Latest / Earn Your Leisure / EYL #219 How to Buy Real Estate; (Loans, Programs, & Tips) with MG The Mortgage Guy

Transcript

EYL #219 How to Buy Real Estate; (Loans, Programs, & Tips) with MG The Mortgage Guy · Earn Your Leisure

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Speaker 1: An illegal alien from Guatemala charged with raping a child
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Speaker 2: Be protected sponsored by the United States Department of Homeland Security.
1:00
Speaker 3: So real estate is and will be probably one always
1:03
Speaker 3: one of the greatest investment tools out there, especially because
1:07
Speaker 3: of the tax benefits that come with it. And you
1:09
Speaker 3: have to understand the tax play behind buying that much
1:13
Speaker 3: real estate as well. So these people are rich and
1:16
Speaker 3: wealthy and they're trying to hedge their taxes and minimize
1:19
Speaker 3: it too. So what's the best player real estate, brick
1:22
Speaker 3: and mortar. Because of things like depreciation, cost segregation, there's
1:26
Speaker 3: a lot of different things that you can do to
1:29
Speaker 3: offset your wins. If you got huge capital gains, you
1:32
Speaker 3: can put that in ten thirty one changes, buy real estate,
1:36
Speaker 3: so you're deferring your taxes down the road.
1:38
Speaker 4: Right.
1:39
Speaker 3: Real estate gives you all these plays that the wealthy
1:42
Speaker 3: use at scale to continue to grow their wealth. Whereas
1:47
Speaker 3: with us in our community, we like to listen to
1:51
Speaker 3: everybody else, but instead of following the money.
1:55
Speaker 5: My graduates from my school being forced backdrop thanks drop, Mike,
2:01
Speaker 5: drop back drop drop.
2:14
Speaker 6: All right, guys, welcome back. We got a stranger to
2:18
Speaker 6: the program, stranger somebody that you might not have ever
2:22
Speaker 6: seen before, Matthew Garland.
2:25
Speaker 3: And at all that's five eight seven and at my
2:29
Speaker 3: last snowe a letter five eight seven zero zero.
2:32
Speaker 4: But it's all good.
2:33
Speaker 6: Yeah.
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Speaker 4: The mortgage guy, The mortgage guy.
2:35
Speaker 6: Matthew Garland, CEO of the Garland Group, UH, star of
2:42
Speaker 6: Ransom Gyms see UH international speaker.
2:48
Speaker 4: International speaker, you gotta add that to the resume. Of course,
2:51
Speaker 4: damn sure to be having gyms.
2:53
Speaker 3: You don't tell you that I got a let in
2:55
Speaker 3: my bio now, international speaker.
2:58
Speaker 4: True, Okay, that's the fact.
3:00
Speaker 6: Yeah, real estate experts. So obviously you guys are familiar
3:03
Speaker 6: with man if you're familiar with Earn your Leisure. He's
3:06
Speaker 6: been on a variety of different times Market, Monday's invest Fest,
3:10
Speaker 6: you name it. He's always around providing great insight when
3:14
Speaker 6: it comes to real estate. And we did two episodes
3:18
Speaker 6: so far, and you know, whenever it is time, I
3:22
Speaker 6: feel like it's time to revisit this real estate conversation.
3:25
Speaker 6: So like this at the beginning of the year twenty
3:28
Speaker 6: twenty three was a great time to have the third
3:31
Speaker 6: trilogy three p. There's so much stuff that we haven't
3:35
Speaker 6: talked about before, and there's so much stuff that has
3:37
Speaker 6: changed a lot of people. Are you know, nervous economic
3:40
Speaker 6: environment that we're in, interest rates and recession, different things
3:45
Speaker 6: of that nature.
3:45
Speaker 4: So and on a personal level.
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Speaker 7: During this time, we've had a relationship of you helping.
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Speaker 4: Us with our properties.
3:52
Speaker 7: Absolutely, So that's even something that we were going to
3:54
Speaker 7: add to this conversation too.
3:55
Speaker 4: I love it. Yeah, I love it.
3:56
Speaker 6: So you know, it's back to the blueprint, man of ducation.
4:00
Speaker 6: Heavy gyms try to provide as much value as possible
4:04
Speaker 6: and help some people out. Man. So first formal, thanks
4:07
Speaker 6: for coming. Appreciate it, love Felers. It's a three P.
4:09
Speaker 6: I appreciate the opportunity. As always, It's always good to
4:13
Speaker 6: be back with my guys. Let's make it happen. Let's
4:15
Speaker 6: do it. Let's do it. So all right, all right,
4:19
Speaker 6: let's not even waste any time. Let's get into this.
4:21
Speaker 3: I think it was the first time I WoT suit
4:22
Speaker 3: on the shop on the show this is this is
4:24
Speaker 3: the first time you had a red sword shirt on
4:26
Speaker 3: an episode twelve, the gold episode, and your second appearance
4:31
Speaker 3: you had I think you might have a flannel shirt,
4:33
Speaker 3: had a flannel joint.
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Speaker 7: Yeah, and we had just moved downstairs to kind of shoot.
4:39
Speaker 4: So that was that was cool too.
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Speaker 3: Yeah, okay, three different flavors, three different episodes.
4:43
Speaker 4: I liked. I like the way this is going.
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Speaker 6: Let's talk about something that we never spoke about before,
4:48
Speaker 6: which is V a loans copy for veterans. There's a
4:53
Speaker 6: lot of veterans that watch us. We actually have an
4:57
Speaker 6: infinity group in Eyo University for veterans, whether it's Navy,
5:02
Speaker 6: h army, uh, you name its whole situation, right, A
5:09
Speaker 6: lot of people have served the country and it's benefits
5:13
Speaker 6: with that. But and even some alumni. Aristotle is a veteran. Yeah,
5:19
Speaker 6: we got a few other veterans, but a lot of
5:22
Speaker 6: times that they're not educated on what they actually have
5:25
Speaker 6: the credit credit definitely, what's up with this VA loan situation.
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Speaker 3: First of all, thank you guys for your service. We
5:34
Speaker 3: appreciate your sacrifice and everything you do for us in
5:37
Speaker 3: our country to keep us safe here in America. So
5:40
Speaker 3: I don't want that to My father is a veteran also,
5:43
Speaker 3: so it's nandad in my heart. If you've been in
5:45
Speaker 3: my studio or see me on my content, I have
5:47
Speaker 3: his flag. When he passed away, they gave me the flag,
5:50
Speaker 3: so I have that kind of like right next to
5:51
Speaker 3: me when I shoot all my content.
5:54
Speaker 4: So, first of all, shout out to all the veterans.
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Speaker 3: But a VA loan is one of probably the best
5:59
Speaker 3: loans that's available out there in the marketplace. It's an
6:02
Speaker 3: underutilized product. I don't think a lot of people speak
6:05
Speaker 3: about VA loans, and that's why I'm happy that we're
6:07
Speaker 3: having this conversation. So let's first start off with the
6:10
Speaker 3: credit score requirements. Most lenders will have a minimum credit
6:15
Speaker 3: score of a five to eighty to qualify for a
6:18
Speaker 3: VA loan. It's one hundred percent financing no PMI. PMI
6:23
Speaker 3: is private mortgage insurance. So typically when you put down
6:26
Speaker 3: less than twenty percent down on a property, you have
6:29
Speaker 3: to pay the PMI, which is insurance that's insuring the bank,
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Speaker 3: not you the barrower. In case you default on the mortgage,
6:37
Speaker 3: that that loan is insured and the bank can basically
6:41
Speaker 3: get their money back from the insurance company.
6:42
Speaker 4: Right.
6:43
Speaker 3: So, VA loans have no PMI. It does have a
6:47
Speaker 3: fund and fee when you do a VA loan, which
6:50
Speaker 3: can be on average around two percent just depending on
6:53
Speaker 3: your status. If you are one hundred percent disability then
6:58
Speaker 3: disabled veteran, then you don't pay a fund and fee,
7:01
Speaker 3: But typically most VA loans that we're doing come with
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Speaker 3: around a two percent frond and fee which gets financed
7:08
Speaker 3: into the loan. Now, with a VA loan, you can
7:12
Speaker 3: purchase a primary residence. It's not for investment properties. I
7:15
Speaker 3: just want to be clear on that it's for primary residents.
7:19
Speaker 3: You can buy condo VA approved. If you could buy
7:22
Speaker 3: condo that is VA approved, you could buy one family,
7:25
Speaker 3: two family, three family, four family properties. They have to
7:28
Speaker 3: be owner occupied multifamilies. The requirement to for VA to
7:35
Speaker 3: live in the property is for one year, just like
7:37
Speaker 3: an f HA, so you have to live in that
7:39
Speaker 3: property for one year. But the main thing, there's a
7:42
Speaker 3: couple things I want to discuss with a VA that's
7:44
Speaker 3: very important. Number one is your certificate of eligibility your COE.
7:52
Speaker 3: So to determine how much of a loan that you
7:56
Speaker 3: can get from a VA, you have to provide the
7:59
Speaker 3: lender or the lender can pull what's called the COE,
8:02
Speaker 3: your certificate or eligibility, and it will tell you exactly
8:05
Speaker 3: how much entitlement that you have from the VA. To
8:09
Speaker 3: determine what's the maximum the possible maximum loan amount that
8:14
Speaker 3: you can get financed for using a VA loan. Now,
8:18
Speaker 3: unlike well, VA loans don't have a minimum a maximum
8:24
Speaker 3: loan amount requirement. So if you go an FHA loan
8:27
Speaker 3: or a conventional mortgage, you have a maximum loan amount.
8:31
Speaker 4: So let's just keep in this. So in New York.
8:34
Speaker 4: I'll just keep in New York.
8:35
Speaker 3: So a simple with a one family right now, because
8:38
Speaker 3: this is considered a high cost area. You can get
8:40
Speaker 3: an FHA or conventional mortgage million dollars on a single
8:45
Speaker 3: family property, a four family property, you can go up
8:48
Speaker 3: to like two million, a little bit under two point
8:50
Speaker 3: one million somewhere around there. So the loan limits increased
8:54
Speaker 3: in twenty twenty three, which is great because home prices
8:57
Speaker 3: have been appreciated. But with the VA loan, there's technically
9:02
Speaker 3: no minimum or no maximum loan amount for the VA.
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Speaker 3: It's all on how much eligibility you have and obviously
9:11
Speaker 3: how much you can qualify for with your debt to
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Speaker 3: income ratio and your residual income, which I'm gonna go
9:15
Speaker 3: into in a bit. So that's another great thing about
9:18
Speaker 3: a VA loan. You can buy a single family home
9:21
Speaker 3: one point five million dollars and get one hundred percent
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Speaker 3: financing on it with a low interest rate with no PMI.
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Speaker 7: Let's say you do do that, and you do a
9:30
Speaker 7: loan for one point five is there a millionaire tax
9:33
Speaker 7: that comes along with that.
9:35
Speaker 4: Like a mansion tax tax? Right?
9:36
Speaker 3: So in New York, if you purchasing a property over
9:39
Speaker 3: a million dollars, you have mansion tax, which you guys
9:42
Speaker 3: happily had to pay, right, mansion tax anybody but New York.
9:49
Speaker 3: That's common, right. A million dollar house in New York
9:51
Speaker 3: is kind of like the normal. It's like an everyday house.
9:55
Speaker 3: New York is very expensive, but yes, you have to
9:58
Speaker 3: pay a man attach other states it varies, you may
10:01
Speaker 3: not have to pay. But I would say check which
10:03
Speaker 3: you know, your realtor, or your local lend or whoever
10:06
Speaker 3: you work and with, to see if you have to
10:07
Speaker 3: pay any type of mansion tax.
10:09
Speaker 7: Is there like a percentage that the standard mansion tax.
10:12
Speaker 3: Is New York is one percent one percent, So a
10:16
Speaker 3: million dollar sales price, you're going to pay ten thousand
10:19
Speaker 3: dollars or in closing costs on top of all the
10:23
Speaker 3: other fees that come with, you know, buying a property.
10:27
Speaker 3: So if you're buying over a million dollars, it can
10:29
Speaker 3: definitely get more expensive, especially in this state like New York.
10:33
Speaker 3: So that's why you have you can't be house rich
10:35
Speaker 3: and cash boy. You have to have money when you
10:38
Speaker 3: go into that ballpark, right, But with a VA loan again,
10:41
Speaker 3: you can go up to a million and a half
10:43
Speaker 3: you can go one point seven million. I've done loans
10:46
Speaker 3: myself one three, one four when the loan amounts were
10:49
Speaker 3: a lot less for conventional and FHA. So that's a
10:52
Speaker 3: huge benefit for that veteran who can qualify for.
10:56
Speaker 4: That that large of a house.
