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Does It Still Make Sense to Buy a Home? · Earn Your Leisure

• 0:00
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 0:03
  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
• 0:07
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 0:11
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 0:15
  Speaker 1: some of the heinous migrant criminals caught because of President
• 0:19
  Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States
• 0:23
  Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
• 0:28
  Speaker 1: crossings are at the lowest levels ever recorded, and over
• 0:31
  Speaker 1: one hundred thousand illegal aliens have been arrested. If you
• 0:35
  Speaker 1: are here illegally, your next you will be fined nearly
• 0:39
  Speaker 1: one thousand dollars a day, imprisoned, and deported. You will
• 0:43
  Speaker 1: never return. But if you register using our CBP home
• 0:46
  Speaker 1: app and leave now, you could be allowed to return legally.
• 0:50
  Speaker 1: Do what's right. Leave now. Under President Trump, America's laws,
• 0:55
  Speaker 1: border and families will be protected.
• 0:57
  Speaker 2: Sponsored by the United States Department of Homeland Security.
• 1:00
  Speaker 3: Real estate is something that everybody has been talking about
• 1:04
  Speaker 3: for a long time, and obviously we know that that's
• 1:05
  Speaker 3: something that's extremely important as far as you know, building
• 1:09
  Speaker 3: wealth and you know, bridging the wealth gap, and you know,
• 1:13
  Speaker 3: home equity, and it's a variety. Everybody knows why real
• 1:16
  Speaker 3: estate is good at this point, right, or can be good,
• 1:19
  Speaker 3: but it's some disturbing times that we're living in. Stock
• 1:25
  Speaker 3: market has corrected itself several different times over the last decade.
• 1:28
  Speaker 3: Real estate has never really crashed since two thousand and eight.
• 1:31
  Speaker 3: Real estate prices continue to go up. Right, even when
• 1:36
  Speaker 3: the economy is slowing down, it has no signs of
• 1:39
  Speaker 3: slowing down or at least, you know, fully crashing or
• 1:42
  Speaker 3: pulling back. Even though people are not making as much
• 1:48
  Speaker 3: money year over year. Right, It's not like people are
• 1:50
  Speaker 3: making tremendously more money. Inflation is a huge problem. Inflation
• 1:55
  Speaker 3: has been going crazy, interest rates have been going up,
• 2:00
  Speaker 3: so at a certain point, it becomes hard to justify
• 2:04
  Speaker 3: buying real estate. Right. So I want to get you
• 2:08
  Speaker 3: your take on I have. I have my views on this,
• 2:11
  Speaker 3: but I want to I want to let you start
• 2:13
  Speaker 3: the conversation and then we'll just take it from there.
• 2:17
  Speaker 4: Yeah.
• 2:18
  Speaker 5: First, thanks for having me on the show, guys. I
• 2:19
  Speaker 5: really appreciate it. I really feel as if look, I
• 2:23
  Speaker 5: always say the same thing, don't buy nothing you can't afford, right,
• 2:27
  Speaker 5: And we are in inflation every times right now. It's
• 2:30
  Speaker 5: no denying that the store prices are crazy. Anything you
• 2:35
  Speaker 5: look at buy is high right now. Real estate is
• 2:38
  Speaker 5: one of those things that is going to continue to rise,
• 2:41
  Speaker 5: in my opinion, because of simple supplying demand. There's not
• 2:45
  Speaker 5: enough supply out there for even a little bit of
• 2:49
  Speaker 5: the man that's out there right now, and there is
• 2:51
  Speaker 5: still a lot of demand out there in the market,
• 2:53
  Speaker 5: even with interest rates being at eight percent right now
• 2:56
  Speaker 5: for a thirty year conventional mortgage, and that's what a
• 3:00
  Speaker 5: excellent credit score of seven to sixty. Right So we
• 3:04
  Speaker 5: have this argument, and I saw your posts and the
• 3:05
  Speaker 5: comments is just like I mean, the comments are going crazy,
• 3:09
  Speaker 5: and everybody's going to always have this debate. Well should
• 3:12
  Speaker 5: you buy? Should you rent? Well, you got to do something.
