Latest / Own More Doors / #24 How to Get $50,000 in Grant Money for Home Buyers & Investors! (Chris Fenoglio)

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#24 How to Get $50,000 in Grant Money for Home Buyers & Investors! (Chris Fenoglio) · Own More Doors

0:00
SPEAKER_01: What's up, everyone?
0:01
SPEAKER_01: Juan Weezar here with another show, Own More Doors.
0:04
SPEAKER_01: Today I'm super excited.
0:05
SPEAKER_01: So make sure you guys tune in.
0:07
SPEAKER_01: You know, from the very beginning, my goal was to educate, bring value.
0:10
SPEAKER_01: And so today's guest is going to tell us how you, as an investor, you as a homeowner, you as an aspiring uh multifamily investor could potentially qualify up to$50,000 grant.
0:24
SPEAKER_01: That's free money.
0:26
SPEAKER_01: So let's take a deep dive.
0:27
SPEAKER_01: I'm I'm here with Chris Finolio, City National Bank.
0:30
SPEAKER_01: Chris, thank you so much for being here.
0:31
SPEAKER_00: Thank you, Juan.
0:32
SPEAKER_01: Chris, give us a little background um on you.
0:36
SPEAKER_01: How long you you've been in the lending business and that type of stuff?
0:39
SPEAKER_00: So I've been in lending for 22 years.
0:42
SPEAKER_00: Started out of bank, went to a small shop, ran my own company for about 11 years, and now I'm back in the banking industry.
0:51
SPEAKER_00: So awesome, man.
0:52
SPEAKER_00: It's been a fun ride.
0:54
SPEAKER_01: Well, we're glad to have you here.
0:56
SPEAKER_01: Um, so another realtor here in Long Beach said, Hey, do you know who Chris Finelio is?
1:01
SPEAKER_01: I'm like, no.
1:02
SPEAKER_01: They said he's got this amazing program where a lot of properties in Long Beach qualify for a$50,000 grant.
1:09
SPEAKER_01: Have you heard of it?
1:10
SPEAKER_01: I'm like, no.
1:11
SPEAKER_01: And so then I got a hold of you.
1:12
SPEAKER_01: You told me all about it.
1:13
SPEAKER_01: So let's just get into the to the very basics.
1:16
SPEAKER_01: Okay.
1:17
SPEAKER_01: Um, certain states were were given this grant.
1:24
SPEAKER_01: Correct.
1:24
SPEAKER_01: And then I'll let you go into that.
1:27
SPEAKER_01: So just kind of take it from the top and on on how this got created.
1:30
SPEAKER_00: Okay.
1:30
SPEAKER_00: It's called the Ladder Up Program.
1:32
SPEAKER_00: City National Bank created it.
1:33
SPEAKER_00: It's about a year old.
1:35
SPEAKER_00: And so with this product, it's really designed for first-time home buyers.
1:39
SPEAKER_00: However, with our program, if you sold a house to buy a new house and you don't own a home, you're eligible, right?
1:46
SPEAKER_00: Which is really cool.
1:47
SPEAKER_00: And it opens the doors.
1:48
SPEAKER_00: The second part is they took a lot of the like demographics of the areas and really expanded it.
1:54
SPEAKER_00: And I'll give you a great example.
1:56
SPEAKER_00: I pull the MLS LA County on Thursdays and I just sort through.
2:01
SPEAKER_00: I got a little app that helps me uh pull all the homes.
2:04
SPEAKER_00: And there were 4,400 homes on the MLS that qualify between a$20,000 and$50,000 grant.
2:12
SPEAKER_00: Most of these types of programs, other banks do offer these types of programs, but they're very limited.
2:17
SPEAKER_00: And you don't have as wide range as City National Bank has opened it up for clients.
2:23
SPEAKER_00: And so that's where it is an absolute game changer.
2:26
SPEAKER_00: If you can qualify for this product, it's just phenomenal.
2:30
SPEAKER_00: And I'm going to give you a little bit more about it.
2:31
SPEAKER_00: It's not just 20 to 50 grand's amazing, but it's the ability to use the portfolio rates.
2:38
SPEAKER_00: And what I mean by that is so when you buy a house, you go, let's just use a condo, for example, and you're going to go get a Fannie Mae 5% down.
2:44
SPEAKER_00: Fannie Mae has what's called LLPA, loan level price adjustment hits.
2:49
SPEAKER_00: So if a borough is putting 5% down, you have a FICO score hit, so which increases the rate.
2:55
SPEAKER_00: You have a loan-to-value hit.
2:57
SPEAKER_00: So if uh 80% versus a 95, it's actually higher for a 95.
3:01
SPEAKER_00: It's a higher risk for the bank.
3:03
SPEAKER_00: And so you have a hit there, and then you have a condo hit.
3:06
SPEAKER_00: And what I mean by hit, that hits to rate.
3:08
SPEAKER_00: Let's just say today's rate's six percent par, but when you add in a 95, a FICO score 720, and a condo hit, your rate could be 7%.
3:18
SPEAKER_00: Okay.
3:19
SPEAKER_00: This product does not have L LPA hits.
3:22
SPEAKER_00: You're getting the bank portfolio pricing.
3:24
SPEAKER_00: We do have a little hit for loan to value, but it's nothing like Fannie Mae.
3:28
SPEAKER_00: So take in, you get the grant, the 20 and 50 grand, but you're getting a rate that's significantly lower than a Fannie Mae right now.
3:36
SPEAKER_00: So that also helps, right?
3:38
SPEAKER_00: When we look at it and you're like, oh, you're only putting 5% down, you're buying only, right?
3:42
SPEAKER_00: And you're only buying a and you're getting a condo, we're like, we don't have these hits.
3:45
SPEAKER_00: So when you compare apples to apples rate-wise, and it has no mortgage insurance, it's it's like a home run.
3:52
SPEAKER_00: And then you add in the$20,000 or the$50,000 grant, it's really a significant savings right now.
3:59
SPEAKER_00: And so, and that's what, especially in a market where values are high and interest rates are high, borrowers are like, this doesn't make sense.
4:08
SPEAKER_01: Chris, the part that we love the most here at Sage Real Estate, because we do a lot of multifamily, is when you said it goes up to four units.
4:15
SPEAKER_00: Yes.
4:15
SPEAKER_01: And I know you're using the word home, but you know, for us, we're like duplex, triplex, fourplex, does it help us?
