Study Hall: Home Buying Workshop

any longer. Speed up your hiring right now with Indeed, and listeners of this show will get a seventy five dollars sponsored job credit to get your jobs more visibility at indeed dot com slash pod Katz thirteen. Just go to Indeed dot com slash pod katz thirteen right now and support our show by saying you heard about Indeed on this podcast. Terms and conditions apply. Hiring Indeed is all you need.

And usually, you know, they kind of follow the same blueprint where you know, we pick a lounge, restaurant, bar type situation and you know, we do it at nighttime and everybody mingles. You know, we bring people in, we know, we have some drinks. But today we wanted to do a little something different, so we did a more healthy situation. We did an open workout, but we did it in

a gym. Shout out to Boxing Studio for hosting us, and we spoke for about an hour, answered questions to anybody that had questions for us in Mike Roshi Mike Rasche's the biggest when it comes to fitness and a really great entrepreneur. And then at the end we did a workout and they put everybody through a workout, boxing, workout, cardio, calisthetics. It was really really dope. So you know, we put some footage up, but we're gonna have more footage up

in a few days. So that was a really dope experience for us to come to Miami and be able to do our first event in Miami and do it totally different than anything that we've ever done. So shout out to everybody that came to that. Shout to E y O Fitness. We're gonna be rolling out a lot of stuff related to E YO Fitness coming soon. Ye. Shout out to Michael She shout out to boxing Studios and.

had an in depth conversation in a while. So, but he was saying like, instead of him just doing it, it should be more of a workshop where we actually talk about a few different key components to the home buying process. So we brought experts in the field, Jose and Roguez, good friend of E. I. L. I professor and ey L alumni, better known as a credit dude. So Jose is the person that you know gets the credit right, everything you need to know about credit. He

does business credit as well, but personal credit. And that's one of the key components obviously to buying a home is that you know, it stops a lot of people are stopped from buying homes because they don't have their credit right. So Jose's going to talk about credit. Of course, MG is going to talk about, you know, financing from a traditional standpoint and other maybe less traditional standpoints. And

then we got Kevin Orlando. Shout out to Kevin. Kevin also taught a class at Eyo University, and Kevin, what's going on on? Thank you for joining us Trouble Pleasure. Kevin does hard money loans. So if you watch the episode with Lord of the Slums, Fernando shouts and ask if you watch, you know, obviously Caesar and Envy and a bunch of other people, you know, they use the term hard money lending and hard money loans. So people might have hurt her hard money, but they might not

totally be familiar. So that's another the way to actually get financing for real estate outside of a traditional bank loan, and it's a lot less restrictive and it has a lot of benefits as far as you know, for investors. So Orlando, Kevin Orlando is going to talk about hard money loans and then we're gonna open it up to questions. So we got mortgages, we got credit, and we got hard money. Ah, mortgage board of Sources.

that out, bro, that was terrible. And just to see how many people has impacted over the past, what was it two years now since we had that out? Two years? So like it's dope, man, So shout out to her, and shout out to everybody who executed because of the content that I've put out over the last couple of years. Dope, I love it.

our private school educational platform that we started. So we have obviously public school, we like to say, which is the podcast, YouTube, Instagram, All that's free, more free information than I've ever seen online, if humbly speaking. But then we have a private school situation where this is a more you know, community type feel more in depth and for people that you know, really want that you know, in person experience without actually being in person. So what

that includes is weekly webinars. So every single week at Wednesday at eight o'clock, we do a class. So the last one, most of them, they're always private, but the last one of the month we put public on YouTube AI to provide information but also to give people an inside look at what eyl University is. You know, we never had anything, so this is our way to kind of, like I said, it's an open house. So I'll quickly explain what Eyol University is and the benefits of it.

