Latest / The Table with Anthony ONeal / 100% Financing Explained: How to Buy a Home With $0 Down in 6 Months

Transcript

100% Financing Explained: How to Buy a Home With $0 Down in 6 Months · The Table with Anthony ONeal

• 0:00
  [SPEAKER_03]: yo coalition y'all back in the building.
• 0:02
  [SPEAKER_03]: I want to get straight to it man because I've had some people hitting me up recently asking me Anthony what are my thoughts on 100% financing because interest rates are not going down.
• 0:13
  [SPEAKER_03]: But we see that people are still desiring to get into a homeownership because homeownership is an important part of wealth building.
• 0:22
  [SPEAKER_03]: So with y'all's experience, I have my thoughts, but I'm curious what are your thoughts on 100% financing.
• 0:29
  [SPEAKER_03]: Like anything else, I think it depends.
• 0:30
  [SPEAKER_01]: Okay, okay.
• 0:32
  [SPEAKER_01]: I believe that if you can put more money down, you're putting yourself in a strong position for sure.
• 0:37
  [SPEAKER_01]: So I think we can all agree on that, yes, sir.
• 0:40
  [SPEAKER_01]: and if that's a little bit tougher for you, you're probably gonna have to take a little bit more risk, quite frankly, okay.
• 0:46
  [SPEAKER_01]: And so, but if you're gonna take a risk, at least let it be a manageable risk.
• 0:52
  [SPEAKER_01]: And that's why some of them 100% programs, I'm not a fan of because it raises your interest race crazy, you got PMIs, you got all these other things that they add to get there.
• 1:02
  [SPEAKER_01]: That's what I'm like, ah, hold that thought, send that back.
• 1:07
  [SPEAKER_01]: But some of the programs we've been using, they have no PMI, they have a minimum increase in interest rate and they're giving you closing costs in addition to that 100% financing.
• 1:21
  [SPEAKER_01]: So I'm a big fan of, give me free money, especially if it doesn't cost me too much.
• 1:26
  [SPEAKER_01]: Yeah.
• 1:27
  [SPEAKER_01]: If you give me money and I got to pay for it, it's one thing.
• 1:29
  [SPEAKER_01]: But if you give me money and it's a lower risk.
• 1:34
  [SPEAKER_01]: Let's talk about that.
• 1:35
  [SPEAKER_03]: Yep, for the people who are watching, what does P.I.M.R.A.
• 1:38
  [SPEAKER_03]: mean?
• 1:39
  [SPEAKER_00]: Probably mortgage insurance.
• 1:41
  [SPEAKER_03]: So, so you're telling me I'm paying insurance.
• 1:44
  [SPEAKER_00]: On the House of Homeowners Insurance I got about.
• 1:46
  [SPEAKER_00]: Absolutely, so basically the bank says, hey, we're gonna lean you this money, but if you default on this loan, we need to be able to go out and sell it to somebody else.
• 1:54
  [SPEAKER_00]: So that's the protection for the bank because think about it.
• 1:57
  [SPEAKER_00]: That gave me you more 100% financing.
• 1:59
  [SPEAKER_00]: You have no skin in the game.
• 2:03
  [SPEAKER_00]: you would have private mortgage insurance.
• 2:05
  [SPEAKER_00]: But with this 100% finance and program that we're talking about, there's no PMI, no private mortgage insurance.
• 2:12
  [SPEAKER_00]: I hate PMI, I know.
• 2:15
  [SPEAKER_00]: I know.
• 2:16
  [SPEAKER_03]: I know.
• 2:17
  [SPEAKER_03]: I really do hate it.
• 2:18
  [SPEAKER_03]: I think one of my things though, and I think about it, is like, and y'all can correct me if I'm wrong, just my thoughts, keep knowing me, he know how I work.
• 2:26
  [SPEAKER_03]: If you don't have no money to put down, can you afford the home?
• 2:30
  [SPEAKER_00]: Yeah, I mean, here's the thing.
• 2:32
  [SPEAKER_00]: affordability is super important and just because you don't have 100% why not grab that asset right now at the current market by real estate and wait don't wait to buy real estate and wait for that real estate to appreciate okay.
• 2:47
  [SPEAKER_01]: I would also say, just because I have it, doesn't mean I want to put it down.
• 2:54
  [SPEAKER_01]: So I can have some money, but I might not want to spend it.
• 2:57
  [SPEAKER_01]: And that, yeah, that creates an opportunity to keep money in your bank and you can go put that somewhere else.
• 3:02
  [SPEAKER_01]: You can put that in your index funds.
• 3:04
  [SPEAKER_01]: You can have it in your secured savings and those types of things.
• 3:08
  [SPEAKER_03]: Yeah, no, no, I'm with you because like on my last transaction with y'all, Keith will tell you that I was a headache, I mean, not even an hour before we close, we got hit with a huge, huge, huge feet and Keith said if I was, if you didn't have that cash.
• 3:27
  [SPEAKER_03]: We could not go to close today, absolutely.
• 3:30
  [SPEAKER_03]: And so that's why I was like, man, I think, are we sometimes Russian people enter home ownership when they do not have the capital to become a home owner?
• 3:39
  [SPEAKER_03]: Because trust me, I didn't want to spend that money.
• 3:41
  [SPEAKER_02]: Yeah.
• 3:43
  [SPEAKER_03]: You did that.
• 3:43
  [SPEAKER_03]: I did not want to spend that money.
• 3:45
  [SPEAKER_03]: It's not said.
• 3:46
  [SPEAKER_03]: But then when the lender said, now you got to do it because of the size of the home and it ends in the state home, I was like, ah, yeah.
• 3:54
  [SPEAKER_03]: But yeah.
• 3:56
  [SPEAKER_03]: I, I practice what I preach and I have the capital.
• 3:59
  [SPEAKER_03]: And so I get scary when I hear people get excited about 100% financing because I think I hear people saying, okay, cool, great.
• 4:06
  [SPEAKER_03]: I'm already living page at a paycheck.
• 4:08
  [SPEAKER_03]: Let me go buy this asset.
• 4:10
  [SPEAKER_03]: When really, I don't have the means to take care of the asset, now the asset becomes a liability.
• 4:15
  [SPEAKER_00]: Well, the cool thing on this program, and I'm glad you mentioned that, um, practice what you preach.
• 4:20
  [SPEAKER_00]: Yeah.
• 4:20
  [SPEAKER_00]: The lenders not even going to qualify you if you don't have enough money in the bank season.
• 4:25
  [SPEAKER_00]: We call that season money.
• 4:27
  [SPEAKER_00]: Yeah, so you have to have a certain amount of funds three to six months worth of funds in the bank to be qualified for the program.
• 4:34
  [SPEAKER_00]: So it's not just I don't have I have a zero dollars and I qualify based on my income because I don't have to I'm not good at saving.
• 4:41
  [SPEAKER_00]: Okay, so that's the game changer, right?
• 4:43
  [SPEAKER_00]: I mean, so it's it's qualified cases around you know market crash back in 2008.
• 4:47
  [SPEAKER_00]: It was it was a while I was right now.
• 4:50
  [SPEAKER_00]: We have regulations.
• 4:51
  [SPEAKER_00]: Yeah, that the banks have guidelines that the bank have to advise by
• 4:54
  [SPEAKER_00]: Yeah.
• 4:54
  [SPEAKER_00]: It comes to lending money out to customers.
• 4:56
  [SPEAKER_00]: Yeah.
• 4:57
  [SPEAKER_00]: Yeah.
• 4:57
  [SPEAKER_00]: So that's super important as well.
• 4:58
  [SPEAKER_01]: And they're also more strict on their debt to income ratios too.
• 5:01
  [SPEAKER_01]: So if you're a. Yeah.
• 5:03
  [SPEAKER_01]: So they're more strict than a standard bank, like a standard bank or a lender.
• 5:07
  [SPEAKER_01]: Sometimes they'll let you go up to 50% of your income could go towards housing.
• 5:12
  [SPEAKER_01]: It's late, no, that's important.
• 5:14
  [SPEAKER_03]: That is important because I-
• 5:16
  [SPEAKER_03]: I think I'm kind of naive to that because of my situation not having a summer that we've never had that issue.
• 5:22
  [SPEAKER_03]: We just had the crazy issues as an entrepreneur, which is so stupid.
• 5:27
  [SPEAKER_00]: That's another conversation.
• 5:28
  [SPEAKER_00]: Yeah.
• 5:29
  [SPEAKER_02]: But she offered that.
• 5:31
  [SPEAKER_03]: It's grown out, wasn't it?
• 5:32
  [SPEAKER_03]: Yeah, yeah, yeah, yeah.