10:57
Speaker 3: Right, And that's nationwide, so it's not it's not determined
11:01
Speaker 3: on region where you live. If you live in Kentucky
11:05
Speaker 3: and your veteran, you can get approved for a million
11:07
Speaker 3: dollar loan with the VA if you have the eligibility
11:12
Speaker 3: to do so, right. So that's number one, Right, But
11:15
Speaker 3: the most important thing I want to touch on when
11:17
Speaker 3: it comes to a VA loan because the most portant
11:21
Speaker 3: ingredient on any loan is the debt to income ratio
11:24
Speaker 3: your DTI. Right, But what VA you have what's called
11:29
Speaker 3: residual income, and that residual income calculates basically, how much
11:34
Speaker 3: money do you have left over after all of your expenses?
11:38
Speaker 3: Can the veteran truly afford this house? And they taking
11:42
Speaker 3: your household thoughts? Right, So let's just say, for example,
11:46
Speaker 3: you have a family of four right the VA, and
11:50
Speaker 3: if you're living in the Northeast, they want to see
11:53
Speaker 3: after you're withholding has come out, So they're looking at
11:57
Speaker 3: your gross income and then they're going to mind us
11:59
Speaker 3: out you're withholdings like your fighter, your Social Security, all
12:04
Speaker 3: the taxes, you're paying, your W two wages. Then they're
12:06
Speaker 3: going to take the mortgage payment minus that out of it.
12:08
Speaker 3: Then they're going to take your utilities on the home right,
12:11
Speaker 3: And if you don't know what the utilities are, lenders
12:14
Speaker 3: will use a calculation. It's usually the square footage of
12:18
Speaker 3: the home times point one four percent, and so if
12:22
Speaker 3: it's a two thousand square foot home times point one
12:24
Speaker 3: four percent, that comes into like two hundred and eighty dollars.
12:27
Speaker 3: That will guesstimate what your utilities are. We looking at childcare,
12:32
Speaker 3: we're looking at you know, student loans, car loans. Everything
12:37
Speaker 3: goes into this calculation. And then at the end of
12:40
Speaker 3: the day, after all of that is spent, do you
12:43
Speaker 3: have at least one thousand dollars a month left over?
12:49
Speaker 3: And if you do, you qualify right, and if you don't,
12:52
Speaker 3: you don't qualify. So, for example, I've seen Dell's where
12:57
Speaker 3: you might get an aus AP pro, which is the
13:00
Speaker 3: automated underwriting system that all lenders use that says, okay,
13:04
Speaker 3: your DTI is X. It works, but then you might
13:08
Speaker 3: not meet the residual income qualifications and that can decline
13:13
Speaker 3: your loan. So it's very important that veterans understand it.
13:18
Speaker 3: And anyone, any real estate professional, any loan officer who's
13:22
Speaker 3: working with VA clients, they understand the residual income calculation
13:26
Speaker 3: because that right there can make or break your deal.
13:29
Speaker 3: So what I try to advise any veteran or anybody
13:31
Speaker 3: who's looking to buy a house, you not only just
13:34
Speaker 3: want to get pre approved, you want to make sure
13:36
Speaker 3: that the lender that you're working with has the ability
13:38
Speaker 3: to submit your loan into underwriting. Why you're in that
13:40
Speaker 3: pre approval status so that way an underwriter can reveal
13:44
Speaker 3: your loan and get you what's called a pre underwriting
13:47
Speaker 3: commitment or loan commitment. Why you're still in that home
13:50
Speaker 3: buying stage, because now you know it's been reviewed by
13:53
Speaker 3: an underwriter. You know your commitment letter is legit. It's
13:57
Speaker 3: not just some loan officer sending your lefe are saying, hey,
14:00
Speaker 3: your prayer approval for X, Y and Z go out
14:02
Speaker 3: in the house shop. And then when you get a
14:03
Speaker 3: house and then you get into contract, you do all
14:05
Speaker 3: these dispections, pay for appraisal, and then you go to
14:09
Speaker 3: underwrite and you get the client because they didn't do
14:10
Speaker 3: the calculations properly from the very beginning. It happens all
14:13
Speaker 3: the time, so that residual income is extremely important when
14:18
Speaker 3: it comes to VA loans for all veterans out there,
14:21
Speaker 3: for all professionals who are.
14:22
Speaker 7: Originating these loans. That's a lengthy process.
14:25
Speaker 4: Yeah, a lot.
14:26
Speaker 7: It's a lot of information, a lot of tape, a
14:28
Speaker 7: lot of pork that has to be fouled.
14:30
Speaker 4: You can correct me if I'm wrong.
14:31
Speaker 7: But VA loans and one of the reasons that people
14:34
Speaker 7: use it and it's a great loan product, is that
14:37
Speaker 7: there's no down payment.
14:39
Speaker 3: Correct, it's one hundred percent financing for a VA loan. Now,
14:44
Speaker 3: typically with a VA loan, it's if you are buying
14:47
Speaker 3: the house and you're the veteran, you can get up
14:50
Speaker 3: one D one hundred percent finance. And another thing also,
14:53
Speaker 3: you can use the VA loan more than once, so
14:55
Speaker 3: it's not like FAHA where you have to refinance out
14:59
Speaker 3: of the FA to use the FAHA loan. Again, right,
15:02
Speaker 3: with a VA loan, if you have enough eligibility on
15:05
Speaker 3: your COE, you can buy another property, it just has
15:09
Speaker 3: to be your primary residence. Now, on that second property
15:11
Speaker 3: that you purchase, you're you're probably going to have to
15:14
Speaker 3: put some sort of down payment because you use a
15:17
Speaker 3: lot of your entitement already to buy your first home.
15:20
Speaker 3: But necessarily you don't have to refinance out of that
15:23
Speaker 3: initial property that you purchase to use your VA loan again.
15:27
Speaker 4: So it gives you the ability.
15:28
Speaker 3: I've seen people that have three or four VA loans
15:31
Speaker 3: all still active because they didn't burn up their eligibility
15:35
Speaker 3: by going out and buying a million dollar million, one
15:38
Speaker 3: point five million dollar house the first go around. They
15:40
Speaker 3: probably bought a two three hundred thousand dollars house, started
15:44
Speaker 3: slow and work their way up, and they still have
15:46
Speaker 3: enough eligibility to use their VA over and over and over.
15:51
Speaker 6: Is they give you a certain amount of money.
15:53
Speaker 3: Correctly where, which is depending on your status of how
15:57
Speaker 3: you got discharged.
15:59
Speaker 6: Depend on how longs you were exactly. So it's like
16:02
Speaker 6: you might have a million dollars.
16:05
Speaker 3: It's not that it's and I'm not even going to
16:07
Speaker 3: try to get into that. Go get the home Boys Blueprint.
16:10
Speaker 3: It's a part of ey l University Volume one. We
16:13
Speaker 3: kind of break all your great resource. You know, it's
16:16
Speaker 3: a great resource that kind of breaks down the calculations
16:19
Speaker 3: and everything like that. But essentially, yes, the certificate of
16:23
Speaker 3: eligibility will tell Linda, if this is your first time
16:25
Speaker 3: using it, if you have used it multiple times, how
16:28
Speaker 3: much of your eligibility is available. And then there's a
16:31
Speaker 3: whole calculation that we have to do on our and
16:33
Speaker 3: to determine exactly how much of a loan that we
16:36
Speaker 3: can get you approved for. So it's a process on
16:39
Speaker 3: our end.
16:40
Speaker 7: If you have one, then you obviously you get the
16:41
Speaker 7: additional properties. Are they looked at as investment properties? I
16:45
Speaker 7: know you said you can't use as rental. It's a
16:47
Speaker 7: primary residence, all of them, all four of them are.
16:49
Speaker 3: So when you buy the first one, you can rent
16:51
Speaker 3: out after you meet your one year required and you
16:54
Speaker 3: can go buy a new primary residence and now turn
16:57
Speaker 3: that first property into a rental. So it's essentially your
17:01
Speaker 3: house hacking. But you're just doing it the not quote
17:05
Speaker 3: unquote non traditional way, and you're using the VA loan. Again,
17:09
Speaker 3: even if you have to put down a down payment
17:11
Speaker 3: five ten percent, you have no PMI, you're going to
17:13
Speaker 3: have a low interest rate, right, So it's still a
17:16
Speaker 3: huge benefit for someone who's looking to use as much
17:22
Speaker 3: of the VA as possible, because, look, they earn the benefits,
17:25
Speaker 3: why not use it, use it as many times as
17:27
Speaker 3: you can. So some people might start off with to
17:29
Speaker 3: start at home two hundred, two hundred and fifty thousand,
17:31
Speaker 3: whatever it is, and if they understand how to run
17:34
Speaker 3: the play, they'll continue to use their VA, move out
17:37
Speaker 3: of one, living it for a year, move out another one,
17:40
Speaker 3: and keep going to keep going. So if you do
17:42
Speaker 3: it the right way, you can you can buy a
17:45
Speaker 3: couple of properties using your VA loan and having all
17:48
Speaker 3: those VA loans still open, not having a refinance out
17:52
Speaker 3: of them.
17:53
Speaker 6: All Right, Well, that's good to know a lot of
17:55
Speaker 6: information when it comes to the VA loan situation.
17:58
Speaker 3: So let's talk about how I'm going to cut you off.
18:00
Speaker 3: I said that in your voice too, right, So let's
18:06
Speaker 3: since I've said house hacking, I want to talk about
18:08
Speaker 3: multifamilies real quick, because this is very important.
18:10
Speaker 4: Before that, don't mean to come you off. I mean
18:13
Speaker 4: I don't want to interrupt your wisdom.
18:15
Speaker 7: But like that one are their disadvantages, right, So those
18:19
Speaker 7: are some of the advantager and I know people have said,
18:22
Speaker 7: like does every lender off of VA loans? Like are
18:25
Speaker 7: there things that we did if they're veterans that they
18:28
Speaker 7: should look out for good question.
18:30
Speaker 3: So not all lenders and loan officers are built the same.
18:34
Speaker 3: Just because someone offers a loan product doesn't mean they
18:37
Speaker 3: know how to close that loan product. Doesn't mean they're
18:40
Speaker 3: well versed in that loan product. So for the majority, yes,
18:44
Speaker 3: all lenders will offer a VA loan. And I want
18:47
Speaker 3: people to understand this right, there's a lot of lenders
18:50
Speaker 3: out there that will have the name their name of
18:54
Speaker 3: their company. It will sound military issue. That doesn't mean
19:00
Speaker 3: the VA is endorsing them. So a lot of people
19:03
Speaker 3: will go to these lenders because it sounds like it's
19:06
Speaker 3: military and it's a military mortgage company or something like
19:09
Speaker 3: that that is VA endorsed, and it's not. The VA
19:13
Speaker 3: doesn't endorse one particular lender over another. That's just a
19:17
Speaker 3: marketing tactic. And you have to be careful, especially your veterans,
19:21
Speaker 3: because a lot of times these companies are offering you
19:24
Speaker 3: higher fees and higher rates than someone like myself or
19:28
Speaker 3: a mortgage broker, a mortgage banker, So you got to
19:31
Speaker 3: be They may not have military slang in their company name,
19:36
Speaker 3: but doesn't mean they can't get you a better deal.
19:38
Speaker 3: So I want people to understand when you when you're
19:40
Speaker 3: shopping for who's going to do your VA loan, don't
19:43
Speaker 3: just go with the company or the mortgage company just
19:46
Speaker 3: because they have some sort of military affiliation in their name,
19:50
Speaker 3: because it's all a marketing tactic, right, So that's number
19:52
Speaker 3: one when it comes to people offering V loans. But again,
19:56
Speaker 3: and not all one is a built built the same.
19:59
Speaker 3: Not everybody underst sands via loans. These are easy loans
20:02
Speaker 3: if you understand what you're doing, but they can become
20:05
Speaker 3: very difficult if you don't. And again, the residual income
20:09
Speaker 3: is one of the big things that I see people
20:11
Speaker 3: mess up on because they never heard of it before
20:14
Speaker 3: and they don't know how to calculate it. But for
20:16
Speaker 3: multifamilies on house hacking, you can't. If you're a first
20:20
Speaker 3: time home buyer and you're buying a multifamily property and
20:23
Speaker 3: you're looking to use the rental income to qualify, Unfortunately,
20:28
Speaker 3: the VA doesn't allow that you have in order to
20:31
Speaker 3: use rental income to help you qualify for a multifamily
20:35
Speaker 3: using a VA loan, you have to document that you
20:38
Speaker 3: have or at least twelve months experience of property management
20:43
Speaker 3: or owning a multi family property. So if you don't
20:46
Speaker 3: work in the property management field, if you don't have
20:49
Speaker 3: a multifamily currently and it's filed on your taxes and
20:53
Speaker 3: we can see that you've owned it for a year
20:55
Speaker 3: and you're collecting rent, then unfortunately, you will not be
20:58
Speaker 3: able to use the rental income to qualify you. Now,
21:01
Speaker 3: if you do have that experience, then the v will
21:04
Speaker 3: require at least six months of reserves off your mortgage payments.