So Eyo University includes the Home Boys Blueprint Volume one by MG the Mortgage Guy, which is the encyclopedia to the home buying process. It includes one hundred pass webinars because once the webinars are done the same so it includes one hundred pass webinars on all different topics from real estate to stocks, to credit, you name it. Weekly classes. So every single week at on Wednesday, we do weekly classes. MG the mortgage guy also teaches real estate classes on

an ongoing basis. I do monthly financial planning calls where we go over financial planning topics and ask questions, answer questions for two hours. This is my favorite part of

ELI University Infinity groups. So we finish we duplicated the whole university model where we have infinity groups twenty Infinity groups inside of EU University, where the people, the earners, actually are leading the group and they're building a community and they're actually learning and building and having meetings with each other. So we have the real Estate group, we have the stock group, we have the fifty and over Club,

we have the Military Club. So many different clubs. I don't want to miss anyone, but the most one that's getting the most action right now is our Crypto Club. Shout out to Alistair. The Crypto Club is on fire. They have a five hundred people in every single call and they break down. It's not like saying like by this crypto, it's actually explaining crypto from a very easy to understand standpoint. And they just talked about like how

real estate you can really do real estate crypto. They talk about it's everything they break that down, and so the crypto club is crazy. It's a full educational cryptocurrency. We have a Facebook group of eighty five hundred people. The first club our book club shot everybody. I mention that, so with the book club, not Infinity. So then we have part of the Facebook group is we have a book club led by Troy. We have a movie club. So I mean, I can keep going on and on, but long story.

we're gonna open it up the question and answers. So who wants to kick this off?

my screen. If you do not follow me on Instagram, YouTube, or Facebook. You can go ahead as the credit dude the same way. I know right now there's people out there with underscores and periods trying to mimic the page. But the credit dude is I only have one page on each platform. And today I want to just go over a couple of things on how to help you become a homeowner.

You're trying to uh, you know, whether it's a multi family, whether the case is you gonna live in one, doesn't really matter, right I think where what a lot of people forget to do is check their credit before they apply with Matt, before they apply with Kevin. And what you need to do is you need to be able to know what's on your credit report person, guess what They're gonna ask you, hey, what is this? And if you say I don't know, it's like, come on, Like

how serious are you with your credit? If you're applying for a three hundred thousand dollars mortgage, you're five hundred thousand dollars mortgage and you don't even you have to check your credit in six months? Seven months, you know what I mean? So you have to make sure you check your credit report. I would say every month, right, and at a bare minimum. But if you're gonna app with Matt, check it every week, check it every day.

Like it's one of those things I wake up in the morning, I'm checking my credit first thing, you know what I mean. So you want to check your credit report because you have to know what's on there. Am I own time? Am I late? What's going on? What's the deal with my credit? Because, like I said, when Matt runs your credit report and he asks you, hey,

what's this bill? What's that bill? Don't you think it's a little bit better to have a little bit of information for him for when he runs your credit or he might not. You might go out and say, hey, Matt, listen, don't run my credit yet I have these things on here, so let's save that inquiry, right. So the biggest thing is is credit data. Credit data is more important than any credit score, right because credit data is what drives

the credit score. So you could have a seven to fifty credit score with a repossession and a charge off, right, and you can have a six fifty credit score with no lay payments. So these are the five categories. Usually see people breaking down in percentages thirty five percent, thirty percent, you know, fifteen, ten and ten. But when you look at how many points, right, your credit score ranges from three hundred to eight fifty. Payment history alone one hundred

and ninety two point five points. The data is payment history. Your data is what drives the credit score. So if you're late one time, two times, three times on multiple credit cards, it'll drop your score. Like I had a client today they were late. I called one of my clients today, I said, hey, listen, you were late on your Capital one card, and it dropped this credit score sixty points. His monthly payment was fifteen dollars a month.

Fifteen dollars a month dropped his credit score sixty dollars. Do whatever you can, guys, to have your stuff on all the pay It's the most important thing you can do with your credit, especially if you're trying to get a mortgage. Debt utilization one hundred and sixty five points. Your cards are maxed out, Guess what, guys, your score is gonna tank.

mix fifty five points, pretty much easiest category. You have a mortgage, you have an all the loan, and a credit card, you're gonna get all fifty five points right, and inquiries of fifty five points so you even notice. I'm sure and Matt and Kevin have heard us all the time. Man, don't roll my credit. I don't want my score to drop. But then you have like lay payments and collections, those affect your score more than an inquiry.