• 5:33
  [SPEAKER_02]: Yeah, I know, the summer day.
• 5:34
  [SPEAKER_02]: You still giving me a headache?
• 5:36
  [SPEAKER_03]: Yeah, yeah, for sure.
• 5:37
  [SPEAKER_01]: What in the world we could talk about that yeah, but go ahead.
• 5:41
  [SPEAKER_01]: I'm sorry I'm sorry You're right on the money, man, and so basically the way I will look at this this if you made $10,000 a month just for easy math Okay, the bank would allow you listen.
• 5:52
  [SPEAKER_01]: Yeah, I'm no consumer debt would allow you up to $5,000 to go towards your Principle interest taxes insurance anything that's housing related that gets paid on the monthly basis.
• 6:03
  [SPEAKER_01]: Okay, now that's the standard bank
• 6:06
  [SPEAKER_01]: Now if you're using this program we're talking about they only allow up to about 45% or sometimes even a little bit less.
• 6:13
  [SPEAKER_01]: So they're even being more strict around like they're better to income ratio, they're strict around you know you're seasoning of your money, they're strict around the income so they don't really play that game because quite frankly the bank doesn't want to foreclose on you, isn't it?
• 6:29
  [SPEAKER_01]: That's a so, that's a headache for them too, so they're more strange and around this, which is a good for everybody, you might not like it, but it's good for you.
• 6:38
  [SPEAKER_00]: Yeah, and a lot of people don't know, and I just found this out like maybe the last two years.
• 6:44
  [SPEAKER_00]: When the bank foreclosed when a property means the person doesn't pay their loan or pay their monthly payment, that lender has to buy back the loan.
• 6:53
  [SPEAKER_00]: Meaning they get charged a certain amount for that loan foreclosing.
• 6:57
  [SPEAKER_00]: That's how strict the banks have gotten when it comes to guidelines and consumer debt.
• 7:02
  [SPEAKER_03]: Rare, explain that.
• 7:04
  [SPEAKER_00]: Yep.
• 7:04
  [SPEAKER_00]: So, I'm a lender.
• 7:05
  [SPEAKER_00]: Yep.
• 7:06
  [SPEAKER_00]: I lend you a certain amount of money for property, right?
• 7:10
  [SPEAKER_00]: 100,000.
• 7:10
  [SPEAKER_00]: 100,000.
• 7:11
  [SPEAKER_00]: Well, you go six months or eight months without paying your mortgage.
• 7:14
  [SPEAKER_00]: Yeah.
• 7:14
  [SPEAKER_00]: And the bank says, you know what?
• 7:16
  [SPEAKER_00]: We're going to have to foreclose, meaning we're going to have to take this loan back at a loss.
• 7:20
  [SPEAKER_00]: That me as the lender who will lend is you that money.
• 7:23
  [SPEAKER_00]: Yeah.
• 7:23
  [SPEAKER_00]: I get charged a fee from the company.
• 7:26
  [SPEAKER_00]: Wow.
• 7:27
  [SPEAKER_00]: Because the individual lender, the individual lender, I get charged a fee from the company for loaning you that money and for you not paying that money back.
• 7:37
  [SPEAKER_03]: Did not even know that.
• 7:38
  [SPEAKER_00]: Yeah.
• 7:38
  [SPEAKER_00]: Yeah.
• 7:38
  [SPEAKER_00]: I literally just learned that in the last two to three years.
• 7:41
  [SPEAKER_00]: So that's another way that lenders are like, okay, well,
• 7:45
  [SPEAKER_00]: Do I really want to loan this person?
• 7:48
  [SPEAKER_00]: The money?
• 7:48
  [SPEAKER_00]: Now, all lenders are not created equal.
• 7:51
  [SPEAKER_00]: Let me be clear.
• 7:52
  [SPEAKER_00]: Let me be clear, right?
• 7:53
  [SPEAKER_00]: Let me be very clear.
• 7:54
  [SPEAKER_00]: All lenders are not created equal, but the lenders that we work with, we want to make sure that you can qualify for this property and you have been practicing saving.
• 8:03
  [SPEAKER_03]: Yeah, right?
• 8:05
  [SPEAKER_03]: Yeah, no, this this is good.
• 8:06
  [SPEAKER_03]: What's the name just program that you're talking about?
• 8:08
  [SPEAKER_03]: Is it something that is is offered all over?
• 8:10
  [SPEAKER_03]: I know we're in the DMV area But is this something that my listeners can participate in?
• 8:16
  [SPEAKER_03]: Let's say they've been Texas or they're dealing with Chicago
• 8:19
  [SPEAKER_01]: it's more regional to be honest with you and so some of the um some of the lenders like so what you'll find is that every bank is like a person yeah like their own person they they operate how they they have their own space they have their own specific guidelines for their borrowers okay
• 8:36
  [SPEAKER_01]: So you might have something like that on a West Coast or another bank in the visual bank, but the bank we used there on the East Coast.
• 8:43
  [SPEAKER_01]: They're actually based out of Pennsylvania.
• 8:46
  [SPEAKER_03]: Don't, so we have a lot on the East Coast.
• 8:50
  [SPEAKER_03]: Yeah.
• 8:51
  [SPEAKER_03]: Okay, let's say if you're sitting now with me and I come to you all and I say, hey Keith,
• 8:55
  [SPEAKER_03]: Ryan, I want to get ready for this program within the next six months.
• 9:00
  [SPEAKER_03]: What are the things that I need to have in place before going to a lender as a W2 employee to make sure that when I go, I'm going to qualify for that loan.
• 9:13
  [SPEAKER_03]: You've got the message.
• 9:14
  [SPEAKER_03]: You've got the audience.
• 9:15
  [SPEAKER_03]: So why did your content still look like it was shot?
• 9:18
  [SPEAKER_03]: in a bedroom.
• 9:19
  [SPEAKER_03]: You see what I've learned is most creators are sitting on life-changing content, but they have cheap lighting, bad audio, and they're thrown together the backdrop that makes it seem like an amateur actually made it, and what I've learned is that people judge your credibility before they even hear what you have to say.
• 9:34
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• 9:40
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• 10:11
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• 10:16
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• 10:20
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• 10:33
  [SPEAKER_03]: That I already know I qualify, and now of course banks are going to be banks and they won't hit you with some media and MC comment, but what are the basic things I need to have cover life for an example credit score?
• 10:47
  [SPEAKER_03]: What is my credit score need to be for this program?
• 10:49
  [SPEAKER_01]: Yeah, credit score's gonna have to be around six, 40 or better.
• 10:52
  [SPEAKER_01]: It's not bad, it's not bad at all.
• 10:54
  [SPEAKER_01]: Cause, you know, some lenders will go down to, like, 580.
• 10:56
  [SPEAKER_01]: Yeah, yeah.
• 10:56
  [SPEAKER_01]: So, the B640, they really, so they want you to be a strong bar.
• 11:00
  [SPEAKER_01]: Yeah.
• 11:00
  [SPEAKER_01]: I think it's really to be, and it's employing the principles you always teach.
• 11:07
  [SPEAKER_01]: Yeah.
• 11:07
  [SPEAKER_03]: Five frankly.
• 11:08
  [SPEAKER_01]: And they've been, like, strict about it, right?
• 11:11
  [SPEAKER_01]: You want to come to them?
• 11:13
  [SPEAKER_01]: like as ready financially.
• 11:15
  [SPEAKER_03]: Yeah.
• 11:15
  [SPEAKER_01]: So whether you're buying a house or whether you're buying a car, whatever you're doing, you actually still need to present in that same manner, which is like financially responsible, fiscally responsible.
• 11:26
  [SPEAKER_01]: So you need to show up in that way, have a good credit score, half savings in the bank, reduce or eliminate your consumer debt.
• 11:33
  [SPEAKER_01]: Like all those things,
• 11:35
  [SPEAKER_01]: needs to be happening on a period of time because no matter what you're buying or investing in, like you need to be able to protect yourself on the back end, in case something comes up.
• 11:44
  [SPEAKER_01]: Yeah.
• 11:46
  [SPEAKER_00]: We never like to take that blindfold off and see what we really are at.
• 11:49
  [SPEAKER_00]: That's the fact, right?
• 11:51
  [SPEAKER_00]: Yeah, we have to be vulnerable with our finances, enough to take the blindfold off and say, am I messed up or am I good?
• 11:59
  [SPEAKER_00]: Because if you're messed up, then we can create a plan for you.
• 12:02
  [SPEAKER_00]: Right.
• 12:03
  [SPEAKER_00]: And actually, that plan might not take as long as you think it may take.
• 12:06
  [SPEAKER_00]: And I'll tell you this.