4:21
SPEAKER_01: And the answer is yes.
4:22
SPEAKER_00: 100%.
4:23
SPEAKER_01: I I told uh one of our agents, I said, this is a dream come true.
4:28
SPEAKER_01: I don't know how long it's gonna last.
4:30
SPEAKER_01: And you know, like and I'll have you get into that.
4:32
SPEAKER_01: I'm like, but you have to go buy something, you have to go buy a four-unit building because if it's a million-dollar four-unit building, essentially it's$950 because you don't have to pay it back.
4:42
SPEAKER_01: Correct.
4:44
SPEAKER_01: So what got us to this point, Chris?
4:47
SPEAKER_01: Like, what what got us to the point where City National Bank is offering uh essentially free money?
4:53
SPEAKER_00: So it's CRA, right?
4:56
SPEAKER_00: It's Community Reinvestment Act.
4:58
SPEAKER_00: That's all banks offer some type of product like this.
5:01
SPEAKER_00: We're not the only lender that has this, but major banks have to do this type of financing.
5:06
SPEAKER_00: They have to lend in areas that they have footprint, that's where their bank branch is.
5:12
SPEAKER_00: And City National, in other words, was not lending in these areas.
5:18
SPEAKER_00: And you got to realize prices are super high too, right?
5:21
SPEAKER_00: And so they're just they were they didn't have a great product for it, and they also got in a little bit of trouble, right?
5:26
SPEAKER_00: Because they weren't lending in these areas.
5:28
SPEAKER_00: And so they came in and said, Hey, we really got to start lending in this market.
5:33
SPEAKER_00: This is where we do most of our business, right?
5:35
SPEAKER_00: A lot of people bank at City National Bank, all business owners bank there.
5:40
SPEAKER_00: And so they came out and stripped the guidelines down and said, we really need to start lending.
5:45
SPEAKER_00: And how are we gonna do that?
5:46
SPEAKER_00: We got to give money, we've got to give people money.
5:48
SPEAKER_00: And it's not just the mortgage, they also want their banking relationship.
5:51
SPEAKER_00: They also want them, these people as they grow their net worth.
5:55
SPEAKER_00: City National Bank wants to ride with them, but they didn't have a great product, and now they're very aggressive, as everyone that's saying they're like, Chris, is this real?
6:04
SPEAKER_00: And I'm like, Yes, it's real.
6:05
SPEAKER_00: And when you compare it to these other products, if you can fit in the grant program, you're gonna fit in the grant program, you're gonna go buy one of these homes.
6:13
SPEAKER_00: And like I said, having the option of multiple, it's just not like three homes.
6:18
SPEAKER_00: There's 4,400 on the market last Thursday in all of LA County.
6:22
SPEAKER_00: We're all LA County.
6:23
SPEAKER_00: Here's the other thing: Orange County, Riverside, San Diego, like all those areas are eligible too.
6:30
SPEAKER_00: But most of our business, you and I business is LA County.
6:33
SPEAKER_00: So that's where we really focus on.
6:35
SPEAKER_01: Where um, I know there's a few other states, so why don't you tell us where where this is?
6:40
SPEAKER_01: Because it's this is not a nationwide program.
6:42
SPEAKER_00: No, it is California and New York, New York and New Jersey.
6:46
SPEAKER_00: Okay.
6:46
SPEAKER_00: So right now, those are the states.
6:48
SPEAKER_00: There is talk that they're gonna have other footprints states coming in, but you know, I don't know exactly when or where.
6:56
SPEAKER_00: But I know we also have a headquarter, or we also have a big center lending center in Nashville.
7:01
SPEAKER_00: So Tennessee, I imagine they'll probably be the next state if they continue.
7:05
SPEAKER_01: Got it.
7:06
SPEAKER_01: Uh who's this good for?
7:08
SPEAKER_00: So um anyone that does not own a home.
7:11
unknown: Okay.
7:12
SPEAKER_01: And let's be very clear because a lot, you know, I've been I've been hyping this up since since we maybe spoke about a month ago.
7:19
SPEAKER_01: And what we did on our end is we took all of our listings that were four units and less, and we contacted you, Chris, and we're like, do these qualify for I don't know, 20 or 50,000?
7:29
SPEAKER_01: Folks, all but one property qualified.
7:32
SPEAKER_01: Basically, it all of them qualified.
7:34
SPEAKER_01: And the one that didn't, Chris said, Hey, that's just that is in a neighborhood that um that they did not approve.
7:40
SPEAKER_01: But so what I'm saying is the majority of places in Alley County or uh Orange County might be different, but the majority of the properties in Long Beach are going to qualify for something.
7:49
SPEAKER_01: And even this one property that we had right by Wilson High School, which is a good area, you said it qualifies for 20,000.
7:56
SPEAKER_01: So it didn't get to 50,000, but it got the 20,000.
7:59
SPEAKER_01: Right.
7:59
SPEAKER_01: And so obviously, um, people will reach out to me and they'll say, hey, but that's only for first-time homebuyers.
8:05
SPEAKER_01: I'm like, no.
8:06
SPEAKER_00: No, you're right.
8:07
SPEAKER_00: Yeah, sorry to go.
8:08
SPEAKER_00: Yeah.
8:09
SPEAKER_00: So no, you cannot own another home.
8:11
SPEAKER_00: So I do, you know, so let's say you're on title of your cousin's home, right?
8:15
SPEAKER_00: But you're not on the mortgage.
8:16
SPEAKER_00: I'm gonna go tell you to get yourself off title of that property and then come apply it with us.
8:20
SPEAKER_00: You just can't own another home.
8:23
SPEAKER_01: What when you say another home, Chris, because I I someone's gonna someone's gonna say, hey, Juan, I own a Farflex.
8:28
SPEAKER_01: I don't live in it.
8:29
SPEAKER_00: Yeah, no, you can't own another property.
8:31
SPEAKER_00: You just can't own you cannot be on title of any other home.
8:34
SPEAKER_00: Got it.
8:35
SPEAKER_00: We'll run basically, it's called a fraud guard and we'll find it.
8:37
SPEAKER_00: Okay, we'll find title.
8:39
SPEAKER_00: But I'll give you a great example.
8:40
SPEAKER_00: Had a unfortunate husband and wife, both of them getting divorced, selling a home.
