RANTS & GEMS 3: What you need to know as a homebuyer in 2021

yeah man welcome to the ranting gyms podcast my name is matt garland nmls number five eight seven zero zero better known as mg the mortgage guy and hi you guys my name is kiana watson license number three one seven five seven six welcome to the ransom gems show i am a realtor and broker owner here in the metro atlanta broker extraordinaire broker extraordinaire there okay i'll take it all right so look man we got it's a little different now it's a little different it's a little different comfortable we're a little comfortable now in that little the desk and everything with the the big mics in front of us it's gone it just wasn't wasn't working so but some things didn't change gotta have a some right one we got it salute to ransom let's do now first things first i want to thank everybody for supporting ranting gems um our first two episodes have been going bonkers on itunes charts we peaked at number 31 on itunes out of 10 000 business podcasts all in only our first two episodes so that is amazing yes that's so amazing we appreciate you guys we want to make sure we're bringing you value information information is not googleable so that way you can real google google is not googleable so that way you can really dig deep into just all things real estate all things building generational wealth because we all deserve it yeah and look how we build generational wealth is what education is with information that's something that's been hasn't been in our communities for forever so how you get our information out there is you have to listen on audio you have to rate it five stars you have to subscribe you have to leave a review and most importantly you have to listen to the damn podcast on audio you have to listen i don't care if you let it play for 15 minutes while the sound is down listen because the algorithms don't know that right so you gotta you have to make sure you're listening on audio so that way the algorithms can push it to more people and we get this information out there to the world but even past that it's valuable information you know we're making sure we're doing market research just call us news reporters at this point that's a fact that's a fact we don't we want to make sure we're giving you some valuable information and share it you know when there's a there's something good i am the queen of sharing podcasts with all my friends they know it like i'm like listen to this listen to that and instead of listening to music in the morning i listen to a podcast it's going to educate me i do that then i also listen to a podcast that's going to fulfill me give me some type of motivation some affirmations then i go about my day so if you get used to that in your free time turn down the music turn up the volume on something that's going to feed you spiritually and then feed you educationally you're going to win i 1000 agree with that so look let's get started oh hold on parental discretion is advised i do have a potty mouth and if y'all hear the chuckles in the background we got our first live audience it's a live audience so it's a little different here now it's a whole damn show first hold on before we even go further let's give a big big big big shout out to the plug atl the plug is the plug the plug is the plug they are the plug and i'm gonna tell you i found it i just want to get my credit i found it but i can tell you they have been taking care of us i have never in my wildest dreams would have thought they could bring our vision together they brought our vision to life and we just gave them a smidgen of a blueprint so shout out to the blue to the plug y'all y'all really plug is the blueprint yeah man phenomenal job so if you guys want to whoever's listening to this if you're an atl if you want to come to atl if you want to film any content make sure you hit up the plug atl yeah because they the plug you can do a podcast you can film content on the damn show you can do all the shows so i see you guys it's real sexy i'm telling you this is like a vibe all right so enough of that let's get into today's topic all right what are we talking about today kiana today we are talking about what you need to know as a home buyer in 2021 okay so you know our last episode was about retail home buyers versus investors yes of course the comments and the dms have been kind of uh y'all didn't like it y'all didn't like y'all didn't want to hear yeah y'all didn't want to hear that i'm like y'all like what happened it's like okay then well yeah it was a lot of um some controversy it was definitely some controversy i saw some people looking at my numbers i'm like oh i sell sale oh yeah they don't want this smoke they do not want their smoke but i sell with i sell many different price points so i understand what's going on out here so it's different i wish i would have met y'all five years ago everybody would have had a house you know you you you it's like it's like that oprah mean right you get a house you get a house but this ain't those times different times and we want to make sure you're prepared to purchase a home in these trying a different time absolutely so this episode is going to be dedicated to that home buyer right it doesn't matter if you're a first time home buyer maybe you purchased a home five years ago you re-entering the market this is going to get you prepared for 2021 2022 what to expect how to prepare how to put in strategic offers the whole nine yards so if you're listening to this watching this get your pen and pad take some notes because it's gonna be a lot of information all right all right so how are we going to start this off you want to start this with the pre-approval process let's talk about the pre-approval process all right so look pre-approval process first and foremost get yourself organized right the biggest thing that i see people have a problem with is organization they don't know where their documents are right so it's so simple you have so much technology on your phone nowadays you can have a google drive a dropbox hell iphone got the files thing you can put and everything is online right now so it's so easy to always to create your lynda file to is you know upload your w-2s last two year w-2s 30 days of pay stubs 2 months of bank statements all pages now a lot of bank statements will say page six or seven sometimes the last page is left blank you still have to send that page to your lender okay because if an underwriter sees that it's blank they're gonna request for that blank page all right um if you need copy of your id id and all all monies that you have i have so many people that they want to share a little bit at a time listen the lender is not going to take all your money but the more money you have saved the more attractive you look absolutely you got five different bank accounts and you got a 401k and you have money somewhere present that so you have a stronger file they're not telling you that you have to spend all of it but let's not piece together your credit worthiness and also that's not piece together your your financial worthiness of purchasing a home so make sure you have all of your documents all of the money that you have available to you present that the first time so you don't have to double back yeah let's keep on the money right if you have mattress money right the money mattress money shoebox money let that money sit in your bank account for at least 60 days don't get into contract and then go deposit your mattress money or your cash into your bank account because then the lender can't source that large deposit so the lender will not be able to use that money when you go out there you put in your earnest money deposit don't take it from your shoe box don't get it from your cousin don't do any of that everything has to be sourced and documented all right so make sure that is very important because i see that happen all the time people put down down payment checks or