• 12:07
  [SPEAKER_00]: about 85% of the people that come to us, they are more ready than they think they are.
• 12:12
  [SPEAKER_00]: Are they?
• 12:13
  [SPEAKER_00]: Absolutely.
• 12:13
  [SPEAKER_00]: Absolutely.
• 12:14
  [SPEAKER_00]: Wow.
• 12:15
  [SPEAKER_00]: So when it comes to understanding where you are, you have to take the blindfold off.
• 12:19
  [SPEAKER_00]: So if you came to me today and said, hey, I want to be ready.
• 12:22
  [SPEAKER_00]: I want to be ready in six months.
• 12:23
  [SPEAKER_00]: I will get you with a lender right then and there.
• 12:27
  [SPEAKER_00]: And I would say, hey, you need to get your credit pool.
• 12:29
  [SPEAKER_00]: You need to see what's on your, what the burrows are looking, what the burrows are saying you have as far as debt, right?
• 12:35
  [SPEAKER_00]: I would say, hey, you need to quality, if you want to pay a $4,000 a month mortgage, you need to understand what sales price that looked like.
• 12:44
  [SPEAKER_00]: Because it might not be the sales price you think it is.
• 12:46
  [SPEAKER_00]: That's a lot of the times, it's not.
• 12:48
  [SPEAKER_00]: Let me be clear, right?
• 12:50
  [SPEAKER_00]: And...
• 12:51
  [SPEAKER_00]: when it comes to going to that lender and sitting down with them, all that stuff matters because now you have a plan.
• 12:56
  [SPEAKER_00]: Now you have a goal to work towards, because if you don't have that goal to work towards, you're just out here fighting and winging it.
• 13:02
  [SPEAKER_00]: We don't like to winging it.
• 13:02
  [SPEAKER_00]: Hmm.
• 13:03
  [SPEAKER_02]: Yeah.
• 13:03
  [SPEAKER_01]: Now one thing I want to point out to you, I'm let it have moment because you're right there.
• 13:06
  [SPEAKER_01]: Yeah, you're right there, you're right there, you're right there, you're right there, you're right there, you're right there, you're right there, you're right there, you're right there, you're right there, you're right there, you're right there, you're right there, you're right there, you're right there, you're right there, you're right there, you're right there, you're right there, you're right there, you're right there, you're right there, you're right there, you
• 13:21
  [SPEAKER_03]: Like, I don't want to think anything that you do in life, if you do it, hoping that you do it, blindfolded, you're not going to really be successful.
• 13:28
  [SPEAKER_03]: Yeah.
• 13:29
  [SPEAKER_03]: And it's like, but here's the thing, too, here's what I've learned.
• 13:34
  [SPEAKER_03]: You can work the plan, but when it comes to financing a home, you can be playing ready that bank and still throw a monkey wrench in.
• 13:42
  [SPEAKER_03]: I feel like, at the, I made broke.
• 13:44
  [SPEAKER_03]: And coming from Lionkey, yeah, don't,
• 13:47
  [SPEAKER_03]: I was getting dressed to go to clothes and looling.
• 13:50
  [SPEAKER_03]: Absolutely.
• 13:50
  [SPEAKER_03]: And keep calls, man.
• 13:51
  [SPEAKER_03]: A-Broad?
• 13:54
  [SPEAKER_03]: I'm excited.
• 13:57
  [SPEAKER_02]: And when he keeps saying it's a bro He Yeah, some you got some come And I know keep keep this like I know you got it, but I don't want to tell you right I don't want you
• 14:18
  [SPEAKER_03]: I was like, keep, I was like, you got it be kidding me bro.
• 14:22
  [SPEAKER_03]: Yeah.
• 14:23
  [SPEAKER_03]: I'm coming in this thing.
• 14:24
  [SPEAKER_03]: Clean, keep, my, my taxes, what we got one small issue of my taxes.
• 14:30
  [SPEAKER_03]: We had to correct and we wish I didn't know that, but that was an easy, easy, easy face.
• 14:33
  [SPEAKER_03]: My CPA got on that real quick.
• 14:35
  [SPEAKER_03]: Oh yeah.
• 14:35
  [SPEAKER_03]: And then the other stuff is just like entrepreneurship.
• 14:39
  [SPEAKER_03]: It's like, I think.
• 14:42
  [SPEAKER_03]: Five years, crazy money.
• 14:44
  [SPEAKER_03]: We show one year of me not making crazy money because it was part of my tax strategy that year.
• 14:52
  [SPEAKER_03]: Dang me.
• 14:53
  [SPEAKER_03]: Yeah.
• 14:54
  [SPEAKER_03]: So it was like, you can have the plan.
• 14:56
  [SPEAKER_03]: Yeah.
• 14:58
  [SPEAKER_03]: And I think it makes it easier, but then I wonder like, dang, what if I didn't have that plan with that situation?
• 15:04
  [SPEAKER_03]: Yeah, right.
• 15:05
  [SPEAKER_03]: Right, what if I was just hoping and then just doing what the average everyday social media world says is right off everything and come zero, you know what I'm saying?
• 15:12
  [SPEAKER_02]: It's so negative.
• 15:14
  [SPEAKER_02]: Oh my god, thank you for saying.
• 15:15
  [SPEAKER_02]: You know what I'm saying?
• 15:16
  [SPEAKER_03]: We don't talk about that.
• 15:17
  [SPEAKER_03]: We don't talk about that.
• 15:18
  [SPEAKER_02]: Because I'm like, well, dang, y'all, I didn't do with the internet set.
• 15:21
  [SPEAKER_02]: I wrote it off one out of five years.
• 15:24
  [SPEAKER_00]: Yeah, yeah.
• 15:25
  [SPEAKER_00]: Yeah.
• 15:26
  [SPEAKER_02]: And the bank still gave me heck over that, yeah, but I'm like, but if I go off of the financial gurus and experts on social medias, I should have been doing that every single year.
• 15:38
  [SPEAKER_03]: So it's like when you get the right plan when it comes to home ownership and correct me if I'm wrong and come out of you, right?
• 15:46
  [SPEAKER_03]: You're still going to face something.
• 15:48
  [SPEAKER_01]: Yeah.
• 15:48
  [SPEAKER_01]: Hmm, Stu, it's gonna be a varsity.
• 15:51
  [SPEAKER_03]: Yeah.
• 15:52
  [SPEAKER_01]: That's part of the game, man.
• 15:53
  [SPEAKER_01]: Like, any investment, it's not easy and passive, right?
• 15:58
  [SPEAKER_01]: You've got to learn the game.
• 15:59
  [SPEAKER_01]: You've got to go through ups and downs, bumps and bruises.
• 16:02
  [SPEAKER_00]: Yeah.
• 16:03
  [SPEAKER_01]: But you're making a long-term play on it.
• 16:04
  [SPEAKER_01]: That's it.
• 16:05
  [SPEAKER_00]: Long-term play is key.
• 16:07
  [SPEAKER_00]: I can't tell you any investment.
• 16:10
  [SPEAKER_00]: I've made, you've seen a majority of my investments.
• 16:12
  [SPEAKER_00]: I made that has been smooth selling, huh?
• 16:15
  [SPEAKER_00]: You haven't had one key?
• 16:18
  [SPEAKER_00]: it's not designed.
• 16:19
  [SPEAKER_00]: If it was easy, everybody could write that so far.
• 16:22
  [SPEAKER_00]: You know what I mean?
• 16:23
  [SPEAKER_00]: And I'm the best at finding deals.
• 16:25
  [SPEAKER_00]: That's what I do on a daily basis, right?
• 16:27
  [SPEAKER_00]: So if it's not easy for me, yeah, which think you think I'm easy for the, you know what I mean?
• 16:33
  [SPEAKER_01]: I heard the term phrase that profit is on natural.
• 16:36
  [SPEAKER_01]: Yes, it's unnatural, you saw everything you're doing to get profit is gonna be a little bit of a uphill battle because it's not natural.
• 16:45
  [SPEAKER_00]: We just did a deal and then we'd be very clear.
• 16:48
  [SPEAKER_00]: We just did it.
• 16:49
  [SPEAKER_00]: We did a deal three, four, five years ago.
• 16:51
  [SPEAKER_00]: I fought him on.
• 16:52
  [SPEAKER_00]: I was like, oh my god, this is so hard.
• 16:55
  [SPEAKER_00]: It's so hard.
• 16:56
  [SPEAKER_01]: Well, we did a big and a paperwork, all that stuff you're talking about.
• 16:59
  [SPEAKER_00]: I mean, every week had knee, something new, something new, something new, something new, something new, something new, something new, something new, something new, something new, something new, something new, something new, something new, something new, something new, something new, something new, something new, something new, something new, something new, something new, something new, something new, something new, something new, something new, something new, something new, something new, something new, something new, something new, something new, something new, something new, something new, something new, something new, something new.
