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The Mortgage Mistake That Could Cost You Everything · Earn Your Leisure

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  Speaker 1: And that's right. Watch market mondays every Monday. You gotta
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  Speaker 1: put Look, guys, if you first of all, if you're
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  Speaker 1: in chat right now, how many of you guys got
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  Speaker 1: ten thousand dollars right now? Type in chat? If you
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  Speaker 1: got ten thousand and fifteen thousand dollars right now, type
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  Speaker 1: and chat? And if that's like all your money right
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  Speaker 1: Not that you folks out here who got green jackets
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  Speaker 1: on you're part of red Panda, right, because you guys
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  Speaker 1: are just killing it out here. But there's a big
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  Speaker 1: market of us of people out here and our followers
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  Speaker 1: who watch the show that got ten to fifteen thousand
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  Speaker 1: dollars and all. Honestly, I don't think you should even
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  Speaker 1: be thinking about home ownership. You can't afford it right now.
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  Speaker 1: You need to really think about how do I flip
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  Speaker 1: this money? How do I turn this ten to fifteen
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  Speaker 1: thousand dollars into thirty thousand and forty thousand, and then
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  Speaker 1: how can I offset that capital gains? You do that
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  Speaker 1: by buying real estate, and you do it smart, right.
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  Speaker 1: You just don't go out here and buy a single family.
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  Speaker 1: You gotta buy a multifamily because that's going to give
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  Speaker 1: you more tax benefits and more tax breaks, and that
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  Speaker 1: can offset that capital gains that you'll get from you know,
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  Speaker 1: investing and taking from your broker's account to put it
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  Speaker 1: into the real estate. Right. So I just feel like
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  Speaker 1: there's a lot of people out there that want to
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  Speaker 1: buy real estate, that want to get into the game,
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  Speaker 1: but that that entry barrier is just too high for them.
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  Speaker 1: So why not Why sit on the money? Why put
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  Speaker 1: it into your savings account or even the high yield
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  Speaker 1: savings for that matter, Right, you know, we want safety. Hey,
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  Speaker 1: I want to get three percent, four percent, and that's great,
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  Speaker 1: but you got to be a little bit more aggressive
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  Speaker 1: scale money. Don't make no money at the end of
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  Speaker 1: the day. And like you said, Magic said, last year
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  Speaker 1: you got three years. We on year two now one
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  Speaker 1: years down, two years going to fair enough, right, and
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  Speaker 1: it's going by fast. So we have to now accelerate that,
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  Speaker 1: take calculated risk and learn the game to you know,
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  Speaker 1: kind of increase our our network so that way you
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  Speaker 1: can really go out here and buy real estate. Try.
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  Speaker 2: I've been looking that the House of Marketing here in
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  Speaker 2: Houston like the last year, and then like in the
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  Speaker 2: last two or three months, a couple of people have
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  Speaker 2: asked me about all in one loan.
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  Speaker 1: Can you walk us through what that is?
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  Speaker 2: And also, can you tell everyone who's hoping for a
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  Speaker 2: housing market crash that one is never going to come.
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  Speaker 1: Bro. I've been saying that for fucking eight years, nine years, bro,
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  Speaker 1: Like everybody. Everybody was killing me in the comments back
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  Speaker 1: in twenty twenty when I was like, yo, go out
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  Speaker 1: here and buy real estate. This is the best time
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  Speaker 1: to buy, and everybody was telling me I was crazy,
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  Speaker 1: the market's going to crash. But they just don't understand,
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  Speaker 1: you know, they don't understand the history of this. Right
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  Speaker 1: right now, there's not enough supply. This is why you
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  Speaker 1: have a new law that just came out to help
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  Speaker 1: increase supply, because there's a housing shortage. So no matter, look,
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  Speaker 1: and I'm not going to take away from you know,
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  Speaker 1: the debt that folks have right now, consumers spending, the
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  Speaker 1: rise in housing, courses of insurance, and property taxes. But ultimately,
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  Speaker 1: there's not enough supply on the market right now. And
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  Speaker 1: at some point, the Feds, even if they raise them
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  Speaker 1: a little bit, that's okay. At some point, these mortgage
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  Speaker 1: rates are going to come down, and there's a lot
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  Speaker 1: of people on the waiting on the sidelines that's going
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  Speaker 1: to get back in the game once those rates start
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  Speaker 1: hitting the fives and the fours again. And we've had
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  Speaker 1: some trickles of fives over the past six to eight
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  Speaker 1: months too, So there's opportunities to get rates in the fives.