earnest money and then at the end of the day linda says okay where did the money come from and you can't prove it and that just now you got to redo contracts get more money it just becomes a nightmare paperwork nightmare so please please please please if you have mattress money please just deposit it 60 days before you want to get pre-approved absolutely yeah i couldn't i couldn't agree more yeah and make sure you're organized organization is key dropbox google files very simple very easy then once you do that right now it's time to go find your bank who are you going to use right now can you can we talk about it and i want you guys to make sure you're very clear what is the difference between and i want you to touch on this because i know the difference between a loan officer and a broker what is the difference why would someone go to a regular loan officer a mortgage banker and why would someone want to work with a broker and let's just touch a little bit on the fee so real quick there's three people that can originate loans in today's world right you have big bank loan officers you have mortgage companies right like me i work for a mortgage company which i'm a bank but i'm not like a big bank right like uh we know the bank banks are they collect your your check-ins in your savings account then you have mortgage companies all we do is specialize in mortgages and then you have mortgage brokers right but mortgage brokers the difference is they don't have money to lend they are a middleman so they're going to shop around between the lenders that they are approved with see most people have the big misconception about mortgage brokers i'm not shaming mortgage brokers i love mortgage brokers but this is just for informational purposes people think that a mortgage broker is going to have access to 100 banks and that's not true not all mortgage brokers are built alike some mortgage brokers might not do the volume that certain lenders will require to be on board with them right that's very key right volume solves a problem in my business so if you're working with a broker and if they're not a top tier broker that's doing a lot of volume they may not have the best interest rates all right but the main difference is you have the big banks that has a check in the savings i like to call those the order takers no disrespect right because they have their guidelines and they're just limited to those guidelines you have the mortgage companies that's more diverse they're kind of like a hybrid between a mortgage bank and a mortgage broker and then you have the mortgage broker so how do you hire or choose the right one to work with i tell people all the time stop looking at the bank you do your checking business with because it's two separate things you have to build a relationship relationship is everything so just because this person works for that bank doesn't mean they're going to have your goals in mind so you have to make sure you're interviewing everyone acting on questions that you know the answers to already based off of your research and then when they're answering you're going to tell if they know what they're talking about or not right if they're not asking you guys what's your real estate goals that should be of red flag from very beginning because if you walk into a bank you say yo i'm going to get pre-approved think i'm like okay let me get pre-approve you but if they don't actually your goals that first deal can hurt the rest of the deals that you're trying to do so it's all on who's going to be strategic to to line you up and give you the blueprint to build your real estate portfolio so that's what you need to choose who you're going to work with and then who can close a deal because it's all about closing baby that's the one ctc that's all we care about you know that's the one and not the two and i think that so many people get confused i work with bankers i work with brokers i work within the middle and i can tell you and i've had this experience where i was like you know what i know who this broker is going through so i'm just going to go past this broker because everybody got got to get paid brokers charge a fee but it also what matters is how someone packages you yeah see that's what the brokers do that's what a loan officer is there to do they're there to ask you for all this documentation make sure you take your time and fill out that application because what you put on that application they're going to match that to what the documents that you've sent and if there's any type of funny business if there's anything that looks like it different differentiates they start asking a lot more questions and then you go you start going down the rabbit hole you're trying to figure out why a person can't get out of underwriting they probably rush through the application threw anything on there then their documents didn't support the application so i tried this myself and lo and behold my client could not get approved directly going to the directly going to the bank couldn't get approved went back to the mortgage broker she packaged the file closed in two weeks yeah so close mortgage brokers are not bad mortgage bankers are not bad the big bank loan office is not bad everybody has a purpose right for me if you're gonna work with a big bank it's more luxury if you're buying a million dollars two million dollars and you have the documentation they're going to probably give you the best deal hands down because they have that portfolio because they have large checking and savings accounts on on on their um their assets right so they'll give you a better deal than a mortgage guy like myself or a mortgage broker but now if you're really dealing with everyday deals single families townhomes new construction multi-families that's when i think you need to choose between a mortgage company and or a mortgage broker right because those folks are going to know how to get those deals done in a timely manner i agree so choose wisely right interview that's most important because that person he or she should be there for deal one two three four if that is your goal is to build a real estate portfolio so once you hire now this loan officer whether they work for a broker bank mortgage company pick your poison right then it's now time to submit your documentation into that lender and you know get pre-approved now there's a lot of changes that's happening july 1st and i haven't even spoke about this on any of my platforms yet so y'all getting kind of and that's less than 30 days so make sure y'all pay attention to that yeah so by time this drops two weeks right so most people and we've had this conversation uh they don't like fha they think fha is hard to get deals done and most sellers don't like fha but what they don't realize is conventional is much harder to get approved than an fha loan and what's happening july 1st fannie mae and freddie mac are making a lot of changes to qualify mortgages where they're not they're not going to just look at your debt to income ratios no more they're looking at your whole profile when it's ran through the automated systems and this is going in in two weeks so now a typical buyer like so a minimum credit score for conventional is 620 right so you can do up to 97 financing or 3 down with a conventional mortgage but if you now as a july 1st if you got that 620 630 credit score you got 3 5 down and your credit profile is not that good you're not going to get approved for conventional loan more than likely right the f the automated systems are going to kick it back because the entire profile is not strong and it presents a risk so now it's going to be more risk assessment when it comes to death it's called du desktop underwriting every lender in america who's originating loans and is selling it to the government is using desktop underwriting or loan prospecting which freddie mac uses so this has already been happening probably over the last five or six months in my world