• 3:15
  Speaker 5: If you rent, you pay somebody's mortgage regardless. That's just
• 3:18
  Speaker 5: how I look at it. So if you are going
• 3:20
  Speaker 5: to pay somebody's rent, me personally, I'd rather you pay
• 3:23
  Speaker 5: here or pay somebody's mortgage. I'd rather you pay your
• 3:27
  Speaker 5: own mortgage and own the house. Now, obviously you don't
• 3:30
  Speaker 5: want to buy nothing that you can't afford. But if
• 3:33
  Speaker 5: you can afford it, I still think you should go
• 3:35
  Speaker 5: out there and buy, but just make sure you're really
• 3:37
  Speaker 5: focusing more on the deal. In today's market, not really
• 3:41
  Speaker 5: focused on too much of the interest rate. But you
• 3:43
  Speaker 5: got to focus on the numbers. You got to focus
• 3:45
  Speaker 5: on the deal. You always got to remember real estate
• 3:49
  Speaker 5: is especially a mortgage. You can always refinance a mortgage
• 3:53
  Speaker 5: if you qualify at some point. As very important if
• 3:57
  Speaker 5: you qualify right, because a refinance is not a guarante.
• 4:00
  Speaker 5: Is not something that you could just walk into the
• 4:01
  Speaker 5: bank and say, hey, rates are five percent right now,
• 4:04
  Speaker 5: refinance my mortgage. No, you still have to go through
• 4:06
  Speaker 5: a qualification process, but you always have to keep that
• 4:09
  Speaker 5: in your back pocket. Today's seven eight percent mortgage rate
• 4:12
  Speaker 5: can easily be four or five percent when that market drops. Now,
• 4:16
  Speaker 5: what I would tell everybody who's watching this, and I'll
• 4:18
  Speaker 5: tell you guys this too, What do you think is
• 4:20
  Speaker 5: gonna happen when these rates do drop a year from now,
• 4:23
  Speaker 5: two years from now, where do you think is gonna happen? Prices?
• 4:28
  Speaker 5: Prices is going to go just like this, They're gonna skyrocket.
• 4:32
  Speaker 5: So I think we're in a position right now. And
• 4:36
  Speaker 5: or honesty, if you do not buy something right now
• 4:39
  Speaker 5: while there is less competition in the market with higher
• 4:42
  Speaker 5: interest rates, you could be priced out even worse than
• 4:45
  Speaker 5: you are today in two to three years. So for me,
• 4:48
  Speaker 5: I'm always going to encourage especially black and brown people
• 4:52
  Speaker 5: to go out there and buy real estate because our
• 4:55
  Speaker 5: wealth is trapped in the real estate market.
• 4:58
  Speaker 4: They say, we look like reallyt So I got to
• 5:00
  Speaker 4: ask the question, what do you say to everyone who
• 5:04
  Speaker 4: says you just say that because you're in the real
• 5:06
  Speaker 4: estate industry.
• 5:09
  Speaker 5: Yeah, I get that all the time too, and I
• 5:11
  Speaker 5: love that, right.
• 5:12
  Speaker 4: It's the question to be asked, and.
• 5:14
  Speaker 5: It's a fair question, right because people say I'm biased
• 5:16
  Speaker 5: because I'm trying to make a commission. Well, guess what, guys,
• 5:19
  Speaker 5: I'll make more money if the market does crash, So
• 5:22
  Speaker 5: me telling you go out here and buy now, like
• 5:27
  Speaker 5: either which way, it doesn't hurt. A true professional like myself,
• 5:32
  Speaker 5: someone who's been in this business for twenty plus years
• 5:34
  Speaker 5: that has a book of business, I know how to
• 5:36
  Speaker 5: make money in any of these type of markets. Good market,
• 5:39
  Speaker 5: bad market, left right. My sole purpose of being on
• 5:43
  Speaker 5: the internet is one to provide leads for my mortgage business, obviously,
• 5:47
  Speaker 5: but two to provide information so that way our people
• 5:50
  Speaker 5: don't get screwed over, and a lot of our people
• 5:53
  Speaker 5: over the past twenty thirty years, forty years, fifty years,
• 5:56
  Speaker 5: I've been screwed over in the real estate space because
• 5:58
  Speaker 5: no one has ever taught us how to buy home.