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  Speaker 1: You just have to be in position to capitalize on that. Now,
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  Speaker 1: when it comes to this all in one loan, I've
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  Speaker 1: been getting a lot of dms about this lately. A
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  Speaker 1: lot of people been on the internet's kind of talking
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  Speaker 1: about this. So the all in one loan, I'm gonna
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  Speaker 1: try to make this as simple as I possibly can.
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  Speaker 1: It's basically a first lean position helock. He lock is
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  Speaker 1: a home equity line of credit. And what this does
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  Speaker 1: is there's some banks out there that's offering you know,
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  Speaker 1: you open up a checking account with them, and it
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  Speaker 1: combines like your he lock and your checking account, So
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  Speaker 1: you make all your deposits temporarily into your home equity
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  Speaker 1: line of credit to reduce that line of credit balance.
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  Speaker 1: And then as you're getting paid, you deposit into your
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  Speaker 1: helock and you're using a helock to pay your bills. See,
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  Speaker 1: your helock is not like a thirty year mortgage where
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  Speaker 1: it's ampturized over thirty years. A helock is more simple interest.
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  Speaker 1: So as you pay down your balance, your payment goes lower.
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  Speaker 1: So instead of having cash sitting in your checkings and
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  Speaker 1: your savings account, you have that cash sitting in your
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  Speaker 1: helock and you just use that he lock to go
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  Speaker 1: about your daily spending, paying your bills, et cetera, et cetera. Now,
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  Speaker 1: this can reduce total interest that's paid and can definitely
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  Speaker 1: shorten the life of the loan. And it's definitely going
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  Speaker 1: to give you an increase in your cash flow and
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  Speaker 1: your flexibility. But this is best fit for folks who
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  Speaker 1: have money.
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  Speaker 3: Right, explain, is it a helock or it's not a helock.
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  Speaker 1: It's a helock. It's a helock. So when people say
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  Speaker 1: all in one, this is just marketing.
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  Speaker 3: So it's a helock. It's a hey yeas another name
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  Speaker 3: for helock.
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  Speaker 1: It's another name for a helock. It's something that people
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  Speaker 1: are using as more marketing because they're saying, hey, you
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  Speaker 1: get a checking account that comes with it, and you
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  Speaker 1: can use a checking account with the helock. It's a helock, right,
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  Speaker 1: plain and simple. It's a first lane position helock that's
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  Speaker 1: all it is. And the helock for those of you
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  Speaker 1: who don't know, it's homemaker line of credit, like I said,
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  Speaker 1: you have in most cases, you'll have a ten year
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  Speaker 1: draw period. So in that ten year draw period, you
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  Speaker 1: can use it like a credit card. Right, you can
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  Speaker 1: use it paid off, use it paid off, use it paidoff,
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  Speaker 1: and you have that flexibility. And then after ten years
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  Speaker 1: it converts into like a twenty year principal interest mortgage.
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  Speaker 1: These rates are generally higher than what a thirty year
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  Speaker 1: mortgage is going to be. These can range anywhere from
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  Speaker 1: eight to ten eleven percent, just depending on who's the
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  Speaker 1: lender who's given a he lock, and ultimately you're a profile. Right,
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  Speaker 1: but this is again this is this strategy has been
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  Speaker 1: around for decades. Right, First, lean position he locked, use that,
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  Speaker 1: put all your money into the helock, and use that
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  Speaker 1: he locked to pay your bills, and then you'll have
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  Speaker 1: surplus or instead of it sitting in your checking account,
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  Speaker 1: you are paying less interest. And it's essentially you can
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  Speaker 1: technically technically pay you off your mortgage much faster this way.