21:08
Speaker 3: So if your mortgage payment is one thousand dollars a month,
21:10
Speaker 3: we're going to require at least six thousand dollars in
21:13
Speaker 3: your bank account post closing, after you pay your closing
21:15
Speaker 3: costs left over. So I want people to understand using
21:20
Speaker 3: a VA loan to house hack and buy multifamilies. If
21:24
Speaker 3: you're dependent on the rental income to qualify you can
21:28
Speaker 3: you can be up for root awakening. You will have
21:32
Speaker 3: to qualify using your own income to purchase that multi
21:36
Speaker 3: family all right.
21:37
Speaker 6: So let's get another topic in construction loans. This is
21:43
Speaker 6: something that you know, me and Troy's going through, right,
21:45
Speaker 6: now with a home. And this is a lot of
21:47
Speaker 6: times people don't even realize that there's different loans that
21:50
Speaker 6: you have to take. Even when you get into a mortgage,
21:52
Speaker 6: all mortgages aren't the same, correct, So it's like a
21:55
Speaker 6: construction loan when you're actually building a house from the
21:57
Speaker 6: ground up. Correct, financing is different, very it's very different,
22:02
Speaker 6: and it's a lot more strenuous. Well, I'll let you
22:05
Speaker 6: talk about it, but a lot of I don't think
22:07
Speaker 6: people are They wouldn't know that unless they've actually done
22:10
Speaker 6: it before. So building a house, you know, it can
22:14
Speaker 6: have some advantages, but you have to know what you're
22:17
Speaker 6: getting yourself into before you before you decide if it's
22:19
Speaker 6: gonna be a good decision or not. Absolutely, So what's
22:21
Speaker 6: to deal with the construction loan situation?
22:25
Speaker 4: Man construction loans.
22:26
Speaker 6: And once again construction for not construction like you're going
22:30
Speaker 6: to build an apartment building Like this is if you
22:32
Speaker 6: buy a plot of land correct and you just want
22:35
Speaker 6: to build your house as opposed to building a house
22:38
Speaker 6: buying a house that's already built.
22:39
Speaker 4: Correct.
22:40
Speaker 3: So you know, typically, like you said, you buy, you
22:42
Speaker 3: get a piece of land and now you need funding
22:45
Speaker 3: for it. So there's two ways you can go by it.
22:47
Speaker 3: If you're the consumer. If you're the home buyer. You
22:50
Speaker 3: can buy the land on cash, which I would recommend
22:53
Speaker 3: I'm buying whether it's cash or you use a credit card,
22:56
Speaker 3: whatever means you find to buy that piece of land,
22:58
Speaker 3: because I feel like this is the easiest way to
23:00
Speaker 3: do a construction loan. And then now you go to
23:03
Speaker 3: the bank to get a construction the permanent loan, where
23:07
Speaker 3: now that construction permanent loan is basically treated like a
23:10
Speaker 3: refinance now because since you already own the property, so
23:14
Speaker 3: there's no rush right to get your plans and your
23:18
Speaker 3: permits and things of that nature. Because with most construction loans,
23:21
Speaker 3: when you're talking primary residences, which this conversation is about,
23:26
Speaker 3: the bank is only going to give you a construction
23:29
Speaker 3: time of nine to twelve months. So we all know
23:32
Speaker 3: permits can take six months. So if you do a
23:37
Speaker 3: one time closed construction loan, which is you're buying the
23:40
Speaker 3: land and trying to get the construction loans simultaneously, and
23:44
Speaker 3: you're using the bank for the finance and of the
23:46
Speaker 3: land as well, that's when I see problems arise because
23:50
Speaker 3: you're not technically the owner of that property. So you
23:54
Speaker 3: can't go out and submit architectural plans to the town
23:57
Speaker 3: that you're buying a property in until you close, because
24:01
Speaker 3: you technically don't own the property unless the seller of
24:04
Speaker 3: the property is willing to submit the plans on your behalf,
24:09
Speaker 3: which in most cases they're not going to do that, right,
24:12
Speaker 3: So it's much easier for you to acquire the land
24:16
Speaker 3: on your own then use the bank for the construction
24:19
Speaker 3: model to build your home. And the reason being again
24:22
Speaker 3: is because architectural plans can take depending on the scope
24:27
Speaker 3: of your work, that can take two to four months,
24:30
Speaker 3: depending on how busy your architect is and how efficient
24:34
Speaker 3: they are, And when you get plans you're going to
24:37
Speaker 3: go back and forth to adjust things of that nature.
24:40
Speaker 3: So if you're doing a one time closed to construction,
24:43
Speaker 3: that means you're in contract and you have a time
24:46
Speaker 3: clock already to close with the seller, right. They don't
24:49
Speaker 3: want to sit there and wait four or five months
24:51
Speaker 3: for you to get your plans together before you close,
24:54
Speaker 3: So again that can cause a delay and it can
24:58
Speaker 3: cause some.
25:00
Speaker 4: Between you and the seller.
25:02
Speaker 3: Now, if you've got an architect who's on it, they
25:04
Speaker 3: can get you plans in thirty days. Cool, you can
25:06
Speaker 3: do the one time close. But again another con of
25:11
Speaker 3: that is after closing, now you have to submit those
25:14
Speaker 3: plans to the town to get approval. And depending on
25:18
Speaker 3: the counting, which it's hit a miss, right, it's hit
25:24
Speaker 3: a miss for plans. I mean, New York is kind
25:27
Speaker 3: of like, I don't want to say nothing negative because
25:30
Speaker 3: you know.
25:31
Speaker 4: But it kind of gets interest.
25:35
Speaker 3: Yeah, it gets kind of it gets kind of crazy,
25:37
Speaker 3: and it could be a lengthy process. So now, if
25:40
Speaker 3: you're on a toime clock to build and the lenders
25:43
Speaker 3: only give you nine to twelve months, and some lenders
25:46
Speaker 3: will give you an extension of an extra two to
25:47
Speaker 3: three months. On top of that, you done wasted half
25:50
Speaker 3: of your time just waiting on the plans to get
25:53
Speaker 3: approved by the town. So my recommendation for construction loans
25:57
Speaker 3: and anyone who's looking to build their first home or
26:00
Speaker 3: their dream home, acquire the land first. Acquire the land first,
26:05
Speaker 3: have a dope ass architect who understands the urgency of
26:09
Speaker 3: what you're looking to do, get your plans and everything
26:12
Speaker 3: drawn up because you already have the home now or
26:14
Speaker 3: the land, so you don't have to rush. And now,
26:17
Speaker 3: once you have your plans submitted, then applied for your
26:21
Speaker 3: construction loan, because now it's more like a refinance. There's
26:24
Speaker 3: no time clock, there's no sellers. You can take four
26:27
Speaker 3: months to close, it doesn't matter. And once your plans
26:30
Speaker 3: get approved, then close on your construction loan, then boom,
26:35
Speaker 3: you can start your construction pretty much immediately.
26:39
Speaker 7: Yeah, so let's talk about the other way when you
26:41
Speaker 7: have a lender that will do both give you construction,
26:44
Speaker 7: the construction loan for building it, and then actually having
26:48
Speaker 7: the house built itself.
26:49
Speaker 4: Right, So there's two pieces you're paying for both.
26:52
Speaker 7: Now, I think the misconception this is something that we
26:54
Speaker 7: kind of learned through the process. Like you get that
26:56
Speaker 7: time frame to build, and you know you do that
26:58
Speaker 7: with your building and they'll say it's between six to
27:02
Speaker 7: twelve months, we can get this house built, correct, Right,
27:05
Speaker 7: But you're at the mercy of the town, correct, right,
27:07
Speaker 7: because and the builder and the builder and the engineers
27:10
Speaker 7: and the architects.
27:11
Speaker 4: Correct.
27:12
Speaker 7: But your paying for a house that you may not
27:15
Speaker 7: even live in, right because sometimes the building process may
27:18
Speaker 7: take sixteen months, absolutely, and so like for a year
27:21
Speaker 7: you might be paying interest, but after that twelve months,
27:24
Speaker 7: now you're going to be paying that full loan. So yeah,
27:26
Speaker 7: talk about that and the appurances that having residual income
27:28
Speaker 7: in situations like this.
27:30
Speaker 3: Yeah, so when you get a construction loan, first, it's
27:33
Speaker 3: an interest. During the construction period, it's interest only payments. So,
27:38
Speaker 3: like you said, you're going to be paying a mortgage payment,
27:40
Speaker 3: you have to pay your property taxes, you have to
27:42
Speaker 3: pay your homeowners insurance and builders insurance. You're going to
27:47
Speaker 3: need buildings insurance as well to protect yourself on that end.
27:50
Speaker 3: But yeah, you're going to have a payment. So if
27:52
Speaker 3: it drags out, you know, and the lender says, okay,
27:56
Speaker 3: now it's trying to convert from the construction to permanent.
28:01
Speaker 3: Now you're going to be paying the mortgage payment. That's
28:03
Speaker 3: going to be hired because now it's principal and interest
28:06
Speaker 3: that's going to be included into your mortgage payment. And
28:10
Speaker 3: so your first twelve sixteen months is all going to
28:13
Speaker 3: be interest only. And that's why it's very important if
28:16
Speaker 3: you're going to take the leap of faith and build
28:20
Speaker 3: your own home, especially if you're going to act as
28:23
Speaker 3: your project manager. You're hiring your GC, you're hiring your builder,
28:26
Speaker 3: you're hiring all these folks. And you're not buying directly
28:28
Speaker 3: from a builder, right, you're hiring everybody. You have to
28:31
Speaker 3: make sure you know what you're doing and you're hiring
28:33
Speaker 3: the right folks, because folks will sit here and overpromise
28:36
Speaker 3: and underdeliver you and kill your entire timeline, which ultimately
28:40
Speaker 3: is going to cost you more money as the homeowner.
28:43
Speaker 3: So it's very important that you make sure you vet
28:46
Speaker 3: out your team because your team has to understand the
28:50
Speaker 3: urgency of you getting it done the timeline, and they
28:53
Speaker 3: have to understand how they get paid as well, because
28:56
Speaker 3: there's a process of how they get paid. So when
29:00
Speaker 3: you close on a construction loan, the lender is only
29:03
Speaker 3: going to give you ten percent or max fifty thousand
29:08
Speaker 3: within ten ten days fourteen days after closing, and typically
29:13
Speaker 3: that money is used to cover you know, demolition permits, plans,
29:18
Speaker 3: you know, things of that nature. You're kind of like
29:20
Speaker 3: your soft costs, right, But the lender, I mean, the
29:23
Speaker 3: builder will have to be able to front that job.
29:26
Speaker 3: So let's just say that the building's going to cost
29:28
Speaker 3: a million dollars Fellas to build, and they only released
29:31
Speaker 3: in fifty thousand dollars. But the first phase of the
29:34
Speaker 3: project is going to cost you all quarter a million dollars.
29:36
Speaker 3: So now where does that two hundred thousand come from? Right,
29:40
Speaker 3: that two hundred thousand has to come from the builder.
29:43
Speaker 3: They have to be in position to start that job.
29:47
Speaker 3: Complete phase one. Then the lender will send out an
29:51
Speaker 3: inspector to inspect, you know, phase one, to make sure
29:54
Speaker 3: autis across Aza dott it and then the inspector will
29:59
Speaker 3: go back to the bank and say, okay, you can
30:01
Speaker 3: release the draw of two hundred thousand. And then now
30:04
Speaker 3: the builder gets paid that two hundred thousand, and then
30:06
Speaker 3: they move on to phase two and it goes on
30:09
Speaker 3: like that until the job is complete.
30:12
Speaker 4: So it's very.
30:12
Speaker 3: Important that you understand your builder, understands how they get
30:16
Speaker 3: paid and they are liquid because a lot of builders
30:19
Speaker 3: out here are not liquid as well. So you can't
30:22
Speaker 3: pick the builder just because they might have gave you
30:25
Speaker 3: the cheapest price.
30:27
Speaker 6: How do you note that liquor.
30:28
Speaker 3: Now the lenders will vet the builders as well. There's
30:32
Speaker 3: a lot of lenders out there that use third party.
30:36
Speaker 4: Companies.
30:36
Speaker 3: I'm not going to mention their name because they don't
30:38
Speaker 3: endorse us, right, and they will have to see the
30:41
Speaker 3: liquidity of the builder bank statements, do you have amax's
30:45
Speaker 3: whatever it is, to make sure that they are liquid to.