where deals you would think is a slam dunk you know everything on paper meets the guidelines debt-to-income ratio credit the down payment and you can't get an automated approval it's like what the hell is going on it's just the government with fannie and freddie are getting tighter and tighter and tighter and tighter so conventional loans are going to get much tougher come july 1st 2021. so if you're trying to go conventional it's even more important now that you have your together basically you're going to have to have your together you can't come in there saying i just got uh down payment and you ain't got no closing costs you ain't got no reserves your entire profile now is going to be reviewed in a way that hasn't been reviewed before so i just want everybody to know that to prepare because it's not going to be as easy as folks thinks it is to get a conventional mortgage but you know what and i and i'm coming from the realtor side the the thing is the sellers they know it's easier to get an fha loan that's what scares them that's what scares them the most and let's be honest that's what scares them the most because it's easier to get an fha loan they don't go through through so much and next thing you know you think you're closing tomorrow and this has happened to many sellers so you know i always got to be mindful we talked to so many buyers we never look at it from the perspective of a seller they moved everything out of their house all of a sudden we got a two-week delay all of a sudden now the house don't close you know what i mean those things do happen in real estate consistently deals fall apart all the time what's this month this is june and so it's june i literally had one deal slipped through my fingers but i had five that almost died like for real every i mean i'm talking like the day before closing things are happening and so what i want you to do is prepare yourself to get prepared for conventional or fha financing whichever one that you choose but when you're in a certain price point understand the guidelines for your state and it's easy to look up you can go to look up fha loan limits for your state and understand that it limits you on the amount of home that you can purchase when you're using fha financing with the average price point going up it's going to be a little more difficult to find that home that you want in a certain price point if you're going to stick to fha and unfortunately in this space we're in you know like i said we're talking across all 50 states the we we posted the mats on map on the ransom gems on page everybody's experiencing the shortage in inventory so as a first time buyer how you how do you want to be more attractive right so first you already got your pre-approval let's say matt got you all the way together you're pre-approved now it's time for you to get out here and start home shopping what can you do why is it that you're losing an offer number one your agent needs to package you correctly when i on the listing side i get so many offers that are just who wrote this so how do we so give us an example what are you talking about so give us an example so this is an example when someone is writing your offer it's like okay why are you asking if i tell you listen we got six other offers why in the world would your agent write as a special stipulation that my seller needs to give you a home warranty it's 350 dollars get your own warranty because anytime you're asking the seller for something when we already have multiple offers check off the list so let's get rid of all these special stipulations that really protect more of the buyer in when you're in a multiple offer situation and then i want to know what's going on does your lender pick up the phone let me tell you i copy my lender on my oh my offers my lender's cc you better pick up my lender look my lender is available my lender's here when your offer is getting sent over and i'm let's talk on the listing side right so let's just say your agent sends me over a offer they send it directly through the system and all i do is open up a link and here comes all of the offer no explanation who they are what they do how they're going to do it then i got this offer come my way hey kiana how are you this afternoon how is everything going here i've copied my lender my my client has this much money saved here is a copy of their bank statement so you can see that they have the money on reserve on top of that the lender cc down here and we have a track record of closing on time and this is our offer below just to list some details that's the one i'm going to look at not the person that just sends me a link and a lot of agents are doing that now it is a disservice to your clients because you're not really positioning yourselves and yeah we're all busy nobody likes to pick up the phone but the courtesy text goes a long way i had 15 no 20 offers on my last listing and only four agents how long was that list in line for four days four days 20 20 offers four agents actually sent me a text message or our message hey kiana i sent you an offer i had six of them was just links i'm searching through my email because georgia real estate commission says we have to present all offers no matter how they're sent and i present all offers and i have a system to do so but i gotta search for it so i'm digging and digging and digging meanwhile our seller is just trying to make a decision so package your people correctly and unfortunately closing costs it depends on the property but wait hold on before you go to closing costs how do we hire the right realtor and how do we know that we have the right will realtor ask the right question so this is there's a few questions that you guys want to start asking um what is your track record of sales what is your track record like how what is your track record of sales and show those receipts that's what were your receipts and then also ask them so what are your special stipulations or what are some what are some savvy um special stipulations you've been able to use to win offers in multiple offer situations ask what are they going to do for you because we always try to make buyers see our our services are free where our services are not free the seller is paying for it but essentially you as the buyer you're choosing someone to represent your best interest and you're putting them in a position to make a commission whether you're paying it or not so you need to make sure that they're representing your best interest fully and ask them outside of that how can you ensure that when we're out here shopping are they providing you any market data they're like you know we run comparable marketing analysis for sellers right as a buyer you should also be receiving that information you should also know the appreciation values in the area you should also understand what has happened your year over year in your area how can you make an informed decision if you don't know what's going on yeah we know the prices is up and they stuck right up in stock that is my thing they we know the prices are up and stuck but at the same time make an educated decision i don't have i'm not just throwing darts on the board and telling my clients to write an offer this is what i'm presenting this is our market stats this is the market data this is what the appreciation values are this is what the three last souls did in the area this is the sales contribution to the last three souls in the area so this is why i'm recommending this offer based on this data if someone is not giving you that then oh yeah we're all busy but you yeah you're spending way too much money right now i just bought a house i spent way too much money so at the end of the day if you want to buy in this market you're going to spend a lot homes are on average selling above asking price so we know that they said 53 of homes are selling above asking price so what happens on the other side the other the other 48 their condo condos and