8:45
SPEAKER_00: Uh, they sold their home.
8:46
SPEAKER_00: Both of them ended up buying in Long Beach, and both of them were eligible because they bought grant properties, and they were like both baffled.
8:53
SPEAKER_00: They're like, Are you?
8:54
SPEAKER_00: I'm like, listen, you guys don't own a home anymore.
8:57
SPEAKER_00: You're under the income limits, and we haven't got into that, and we could talk more about that.
9:01
SPEAKER_00: And so both of them ended up buying homes in Long Beach in the million dollar range, putting 20% down, and also picked up the$20,000 grant and got an interest rate with a five in front of it.
9:12
SPEAKER_00: Like, I mean, it's just unreal.
9:14
SPEAKER_01: Yeah, yeah.
9:16
SPEAKER_01: Um, what are the people are gonna say, Well, what credit do I need?
9:20
SPEAKER_01: Okay, let's just say someone gets past the okay, I don't have a mortgage.
9:23
SPEAKER_01: Okay, so that that puts me that's step one.
9:25
SPEAKER_00: Okay, step two, got it.
9:27
SPEAKER_00: FICO score.
9:28
SPEAKER_00: Say 660 FICO score, 660.
9:31
SPEAKER_00: Remember that the difference in rate between a 660 and 800 is zero.
9:36
SPEAKER_00: So as long as you got a 660, there is no like, hey, I have an 800, do I get a lower rate?
9:40
SPEAKER_00: The answer is no.
9:40
SPEAKER_01: And and and this is because uh City National Bank is not doing kind of these add-on things that you told us about.
9:46
SPEAKER_00: It's a portfolio product, so we're saying we're putting these loans on our books.
9:50
SPEAKER_00: We're we own them, right?
9:51
SPEAKER_00: You're making your payment to us every month.
9:53
SPEAKER_00: Uh so there's that.
9:54
SPEAKER_00: And then each county, right?
9:56
SPEAKER_00: LA County has income limits, and I believe I sent it, I believe it's like 297,400.
10:02
SPEAKER_00: I just tell everyone as long as you make under 300 grand, we're gonna, we're gonna get you into this.
10:06
SPEAKER_00: And so that is huge.
10:08
SPEAKER_00: Orange County,$383,000.
10:11
SPEAKER_01: Okay.
10:11
SPEAKER_00: So when people are out looking, I'm like, three things.
10:14
SPEAKER_00: Do you own a home?
10:15
SPEAKER_00: Okay, no, great.
10:16
SPEAKER_00: Do you have a FICO score of$660?
10:18
SPEAKER_00: Yes.
10:19
SPEAKER_00: And then third is let's go over the income.
10:22
SPEAKER_00: Now, what happens if you have someone that you have two income earners, husband and wife, and you add up their income and they make over the$297, but let's just say primary borrower one makes enough money to qualify.
10:38
SPEAKER_00: We just don't put borrow number two on there.
10:40
SPEAKER_00: Sure.
10:40
SPEAKER_00: They don't need to be on there.
10:41
SPEAKER_00: It's not household income, it's application income, which opens the door, right?
10:46
SPEAKER_00: Because you get a lot of in basically in LA counting everyone's dual earn earn income to live here, right?
10:53
SPEAKER_00: It's so expensive.
10:54
SPEAKER_00: So you got to have two working people.
10:56
SPEAKER_00: But if one of them can qualify without being on the loan, we don't need them on the loan.
11:00
SPEAKER_01: Talk to us about down payment requirements.
11:04
SPEAKER_00: So if you get into the it requires three percent down, but obviously if you have a 20 or 50 grand grant, that's gonna cover your down payment.
11:13
SPEAKER_00: So essentially, between single family and condos, you don't have to put any money down.
11:18
SPEAKER_00: Two to four is the only criteria where you have to come in with five percent of your own money.
11:23
SPEAKER_01: Which is great.
11:24
SPEAKER_01: I mean, I mean, you were gonna be coming in with that anyways.
11:28
SPEAKER_00: Yeah, no, you were, yeah, of course.
11:30
SPEAKER_00: Yeah, I mean, most people buying two to four units, they were coming in with five percent down.
11:35
SPEAKER_01: Yeah.
11:35
SPEAKER_01: Let's just clarify with the two and four units, they're very specific.
11:38
SPEAKER_01: This is not this is not for an investor, not like they have to live in there.
11:43
SPEAKER_00: They have we're gonna be all over them.
11:44
SPEAKER_00: Okay, guys.
11:46
SPEAKER_00: So you have to live in it.
11:47
SPEAKER_00: But it's a great, like, here's the thing.
11:48
SPEAKER_00: If I'm a if I'm a first-time buyer and I really want to get into real estate and this programming exists and I can do it, I'm I'm looking for a duplex or a triplex.
11:57
SPEAKER_00: I'm gonna go move into it and literally, hey, look, I'm gonna get 20 or 50 grand.
12:01
SPEAKER_00: I'm gonna get a great rate, a rate that doesn't exist, move into it.
12:05
SPEAKER_00: I'll probably move into the smallest unit, right?
12:07
SPEAKER_00: Yeah, rent out the other two units, live there for a year, and then I'm starting building equity in this place, and then I'm on to my next one, right?
12:13
SPEAKER_00: And the beauty about it is there's no restriction.
12:16
SPEAKER_00: So, like once you buy this and you live in it for 12 months, you can go buy another house, right?
12:20
SPEAKER_00: You can't come back and get the grand again on the next house because you already own title, but you're in a situation where this is the most ultimate housing hack, right?
12:28
SPEAKER_00: You know that word, right?
12:29
SPEAKER_00: Everyone talks about it, and I think this product is the ultimate housing hack to get into two to four units.
12:34
SPEAKER_00: If I started, if I look back at my life, right, I bought a condo and then the condo turned in single family, single, you know, I would have I would have gone units.
12:42
SPEAKER_00: I would have bought a two, two to four unit owner-occupied when I was younger, and move into the smallest unit, rent out the others and help me with that payment, and then be like, okay, here we go.
12:52
SPEAKER_01: What you just described, Chris, is exactly what we teach.
12:55
SPEAKER_01: And a lot of our clients, I mean, you know, some clients are multiple, multiple units now, but but but their first was a was a four unit.
13:04
SPEAKER_01: And I always tell people, hey, that fourplex is kind of your gateway into other investments.