30:49
Speaker 4: Be able to do this job.
30:51
Speaker 3: Because the lenders, again they're putting out a million dollars
30:54
Speaker 3: on construction. They want this house built. They don't want
30:58
Speaker 3: to own the property, especially if it is something that's
31:00
Speaker 3: not built right. So it's in their best interest as
31:05
Speaker 3: a lender to make sure that the builder can get
31:08
Speaker 3: this job done and they have the experience to get
31:11
Speaker 3: it done as well, because a lot of people talk
31:13
Speaker 3: to talk, but they can't walk the walk. So that's
31:16
Speaker 3: why again like a two or three K, I like
31:18
Speaker 3: to call a two or three K the training will
31:20
Speaker 3: for investors. So a construction loan when you're going through
31:24
Speaker 3: like the conventional way for a homeowner, is kind of
31:28
Speaker 3: like training wheels if you want to get into development
31:30
Speaker 3: as well, because you have the lender by your side
31:33
Speaker 3: and the inspectors by your side that work for you,
31:36
Speaker 3: and the lender to protect you against the builders because
31:41
Speaker 3: you know, we all say contractors are you know, you
31:44
Speaker 3: know what I'm saying, but you got to But the
31:47
Speaker 3: bank is always going to make sure that they protect
31:49
Speaker 3: the investment at the same.
31:50
Speaker 6: Time, So what happens if it's not going right? Like,
31:58
Speaker 6: what as as a customer, what recourse do you have
32:04
Speaker 6: if the contractor isn't doing what he's supposed to be doing.
32:09
Speaker 6: It's not moving at the timeline and that's supposed to
32:11
Speaker 6: be moved there, Like what can you do?
32:13
Speaker 3: You can fire them, but then now you start from
32:16
Speaker 3: square one again. Right now you have to find a
32:18
Speaker 3: new builder. Now they have to give you their court.
32:21
Speaker 3: Now that's new paperwork that has to get submitted to
32:23
Speaker 3: the bank. Right, So it's a whole process that if
32:27
Speaker 3: you're doing this post closing right, you're doing the post
32:30
Speaker 3: closing and you're already in your project. It's like anything
32:35
Speaker 3: if you do. If you do a bathroom over in
32:37
Speaker 3: your house and you don't like the contract and you
32:39
Speaker 3: fired them, now a new contract is going to come
32:41
Speaker 3: in and say, well, their work is not good, So
32:43
Speaker 3: now I got to tear all their work down and
32:46
Speaker 3: restart it over again. So now the cost will be
32:49
Speaker 3: more than what you anticipated. So you have to weigh
32:52
Speaker 3: out what's the opportunity cost really of me firing my
32:55
Speaker 3: contractor right now or my builder at the phase that
32:58
Speaker 3: I'm in right now, because I'm already started and it
33:01
Speaker 3: can wind up costing you more money. Now, if they're
33:04
Speaker 3: just negligent and they're just disrespectful and they just don't
33:07
Speaker 3: they're not really there, then obviously you're going to have
33:09
Speaker 3: no choice. But you got to handle your business because
33:11
Speaker 3: you are a CEO. This is real estate, right, so
33:13
Speaker 3: you have to fire them. But understand there's going to
33:15
Speaker 3: be now a whole new vetting process that now the
33:18
Speaker 3: lender is going to have to do. And then ultimately,
33:20
Speaker 3: if they're going to charge more than what the scope
33:23
Speaker 3: of workers already approve, you're not getting no more money.
33:28
Speaker 4: So where's that extra money.
33:29
Speaker 3: If they're gonna charge your extra fifty one hundred K,
33:31
Speaker 3: where's that extra money coming from. It's coming from you
33:34
Speaker 3: because you decided to fire them. So it's best while
33:38
Speaker 3: you're in the underwriting process. If you're going to make
33:41
Speaker 3: any changes with your contract or your builder, is best
33:45
Speaker 3: to do it while you're in the process because if
33:47
Speaker 3: they come with the higher scope of work, then you
33:52
Speaker 3: can protect yourself easier and reapply or not reapply, but
33:55
Speaker 3: you can ask for all request to see if you
33:58
Speaker 3: can get more of a approval to compensate for that
34:02
Speaker 3: extra money. So you just have to make sure again
34:05
Speaker 3: vetting out your people to make sure that they are
34:09
Speaker 3: who they say they are.
34:10
Speaker 7: If I'm looking to build a new property and I'm
34:12
Speaker 7: trying to find land, I know you can vet everybody
34:15
Speaker 7: on that side, but is there any way to or
34:18
Speaker 7: is there a database that you can vet the town
34:20
Speaker 7: engineer or the county engineer or the building department.
34:23
Speaker 4: Is there any way to do that?
34:24
Speaker 7: Because a lot of times, and we've seen it personally,
34:27
Speaker 7: like they're the ones that are holding up the whole things, right,
34:31
Speaker 7: Like I might not move to that town, or I
34:34
Speaker 7: might not try to develop there if I know there's
34:35
Speaker 7: going to be that type of ay, if they have
34:37
Speaker 7: a history of that.
34:38
Speaker 3: So typically when you're applying for permits and stuff like that,
34:42
Speaker 3: you would want to hire an expediter, right And an
34:45
Speaker 3: expedite is someone who works within the town or has
34:49
Speaker 3: a relationship with them and they're able to push the
34:52
Speaker 3: paperwork through in a timely matter. But ultimately, again it's relationships, right,
34:57
Speaker 3: Like if you hire a great architect and they have
35:00
Speaker 3: good relationships within the town because they're doing a lot
35:03
Speaker 3: of business and they're doing a lot of jobs, then
35:06
Speaker 3: they might not need to hire experdita because they know
35:08
Speaker 3: Mary Sue over here in this department and their sons
35:13
Speaker 3: go to soccer together, right, so they can have that
35:15
Speaker 3: type of conversation and kind of try to get things
35:17
Speaker 3: pushed through. But that's hit and miss as well. So no,
35:21
Speaker 3: is there a way to vet, really really not. It's
35:25
Speaker 3: kind of the lucky to draw and you have to
35:27
Speaker 3: put your plans in as complete as possible because sometimes
35:30
Speaker 3: they'll come back and they want corrections to your plans
35:33
Speaker 3: and then you got to go back and forth as well.
35:35
Speaker 3: So it's unfortunately, it's one of those situations you're damned
35:39
Speaker 3: if you do, you're damned if you don't. The town
35:42
Speaker 3: is always going to come back with something. They're always
35:44
Speaker 3: going to want some sort of correction, and there's always
35:47
Speaker 3: going to be some back and forth. And that's why
35:50
Speaker 3: your architect and building is probably one of the most
35:53
Speaker 3: important roles because they have to be quick on their feet.
35:56
Speaker 3: Some architects are just slow as hell to change something
36:01
Speaker 3: so minor to us. It might take them thirty days.
36:05
Speaker 3: That's setting your timeline back, right, So again I think
36:09
Speaker 3: not vetting the building apartment, you need to vet the
36:13
Speaker 3: architect to make sure that what's their turnaround for changes?
36:18
Speaker 3: What's their relationships with the town that you're building in.
36:21
Speaker 3: How many jobs have they submitted in the last sixty
36:25
Speaker 3: ninety twelve months? Right, these are questions when you're interviewing
36:29
Speaker 3: an architect. Just don't go off the referral like, oh,
36:32
Speaker 3: he's a great architect in this than a third Nah,
36:34
Speaker 3: Chill ask the questions. Right, this is your house, this
36:37
Speaker 3: is your business. You own the property, You're responsible for
36:40
Speaker 3: the mortgage payment, nobody else. So you have to make
36:43
Speaker 3: sure whoever you're hiring, you have to make sure they
36:45
Speaker 3: can get that job done. And they have a sense
36:47
Speaker 3: of urgency too, right, And because a lot of these
36:50
Speaker 3: folks they just don't have it.
36:52
Speaker 6: So let's talk about build to rent financing.
36:55
Speaker 4: Build to rent finance, yes, investors.
36:58
Speaker 3: Built to rent financing is you know something that's happening
37:04
Speaker 3: nationwide from a mom and pop level and also from.
37:08
Speaker 4: The institutional level.
37:09
Speaker 3: Right, So build to rent financing, you can buy them
37:14
Speaker 3: in your you can get these Basically, it's the same
37:16
Speaker 3: thing like a constructional Right, you find a plot of
37:19
Speaker 3: land or older property and you want to build a
37:24
Speaker 3: multi family building, you know, five units, ten units, What
37:28
Speaker 3: have you, and most cases you want to have some
37:33
Speaker 3: sort of experience with investing number one. So most lenders,
37:38
Speaker 3: if you're a first time investor, they probably won't lend
37:41
Speaker 3: to you on build to rent financing because you just
37:44
Speaker 3: don't have the experience of being a landlord. So that's
37:47
Speaker 3: number one. So this is really not like a first
37:49
Speaker 3: time home buyer type of product. It's for the real
37:53
Speaker 3: estate investor. Everything is in your LLC, it's not in
37:56
Speaker 3: your personal name, just like when you're buying a turnkey proper.
38:00
Speaker 3: But essentially it's the same like construction loan. You're getting
38:03
Speaker 3: a loan from the bank to build the multifamily that
38:08
Speaker 3: ultimately you're not flipping the multifamily. You're going to rent
38:12
Speaker 3: it out. It's a new construction multifamily. And you can
38:15
Speaker 3: do this product nationwide, so it's a great product. Right now,
38:19
Speaker 3: interest rates are going to be a little bit high
38:21
Speaker 3: on a higher level just because the market that we end,
38:24
Speaker 3: so you have to make sure the numbers still work.
38:27
Speaker 3: But traditionally for this type of financing, you can expect
38:31
Speaker 3: you need to be able to put down at least
38:33
Speaker 3: a thirty percent down payment twenty five to thirty percent
38:35
Speaker 3: down payment plus your closing costs to get this done.
38:38
Speaker 3: But again it's the same thing you need architects, you
38:42
Speaker 3: need to get your plans.
38:44
Speaker 4: You got to submit from.
38:46
Speaker 7: This episode is brought to you by P and C Bank.
38:48
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40:36
Speaker 1: An illegal alien from Guatemala charged with raping a child
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41:34
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41:37
Speaker 3: You need a construction crew. Your construction crew has to
41:39
Speaker 3: have experience will build them multifamilies. So it's not like
41:43
Speaker 3: you have my wake up and I'm gonna do build
41:45
Speaker 3: rent right. You have to have a team in place
41:48
Speaker 3: that can actually get the job done. Because now when
41:51
Speaker 3: you get to building attenu unit, the fifteen unit, a
41:54
Speaker 3: five unit, whatever it is, it's a lot more work
41:59
Speaker 3: that has to be done for I'm a design standpoint
42:02
Speaker 3: to make sure everything's cold, and they're now submitting that
42:05
Speaker 3: to the town. Now, that process can take a little
42:08
Speaker 3: while longer to get approved just because of the amount
42:11
Speaker 3: of plans that has to be submitted to the town.
42:14
Speaker 7: So you got a slightly higher interest rate. Correct, you're
42:18
Speaker 7: going to put more of a down payment.
42:20
Speaker 4: Correct.
42:20
Speaker 7: But on the flip side, new bills always attract premium
42:25
Speaker 7: customers absolutely, and so you'll probably get high rental costs
42:28
Speaker 7: from your renters and new construction. New bills always require
42:35
Speaker 7: for long term or at least for the immedia future,
42:37
Speaker 7: fewer maintenance costs when the people are in there.
42:39
Speaker 4: Absolutely.
42:40
Speaker 7: Are there any other like hitting advantages that are inside
42:43
Speaker 7: this is loan.
42:44
Speaker 3: Well, I can tell you about some cons before I
42:46
Speaker 3: go into some of the images. Right, So let's look
42:48
Speaker 3: at when you're doing anything build to rent. Remember this
42:51
Speaker 3: is an investment, but it's going to take time for
42:54
Speaker 3: you to recoup your investment, right because you got to
42:56
Speaker 3: think about this depending on where you're building that and
42:59
Speaker 3: to just get the plans approve, that could be six
43:02
Speaker 3: months eight months alone, right, then you have to build
43:05
Speaker 3: the property. Right, Building the property can take a year,
43:09
Speaker 3: maybe a little bit longer. So you gotta figure your
43:11
Speaker 3: first two years you have no income coming into this property,
43:14
Speaker 3: and then now you have to go out here and
43:17
Speaker 3: rent the property, and depending on the market at that time,
43:20
Speaker 3: you might be protracting two years ago. Hey the rents
43:23
Speaker 3: are here, I'm going to make X right, or construction
43:26
Speaker 3: costs is this. But if construction costs goes up while
43:30
Speaker 3: you're filing your permits, that can blow up your numbers too.
