Holistic Survival
Welcome! If this is your first time visiting Jason Hartman's website, please read this page to learn more about what we do here. You may also be interested in receiving updates from our podcast via RSS or via email if you prefer. If you have any questions about financial survival feel free to contact us anytime! Thanks!

Direct Investing Vs Group Investing With Jim Cramer

Bookmark and Share

Jason looks at being a direct investor versus a group investor. He discusses the benefits fo direct investing and goes into the issues of group investing especially when it’s other people’s deals, businesses, partnerships, LLC’s, REIT’s, or TICS. He plays a chat with Jim Cramer of Mad Money and The Street.com.

Jason Hartman 0:10
Hey, this is Jason Hartman, thank you so much for joining me. Do you know what day it is? Yes, it is flashback Friday, or you hear the best of the creating wealth show and you hear some good prior episodes, some good review. Remember, we’ve got almost 500 episodes out. And you know what? iTunes doesn’t even hold them all if you’re an iTunes listener, if you are listening on Stitcher thank you for joining us. So we want to bring you some good review stuff now. What’s interesting about flashback Friday it’s a little scary for me I gotta I gotta be very very candid with you on that. Because you the listener, you get the chance to hold my feet to the fire. Did I make any predictions? Was I right? Was I wrong? I’ve been I’ve been right about a lot of things, but I’ve been wrong about a few. But it’s flashback Friday and we will give you the uncensored Best of the creating wealth show with a prior episode. So let’s dive in. Here we go. Remember, this is not current, it’s flashback Friday.

Introduction Speaker 1:20
Welcome to the creating wealth show with Jason Hartman. You’re about to learn a new slant on investing some exciting techniques and fresh new approaches to the world’s most historically proven asset class that will enable you to create more wealth and freedom than you ever thought possible. Jason is a genuine self made multi millionaire who’s actually been there and done it. He’s a successful investor, lender, developer and entrepreneur who’s owned properties in 11 states had hundreds of tenants and been involved in thousands of real estate transactions. This program will help you follow in Jason’s footsteps on the road to your financial industry. In day, you really can do it on Now, here’s your host, Jason Hartman with the complete solution for real estate investors.

Jason Hartman 2:10
glad you joined us today on this historic day. Why is it historic day because when I turned on television today, we started making my coffee and my cereal. And you know, I watch about maybe 10 minutes of television per day, I almost never watch TV. And there it was all the people on CNN, the communist News Network, talking about the historic new high and the Dow, which folks I’m gonna debunk that is not true. They were telling a complete falsehood, as a dribbled on and on about it for, I don’t know, 10 minutes, it was beyond ridiculous. So I’ll debunk that for you in just a moment with some real facts and real numbers. And we’ll examine the real truth of it. But I wanted to tell you that I have Sarah, our investment counselor here with me. You’ve heard her on prior episodes. And we want to talk about a few things, not the least of which is our upcoming Memphis creating wealth boot camp and property tour, a change in the podcast system and some clients and one of our markets. Sara, welcome. How are you?

Sara 3:13
Good. Thanks for having me back.

Jason Hartman 3:15
Good. Well, hey, glad to have you back. Last time you were on was our episode number 302, just two episodes ago with Steve Forbes, as he talked about the freedom Manifesto. So he was a great guest without a lot of great feedback on that on that episode. But folks, go back to some of the old shows. If you’re a newer listener, make sure you listen to the entire back catalogue as it’s called, because we’ve got Peter Schiff, pat buchanan. We’ve now had two presidential candidates on the show, pat buchanan and Steve Forbes. And we’ve had G. Edward Griffin on a couple of times. We’ve just got so many great guests. Be sure you’re listening to those old episodes as well. But Sarah, first Gosh, where shall we start today? Do you want me to go over this dow thing you want to talk about clients and some of the times how they get in their own way or want to talk about markets. I’ll let you take Lead here.