13:08
SPEAKER_01: Because once you realize that, hey, this is not so hard.
13:12
SPEAKER_01: Hey, the tenants do pay rent, the maintenance is not as crazy as everyone said it was gonna be.
13:17
SPEAKER_01: Every now and then you're gonna have some calls and it and some issues here, you know, but it's a business.
13:21
SPEAKER_01: But once you realize you're like, wow, I could do this.
13:24
SPEAKER_01: And not only that, Chris, I what I tell people is um when you have a vacancy here in Southern California, or you know, in Long Beach specifically, and you know, you put it up on Zillow for rent, your phone blows up.
13:36
SPEAKER_01: Like you better not have another job because your phone's just gonna keep ringing.
13:39
SPEAKER_01: And then you realize you're like, wait, that to me is the biggest like aha moment.
13:44
SPEAKER_01: It's you realize how many qualified applicants are out there needing places to rent.
13:50
SPEAKER_01: And then my takeaway is like, I need more places to rent.
13:54
SPEAKER_01: 100%.
13:55
SPEAKER_01: I want to be a housing provider.
13:57
SPEAKER_01: I let me go um help put people in housing.
14:00
SPEAKER_01: So um I agree with you.
14:05
SPEAKER_01: Take advantage of this program, buy units if you're in a position that you can.
14:09
SPEAKER_01: If you're like, hey, I just want to get a single family home, we're not gonna stop you.
14:12
SPEAKER_01: I mean, no, regardless, both are really good financial investment moves.
14:16
SPEAKER_01: Um talk to us about the bonus here uh property mortgage insurance.
14:23
SPEAKER_00: Not having mortgage insurance.
14:25
SPEAKER_00: Yes.
14:25
SPEAKER_00: Yes.
14:25
SPEAKER_00: I mean, it's a portfolio loan.
14:27
SPEAKER_00: And so when you get a portfolio loan, like most clients, right?
14:30
SPEAKER_00: But like jumbo loans, they don't have mortgage insurance because the bank owns the loan, right?
14:36
SPEAKER_00: Same thing.
14:37
SPEAKER_00: So these product is opened up for this smaller like loan amounts with no mortgage insurance.
14:42
SPEAKER_00: You follow the jumbo guidelines and they just don't have mortgage insurance because the bank owns the loan, which is it's I know everyone's like, what?
14:49
SPEAKER_00: And I and I've been in this long time and I've done first-time home buyer dream programs all the way to you know multi-million dollar,$10 million loans.
14:57
SPEAKER_00: And what you realize is like, yes, these products don't have mortgage insurance because the bank owns the loan, right?
15:04
SPEAKER_00: We're not selling the market to Fannie Mae.
15:06
SPEAKER_00: Fannie Mae makes the borrower take out a mortgage insurance in case the bar defaults, Fannie's not on the hook.
15:11
SPEAKER_00: They just go to the insurancer and they get paid.
15:13
SPEAKER_00: The bank's on the hook, period.
15:15
SPEAKER_00: So they just don't have built-in mortgage insurance.
15:18
SPEAKER_01: Chris, tell us and kind of give us an example of the type of savings.
15:22
SPEAKER_01: When we're saying mortgage insurance, I don't know.
15:24
SPEAKER_01: I mean, someone could be thinking, hey, this is is that 50 bucks a month?
15:27
SPEAKER_01: Like, what is that?
15:29
SPEAKER_00: The difference between an FHA and a conventional loan is probably about$400 a month on about an$800,000 loan.
15:36
SPEAKER_01: Got it.
15:36
SPEAKER_01: So so what Chris said, folks, is that you're essentially with without this property mortgage insurance, because it's it's you're not being asked to pay for this.
15:44
SPEAKER_01: And typically, in most cases, if you're not able to come up with 20% down, most banks are going to make you pay for this.
15:51
SPEAKER_01: And and so that and so what what what Chris just said is you know, more or less, that's around$400 in savings.
15:57
SPEAKER_01: Yeah.
15:58
SPEAKER_01: So we have a lower interest rate, uh, essentially$400 in savings on on the payment, and you didn't have to come up with 20% down.
16:06
SPEAKER_01: In some cases, if you bought something small enough, it was zero down.
16:10
SPEAKER_01: Yes.
16:10
SPEAKER_01: Yeah.
16:11
SPEAKER_00: I'll give you a quick example of this scenario.
16:13
SPEAKER_00: I actually have one of your real estate agents, it's a duplex.
16:17
SPEAKER_00: We priced it out conventional versus the uh grant program, and they were coming in with, I believe, 10% down.
16:24
SPEAKER_00: Ended up being$700 difference in payment.
16:27
SPEAKER_00: And then cash to close was another, I think it was about$15,000 less.
16:33
SPEAKER_00: Now they chose to take that grant.
16:35
SPEAKER_00: You with the grant, you can actually buy down the rate.
16:37
SPEAKER_00: We have a cap on how much you can buy it down.
16:39
SPEAKER_00: And these people are like, I'm all payment sensitive.
16:42
SPEAKER_00: And it didn't really matter because every$10,000 they put down on the loan only saved them$65 in payment.
16:47
SPEAKER_00: And they're like, Chris, how much can I buy down the rate?
16:49
SPEAKER_00: And I'm like, you can buy it down a half percent and rate.
16:52
SPEAKER_00: And they're like, take the grant, apply the max.
16:54
SPEAKER_00: And so when they looked at their savings, they're like, it's$700 versus a conformity loan.
16:59
SPEAKER_00: It was a 10% down.
17:00
SPEAKER_00: I'm and I can definitely send you the slide so you can show everyone that I did for your client for one of your clients.
17:05
SPEAKER_00: And they were, they were just like, Yes, I want this because it was all about cash flow.
17:10
SPEAKER_00: First time home buyers moving into a duplex.
17:12
SPEAKER_00: The other tenant was paying, I don't know, three grand a month of rent, and they're sitting there going, wait, I'm gonna buy this place, I'm gonna come in with 10% down, and I'm gonna end up, I think we'll just use numbers of say my payment's$5,000, I'm getting$3,200.
17:26
SPEAKER_00: So I'm gonna own a place for$1,800 a month.
17:30
SPEAKER_00: I'm paying$3,200 in rent.
17:31
SPEAKER_00: I go, yes, you are.
