speaker 4: they passed the Fair Housing Act. Right, we are now
29:08
Speaker 4: what fifty eight years later, And if you look at
29:12
Speaker 4: the home ownership rate, rashard forty two percent in nineteen
29:16
Speaker 4: sixty eight, and if you look at twenty twenty five,
29:19
Speaker 4: we're around forty four percent, forty five maybe, So in
29:24
Speaker 4: fifty eight years, our homeownership rate only went up three
29:27
Speaker 4: percent compared to our white counterparts like Grant Cardon, who
29:33
Speaker 4: by the way, purchased his first home and if he's
29:36
Speaker 4: vocal about how that got him started in real estate, right,
29:41
Speaker 4: our white counterparts were in sixty eight, they were what
29:45
Speaker 4: sixty five percent, and now today they're standing at seventy
29:49
Speaker 4: five percent home ownership rate. So I think what we
29:53
Speaker 4: have to start doing as black and brown people is
29:56
Speaker 4: stop letting these people like Grant Cardon trick us out
29:58
Speaker 4: of our generational wealth wealth, because these folks have their
30:02
Speaker 4: generational wealth. And if you look at someone like Grand Cordon,
30:05
Speaker 4: and I think Grant Cardon is a very smart business man,
30:09
Speaker 4: but you have to look at everything with a grain
30:13
Speaker 4: of salt. First of all, if you are a first
30:16
Speaker 4: time home buyer and you are out here trying to
30:19
Speaker 4: buy a rental property. First things first, banks don't like
30:26
Speaker 4: you. You're first time home buyer. Banks don't like to fund
30:32
Speaker 4: investors if they're a first time home buyer. And when
30:36
Speaker 4: I hear folks say, oh, your first deal should be commercial,
30:39
Speaker 4: it should be six units, it should be ten units,
30:41
Speaker 4: you definitely ain't going to get no loan from doing
30:45
Speaker 4: something like that because the banks don't want to mess
30:47
Speaker 4: with a rookie. You have no skin in the game.
30:51
Speaker 4: Where's your experience, right, So you have to look at
30:53
Speaker 4: from a funding perspective. What they are saying, is that
30:56
Speaker 4: even reality or is it just for likes? And now
31:00
Speaker 4: what you're saying, Okay, your home is not an asset.
31:03
Speaker 4: The expenses go up, it's going to keep you got
31:05
Speaker 4: to keep paying for it. It's not an asset. But
31:08
Speaker 4: if it grows in appreciation and you're able to tap
31:11
Speaker 4: into that appreciation, pay for your college, pay for a business, right,
31:17
Speaker 4: invest into other real estate, is it not still some
31:20
Speaker 4: sort of an asset. Now I get the whole if
31:22
Speaker 4: it's if it's not paying you, it's not technically an asset.
31:28
Speaker 4: But I think as black and brown people. We can't
31:30
Speaker 4: go by that. Our circumstances are completely different. Let's talk
31:34
Speaker 4: about another thing. To buy a rental property, how much
31:38
Speaker 4: down payment do you need? Twenty percent, thirty percent? Folks
31:43
Speaker 4: can't even come up with three percent, So how how
31:46
Speaker 4: do you think they're coming up with twenty percent, thirty percent,
31:49
Speaker 4: forty percent down in today's market to buy an investment
31:54
Speaker 4: property when they ain't got it. And then that's when
31:57
Speaker 4: you see people doing all a credit card plays and
32:01
Speaker 4: the business funding and now getting themselves into that matrix
32:04
Speaker 4: of debt. Because, like you said, Rashot, I see this firsthand.
32:08
Speaker 4: People call me every day all day crying about their
32:12
Speaker 4: debt because they did all these different plays, or they
32:16
Speaker 4: listened to this person and they thought it was going
32:18
Speaker 4: to happen the way they thought it was going to happen,
32:20
Speaker 4: like they said it was going to happen, and it didn't. Right,
32:22
Speaker 4: So I think we got to take everything with a
32:24
Speaker 4: grain of salt. And this is why I say said earlier,
32:27
Speaker 4: you should only buy real estate if you can afford it. Right,
32:31
Speaker 4: there's nothing wrong with renting, absolutely nothing wrong with Rython.