43:34
Speaker 3: Let's say a rental income goes down or rent income
43:37
Speaker 3: goes down in your neighborhood, that can blow up your
43:40
Speaker 3: numbers as well. So there's cons with doing any type
43:43
Speaker 3: of build to rent type of finance. And so I
43:46
Speaker 3: want any type of deal I should say, not just
43:48
Speaker 3: the finance of just taking on those type of deals,
43:51
Speaker 3: because anything can happen and within that time frame before
43:55
Speaker 3: you even put a shovel on the ground, right, which
43:58
Speaker 3: can really hurt your numbers. So I want all of
44:00
Speaker 3: while folks who are watching us to really understand you
44:03
Speaker 3: can't have these lofty numbers because a lot of times
44:05
Speaker 3: people will come and say, oh, I'm gonna charge this.
44:08
Speaker 3: I know the market is this, but I'm gonna go
44:10
Speaker 3: to hear No, you can't depend on that, right because
44:13
Speaker 3: you got to always plan for the very worst case scenario. Now,
44:18
Speaker 3: on the flip side, your force and appreciation. That's really
44:21
Speaker 3: the truest way to build wealth with real estate is
44:23
Speaker 3: now your force and appreciation. Right now, we're still in
44:27
Speaker 3: an appreciated market. Although home prices and values have come down,
44:33
Speaker 3: they haven't went negative, right, so you're forcing the appreciation.
44:38
Speaker 3: If you're able to get good cost with materials, you
44:42
Speaker 3: can probably find yourself to have a lot of equity
44:45
Speaker 3: in that multifamily that you're building, and then now you'll
44:47
Speaker 3: be able to refinance out of that loan, get into
44:52
Speaker 3: and possibly take some cash out now so you can
44:55
Speaker 3: go and do another project. So builter and financing is
44:59
Speaker 3: a grea right product, but it's strictly for live.
45:02
Speaker 4: Men, not for freshmen, not for freshmen, not for freshmen,
45:05
Speaker 4: not for freshmen.
45:06
Speaker 3: You really have to you have to have a team,
45:09
Speaker 3: And I will advise anyone who's looking to do any
45:11
Speaker 3: type of bill to finance any type of deal like that,
45:14
Speaker 3: get some partners who know what they're doing, because it's
45:17
Speaker 3: a lot to try to develop property, and if you're
45:20
Speaker 3: a rookie, you're gonna make a lot of mistakes, and
45:23
Speaker 3: it's almost sometimes better to either pay for some sort
45:27
Speaker 3: of consultant or mentor because that will save you a
45:31
Speaker 3: lot of time, mistakes, and money.
45:35
Speaker 4: So I would highly advise anyone who's.
45:37
Speaker 3: Looking to do this for the first time to get
45:39
Speaker 3: to get some real people in their circle that can
45:43
Speaker 3: really help them and guide them. So that way you learn.
45:45
Speaker 3: You're paying for it, but you're earning while you're learning.
45:49
Speaker 4: So to speak.
45:50
Speaker 6: So what about people you made a video? I think
45:55
Speaker 6: about this when putting a house in your name as
45:58
Speaker 6: opposed to putting a house not in your name so
46:00
Speaker 6: people can't find out where you live. Different things of
46:02
Speaker 6: the nature.
46:03
Speaker 4: Yeah, what's the what's the.
46:04
Speaker 6: Deal with that?
46:05
Speaker 3: So when you're buying a property, and if you're using
46:08
Speaker 3: a non QM loan, a non QM loan is a
46:11
Speaker 3: non qualified mortgage that basically means that Fannie Mae Freddie
46:16
Speaker 3: mac fha VA won't purchase that loan in the secondary market. Right,
46:21
Speaker 3: this is a portfolio loan, which more non traditional lenders
46:25
Speaker 3: will use for non traditional buyers. Right now, if you're
46:30
Speaker 3: buying a primary residence, there are several lenders out there
46:34
Speaker 3: that will allow you to buy that primary residence in
46:38
Speaker 3: your LLC name. Right, we are living in the post
46:41
Speaker 3: pandemic era where a lot of people made a lot
46:43
Speaker 3: of money over the past two years, and folks are
46:47
Speaker 3: buying you know, their mini mansions and their the mansions
46:51
Speaker 3: right now. And if you don't want the world to
46:55
Speaker 3: be able to find you, the best way is to
46:58
Speaker 3: put it in a l so that way they can't
47:02
Speaker 3: google your name and find you because it's in the LLC.
47:05
Speaker 3: So now the mortgage is in the LLC name, the
47:07
Speaker 3: deed of the properties in the LLC name. You own
47:11
Speaker 3: the LLC, the LLC owns the properties, so it's the same.
47:16
Speaker 3: It's the same way as if you're buying investment properties
47:19
Speaker 3: and putting in LLC, but this just so happens to
47:22
Speaker 3: be your primary residence. So there's several lenders that.
47:25
Speaker 4: Out there that will allow you to do this.
47:28
Speaker 3: But again, interest rates wise, right now, non QM loans
47:33
Speaker 3: is going to be in at seven to nine percent range,
47:36
Speaker 3: just depending on the lender and the deal that you're doing,
47:38
Speaker 3: but it can get done. I've done several loans like
47:41
Speaker 3: that over the past twenty four months where I'm working
47:45
Speaker 3: with celebrities or influencers and we're using these products to
47:50
Speaker 3: kind of shield their identity. And then also when you
47:53
Speaker 3: set up the LLC and it's gonna be a brand
47:54
Speaker 3: new LLC tool. By the way, it doesn't need established
47:57
Speaker 3: business credit. You can have a minimum of a six
48:00
Speaker 3: forty credit score. Obviously, the lower the credit score, the
48:02
Speaker 3: higher interest rate. But the key to this is when
48:06
Speaker 3: you open up the LLC. You know what it says.
48:08
Speaker 3: You open an LLC, it says registered agent. You don't
48:10
Speaker 3: put your name there as the registered agent. Because if
48:13
Speaker 3: someone looks and in some way somehow finds that LLC
48:16
Speaker 3: and your the name is the registered agent, then obviously
48:20
Speaker 3: they're going to know you own it. So you got
48:22
Speaker 3: to have another registered agent's name there, so that way
48:25
Speaker 3: you showed it as well. But yeah, that's a play
48:28
Speaker 3: right now that we're using on a daily basis and
48:31
Speaker 3: my mobile.
48:32
Speaker 6: It's the highest interest, it's a higher interest rate.
48:33
Speaker 3: It's gonna if you have a lower credit score, but
48:36
Speaker 3: if you have seven hundred plus credit scores. Because you're
48:38
Speaker 3: still personal guaranteeing the loan. I want to make that
48:41
Speaker 3: clear too. Although it's going in the LLC's name, you
48:45
Speaker 3: as the owner are personal guaranteeing it. So if you
48:49
Speaker 3: try to skip down and not pay the bank, okay,
48:53
Speaker 3: they're gonna just put it on your personal credit and
48:55
Speaker 3: then they're gonna come after you.
48:57
Speaker 4: So yes, the.
49:00
Speaker 3: Higher credit score, the lower the interest rate. And in
49:02
Speaker 3: today's market, that lower rate will represent probably somewhere in
49:05
Speaker 3: the sevens the higher nine ten percent, especially if you're
49:09
Speaker 3: not low six hundred credit score.
49:10
Speaker 7: So are there are ways and I saw you post
49:13
Speaker 7: this as well, are there ways to lower the interest rate?
49:16
Speaker 4: Obviously we've seen them going up over the.
49:18
Speaker 7: Past twelve months and come down slightly over the past
49:23
Speaker 7: month or so. Are there ways that we can use
49:26
Speaker 7: or strategies we can use to lower our interest rates
49:28
Speaker 7: when it comes to.
49:28
Speaker 4: Finance, and all for primary residences or I.
49:32
Speaker 7: Let's take primary and maybe I guess so.
49:35
Speaker 3: Yeah, So if we're talking the traditional route, right, conventional FHA,
49:39
Speaker 3: you could do what's called a two to one by
49:41
Speaker 3: down right now. Two to one buy down is it
49:44
Speaker 3: used to be popular during the wild cowboy days. It
49:47
Speaker 3: was totally underwritten different but now I like the way
49:50
Speaker 3: the program is. So basically, essentially, as a two to
49:53
Speaker 3: one buy down, you need to seal this concession to
49:55
Speaker 3: fund this buy down.
49:57
Speaker 4: You the borrower.
49:58
Speaker 3: Cannot use your own moneies to do the two to
50:01
Speaker 3: one buy down. So how it works is a lender,
50:05
Speaker 3: let's just say you're doing the FHA loan. Let's just
50:08
Speaker 3: say today's rate is five and a half percent on
50:10
Speaker 3: a thirty year fix. For example, the first year, your
50:14
Speaker 3: interest rate will be three point five percent, the second
50:17
Speaker 3: year the rate will be four point five percent, and
50:20
Speaker 3: year three to maturity date will be the note rate
50:24
Speaker 3: of five and a half percent. So the lender will
50:28
Speaker 3: determine how much money are you saving between three and
50:30
Speaker 3: a half percent and five and a half percent and
50:33
Speaker 3: four and a half percent and five and a half percent.
50:35
Speaker 3: So let's just say over those two years, you're saving
50:39
Speaker 3: a combination of ten thousand dollars. Right, you need to
50:42
Speaker 3: get a sealers concession of ten thousand dollars to fund
50:47
Speaker 3: that two one buy down, and that essentially will give
50:50
Speaker 3: you the opportunity to have a lower rate for the
50:53
Speaker 3: first couple of years, kind of like a teaser rate,
50:55
Speaker 3: so to speak. But it's a thirty year fixed program.
50:58
Speaker 3: And the idea behind this is and this is why
51:01
Speaker 3: lenders started bringing this program back when rates jumped up,
51:04
Speaker 3: is because you know what lenders are still going to lend.
51:06
Speaker 3: We're going to be creative, We're going to figure this
51:08
Speaker 3: shit out right, it's totally illegal. So we're going to
51:10
Speaker 3: bring back products that makes both sense and sense for
51:13
Speaker 3: all parties involved. This is a way to make home
51:17
Speaker 3: ownership affordable over the first couple of years while we
51:21
Speaker 3: ride the wave of this current cycle, and when rates
51:25
Speaker 3: tick down there's going to be a refinance boom in
51:28
Speaker 3: the next twelve to eighteen months, maybe sooner right now.
51:32
Speaker 3: Another way is to buy down points. Buying down points
51:36
Speaker 3: now you can fund this with a salies concession, or
51:40
Speaker 3: you can use your cash out of your bank account
51:42
Speaker 3: to buy down points and as part of your closing
51:43
Speaker 3: costs as well. And one point is equivalent of one
51:47
Speaker 3: percent of the loan amount, So if you're buying, let's
51:50
Speaker 3: just say it's a five hundred thousand dollars loan, one
51:54
Speaker 3: point is five thousand dollars, and that will bring your
51:57
Speaker 3: rate down, depending on the lender, a quarter point to
52:01
Speaker 3: three eighths of a point. So if it started off
52:03
Speaker 3: at five and a half, you brought a point, it
52:05
Speaker 3: will go to five point one two five percent or
52:08
Speaker 3: five and a quarter on a thirty year fix. And
52:11
Speaker 3: each point you buy will knock down quarter to three
52:14
Speaker 3: as of a point, So that's also another way that
52:18
Speaker 3: you can bring down your interest rate. But ultimately the
52:21
Speaker 3: way to lock in the lowest rates possible is to
52:25
Speaker 3: have the highest possible credit score that you can have,
52:29
Speaker 3: especially in today's market, where you know, even if you
52:32
Speaker 3: have a seven hundred credit score, you might not still
52:35
Speaker 3: get the lowest rate, whereas a year ago that still
52:37
Speaker 3: would give you a great rate at seven hundred and
52:39
Speaker 3: seven to twenty.
52:40
Speaker 4: No, you really have to be in that.
52:42
Speaker 3: If you're going conventional, you really have to be seven
52:45
Speaker 3: forty seven sixty and higher right now to really get
52:48
Speaker 3: that whatever that national rate that people see online with
52:53
Speaker 3: no points, you really have to be in that higher
52:56
Speaker 3: upper echelon of credit when you're talking conventional now, FHA,
53:00
Speaker 3: you can have a six eighty seven hundred credit store
53:02
Speaker 3: and still get a great rate with those scores.
53:05
Speaker 7: So in that first scenario going from that's that example
53:10
Speaker 7: three point five to five point five, after it gets
53:12
Speaker 7: let's say after that third year, is it capped at
53:14
Speaker 7: the five point five?