17:33
SPEAKER_00: And so that's the beauty about the program, right?
17:35
SPEAKER_00: That if it's the$20 or the$50, we'll give you options.
17:37
SPEAKER_00: You can buy down the rate up to a half a percent.
17:40
SPEAKER_00: So people are going, okay, I'd rather have more money towards down payment and less cash to close, or I'd rather have a cheaper payment.
17:49
SPEAKER_00: And the beauty, we just give them the options and go, here you go.
17:52
SPEAKER_00: You choose, right?
17:53
SPEAKER_00: Yeah, and so it's all about their lifestyle, what they're looking for.
17:57
SPEAKER_01: We we went back and and all of our listings that we have listed on the MLS in the in kind of the private remarks were like home is eligible, condo is eligible.
18:08
SPEAKER_01: Yes, we have a condo right now on the market, 375,000.
18:12
SPEAKER_01: And I checked with you, a qualifizer,$50,000 grant.
18:16
SPEAKER_01: Are you kidding me?
18:16
SPEAKER_01: Yeah, I mean, so just from a racial perspective, that is huge.
18:19
SPEAKER_01: Oh, yeah, it's huge.
18:21
SPEAKER_01: And it's interesting, you know.
18:22
SPEAKER_01: I I wanted to make sure that we had you on because I want people to know.
18:25
SPEAKER_01: I want I want realtors to know because they don't always know, and I want buyers to take advantage of it.
18:31
SPEAKER_01: Um, Chris, how long do we have this for?
18:34
SPEAKER_01: Because this is not a forever program.
18:36
SPEAKER_00: I mean, like so the you're always gonna have this program.
18:39
SPEAKER_00: The 20,000, I believe, is gonna be around forever just because there's always that type of product.
18:44
SPEAKER_00: The the increase from 20 to 50, I'm gonna give us about 18 months.
18:49
SPEAKER_00: We have a certain amount of money, starts with a three, has a zero and about seven numbers behind it we have to use.
18:55
SPEAKER_00: Okay.
18:56
SPEAKER_00: So we got it in, you know, if you're doing 20 grand, 30 grand, or 50 grand grants, we got about 700 loans.
19:03
SPEAKER_00: Right?
19:03
SPEAKER_00: Right.
19:04
SPEAKER_00: So once we get through that, you're always all banks are gonna have a product similar to this.
19:09
SPEAKER_00: It's just like I said, we've opened up the guidelines a lot for the income limits and then the also the properties that qualify.
19:16
SPEAKER_00: And so this is a super exciting product.
19:19
SPEAKER_00: I moved my whole team to this bank to go jump on this and go, guys, this is the most insane product we've ever heard of.
19:27
SPEAKER_00: Uh, you need to find every first-time buyer, or if you don't own a home and you're you sold a home, you're coming back into the market and you can fit this bucket, you need to go take advantage of it now.
19:38
SPEAKER_01: You know, Chris, even though we we're doing everything we can to promote this product, and and it's not like we get anything out of it.
19:45
SPEAKER_01: We but and sometimes we're telling the uh, you know, we're on the listing side a lot of times, and we're telling the buyer's agent, hey, make sure your client knows.
19:54
SPEAKER_01: And sometimes it's it's interesting, Chris, how the I either the buyer's agent or the buyer's like, oh no, no, no, I have my go-to lender, like I like I have my lender, I'm like, this property qualifies for 50,000 and probably a lower interest rate.
20:05
SPEAKER_01: Like people have this commitment to, hey, I got my go-to lender.
20:10
SPEAKER_01: And I'm like, we get nothing out of making you go with uh with Chris over at City National Bank outside of knowing that you got the very best deal, which to me matters, right?
20:20
SPEAKER_01: And um what else should we know about this program?
20:27
SPEAKER_00: I would say the biggest, I mean, I think we've hit all the topics, right?
20:32
SPEAKER_00: We've hit what how you qualify, uh the interest rate and that type of stuff.
20:37
SPEAKER_00: I mean, really it's just it's identifying properties.
20:40
SPEAKER_00: I think the hardest part is like for you know, people going, is this one qualified or this one not qualified?
20:46
SPEAKER_00: And for me, I'm trying to teach the agents.
20:48
SPEAKER_00: There's a website we use, and I could teach everyone how to do it, and I'm gonna need your help with your system, and maybe we could shoot a video after this and do like a quick walkthrough because that's the hardest people are like, Does this home qualify?
20:59
SPEAKER_00: This is home, this home.
21:00
SPEAKER_00: And then and that's where we get a little overwhelmed.
21:02
SPEAKER_00: And we're like, yes, it does, you know, it doesn't.
21:04
SPEAKER_00: You know what I mean?
21:05
SPEAKER_00: So I think the biggest thing for us is you and I is how do we get it out to the masses so they can just pull it up themselves?
21:10
SPEAKER_00: It's not some secret website, right?
21:12
SPEAKER_00: Right.
21:13
SPEAKER_00: It's it's a website that is you can go online and use and you just type in the address and you click a little two buttons and it tells you it's eligible, which is fantastic.
21:21
SPEAKER_00: It's just getting that out.
21:22
SPEAKER_00: I think the biggest thing for me is just getting the word out about this product and knowing that it's out there for people.
21:28
SPEAKER_00: And I think that's the hardest part for us is we just we don't have a I mean, we've done some City National Bank's done some advertisements on radio and stuff like that.
21:37
SPEAKER_00: That doesn't work anymore.
21:38
SPEAKER_00: Like it's shows like yours that work.
21:40
SPEAKER_00: That's what we need to do.
21:41
SPEAKER_00: We need to get on a bunch of podcasts and show people like this is a game changer compared to what is out there in the marketplace.
21:48
SPEAKER_00: Here's the other thing it's a portfolio rate.
21:51
SPEAKER_00: So when rates move, like in the last month, we've seen all right, first rates we the feds cut short term rates, mortgage rates went down.
22:00
SPEAKER_00: Prior to the cut, over almost 200 basis points.
22:03
SPEAKER_00: And then all of a sudden they cut the rates, and rates have gone up tremendously.
22:06
SPEAKER_00: The bank, the portfolio rate, it's moved 10 basis points in a month.
22:10
SPEAKER_01: Okay.
22:11
SPEAKER_00: Right.
22:11
SPEAKER_00: And so people are like, hey, my Fannie Mae rate went from six to seven.