So people are always so scared about inquiries. And the most important thing you have to understand about inquiries is they only affect you fifty five points, which is ten percent. But any mortgage inquiries, usually done within the thirty to

forty five day period, only count as one. So if you got your mortgage, your credit report ran by four different mortgage companies, it's not going to be four different inquiries if done within the thirty to forty five day period, all right, So don't be don't get so when it comes to increase. It tricks for me out how people are more worried about inqureies than lay payments.

guess what happens there's that collection or charge off. That's an experience, and you think you're good, the reporting is inaccurate. Our clients have a preferred credit monitor that we use. We like the Identity IQ only because it's cheap. All right, it does provide all three and you can pretty much go with my FI go, you can go with experience.

You know, something that provides all three credit bureaus is what you want because when Matt runs your credit, you want to be able to explain every single line item that's on your credit report. Okay, The next thing is is that when it comes to your credit, right, and when it comes to buying the more getting approoved for a mortgage. One of the biggest things that we see besides maxed out credit cards is lack of credit or no credit history.

Right so you have self lender. Self lender is one of the easiest ways to build credit. It's a savings account that reports to your credit report. So you pay like twenty five dollars a month. Boom, they reported paying a credit card to your credit report. Pedal p E T a l Pedal credit card. They're one of a new credit card that just came out. They check experience, they do a pre qualification, they approve move up to ten thousand dollars credit card, and you can use that

credit card anywhere another one. Everybody's pretty familiar with Capital One. They will prequalify you and let you know if you are pre approved for a credit card. Any local credit union is typically good. You know you have other ones like DCU, Navy, Federal Pentagon, Federal Credit Union. Credit unions are a really good place to build credit. Tradelines when it comes to mortgages, don't hold as much weight. So I would say when it comes to mortgages, I don't

suggest to you buying a tradeline. Try to do it on your own or have a family member add you as an authorized user without a trade line. Okay, because remember, building credit isn't is more important than what you think, because you could have bad credit and still get to prove for a mortgage, but if you have no credit, there's no chance. And one of the most important things to understand about building credit is it takes six months for a tradeline to be reporting in order to generate

a fightcal score. So let's say if you're brand new, fresh today, you have nothing on your credit report and add a credit card. It is typically gonna take six months for a credit card reporting every single month in order for that fight go score to really be generated. All right, current credit cards one of the things that we see with a lot of clients, Like I said before, max style cards, don't don't try to just pay your credit cards down to thirty forty percent when it comes

to a mortgage. Listen, if you're gonna pay it down as much as you can pay it down, it's just gonna increase your borrowing power, That's pretty much what it's gonna do. It's gonna eliminate those monthly payments that you have on the credit cards and things like that. So pay it down as much as you can. See if you're eligible for a limit increase without an inquiry, because

then that's also gonna raise your credit score. So right now, your goal with getting the mortgage is lowering your credit score, I mean lowering your debt, increasing your credit score, and and by paying down your debt and increasing your credit limits,

it's gonna do just that, all right. If they're gonna say, hey, we're gonna run your credit for the increy for the credit limit increase, tell them not to do it, because you do want to try to limit any inquiries up until the point of view get an approved for a mortgage, Okay, and then also do not use your credit cards at

all if you know you're going for a mortgage. So if you know you're going for a mortgage, don't go to you know, don't mean, don't meet eyl down in Miami, and now max all your credit cards out, you know what I mean. The next thing you know your your your credit score is going to drop you know a lot of points, right, and guess what you're gonna have to wait until those credit cards are paid down or do a rapper rescore in order for that score to get back up. All right, So this is another biggest

thing that we see. I know, MAP posts something about an income based rate. This is where you guys can go right now. Student loans are and for bearans. Student loans aren't for barons. You can go to student loans dot gov and consolidate or refinance your student loans that are in collections into a new loan even though they're not collecting on it. If your student loans are negative, it is still affecting your credit. You can go to

this website consolidate them or refinance them for free. If you're you're If you're in default, you know you do have to do a rehabilityation program for about nine months. All right now, I didn't want to just touch on this right quick because a lot of people have to understand that when it comes to business credit, it doesn't report on your personal credit. Right so remember everything that I was saying about maxing out your credit cards don't

apply for anything. Whatever the case is. If you have business credit available, you can max it out all you want, it's not going to show up. So my problem when I bought my house was I didn't have any business credit, so I really couldn't use any credit cards. You couldn't use any money. But now if you're using your business credit cards, you can still do what you gotta do on a daily basis, and in a sense, you're not hiding the money, You're just using it on a different means.