• 17:24
  [SPEAKER_01]: And this was a big deal.
• 17:25
  [SPEAKER_01]: I mean, it was going on $20 million work for real estate on it.
• 17:31
  [SPEAKER_01]: So it's a big project.
• 17:32
  [SPEAKER_01]: It was a big project.
• 17:32
  [SPEAKER_01]: Yeah, for sure.
• 17:33
  [SPEAKER_01]: The biggest project we've ever done, from 100%.
• 17:34
  [SPEAKER_01]: Yeah.
• 17:35
  [SPEAKER_01]: Yeah, 100 units, 20 million.
• 17:39
  [SPEAKER_03]: Yeah.
• 17:39
  [SPEAKER_03]: I want to point, I'm curious.
• 17:41
  [SPEAKER_03]: At what point are you, because when I hear people say, I got 20 million here.
• 17:48
  [SPEAKER_03]: Got 10 million here, two million here, one million here, I have million here.
• 17:51
  [SPEAKER_03]: At what point do you have too much?
• 17:55
  [SPEAKER_01]: You know what I'm saying?
• 17:56
  [SPEAKER_01]: Too much?
• 17:58
  [SPEAKER_01]: I thought the song said never too much, but ever to know.
• 18:01
  [SPEAKER_03]: I'm just like, at what point do I have too much real estate up beneath my name?
• 18:08
  [SPEAKER_00]: You know, I would say it's not a number.
• 18:10
  [SPEAKER_00]: It's a feeling.
• 18:11
  [SPEAKER_00]: It's stress.
• 18:12
  [SPEAKER_00]: You know, when I go to my clients, right?
• 18:14
  [SPEAKER_00]: And this is my everyday clients who own a home and look into buy their move home.
• 18:21
  [SPEAKER_00]: 95% of the time it comes down to this thing right here.
• 18:25
  [SPEAKER_00]: Do you want to be a landlord or not?
• 18:28
  [SPEAKER_00]: Literally do you have the capacity in a bandwidth to be a landlord because everybody doesn't and that's okay That's totally fine.
• 18:35
  [SPEAKER_00]: If you do Let me show you the plan But you have to be honest with yourself So I would say too much real estate it comes down to the stress the capacity in a bandwidth and you can go get a property manager all day long But you still have to manage the property on your first share 100%
• 18:51
  [SPEAKER_01]: And I would say that like, and that's actually really good.
• 18:54
  [SPEAKER_01]: And that's a great question.
• 18:56
  [SPEAKER_01]: I think it boils down to talking to having a plan.
• 19:00
  [SPEAKER_01]: How much of your portfolio do you want to be in real estate?
• 19:05
  [SPEAKER_01]: And then once you get to that, do you need to reposition your portfolio?
• 19:09
  [SPEAKER_01]: Do you need to real sign some value to another place?
• 19:13
  [SPEAKER_01]: In your portfolio, because maybe you're not enjoying that part of your portfolio.
• 19:17
  [SPEAKER_01]: as much.
• 19:18
  [SPEAKER_01]: That's like a real thing.
• 19:18
  [SPEAKER_03]: We've had to do it.
• 19:19
  [SPEAKER_03]: No, no, listen.
• 19:23
  [SPEAKER_03]: I have a portfolio of real estate.
• 19:24
  [SPEAKER_03]: Yeah.
• 19:24
  [SPEAKER_03]: I am starting to not like the landlord side of things.
• 19:28
  [SPEAKER_03]: Yeah.
• 19:29
  [SPEAKER_03]: It's a headache.
• 19:30
  [SPEAKER_03]: Yeah.
• 19:31
  [SPEAKER_03]: You know, it's a headache, you know, and I don't want to say too much because my people watch me.
• 19:37
  [SPEAKER_01]: So, well, here's what I was saying.
• 19:40
  [SPEAKER_01]: And this is actually the next level combo.
• 19:42
  [SPEAKER_01]: And I can't
• 19:45
  [SPEAKER_01]: There is something about having the manage other people that takes up time.
• 19:50
  [SPEAKER_01]: We accept that we know that, right?
• 19:51
  [SPEAKER_01]: But we say, hey, we're playing a game because we want the cash flow.
• 19:54
  [SPEAKER_01]: We want the equity build up over time.
• 19:56
  [SPEAKER_01]: But when you look at the, I look at some of my mentors and the game they're playing, and what they're doing is flipping, they, they build a value, and then they turn it over to a different asset class that's less headaches, and they just keep moving up.
• 20:09
  [SPEAKER_01]: So I have one mentor.
• 20:10
  [SPEAKER_01]: He's been going out buying, um,
• 20:13
  [SPEAKER_01]: Buy in the land on under the Starbucks.
• 20:17
  [SPEAKER_01]: So like wherever Starbucks is He's trading up his properties like rental properties and stuff and he's buying Like basically triple net lease from a Starbucks, so they pay for everything
• 20:29
  [SPEAKER_01]: Right, it might be a double lead double net, too, just depending.
• 20:32
  [SPEAKER_01]: So that's more technical, but like basically they're pan for everything and he's going to check every month.
• 20:38
  [SPEAKER_01]: It's less doors, but the cash flow is consistent.
• 20:42
  [SPEAKER_01]: He already knows where he's going to get because.
• 20:44
  [SPEAKER_01]: Starbucks going pay for sure.
• 20:46
  [SPEAKER_02]: They they top tier.
• 20:48
  [SPEAKER_01]: So I've seen some of my mentors and some of my people that I look up to.
• 20:51
  [SPEAKER_01]: They take their 150 units and then they 1031 exchange it.
• 20:56
  [SPEAKER_01]: They sell it and then they move it to these other asset classes that's less headache.
• 21:00
  [SPEAKER_01]: But they got the value from doing what they did first and then moving it up.
• 21:05
  [SPEAKER_01]: Yeah.
• 21:05
  [SPEAKER_03]: I'm going to talk about this because I mean, I brought it up out of nowhere and I was like, yo, I think we need to talk about this.
• 21:11
  [SPEAKER_03]: When
• 21:13
  [SPEAKER_03]: It maybe we bring back on a CPA and have this conversation to or whoever need to bring my call and put it online, this is all you see from these financial experts in gurus, which is why I've never heard me call myself financial expert or writing.
• 21:29
  [SPEAKER_03]: Other people may call me that, but I will never say on that, right?
• 21:32
  [SPEAKER_03]: Is not, man, not, heck no.
• 21:34
  [SPEAKER_03]: But, bro, they teach entrepreneurs, get into entrepreneurship,
• 21:42
  [SPEAKER_03]: and right off every single thing, yeah, yeah.
• 21:47
  [SPEAKER_03]: And I've never had to deal with the purchasing homes because I've always showed income, right there.
• 21:53
  [SPEAKER_03]: And it wasn't until my tax strategy in 2024 that my CPA said, hey, this is the strategy for this year.
• 22:03
  [SPEAKER_03]: Yeah, right?
• 22:05
  [SPEAKER_03]: Yeah.
• 22:05
  [SPEAKER_03]: And do you have any plans on buying anything?
• 22:07
  [SPEAKER_03]: I was like, nah, at the time I wasn't.
• 22:11
  [SPEAKER_03]: So we wrote off a lot, legally, ethically, morally and spiritually for me, right, never been audited by the IRS, never had none of the issues.
• 22:20
  [SPEAKER_03]: Then I go to finance the first time we got this house, I would say it's easy, but it was it was much easier for sure, for sure.
• 22:27
  [SPEAKER_03]: You know, and then go to get this new house,
• 22:32
  [SPEAKER_03]: Bro, I mean, every day I'm getting a call.
• 22:35
  [SPEAKER_03]: I think two times I told Keep, man, I'm out.
• 22:37
  [SPEAKER_03]: Yeah, you did.
• 22:39
  [SPEAKER_03]: I said, bro, I'm out.
• 22:39
  [SPEAKER_03]: You did.
• 22:40
  [SPEAKER_03]: She looked, too much, too much.
• 22:41
  [SPEAKER_00]: Look, man, we have some good effort on my weight.
• 22:44
  [SPEAKER_00]: Because I didn't want you to do it in the first place.
• 22:46
  [SPEAKER_03]: But since we're doing it, yeah.
• 22:48
  [SPEAKER_03]: You got a deal now.
• 22:51
  [SPEAKER_03]: All right.
• 22:51
  [SPEAKER_03]: I mean, and the lady, I'm so happy that I got the home that I had.
• 22:55
  [SPEAKER_03]: Oh, yeah.