certain properties they're not moving as fast but those single-family homes yeah everybody want them single families and everything i know that don't just you know yeah you may have to pay a little bit above asking yeah you may have to pay a little bit extra in the appraisal but make sure you make an informed decision because what you don't want to happen is you pay for a property in an area that has no appreciation values they're your agent just telling you to throw something out there because they're trying to hurt and get you under contract so what about how do we make sure that the agent is working in our best interest and not the seller's best interest see you're there they sign an exclusive agreement to represent your best interest so if they're a realtor they're held to a code of ethics so if you're looking for someone that's that's a realtor we can't represent the seller's best interest in the buyers best interest we have to choose so even if we're doing dual agency and we're doing things like that there's dual agency dual agency is when you can represent both buyer and seller and in the state of georgia you can but as a buyer when they send you that exclusive agreement and they check that they can do that you can say well can you uncheck that box i've had three people rebut me on that like kiana i love you but if you are representing the seller you can't represent me at the same time so i'll put a special stipulation in there like fine i can't but you must work with someone within my agency okay if you if if that were to happen sometimes you don't want it for the relatives so you know let them know well okay well that's fine you don't have to work with me but i have two people to recommend or on my team or you know just try to still keep it in-house but people aren't comfortable with that but in our state now this is a state specific so to make sure they're representing your best interest they got to provide you with the data where's the information yeah you know where where is the information where are they giving you the information but a lot of agents don't know how to get this information so to do this i'm sorry for that man yeah i mean i'm sorry for that woman yeah a lot of them don't right because everybody's trying to rush right everybody's trying to rush everybody's trying to rush everybody's trying to rush so how does the buyer right how do they get this information on their own it should be tangible but you also if you can't as a buyer if you you can at least just use google say you know what's the average price point in my area you can go to the georgia for if you're in our state look up um gnar national association of realtors if you go to nar and forever whatever state you're in you can look up stats for your state on the national association of realtors i hope y'all wrote that down so make sure you look that up at the very least and there's just certain information that you're not going to find on zillow and unfortunately you have to rely on an agent to do so so that's why you're going to ask them to provide you with that data like the consumer on zillow is going to say the house was listed for 350 it sold for 375 and closed in five days but we're going to see it was listed for 350 but at the same time the price was increased to this amount it sold for 375 the seller contributed 7 500 to the closing cost and the buyer was conventional or cash or fha we know all of that so we know we know more than the average consumer so you still want to rely on your agent so ask them questions and you know again don't don't just go with what you think looks good talk to three agents and it's okay because you shouldn't rush to buy a house let me tell you there's a lot of things you can rush to do but a house is not one of them do your due diligence interview and see who's going to fit your communication style because it's a communication style who you feel like is representing your best interest look up their reviews you know i would tell people google me baby i got reviews but on top of that you need to know the data that's how you make an informed decision well i mean it's the same thing when you're trying to hire a loan officer right you can look at the reviews i got reviews too i don't promote them but i got tons of them right you know they google me too it's the receipts yeah they call my phone they google me but um they looking at the wrong damn thing they're looking for my phone number instead of the reviews but um yeah so you got to look at the reviews ask for references you know what i'm saying like when i when i try to hire somebody i'm always asking for references like who did you work with recently that i can speak to them about how you operate yeah and any professional should be able to say oh these are my last especially if you're in real estate and mortgages in this market if i can't pull out 50 people right now that you can't get a review from or reference from then i'm not doing business there's something wrong and that might not be the person that you want to hire a part of your team so it goes both ways for realtors and for loan officers as well now let's kind of fast forward a little bit right now how do we win these offers because you were talking about you know people just sending links in your email they they're putting together terrible offers right like what are some tips that we can make sure that these home buyers for 2021 they know what's being included when they submit an offer because most of the time like oh man i just need to pre-approval i need a pre-approval on it they don't know anything else that's happening well i think for for starters you want to have something that represent who you are so you can't we do the fair housing as long as we're not talking about your sex your creed all those things we can talk gender we can talk about who you are as a person so if let's say for example hey i've worked for this xb xyz company for 30 years you know this is my second home purchase i'm informed about the process i also have forty thousand dollars saved i've evaluated the property i'm ready to move forward those are the types of things that we want to look for because sometimes buyers are not completely prepared i've had a lender send me a pre-approval before and you're not to me in this market you're not approved if you can't cover your down payment and your closing costs and you need a little bit of an extra buffer on top of that you're not truly approved because the sellers are not paying closing costs that is a fact the last time i ran a report i would say on average the sellers was paying one percent of close like one percent that's right and that's low so and you can the rules say it's not the rules the rules say six percent fha yeah three percent conventional conventional but that's the forget the rules what's happening in real life 14 offers right so let me give you the simplest terms i have an apple for sale you want my apple but i got to give you five dollars to buy my apple you want my apple and i said my my apple's only ten dollars you're like well i'm gonna give you 15. you told me you're going to give me 11 but you need me to give you five dollars let's do that math i'm going over there yeah because she she wants my apple apple clean and clear i ain't got to give her nothing to get anything girl yeah you can have this over inflated apple enjoy right and so as buyers i want you guys to look at it like that because as your agents i get so many people thinking we get paid extra so if you if you're paying a twenty thousand dollar difference that twenty thousand is not coming to us yeah the percentage that we're going to make is still the same percentage and if you take that we can't talk about it legally but if you take whatever that percentage is uh and multiply it across that it's not enough yeah it's not for us it's really for us to make you competitive and most people think they're going to make a lot of money the realtors are