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Finance BROs Network (FBN)
Economic Empowerment & Self Development Strategies For All
Finance BROs Network (FBN)
S2 E3 “Home Sweet Home" - Mastering the Financial and Emotional Art of Transforming a House into a Home
Discover the true essence of turning a house into a home with your hosts, Anton Leftwich and Michel Dupoux. We'll guide you through the complexities of home ownership structures, from the financial to the emotional, ensuring you walk away with the knowledge to create a space that is more than just walls and a roof. With a home-flipping background, your neighborhood Finance Bros are here to bridge the gap between personal finance and the emotional journey of homeownership, providing you with practical advice to turn any dwelling into your dream sanctuary.
Embark on a journey through the financial landscape of owning a home as we delve into the perks of land ownership with manufactured homes and the intricacies of mobile home registrations. We highlight the undeniable advantage of building equity and how a credit score can dramatically enhance your loan options. Understanding what loan officers look for is crucial, and we lay it all out, simplifying the path to making smart ownership decisions that bolster your financial future.
Wrapping up the episode, we explore the 'CSI' of home buying: Credit, Savings, and Income. Learn about the power of a strong credit score, the importance of an average down payment, and the role of a stable income in securing your place in the real estate market. We also shine a light on alternative financing options like the FHA loan and NACA program, democratizing the journey towards homeownership. Don't forget to engage with us on Finance Bros Network across all social media platforms for more insights, and join us next time for another enlightening discussion.
Learn more about the FBN initiative and get access to all social media platforms at https://linktr.ee/fbnlinks
First and foremost we want to be clear that what we are sharing with you are strategies and concepts that can be implemented by individuals who understand the logistics of how these techniques work. We are not giving you specific tax or financial advice. We are simply giving you three key elements of how to approach such platforms as far as the literal, the mental and spiritual format needed to be successful with your aspirations.
Speaker 3:Hello world, you're tuning in to FBN and this is another episode of Finance Bros Network. I am the one half of Finance Bros, Anton Lefwich.
Speaker 4:And this is Mike DePote, the other half and we are coming to you, live with Finance for Everyone.
Speaker 2:There you go man Finance for everyday people.
Speaker 4:Finance for everyday people, finance for Everyone and our slogan Finance for the Unknown. We are honored to be here and to be able to serve diverse communities.
Speaker 3:Yes, sir, getting it out to the people, mike, yep, yep, yep. Yeah, man, I'm excited, brother. We got some new material today. We have a Formula Season 2 so far Great. You know what I'm saying? We're going to jump right into it because, like we said, the people have spoken. Okay, all right, we're going to keep these episodes 25 minutes 25, 30 minutes. We're going to keep you there.
Speaker 4:We're going to try to keep you there for 25 minutes so you can have a 30 minute, 30 minute episode when the song starts. Yes, you know on your way to work. You know what I'm saying.
Speaker 3:Got a little something to vibe to and go in a little better than you came in, hopefully.
Speaker 4:Yep, yep.
Speaker 3:So today, mike, you know we did talk about we were going to be, we were going to go a little dive deeper into getting the house home. You know going into, you know having the house versus making a home Right. You did mention there was a big difference right, there is a difference.
Speaker 4:There is a difference, all right, so here we go. You can make a home, you can make a shelter or a home if it's the right space.
Speaker 3:We said we see that on the side of 580. There you go, we're in San Francisco.
Speaker 4:There's a lot of people who make little. You know shelters or their little constructions, they make them a home and you know that's tough.
Speaker 3:I mean, we're not sure man, we're definitely not poking at that or anything like that, absolutely. God bless some of my seen windows and some of them Right.
Speaker 4:Hey, there you go, Like they're trying to make it a home.
Speaker 4:They're trying to make it a home. But that's where we fall in, you know, to have that understanding between the house and the home and we're going to keep this very, very basic. And you know, we know a lot of our followers out there and a lot of our demographic that we're trying to target may not even be thinking about it Right, and this might help them understand. And obviously, we're going to have the connection with how it works with your finance, because you know we're looking at the way we get income, the way we have finance. How would we get a house or how would we get that structure that we're going to make a home and that dives into? I love how you broke this down, by the way.
Speaker 3:This is fun. It makes it fun.
Speaker 4:We've got to make it fun, always, always, always. And you know we want it to keep it simple, Absolutely. We want to make it simple, we want to keep it simple. So this is really the introduction and this is from you organizing your finance, putting it together. We're just going to break it down. If you're thinking about buying a house or you're thinking about moving into something that you're going to call a home, this is the steps that you're going to need to follow and we're going to keep it simple, very systematic, yeah, very simple and easy for you to follow. And then we'll get technical in some future episodes about how to get a home with credit and all that, but let's get the fundamentals out of the way. Absolutely, absolutely.