22:17
SPEAKER_00: And I'm like, yeah, we went from six to six point one two five one one two five.
22:21
SPEAKER_00: And they're like, Are you kidding me?
22:22
SPEAKER_00: I'm like, no, they just don't move as much.
22:24
SPEAKER_00: So that's really helpful in an inclining rate market.
22:27
SPEAKER_00: When you see rates going up, we don't move our portfolio as much.
22:31
SPEAKER_01: Right.
22:31
SPEAKER_01: Right.
22:32
SPEAKER_01: Right.
22:32
SPEAKER_01: Well, that's really interesting to know.
22:34
SPEAKER_01: So for anyone listening, this is very clear.
22:36
SPEAKER_01: It's not that every property is going to qualify for 50,000.
22:39
SPEAKER_01: It's it's very address-specific.
22:41
SPEAKER_01: And so I think uh Chris is right.
22:44
SPEAKER_01: We will shoot a video, but in the meantime, um, you you could definitely reach out to us, and Chris is going to walk me through um, hey, does that specific property qualify?
22:54
SPEAKER_01: And uh because that's important for you to know, because then you know what your options are.
22:59
SPEAKER_01: And then Chris, for for anyone listening, what would be the best way to reach out to you?
23:05
SPEAKER_00: Text or email, either or, you know, I'm a big Cowan Lee.
23:09
SPEAKER_00: Do you know Calendly?
23:10
SPEAKER_00: Yeah, use Calendly.
23:11
SPEAKER_00: Like my whole life is Calendly.
23:12
SPEAKER_00: My wife uses Cowendly to schedule soccer and appointments with me.
23:16
SPEAKER_00: I use Cow and Lee, like everything's in there.
23:18
SPEAKER_00: And I literally have, you know, five days a week, and I probably have about six hours a day that I literally schedule 20-minute calls.
23:26
SPEAKER_00: And people are like, I'm like, jump on Calendly, pick some time, and let's just talk.
23:30
SPEAKER_00: And here's the beauty is I've been at this for a very long time.
23:33
SPEAKER_00: I most people that are pace dub W2, I could tell you what you qualify in about 10 minutes.
23:38
SPEAKER_00: And it's really simple, right?
23:40
SPEAKER_00: I'm like, what's the credit score?
23:41
SPEAKER_00: Okay, great.
23:42
SPEAKER_00: What's your monthly income?
23:43
SPEAKER_00: Um, we make$10,000 a month together.
23:46
SPEAKER_00: Okay, great.
23:47
SPEAKER_00: We go to 45% of your income.
23:49
SPEAKER_00: That's$4,500.
23:50
SPEAKER_00: Okay.
23:51
SPEAKER_00: And I literally walk them through it and I go, okay, let's minus your debts.
23:55
SPEAKER_00: I got a car payment,$700.
23:57
SPEAKER_00: I got a little bit of credit card debt, this, this, and this, and it ends up to a thousand.
24:00
SPEAKER_00: Okay, great.
24:02
SPEAKER_00: You qualify for$3,500 mortgage payment.
24:04
SPEAKER_00: That includes taxes, insurance, and everything.
24:07
SPEAKER_00: What are we putting down?
24:08
SPEAKER_00: And then I literally walk them through in 10, 15 minutes, and I'm like, okay, and qualify for$650.
24:13
SPEAKER_00: And they're like, that was easy.
24:15
SPEAKER_00: I go, that was the easy part.
24:16
SPEAKER_00: Now let's go get the documentation.
24:18
SPEAKER_00: But it at least gives them an idea versus go to a website, apply, let me go do all this stuff.
24:24
SPEAKER_00: And then I come back and I'm like, yeah, 300 grand.
24:27
SPEAKER_00: You know what I mean?
24:27
SPEAKER_01: Yeah.
24:28
SPEAKER_01: No, I like your approach, is is that you're you're giving them the tools so that they see how this, how you're arriving at a number.
24:35
SPEAKER_01: It's it's not you're showing them, you're you're leading them with their hand.
24:40
SPEAKER_01: Which is which is what we do a lot.
24:42
SPEAKER_01: You know, we've we've created these these calculators to teach people like how we're arriving at uh cap rates and gross rate multipliers and uh return on equity.
24:49
SPEAKER_01: And like we've built what like I've spent money uh with the web developer saying it has to work this way.
24:55
SPEAKER_01: And the reason is not not necessarily that I'm using it, but I want before someone calls me and says, hey, what's the cap rate on this four unit or this eight unit building?
25:04
SPEAKER_01: I want them to tell me what it is and and say, you know, I've been doing this for six months, and this is the one time where the cap rate's been above six.
25:12
SPEAKER_01: Okay, great.
25:13
SPEAKER_01: Then that means it's a good return here in Southern California.
25:17
SPEAKER_01: Let's look at that one closer.
25:18
SPEAKER_01: But it's it's just giving people empowering them with uh that this is how these things work, and these are the um benchmarks that we're looking at.
25:27
SPEAKER_01: So I appreciate that you do that.
25:29
SPEAKER_01: All right.
25:30
SPEAKER_01: So, folks, what Chris just offered you is uh a 15 to 20 minute call.
25:34
SPEAKER_01: Okay.
25:35
SPEAKER_01: And so when he talked about Calendly, all that is, it's gonna be um calendly.com forward slash Chris, and then and then probably your last name.
25:44
SPEAKER_01: And we'll make sure to have your um you know all the details in the notes.
25:48
SPEAKER_01: But what this does is you get access into Chris's calendar.
25:52
SPEAKER_01: And so maybe you want to know if he's available next week, Tuesday at four, while you go on there.
25:56
SPEAKER_01: And if there's a slot, you take it.
25:58
SPEAKER_01: Yes.
25:58
SPEAKER_01: And if there's not a slot, you can't take it.
26:00
SPEAKER_01: But what this does is it it cuts away from, hey, Chris, when are you available?
26:05
SPEAKER_01: Let me check my calendar.
26:06
SPEAKER_01: And then you there's a lot of time being wasted.
26:09
SPEAKER_01: And so this gives you the individual control.
26:13
SPEAKER_01: Speak with Chris.
26:14
SPEAKER_01: And by the way, just because you speak with him doesn't mean that uh you're committed to working with Chris.
26:19
SPEAKER_01: I mean, talk to him, make sure that it's a good fit.