53:15
Speaker 4: Correct?
53:15
Speaker 3: It's capped right, So it's not an adjustable rate. Correct,
53:17
Speaker 3: it's not adjustable rate. It's a thirty it's a thirty
53:20
Speaker 3: year fixed mortgage. But speaking of adjustable rates, that's another way.
53:23
Speaker 3: But adjustble rates, you got to really look at the
53:25
Speaker 3: math and see does it make sense for me to
53:29
Speaker 3: take this adjustable rate because the a five year so
53:33
Speaker 3: adjustment rates are typically fixed for five years, seven years,
53:36
Speaker 3: or ten years, and then after that it adjusts for
53:39
Speaker 3: the life of the loan. Depending on where the market is,
53:41
Speaker 3: the rate can go up and go down. So folks
53:45
Speaker 3: who had adjustable rates prior to the pandemic, they won
53:49
Speaker 3: because they rates. If there was an adjustment phase, they
53:53
Speaker 3: rates drop down, so they didn't really necessarily have to
53:57
Speaker 3: refinance and pay closing costs and things like that because
54:00
Speaker 3: the market was in a favor. Now on the flip.
54:03
Speaker 4: Side, huh, big difference.
54:06
Speaker 3: So they I advise all my clients and people who
54:08
Speaker 3: I was speaking to who had adjustables, you might as
54:11
Speaker 3: well get out of it because the ten, fifteen, twenty,
54:15
Speaker 3: and thirties the cheapest has ever been, so it doesn't
54:17
Speaker 3: make sense to play the risk. But in this market,
54:20
Speaker 3: adjustable rates make sense. For someone who is not looking
54:24
Speaker 3: and they know that not going to stand at home
54:26
Speaker 3: for the long term. This is not a thirty year
54:28
Speaker 3: play for them. This is a five year place. So
54:30
Speaker 3: if you know, I'm gonna be in this house for
54:32
Speaker 3: five years, and I'm just using this as my starter home.
54:35
Speaker 3: I wouldn't recommend getting a five year ARM I would
54:38
Speaker 3: probably say do a seven or ten, because life happens
54:41
Speaker 3: and you never know. And if you see an opportunity
54:43
Speaker 3: to refinance over the next couple of years and you
54:45
Speaker 3: still own that house, take advantage of the refinance opportunity
54:48
Speaker 3: as well. So adjustable rate mortgagees can work if it
54:51
Speaker 3: makes sense, but in most cases, from what I'm seeing,
54:54
Speaker 3: sometimes it just doesn't make sense.
54:57
Speaker 6: So let's talk about hedge funds buying single family homes.
55:01
Speaker 4: What's the deal with that business.
55:03
Speaker 3: Look, I know there's a lot of chat on the
55:06
Speaker 3: internet about the housing market, and a lot of folks
55:09
Speaker 3: will tell you, don't buy a house right now, don't
55:12
Speaker 3: do this right now. I tend to follow the money.
55:16
Speaker 3: What is the money doing. The money is the institutional
55:19
Speaker 3: investors and what they're doing right now, they're buying houses
55:23
Speaker 3: in the forms of billions and billions and billions of dollars.
55:27
Speaker 3: So for me, the light bulb goes over my head
55:29
Speaker 3: and say, hmm, what do they know that we don't know?
55:32
Speaker 3: These people are smart as hell. They're not stupid. And
55:36
Speaker 3: if they're buying homes, then why are we sitting on
55:39
Speaker 3: the sidelines? Well, not us, but why are some of
55:42
Speaker 3: our audience sitting on the sidelines and waiting for a
55:46
Speaker 3: quote unquote crash or anything like that to happen to
55:50
Speaker 3: get themselves in the game. If you look at the
55:52
Speaker 3: institutional money out there, they're buying all of Georgia right
55:56
Speaker 3: now for the most part. You know, you got Jeff
56:00
Speaker 3: Bezos and his back companies that are buying real estate.
56:04
Speaker 3: JP Morgan, Chase, his partner with another hedge fund. They're
56:07
Speaker 3: buying billion dollars worth of real estate right All of
56:10
Speaker 3: these companies, all these institutional investors are putting their money
56:15
Speaker 3: into the safe haven of real estate for a reason
56:18
Speaker 3: and the purpose because real estate is going nowhere. Right,
56:22
Speaker 3: Crypto was up to sixty plus thousand dollars, now.
56:25
Speaker 4: What is it at? Stocks was up? Where? And where
56:29
Speaker 4: is that?
56:30
Speaker 3: If the housing market does crash, I can still go
56:33
Speaker 3: touch my house. The tenant still has to pay me.
56:36
Speaker 3: I'm still going to get the same cash flow because
56:40
Speaker 3: with inflation rising, even though it's coming down a little bit,
56:44
Speaker 3: people still have to pay the rent and If you
56:46
Speaker 3: buy right, there's always going to be cash flow coming
56:49
Speaker 3: in no matter what the market is doing. So real
56:51
Speaker 3: estate is it will be probably one always one of
56:55
Speaker 3: the greatest investment tools out there, especially because of the
56:58
Speaker 3: tax benefits that come with it. And you have to
57:01
Speaker 3: understand the tax play behind buying that much real estate
57:05
Speaker 3: as well. So these people are rich and wealthy and
57:08
Speaker 3: they're trying to hedge their taxes and minimize it too.
57:11
Speaker 3: So what's the best player real estate? Brick and mortar
57:14
Speaker 3: because of things like depreciation, cost segregation, there's a lot
57:18
Speaker 3: of different things that you can do to offset your wins.
57:22
Speaker 3: If you got huge capital gains, you can put that
57:24
Speaker 3: in ten thirty one changes, buy real estate, so you
57:27
Speaker 3: defering your taxes down the road. Right real estate gives
57:31
Speaker 3: you all these plays that the wealthy use at scale
57:36
Speaker 3: to continue to grow their wealth. Whereas with us in
57:40
Speaker 3: our community, we like to listen to everybody else, but
57:43
Speaker 3: instead of following the money. So the institution of vestas
57:47
Speaker 3: are going to continue to buy real estate and also
57:51
Speaker 3: playing devil's advocate.
57:53
Speaker 4: Why is that tool?
57:54
Speaker 3: Besides everything I mentioned, is to keep the middle class
57:57
Speaker 3: middle classing right to make America ten period, like the
58:03
Speaker 3: middle class areas. They don't want you to own homes.
58:07
Speaker 3: They don't want you to be wealthy, they don't want
58:09
Speaker 3: you to be rich, they don't want you to build
58:10
Speaker 3: your wealth. So they're buying all these properties in my opinion,
58:16
Speaker 3: to keep the middle class at the middle class.
58:17
Speaker 6: So but like a lot of investors, like Julian Gordon,
58:20
Speaker 6: they like, it doesn't make sense to invest in multi
58:22
Speaker 6: in a single family, invest in multi family homes. So
58:26
Speaker 6: this is contrary to that because this is billion dollar entities.
58:29
Speaker 6: They're not buying well, they're buying multi people, but they're
58:31
Speaker 6: buying single family homes.
58:33
Speaker 3: Yeah, because single family is so you know, shout out
58:35
Speaker 3: to Julia first and foremost in the multi family movement.
58:39
Speaker 3: But I understand his logic is if it's a single family,
58:44
Speaker 3: it's one income coming in and if they don't pay,
58:46
Speaker 3: then somebody has to pay that debt.
58:48
Speaker 4: Whereas it's a.
58:48
Speaker 3: Multi family, you have multiple rents coming in, so if
58:51
Speaker 3: one person doesn't pay, you have four units. You still
58:54
Speaker 3: got three rents coming in that can cover, right. So
58:56
Speaker 3: I understand that logic, but the reality of it is
59:00
Speaker 3: people live in single family rent who's longer than multi families.
59:04
Speaker 3: Multi family apartments are smaller than somebody want to live
59:07
Speaker 3: in house. So if you have children, you don't want
59:10
Speaker 3: to live in the hood where most multi families at.
59:14
Speaker 3: And now New York is different, right because you can
59:17
Speaker 3: go to Brooklyn and be in Park Slow and it's
59:21
Speaker 3: five million dollar multifamilies there, right. So New York is
59:25
Speaker 3: just a different peace in the self. So I can't
59:28
Speaker 3: compare New York to the rest of the country. But
59:30
Speaker 3: if we all travel around the country, and where you
59:32
Speaker 3: see multi families at. You don't see them in the suburbs.
59:35
Speaker 3: You don't see them in the good school districts, you
59:38
Speaker 3: don't see them in where there's good stores and amenities
59:41
Speaker 3: and things of that nature in the area. So most
59:43
Speaker 3: folks who have children, especially young children, that want school districts,
59:48
Speaker 3: they want to live in a single family home.
59:50
Speaker 4: They want backyard and bar mitzvahs.
59:52
Speaker 3: They probably just can't afford to buy right now, but
59:54
Speaker 3: they still want to live good.
59:56
Speaker 4: Right.
59:57
Speaker 3: So America's institutional vess understand that this is why they're
1:00:02
Speaker 3: doing more build to rent properties where they would build
1:00:06
Speaker 3: these communities for single families, and traditionally they would sell
1:00:09
Speaker 3: those and flip them now with rent at all time
1:00:14
Speaker 3: high style one bedroom apartment is on average nationally two
1:00:18
Speaker 3: thousand dollars. A one bedroom apartment in New York right
1:00:21
Speaker 3: now average is six thousand dollars. Right, look at what's
1:00:25
Speaker 3: happened in New York. The empty office spaces are now
1:00:28
Speaker 3: being converted to what.
1:00:31
Speaker 4: Apartments. Right.
1:00:32
Speaker 3: So, investors, especially institutional investors, are always going to find
1:00:37
Speaker 3: a way to make money. So it's no right or
1:00:40
Speaker 3: wrong way. Whether single family or multi family, to me,
1:00:43
Speaker 3: is no debate. Right if you are there some areas
1:00:47
Speaker 3: where it might be better to buy a single family
1:00:49
Speaker 3: and rentals. I know a lot of investors that swear
1:00:51
Speaker 3: up and down about single family rentals and won't touch
1:00:55
Speaker 3: a multi family and vice versa, like the Julian Gordons
1:00:57
Speaker 3: of the world. They won't touch a single family. They
1:00:59
Speaker 3: want more family. So I think it's really about picking
1:01:02
Speaker 3: your poison and doing what works for you, not kind
1:01:06
Speaker 3: of following suit with everyone else and understanding your numbers
1:01:10
Speaker 3: and what your ROI needs to be and they kind
1:01:12
Speaker 3: of moving on from there.
1:01:13
Speaker 7: Do you think that's where, because I'm seeing a lot
1:01:15
Speaker 7: of commercial real estate being vacant, you think that is
1:01:20
Speaker 7: the way we're headed with this, those commercial real estate
1:01:22
Speaker 7: spaces will now become rental properties inside.
1:01:26
Speaker 4: It would be like a conversion. Oh absolutely.
1:01:28
Speaker 3: I mean when we was at lunch with down People's
1:01:30
Speaker 3: we was having that conversation too, where conversions. There's billions
1:01:33
Speaker 3: of dollars just in New York City right now that's
1:01:36
Speaker 3: being flooded into the market in these office retail spaces
1:01:40
Speaker 3: that are now because look look what happened during the pandemic,
1:01:44
Speaker 3: companies people got to work from home. Why do I
1:01:48
Speaker 3: need to pay one hundred thousand dollars a month with
1:01:51
Speaker 3: that space? So what are the land and those are
1:01:55
Speaker 3: rentals right, they're leasing. They're not owning these skyscrapers in
1:01:59
Speaker 3: these buildings. So they rather pay the penalties to get out,
1:02:05
Speaker 3: then they can deduct it anyway off they taxes.
1:02:07
Speaker 4: So it's a whole place.
1:02:08
Speaker 3: So it really doesn't If they are a profitable company
1:02:10
Speaker 3: and they got a lot of money, it's not going
1:02:12
Speaker 3: to hurt them to get out their least. But from
1:02:14
Speaker 3: the landlord perspective, it's going to hurt me now because
1:02:17
Speaker 3: maybe I got the penalties and all this upfront money,
1:02:20
Speaker 3: but now I still got a vacant property. So why
1:02:23
Speaker 3: not convert it? Because there's a housing crisis. I think
1:02:26
Speaker 3: America needs about seven million homes right now to kind
1:02:30
Speaker 3: of balance out the housing market. So why not where
1:02:34
Speaker 3: you have all these cities and people now want the amenities,
1:02:37
Speaker 3: they want downtown living, they want the New York City flair,
1:02:41
Speaker 3: so to speak, in smaller towns and things of that nature,
1:02:44
Speaker 3: So why not create loss? Why not can create one bedrooms,
1:02:47
Speaker 3: two bedrooms in a downtown area because now that's going
1:02:50
Speaker 3: to command what more rent, So you'll find people that
1:02:55
Speaker 3: will live in these as an apartment versus businesses that
1:03:00
Speaker 3: probably can't afford to rent them. So it's a play
1:03:03
Speaker 3: that's going on, and there's billions of dollars that are
1:03:07
Speaker 3: being dumped into converting office spaces into apartment So.