Speaker 4:So, just so you know, there are several types of structures that you can make a home, just in case you didn't know. Obviously, there's the house, right. We have two bedrooms, three bedrooms, mansions, house. That's a house, right. So if you're working hard, you want to get into a house. You drive by, you see these homes or houses. That's a structured house that you can get into and that's the most popular. Everybody either is living in a two-one a two-one is considered a two-bedroom-one bath and then you have a three-two, which is the most popular, that's a three-bedroom-two bath, you know, because, hey, I have two girls. They, you know, I have a two-one. Now they're like you need to get a three-two.
Speaker 2:We need another bathroom up in this place. They need their own space.
Speaker 4:They need their own space. So that's why it's the most popular. Usually, most homes, the average home or the average house is a three-bedroom-two bath. That's what you strive for, that's what most people look for. So, just if you're thinking about that, you have a family. You know husband, wife, kids. You know three babies. Sometimes you have two kids and they each have a bedroom. Or sometimes you have one child and you have a guest bedroom that could turn into an office. So most people are looking at that. Looking at that. Let's say, between 800 and 1,000 square feet, that's like small. The average would be about 1200 square feet, 1500 square feet, really Okay.
Speaker 4:Yeah, so that's a decent size house of 1500 square feet. That's a three bedroom, two bath. The two ones tend to be the 800 to 1000 square feet on size Okay. Okay, so that's what we're looking at and just for background reference, I flip homes. I still have a construction company that working homes. So and I've dealt with real estate agents, I've dealt with buying and selling homes. I've did scores of that, so I do have a little bit knowledge on this process.
Speaker 4:So, just going back again to the quick and simple thing, so you have the house, then you have something called condos, aka condominiums. So condos or condominiums are usually in a structure, maybe two or three floors, that it's like an apartment, but you are purchasing that space.
Speaker 4:And that space is yours. Sometimes you have to pay condominium fees. If a developer develops the condo, they would have, let's say, one or two or three or four structures on top of each other and each unit is a condo that you purchase and everything inside the unit that you would do, it would be your responsibility, but then you would have association fees or ground fees.
Speaker 2:Garnage yeah.
Speaker 4:All that and then you pay an additional fee. You're not paying a mortgage, you're not paying, I'm sorry, you're not paying a rent, but you're just paying the fees to keep the grounds or to take care of anything outside of those units that might go wrong, but inside you could tear down walls. You could do this. You could do that for the most part. Sometimes they ask for you to let them know because you are dealing with other units on top of each other. So there might be certain things you can and cannot do.
Speaker 3:And that has HOA fees also.
Speaker 4:And that has HOA fees. So that's all.
Speaker 3:HOA. That determines that, and that's what you have to know. If I feel, okay, yeah.
Speaker 4:So the condo you're buying that unit, that unit is yours, you can buy and sell it. So that's like the second thing. But you have people on top of you, you have people next to you, but usually condo and mini-ums tend to be very nice units Like really nice to. A lot of them are two bedrooms, two baths, which is pretty cool. But that would be a next tier of a home structure ownership that you would have, so a structure that you would own that you can call a home.
Speaker 3:Right, and speaking of renting, I noticed you didn't mention rent. Well, you're getting there, I'm getting there, I'm getting there.
Speaker 4:So, there's something called a co-op. A co-op is usually you'll find in cities, in municipal sorry I missed the word municipal cities, okay when they have these big structures of buildings and they have co-ops in them, which are apartments that you would rent but you're not renting anymore. You're buying into that space. Now you have a share of a co-op, which falls from the word corporate. So now you have a piece of share which is whatever your space is, is the value of that space. So you own that, okay, and that can be bought and sold too. Okay, the last two, I'm going to mention?
Speaker 3:What are you?
Speaker 4:up for. Yeah, the last thing I'm going to mention is manufactured homes that are owned on land or rented. So the ones that are owned. You own the land and you have a manufactured home. Pretty much it's a house in a box, it's all put together. You own the land, you put it right on there. Now you got to make sure you pay taxes on the land and everything, but you own the house or you mortgage it. You can mortgage your manufacturer home.
Speaker 4:Now, the lower tier to that is you have a manufactured home and it's on a rented land. So somebody owns the land and they're renting you the space and a lot of times they would have connection for electrical, sewage and water and that's what you would utilize and that would be, I would say, as far as the structure is concerned, that's not going to move. That would be the bottom of the totem pole, but you still at least own the structure. And the last thing is a mobile home and, believe it or not, people do live in mobile home, but that's considered more like a mobile motor vehicle. You register it at motor vehicle but you still own it. You could still sell it. But to your point, I didn't mention renting.