show up your income. He's gonna be like, you know what, you can now get approved of the maximum amount because you have no car payment, you have no credit card debt, you have nothing. So that's gonna be the difference of you getting approved maybe from two hundred two fifty three hundred to five hundred six hundred. And if you have a business, that's where you want everything to show because guess what, when Matt runs your credit, he ain't checking

your business credit. When it comes to a mortgage, he's checking your personal credit. So you can have six, seven, eight cars in your business. Credit doesn't matter, okay, So definitely definitely check that out because you want to make sure that you're not putting yourself in a bad position. I mean, and if you're looking to get help with deleting anything negative, that's what we do. That's what we help out with. And we only charge you if stuff

comes off because we listen, we get it. Time is money, So if you don't have the time to deal with that, you gotta do get lay payments off, collections, those things like that, we can help out with that. You can also dispute things on your own. You can obviously call the credit bureaus up. You can call your creditors and asks for forgiveness when it comes to late payments. When it comes to certain collections, some creditors, I mean, some collection agencies will remove stuff if you pay, if you

pay them. There's Portfolio Recovery Associates, Midland Funding, LVNV funding. I'm sure Matt knows a lot of these collection agencies and Kevin, they actually will remove it. Not every single collection agency will remove a collection just because you pay them. So what happens you pay ten thousand dollars collections, your score is not gonna go anywhere. Okay, and that's it,

you know what I mean. You pretty much just want to put yourself in a position to where you are doing everything possible to get the best interest rate and also have the highest credit score. Obviously, I'm gonna be on here for Q and A. But like I said before, if you guys need me, hit me up on Instagram, schedule a call. My team would love to help you out to help you take your credit to the next level. And that's my time, guys.

Bridge loans are typically short term loans twelve to thirty six months, depending on if they're bank or non bank, meaning a private lender. A private lender could be an institution. You have a lot of organizations which are pretty much writing paper selling them off in the secondary market, and they're securitizing these they're taking pools of loans and they're securitizing these loans and basically creating bonds or whatever for

institutional investors. You also have folks that are really private that you're talking about family offices, people that have a very very staggering amount of dollars where they're looking to just get a return on their money. So ten percent for these people, it's a good return. If you're putting out fifty million dollars a year and you're earning ten percent interest on that money. That's five million dollars. You know, again, it really these are just different facets of bridge finance.

So we'll talk about we'll label it hard money for the moment. What I really express to people is, you know, what's the goal. What are people trying to accomplish? Obviously, if you're looking to buy an owner occupied property, I'm not the guy for you, that's that's the goat over there to my right on the screen, MG, the mortgage guy.

All right, But if you're looking to get into an investment properties, and I know Matt does agency type of deals Fanny Fanny May, et cetera, that you can, you know, you can invest investment properties and use some of the income on whatever you're purchasing, multi family, et cetera to make the deal work. So, but you know, that's something for Matt to talk about. I asked people, what are you trying to do? Are you looking to acquire real estate,

renovate the property and sell it. Are you looking to you know, acquire, renovate and hold. Are people looking to develop in the Northeast Jersey, New York? A lot of folks are not really into land banking, but when you go down south and more to the west, whether Texas, Florida, land banking is a very big thing. They look at us. Investors in those areas look at us and they're like, I don't know how you deal with the you know, the headaches that come along with investing in new places

like New York and New Jersey. So you know, you have you have land banking and you can do You could do a lot of different things with land. Obviously, you could develop the land, you can hold the land.

some capital alongside them. I did. We did like a forty million dollar raise and essentially all they did was buy land to offset the profits that they made on the oil side, and they just held the land. It wasn't necessarily something that was being developed. Sometimes you can buy the land, create infrastructure meaning plans permits, and you can sell that to a developer. That's something a lot

of people don't even realize. Most people think when you get into land that you have to take it from point A to Z, and that is not the case. You can profit by buying the land, getting plans, permits, et cetera, and selling it off to a developer who will develop the property. I'm doing a transaction like that

right now. I'm actually doing a few and or you could develop the property, you know, whether it's residential, commercial is I believe somebody put up a post you know, they're not making any more land or buy land, and it's so true. So you know, these are just some of the ask classes.