1:03:15
Speaker 6: How do you get licensed to become a real to
1:03:17
Speaker 6: a loan officer?
1:03:18
Speaker 3: Good question, and I don't think we ever spoke about that.
1:03:22
Speaker 3: So to get a real estate license, I think it's
1:03:26
Speaker 3: it's cheap. It's a couple hundred dollars, right, a couple
1:03:29
Speaker 3: hundred dollars investment. You need to take a seventy five
1:03:32
Speaker 3: hour course, be over eighteen years old.
1:03:36
Speaker 4: Pass a background check, past the class.
1:03:40
Speaker 3: Once you pass the class, then you have to submit
1:03:43
Speaker 3: for your license and for the state that you're in,
1:03:45
Speaker 3: and then once you get approved, you have to get
1:03:49
Speaker 3: sponsored by real estate brokerage and then once you get sponsored,
1:03:54
Speaker 3: they issue your license. And then today I'm a real
1:03:57
Speaker 3: to So you really can become a real estate agent
1:04:00
Speaker 3: thirty days forty five days is depending on where you're located,
1:04:04
Speaker 3: and it's only going to cost you a couple hundred
1:04:06
Speaker 3: dollars to do, so it's not an expensive investment. Now
1:04:10
Speaker 3: on the flip side, just because your licensed real estate
1:04:13
Speaker 3: agent doesn't mean you're gonna make no money. The average
1:04:15
Speaker 3: real estate agent probably does one deal a year, if
1:04:18
Speaker 3: that right. So twenty percent of the people and to
1:04:22
Speaker 3: have a real estate license are doing eighty percent of
1:04:25
Speaker 3: the business. And it's like any sales profession. I'm pretty
1:04:28
Speaker 3: sure when you as financial planning, the numbers were pretty
1:04:30
Speaker 3: much the same.
1:04:31
Speaker 4: Even on the loan office socide. It's the same thing.
1:04:33
Speaker 3: So just because you got a license, it doesn't give
1:04:35
Speaker 3: you a license to print money. You have to go
1:04:38
Speaker 3: out there and you have to network and you have
1:04:41
Speaker 3: to really roll up your sleeves to get some business.
1:04:44
Speaker 3: Because it's not easy at all. I think in New
1:04:46
Speaker 3: York Co loan is over thirty thousand real estate active
1:04:49
Speaker 3: real estate licenses. Thirty thousand people are not closing deals.
1:04:52
Speaker 3: You know, it's not happening, so, but it is. I
1:04:58
Speaker 3: believe that if you are looking to get into real estate,
1:05:01
Speaker 3: and if you don't have the capital to get into
1:05:04
Speaker 3: real estate, go get licensed.
1:05:06
Speaker 4: It's not going to hurt you.
1:05:07
Speaker 3: Because everybody knows somebody who needs to rent an apartment
1:05:10
Speaker 3: or do something like that.
1:05:11
Speaker 4: You can.
1:05:11
Speaker 3: It's so many different streams of income when you become
1:05:14
Speaker 3: a licensed realtor. You can rent apartments, you can sell homes.
1:05:17
Speaker 3: You can represent sellers, you can represent buyers, you can
1:05:19
Speaker 3: represent investors, developers. You can property manage right. You can
1:05:23
Speaker 3: do bpo's broken price opinions, which is basically appraisers right
1:05:27
Speaker 3: on behalf of the banks. You can do short sale negotiations.
1:05:30
Speaker 3: You can whole sale because in some states now they
1:05:32
Speaker 3: requiring you to have a real estate license to even
1:05:35
Speaker 3: whole sale properties.
1:05:36
Speaker 4: Right.
1:05:37
Speaker 3: So there's many different avenues of making money when you
1:05:41
Speaker 3: have your real estate license. You just got to figure
1:05:43
Speaker 3: out what's going to be your play and kind of
1:05:45
Speaker 3: stick to it. Now also to get your mL license,
1:05:48
Speaker 3: to get become a licensed loan officer, I believe you
1:05:51
Speaker 3: got to take like a twenty.
1:05:52
Speaker 4: Five hour.
1:05:55
Speaker 3: Class and tests, and then when you pass that, you
1:05:58
Speaker 3: got to take a federal exam. You pass the federal
1:06:01
Speaker 3: exam again, it's a couple hundred dollars for a couple
1:06:06
Speaker 3: hundred dollars investment to get licensed. Once you pass the
1:06:09
Speaker 3: federal exam, then you submit to the state, you submit
1:06:13
Speaker 3: to NMLS. You gotta do your fingerprints, your background check.
1:06:15
Speaker 3: It's a little bit more intense on my side because
1:06:18
Speaker 3: of the wild cowboy days and the market crash, so
1:06:20
Speaker 3: they kind of overregulated us. They blamed us for everything,
1:06:23
Speaker 3: so we got overregulated a little bit. So now once
1:06:27
Speaker 3: you get your passed and then you have to get
1:06:30
Speaker 3: sponsored by a mortgage company, but the same rules apply.
1:06:32
Speaker 3: It doesn't mean you're going to make money, but both
1:06:34
Speaker 3: careers could be six figure careers. Seven figure careers if
1:06:38
Speaker 3: you really hit a lick and you really get a
1:06:41
Speaker 3: good referral sources and you're out there putting in.
1:06:44
Speaker 6: Your way and just a source of way to get information.
1:06:47
Speaker 3: Most importantly right information and resources. Right now, you have
1:06:52
Speaker 3: a real estate license Now you got access to the MLS,
1:06:55
Speaker 3: the Multiple Listening service. Now you see all the homes
1:06:58
Speaker 3: that are being listed, you see who listen to homes.
1:07:00
Speaker 3: You get access to the public records. You get to
1:07:02
Speaker 3: learn how to navigate the systems. You get to learn
1:07:06
Speaker 3: how to look for comparable sales.
1:07:08
Speaker 4: Right.
1:07:09
Speaker 3: So there's a lot of knowledge that comes with this.
1:07:12
Speaker 3: And if you get with the right brokerage, the right
1:07:14
Speaker 3: real estate brokerage will always offer training. They will always
1:07:17
Speaker 3: have mortgage professionals in their offices like me, training you
1:07:20
Speaker 3: on long products. They'll have title companies in your office.
1:07:23
Speaker 3: You'll learn so much. So it's a great way to
1:07:26
Speaker 3: get started if you want to be a real estate
1:07:29
Speaker 3: investor is to start off by getting your license, earning
1:07:32
Speaker 3: some money. Now you take your commissions, and now you
1:07:34
Speaker 3: start buying properties because now you start learning all the
1:07:37
Speaker 3: players are, especially the local players in your area. And
1:07:41
Speaker 3: now you can build a referral worker. I know people
1:07:43
Speaker 3: who got their real estate license and don't sell the
1:07:45
Speaker 3: house at all. They just a referral network. They'll refer
1:07:48
Speaker 3: to agents all over the country and they'll just get
1:07:52
Speaker 3: all the leads and they'll make thirty.
1:07:53
Speaker 4: Three percent of that transaction.
1:07:55
Speaker 3: Right, so that's also another play too, right, So there's
1:07:59
Speaker 3: a lot that you can do.
1:08:01
Speaker 4: With you have your real estate license face.
1:08:03
Speaker 7: Benji, I'm looking at you, man, and I remember you
1:08:07
Speaker 7: know it was Marsha twenty nineteen when you sat down
1:08:10
Speaker 7: in the dining room.
1:08:11
Speaker 8: And what I've seen, obviously very close up is the
1:08:16
Speaker 8: growth obviously you in the real estate world, obviously in
1:08:20
Speaker 8: the social media world as well.
1:08:22
Speaker 7: And I've listened to you over and over and every
1:08:25
Speaker 7: time I hear you, I feel like you're being more
1:08:26
Speaker 7: You're more educated than the last time. Right, So it
1:08:29
Speaker 7: feels like you're staying on top of the game. But
1:08:31
Speaker 7: I wonder, now, as you look at it from where
1:08:33
Speaker 7: you stand, what's a missing like, what's a missing link
1:08:37
Speaker 7: inside of real estate that nobody has tried to solve
1:08:42
Speaker 7: or nobody.
1:08:42
Speaker 3: Has found a solution for just yet what's missing? I
1:08:46
Speaker 3: think representation matters in our in the real estate world.
1:08:51
Speaker 3: There's not too many black real estate mortgage broken riches,
1:08:56
Speaker 3: owners and banks, mortgage banks out there.
1:09:00
Speaker 4: Now.
1:09:00
Speaker 3: When you're in cities like Atlanta or Houston where's predominantly black, yes,
1:09:04
Speaker 3: you'll see more black real estate brokerages, more black mortgage
1:09:09
Speaker 3: brokerages or mortgage banks. But when you're in the Northeast
1:09:13
Speaker 3: East Coast, I mean, how many black mortgage company owners
1:09:17
Speaker 3: do you guys know? I don't, I know, and I'm
1:09:21
Speaker 3: in this business for twenty years and I probably say
1:09:23
Speaker 3: I know two or three black people that own a
1:09:27
Speaker 3: mortgage bank or mortgage brokerage. So for me, what's missing
1:09:31
Speaker 3: in my career I've been doing this now twenty years
1:09:34
Speaker 3: is ownership. Most people think I own a mortgage company,
1:09:38
Speaker 3: but I don't. I just represent my team and I
1:09:41
Speaker 3: represent my last name.
1:09:42
Speaker 4: So for me, my.
1:09:44
Speaker 3: Goals have shifted, especially because of the past couple of
1:09:47
Speaker 3: years of what we've all been through together as a
1:09:50
Speaker 3: unit with Euyo University. We're doing events and traveling and
1:09:54
Speaker 3: now becoming an international speaker. I'm going to definitely use
1:09:57
Speaker 3: that all the time now, Rashana, thank you as you should.
1:10:00
Speaker 3: First he said I was the authority of real estate,
1:10:01
Speaker 3: and I'm like, what Now I believe them and I'm
1:10:05
Speaker 3: living that. But that's another story, y'all. But ownership for
1:10:09
Speaker 3: me is what matters. So now I'm in the process
1:10:12
Speaker 3: of getting my mortgage broker license to open up my
1:10:15
Speaker 3: own mortgage company, which I would turn that into a
1:10:19
Speaker 3: mortgage bank and hopefully within the next five years take
1:10:23
Speaker 3: that mortgage bank public and have a couple billion dollar valuation.
1:10:27
Speaker 3: So for me, what's missing in my career right now
1:10:30
Speaker 3: is the representation of ownership. Because it's great to sit
1:10:33
Speaker 3: out here and do content. It's great out here to
1:10:35
Speaker 3: teach people and do loans for people, But how do
1:10:39
Speaker 3: I bring up the next Who's next? Right, who's the
1:10:43
Speaker 3: twenty year old MG, the mortgage guy who might watch
1:10:46
Speaker 3: this and they might want to get into the business,
1:10:48
Speaker 3: but they want to work for someone that looks like them,
1:10:50
Speaker 3: that talks like them, that understands where they come from.
1:10:53
Speaker 4: Right, That's where I want to do.
1:10:55
Speaker 3: So it's easy for me now to hire people and
1:10:57
Speaker 3: have them a part of my team. Right now, I
1:11:00
Speaker 3: got to really do this for my last name, how
1:11:02
Speaker 3: do I really leave the legacy of everything that I
1:11:05
Speaker 3: work hard for? And that's really what ownership bro So yeah,
1:11:08
Speaker 3: so Galland Mortgage Group. Hopefully I can get that name
1:11:12
Speaker 3: approved with the licensing and the FEDS and everything like
1:11:15
Speaker 3: that coming soon. But that's my next step is ownership
1:11:19
Speaker 3: and becoming one of the biggest black owned mortgage companies
1:11:24
Speaker 3: in the world.
1:11:26
Speaker 6: You have it, ladies and gentlemen. One last thing before
1:11:28
Speaker 6: you got USDA loans.