• 6:00
  Speaker 5: So I'm always going to be biased of home ownership
• 6:03
  Speaker 5: because not just because it's something that I do for
• 6:05
  Speaker 5: a living, is because I see the benefits as a
• 6:08
  Speaker 5: homeowner of owning your own home. It's nothing better than.
• 6:11
  Speaker 2: That MG you talked about two thousand and eight, and
• 6:15
  Speaker 2: it's something that you would end the business right you
• 6:18
  Speaker 2: were navigating through that there was a crash. Shotty brought
• 6:21
  Speaker 2: up about that that monthly mortgage payment being fifty two
• 6:25
  Speaker 2: percent higher during that crash at the time that percentage
• 6:28
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• 8:20
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 8:23
  Speaker 1: in Massachusetts. An MS thirteen gang member from El Salvador
• 8:27
  Speaker 1: accused of murdering a Texas. Man of Venezuelan charged with
• 8:32
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 8:36
  Speaker 1: some of the heinous migrant criminals caught because of President
• 8:39
  Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States
• 8:43
  Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
• 8:48
  Speaker 1: crossings are at the lowest levels ever recorded, and over
• 8:51
  Speaker 1: one hundred thousand illegal aliens have been arrested. If you
• 8:55
  Speaker 1: are here illegally, your next you will be fined nearly
• 8:59
  Speaker 1: one thousand dollars a day, imprisoned, and deported. You will
• 9:03
  Speaker 1: never return. But if you register using our CBP home
• 9:06
  Speaker 1: app and leave now, you could be allowed to return legally.
• 9:10
  Speaker 1: Do what's right. Leave now. Under President Trump, America's laws,
• 9:15
  Speaker 1: border and families will be protected.
• 9:18
  Speaker 2: Sponsored by the United States Department of Homeland Security was
• 9:20
  Speaker 2: thirty three percent, So we're about twenty two percent higher
• 9:23
  Speaker 2: than that period of time. Is this will we're headed.
• 9:26
  Speaker 2: There's going to be a correction, there's going to be
• 9:28
  Speaker 2: a crash. Obviously you said you're gonna make money either way.
• 9:30
  Speaker 2: But I'm looking at from the standpoint of the person
• 9:32
  Speaker 2: that was saying, yes, you should buy a home. As
• 9:35
  Speaker 2: interest rates go higher, it becomes much harder to put
• 9:38
  Speaker 2: down this twenty percent down payment. So it's kind of
• 9:42
  Speaker 2: a dilemma, right the interest rates are going up, I
• 9:45
  Speaker 2: can't afford to it, so I might have to rent,
• 9:47
  Speaker 2: but there might be a price point where I'm getting
• 9:50
  Speaker 2: priced out in the event that there is a crash.
• 9:53
  Speaker 2: There's a dilemma here that I'm not sure people are
• 9:55
  Speaker 2: going to figure out how to navigate through.
• 9:57
  Speaker 5: So I'm glad you brought out two thousand and eight
• 9:59
  Speaker 5: and a lot of people like to bring that up
• 10:01
  Speaker 5: right and try to compare statistics from that era to today.
• 10:04
  Speaker 5: But you also can't forget that the mortgage industry was
• 10:08
  Speaker 5: completely different than what it was today, Right, People, if
• 10:11
  Speaker 5: you had a post back then, you can get a mortgage.