32:35
Speaker 4: You need a place to live, and if you are
32:38
Speaker 4: going to rent, I think you should look into real
32:41
Speaker 4: estate investment and learn about real estate investment. And if
32:44
Speaker 4: you have an opportunity to buy an investment property or
32:48
Speaker 4: an investment property in a place like in like Ohio
32:52
Speaker 4: or Michigan or somewhere where it's cheaper, and if you
32:56
Speaker 4: don't have to put so much out of your pocket
32:58
Speaker 4: to acquire it, and if you can get some sort
33:01
Speaker 4: of funding for it, great, terrific, go for it. But
33:04
Speaker 4: for the average person who is afraid of out of
33:09
Speaker 4: state investor who don't live in these cities, who live
33:12
Speaker 4: in New York, they live in DC, they live in LA,
33:15
Speaker 4: they live in Florida, and they want to be in
33:17
Speaker 4: their hometowns. Like, you're not buying an investment property first,
33:22
Speaker 4: you can't afford to for the most part, you can
33:24
Speaker 4: barely pay your down payment and closing course now. And
33:27
Speaker 4: there's no down payment assistant for investors. And don't get
33:31
Speaker 4: me started on trying to raise money like grant cardone
33:34
Speaker 4: and a lot of these folks out here do like YO,
33:39
Speaker 4: A lot of the shit that these people are saying
33:41
Speaker 4: is to get you to give them their money, invest
33:45
Speaker 4: with them, to invest with them, because they know you
33:47
Speaker 4: can't afford it. They know you ain't got the knowledge.
33:51
Speaker 4: So wake up, people, stop letting these people trick you
33:55
Speaker 4: out of your God given right to buy real estate. Look,
33:59
Speaker 4: we have people that died before us, literally died before
34:03
Speaker 4: us to give us the right to buy homes. Like
34:07
Speaker 4: lookal the Fair House and Act was passed a week
34:09
Speaker 4: after doctor King was assassinated. They fought for us to
34:12
Speaker 4: have this right, and some of y'all just sitting on
34:14
Speaker 4: the sidelines. Listen to the folks telling you don't go
34:17
Speaker 4: buy a house, go buy an investment. Probably go buy
34:20
Speaker 4: a ten year the house. When all of them have homes.
34:24
Speaker 1: They all have homes.
34:27
Speaker 4: The person that says that, but.
34:32
Speaker 3: From a mathematical standpoint, if you invest your money into
34:37
Speaker 3: the stock market, over the course of time, you will
34:39
Speaker 3: make more money in stocks than in real estate.
34:42
Speaker 1: Fuck that. You can't live in that stock.
34:57
Speaker 4: That No Black people listen to me, it's not or
35:01
Speaker 4: it's both both with you both, I've always said that, it's.
35:05
Speaker 2: Not wards you talked about people not having it.
35:08
Speaker 1: I'm with you, right because it is. It is.
35:11
Speaker 2: It's tough times, right, And we talked about faha, we
35:14
Speaker 2: talked about all those things I wanted in twenty twenty six.
35:16
Speaker 1: Are their programs?
35:17
Speaker 2: Are their initiatives for first time buyers that they may
35:21
Speaker 2: not be aware of?
35:22
Speaker 1: Right?
35:22
Speaker 2: Like, are there programs that they can say, like, Yo,
35:24
Speaker 2: this download down payment assistance program? Like are there things
35:28
Speaker 2: that they should be made aware of that they probably
35:30
Speaker 2: didn't know this in twenty twenty six.
35:33
Speaker 4: Yeah, I mean there's hundreds, literally hundreds of down payment
35:37
Speaker 4: assistant programs that's available. All you guys got to do
35:40
Speaker 4: is just Google down payment assistance in my area. You
35:43
Speaker 4: can go to hud dot gov and hud dot gov
35:46
Speaker 4: has a list of if you type in your state
35:48
Speaker 4: and your city, it has a list in your state
35:51
Speaker 4: of city of all the down payment assistant programs that's available. Right,
35:55
Speaker 4: you got chat, GBT, this AI out here. You could
35:58
Speaker 4: just put it in there and they'll give you all
36:00
Speaker 4: information with all the websites. Like twenty twenty six, this
36:04
Speaker 4: is the easiest time in the world to become a millionaire,
36:07
Speaker 4: no matter if it stocks, whether it's real estate. You
36:10
Speaker 4: don't even have to pick your poison. You can do
36:12
Speaker 4: both if you do it the right way and if
36:13
Speaker 4: you use the technology that's in front of us to
36:16
Speaker 4: go ahead and do it. So the the people that
36:20
Speaker 4: sit in the back say I don't have the information
36:22
Speaker 4: or I didn't know.
36:23
Speaker 1: Shame on you, like you.
36:25
Speaker 4: In the back of the class, not paying attention, like
36:28
Speaker 4: you gotta you gotta get in the game. So, yes, Troy,
36:31
Speaker 4: there's tons of down payment assistance. You still have programs
36:34
Speaker 4: like Knaka that's out there that offer you one hundred
36:36
Speaker 4: percent financing.
36:38
Speaker 1: Right if you episode about you have an episode on
36:40
Speaker 1: Knaka with Dre.
