Feel the ground shake beneath your feet as we recount the unexpected quake that hit our area, but hold on tight because the real seismic shifts are in the wisdom Ben from GHUC imparts on real estate essentials. Our latest episode uncovers the 'CIA' of mortgage approval—Credit, Income, and Assets—and the vitality of a robust credit history. Ben, a maestro of the real estate realm, orchestrates a masterclass on the financial nuances that can make or break your homebuying journey, from understanding underwriter expectations to dissecting the critical income ratios for loan approvals.
Salute to our veterans and active service members! This episode is brimming with insights on how to harness your benefits for a VA loan, including the potential to bypass both down payment and closing costs. Navigating through the complexities of FHA and VA loans, we shed light on how the Dodd-Frank Act reshaped lending and why vigilance against predatory practices is paramount. As election years stir the interest rate cauldron, we explore the implications for your wallet, offering a beacon of knowledge in a sea of financial uncertainty.
Finally, we celebrate Ben's remarkable transformation from a college student to a real estate office owner and his philanthropic strides through Grant House Unity Corporation. In a deeply moving segment, we explore the symbiosis between successful real estate ventures and the power to fuel charitable missions. This episode not only equips you with real estate savvy but also inspires with tales of using that knowledge for the greater good. Join us in sending a heartfelt thanks to Ben and keep the conversation alive as we continue to unravel the transformative potential of real estate.
Please Subscribe/Follow the Cottman, Crawford & The Jersey Guy Podcast.
Follow us on Instagram and Facebook.
https://linktr.ee/ccandnjguy
Email us all your feedback, comments & suggestions at: CCandNJGuy@Gmail.com
Feel the ground shake beneath your feet as we recount the unexpected quake that hit our area, but hold on tight because the real seismic shifts are in the wisdom Ben from GHUC imparts on real estate essentials. Our latest episode uncovers the 'CIA' of mortgage approval—Credit, Income, and Assets—and the vitality of a robust credit history. Ben, a maestro of the real estate realm, orchestrates a masterclass on the financial nuances that can make or break your homebuying journey, from understanding underwriter expectations to dissecting the critical income ratios for loan approvals.
Salute to our veterans and active service members! This episode is brimming with insights on how to harness your benefits for a VA loan, including the potential to bypass both down payment and closing costs. Navigating through the complexities of FHA and VA loans, we shed light on how the Dodd-Frank Act reshaped lending and why vigilance against predatory practices is paramount. As election years stir the interest rate cauldron, we explore the implications for your wallet, offering a beacon of knowledge in a sea of financial uncertainty.
Finally, we celebrate Ben's remarkable transformation from a college student to a real estate office owner and his philanthropic strides through Grant House Unity Corporation. In a deeply moving segment, we explore the symbiosis between successful real estate ventures and the power to fuel charitable missions. This episode not only equips you with real estate savvy but also inspires with tales of using that knowledge for the greater good. Join us in sending a heartfelt thanks to Ben and keep the conversation alive as we continue to unravel the transformative potential of real estate.
Please Subscribe/Follow the Cottman, Crawford & The Jersey Guy Podcast.
Follow us on Instagram and Facebook.
https://linktr.ee/ccandnjguy
Email us all your feedback, comments & suggestions at: CCandNJGuy@Gmail.com
Cotman, crawford and the Jersey Guy podcast.
Speaker 2:Hey everybody, kenny Cotman, lewis Crawford.
Speaker 1:And I'm Tom Ramage, the Jersey Guy.
Speaker 2:Yo, good evening gentlemen. How's everybody today Good, how are you Actually? Not too shabby, Not too shabby.
Speaker 3:That's good I'm doing good, yeah, that's good.
Speaker 1:I'm doing good, doing good here.
Speaker 2:Yeah, yeah, yeah, decent week. Yeah, working too hard.
Speaker 4:That's good, because we're doing another podcast, so that's always good, just big news we had an earthquake. Yeah, earthquake today.
Speaker 1:Crazy, yeah Fault runs all the way from like I forget to New York City.
Speaker 2:I didn't even feel it. Yeah, I know, I didn't even feel it either. It was like what I thought it was a truck driving by Like I didn't feel it, Just heard what it was supposed to be.