26:21
SPEAKER_01: But at this point, City National Bank is the only bank offering this program.
26:25
SPEAKER_01: And and and for my professional opinion, you better be talking to Chris because this is one of the first stops of why would you not want a better interest rate?
26:35
SPEAKER_01: Why would you not want to save on property mortgage insurance?
26:37
SPEAKER_01: Um, and on top of that, get anywhere between 20 and 50,000.
26:41
SPEAKER_01: And by the way, Chris, most of the properties that I've ran by you, all of them are 50,000.
26:45
SPEAKER_00: I know.
26:45
SPEAKER_00: Which is huge.
26:46
SPEAKER_00: It's huge.
26:47
SPEAKER_00: And I think, Juan, what we could do together is we can create a list that they reach out to you and get on your list, and you can send out maybe once a week and say, hey, here's all the properties in LA County, and I'll help you with it.
27:02
SPEAKER_00: No, for real.
27:03
SPEAKER_00: Like I have a little website that I'm using, that uh app that I'm using and pulling it.
27:07
SPEAKER_00: It's just you got to help me like format it a little bit better because I sent it out.
27:10
SPEAKER_00: I don't know if you saw it, it was just really clunky, but everyone's like, hey, can you sort by purchase price?
27:14
SPEAKER_00: Can you sort by bedrooms?
27:15
SPEAKER_00: I'm like, no, there's 4,400 homes.
27:18
SPEAKER_00: Like, but you can search by city, right?
27:21
SPEAKER_00: And that's what I was telling people.
27:22
SPEAKER_00: It's like you can work on it.
27:23
SPEAKER_00: Like, all right, I'm looking in Lakewood, California.
27:25
SPEAKER_00: Lakewood's 50 grand.
27:27
SPEAKER_00: Can you believe Lakewood, California is 50 grand?
27:29
SPEAKER_00: I'm all of all of Lakewood is not all of it, but but for the every single one I've looked up except one has been 50, not 20, 50.
27:38
SPEAKER_00: Like I assumed it was 20, and I was like, why is it fit?
27:41
SPEAKER_00: Like, hey, listen, no rhyme, no reason.
27:43
SPEAKER_00: Take the 50 and don't don't don't complain.
27:46
SPEAKER_00: Right, right.
27:47
SPEAKER_01: You know, when you say that, I'm like, why isn't every house in Lakewood going through City National Bank right now to get that type of loan?
27:53
SPEAKER_01: It's I mean, listen, in cases, you know, listen, if it's a cash purchase, obviously you there's no loan involved.
27:59
SPEAKER_01: If someone uh cannot qualify because they already have another mortgage, like in some case, but otherwise, I don't know why anyone would go anywhere else.
28:06
SPEAKER_00: Yeah, no, I mean, like I said, we've only my team's only been here about a month, right?
28:11
SPEAKER_00: And I moved my whole team over here.
28:12
SPEAKER_00: We have we're putting together an awesome group of lending talent here to help service this.
28:19
SPEAKER_00: And that's where I'm looking at this going, you guys don't even know what kind of product you have.
28:24
SPEAKER_00: City National came out with this thing, and I'm like, this thing is gonna be, you're gonna be in national news.
28:30
SPEAKER_00: It's gonna give me a few months, right?
28:32
SPEAKER_00: And every person, I'm like, literally, I was like, we're gonna probably do one out of every per eight purchases in the city of Long Beach in about six months with this product because most of these people don't own a home.
28:43
SPEAKER_00: Most of the people are between a first-time home buyer and they're under these income limits because our prices kind of fit, right?
28:49
SPEAKER_00: They fit perfectly for this product, and so that's why I tell everyone, I'm like, buckle up because you're gonna hear about City National Bank everywhere you go.
28:57
SPEAKER_00: And I thank you for telling people, and everyone's like, Chris, is this real?
29:00
SPEAKER_00: And I'm like, it is, it is.
29:02
SPEAKER_00: And I got flyers and I have payment flyers that I do for people.
29:05
SPEAKER_00: So, you know, I'm sitting there helping as many listing agents as I can going, Did you know this property?
29:11
SPEAKER_00: Uh, all at Gardena, all at Inglewood is 50 grand.
29:14
SPEAKER_00: Every single one I've looked up uh is fifty thousand dollars, and they're just everyone's jaws dropping.
29:20
SPEAKER_01: Chris, I you know, listen, I go on listing appointments, and so for those folks listening, um this is this is essentially an interview because most times someone's interviewing me and two or three other agents, and they're trying to figure out what broker do I believe could market my property the best, could get me the best offers, get me the uh, you know, the price and terms that are acceptable to me.
29:42
SPEAKER_01: And they have options.
29:42
SPEAKER_01: Like I'm, you know, I'm I I mean, I wish everyone would come to me, Chris, but um, but during these agre uh during these appointments, I'm I'm telling people, hey, did you know that this qualifies?
29:51
SPEAKER_01: They didn't know because no other agent took the time.
29:54
SPEAKER_01: No other agent, quite frankly, knows about it.
29:56
SPEAKER_01: And so um I'm using it to my advantage because what this does to me, it makes the property, it gives me another way to market the property, uh, which I think is tremendous.
30:07
SPEAKER_01: And then it also it separates me from my competition.
30:10
SPEAKER_01: It's like, hey, this person knows something that no one else knows.
30:12
SPEAKER_00: Okay, and it's fantastic, and I believe in that.
30:16
SPEAKER_00: And I also think it's gonna help you sell people more homes because when you're getting more eyeballs on a property in a market like this, we're in a little, we could say this is an interesting market, I'd like to say.
30:27
SPEAKER_00: It's not super hot where they sell in one day, but it's not dropping like you know, everyone I always tease people it's not 2007, but it's not 2021.
30:36
SPEAKER_00: It's kind of like in the between, right?
30:38
SPEAKER_00: And so I think as an agent, the more eyeballs, the more opportunities I can get, more people looking at it, is the more I'm gonna do a better job for my seller.
30:46
SPEAKER_00: I'm gonna get them the most possible money I can, and 50 grand changes things, yeah.
30:50
SPEAKER_00: Right.
30:51
SPEAKER_00: Uh the other thing I want to do talk about, you did ask me a question, I forgot, was something interesting about this product that we're missing.