• 10:14
  Speaker 5: Now you're getting fully underwritten, So it's a different synopsis
• 10:18
  Speaker 5: right then. Also, you got to look at look at
• 10:20
  Speaker 5: the inventory from two thousand and seven, two thousand and eight,
• 10:24
  Speaker 5: two thousand and nine. At any given one of those years,
• 10:27
  Speaker 5: you had over ten eleven months of supply on the market.
• 10:30
  Speaker 5: You had two to four million foreclosures happening every single year.
• 10:35
  Speaker 4: Right. We don't have.
• 10:36
  Speaker 5: Those type of situations in today's market, So the underlying
• 10:40
  Speaker 5: factors are completely different. If you're looking at two thousand
• 10:43
  Speaker 5: and eight thousand market compared to twenty twenty three housing market,
• 10:48
  Speaker 5: it's completely different. Now when you talk about income people
• 10:53
  Speaker 5: being in like the inflation times, yeah, this is a
• 10:55
  Speaker 5: completely different story, right. I don't think we've ever been
• 10:58
  Speaker 5: through this at this level country where prices have rolls
• 11:01
  Speaker 5: this fast, just for everything that you're looking to buy,
• 11:04
  Speaker 5: no matter what it is.
• 11:05
  Speaker 4: Right.
• 11:05
  Speaker 5: So I guess only Tom would tell what's really going
• 11:09
  Speaker 5: to happen once that really starts kicking in and really
• 11:12
  Speaker 5: kind of hurting people more than what is hurting them now.
• 11:15
  Speaker 5: But I think me personally, we're not going to see
• 11:18
  Speaker 5: a huge flux of inventory hit the market because most
• 11:23
  Speaker 5: of the mortgages right now, I think seventy percent of
• 11:25
  Speaker 5: all mortgages are below four percent interest rate. Those folks
• 11:29
  Speaker 5: are not Russian to sell their sell I know.
• 11:33
  Speaker 2: I was gonna say, is that the silver lining and
• 11:35
  Speaker 2: all this? Right, I was looking at the statistic. It's
• 11:36
  Speaker 2: eighty percent of the stand and US mortgage that is
• 11:40
  Speaker 2: under five percent, under five percent.
• 11:42
  Speaker 4: Yeah, that means that you have a.
• 11:44
  Speaker 2: Large population of people that have a pretty good mortgage
• 11:47
  Speaker 2: rate and they just are going to sit there and
• 11:49
  Speaker 2: not do anything. Yeah.
• 11:51
  Speaker 5: But also look at this too, you have fifty percent
• 11:53
  Speaker 5: I think it's like fifty percent of all mortgages have
• 11:57
  Speaker 5: at least fifty percent of equity in the property too, right,
• 12:00
  Speaker 5: So now you have low rates top with most of Americans,
• 12:05
  Speaker 5: majority of them have fifty forty thirty percent equity in
• 12:08
  Speaker 5: their homes. And home prices are still going up this
• 12:11
  Speaker 5: year two to four to five percent, just depending on
• 12:14
  Speaker 5: what the market is. No, we're not going to see
• 12:16
  Speaker 5: twenty twenty five percent appreciation year of a year like
• 12:19
  Speaker 5: we've seen during the pandemic years. But appreciation is still appreciation, yallars,
• 12:23
  Speaker 5: So you have these underlying factors that we didn't have
• 12:27
  Speaker 5: in two.
• 12:27
  Speaker 2: Thousand and eight.
• 12:28
  Speaker 5: Folks, didn't have, you know, all of this equity in
• 12:31
  Speaker 5: their homes back in those days. And then again, the
• 12:34
  Speaker 5: most important factor is the qualification of yesterday's borrow compared
• 12:39
  Speaker 5: to today's borrow. Today's borrow is being vetted and being
• 12:43
  Speaker 5: underwright and more thoroughly. There's more rules, there's more regulations
• 12:46
  Speaker 5: to protect the homeowners. There's more modification programs that are
• 12:50
  Speaker 5: out there in today's market that wasn't even an existence
• 12:55
  Speaker 5: until the market crash, and these programs had to be
• 12:58
  Speaker 5: created to say people from losing their homes. Everybody got
• 13:02
  Speaker 5: to realize the banks are not in the real estate business.