Speaker 5:That's what a lot of people were saying.
Speaker 4:Yeah, uh-oh, from GHUC, grand House, unity Corp. He's also someone who has classes that he helps people with real estate, on how to get a home, and I'm sure there's plenty of avenues that he's going to go through with us to let us know how they can go. Do that. So, ben welcome to the show again sir.
Speaker 2:How are?
Speaker 4:you, Ben? How are you doing? What's going?
Speaker 5:on. Things are good. Things are good. I want to thank the team. You know together we all achieve more. A lot of effort goes into the podcast and, really, you know, building up a network. So whatever we can enhance and bring information to the people, that's what we're here for. Yes, awesome, I appreciate it.
Speaker 2:We appreciate it. Thank you much Excellent. We appreciate it. We appreciate it. Thank you much Excellent. So how's everything else? How's your week going, Ben?
Speaker 5:It's. You know it's a very active week and you know, believe it, we learn. You know, although we've been around for 50 years in the business, we learn like every day. But yeah, we're going morning to night, you know, especially when you're dealing in real estate and you're dealing in mortgages. You know a lot of people feel a lot of pressure when they're buying a home and they're getting a mortgage and you know what. You know what they have to go through.
Speaker 2:Right, right right.
Speaker 4:Yeah, so no, I look forward to hearing what Ben has to say in regarding that. So he was mentioning to me earlier something, uh, foreclosure auctions uh reo auctions, down payments, uh, real estate listings. He's going to go through all that stuff and I'm ben, I'm going to guess you're going to probably wind up talking about people making sure they have good credit as well, and that's going to be a big factor to help them right oh, yeah, there's, yeah there's.
Speaker 5:You know what we call anyone out there that's looking to buy a home or that looking to become an agent in the real estate business or a loan officer. They're looking to work full-time, part-time, become certified as a processor or an underwriter. This affects all whom you know that's involved. You know, looking for the American dream buying a home and then making an investment. But the law of mortgageability is what we call CIA and it's not the Secret Service, but it stands for C, for credit. And just because you have an 800 credit score, sometimes you may only have one card, one credit card. So, underwriters, we want people to know, you know more about credit, because we don't get all the information and experience out there. So see his credit. Typically, an underwriter is looking to see four trade lines when the accounts were opened, what we call high credit and what the balance is and how the payments are going in the history. So four typical trade lines, credit cards, and, in lieu of, someone comes and says I only got one credit card, well, you may not fit under the conventional loan, and then we may have to see and seek an FHA loan. And then we look through the certification, the guidelines, the regulations, and we say, hey, a doctor's letter can do it. You know a furniture loan. You know an insurance company Did you pay your insurance on time? Yeah, so this is some really, really solid and good information, just on the credit alone. And then people sometimes they have a lower score because they use so much of the credit cards, and that's what we're going to do with this podcast, where I'm tending to join the team I'm so honored with Lewis and you know and and the team is that this podcast is going to go on every week and you know we want people to tune in. So if anyone has an iPad, a recording device or a notebook, you know we're a little old school, so I have the notebook. Sometimes the figures are too big to get on the phone to type everything in.
Speaker 5:And then we move to the I, and the I is the income and we want the listeners and the followers and the supporters to understand. As far as income, you may want to ask well, what are the ratios and how does income work? Excuse me, because the underwriters and the bank want to make sure you fit into what we call typical front end and back end ratios. Ratios are extremely important to understand. There's a front end and a back end. The front end is going to mean I have no debt, I don't have a car loan, I don't have credit card payments, I don't have a student loan and other don't have credit card payments, I don't have a student loan and other loans. So that's the front end, and then the back end ratio usually could go to 36%. And you know what? People aren't going to understand everything unless we do a Q&A questions and answers and we answer more.
Speaker 5:So right now we just want to outline things. C for credit, I is your income, there are ratios and another one of our podcasts will really get more technical. And then A is the assets. And believe it or not, guys, if someone said you know what? I don't have much down payment, but I may get some money or I'm saving the money Under the FHA, which is throughout the United States of America, all you need is $500 of your own money and the rest could be borrowed. So I want to start with that. Bounce it back to you. The war of mortgageability is safe for credit and the rest could be borrowed, so I want to start with that bounce it back to you.