Sara 4:00
Yeah, well, I was actually just listening to podcast 303 with Carl Richards. And I had a client email me on that this morning as well asking, you know, which market which market is Jason talking about? I thought, you know, I would just jump on and we and we can kind of hash it out a little bit. But it was interesting because my perspective changed a little bit after listening to Carl Richards, right. And how, you know, we can be our own worst enemy sometimes. And so, you know, maybe we should give them a little bit of the listeners a little bit of background here on this market. And if the market is St. Louis,

Jason Hartman 4:34
there you go. Yeah, I know you were all waiting with bated breath. I didn’t want to say the market last time, but it is St. Louis. And we’ve got some very happy clients in St. Louis. But we’ve had a few little incidents. We’ve certainly had delays in construction. And we’ve talked about that in prior episodes. And when I say construction, I mean rehab of the properties. Remember, you’re listening to flashback Friday. New episodes are published every Monday and Wednesday. But Sarah, you are in this every day you’re talking to clients every single day about their experiences. So What say you? Well,

Sara 5:12
I mean, we had a few red flags about, you know, the delays with construction. And I’ve had a couple complaints with property management, which we have, you know, switch to another property manager, and I’m also researching a couple others. So, you know, we have a backup plan, but the most recent red flag was from a client who, you know, also attended our meet the Masters event, and she went out and get a walkthrough. She did her inspection, you know,

Jason Hartman 5:36
which is honestly, somewhat rare that a client actually visits the property, or at least before they buy it, and we always recommend it, folks, we, we recommend that you do that. But the fact is, very few people actually do. And by the way, Sarah, I’d love to get your estimate on this. I’m going to estimate that’s maybe three or 4% of the clients go to the property.

Sara 5:57
Yeah, I mean, I think that number is increasing, but I I would say, you know, less than 5%. That’s

Jason Hartman 6:03
a pretty small number. And some people go after they buy too. And yeah, you know, if you if you’re a new listener listening to this show, you might think, oh, gosh, these people are nuts. What are they talking about? I would never buy a property without seeing it, folks. I purchased a lot of properties without seeing them. I’ve still never seen them. I’ve owned them for years, I’ve had tenants in there I’ve never met never spoken to, and I’m making money. So again, like I always say geography is less meaningful than it’s ever been in human history. It’s still meaningful. It’s just less meaningful than ever before in human history, with the tools we’ve gotten nowadays, the online tools, and so forth and the network that my company offers. And you can find out more about that by listening to the old episodes and reading the blog at Jason Hartman, calm but go ahead. Okay. You know, it’s folks, I gotta tell you, I have a big challenge here in doing this show. It’s really rather difficult because I’ve got to speak to a brand new listener that might be listening to this episode for the first time. That’s a listener that I obviously as the show’s host, I want to get your attention, I want you to dive in and listen to the prior 303 episodes, and understand our very unique and, frankly, to pat myself on the back and our whole team on the back. highly acclaimed investment philosophy. Just read the reviews on iTunes. I mean, I was reading them last night, one of our clients said, you got to read this review. And I thought, Oh, God, should I be worried. So I got out of bed because I checked my email on my iPhone. And I and I read the review. And it wasn’t that bad. They just said, Oh, Jason’s a conservative hack, which is better than a liberal hack, but he’s still a hack. I read your comment there. Yeah.

Sara 7:41
Does it say who that was from?

Jason Hartman 7:42
It was from Gloria Kramer. Hi, Gloria. And I just got to let you know, I’m not a conservative hack. I’m a libertarian hack. there’s a there’s a difference. Okay, but anyway, let’s

Sara 7:53
Well, let’s let’s let’s move on from this tangent.