Speaker 2:Yeah, yeah, you want to know why why.
Speaker 4:Because renting you're paying somebody. You're giving them to your money. All that money is flying away. All those other structures that I mentioned. You own it. You can sell it to somebody, it could gain value, so your money is not being thrown away. If you're paying a mortgage, if you have to purchase with a mortgage or you paid it out right now, you could sell it back and you're not losing that money like when you're renting. Wow. So yes, you can rent a place and make it a home, but it's not a house, it's not a structure that you own, it's not something that has value. Okay, okay.
Speaker 3:You're not building equity Right.
Speaker 4:Nothing.
Speaker 3:You're building something, helping someone else build their equity.
Speaker 4:Exactly so. You're just making money off of that structure, right, right. And that's where.
Speaker 3:And we don't. We want to encourage people to just be informed, right. I mean, everybody has to start somewhere. We know that a lot of times, before we own, we rent first. But just having this insight and having an understanding of what is going on behind the scenes, right, and that's what's you know us to to move the needle and be encouraged to make steps, like we always talk about having a plan in a lot of our other episodes and having a date that we wanna do something by whether it's setting goals or doing the FBN financial planner so that we can get to these power positions to make these decisions, to move forward and then actually have that ownership. Because if we don't know what it looks like, if there's no target, how do you hit it?
Speaker 4:Exactly exactly how do you hit it. So, at the end of the day, we want our followers and the people that are listening to us. Finance Pros Network is just trying to get you to get started in this process, and now you have sort of a fundamental understanding of what you're looking for.
Speaker 4:If you're looking for a house, you're looking for a condo, you're looking for a co-op. It depends where you are, because you could be living in a municipal city. That that's what they offer. Manufacture Home out in California, where we're at, they do offer a lot of Manufacture Home and I personally I just learned the difference between a Manufacture Home on a land versus on a rented land and all these different type of structures that you could purchase. They are programs out there for you to get mortgages on them in order to purchase them, because, for the most part, a lot of people do not have that large amount of finance, especially the demographics we're trying to reach out to to go ahead and purchase outright, because we're talking about hundreds of thousands of dollars here and you want to be able to save up to get that mortgage, to get those certain type of structures that you're willing to move into, to make it a home. Got it?
Speaker 3:got it? Yeah, absolutely. And speaking of that, so what those steps, what are people looking for, need to be aware of? What are these loan officers and things like that looking for from us when we are going in to buy a house? And I'm glad you said that- I'm gonna make it real easy.
Speaker 4:ladies and gentlemen, yes, please. Real, real easy.
Speaker 1:You know our finance boroughs network.
Speaker 4:Yeah, we make it easy, and a brother loves three.
Speaker 2:You know everything I do. Three we love everything we do.
Speaker 3:We love, everything we do, we love everything we do, three so this.
Speaker 2:You gonna hit them with acronym I'm gonna hit them with an acronym at the end.
Speaker 4:So there's three things and I'm gonna keep, and this is as simple as it is. We tend to complicate stuff. Yes, we do. We complicate stuff, but if you are by yourself with yourself and what we're giving you in the background, with the literal, the spiritual and the mental, you know you can make this happen. So here are the three things let's get it. Number one credit Got it. Keep your credit at 750 or better, or get your credit to 750 or better. This is not to say you won't be able to get the house with a lower credit. We'll give you some information.
Speaker 3:But you'll have far more control.
Speaker 4:You have far more control and far more access to what you want. So you're out your options open up at this point, yeah and we've promised that we were gonna have a credit segment and we're looking for the right people for us, the right people for our Democrats, cause there's a lot of hoopla out there there's a lot of If they're not gonna bring it straight, bring it to the goal and make the value.
Speaker 4:we're not gonna bring it to the goal Right. Everybody we spoke to about credit. They're not understanding where we need to understand the credit for our Democrats' graphics to really make a difference in their credit.
Speaker 3:Not that they're not good. Everybody out there trying to do some positive, we respect that, we encourage that. But if it doesn't align with what we're doing, then we wanna keep looking.
Speaker 4:But what you can do even from day one. And if you go into college, people are offering you credit card. Manage that, manage the credit, manage, build the muscle early. Build the muscle early and watch like. Credit is more important. I even mentioned it as the first one, cause it's even more important than having money. Yes, believe it or not, if you have great credit, you might not even need money. That's another subject for another day. But real talk, united States, our system, our economy is solely based on credit. Your credit is messed up. You're done, you're done. And when I say you're done, everything becomes a lot harder. So spend the time, spend the money, spend the education, find out how to keep your credit at good standing, cause that's number one. Number two is savings. Got it, and we've already introduced you to the. He talked about building the muscle saving, yes, yes.