making a lot of money if you go above extra 20 30 50 000. you're not really if you do the math right it's not a lot it could it possibly it's possibly a hundred dollars extra towards the commission it's not a lot because we get paid on the entire cost of the home so be mindful that if you look at the numbers see i'm all about data i'm a numbers person so if if i provide you with the numbers we look at the data you see it black and white you tell me what you want to do this is my recommendation let's go you see this category that says cc contribution to closing zero for the last three sales so there's zero for the last three sales do you think you're going to get ten thousand let's be realistic here no you're not we you this market is not about our sales skills as much as it is about positioning you to win exactly but you need to have your money right closing costs for those you don't know is typically five percent of the sales price easy numbers 100k sales price times five percent five thousand dollars is your closing cost most people think it's just down payment right i can't tell you i got three and a half percent i got three and a half no you ain't got enough money right you you no you're not pre-approved you need money right now you can get a gift right gifts are allowed you can get it from a family member there's different rules that apply for fha and conventional typically if you're getting from a family member no matter what loan you're getting you can get a gift right you can take it from your 401k um you can get grants uh you can get sales concessions as we spoke about but you generally in this market want to have your five percent of closing costs you need to have your five percent of closing plus your down payment plus your down payment plus a couple thousand more well you don't want to be house rich and cash poor at the end of the day right you get into a house and i just bought a house and as soon as i closed the next day my property manager did the welcome letter and came back and said well this person said their whole household got roaches and bugs oh no that's my god that's why you need the data though see that's what i tell people and then you also let's act our wage can we please do that can we please all of us at our wage let me tell you baby i'll be on instagram sometimes i'll be like i almost threw my phone the other day and i ain't even like that i'm like what is this where is all this money i love following these agents in miami and i'm like wait a minute all they do is go to the beach 20 million dollar houses i'm like what is happening here but i also understand let me act my wage and go into my own humble home and live my own life and i think what happens is you think that first home is supposed to be everything you want to mark off all the boxes yeah and honestly that first home is just the home to get you started you know when i purchased my first property i oh man i did not want that house i did not want the house but i bought it didn't want it didn't mark off yeah you need a place to live it wasn't the location i wanted to be it wasn't nothing everything i could think of i didn't like by the time i got married and turned into a cash flow i was cashflowing that property it was doing well so the hoa came up we had to talk about that another time and said i could no longer lease the property it was like okay it's time to go because i can't hold on to i can't lease it it's a gated community too it was in my they was on me so i sold it but by the time i cash loaded and by the time i sold the property i ended up making over it was like a six year period so look at the cash flow from it from the time i stayed in it for only a year and a half but when i sold it i made about a hundred thousand so at the end of the day it's still a good investment rather you hold on to it or not but it was that first house that kind of taught me like wait a minute there's more i can do out here so you don't have to love it just like it like it enough it's better than the alternative right i like it enough most people who are buying their first home in all honesty wherever you buy is probably going to be better than where you are right now because you're looking to move correct right so you don't need the mansion you don't need the playboy mansion in the first crib no you just need to take your time make sacrifices it's a sacrifice i can tell you i have a closing tom like coming up tomorrow i'm so excited let's say my client is the ish i remember she worked for tsa she worked for tsa four years ago we had we did fha financing i got her i had to end up i remember like it was just i had to end up cutting a piece of my commission just to get her in the house it was just that crazy she'll tell her own story she don't mind now after that she was like i'm gonna learn how to wholesale so i pointed her in a direction to teach her how to wholesale and then she's just been like the number one hustler of the year now this girl then created her own online platform she has a mobile notary she has been teaching people how to wholesale and now she's selling her property she's about to make six figures only four years from now and guess what she's going to turn around and do she's buying an event space she's about to pimp it out and she was like yeah i'm renting an apartment for a year i'm buying event space i'm turning this event i'm gonna get this event space and turn it into a cash flow you understand but she would have never even peaked that idea had she not purchased that first house she didn't love it she liked it she liked the area now here it is the house she just lived in she had these dreams and she's about to see them come true and that came because she saw what's possible and so she's not blowing her her check that's why i always try to talk to buyers these sellers have dreams too she's not blowing that check she already i got the lease agreement for the place already in my inbox she's like review this for me i'm like girl we can talk about it tomorrow we close but i'm proud of her because it opened her eyes up to more i think real estate to me is not just about buying the house it's just open your eye opening you up to more how to build generational wealth and seeing who is on the end of that wealth gap and then positioning yourself to take advantage of it yeah 100 your first house will set you up for your 10th house if you do the first house right and that's why i said in the very beginning this episode you have to choose the right team members you know home buyers going into third and fourth quarter going into 2022 focus on building your credit building your capital capital is very important right now you better go trade some options go drive an uber do whatever the hell you got to do to make money there's too many ways out here to get a bag right now and there's no damn excuse so when people tell me i have no money like you're not working hard enough right period there's no reason why no one in this world right now in this day and age coming off pandemics you should not have you know enough money to save and figure it out and don't think that someone is special because they have money saved they just made the right sacrifices people are moving in um they're moving in with each other to save money to to plan to prepare to purchase a home you just have to make the right sacrifice so you're setting yourself up and also understand appreciation values understand cash flow understand average rents of your area get all that information from your agent so that way like okay i bought this whole first house this is my plan and then when you execute your plan you already have some data some market research information to take with you because the agents have access to it they just they need to provide it no 100 so all right so now we know closing costs we know how much closing cost is we know you ain't getting no sales concession but you know closed mouth don't get fed axe but understand