Speaker 1:The war of mortgageability is C for credit, I for income and A for assets. Oh, I didn't know that. Yeah, Okay, Okay, you know the FHA loans. I know that's an interesting thing because I actually went through that myself. We got an FHA loan when we first got our house because we couldn't get a traditional loan.
Speaker 1:We would just work financially right there yeah, um, but I know the thing is that, uh, the the insurance right, you have to have the insurance now for the light. I remember that was a big thing when I this is back in 2014 they were said that that was like a new thing that you had to get um for the life of the loan. Now you have to have the insurance, though right.
Speaker 5:Yeah, that's a very, very good point. You're right on target with that, because what happened in the days in the 1970s when I was growing up in this business? You would be paying about an eighth of a percent for insurance. Let's back up and let's tell the people that the FHA is the Federal Housing Administration. It's where the government is involved in the loan but they don't lend you the money. The banks lend you the money but the government insures up to 20%. So to insure that 20%, to make it a lower risk for the bank, you know they charged an eighth of a percent, but when you reach the 20% equity you could eliminate it. So people two years later were saying my house went up, I put more money down, I got the equity. I don't want to pay this extra $50, $100. Now it's an extra $200, $300, $400 amounts of loan. But now today you're paying about 0.8% of the loan. So if you think you're here six in a day, you know what. Even under an FHA, you're near 7%. Yeah.
Speaker 1:Okay, yeah, and I remember, with that insurance, that you got to pay for the loan. As I was saying, we ended up, you know, just after like a certain amount of years we just used the equity and the value increase to, you know, get another loan after that.
Speaker 5:Well, you know people sometimes you know the way the banking system is set up is that, according to statistics registry in a database, the average family in America moves seven to eight times in a lifetime. So let's say you're making a $1,000. Pni stands for principal and interest. You're making payment for $1,000. That's $12,000 for the year and $96,000. Well, what's that times 12? One second 12,000 times 12, 10 years is 120,000, right, yeah. So let's say you borrowed, you know, 250,000. In 10 years you gave them $120,000. You're still going to owe them about 23235,000, $240,000.
Speaker 4:Right.
Speaker 5:So everything is what people. What we could do in this podcast is teach people economics and bring a special value, because it takes time, that you have to spend a lot of time with people, and one thing I heard about is that we want to put the time in to bring a different type of education. It's a little different than a university academy, but the time we put in is what we can get out, how we can help people make that American dream come true. Yeah, nice, excellent.
Speaker 2:So I got a question you said so only with the got a question that you said so only with the FHA loans that you can use, like you said, a doctor's note or doctor's bills and stuff like that Can you use your school loans like as a credit because you've been making your payments on time and such.
Speaker 5:Well, hopefully, you know you didn't put a, you know a hold on the student loan. But we have to document that we're a direct FHA lender. So we have to document finding the alternative credit. So, yes, if it's a student loan and it was paid on time, a lot of times the parents co-sign. But look for a doctor's note, you know, has all the co-pays been paid? Or you know, you know how, how would they bend as a reference A furniture loan? You know, and you know things like that. We build up alternative sources to build up and solidify the credit part of the underwriting for an FHA loan.
Speaker 1:Okay, okay, so so, yeah, I was just saying he was. So you started. You were talking about the different types of loans, right, Right, so what are the other types?
Speaker 5:Cause I remember we, we started talking about that is, uh, that they call the buy, fix and flip. Then there's a Fannie Mae conventional loan and there's a veteran loan. We just did a VA loan in Florida. We just closed a deal. It was a former state employee, really high pension. He's retired At a young age, you know, 50 years old. He retired Good pension, he was disabled, he got social security and he served in the armed forces. So for everyone that's listening, right now that's in the armed forces, you want to seek and look for your DD-214. That's called a certificate of eligibility and that means you're eligible for a VA loan with zero down payment, even zero closing costs. But this loan I did a $630,000 loan for a vet in Florida and I found him the home and we were so grateful and thankful that we were able to provide him with all the financing he needed.
Speaker 2:Okay, awesome Now. So then you guys can work through any state. So, like you said, you just got this gentleman. Help him get a house in Florida, even though with your and are you only certified here or are you, like, kind of certified anywhere?