They're not necessarily land banking. And I'm going to tell you why not with hard money because hard money or bridge lending again is a twelve to thirty six month loan, and you know it's not the cheapest money in the world. You want to be able to enter and exit at a certain point. Your lender will want you to do that. So we're typically dealing with people who are going to take the property from a to Z and or a

to let's say midway. They're going to again create the infrastructure for development to sell it off to a developer. So we usually lend about sixty five percent loan to value on the land, and in terms of we like to see about thirty percent cash into a deal like that, thirty to thirty five percent because again it's not a cash flowing asset. It's there's usually nothing there, but there's

obviously tons of potential to create whatever you want. With the housing crisis and everything that's going on, Look, there's not enough housing. There's always room to build. What's happened during COVID, you have so many people leaving, you know, at least the northeast. You guys are down in Miami right now, which is a big, you know, metropolis. It's a big metropolitan area. But you have people just leaving the big cities, and there's a need for residential housing

outside of you know, major metropolitan areas. So people going to the outskirts maybe an hour hour and a half outside of the city. They're buying land, they're they're you know, creating infrastructure, and they're building. So it's it's a very good investment. Not many people really understand how to go

about doing it. I want people to do it because again, it's something that you can really get into a property for a minimal amount of money, just because land is a lot cheaper than something that's already stabilized or built right and you know, essentially use debt to do whatever it. You know, the property allows whether that's residential pieces, and you can build out those residential pieces and then refinance into more you know, a more conventional loan. Hold those loans.

It's known as build to rent, and or again you can create commercial assets where you're creating cash flow via commercial properties, whether that's mixed use strip, modls, et cetera. So I always ask folks, you know what, what are you trying to accomplish? You know? And that goes it goes back to you know what Jose said, I'm basically looking at credit. I'm looking at certain things and it's actually on the next slide. I'll go down, scroll down

here if I can. Let's see. So these are some of the things that I ask for, and I think any.

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So those factors kind of come into play with how much leverage we're going to extend doesn't mean we won't give a part. You know, an individual with not as much, How can I say this weight on their credit or yeah, let's let's just say that. It's not that we won't lend them money, just leverage might be a little bit different. So we look at credit, we look at the secondary the secondary reporting agencies, whether that's Nexus, Lexis, and then there's a ton of them.

to do is help people execute. And the way that I'm able to execute is by creating a narrative. That's part of this skill set in order to get transactions done. Is create a narrative around what's happened in the past. We cannot judge people on everything that's happened in their past.

It's just not fair. But I've had individuals who were incarcerated, you know, for lengthy periods of time, and they were the difference between someone who was away for a long time and someone who wasn't away for a long time. It was really the honesty. From the financing perspective, we were able to get over certain hurdles. I share that because it's just so important to be transparent. I'm gonna

find out anyway. We've been very very Our systems are very good in terms of piercing, you know, locked secondaries, if you want to call it that. You have you know, folks that say, hey, look we're gonna lie, you know, don't worry, you won't be able to see this or that in the background, you know, in terms of a

background check. That's not true. We've been very good at We're very good at what we do, and we want to make sure that the person that lending money to has the wherewithal, the character and integrity to not only execute the deal but pay us back. That's what this is about. This is about you know, putting money out and obviously you know, replenishing that capital. So pedigree is another big thing. I mean, how many deals have you done? You can't expect to take down one hundred you in

a building and you've never done a deal. So I always say, be a little bit pragmatic in what you're trying to accomplish. This is not for you know, I'm not trying to deter anyone from you know, shooting, I guess, you know, raising the bar and going out and trying to you know, build their dreams, execute their dreams. But you have to be realistic as well. A lender is going to you know, be pragmatic in his decision making. I don't care who it is. So personal financial statement again,

what's the liquidity look like? You know, what's the outstanding that that you have, What assets do you have? How much you know, how much do you have in your four oh one K accounts? Iras? These are things that we all look at, not necessarily and most of these things are stated, right, So I'm not I usually don't ask for these things. But it's on a merit of It's an on a merit system, you know.