• 22:55
  [SPEAKER_03]: Because the lady and her husband, who unfortunately passed a year ago, when I just love her spirit, and the home is beautiful.
• 23:03
  [SPEAKER_03]: It was love.
• 23:04
  [SPEAKER_03]: I got to do a lot of remodeling, which I wanted to talk about that too, but what's your thoughts?
• 23:10
  [SPEAKER_03]: When you hear people online telling people to go out there and ride off everything, I understand tax strategy.
• 23:17
  [SPEAKER_03]: But for home ownership and purchasing home, is that the right strategy?
• 23:22
  [SPEAKER_00]: A lot of times when people know, not for everyone.
• 23:27
  [SPEAKER_00]: Not for everyone.
• 23:28
  [SPEAKER_00]: Yeah, yeah.
• 23:29
  [SPEAKER_00]: And let me tell you why.
• 23:30
  [SPEAKER_00]: A lot of times when people hear, let me write off everything.
• 23:34
  [SPEAKER_00]: That CPA is not educating them on, hey, if you go to buy something,
• 23:40
  [SPEAKER_00]: The bank will look at you making X.
• 23:42
  [SPEAKER_00]: This is what the bank will look at.
• 23:43
  [SPEAKER_00]: If I write off everything, this is how much you made in this year.
• 23:46
  [SPEAKER_00]: So therefore, you can't qualify.
• 23:48
  [SPEAKER_00]: That's why what we do, we'll say, hey, before you file your taxes, before you file your taxes, let us immediately talk to the lender to say, hey, if I want to qualify for X amount of dollars, how much do I need to write off?
• 24:00
  [SPEAKER_00]: Yes, sir.
• 24:01
  [SPEAKER_00]: You know what I'm saying?
• 24:02
  [SPEAKER_00]: And people hearing these gurus, and I hate when gurus say that because they're saying that without a plan behind it.
• 24:09
  [SPEAKER_00]: There's just Santa for Cleopate.
• 24:10
  [SPEAKER_03]: Yeah, but then just what they're saying.
• 24:11
  [SPEAKER_03]: They'll say, do that and then go get a, which team Keith went at it.
• 24:16
  [SPEAKER_03]: Oh, you did it.
• 24:17
  [SPEAKER_03]: We went at it, y'all.
• 24:19
  [SPEAKER_03]: You can get a P&L statement, though.
• 24:21
  [SPEAKER_03]: And I was like, yeah, but I'm interested.
• 24:22
  [SPEAKER_03]: It's going to be high as a key?
• 24:24
  [SPEAKER_03]: No, if I can't get a convention, a little, I'm not doing it.
• 24:28
  [SPEAKER_03]: I'm serious.
• 24:28
  [SPEAKER_02]: I'm serious.
• 24:29
  [SPEAKER_02]: Oh, I know.
• 24:29
  [SPEAKER_02]: I said, man, I worked hard.
• 24:30
  [SPEAKER_02]: I said, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no,
• 24:42
  [SPEAKER_02]: There's a lady out of conversation with, I promise you, but I bet, oh, I'm in there like, bro, I got to practice what I preach.
• 24:50
  [SPEAKER_03]: I'm going to phone privately with this man.
• 24:52
  [SPEAKER_03]: Yeah, I'm like, bro, that could come off like I am not practicing what I preach and I got to do it behind closed door.
• 25:01
  [SPEAKER_03]: and it was keep that educated me on everything that was going on because it was like bro you're making good money but unfortunately because of this strategy, this was going on.
• 25:10
  [SPEAKER_03]: So there's nothing wrong with a bank statement loan or a P&L statement loan, right?
• 25:16
  [SPEAKER_03]: You still, I still had to put down crazy money.
• 25:20
  [SPEAKER_03]: Yeah, so I'm still there, but I'm like, because I Anthony is okay, but as be honest, that interest rate was higher than it conventional.
• 25:29
  [SPEAKER_03]: Yeah.
• 25:30
  [SPEAKER_03]: So it's like, if you're going to tell this online, tell the fool truth.
• 25:35
  [SPEAKER_03]: That's indeed because you're misleading the people think and then they get there and they're able to okay Do I want this house you can't afford because they interest rate is up higher so that $4,000 payment at this rate could get you this kind of house But at this rate.
• 25:50
  [SPEAKER_03]: Yeah, now you down there home.
• 25:51
  [SPEAKER_00]: Yep.
• 25:51
  [SPEAKER_00]: No, and I would have never suggested that for anybody else just because Of the rate right and remember what I say hey we can get into this rate.
• 26:01
  [SPEAKER_00]: Yeah
• 26:02
  [SPEAKER_00]: being going to be married to this rate right right always get out of it.
• 26:05
  [SPEAKER_00]: Yeah.
• 26:05
  [SPEAKER_00]: Yeah.
• 26:05
  [SPEAKER_00]: Yeah.
• 26:06
  [SPEAKER_03]: Well, what would you have told someone right now they're entrepreneur?
• 26:10
  [SPEAKER_03]: I'm curious.
• 26:12
  [SPEAKER_03]: They're entrepreneur.
• 26:14
  [SPEAKER_03]: They want to get into a home.
• 26:19
  [SPEAKER_03]: but they wrote everything off.
• 26:21
  [SPEAKER_03]: But would you tell them, hey, wait two years, would you say wait a year?
• 26:26
  [SPEAKER_03]: Like, what's this strategy for a young entrepreneur?
• 26:29
  [SPEAKER_03]: I'm gonna say young, I'm talking about a person's been a business for maybe three to five years.
• 26:34
  [SPEAKER_01]: Yeah, well, you're gonna need two years of tax returns anyway.
• 26:38
  [SPEAKER_01]: Yep.
• 26:39
  [SPEAKER_01]: As a entrepreneur, no, it was three at one point in time.
• 26:42
  [SPEAKER_01]: Different banks might have different or season and requirements from that perspective.
• 26:47
  [SPEAKER_01]: But a lot of times, some banks will even take one.
• 26:49
  [SPEAKER_01]: But honestly, it's the season, the season of life, meaning like, where we are in the cycle, they might be a little bit more lenient, and then sometimes they're gonna be a little bit more stricter.
• 26:59
  [SPEAKER_01]: Yeah, so, but generally, two years is like, they wanna see two years of kind of consistency in there.
• 27:06
  [SPEAKER_01]: So, if you're three years in, you wrote everything off the last three years, like, you got one of two choices, either you got to go back and change it.
• 27:14
  [SPEAKER_01]: Because you pan, you can do an amendment like a minute or right, or you're going to have to say, I got a two-year plan and look for it.
• 27:20
  [SPEAKER_01]: So, it's not to be on your personal, like, that's a personal preference on that.
• 27:25
  [SPEAKER_01]: and say, hey, let's put a plan in place, right?
• 27:28
  [SPEAKER_00]: And I know this may sound simple and easy, but I work with a lot of business owners and they don't have this.
• 27:35
  [SPEAKER_00]: You need to have a profit and law statement.
• 27:40
  [SPEAKER_00]: But you mean P&L people?
• 27:41
  [SPEAKER_00]: Yeah.
• 27:43
  [SPEAKER_03]: I know it sounds stuff for me.
• 27:44
  [SPEAKER_03]: Yeah, for sure.
• 27:45
  [SPEAKER_03]: But Role, you know how many people I don't talk to?
• 27:48
  [SPEAKER_03]: Who else?
• 27:48
  [SPEAKER_03]: Right.
• 27:48
  [SPEAKER_03]: Because we don't have a P&L statement.
• 27:51
  [SPEAKER_03]: Like, Role, you don't do bookkeeping every month?
• 27:53
  [SPEAKER_00]: No.
• 27:54
  [SPEAKER_00]: Yes, Christ.
• 27:54
  [SPEAKER_00]: Exactly.
• 27:55
  [SPEAKER_03]: It's exactly.
• 27:56
  [SPEAKER_02]: And it's not hard.
• 27:57
  [SPEAKER_03]: It's not.
• 27:58
  [SPEAKER_03]: Connect QuickBooks.
• 27:59
  [SPEAKER_03]: Hey, I need a check.
• 28:01
  [SPEAKER_03]: Mm-hmm.
• 28:02
  [SPEAKER_03]: Connect QuickBooks.
• 28:02
  [SPEAKER_03]: I need a check.
• 28:05
  [SPEAKER_03]: Uh, but I'm just saying connect quick books to your to your all your accounts, man.
• 28:09
  [SPEAKER_03]: Yeah, and I don't I don't never see anything because we charge at the two simple cars on my account And also connected to my bank account to see all the income coming in right and then they see it on our two business cards boom, all the income going out Boom, yeah, but you know what else no, it doesn't you do one thing every lender has said that they liked about me was I actually get a pay roll check myself
• 28:34
  [SPEAKER_03]: that helps.