30:59
SPEAKER_00: Buckle up eligible for refinances.
31:03
SPEAKER_00: Yes.
31:04
SPEAKER_00: I haven't even dove into it.
31:06
SPEAKER_00: I've just started and I got one or two going in.
31:09
SPEAKER_00: Same thing.
31:10
SPEAKER_00: Uh it's only 20, it's not 50.
31:13
SPEAKER_00: But anyone that doesn't own another home, all they own is their current home in their primary home right now.
31:20
SPEAKER_00: They can come to us, schedule appointment, and I can work up a worksheet.
31:24
SPEAKER_00: I get 20 grand to work with.
31:25
SPEAKER_00: So what does that look like today?
31:27
SPEAKER_00: Well, that looks like probably a rate in the 6% range with no mortgage insurance.
31:32
SPEAKER_00: We pay all your closing costs, we pay your prepaids, your taxes and insurance, and we're probably gonna have money left over.
31:38
SPEAKER_00: And where does that money go?
31:39
SPEAKER_00: Principal reduction.
31:41
SPEAKER_00: Wow.
31:42
SPEAKER_00: Yes.
31:42
SPEAKER_00: Wow.
31:43
SPEAKER_00: I know.
31:43
SPEAKER_00: And that one, I haven't don't have an idea how long.
31:47
SPEAKER_00: I mean, I'm gonna say it's gonna be around for 12 months, but there's gonna be a cap on how many of these refinances we're gonna be able to do.
31:53
SPEAKER_00: That will be the first one that probably goes.
31:55
SPEAKER_00: The purchases is always gonna be there.
31:56
SPEAKER_00: But right now, I'm telling people, especially if you bought in the last 18 months, 24 months, and you're sitting at seven or seven and a quarter.
32:03
SPEAKER_00: I literally picked one up on Friday and they're at seven and a quarter, and I'm like, yeah, six percent.
32:10
SPEAKER_00: I don't know,$300,000 loan.
32:12
SPEAKER_00: And I'm like, after we pay all the closing costs, your prepays, all this stuff, I'm like, I still have like nine grand left over.
32:17
SPEAKER_00: Uh, I guess we'll just do a reduction on the balance.
32:20
SPEAKER_00: And they're like, is this real?
32:21
SPEAKER_01: Yeah, yeah.
32:22
SPEAKER_01: That yes.
32:23
SPEAKER_01: Um, okay.
32:23
SPEAKER_01: So what so what Chris is saying is you bought, you currently have a home, the interest rate is high.
32:30
SPEAKER_01: So sevens or maybe high sixes.
32:32
SPEAKER_00: Yeah, high sixes are worth it.
32:34
SPEAKER_01: It would be worth it would be worth you contacting Chris and saying, How does a refinance option look in my scenario?
32:41
SPEAKER_01: Yeah.
32:41
SPEAKER_01: And you know, depending on what the loan is, and and and then you it's it's possible that doing, you know, when you get a refinance, you have to, there's money out of your pocket.
32:51
SPEAKER_01: Right in this case, with with it with some homes being eligible up to 20,000, there's gonna be no cost.
32:58
SPEAKER_00: Yeah, you're you're gonna have no cost, and there's gonna be money left over, right?
33:02
SPEAKER_00: Because refinances don't cost 20 grand, and we only can buy down the rates a certain amount, right?
33:07
SPEAKER_00: There's a cap on that.
33:08
SPEAKER_00: And so you will end up getting a principal reduction on it.
33:12
SPEAKER_00: It just depends.
33:13
SPEAKER_00: And the best way to do it, honestly, is schedule really it's schedule call semi-year mortgage statement, and then I can just I have a great system I use behind the scenes where I plug in the numbers, I spit it out, and then show them, hey, here's your monthly savings, here's how I'm applying the$20,000.
33:28
SPEAKER_00: This is the highest and best use of that$20,000.
33:31
SPEAKER_00: Got it.
33:31
SPEAKER_00: And the beauty is we have no prepays on our loans.
33:34
SPEAKER_00: So if we refinance now and rates do drop in three to six months, great, go do it again, right?
33:41
SPEAKER_00: But we we won't be eligible for the grant.
33:43
SPEAKER_00: We only get to use it once.
33:44
SPEAKER_00: Right.
33:45
SPEAKER_01: I I mean, I I think someone listening might say, Well, uh, Chris, like, should I wait?
33:50
SPEAKER_00: And I'll tell you no, because what happens if we decide we're not gonna pull out doing refinances?
33:55
SPEAKER_00: Once we start, once the word gets out and we start doing this, yeah.
33:58
SPEAKER_00: I mean, there was there's a lot of people with seven percent or six point eight seven five that could go to six right now and they would be like, uh, yeah, sign me up, right?
34:07
SPEAKER_00: Right.
34:07
SPEAKER_00: And it's just a matter of time before we start going through those and they're gonna be like, okay, we're now we need to really focus on purchases.
34:12
SPEAKER_00: I've seen programs like this, right?
34:14
SPEAKER_00: The good news is it's we're gonna have it there, you know, for a long time.
34:19
SPEAKER_00: But I think the first step would be if I was running the place, I'd be like, okay, we've done enough for refinances.
34:23
SPEAKER_00: Let's really go focus on the people that need purchases.
34:26
SPEAKER_00: Got it.
34:26
SPEAKER_01: Chris, uh, I think we're all set, man.
34:29
SPEAKER_01: Thank you so much for coming in here, folks.
34:31
SPEAKER_01: You better make uh Chris's calendarly blow up.
34:34
SPEAKER_01: Okay, I want this, I want this booked out for the next month here.
34:37
SPEAKER_01: And um, I would encourage you to to get in now.
34:40
SPEAKER_01: Um, Chris is right.
34:42
SPEAKER_01: As soon as more and more people find out about it.
34:44
SPEAKER_01: Um, I I mean, I don't know how set up City National Bank is, Chris, to to take all the inquiries that are going to be coming in.
34:52
SPEAKER_01: But for right now, where it's it's still in its infancy and a lot of people aren't talking about it, I definitely want to make sure that our people out there um reach out to you.
35:00
SPEAKER_00: Yeah, I really appreciate you having me on, Juan.
35:03
SPEAKER_00: This was a great opportunity and thank you for helping me get the word out.
35:06
SPEAKER_01: Awesome.
35:06
SPEAKER_01: Thank you.