that you could be i'm only asking verbally let me tell you something you're not putting it in right hey sir watson you know i'ma try but if the close mouth don't get fat yeah but i'ma ask over the phone i'm asking a text message so i don't waste our time because by the time you write that offer once and once the seller see it once it's done they don't throw it to the side there's no coming back so let's let's go ahead and get this out the way before we even go there all right fair enough i agree with that um but that's why i said you need to have your money right have your money so build your team have your money uh have your credit right oh let's talk about income right because this is very important okay too many times folks are switching jobs right you're going from one job to another now during covet we understand a lot of companies went out of business et cetera et cetera but there's a lot of people that are just switching jobs for no reason you're going from w-2 to 1099 back to w-2 that is extremely difficult to get yourself approved so please stay consistent if you're getting paid 1099 or you're self-employed do not quit your self-employed business and get a w-2 job and say i want to buy a house now you just started your clock over yeah you did right and if you're w-2 and this is what i see all the time your w-2 and you had a side business is making money and then you finally want to fire your job no you just started your clock over again so wait until you leverage your w-2 look i'm a w-2 right but i have businesses also but guess what i'm able to buy property at scale because i can leverage my w-2 and my credit all day long and i don't even have to tap into my business income or even show my business income and and cause red flags i'm lucky with that right well god has been good to me god is good let me say the greatest and i say that god is the greatest because i tried that um make you a bit don't make your business name your name that's a whole different episode let me give you guys a little tip i'm a w-2 employee of my business but my business name is my name that don't work they like anyway so we still need to have yeah um so gianna watson keanu okay never mind give me everything and i and i'm on real like i'm on adp payroll w-2 so it doesn't matter but i can tell you this prepare that and then also if you are 10.99 there are entrepreneur loans there are private lenders there are there are specialty loans available to you i want to do this because i like when you talk about loans go ahead talk about some loans listen mg swept him down he's like you you just you just secretly want to be a low knowledge she does she does i'm telling you what it is i just don't like nobody to tell me nothing so and i don't and i like to be able to be informed for myself and for my clients can't so some of these lenders don't be telling the truth that's a fact so i just i know so the entrepreneur loan the bank statement loan it is available but it's going to cost you more money i have so many people like oh i want this bank statement loan like do you okay so do you have 10 15 save no no you don't you want a regular conventional loan work your job file your taxes pay your taxes put yourself on a payment plan with your taxes prove that you are on a payment plan then you can just do a regular conventional loan just calm down it's okay it's not built for everybody but when i do structure those loans for most people it's only because you are an independent contractor it's because you know that you're ready to buy a house and you have an exit strategy we're not putting you in these loans because your interest rate is going to be higher your down payment is 15 your interest rate is probably going to be close to five and a quarter that's with excellent credit decent credit six percent six point seven five right so you have this high interest rate but you're like about talking down talking so you're gonna buy the home now you're gonna make those payments but you would also we got to keep in mind that buying a home that interest you know you own a home you're a homeowner now so that interest is also tax deductible so let's be clear don't act like you're just throwing money away you can use it but you can only keep that for so long the exit strategy for my clients is six months in six months out so in six months you're in it six months with refi so you will have to what file your taxes you're gonna have to get on the payment plan but when you do that you can get out of it and now you've purchased your home and you didn't have to go through the headache of underwriting underwriters they look at you like you a thief they treated me like i was a thief i was like i am key y'all know what they i just bought a house i'm telling you they i was like google me like they don't care like i'm telling you they don't care who you are what you are once you start the rabbit hole once they start digging they just won't stop digging they dig so deep they dug into a business i created back in 2006 so i said just forget it bank statement loan me please just forget it and i'm trying to get a conventional loan so i wanted you to know that that's an exit strategy loan but it's not what you lead with of course but if you are someone if you own a business and you're entrepreneur you're like i'm ready to buy a house now make sure any agent that's presenting those types of loans to you gives you an exit strategy because without an exit strategy it's not a good loan well i'm gonna tell you all this since you touched on underwriting right y'all think we thieves they think we do let's talk about underwriting what's done in the dark will come out in the light and this is what i tell everybody just in life i tell my kids this stop the right no just tell me what it is so that way we can work with it yeah right don't sit here and try to make up stories and lie because kids are good for that but my buyers are like my kids too and i try to tell them the same ways like look okay and this is no disrespect you we all know we got to hold people's hands you got to kind of like you know what i mean no i get it some buyers do be like they will i don't understand why like i'm not the feds dude like let me know what the hell is going on so i can tell you how to adjust because ultimately once that file goes into underwriting before i say that understand a loan officer a pre-approval ain't a pre-approval is not worth the paper is printed on i don't care if i give you a pre-approval they don't mean nothing it just means you ever get those things in the mail from capital one chase and all these other banks like yo you're pre-approved for 100 million credit card and you're like oh snap let me go apply and i want womp you're approved for five dollars that's kind of what a pre-approval letter is real talk it's just the loan officer said that you are pre-approved based off of the information you gave them but who knows if that loan officer did the income calculation right who knows right and that's why you have to ask questions that you know and do your research and you need to know as much as the loan officer you don't need to do a loan officer job but you need to know what they're looking at and how underwriters are looking at because once that loan officer gives you a pre-approval you go out there with keanu watson and you go find a house and she's out here and her team is schlepping you around town and they go out there to get these strategic offers in you often get accepted you put your earnest money down you go into contract you go into underwriting the underwriter says womp you decline you don't qualify and baby they will decline your ass and it needs to happen quickly too because we have time limits on all of our contracts and make sure that when you're working with a realtor they make you aware of those timelines like every state is different but there is due diligence timelines there's option money timelines there's earnest money