• 28:34
  [SPEAKER_03]: That helps a lot.
• 28:35
  [SPEAKER_03]: That's the next level.
• 28:37
  [SPEAKER_03]: I didn't know that though.
• 28:39
  [SPEAKER_03]: Why is that important?
• 28:40
  [SPEAKER_03]: Because I think the majority of business owners, specifically African-Americans, small business owners, they're just taking money out of their business account and paying them mortgage, paying the rent, paying their paying that, and not really having a different type of payroll method.
• 28:54
  [SPEAKER_03]: Why does that matter to the lender to see a W2 check from my actual company if I'm 100%
• 29:04
  [SPEAKER_01]: they're just scary man's scary to be honest with you they're just scary and they're saying like when you just take money out of business account there's a level of inconsistency there and there's a when you have a w two there's a there's a level of discipline that you have with your business we just talk at high level right like there's a level discipline that you have and they see that
• 29:25
  [SPEAKER_01]: because of what you're doing, because there's a cost to it.
• 29:29
  [SPEAKER_01]: So, you know, it's like, that also means your paying your taxes.
• 29:32
  [SPEAKER_01]: I don't feel a mere tax on me.
• 29:34
  [SPEAKER_01]: Right, exactly.
• 29:34
  [SPEAKER_02]: A hundred of less is correct.
• 29:37
  [SPEAKER_02]: Man, we're using this.
• 29:38
  [SPEAKER_01]: Do the same.
• 29:38
  [SPEAKER_02]: Yeah, yeah, I feel you.
• 29:40
  [SPEAKER_02]: You feel you.
• 29:41
  [SPEAKER_02]: I'm like, this is crazy.
• 29:43
  [SPEAKER_01]: You're serious.
• 29:43
  [SPEAKER_01]: A hundred percent.
• 29:44
  [SPEAKER_01]: So yeah, I think there's just like a level of it shows that you are responsible.
• 29:49
  [SPEAKER_01]: Yeah.
• 29:50
  [SPEAKER_01]: That's it.
• 29:50
  [SPEAKER_01]: Because it all boils down to responsibility.
• 29:52
  [SPEAKER_01]: Yeah, yep.
• 29:53
  [SPEAKER_01]: Like, and when you roll it all the way up to how somebody is going to give you money, it's because they trust you to be responsible.
• 30:01
  [SPEAKER_00]: And more than you do have that, because let's be clear.
• 30:04
  [SPEAKER_00]: The lender's going to see your stuff.
• 30:05
  [SPEAKER_00]: The processor is going to see your stuff, but then the underwriters.
• 30:09
  [SPEAKER_00]: and the underriders ain't no joke, right?
• 30:13
  [SPEAKER_00]: And sometimes because you had that level of responsibility, they will say, oh, that person has that level of responsibility we're going to sign off on this loan.
• 30:21
  [SPEAKER_01]: Yeah.
• 30:21
  [SPEAKER_01]: It may seem because like it also provides clarity.
• 30:24
  [SPEAKER_01]: Yep.
• 30:24
  [SPEAKER_01]: Think about if someone has to go through your zero dollar business that brought in whatever 200,000, 300,000, but it says zero dollars.
• 30:35
  [SPEAKER_01]: Now I got to go through and look.
• 30:38
  [SPEAKER_03]: at this, and decipher what happened.
• 30:41
  [SPEAKER_01]: where a P&L statement is gonna say it's what happened.
• 30:44
  [SPEAKER_01]: Yeah, is that this is how much profit this person took home.
• 30:47
  [SPEAKER_01]: Yeah, see, they pay taxes on a federal tax to state taxes.
• 30:50
  [SPEAKER_01]: Yes.
• 30:51
  [SPEAKER_01]: But I noticed how much they're making.
• 30:53
  [SPEAKER_01]: I can almost correlate that to like a W2L and say, okay, yeah, they get 150 ground, 50.
• 30:57
  [SPEAKER_01]: Okay, awesome.
• 30:58
  [SPEAKER_01]: Well, I would normally land this much money to someone who makes 150.
• 31:02
  [SPEAKER_01]: I think we're probably gonna be in the same boat.
• 31:04
  [SPEAKER_01]: Don't worry, similar.
• 31:05
  [SPEAKER_03]: Yeah, no, I didn't, I didn't know that, man.
• 31:07
  [SPEAKER_03]: We have, I'm so grateful that I literally,
• 31:12
  [SPEAKER_03]: I listen, I learn, and I apply.
• 31:15
  [SPEAKER_03]: because we've never had those issues with me.
• 31:19
  [SPEAKER_03]: We've always had the other issues.
• 31:20
  [SPEAKER_03]: Well, hey, I didn't even know this tool was like, and which is so important for the P&L statement.
• 31:26
  [SPEAKER_03]: You know, one might, I think why I didn't put it in the right there, but it was a huge six-figure check that came in, and they called me and Keith asked him, well, what is this?
• 31:35
  [SPEAKER_03]: All those income.
• 31:37
  [SPEAKER_03]: It was one time.
• 31:39
  [SPEAKER_03]: It was a deal.
• 31:40
  [SPEAKER_03]: And that's something that I am learning, like in my space, a lot of banks are not really familiar
• 31:46
  [SPEAKER_03]: So they question a lot of things and I'm like, you know, this is crazy, but it was just good to have that P&L statement There was something else that I asked for that was in the side of QuickBooks
• 31:57
  [SPEAKER_03]: or it was a couple of deals.
• 31:59
  [SPEAKER_00]: It was, yeah, it was a couple of deals.
• 32:01
  [SPEAKER_00]: It was just art.
• 32:03
  [SPEAKER_00]: It was, it was, it caught my attention.
• 32:05
  [SPEAKER_00]: I remember it, yeah, yeah, yeah, yeah, yeah.
• 32:07
  [SPEAKER_00]: I remember it.
• 32:08
  [SPEAKER_00]: It was actually, yeah, I was it.
• 32:11
  [SPEAKER_00]: Yeah, it was, it was just over, like, what happened this, then another one happened at this time, and so they were like, well, yeah, why isn't it happening?
• 32:19
  [SPEAKER_00]: You know what I mean?
• 32:19
  [SPEAKER_00]: Why's it happening?
• 32:20
  [SPEAKER_00]: I was like, yeah, exactly.
• 32:21
  [SPEAKER_00]: Is that, it's just the nature of the game, no.
• 32:23
  [SPEAKER_00]: Yeah, it is.
• 32:24
  [SPEAKER_00]: And that's another thing too, like,
• 32:27
  [SPEAKER_00]: we're going to have those type of, uh, we want those type of deals.
• 32:30
  [SPEAKER_00]: We want to do those type of deals.
• 32:31
  [SPEAKER_00]: We want to be able to go to the lenders say, hey, we are doing these type of deals but when the lender and they come back.
• 32:39
  [SPEAKER_00]: It's important that the lender that we use understands and us, right, understand what we're doing and have a lend to a lot of entrepreneurs, right?
• 32:50
  [SPEAKER_00]: Because the bank does not have love.
• 32:51
  [SPEAKER_00]: That's a for a self-employed person.
• 32:53
  [SPEAKER_03]: That's just clear.
• 32:54
  [SPEAKER_03]: You know what I mean?
• 32:55
  [SPEAKER_03]: Hey, down this was fun.
• 32:57
  [SPEAKER_03]: Now, both of them are good friends.
• 32:58
  [SPEAKER_03]: So if y'all watching it, so love y'all appreciate y'all.
• 33:01
  [SPEAKER_03]: Hey, but man, but keep boy, keep talking to something on this trip.
• 33:05
  [SPEAKER_03]: Bro, he taught me something and which I don't want to talk about this because I think, even Debbie, two people can do this.
• 33:12
  [SPEAKER_03]: My first bank that we went with gave me a high quote, keep was like, bro, go get another quote.
• 33:18
  [SPEAKER_03]: I was like, nah, man, I'm loyal, keep saying you could be loyal, but bro, go get another quote.
• 33:22
  [SPEAKER_03]: Yeah.
• 33:23
  [SPEAKER_03]: I was like, key, no.
• 33:25
  [SPEAKER_03]: So I stuck, I stuck, stuck, ooh, for like a month and it keeps was like,
• 33:31
  [SPEAKER_03]: and forget this man, you're my boy.
• 33:32
  [SPEAKER_03]: So he called his guy, it's like, you need to get a quote.
• 33:35
  [SPEAKER_03]: His guy comes back and kills this quote.
• 33:40
  [SPEAKER_03]: So I said, what?