Speaker 5:Actually, with the licenses for FHA and VA, we're in 44 states. Sweet and VA we're in 50 states and I'm in 50 states with other types of loans, especially the buy, fix and flip loan, we're in all 50 states.
Speaker 2:Okay, next question, sorry, unless you guys got one, no, okay. So, um, with the veteran loan. Uh, is it only veterans or is it those that are still serving?
Speaker 5:no, no, it's usually not for those serving, although that is possible, because if you're just serving, your income's most likely going to be limited, unless you've been a long time serving. You're 20 years in and you're a high-ranking official. With the money, what Vendor is is. You put your time in, you came out with an honorable discharge, You'll have what they call the form, the DD-214, which stands for Certificate of Eligibility, and that'll qualify you. But we're going to look at your job, we're going to look at your income because, look, the bank is going to give you the money, the government's going to show the loan, but everyone wants to make sure that you know you could pay the loan off. Got it?
Speaker 2:got it now with still with the veterans, because that's one of my favorite things to always right I said the veterans. I just, like you know, hearing more about the veteran stuff, I like to make sure that you know, everybody know that they're this way, they'll be okay. Um, when the veterans uh, buy a house and they use, they say first-time veterans loan, kind of like the first-time homebuyers. I'm sorry, can they use their certificate several times or is it only like a one-time deal?
Speaker 5:No, it's a one-time deal, but it works this way, and that's a really good question. It works that you're a veteran, you bought a home, you want to upgrade, you want to downgrade, you sell, that loan gets paid off and you get another one. It's only one at a time.
Speaker 2:Okay, got it, got it, got it, got it. So then now, if they do good on that first time that they loan, do they, because they're veterans, get a discount, I guess you'd say, or a break on the interest rates? They say they're going to buy a second house.
Speaker 5:You know there are ways that when you study loans, what you work with the loan you work with us, that you could buy down a little bit, you could cut a little bit corners. I mean, unless you know the completion. I mean today. You know it's a complex world. It's complex banking because in 2008, they called it the Dodd-Frank Act because of the predatory lending. I don't know if you guys remember 2005, 2006. Thousands and thousands of banks went out of business.
Speaker 2:Right.
Speaker 5:And Dodd-Frank Act came out. It was called a loan. I was very involved, like in the business, so I remember what they called the MTA loan and the MAT loan. Okay, and that stood for the monthly treasury average, or the monthly average of the treasury. This has to do with treasury bonds, notes. You know one-year terms, 30-year terms and where you put your money in and you know they came out with a program. Listen to this. It started you at 1% it was like a bait and switch loan and you started at one and within two years you were up to 11%.
Speaker 2:No way.
Speaker 1:Yeah, yeah.
Speaker 5:So in other words, they were giving you a half a million dollars, the loan would be interest only and you started at one and two years later you couldn't afford your home because you had a half a million dollars and your payment was going from a half a million from $2,500 to $7,500.
Speaker 1:Holy, free, holy.
Speaker 5:I know people that were very close, so let me tell you, I was involved in the chaos in America, so we're giving people information that you know. You might have been in it and you might know about it, so I got to talk to people about that. But the people listen. It's good for them to listen to understand all the trends in the marketplace. Now there's an election year, so you know we talk about race. Where are rates going, ben? Where were they going? Well, you know the rates are coming down and I got to tell you for all the decades, every time they told me it was going down, it went up, and every time it was going up, it went down. But right now we know it's an election year. Everybody's saying it's holding, but the rate went up. The rate went up, you know.
Speaker 2:Yeah, wow, so does that generally happen during election years. Yeah, during election years they go up and then after the first term, Usually, you know the party that's in, they don't want to go up.
Speaker 5:You know what that would do for election time Okay, it really wouldn't be there. Would do for election time okay, it really wouldn't be day. But right now I got a feeling myself they're gonna make a move uh, politically make a move and rates are gonna drop at the time when it comes close to election. But you know that's only a prediction and we don't want people to go by that now. Right now. There's nothing like now. We live in the now. Now is the only moment of time we have control of. If you're worried about a half a percent Lewis with our economics and what we're going to bring on this podcast, even if you're paying a half a percent higher, if you use your tax rebate, you know what's going to drop eight years on a 30 year loan and we're going to drop three, four years to 11 years on a 15 year loan.