Sara 7:57
So back to the client and her walk through the interaction. And so she called me with with some real concerns on on this inspection and I’m pretty quick to to defend our clients and to jump in and help them resolve issues and so forth. And so,

Jason Hartman 8:12
you know, I gotta mention something on that and at the risk of another tangent, but you know, we are we are we are not on the side of our vendors most of the time, we we ride them pretty hard. I mean, it’s like the customer is number one. And we will get on that. I mean, listen, Sarah, you’ve been copied on some of these emails that get a little ridiculous, or I will just call them on the carpet if they are not doing their job. And I’ll tell them, Look, we’re going to yank our business you’re probably making a million dollars a year or more from our referrals. Do you want to lose our account? I use that leverage. And I mean, that’s what our clients that’s the benefit they get. That’s what we bring them as we bring them that leverage of our bulk buying power, the same way Walmart Frankly, oh, risk of another tangent warning here. The same way. The same way Walmart has been criticized for for beating up its vendors and and making them take lower prices and make better products and take returns. Because you know, when you return something at a retail store most of the time, from what I understand, the store doesn’t take the hit. It’s the vendor that the manufacturer that takes the hit. So you return a pair of shoes to Nordstrom, Nordstrom hasn’t taken the hit, they’re sending those shoes back to Ferragamo or whoever made them and that’s who’s taking the loss there. But I remember I heard the CEO of Walmart on CNBC once in an interview, saying you know, they said look at how do you respond to this criticism that you just beat up your vendors that you that Walmart is like this impossible to deal with company and he says, look, we are the agent for the customer. We want to bring our customers the best products at the lowest possible prices. And that’s how I feel I’m the agent for the customer. That’s what my company is. Well,

Sara 10:14
let me just interject here with my own tangent. And, you know, tell everybody what makes my job hard now that they’ve heard what makes her job hard, I’m dealing with both the client which like I said, I tend to be on the side of the client, but I’m also working with these local market specialists every day. And I’ve seen some of the incredible deals that they’ve provided. I see how hard they’re working, you know, and they’ve done some great things for us. So yes, we do call them out. But, you know, it’s kind of case by case and so, you know, we have to be careful not to step on on shoes and not to step on shoes,

Jason Hartman 10:47
step on toes. Well,

Sara 10:50
is that an edit?

Jason Hartman 10:51
No, it’s not an edit. let’s just, let’s just be real here. Many times shoes have toes in them. So I think people get the idea.

Sara 10:59
So, so Anyways, you know, sometimes I’m kind of stuck in the middle. And I have to, you know, point out the good and bad for both the client and the local market specialist. And so, in this case, I’m concerned that I may have jumped the gun. And you know, we’re not we haven’t totally gotten through this one issue. So I’m not sure you know how it’ll work out. But what I found out is that, you know, we had an, the client hadn’t given the market specialist, a chance to go through the inspection, report with them, and rectify, you know, the issues that came up. So that’s where we’re at now, we’re going to go through that they’re going through that inspection report. Most of the time, what I advise the client to do is to give them the chance to fix the problems. If it’s too big of an issue and they’re not going to agree to fix that problem, then you know, they have the right to back out of the deal.

Jason Hartman 11:48
So nothing, nothing lost, okay. But the important thing is here, as a reminder, and I know at the risk of repeating myself, and that is this is part of the embracing the fragmentation. Folks, that’s what you got to do. Because all of these little bumps in the road that you feel these little hassles here and there, number one, many of them don’t cost you any money occasionally they do. But keep perspective and know that your return because it’s so high to start with if it meets performer, even if it doesn’t, you’re still doing extremely well. And then the question to also ask yourself is compared to what what else can you do that’s any better? That’s the that’s the other issue. And and then also is that fragmentation is what keeps the big institutional investors out. Those are just things to remember to keep it in perspective.

Sara 12:40
Well, and just one more thing to mention, you know, and this kind of goes back to the conversation. I’m well aware that you know, a lot of our clients you know, they attend our meet the Masters events or property tours, and sometimes they exchange email addresses and I I’ve been told and not just from the most recent event, but several events over the years that there’s these different kind of email chains. Which is great. It’s great to share information. It’s great to network to share the good, the bad and the ugly.