Speaker 4:So savings is gonna be really, really important when it comes time to purchase that structure. Okay, okay, because you have to have some skin in the game for them to give you anything.
Speaker 2:And that's real talk.
Speaker 4:And they are programmed again. They are stuff out there, but at the end of the day, you're still gonna have to have some money with you, some savings, to get something. Yeah, trust me, there's not.
Speaker 3:Gotta put something down, gotta put something on it.
Speaker 4:There are programs that says zero down and so on, but you still gotta pay for some stuff.
Speaker 3:Yeah definitely so. Money at closing, closing costs or whatever it might be. Something is gonna have to be paid for.
Speaker 4:So just be mindful of that. And the last thing, plain and simple income. Yes, those three things. You manage Income. If you're at your job, make sure you keep the job. You can't get a house if you're doing a nine to five and they can't verify your employment, you ain't getting the house.
Speaker 3:And bottom line at the end of the day that tells them that you have the sufficient access to pay for it.
Speaker 1:Right.
Speaker 3:That tells them that you are gonna be able to pay for this?
Speaker 4:You're trying to get a mortgage to purchase Again. A lot of people don't have that money up front, so how are you gonna continue paying for it? Yeah, you got great credit. You did good on your savings. Okay, how are you gonna pay for it?
Speaker 3:Yeah, this tells us what you done. Who wouldn't know?
Speaker 2:what you bought from it. You're right so those three things.
Speaker 4:Makes sense Comes up to CSI and most people that think about.
Speaker 2:CSI and criminal scene investigators.
Speaker 4:Crime scene investigators, but we're gonna make it our own. We're gonna say for our wealthiness, that this is gonna be our CSI for our wealthiness to get a home. I like that, I love it, brother. That's what we're thinking about. And again, to make it easy for the people that are listening to us out here, to get a home, make sure your credit stays at around 700 to 750. Make sure you're doing the saving. The average down on a home, without all the bells and whistles, is about 10%.
Speaker 2:That's what most banks act for. Yeah, okay, just about 10%.
Speaker 4:It's about 10%, Got it got it and then you have the income. You have to have the income for whatever house you have. So you can be making $20,000 a year. But if you have the right income for that house so let's say you're getting a house for $100,000 or a co-op or a condo, you're qualified. But if you're making $20,000, there's no way you're getting a $600,000, $700,000 house. That's not gonna happen because your income won't be able to pay that mortgage, even if you put 10% down.
Speaker 2:So you have the credit.
Speaker 4:You have the savings, but they're not gonna give you a mortgage if you're making $20,000 a year.
Speaker 3:That's not gonna happen. You need that income. That's right, right, right. Whether you're an entrepreneur, you're working at a nine to five either way, just to have that track record, whether that's 1099s or W-2s, to show these financial institutions that what we have in place or what we're doing, we're creating an income, we're creating a process where we're not gonna be able to pay that whatever that note is every month that we agree to for the mortgage. Right, right Got it, so credit savings income Come.
Speaker 4:CSI people CSI CSI easy as pie. Pie, there you go. Csi, okay, good job. But there are some stuff out there I know you were talking about it, anton, like to qualify. This is just general information on the low end of things. Yeah yeah, the FHA, yes, yes yeah, right, right, there's the FHA.
Speaker 3:That seems to be a popular option now Right, right, right.
Speaker 4:So you have the FHA loan, you need a minimum credit of 580. So that's way different from the 700, 720 I'm talking about. But the 580, again, most of the time the 580 are people who are just starting to get credit, and we do have a lot of foreigners that come into our country and they just get the Social Security number and if they are establishing credit you're probably starting at a 580. So that's why that's interesting.
Speaker 3:I never knew that.
Speaker 2:Yeah, so that's why the government started at a 580.
Speaker 4:It's not that you have bad credit. You may not have any credit, you're just starting Right, but no credit is bad credit. No credit is bad credit In this country, right, right. So 580 with an FHA loan. As of today, if you have a 580, you put 3.5% down. So what does that mean? If you have a $100,000 loan for a house to purchase that's 3,500. That's 3,500 you're putting down. Got it, which is doable. So they make it. So it's doable, got it. Okay, what's the next part? And let's say you don't have the 580 and you have a 500 again, maybe you did some things. Things are happening. They still giving you the opportunity if you have 10% down and you can get that FHA loan. Ah, okay, okay, okay.