timelines there are financing timelines appraisals appraisal timelines all of these inspection timelines all of these timelines are very important to the consumer because you that's how people lose their earnest money that is how you lose your earnest money yeah so and you will lose it these sellers are not playing with you so underwriting please home buyers i beg you tell your trucks tell the truth tell your loan officer what is really going on with your profile so that way they can tell you exactly what you need to do because underground is going to find it yo we have systems and loan officers don't have access to this we have something called like nexus oh that's big man they're gonna they're gonna know if you went to jail they want to know everything about you they don't know if your mama went to jail that's what they want to know i'm gonna tell you seriously she um you know you can hire these companies to do whatever they decide to do on your credit i'm not promoting any company that makes you decide to wipe anything off your credit so just keep that in mind i do not support it but do what you want because you are grown but if you do that and all of a sudden certain things are not on your credit let's just say i don't know a foreclosure i don't know a bankruptcy let's just say you paid someone and now it doesn't show up on your credit guess where it does show up lex is next lexisnexis and guess what happens when it shows up it's a problem declined or five percent more give me some more money either or it's not tell the truth up front these companies you think they're wiping things off is only to your naked eye yes everything is perfect public record real estate is public records so what's done in the dark will come out in the light i don't care who removes anything it's going to come up at some point so you might as well tell like and here's another thing that comes up too since we're talking about that is when you have your name on the deed of your grandma's house your mama's house your daddy's house that's your house deed is ownership agreed mortgage is debt there's two different things like i could be on her brand new mansion she brought and i ain't got no debt requirement but i could be owner of that property and she can't do nothing on that property unless my signature's on that paper yes right but now her taxes and her insurance needs to be included into my debt to income ratio as well because i'm legally responsible to pay those escrows if kiana doesn't pay it so if you guys have property that you're on the deed you own that property please disclose that up front so that way your pre-approval can be done accurately all right i highly recommend that you fill out your application in a peaceful environment please do not pull out your application in the car do not be on your 15-minute lunch break that is not the time to do your mortgage application run all your stuff look up all your businesses when you started them when you started your job verify verify with your hr have everything right do not rush into into doing an application so to get prepared to do your application know when you started your job how much money you actually make what you report it to the irs look at it write it down because they want to know do you have a payment plan with the irs and double check if you have someone filing taxes where you make sure they actually filed those taxes because they could check that too absolutely be overly prepared because as much information as you have accurate on your application the better the end result will be for you so let's talk about you talk about irs right irs is irs debt is not the devil right it will not stop you from buying it real estate all you have to do is get into a payment arrangement right get into a payment arrangement try to get the payment as low as possible i'm not doing it they was not with me shooting in the gym i am not giving them all my money at one time yeah no it is a payment plan for me this is my payment look i feel good about it payment plan me too please because at the end of the day that is the cheapest loan that i have on the books today right and i rather just keep rolling that thing over every single year yeah add that money in there what's the payment going to be now thank you very much uncle sam you're my favorite uncle by the way good day thank you have a good day and be on with your memories yeah i'm not telling you how to go pay them people just have proof that you're paying them yes have your documentation in order so that way you're successful so let me tell you all this fha requires you to make at least three payments on your payment arrangement before you can close on a deal conventional loans all you have to do is make one payment so again it's not the end of the world but you got to realize when you're trying to set up these payment arrangements you got to deal with uncle sam's you know little little um customer service people and to get through the irs hell that may take you a whole day so you need to make sure you're being proactive if you know you have debt because we're going to see that you owe uncle sam money when we see your tax returns we're going to look at page 2 and see that line item you said how much money do you owe for this tax bill and we're going to say oh you owe them 30 30 grand where's the money what's happening right so be prepared to pay um uncle sam getting the payment arrangement yeah so let's let's give them the wrap up okay let's wrap this up let's give them the wrap up so if you're buying a home in this season get you a realtor that knows what they are doing so they can package you correctly ask the right questions you know make sure your credit score is as high as you can possibly get it make sure you have as much money as you can possibly have saved saved and if you are going to get out here and buy a home in this environment the best house on the best block is going to go for the best price so maybe you want to recheck your list and make some sacrifices and when you're choosing your loan officers make sure you're asking them the valuable questions mg is going to go over that you need to ask so you're getting the right interest rate so everybody gets caught up in the interest rates nobody gets called up and asking people how many deals did you close i don't care how yeah okay you can give me two point give me three percent interest rate but can you close the deal i'd rather go with the person that gave me a 3.75 interest rate that gets deals closed on the regular than someone that just told me quote unquote they can give me a three percent interest rate and they'll have no proof of closing no deals on that rate so don't just listen to what they say ask them what they do they're so they're social proof but there's also tell me show me show me a couple of cds block out the face lock out the names i just want to see the numbers there's some things that you can ask so mg there you go so since we're talking about rates and all this other good stuff i want to say my rant for this episode wait a minute yeah that's how we're going to wrap this up we're gonna give you a rant at a gym and a gym about our industry so he gonna give you a retina gym about his mortgage industry so this is probably a combination of two but um i would tell you this interest rates right whatever when you're out of pre-approval that interest rate don't mean a damn thing and most people and it's so funny when people call me like oh i got this pre-approval the lender quoted me 2.75 what can you do i don't know you got a contract because your interest rate at pre-approval don't mean a damn thing to me right i can call you two percent right now who cares right stop asking during pre-approval can you match or beat this lender's rate because it's irrelevant interest rates can only be locked when you have a contract 98 99 of lenders in america will not lock your rate during the pre-approval stage so understand if you're pre-approved