Jason Hartman 13:05
Well, Sarah, what you’re saying is that so many people fall victim to listening to the armchair quarterbacks, the people that either aren’t doing it at all. They’re the, you know, spectators in life or they’re doing it, but they’re doing it poorly. You’ve got to listen to someone who’s doing it well. And sometimes the person doing it well, isn’t, I mean, are they making money? Or are they the type of person who’s maybe doing it? Well, because they’re paying attention to every little detail, but by doing that they’re getting in their own way. And they’re shooting themselves in the foot or in your case shooting themselves in the shoe. which hopefully at least they have a shoe on before they accidentally shoot themselves in the foot. But what I wanted to say is that compared to what question that’s one of the acronyms they kept saying on CNN this morning, and it’s the acronym is called Tina ti na, and it’s there is no alternative as though they’re they were talking About oh well the Dow is now at a new record high and saying well there is no alternative in the stock market is the only thing to do. Are you kidding me? I mean obviously who advertises on these these stations especially CNBC? That’s the worst but and CNN is not a financial station per se. But all of them they’re all part of the vast Wall Street conspiracy. There is no alternative. Are you kidding? People are making fortunes in income property right now. I mean, what How can you say there’s no alternative to the stock market? That’s a mind boggling ly. Anyway, so anything more on the whole listening to armchair quarterbacks, they don’t know what they’re talking about half the time and sometimes they do. You know, not all critics are bad. Some critics are right. Some critics are correct. Look, I’m a critic of Wall Street. Okay, and I’m correct. Just a reminder, you’re listening to flashback Friday. Our new episodes are published every Monday and every Wednesday.

Sara 14:56
I would just say to these, you know, different email chains going on and things Like that is, is Don’t forget, if you’re on an email chain with 1015 people, we have hundreds of clients and you know, a lot of our clients, a lot of our St. Louis clients are on their second third deal. They’re they’re happy with their deals and their repeat buyers. And you know, others are frustrated with the bump in the road of, you know, rehabs and things like that.

Jason Hartman 15:18
So why actually, Sarah, we have thousands of clients, but you have hundreds, yes.