Speaker 2:OK. Ok, that works yeah man, I can, I get that that's. That's, it's wild. It's just crazy. Because how the interest rates? Just you know they change. Now, when you get a fixed rate though, on your home with the interest rate and such, on your loan as a whole, there's nothing that can change that, right, I know it says fixed rate is supposed to stay, but there's nothing that can.
Speaker 5:You know what changes that Taxes go up, your escrow goes up.
Speaker 4:Insurance is that taxes go up your escrow goes up Insurance goes up your escrow, but the actual rate stays the same.
Speaker 5:It's fixed. Your P&I is fixed, the only thing that can change is the taxes escrow and stuff like that, Okay, okay cool.
Speaker 5:However, we got a new program first time on the market. They call it a rebate. I don't know if you guys heard of this, but I just got news on a program. I just did a loan for my son who just bought a home and thank God we're the bank and we put him under a new program that's called the rebate. If he drops you know I don't want to give like all these numbs about, but you know it was a half a million dollar loan. I don't want to give like all these numbs about, but you know it was half a million dollar loan If you uh, you hit a lot of, you inherit money, uh, you cash in your stocks, you sell another property, and that's what we're doing.
Speaker 5:We're selling another property and we're going to drop $300,000 down. Now we don't go to another closing, we drop where you can drop it, you can drop it, but your payment always stay the same Under the rebate loan. We now take the same rate and we drop the mortgage from 500 to 200 and we make the new payment on 200. Wow, what a terrific loan, yeah that's cool, that is awesome.
Speaker 2:That's a really good one, Ben knows his shit man. Yeah, yeah, I know what I'm saying, but that rebate that's awesome because that would help out so many of the people.
Speaker 4:It's so complicated. It's good to talk to someone like him, because to you and I it would be gibberish.
Speaker 5:We would have no idea what the hell was going on.
Speaker 4:But when he explains it to you, you get a clearer picture, a better understanding, because he breaks it down and you're like okay, sometimes you just need it to be done that way and then you feel more comfortable too, right, yeah, yeah, definitely, that's the main thing. You're like oh, all right, I didn't know that. That's cool, I check this out.
Speaker 2:Yeah, all right, so you had a question, no, okay. So now my next question. So now for lower income uh, people, how do you help them out? Because they, you know, you know that they're only going to get, let's just say, throwing out a number. They're under, let's say, like they're forty thousand dollars a year. You know, uh, but they've been paying whatever credit card you know, however low it is, or whatever. They've been paying their things off. They have no issue with their. But because they're in such a low tax bracket, does that hurt them?
Speaker 5:to be able to buy a home.
Speaker 2:Or does it help?
Speaker 5:them. You know what the situation is. Someone has a they got a deli, they got a cash business, they got a store, they got you know any store. And then what happens is when they go to the account they says you know what, I don't want to pay all these taxes. You know how that affects people and hurts people. And people said it's a new business and a lot of times sometimes everybody's not thinking it may even be the account, maybe the lawyers, maybe the mortgage people and I'm not saying anything about it because I'm so blessed to have people like that. But what happens is you know what. You put a negative and if you put a negative on your tax return, you're kind of finished. Nobody's going to want to look at you. You're finished.
Speaker 5:But the lower income people let me tell you in 1973, 1974, 1975, the first three years I was in the business a city worker in New union worker would come to us and the mother was taking care of the kids and they would make and I remember the numbers about $13,000 a year and they wanted to buy a home for $75,000. The rate was up to 8.5%. You know they didn't qualify for a loan and it was considered low income. So now what we do is you know, when people came to America, the dream was to buy a home. You know we could even talk about World War II, rent stabilization and all those things. But so what do we do? You got any brothers? You got any brothers. You got any sisters. You got any aunts. You got any uncles mom, dad, grandma, grandpa and when all the family didn't work, was there somebody else, and everybody always found a way.
Speaker 5:But here's another case scenario. I'm going to throw something in there People that they may be low income as far as showing income, but they want to buy, fix and flip, and that's a no income check. If you got the down payment, we're not looking at tax returns, we're looking at experience. We're looking at your credit score, we're looking at experience and we're looking at your assets and then we're going to look at the rent roll will count as the income in the building. So, wow, that's uh, that's some real good information on this. The people that want to flip right, okay, that makes sense.