• 33:42
  [SPEAKER_03]: So I get upset and I go back to my guy, I'm like, bro, how come you ain't giving me this?
• 33:46
  [SPEAKER_03]: This is what they gave me.
• 33:47
  [SPEAKER_03]: He was like, I can give you that.
• 33:50
  [SPEAKER_03]: What?
• 33:50
  [SPEAKER_03]: It's good and I said, where?
• 33:51
  [SPEAKER_03]: And the key was like, okay, send it back.
• 33:52
  [SPEAKER_02]: I said, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah
• 34:09
  [SPEAKER_03]: Eventually we landed with my guy because he did it ultimately came with the better deal, but as be honest, and I love my guy and I love him won't say his name because he watched with the show, both of them watch the show.
• 34:20
  [SPEAKER_03]: But I think that's important for us to understand the power of negotiate.
• 34:25
  [SPEAKER_03]: That saved me a grand a month.
• 34:28
  [SPEAKER_03]: That's for a money from just negotiating.
• 34:31
  [SPEAKER_03]: Yes.
• 34:37
  [SPEAKER_00]: We have to literally, and I run that play, we run that play a lot because not a lot of people know that.
• 34:44
  [SPEAKER_03]: I didn't know that, but I thought y'all, I mean, I thought every bank will give me the interest rate and they can give me the same thing.
• 34:49
  [SPEAKER_00]: Yeah, but my fiduciary responsibility is to you at the end of the day, right?
• 34:55
  [SPEAKER_00]: And we want our clients getting the best deal because that one came up as $12,000 a year.
• 35:01
  [SPEAKER_00]: Facts, you know.
• 35:02
  [SPEAKER_00]: Hey, Max.
• 35:03
  [SPEAKER_00]: Keep adding that up, right?
• 35:04
  [SPEAKER_00]: Well, it's 60 grand in five years.
• 35:06
  [SPEAKER_00]: Yeah.
• 35:06
  [SPEAKER_00]: Yep.
• 35:06
  [SPEAKER_00]: So no, it's a 30 years.
• 35:09
  [SPEAKER_00]: There you go.
• 35:11
  [SPEAKER_00]: That's 60 grand in five years that you've saved.
• 35:12
  [SPEAKER_00]: Right, right.
• 35:13
  [SPEAKER_00]: I'm thinking about the long term, right?
• 35:14
  [SPEAKER_00]: Right, right.
• 35:15
  [SPEAKER_00]: Right, so that absolutely W2 employees can do it.
• 35:19
  [SPEAKER_02]: How am I going to go, Chief?
• 35:21
  [SPEAKER_03]: We got five more minutes.
• 35:23
  [SPEAKER_03]: What'd it be, Miss and gentlemen?
• 35:25
  [SPEAKER_03]: What'd it be, Missing?
• 35:26
  [SPEAKER_03]: Five minutes.
• 35:27
  [SPEAKER_03]: Wait, I mean, renovation alone.
• 35:29
  [SPEAKER_03]: Yeah.
• 35:30
  [SPEAKER_03]: Yeah, yeah, renovation loans are hot right now.
• 35:32
  [SPEAKER_03]: What is the renovation loan?
• 35:33
  [SPEAKER_03]: Does that, because that, wait, renovation.
• 35:35
  [SPEAKER_03]: To where is, is that where I get a personal loan?
• 35:37
  [SPEAKER_03]: And then I get a no loan of top for renovation?
• 35:40
  [SPEAKER_01]: No, so the renovation loans are loans that the banks will give you for a project that both parties have agreed to, meaning seller, buyer, and bank.
• 35:52
  [SPEAKER_03]: The seller has agreed to a renovation loan?
• 35:54
  [SPEAKER_03]: Yes.
• 35:54
  [SPEAKER_01]: The seller has agreed to a two.
• 35:56
  [SPEAKER_01]: And it's not agreed to a renovation, they don't care about the renovations itself, but the renovation loan process is a little different.
• 36:03
  [SPEAKER_01]: So the seller's going to have to agree to that because if it's a small renovation loan,
• 36:08
  [SPEAKER_01]: You can still probably get it done in 30-ish days or whatever, but if it's a larger renovation long, like over six figures, a lot of time that's going to take closer to 60 days to get that long done.
• 36:20
  [SPEAKER_01]: So obviously the seller has to be aware of that and the buyer and the linen themselves have to be like ready for that process too.
• 36:27
  [SPEAKER_03]: So I what point is it good to get a renovation loan there?
• 36:33
  [SPEAKER_00]: All right, I would say any time, you know, a lot of people want new construction properties, right, but a lot of new construction properties, they charge more, right?
• 36:41
  [SPEAKER_00]: You charge a lot more.
• 36:42
  [SPEAKER_00]: So it's better to kind of take a resell property and make that property how you want to make it.
• 36:47
  [SPEAKER_00]: You customize it, because a lot of these new constructions aren't customizable at all at all.
• 36:52
  [SPEAKER_00]: So you can take this property and say, hey, I want to knock down these walls.
• 36:56
  [SPEAKER_00]: I want to put these type of materials in there, right?
• 36:58
  [SPEAKER_00]: Which is going to cost you, but the bank will say, okay, we're going to give you acquisition money to buy the property.
• 37:04
  [SPEAKER_00]: And we're going to give you construction money to do the construction work.
• 37:08
  [SPEAKER_00]: Now, the interest rates are going to be a little bit higher.
• 37:10
  [SPEAKER_00]: When you say a little bit, I was a little bit.
• 37:11
  [SPEAKER_00]: So let's say the market is at around 6.3% right?
• 37:14
  [SPEAKER_00]: The renovation loan is going to be somewhere around 6, 7, 6, 7, 6, 8.
• 37:17
  [SPEAKER_00]: That's not too bad.
• 37:18
  [SPEAKER_00]: That's not too bad.
• 37:19
  [SPEAKER_00]: But here's the cool thing about it.
• 37:21
  [SPEAKER_00]: You also, let's say you close on that property.
• 37:23
  [SPEAKER_00]: You also can roll your monthly payments into the loan as well.
• 37:27
  [SPEAKER_00]: Now, your loan's in the way up.
• 37:28
  [SPEAKER_00]: Let's be clear.
• 37:29
  [SPEAKER_00]: But if you don't want to start paying your monthly payments until after the renovation is done, you can do that as well.
• 37:33
  [SPEAKER_00]: So meaning that.
• 37:38
  [SPEAKER_03]: I see a house to say for 300,000, but any new kitchen, new bathroom, new floors, floors are horrible.
• 37:48
  [SPEAKER_03]: Yep.
• 37:48
  [SPEAKER_03]: The bank will go in there doing a praise or to make sure that once we do that, it will, it will appraise for, that's correct, absolutely the thing is, and you'll give me the money to pay it to buy the house, and then I will have it.
• 38:01
  [SPEAKER_03]: extra money to start the renovations.
• 38:04
  [SPEAKER_03]: Absolutely.
• 38:04
  [SPEAKER_03]: Absolutely.
• 38:05
  [SPEAKER_03]: And I don't have to move in necessarily because they will allow me to roll it to safe.
• 38:09
  [SPEAKER_03]: I can't move into the house for three months.
• 38:11
  [SPEAKER_03]: They'll just put those three months back when to the law.
• 38:13
  [SPEAKER_01]: Absolutely.
• 38:14
  [SPEAKER_01]: Absolutely.
• 38:15
  [SPEAKER_01]: As you know, they're not going to let you do cut the roof off through another level on.
• 38:20
  [SPEAKER_01]: They're not going to let you do those type of things.
• 38:22
  [SPEAKER_01]: It's going to be interior renovations, but it can be an expensive interior rental.
• 38:26
  [SPEAKER_00]: I'm going to want to write enough for 200,000.
• 38:29
  [SPEAKER_00]: Okay, renovation law where I'm digging up a basement and adding two bedrooms and two baths to the baser and it's going to increase the value.
• 38:35
  [SPEAKER_00]: It's been in 200, but it's increasing the value by 400k.
• 38:39
  [SPEAKER_00]: So they get all the money back plus you make 200k profit and then that'll get right with you.
• 38:44
  [SPEAKER_03]: Yep.
• 38:45
  [SPEAKER_03]: I'll give you a tip about that one this one, man.
• 38:47
  [SPEAKER_00]: Well, you know you don't have the time and come there.
• 38:50
  [SPEAKER_02]: Man, but you would have been, you would have been on me, Peter, Keith, Keith, yeah.
• 38:56
  [SPEAKER_02]: Out of big info, cause while you're in Chicago, while you're a Dallas, Atlanta, my Atlanta.
• 39:01
  [SPEAKER_02]: My kitchen needs an upgrade.