Jason Hartman 15:25
You as one investment counselor for the company, but in terms of the history, we have thousands of clients. So yeah, so you know, they always get that one negative voice that makes you doubt things. And that’s just part of life. It’s true in everything. And that’s just part of the thing. Hey, but you want to hear about this dow thing nowadays. So this is unbelievable. So just google inflation calculator, and unfortunately, I couldn’t find a calculator for inflation that does it by the month. And of course, I can’t find a calculator that does it by the real rate of inflation. I can only find one using the official statistics. There are calculators out Where you can plug in the numbers. But the problem with those is that you can’t plug them in for each year or month by month. And so this is a rough estimate. And what I want to say to you is that the numbers I’m about to tell you are quite a bit more in the favor of my example than than the calculator would imply, because of those reasons I just mentioned, and of course, the government maligns inflation and under reports it through the three major things weighting substitution, and hedonic x, the pleasure index, so to speak, the hedonic index, and if you don’t know what that is, go back and listen to prior episodes. We talked about it extensively, but here’s the deal. The Dow in 2007 Okay, at its last high before the big crash before the financial crisis, okay, was it 14,001 65 that was the number now, back then at that time, and this is Steve posted an article from one of the great websites Zero Hedge that I really enjoy a lot. Great data there. They said in their commentary on it was this morning mission accomplished with CNBC now last for the countdown double targets through 20,000. This is the 20,000 is so close, we leave it to none other than Jim Cramer talking about where we stand in terms of the market. Okay. And here is the contrast. It’s really mind boggling. Okay, so the Dow Jones Industrial Average, then 14,001 65. I’m rounding here slightly. Now it’s 14,001 65, I guess and I don’t know, maybe up a little bit by now or down. But he did this article right at the time it hit that other peak. But here’s the difference. Think about what has happened in terms of the cost of living. a gallon of regular gas back then was $2 and 75 cents. Now it’s $3 and 73 cents, almost $1 more. That’s about a 20. What’s that about a 25% increase approximately. So very significant difference, GDP. Then and these are the government’s stats. Of course, GDP then was positive at 2.5%. Now it’s positive only 1.6%. And by the way, GDP, the gross domestic product is a total misnomer because they’ve got you’ve got to to understand that properly, you’ve got to adjust for population increases, and you’ve got to adjust for inflation, which they usually don’t do. A number of Americans in the labor force who are unemployed and of course, this is totally maligned. Go listen to my episode with john Williams, the founder of shadow stats calm about this one, but then it was only 6.7 million people unemployed. Now it’s 13.2 million that’s basically double Americans on food stamps back then it was 26.9 million. Now it’s 48 million. The size of the Fed’s balance sheet back then, was a mirror point eight 9 trillion now it’s 3.01 trillion. And get this one Sara mind boggling number here. US debt, the country’s debt as a percentage of GDP back then, it was about 38%. And now it is 74.2%. Wow, that is in sane. We are only talking about 2007. Until now February of 2013. That’s not much time and household debt, then 13.5 trillion now actually lower and if you adjust for inflation, a lot lower people have gotten themselves out of debt. Okay at 12.87 trillion, doing the right thing, which is what the government doesn’t want, because they want you spending money. You know, remember george bush go out and spend some money, consumer confidence mind blowing number here, though, back then it was 99.5% the Consumer Confidence Index. Now it’s only 69.6%. It’s just mind boggling how much things have changed since then. And if you look at gold Which I think is a rather mediocre quote investment unquote, I think it’s just a savings account, not an investment at all talked about that many times on my shows, prior shows, but then it was $748 an ounce now 1583 down from an even higher point recently, but that’s a measure of inflation. And I think that’s why, you know, it’s worth discussing, but not as an investment. But look at this now. Okay, so I went through this inflation calculator, and I punched in 14,001 65, which is the value of the Dow at its peak then and what passed at least for a little while this morning. Now, today, they they all say, Oh, well, the stock market’s going through the roof. It’s a total lie today. That same dow adjusted for the official understated rates of inflation needs to be at 15,672 to be equivalent by non real understated inflation statistics. You need to be at 15,006 31 to have any real gain in the value of your stock portfolio. So again, a total and complete bold faced lie, the vast majority of Americans are just too dumb to figure it out. They don’t understand how things work. They don’t understand the difference between real and nominal value of things. Oh, and by the way, as I speak, the Dow is at 14,002 57. So up 129 points on the day. Okay, so still we are still behind. That’s my point. We are still behind. In fact, if you had your money in and you left it in, and you went through the down cycle, and you didn’t take it out, the value of that money when we hit that same historic peak today was only $12,748. So in other words, by the official and understated statistics, basically Under inflation, you have lost money, you’ve lost money. And most people, they don’t know how to keep score. So they think they’re winning in the stock market, when they’re really losing, you’re going backwards. You’re not even treading water, you’re not even keeping pace, you’re losing ground. Your wealth is being eroded by that insidious, hidden tax called inflation. So that’s my take on the Dow. I wish the mainstream or lamestream media would tell the truth, but I doubt that’s going to happen. Hey, let’s move on. Sarah, we got two more things to talk about. We do have not a guest. today. We are going to play a panel discussion from our last meet the Masters event and it’s a lender panel discussion, so people can hear what lenders are saying we’ve got a panel of three lenders, and we recorded it. We got a lot of audience participation in questions here. And so we’re going to play that here in just a moment for our listeners. That’ll be today’s in place of a guest we have. We have three guests, we have a panel of mortgage expert So that’s what we’re talking about. But I wanted people to know we are about to make a big change in our podcasting system. So with changes sometimes who would pray that there’s no technical problems. But if there are any technical problems, and for some reason you don’t get the podcast in your feed, go to the Jason hartman.com website. Just know that we’re still here. We’re still podcasting. We do this regularly, you know, once or twice, or maybe three or four times a week, sometimes we get a show out to you. So just understand that we hope there’s no problems with his changeover. But I wanted to just put that out there and let everybody know we are making a change in the system. And it’s going to be better. But we always take a risk of changing things when we do that. And there can be technical problems, okay. For some reason you don’t see the show on iTunes or you don’t see it showing up on whatever podcast aggregation platform you’re using. Know that we are not going away. We’ll be podcasting. We’ll have, you know, we’ll eventually get to episode one. Thousand so keep listening and always look for us if for some reason you lose us, okay. And then and I know Sarah, you think this is great news, we finally booked our Memphis property tour and creating wealth bootcamp. Aren’t you happy about that?