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  Speaker 1: But again, you have to have surplus of income to
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  Speaker 1: do this. If you are someone who's kind of living
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  Speaker 1: check to check. This is probably not going to work
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  Speaker 1: for you, right. This is going to work for people
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  Speaker 1: who have good income, high income earners, people who got
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  Speaker 1: strong monthly cash flow who don't need to continue to
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  Speaker 1: dip into that he lock every single month to live
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  Speaker 1: their life. Right. Borrowers who keep larger cash balance, is
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  Speaker 1: this is perfect for them. Now, when you go out
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  Speaker 1: here and you purchase a home, this is not like
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  Speaker 1: an FHA loan guys or conventional where you can do
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  Speaker 1: three percent, three and a half percent, five percent. At
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  Speaker 1: a very minimum, you have to put down ten percent,
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  Speaker 1: and some banks that offer this you're going to have
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  Speaker 1: to probably put down more fifteen to twenty percent. So
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  Speaker 1: first things first, you have to have that down payment
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  Speaker 1: to even do this. Second thing is you need to
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  Speaker 1: have a low debt to income ratio because it gets
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  Speaker 1: That is extremely important, and I think that's the part
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  Speaker 1: that people are not speaking about. You can't you can't
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  Speaker 1: really go out here and get a he lock if
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  Speaker 1: you got a fifty five percent debt to income ratio.
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  Speaker 2: Tell them what debt to income ratio is for those
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  Speaker 2: if they knew it or don't.
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  Speaker 1: Know, debt to income ratio is exactly what it says
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  Speaker 1: your debt towards your income and what that ratio is. So,
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  Speaker 1: for example, if you have ten thousand dollars gross of
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  Speaker 1: monthly income and your mortgage payment, plus all your bills
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  Speaker 1: that are on your credit report, like your car loan,
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  Speaker 1: your student loans, your credit card bills, if everything comes
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  Speaker 1: up to fifty five hundred dollars a month, you're out
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  Speaker 1: of fifty five percent DTI or DT or debt to
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  Speaker 1: income ratio. Right, so that could probably good, be good
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  Speaker 1: for faha borrower. But if you're talking about a he lock,
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  Speaker 1: you need to be out of forty two percent or
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  Speaker 1: lower debt to income ratio. And again, remember one important
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  Speaker 1: key that folks when they when I hear people speak
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  Speaker 1: about this and they speak about helocks in general, in
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  Speaker 1: first position, you have to understand the he lock can
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  Speaker 1: be cut off at any given time, botty lender. It's
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  Speaker 1: just like it's how.
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  Speaker 3: Much notice can be cut off. Like if if I
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  Speaker 3: have a he lock nicked, they could just cancel it
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  Speaker 3: even though I already have it.
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  Speaker 1: Absolutely, they can cut your balance. It's the same thing
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  Speaker 1: like a credit card. Right, if they feel like you're
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  Speaker 1: spending is not up there, they'll cut your balances. They'll say, Okay,
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  Speaker 1: you used to spend one hundred thousand dollars a month,
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  Speaker 1: but you now spend twenty, So why am I gonna
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  Speaker 1: keep giving you one hundred thousand dollars when you're not
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  Speaker 1: showing that you're spending this money. So I'm gonna cut
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  Speaker 1: that balance. It's the same thing with a he lock.
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  Speaker 1: If if you live in the decline in market, if
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  Speaker 1: we start seeing these foreclosures continuing to rise, and that
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  Speaker 1: of impacts. Remember real estate is local guys, so and
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  Speaker 1: the banks are monitored this. There's so much technology and
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  Speaker 1: the banks are using all of this and it's all
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  Speaker 1: based off of algorithms too. So if you live in
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  Speaker 1: a zip code that has the it's a decline in
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  Speaker 1: market and you have a helock that's out, guess what's
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  Speaker 1: gonna happen. You're gonna wake up one morning and you're
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  Speaker 1: gonna think you have, you know, fifty thousand available, and
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  Speaker 1: then you're gonna wake up to see that your line
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  Speaker 1: was frozen and there's nothing you can do about that
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  Speaker 1: because they've deserved the right to freeze your line to
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  Speaker 1: protect their interests.