1:11:31
Speaker 3: Us DA loans, those are euro rural loans, right, so,
1:11:37
Speaker 3: and believe it or not, there's a lot of rural
1:11:39
Speaker 3: areas in America, right But it's again it's one hundred
1:11:43
Speaker 3: percent finance and I believe the minimum credits call is
1:11:45
Speaker 3: six twenty urban areas. Yeah, yeah, there's there's a lot
1:11:49
Speaker 3: of opportunity to use these loans, and that's it's something
1:11:53
Speaker 3: that I don't speak about a lot of at all
1:11:55
Speaker 3: because I don't do too many of these loans. But
1:11:57
Speaker 3: it's a good program. You can buy ten fifteen agre
1:12:03
Speaker 3: almost that are sitting on these type of land where
1:12:06
Speaker 3: you couldn't do that with a conventional mortgage.
1:12:08
Speaker 4: You can get great low interest rates.
1:12:11
Speaker 3: There are some of the programs have income restrictions on it,
1:12:14
Speaker 3: so you kind of have to check and see what
1:12:16
Speaker 3: if there are income restrictions for the areas that you're
1:12:18
Speaker 3: looking to buy in. But ultimately it's a great loan
1:12:22
Speaker 3: for someone who's looking to own a lot of land
1:12:25
Speaker 3: and you can get one hundred percent finance.
1:12:28
Speaker 4: And with low low interest rates. Yeah.
1:12:33
Speaker 3: So it's a great program, but I'm not gonna say
1:12:35
Speaker 3: I hold you up. I don't fund too many of
1:12:38
Speaker 3: these loans. I can, you know, do a whole class
1:12:42
Speaker 3: on this at a later note. But for this purposes,
1:12:45
Speaker 3: I would just say Google's your best friend and kind
1:12:48
Speaker 3: of really look into it more.
1:12:49
Speaker 4: Google's your friend, bro. Google's your best friend. Bro.
1:12:52
Speaker 6: You have it? So how can people contact you for
1:12:54
Speaker 6: mortgages or buy your book? And then to talk about
1:12:58
Speaker 6: the real estate blueprint as well?
1:13:00
Speaker 3: So apply with MG dot com if you want to
1:13:04
Speaker 3: do along with me and my team with licensed in
1:13:06
Speaker 3: twenty one states pretty much from New York to Florida, Cali, Texas, Illinois,
1:13:14
Speaker 3: Rhode Island, Alabama, Tennessee, Indiana, Chicago, Illinois. I mean, I
1:13:20
Speaker 3: love Chicago, shoutout with Sean Scott, so we do a
1:13:23
Speaker 3: lot of deals over there. So apply with MG dot com.
1:13:26
Speaker 3: You can also go to my Instagram page MG. The
1:13:28
Speaker 3: Mortgage Guy link is in the bio. Set up a
1:13:30
Speaker 3: consultation with the team. Where would love to help you,
1:13:32
Speaker 3: guys achieve your real estate goals, especially if you're learning
1:13:34
Speaker 3: from me.
1:13:35
Speaker 4: We'd love to help you.
1:13:36
Speaker 3: The book House Economics and Real Estate Investors Manifesto. Both
1:13:41
Speaker 3: are number one best selling books on Amazon terms two times,
1:13:45
Speaker 3: the third times The chim Dog Got another book coming
1:13:47
Speaker 3: out soon soon come, and the books. So I'm glad
1:13:49
Speaker 3: you brought that up a shot because the bookstore is
1:13:51
Speaker 3: like my baby right now, because I have a lot
1:13:54
Speaker 3: of information in my head and I want to be able.
1:13:56
Speaker 4: To provide people.
1:13:57
Speaker 3: I want to be the number one source for real
1:14:00
Speaker 3: estate education in the world. So people like to read.
1:14:03
Speaker 3: Although I'm not a reader per se, I know other
1:14:07
Speaker 3: people out there love to read books. They love to
1:14:09
Speaker 3: hold the book in the hand and just read it right.
1:14:11
Speaker 3: So for me, it wasn't enough just to put out
1:14:15
Speaker 3: courses and do webinars and do content.
1:14:17
Speaker 4: It was like, how do I reach more people?
1:14:20
Speaker 3: And that's where the bookstore and putting out books came
1:14:23
Speaker 3: into place. So for me, I don't want to. You know,
1:14:25
Speaker 3: most people that put out books a book every two years,
1:14:28
Speaker 3: I'm like.
1:14:28
Speaker 4: Forget that.
1:14:29
Speaker 3: I can put out a book five times a year
1:14:31
Speaker 3: if I really wanted to, because the information is always
1:14:34
Speaker 3: changing and I can always do a house economic second edition,
1:14:37
Speaker 3: third edition, fourth edition is so forth right as time
1:14:40
Speaker 3: go on. So the bookstore, you know, go to MG
1:14:43
Speaker 3: Bookstore dot com and you can pick up some books
1:14:45
Speaker 3: and then the Home Buys Blueprint Volume one and volume two.
1:14:49
Speaker 3: Volume three is coming soon. So it's a part of
1:14:53
Speaker 3: s exclusively part of e y l University. E y
1:14:56
Speaker 3: L University is the number one online financial literacy platform
1:15:00
Speaker 3: the world, powered by Recession Proof. We have what twenty
1:15:04
Speaker 3: seven chapters in there. We have the Home Buys Blueprint
1:15:07
Speaker 3: Via one, Volume two. I mean we have a whole calendar,
1:15:09
Speaker 3: man and it's like it seems like it's something going
1:15:11
Speaker 3: on every single day. We have the book club with
1:15:14
Speaker 3: Troy and Greg shout out to Greg. We have financial
1:15:17
Speaker 3: planning calls with Rashad. You have break bread calls with
1:15:20
Speaker 3: me once a month as well, and you have so
1:15:24
Speaker 3: many different things that are at ey L University. So
1:15:27
Speaker 3: I would highly recommend you guys, be a part of
1:15:29
Speaker 3: eyl University, become an earner and take your financial literacy
1:15:33
Speaker 3: and your business and your education to the next level.
1:15:36
Speaker 4: So yeah, go to y l University dot.
1:15:38
Speaker 3: Com if you want to get the Homeboys Blueprint Via one,
1:15:41
Speaker 3: Voyume two and potentially volume three coming soon, and everything
1:15:44
Speaker 3: else that we have to offer in ey L University
1:15:47
Speaker 3: and what else you ask me what else.
1:15:50
Speaker 4: I think. I think it just took my part, man,
1:15:54
Speaker 4: I think you coveted man. I don't think I got
1:15:56
Speaker 4: my launch anymore. What is it? Twenty seven chapters? What else?
1:16:00
Speaker 4: I think you ran down everything?
1:16:01
Speaker 7: Bro, it's a lot. Yeah, chapter to be in person,
1:16:04
Speaker 7: chapter meetings. There will obviously be some events. So yeah,
1:16:07
Speaker 7: it's doing improved.
1:16:09
Speaker 6: Yeah.
1:16:09
Speaker 4: Like I said, the Biggest just got bigger. So we
1:16:11
Speaker 4: really the.
1:16:12
Speaker 3: Biggest Scott bigger? Yeah, the Biggest just got bigger. You know,
1:16:15
Speaker 3: you guys are on a world tour. Biggas just got
1:16:20
Speaker 3: bigger and it's only going to get bigger, god willing.
1:16:23
Speaker 3: And I'm just happy to be a part of the ride.
1:16:25
Speaker 3: I mean, I remember the first episode, first episode. I
1:16:27
Speaker 3: was nervous as hell. I called them after the episode, said, Yo,
1:16:30
Speaker 3: can we.
1:16:30
Speaker 4: Just not can we not put that out? Can you
1:16:32
Speaker 4: not put that out? I thought it was trash and
1:16:34
Speaker 4: it's like, nah, you're good. I said, nah, bro, it's trash, Like,
1:16:37
Speaker 4: can we not put it out?
1:16:38
Speaker 3: I was nervous as hell and that thing took off,
1:16:41
Speaker 3: And I'm happy that you guys ain't listen to me
1:16:44
Speaker 3: because it changed the trajectory of all of our lives,
1:16:48
Speaker 3: and I'm very thankful for YouTube Brothers for allowing me
1:16:52
Speaker 3: to always come back on the show and being a
1:16:55
Speaker 3: part of the network and having businesses together, and just
1:16:58
Speaker 3: the friendship and the camaraderie and the the hood and
1:17:01
Speaker 3: the conversations that we have at individuals and as a
1:17:03
Speaker 3: group's very important to me. So I want to thank
1:17:06
Speaker 3: you guys for everything. That this guy calls me like
1:17:09
Speaker 3: a month ago says, Yo, you're not hitting the mark
1:17:11
Speaker 3: or something, and I'm like, damn right. So these are
1:17:14
Speaker 3: the kind of conversations and this is real. Your circle
1:17:17
Speaker 3: is important. Those are the type of conversations you need.
1:17:19
Speaker 3: People who are going to be honest with you. That's
1:17:22
Speaker 3: in your circles. It's not going to give you yes
1:17:24
Speaker 3: man answers and stuff like that. Even when you're not
1:17:26
Speaker 3: asking them for their opinion, they'll still call you and
1:17:29
Speaker 3: give you their honest opinion without trying to get at
1:17:33
Speaker 3: you in a negative way, because you never know how
1:17:35
Speaker 3: people receive information too at the same time, so I
1:17:38
Speaker 3: always appreciate when both of you guys call me on
1:17:40
Speaker 3: something and say Yo, MG, X Y and Z or
1:17:43
Speaker 3: x Y and Z like you did, and you know
1:17:46
Speaker 3: what I'm saying, I'm appreciative of that, and I'm thankful
1:17:48
Speaker 3: for that. So I always got to give you guys
1:17:49
Speaker 3: your flowers when I have the opportunity to, especially in
1:17:53
Speaker 3: the public setting, like earn your LEISUA podcasts or earn
1:17:57
Speaker 3: your leisure show the biggest show in the world.
1:18:00
Speaker 4: Love appreciate it. Brother, Eyuniversity dot com.
1:18:05
Speaker 7: Troy shout at u IL University, I shout everybody on
1:18:10
Speaker 7: Patreon shot that all our earners that are out there
1:18:13
Speaker 7: that are just repping the brand. I told you we
1:18:15
Speaker 7: started this thing out when we just said, yo, just
1:18:17
Speaker 7: one person to day and that's grown into millions and
1:18:19
Speaker 7: millions of people. So just a testament to hard work,
1:18:22
Speaker 7: testament to networking and creating real relationships and real brotherhood.
1:18:26
Speaker 7: And I hope when you hear Matt speak and you
1:18:29
Speaker 7: know all those conords that he just said, that's just
1:18:31
Speaker 7: you know, it goes to show you like you never
1:18:32
Speaker 7: know who's gonna come into your life at what time,
1:18:34
Speaker 7: but make the opportunity worthwhile. And I'm glad that we
1:18:37
Speaker 7: did that with you, my brother, And there's you know
1:18:40
Speaker 7: a number of people that we've done that with.
1:18:41
Speaker 4: You know, we try to keep good relationships with.
1:18:43
Speaker 7: Everybody, because you never know when you're gonna need somebody
1:18:45
Speaker 7: or when somebody's gonna need you. So shout out to
1:18:47
Speaker 7: everybody out there that's been supporting us and continue to
1:18:50
Speaker 7: rock with us.
1:18:51
Speaker 4: We got a lot of things ahead.
1:18:52
Speaker 7: That are going to be a major Stay tuned alert, Yeah,
1:18:55
Speaker 7: stay tuned, learn has now been issues.
1:18:57
Speaker 6: Thank you guys, rocking once for see you next week. Peace.
1:19:02
Speaker 5: My graduates from my school being force back, drop drop.
1:19:09
Speaker 4: Drop draft.
1:19:21
Speaker 1: An illegal alien from Guatemala charged with raping a child
1:19:24
Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
1:19:28
Speaker 1: accused of murdering a Texas man of Venezuelan charged with
1:19:33
Speaker 1: filming and selling child pornography in Michigan. These are just
1:19:37
Speaker 1: some of the heinous migrant criminals caught because of President
1:19:40
Speaker 1: Donald J. Trump's leadership. I'm Christy Noman, the United States
1:19:44
Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
1:19:49
Speaker 1: crossings are at the lowest levels ever recorded, and over
1:19:52
Speaker 1: one hundred thousand illegal aliens have been arrested. If you
1:19:56
Speaker 1: are here illegally, your next you will be fine nearly
1:20:00
Speaker 1: one thousand dollars a day imprisoned and deported. You will
1:20:04
Speaker 1: never return. But if you register using our CBP home
1:20:07
Speaker 1: app and leave now, you could be allowed to return legally.
1:20:11
Speaker 1: Do what's right. Leave now. Under President Trump America's laws,
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Speaker 1: border and families.
1:20:18
Speaker 4: Will be protected.
1:20:19
Speaker 2: Sponsored by the United States Department of Homeland Security,