• 39:03
  [SPEAKER_00]: Yeah, yeah, yeah, yeah, absolutely.
• 39:07
  [SPEAKER_01]: Sorry, but our renovation list now is that regional tools that pretty much general all over you just got to check in your region that can be all over so you can do a renovation long they also have new construction loans to they call it Construction to permanent loans so you can build on land as well and yeah, and a lot of places to so those are probably two things like if you want to more customize Yeah, the home you're living in and as long as obviously whatever you do to the home meets the value of what you're adding to it.
• 39:34
  [SPEAKER_01]: Yeah, you're gonna be fine
• 39:35
  [SPEAKER_03]: The renovation is at a difficult loan to get into to qualify for.
• 39:39
  [SPEAKER_01]: No, it's no different than the regular.
• 39:41
  [SPEAKER_01]: You'll get approved like normal, but you're going to have to be involved because you're renovating your house.
• 39:45
  [SPEAKER_01]: Yeah.
• 39:46
  [SPEAKER_01]: So this is going to be more involved, man.
• 39:48
  [SPEAKER_01]: Okay.
• 39:48
  [SPEAKER_01]: In there.
• 39:48
  [SPEAKER_01]: Yeah.
• 39:49
  [SPEAKER_01]: And that's they can either be a tool through K-Long.
• 39:51
  [SPEAKER_01]: That's what they call it.
• 39:52
  [SPEAKER_01]: Or they have what's called a home ready loan as well, as well, which is our show at home style, which is the conventional version of that.
• 39:58
  [SPEAKER_03]: No, that's just great.
• 39:59
  [SPEAKER_00]: No.
• 39:59
  [SPEAKER_00]: Don't pay me as well.
• 40:01
  [SPEAKER_00]: low or no 3.5% down on the FHA 2 or 3K loan.
• 40:05
  [SPEAKER_00]: Yeah, 5% down on the conventional home style loan.
• 40:08
  [SPEAKER_00]: Yeah.
• 40:10
  [SPEAKER_00]: Yep.
• 40:11
  [SPEAKER_01]: It's not bad.
• 40:12
  [SPEAKER_03]: Not bad at all.
• 40:13
  [SPEAKER_03]: Made this what I like having me all on as often as we can.
• 40:15
  [SPEAKER_03]: Just to learn because I really do believe that.
• 40:18
  [SPEAKER_03]: specifically for African-Americans, one of the key, I would say key ingredient, meaning is one thing amongst a lot of things is real estate and is ownership and so I think we got to continue educating our people on how to get into it.
• 40:36
  [SPEAKER_03]: One time I want to bring up back in and I want to dive deeper into entrepreneurship.
• 40:40
  [SPEAKER_03]: We have a huge follow-up in the box
• 40:43
  [SPEAKER_03]: who won a buy-home, but they're struggling to get into a home.
• 40:47
  [SPEAKER_03]: They want to get into rental properties, but they're struggling to rent a properties.
• 40:52
  [SPEAKER_03]: So I really do want to have a conversation, even how to properly do it.
• 40:57
  [SPEAKER_03]: was like, even with my runner properties, we had to move them into a totally different LOC, switch some things around just for coverage.
• 41:05
  [SPEAKER_03]: Like, I don't think a lot of people just know the basic things to it.
• 41:08
  [SPEAKER_03]: Yeah.
• 41:09
  [SPEAKER_03]: Yeah.
• 41:09
  [SPEAKER_00]: Yeah.
• 41:10
  [SPEAKER_03]: And I really do want to have that conversation because this last process really taught me a lot.
• 41:16
  [SPEAKER_03]: And I'm learning a lot to this date.
• 41:19
  [SPEAKER_03]: I probably hear from my people at least once a month about something.
• 41:24
  [SPEAKER_03]: And I'm like, yeah, I need to get somebody else take this over for this is a headache, you know, and they're asking actually pretty me valid things.
• 41:32
  [SPEAKER_03]: Yeah, yeah, you know, that valid thing.
• 41:34
  [SPEAKER_03]: I'm just like, yeah, I didn't care about that in my house, so, but they do.
• 41:39
  [SPEAKER_03]: Right.
• 41:40
  [SPEAKER_03]: So it was like, but I can't be on the road traveling and talking to my people.
• 41:44
  [SPEAKER_03]: I'm just like, oh, I got to get somebody, but then there's a cost for that.
• 41:50
  [SPEAKER_03]: I don't make 4% of the full fee, not of what I make.
• 41:53
  [SPEAKER_03]: No, that's 4% of full fee.
• 41:54
  [SPEAKER_03]: What?
• 41:55
  [SPEAKER_00]: I mean, 4% as low as typically 8% to 10%.
• 41:58
  [SPEAKER_00]: 8% to 10%.
• 41:59
  [SPEAKER_00]: Yes, 8% and 9% can keep that.
• 42:02
  [SPEAKER_00]: But yeah, now you might be able to negotiate it lower.
• 42:05
  [SPEAKER_00]: You might be able to negotiate in a problem negotiation.
• 42:07
  [SPEAKER_00]: Always ask, right?
• 42:08
  [SPEAKER_00]: Yeah.
• 42:09
  [SPEAKER_00]: But standard principle, property management.
• 42:11
  [SPEAKER_00]: 8% to 10%.
• 42:13
  [SPEAKER_00]: Oh, the payment of the monthly payment.
• 42:20
  [SPEAKER_00]: So how much does it cost you when you're on the road?
• 42:22
  [SPEAKER_00]: That's the question, right?
• 42:23
  [SPEAKER_00]: When it comes down to it How much does it cost you?
• 42:25
  [SPEAKER_00]: There's a cost you more peace of mind.
• 42:26
  [SPEAKER_00]: Yeah, all right.
• 42:27
  [SPEAKER_00]: Hey, I'll take those phone calls Once a month.
• 42:29
  [SPEAKER_00]: I mean, I'll take I won't make any money if I do 10 percent.
• 42:32
  [SPEAKER_03]: I don't make zip and this market Yeah, I won't make any money exactly
• 42:36
  [SPEAKER_03]: I'm literally going to break even probably have to pay a little bit out of my pocket.
• 42:40
  [SPEAKER_01]: Yeah.
• 42:41
  [SPEAKER_03]: Yeah.
• 42:41
  [SPEAKER_01]: It'd be like that something.
• 42:42
  [SPEAKER_01]: It'd be like that sometimes though.
• 42:43
  [SPEAKER_01]: In a real world.
• 42:44
  [SPEAKER_01]: It is like, yeah, to this like, and you got to think, right?
• 42:48
  [SPEAKER_01]: Are you playing a short-term game alone-term game?
• 42:50
  [SPEAKER_01]: For sure is alone-term, 100%.
• 42:51
  [SPEAKER_01]: So we know that over time, historically, like the value of properties and the rental is going to increase, because you're going to look
• 43:02
  [SPEAKER_01]: I'm a genius right, but today am I heard a little bit and that's the cost of doing the business right so say you're you're rent start increasing to the four percent a year yeah and then five years from now it's like
• 43:19
  [SPEAKER_01]: This ain't too bad right?
• 43:21
  [SPEAKER_01]: I like it now.
• 43:22
  [SPEAKER_01]: Yeah, we got we got a real short memory on those previous five years, but first couple years Man, we were in there so yeah, because y'all I'm I'm telling I was I can you go be quiet?
• 43:34
  [SPEAKER_03]: Yo, it's a boy aunt at the O'Neill
• 43:37
  [SPEAKER_03]: Love y'all, man.
• 43:38
  [SPEAKER_03]: It's the coalition group.
• 43:38
  [SPEAKER_03]: Coalition group.
• 43:40
  [SPEAKER_03]: What did I say?
• 43:42
  [SPEAKER_01]: Coalition properties.
• 43:42
  [SPEAKER_03]: Yeah, I'll about to say.
• 43:44
  [SPEAKER_03]: It's not group.
• 43:45
  [SPEAKER_03]: Coalition properties group.
• 43:46
  [SPEAKER_03]: Man, they are in the building here in the DMB area.
• 43:49
  [SPEAKER_03]: They do amazing things.
• 43:51
  [SPEAKER_03]: Show all, if you're in the DMB area, or if you're just trying to get something, we're gonna drop all the information inside of the show.
• 43:57
  [SPEAKER_03]: No, check it out because they could definitely help you.
• 43:59
  [SPEAKER_03]: They've helped people in different states as well.
• 44:02
  [SPEAKER_03]: And so I want you to check them out they come on if not every month at least every other But you know with their schedule my schedule we had a range it but I'm hoping you learn something today Make sure you hit that that follow button like button subscribe to the channel is in the next show