at a two and a half percent interest rate for example and that market goes up and the interest rate market goes up to three and a half percent that pre-approval is no longer void it's voided i mean right it's it's out of the door out of the window it doesn't matter you have to re-qualify now at the higher interest rates so my gym is mortgage daily news.com go to mortgagedailynews.com that is a website that loan officers all over the country like myself we read on a daily basis there's a lot of information out there and they're going to tell you what the market interest rates are according to loan officers because we're the boots on the ground we're the ones who see in the pricing we the ones are the ones who are quoting these rates so they're going to comprise this data and every day put out what the average daily rate is per the lenders right and there's tens of thousands of loan officers on this page and it's a public website but people just don't know about this people go to like other websites that are advertisement on websites yeah and they see these low rates and think that's the rates but they're not reading the fine print that says you got to pay 20 points to get that interest rate so just understand pay attention to the market you know pay attention to the market don't fall for the advertisements that's online because most of that stuff is just to get you in the door to get a transaction so that would probably be my gem is i like that your pre-approval interest rate is irrelevant correct it ain't locked baby you need a contract go find a house and here's another thing this is a rant because i'm tired of this stop getting 20 damn pre-approval letters like please god why do i need to pre-approve you if you already got 20 letters already correct like what the hell is the purpose like goodness go buy a house like please home buyers you don't need that sounds like another rant no this is a rant because you know what for me as a loan office like come on dude like you've ran your credit to 10 other banks already all within the last week and now you want another pre-approval we're all going to come out with the same numbers essentially right right eighth to a quarter of a point difference in interest rate interview the lenders and pick your top three get a pre-approval letter with one interview the other ones and tell them what your scenario is and have an intelligent conversation with that loan officer because they're gonna they're gonna respect that more than you just keep wanting to get updated pre-approvals because we're all busy at the same time too and we have contracts because we got agents like keanu watson and her crew like yo we got close in two weeks right so we don't have we unfortunately a lot of loan officers in this market can't you know support every request that some buyers might have but if you already have a pre-approval and you know you want to work with said loan officer just go with that pre-approval shop and when you get a contract that's when you compare your top three lenders i got a deal today what can you lock me in with today right what is the rates today and then from there you choose who you want to work with and you keep it moving so that's kind of like a double ramp yeah that was a double rant yeah look y'all [Laughter] i'm going to give you guys my rent in my gym i would say my rent from the real estate industry is choose your realtor wisely everybody's not created equal everybody doesn't understand contract law equally everybody's not going to represent your best interest equally and it's your job as a consumer to choose the right agent because if i had a dollar for every person that was like i'm in the middle of this deal but can i ask you a question no no you cannot ask me a question ask the person that you're paying i get this happen to me all the time i'm in the middle of this y'all don't know what's going on how do you not know what's going on how did you choose this person did they show you their processes their systems like make sure you guys are doing your due diligence as a consumer most home buyers are like oh the agent is free the agent is getting compensation from the seller so this is not free and this is your house on the line so you do your due diligence and choose the right people because my rant is stop asking advice from people that are not actually had that don't have their name on the contract if you chose a person you should have chosen for a reason and make sure you're getting advice from that person if you don't feel comfortable getting advice from that person that person should not be your agent that's a fact this that's the rant i got i like that rant that was actually a really good one it's the truth it's the goddamn truth it's the truth i get emails from out of state i'm like what is happening i don't even know the out of state contract i can't help you but you should have chose someone that can help you you know so that's my rent my gym is my gym for for for future home buyers is i already shared it make sure you go to the national association of realtors make sure you go there and you start looking up certain things that you can look up for yourself state your your state specific laws are there and that tells you who is a realtor now everybody doesn't have to be a realtor some people can just be on a real estate agent but the only reason you want to get a realtor because they're held to a code of ethics and if you feel like they're being unethical you can report them and they could lose their license and there are some people that get into this business for a check and there are some people that get into this business where i'm going to get paid but i'm going to do my job and i'm going to make sure i protect your best interest and if you feel a little bit iffy don't don't stick to that person and you can report them so that's why i encourage you to work with a realtor and if you go to that website it tells you so much information you can know as a consumer on what to look out for and what the job of your agent is we are not loan officers my job starts the moment that i get that pre-approval pass me pass the ball boom tag me in i got the pre-approval now i'm here to find help you find the property and negotiate the terms of the contract and make sure that you're following contractual law keeping you informed of every single time period on the contract what you should do what you should expect and informing all parties about where we are in the process that is my job and my job is to make sure you're not buying a dud a lemon giving you market data giving you market information so you're making an informed decision so you can be an informed and empowered buyer i love it i love it all right so look man episode three right three is a wrap with our first live audience you know this was a whole vibe it was kind of like yeah yeah dj i liked that that was that was a vibe right there do that again bro yeah well there you have it in my rashad voice there you have it there you have it um ranting jim's been episode three like i said uh i too spotify right please like please subscribe write a little review no write a big ass review okay write a big review let us like kiana because it's going to get better and better yes we got some guest speakers coming up oh yeah yeah yeah it's about to get better and better y'all if y'all got ain't got nothing to do hang out with us we need to get you off some food or something so look that's the end of episode three my name is matt garland nmls number five eight seven zero zero better known as mg the mortgage guy and my name is kiana watson and license number five one seven five seven six better known as keana watson easy to go branson jim see y'all next week peace

Channel: Earn Your Leisure

Views: 31,263

Rating: 4.9739537 out of 5

Keywords: earn your leisure, business, finance, sports, entertainment

Id: th-BimWYO9c

Length: 58min 32sec (3512 seconds)

Published: Wed Jun 16 2021