36:41
Speaker 4: Yeah, shout out to Dre right like and if you
36:44
Speaker 4: look at even like Dre Right, shout out to Dre
36:47
Speaker 4: from Chicago, like he went from Naka and house hacking
36:51
Speaker 4: knacker to now he's doing development.
36:54
Speaker 1: All within ten years.
36:56
Speaker 4: Ye, right, So you gotta look at the stepping stones
36:59
Speaker 4: of this that we live in such a microwavable society
37:03
Speaker 4: right now where people just want to put get rich
37:06
Speaker 4: quick in sixty seconds, Like, no, you gotta take time.
37:10
Speaker 4: I tell people all the time, my overnight success to
37:13
Speaker 4: me twenty three years. Like a lot of y'all trying
37:17
Speaker 4: to get it in twenty three seconds. You got to
37:19
Speaker 4: calm down, follow follow the blueprint, and trust the process.
37:24
Speaker 4: And then my Troy voice, stay low, keep firing.
37:29
Speaker 5: Yeah, what's my biggest what's the biggest mistake you see
37:33
Speaker 5: hot income earners making when they apply for a mortgage?
37:38
Speaker 4: The biggest mistake I see hot income earners make. Oh man,
37:42
Speaker 4: there's tons of mistakes they make. Most hot earners think,
37:46
Speaker 4: especially if they're self employed, they think whatever they're grosses,
37:50
Speaker 4: that's their net right, And that's not the case.
37:55
Speaker 1: You know, I have.
37:56
Speaker 4: Business owners all the time. Income to me, like, yo,
37:58
Speaker 4: I made two million dollars a year. We see your taxes,
38:01
Speaker 4: you make twenty five thousand according to what you told
38:04
Speaker 4: the IRS, which you're taking full advantage of the tax code, right,
38:08
Speaker 4: which is a beautiful thing. But now I can't go
38:11
Speaker 4: traditional full documentation convencial loans. But thank god, we have
38:14
Speaker 4: programs out there like P and L loans, bank statement
38:18
Speaker 4: loans and things like that out there where we don't
38:21
Speaker 4: need tax returns, where we can use your monthly deposits
38:24
Speaker 4: and your business and we can use that as your income.
38:27
Speaker 4: So I think one of the biggest mistakes that I
38:29
Speaker 4: see not only hot income earners make in but everybody
38:33
Speaker 4: who's looking for a mortgage, they don't do a mortgage plan, right.
38:36
Speaker 4: You always hear people say you should do financial planning
38:39
Speaker 4: and stuff like that, But where does the mortgage planing
38:42
Speaker 4: come into that? If you know you're looking to buy
38:45
Speaker 4: not just one house, even just one house, right, you
38:48
Speaker 4: should be sitting down with someone like myself and have
38:51
Speaker 4: put your team together, your CPA, your realtor, your loan officer,
38:56
Speaker 4: and make sure everybody's on the same page so that
38:59
Speaker 4: way you understand it exactly what your buying power is,
39:01
Speaker 4: what the tax benefits behind it, and how do you
39:04
Speaker 4: really scale that network to the highest levels?
39:06
Speaker 1: Right?
39:07
Speaker 4: You have to do a mortgage plan every year, and
39:08
Speaker 4: if you're someone who's looking to scale and grow a portfolio,
39:13
Speaker 4: you definitely should be doing the mortgage plan with your
39:15
Speaker 4: with your team of professionals every single year to go
39:18
Speaker 4: over where you stand and what is my goals and
39:22
Speaker 4: how do we as a team get to that next level.
39:25
Speaker 4: But have to remember that you are the CEO of
39:28
Speaker 4: this real estate business, right and you have to lead
39:31
Speaker 4: the professionals like myself in the right way so that
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Speaker 4: way we can help you achieve your goal to the
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Speaker 4: highest levels possible.
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Speaker 1: There you have it, ladies and gentlemen, Camics m JIZZL.
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Speaker 2: This episode is brought to you by P and C Bank.
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Speaker 2: A lot of people think podcasts about work are boring,
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Speaker 2: and sure, they definitely can be, but understanding a professionals
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Speaker 2: routine shows us how they achieve their success little by little,
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Speaker 2: day after day. It's like banking with P and C Bank.
40:01
Speaker 2: It might seem boring the safe plan and make calculated
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Speaker 2: decisions with your bank, but keeping your money boring is
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Speaker 2: what helps you live or more happily fulfilled life.
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Speaker 1: P and C Bank Brilliantly Boring since eighteen sixty five.
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Speaker 2: Brilliantly Boring since eighteen sixty five is a service mark
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Speaker 2: of the PNC Financial Service Group, Inc. P and C
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Speaker 2: Bank National Association Member FDIC