let's put it this way. You can ride you can ride the subway every day, and a token is a token. That's the cost of the token. It doesn't necessarily just because you ride the train all the time doesn't mean that the MTA gives you a deal.

Just to get an understanding of you know, your leverage marks something that I do personally and for my clients. They tell them, listen, find out what the income and expenses are on the property. And not only that, whether it's a flip or you're deciding to hold this thing. You know, REFI out in twelve months, twenty four months, and I don't care what type of property it is. You want to have an understanding of the income. Because look what happened last year. I mean on March seventeen,

twenty twenty, when COVID kicked in. I never forget that day because I had twenty five million dollars worth of loans on the table. And when everything's shut down, everything shut down? What does that mean? That means that a lot of folks weren't able to sell the properties because realtors weren't even going to properties. Neither were appraisers. So you kind of needed. My whole thing was listen, if you're in a bridge, get out, look at the end. But you have to look at the income and expenses.

The property has to make sense, it has to cash flow, because again we can we don't know what the future holds. Right You're seeing people buy properties above ESK and Matt could probably attest to this more than you know. Matt, how many people are how many people are you seeing paying above market right now?

everybody's talking about student loans, student loans, they and forbearance. Unfortunately, if your student loans are in forbearance or deferred and you're going with FAHA, then the lender is going to use one percent of your balance to include into your debt to income ratio. So remember this, guys. If you got let's just do e Z numbers one hundred k and student loan balances, one percent of that is one

thousand dollars and that's what the lender is going to use. Now, what people don't realize is conventional loans do not have the same guidelines. Conventional loans will accept your payment if you're in an income base for payment plan and that payment, you know, you get a letter from your student loan company showing that your payment is five dollars, ten dollars, fifty dollars, whatever it is. On a conventional mortgage, we

will use that payment. So a lot of people always say student loans are hindering them from buying real estate, and it's not. It does you know, I'm not going to try to make light of it. It does if you're going FHA. But the flip side of that is you have to go conventional if you can qualify for a conventional loan. So I want everybody and all the earners, all the YouTubers right now to really understand if you have student loans at your lender, if you can get

approved for conventional mortgage versus an FAHA mortgage. Right that's number one. Number two, If you guys are participating in any sort of credit repair, make sure that your credit repair is completed before you apply for a loan. Reason being, most credit repair companies are disputing these liabilities on your credit report, So when a lender pulls your credit report, it's going to show you know your American Express is currently in dispute. That's going to be the language that's

on your credit report. Lenders, per the guidelines Fanny made Freddie mac Fhava, they cannot lend to someone who's dispute and actively disputing their trade lines. So what you have to do is resolve those disputes, and then the lender has to repull your credit again, which will result in a second hard pull, which can ultimately lower your credit scores. So I see this a lot all the time people

be in the middle of doing their credit repair. They're in the beginning the middle, and they're so eager because their scores might have jumped up, you know, twenty thirty fifty points and they want to go execute. Great, but you have to finish out your credit repair either. Just tell your credit repair God to end the disputes and resolve them so then you can go ahead and run

your credit. So people are making big mistakes by having double credit polls, you know, within a thirty period third over a thirty day period time, and then it drops their scores back down. I see this shit happen all the time, fellas, all the time. So please with student loans, God, I mean I saw the loans with credit repair. Just make sure your liabilities are done with the dispute right now.