• 13:04
  Speaker 5: They're in the lending business. They don't want to own
• 13:07
  Speaker 5: your home, so they're gonna do whatever.
• 13:11
  Speaker 4: We have an honest conversation, Yeah, let's be causing a
• 13:15
  Speaker 4: lot of disinflation and pricing us out of the market. Like,
• 13:19
  Speaker 4: here's an amazing concept. Let me ruin a housing market
• 13:23
  Speaker 4: from two thousand and two to two thousand and six
• 13:26
  Speaker 4: with all the ninja loans. The White House has to
• 13:29
  Speaker 4: call me and to fix it. And then all of
• 13:31
  Speaker 4: a sudden, I change all of the modifications, so now
• 13:34
  Speaker 4: I have a better book of buyers. When I say
• 13:37
  Speaker 4: that I want to be the biggest landlord in the world.
• 13:40
  Speaker 4: I can make sure that those loans are favorable as
• 13:42
  Speaker 4: I'm pricing everybody out.
• 13:45
  Speaker 5: Yeah, I mean, look at all the institutional investors. They're
• 13:48
  Speaker 5: all killing this market right now. Look at you know,
• 13:51
  Speaker 5: all how they buying property site unseen right. Look at
• 13:55
  Speaker 5: the Zillos of the world, and all these different corporations
• 13:58
  Speaker 5: that will buying all these singles families. Over the past
• 14:01
  Speaker 5: couple of years, even before it started really getting a
• 14:03
  Speaker 5: lot of news play, if you look at even seventeen
• 14:06
  Speaker 5: eighteen nineteen, the institutional investors have been buying up real
• 14:10
  Speaker 5: estate for a very long time, driving up prices. It's
• 14:13
  Speaker 5: just now when the rates dropped everybody started really getting in.
• 14:17
  Speaker 5: The pandemic obviously helped everybody's attention. You ain't got nothing
• 14:20
  Speaker 5: to do, you home, right, you're paying attention now. But
• 14:23
  Speaker 5: this is not nothing new. And like we all know this,
• 14:26
  Speaker 5: institutional investors are always going to continue to invest. Their
• 14:28
  Speaker 5: job is to make money, period, point blank. And the
• 14:30
  Speaker 5: housing market is up for grabs, so they're going to
• 14:33
  Speaker 5: continue to invest. And this is why for me, I
• 14:36
  Speaker 5: don't really see a crash happening. I don't really see.
• 14:40
  Speaker 5: I see a correction still going to happen, right, definite,
• 14:44
  Speaker 5: and every what goes up has to come down at
• 14:47
  Speaker 5: some point.
• 14:48
  Speaker 4: Right.
• 14:48
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 14:52
  Speaker 1: in Massachusetts. An MS thirteen gang member from El Salvador
• 14:56
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 15:00
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 15:04
  Speaker 1: some of the heinous migrant criminals caught because of President
• 15:08
  Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States
• 15:11
  Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
• 15:16
  Speaker 1: crossings are at the lowest levels ever recorded, and over
• 15:20
  Speaker 1: one hundred thousand illegal aliens have been arrested. If you
• 15:23
  Speaker 1: are here illegally, your next you will be fine nearly
• 15:27
  Speaker 1: one thousand dollars a day, imprisoned and deported, you will
• 15:31
  Speaker 1: never return. But if you register using our CBP home
• 15:35
  Speaker 1: app and leave now, you could be allowed to return legally.
• 15:39
  Speaker 1: Do what's right, leave now. Under President Trump, America's laws,
• 15:43
  Speaker 1: border and families will be protected.
• 15:46
  Speaker 2: Sponsored by the United States Department of Homeland Security,