Speaker 2:Now, is it easier to buy a multi-family house? Is it or like a building? Or is it easier to buy a multifamily house or like a building? Or is it easier to buy a single family?
Speaker 5:Well, you know, I like, I like, I like. You know what we're talking about. You know the real. The most advantageous programs are on a one family. However, a two family gives you more buying power so you could take. What you do is you take the market rent. Let's say we are not even a lot. It's $2,000. $2,000 times 12 months is 24,000. Now the whole 24,000 doesn't get added to your income. There's a vacancy factor in underwriting and that's 25%. So 75% of $24,000, you're almost counting another $20,000 income which may be able to help you borrow an additional $100,000.
Speaker 2:Okay, yeah,000. Okay, yeah, that makes sense. Yeah, yeah, because that's almost like. Well, would it be considered kind of like a collateral?
Speaker 5:It is. It is, it's considered that it's considered additional, it's considered rental income and that's why people, whether they're putting a family member in there or they're buying it for an investment and later on they're going to move out, rent the apartment that they are. But the idea, you know, that we want to do in our pockets is to really, uh, educate and bring a treasure to all the people that are following us on our network, right? So we just want to keep, you know, guys, we just want to keep enhancing. You know what we do with those questions going back, we want to get people involved and connect to you. So we could do more.
Speaker 2:Most definitely, yeah, and we appreciate that. That's the way, that's the idea. Pay it forward, brother. Pay it forward. Your knowledge is gold, man.
Speaker 4:Right, yeah, brother, pay it forward. Your knowledge is gold man. Right, yeah, it's just you've been doing it since 1972 you said yeah right, yeah, that's what he said.
Speaker 1:He said 1972 you started doing this, ben ben I can't.
Speaker 2:I can't hear you breaking up oh, you said you started doing this in 1972.
Speaker 5:I started actually in 72. I was in college and I thinking I was looking for a position and they were telling me Ben, when you get a little older, come back. And then it's just a sweet story. One year later I was in the business. Two years later, the guy that told me to come back, when I was a little older, I bought his real estate office that's great, that's funny, that is awesome man, that is awesome, like you guys are very motivated and you know, uh, I know what it took to put the podcast and all the people in our network right now.
Speaker 5:You know, in addition, we can link up, uh know link in some of our Zooms and there's the pre-conference call. But, you know, whatever you can put together, you know you want to stay consistent. Whether it's once a week, once a month, once a quarter, whatever it is, I'm very happy to share. You know, not only myself but my team. I have a couple of great people, as you know, janice.
Speaker 2:Right.
Speaker 5:And we run a charity. We fed two million meals since the beginning. We're going on three million meals at this time. We used to be, that's great.
Speaker 5:But the charity's called Grant House Unity Corporation and we're located through the boroughs of New York City. Right now, one of our centers is in Brooklyn, new York, on Ploppish Avenue. I want to thank Lewis for coming down. I'm very grateful and honored that he came in and donated to our cause. So a real estate deal. How I got into the pantry business is somebody came and I did a commercial deal for them and they opened the food pantry and they said, ben, can you help me out? And lo and behold, we opened up our own pantry. We made a beautiful real estate deal and we put the money into Feeding the Hungry.
Speaker 2:There you go, nice. It's awesome that you can do that. You got a question.
Speaker 4:No, go ahead.
Speaker 2:So now, when you work, when you help people not say you did so when you did the pantry you guys are a nonprofit right, yes, 501c3. So now is it just as hard or easier for you guys to have to be able to get those loans and such for uh, for whatever non-profit charity work or what have you that you're going to end up doing like? Is it harder to get the loans because of the type of business?
Speaker 5:it is like they're unrelated, because if anybody just opened the pantry, you want to think about grants and sponsors and charity loans. You know the real estate because you know, we were successful on real estate deals.