But obviously, with credit scores five eighty FHA six point twenty with conventional five eighty with VA loans is the minimum credit scores nationwide pretty much, some lenders will have over on top of that overlay is basically when the bank the lender will put their own guidelines on top of what the government guidelines are. All right, So actual if your lender is telling you that you need a higher credit score, then you must ask them automatically what

other overlays do you have with your lending programs? Because that lender might not be the lender for you because they might have they might be more restrictive. You know me, personally, I follow the guidelines, the agency guidelines to a t. We have no overlays. So whatever we can get an automated underwriting approval from from Desktop Underwriting aka DU, we will lend all right, but make sure you guys find that out. Now, let's talk a little bit about loans.

Since Kevin was talking about hard money, fixing, flipping, things of that nature, let's talk a little about rehab loans.

But let's talk about ADUs accessory dwelling units. A lot of us talk We always talk about multifamilies, right, We talk about house hacking all the time. But what people don't realize is that a lot of states are very ADU friendly, places like California, for example, because there's housing shortage, there's not enough homes for the people that need them.

So what ADU is basically, think about your garage. The California will allow you to turn your garage into until an apartment, right, and so it's a legal single family with an assess three dwelling unit. Here in New York fellas we call those mother daughters, right, But everywhere else

is more assessed dwelling units. You can use a Fanny May homestyle loan to convert your garage, your basement into this ADU unit, and now you can house hack legally, and Fanny May will allow you to use the rental income, the potential rental income from your ADU to help you qualify as well. People don't really understand the value in that because most markets don't have duplexes, don't have three families, don't have four families like they do here in the Northeast.

So I want everyone who's listening listening to this to understand you you can house hack with a single family. Also, buying a single family is not the worst thing in the world, unlike a lot of people like to talk about on social media they say, it's not an asset. But with a Fanny made home style renovation loan, if you don't have those funds, you can use this product

to house hack your single family. If your state or county will allow you to legally convert you know, your basement or your garage into an ad U. Hell, you don't even need a garage. In some cases, they'll allow you to build a brand new structure also and there'll be an ADU. And you can do that with a family made homestyle loan too. So I want everybody to really understand the value of these ADUs. They're becoming very

popular all over the country. So folks, look, do your research, do your due diligence, as we always say, see if your town and your city will allow it. But rehab loans is where I want you guys to focus on.

buy a four family that's a second home? No, you cannot buy a multi family and use it as a second home. You can buy one family. So when you think about second homes, think about my guys are in Miami right now. Think about buying a condo in Miami where you can go visit and have a good time and you can stay in your condo. But now when you go back to New York or wherever you're from, you can now airbnb it. You can use this loan, put ten percent down and get one hundred percent of

your rehab course. You can buy a one family investment property using this family made homestyle renovation loan. Also, so if you want to go buy something in Cleveland, there's a lot of hard money lenders that won't even touch anything under one hundred k. Well, Fanni May technically doesn't have a minimum loan amount. Lenders now will cap you. But I've seen and I've done deal's fifty thousand, sixty thousand, seventy thousand, and forty thousand with us in a fany

made homestyle renovation loan too. So for those of you folks who are trying to buy any smaller markets, don't discount this product. Now you can get one hundred percent of rehab and there's no experience required, which is the beautiful thing about these loans. See, well, hard money loans, like Kevin was discussing earlier, you have to if you want the higher finance and ten percent down fifteen percent down,

you have to have experience. If you don't have that experience, they're going to require twenty probably to thirty percent down, just depending on a deal and depending on you and your credit and everything like that. With these loans, you don't need any experience. You just need to be able to qualify from a debt to income racial perspective. And then when you close and you finish your rehab, guess what,

you got a deal under your belt. So now when you go to Kevin, you'll be able to say, hey, here's my settlement statement from my deal that I just rehabbed, and now it's my rent tool, it's my flip. Now you have a deal under your belt, and you leverage your personal credit, your personal income, and you got yourself in the game. So don't now, I want to say this, it's not going to be as quick as hard money.