Speaker 3:And it's a little maneuverable. Yeah yeah, within reason.
Speaker 4:But everybody needs to understand. Fha is not the loan you're getting. Fha is the government ensuring the bank. So most bank, they're looking for 620. Yeah, fha say 580, 500, but they're looking for 620. So think about that, they're looking for 620. Okay, got it, that's perfect, got it. And the last thing I wanna mention is the NACA program. That's another program. Again, this is just information we're giving you so you guys can kinda obtain and see how you can get stuff done. It's the neighborhood assistant.
Speaker 3:Yeah, giving you a lane to go Right, right.
Speaker 4:The neighborhood assistant corporate of America. They are a nonprofit. You have to go through a class, you have to do some stuff, but then they help you with no money down, qualify you and then they get you the loan to buy the house. I like it.
Speaker 3:All right, good deal. So that's just information, yeah, yeah, yeah. And you know this is powerful, mike, because, just like we say, giving you the fundamentals right now, giving you encouragement to move forward and do your own homework, if you need to do your own homework further into what we've given you to go with so far and then figure out how it applies to your situation, so you can go in with a informed mind.
Speaker 1:Absolutely, absolutely I love it.
Speaker 3:So we know we gotta break down the the literal, mental and the spiritual.
Speaker 4:So okay, the literal, let's just take it here Protecting and maintaining credit at seven to 750, make sure you have enough savings to get that structure, to get that home. That's literal. Yep, this is not complicated, that's the literal. This is what has to be done. This is what has to be done.
Speaker 3:What you got for the mental, All right so the mental here is use and get credit wisely. Never cosign for no one. Yep, take your savings. That could be a whole another topic. Take your savings, don't let your emotions spend your money. Man, I love that, mm Whoo yeah For a little fellow chill on that one. And stick to your goals. That's it, man, I just love that.
Speaker 4:Yeah, don't let your emotions spend your money, because that's what happened. Ooh, mike, can we do two shirts this?
Speaker 3:episode yeah.
Speaker 4:You like that right.
Speaker 3:Don't let your emotions spend your money.
Speaker 4:That's a good one, isn't it?
Speaker 3:I'm about to drop this mic right now.
Speaker 4:In your honor.
Speaker 3:Don't make me do that, man Don't make me drop the mic for you, man.
Speaker 4:Mentally, that's what we allow our emotions. So this is where we need to be mentally strong. This is where we have a lot of problems in our demographic. I can taste that one Ooh man this is where so don't let your emotions spend your money Like seriously, ladies and gentlemen, that's good.
Speaker 2:That's real talk bro. Real talk bro.
Speaker 4:Yeah, you're working hard, You're saving your money. The focus is to get that structure to get that home. Keep that focus. I love it, man. All right, give them the spiritual brother, the spiritual, believe that you are going to get that house, believe that you are going to own that home. Yes, bring joy to that home so the home can bring joy to you.
Speaker 3:Man.
Speaker 2:You know what?
Speaker 3:I'm not even going to expand on that, because I really think we could just go right into the t-shirt. After the second t-shirt, right after that, the second t-shirt.
Speaker 4:Because he wants the emotional spend, that he wants that first. But the t-shirt that we think it for this episode is CSI is the path to wealthy and owning homes.
Speaker 1:I love it.
Speaker 3:And give them the CSI one more time.
Speaker 1:CSI credit saving income Income is the path to a wealthy and which is our people.
Speaker 3:Our wealthy and Our wealthy and owning a home. I love it, mike, I love it man. This is good, this is great. I'm inspired.
Speaker 2:And I knew what was coming.
Speaker 4:Yeah.
Speaker 3:OK, so I love it. So next time I think we're going to be talking about on our next episode- Well, the next episode is the end of month, that's next week. Oh, that's right, we got the wrap up. We got the wrap up.
Speaker 4:It's been a whole month already. Man, it's been a month and we, hey, we got the first two out of the way and then this is our third one for season two. Yeah, so we're going to wrap it up on our next episode.
Speaker 3:I love it man, I love it. Man, Mike, this is just fun. I just want you to know, man, how much I appreciate you. That's what we do, brother. Yeah, man, so look everybody. If you at work right now, if you just got to work, go make it a great day. You know, FBN, Finance Bros Network, check us out on all your social media podcast platforms Apple Podcasts, iHeartRadio, Google Podcasts. You guys know, the drill Might be up down, left, right, whatever social media platform you might be on, but don't forget to check us out, Like, share and subscribe and, as usual, I appreciate you.
Speaker 3:And we'll see you at the bank. Peace out, take care world.
Speaker 2:Music, music, music, music Music.