Speaker 5:We put you know we, uh, you know we wrote off some of our money into the pantry, so it was a write off and what we did, but as far as loans, that's it. You know there's so much to know about. Now. We didn't touch yet on the foreclosures and deposits and auctions, because right now we just sold a property. That was what we call REO. So write it down, folks. What does REO stand for? And maybe that's where you're going to find your next house. Reo stands for real estate owned. Those are bank owned properties. And one thing about bank owned properties they don't want to own them and take care of them and service them and be responsible they want to get rid of them all the liabilities and maintain them and winterize them and insure them and pay the taxes.
Speaker 5:They want them off. They want them off their portfolio yeah it's a headache.
Speaker 1:Banks don't want that off their portfolio.
Speaker 4:Yeah, yeah, it's a headache. Yeah, banks don't want that. They don't want to deal with that.
Speaker 2:So then now I know that they end up dropping the price on the real estate to get. Now are they trying to get back the taxes on the house, or are they just trying to get what is owed on the house when it's a foreclosure?
Speaker 5:It almost doesn't matter what they can get. They take what they can get out of it, but if they want to drop for a quick deal, they'll automatically not automatically in many cases they'll take off 25% of the deal. But if there was, we just had one. There was a fire in it okay. We had another one. There was a flood in it Okay, we had another one. There was a flood, we had another one. The roof was caving in.
Speaker 5:Because if people going to leave, they leave and no one is taking care of the home and they think that's the end of it. So everyone listening again to this podcast foreclosures just don't go away like that, because, guys, what're gonna do? The bank is gonna send the borrower a 1099 form and they're gonna send that to the irs and with your name, if you walked away with 300 grand, you owe the bank. You know what? You may be paying the debt for a long time ahead in your life. Got it Okay, maybe for the rest of your life. But right now, winners make the pace of the pack is the speed of the leaders and that's why I, like I'm very interested in this podcast more information that we could bring to the people. We want to let people know that once we broadcast this, get on the next one. Let a friend know we're not looking to say go to our site, here's some money. Look, there's job opportunities, there's career opportunities. There's full-time, part-time, and it takes very, very special people to do what we do.
Speaker 2:Yeah, well, we got to. I mean, there's a bunch of questions, a lot of things that you know, you know about. That would definitely be helpful, because you know, I'm looking to definitely have you back on another podcast with you know, literally on this particular subject, because I said, you see, I got a million questions, so now I'm going to go back to the next question for me. Oh, is that? So now you're saying that the houses that may have been foreclosed on, or like the one you said that you just had to deal with, that had a fire in it? Um, people with low income that are low income buyers, do they get, and can they get, the loan from that same bank that's putting it up for sale? They?
Speaker 5:can get it, but if they're not pre-approved, so that is going to be a no, okay. But the people with the no, even though it's a no, there's a lot of answers on the test we take they're no and yes, it's no and it's yes. Take the no and yes, it's no and it's yes. If you change to pre-qualify for the loan, then you could take the no and you could qualify by hitting the cosigner, fixing your ratios or dropping having all cash. Then you don't have to worry or leverage as you bring a partner on and they'll walk you through the deal.
Speaker 2:Okay, Okay Now does that work the same for, let's say, if you have an LLC?
Speaker 5:An LLC yeah.
Speaker 2:Yeah.
Speaker 5:Limited liability company is an LLC. It's to eliminate liability that they don't personally go after you, because under the United States of America and the law of corporation and LLCs, you cannot break the corporate veil. However, you're not buying a home for your primary residence under an LLC. It means like you have a business and then you can, even though you have the low income, you could still qualify under those loans as an investment property with a higher down payment. So the answer is yes, now that you can qualify for an investment property with a higher down payment with no income, as long as the rents are going to support what we're looking at here. So it's important that we start learning about numbers. So let me give you an example. You got a two family house. It's $1,500 rent. It's a one, two bedroom, whatever it is, and it's $1,500 for the two families. That means $3,000 coming in. Taxes are $300. Insurance is $200. The pity what we call pity, we'll address this at another time that's $500. So $2,500 is got to support the mortgage. So that means $2,500,. You know, maybe you're going to get a loan for $300,000. But if you were looking for $500,000, the rents are not going to pay that 500 back and that's a denial of rejection. It doesn't qualify. So look, learning the numbers and how to do it.
Speaker 5:People, really I got to tell you I speak to people all day long. I got a fellow in Long Island just bought a house for 680. He's dropping 140 now. He's going under a certain program. There are new programs. Hold on one second, guys. You hear me. I'm getting thumbs up. Do you want to send some to the podcast?