You got to have your ducks in a row, right, And that's what the Homebuys Blueprint Volume two is going to teach you how to get your ducks in a row, how to get these deals closed thirty forty five days. They can't take longer if you don't have your ducks

in a row. But that was the whole purpose of Volume two was to teach you guys, how to go out there in today's competitive salers market where seventy percent of the people that I'm doing loans for are paying above asking, where I'm trying to flip your mindset to say, think like the investor, understand the seventy percent rule that hard money lenders are going to use. You can you can compete with these investors because of them, ninety five percent of them are not going to go above seventy

percent ARV. ARV is after renovative value. For those of you who don't know, most of them are going to stay below that because they want to get financed. But you, as a home buyer that's gonna live in the house or buy an airbnb for for vacation purposes, right, you can go to eighty percent ARV and outbid them every day and walk into your property with twenty percent equity if you know the game. So the home Buyers Blueprint,

Volume two is what you guys need. You need it, you need it, and I'm telling you it's gonna save you a ton of money. I know I'll keep going on and on, but like we here for a reason and purpose, baby, y'all need.

our resources become everybody else's resources. So yeah, we'll push your information.

EUIL University and just the regular POE as well. The regular podcast is just watching people give information, which is extremely powerful. But a lot of times people have personalized questions. And what happens is that people go on to dms and after they come on the podcast, they got three million dms, so they might be able to answer you back, but they probably don't have an opportunity to answer you back.

So Eyo University another benefit is that you actually, you know, it's kind of like a classroom situation where you get to raise your hand and ask questions. So this is the second part of the presentation where we're going to go Q and A and everybody that you see on the zoom their members of EIU universitys wanting to get

to ask questions. So once again before we go to the Q and A, if you're interested in joining, Eyo University currently have a limited time only sales sixty percent off and that includes the home by Blueprint buying one over one hundred past classes, weekly webinars, twenty Infinity groups, including our Crypto Club, which is the hottest industreets right now.

Shout out to Alistair, Monthly financial planning calls with me, access to our private Facebook group with over eighty five hundred people, book Club, Movie Club, monthly group chat that's with me and Troy, and then we bring different people on. This week, we brought the president of the Crypto Club, Alistair on, and we also brought the latest Eile alumnis on Chic Code.

for our UK earnest. We have Infinity groups, we have a book club, movie club. So it's not something that you're just going to just do one weekend and your whole life changes. It's for people that's really serious about the education, that's looking to work, that's looking to network and really build the community. So that's what we that's what the Eyo University is. So let's all let's let's jump into it. Let's let's see question, let's see what we got. I've been on the road, I've been in two

months with no name drops. So let's go to Trey real Estate. We come to you. Mute the stuff. You've been unmuted. What's going on? Shout out the trade?

an inquiry either way. So I would definitely try to get either approved for a loan or just pay down your credit cards, you know, as much as you can, because getting another thing the thing is the way that the utilization works. It works per card and total cards. So if you have two credit cards that are maxed out and you get another one that has a zero balance, you still have two credit cards that are maxed out.

So yeah, it's can help the uslation a little bit, but you're still going to have those two maxed out credit cards.

Since COVID came around. I'm hoping it does come back at some point, but that program wouldn't allow for multifamilies, only for single families. True traditional construction loans, like if you're going to like through an a paper bank, will only be for single families as well. It's not a first time home buy a program where you can put down minimum down payment. You'll have to put down like twenty twenty five percent. It's just a completely different ball game.

But if you want to build multifamily, that's when you need to go into Kevin's world. And that's really going to depending on your experience. Also, Kevin can speak a little bit more to that one.

commercial bank side. Let's say if it was for an investment property, most people would want to most banks would want to see at least the shell completed, meaning foundation poured, you know, walls up, and from there they would they would extend capital.

and building ground up. Maybe you find a cheap single family and convert the property into a legal two family with using an FHA too or three K. That's another gem of the two or three K program. Okay, yeah, thank you.

and then from there you make a decision. But I would if you're buying retail, I wouldn't expect to get money off the purchase price in this market.

You can say I'm going on cash, but knowing you're getting hard money financing. That's what a lot of these invests doing a lot of Let me tell you, guys, a lot of these people are not paying cash. Let me just say that they're not paying cash. Don't let them fool you. They're not paying cash. They are using hard money and saying it's cash because they can close fast. But they're not using cash.

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