Speaker 3:Hi, we were tempted to call in and do a mortgage question for you to hear what's going on. Well, there are certain times when you're looking to get a loan on a property and you have tenants, and if you know how some tenants can be just like no, not letting anybody in, Some tenants can be just like no, not letting anybody in.
Speaker 3:So what we can do, we found out and what we're going to do if they still refuse. After we get the approval, we can have a forced inspection with a sheriff, which will take about one or two days to do, which means they have to let you in no matter what. So that is something new that I learned today. Oh my God.
Speaker 5:You're going all the way. You're really pressing buttons Because the underwriter look at the underwriter when she looked up You're talking to the underwriter.
Speaker 3:We're saying overtime to actually try to close the deal.
Speaker 2:Okay, that is awesome, I got to go a deal. Okay, nice, nice. Okay, that is awesome, I got to go back upstairs. Thank you, good job, all right guys, thank you for sharing.
Speaker 1:Thanks a lot, that's awesome.
Speaker 2:That is awesome.
Speaker 5:That's Denise. She's such a wonderful person Anyone can. She's the founder of one of the founders, of her and I, of Grand House Unity and she set up a contract with City Harvest, new York City Food Bank Met Council. You know the editorials are out, guys, and you know we're just doing our best. We want to keep the work we're doing. So every real estate deal we kind of do we can contribute, you know, to our charity.
Speaker 2:Yeah, no, you guys are awesome, brother, you guys do good work, and I mean, you know, I said it to you last time we spoke to you you know, we appreciate you, guys, you guys are awesome.
Speaker 4:Sounds like a great class of people who do that.
Speaker 5:I appreciate being on this podcast and you know we want to build it up, we want to keep educating people, because real estate, you know, again, it's the American dream, it's the pride of home ownership, it allows tax deductions, it has a lot of economics. I mean, people are working at a home right now and there is the program that's called the 203K, lewis the 203K and that's where you buy the home, the acquisition. You buy it I'm just using numbers for you $250,000. But the house needed a lot of work. But the house needed a lot of work. And then, with the government and the bank, they bring a project manager in and say, okay, we're going to put another 75 000 in work.
Speaker 1:This is like a fixer-upper, right two or three like a fixer-upper basically that's a great program yeah, that's awesome.
Speaker 4:That's good to know, for sure.
Speaker 2:Awesome. Yeah, yeah, I mean, that makes sense. You know, when you listen and hear somebody who knows what they're talking about Right.
Speaker 4:that's what I was saying earlier.
Speaker 2:You know? Yeah, like you said, it sounds better than when you sit at the bank or try to sit down and figure it out yourself. Yeah, it's like you feel like you're overwhelmed, so it throws you off. You know what I mean.
Speaker 1:So yeah, no, no, no. You laid out very clearly.
Speaker 4:It's learned a lot today, Ben Well, thank you so much for being on with us. We appreciate it. I'm going to have to have you back. We'll definitely have you back, you know maybe we'll you know, maybe just periodically. Yeah.
Speaker 5:We'll have you, yeah, exactly, definitely, yep, and give us your business name again so people can hear it 00.com, and our direct lending company is called East Coast Capital Corp and our charity is called Grant House.
Speaker 2:Unity, awesome, awesome. So people can reach out to you and you know. If anybody has any more questions, you know. Feel free to call them up and get, hopefully, anything that we didn't ask. I didn't ask, sorry, I kind of like dominated.
Speaker 4:That's all right, no problem.
Speaker 2:You know, but I appreciate you coming on here, Ben. Thank you guys, and yeah, you're awesome. Don't hang up yet, ben. We'll call you back in a second. We'll say bye to our listeners but stay on the line, so don't hang up.
Speaker 5:Stay on the line, everyone, thank you.
Speaker 2:And guys, so gentlemen, another awesome episode. It was fantabulous because we're just freaking awesome. But whatever Appreciate it, so thank you to our listeners and you already heard, so thank you, have a good week, love, peace and hair grease.
Speaker 4:Live long and prosper and go vegan Hello.
Speaker 1:Live long and prosper and go vegan hello.