Sara 24:16
I am super excited. Talking it up for the past two months.

Jason Hartman 24:21
And these hotels, it’s complicated to book these things. You’ve got to book the hotel, you got to get the good room rate deal for all the guests, which is $114 per night on a room block. So we got a great deal. And we’re at the Hilton in Memphis. Okay, which is a beautiful hotel. We like to stay at the class here, swankier places. That’s where we are and the dates should we give the dates here. Are we ready to do that? Okay. drumroll please. With this will be at the end of April and the dates will be April 26, seventh and eighth. For the Memphis creating wealth boot camp and property tour. And it’s at the Hilton Hotel in Memphis, which is a great location for everything we want to do on the tour. And we’ll probably have Elvis come by and speak for a few minutes. Because a trip to Memphis would not be complete without Elvis. So

Sara 25:15
I thought you were dressing up as Elvis.

Jason Hartman 25:18
I don’t know about that. You know, I’ve never dressed up as Elvis. I know that’s a popular Halloween costume, but never have never done it. So anyway, this will very shortly it’s not as we speak as we record, it’s not up on the website, but maybe by the time you listen at Jason Hartman, calm under the events section, and early bird pricing at $247. That will go up quickly as the tour starts to fill. So book early, make sure you get on the hundred and $14 room block option. And Sarah How about if we talk about the schedule, so it’ll start on Friday evening at 7pm with a welcome dinner that we’re hosting. Keep your wallet in your pocket, and don’t pull it out because we’re hosting that. And so we’ll have a welcome dinner Friday evening and that’ll be April 20. Six at 7pm in Memphis at the Hilton Hotel, and then Saturday all day from 9am to 6pm. We’ll be doing the creating wealth in today’s economy boot camp, the one I have given for thousands and thousands of people. And you know, even if you’re not interested in Memphis and as a market by any chance, come and just go to the boot camp and and hear that, I mean, people love that seminar. So that’ll be a full day, nine hour day, from nine to 6pm. And then we’ll have a dinner everybody together Saturday evening, and then Sunday morning, we’ll have breakfast, and we will board the bus and we will look at distressed properties. We’ll look at foreclosures. We’ll look at properties before and after the rehab process. And you’ll get a sense of what our local market specialists do in terms of rehab. And by the way, Sarah, this is kind of unique. We did this once before in Phoenix, but we have two local market specialist hosting this tour with us not one but two. So you’re going to see some different types of properties in different places. gives some different operations, frankly. Any thoughts on that?

Sara 27:03
Yeah, I really like both of our providers, which is why we’re having to I mean, it was, it would would have been too tough of a decision to leave one out. So we like them both. Property Management is solid with both. And we really got two great teams in Memphis. And there are a lot of providers in Memphis that we turned away just because we like these two systems. Oh, yeah. I haven’t had any complaints. So

Jason Hartman 27:25
Well, we’ve been we’ve been you know, and I said, when we when we introduced Memphis on the show, many, many episodes ago. But you know, when I said that, I said that we’ve been avoiding this market for several years. I mean, I was getting the call once every couple of weeks for a long time, refer your investors to Memphis. And what finally convinced me was a couple of clients. And I think one of them at least was your client. And I think one was another investment counselors client, calling me and talking to me about their experiences in Memphis, not buying through our network buying through another provider going directly and they He had mentioned that they were very happy with the provider. So we started really looking at that market and a little more depth and screening different providers there. There are many providers that do Memphis, there’s a lot of a lot of rehabbers in Memphis, it’s a big area for that.

Sara 28:12
And just chime in on that there. I have heard good and bad about some of the other providers, which is, you know, part of the reason that we’ve stayed clear from Sam. So, you know, there are some providers that I’ve heard are under hot water in Memphis. So you know, again, do your due diligence, we’ve found a couple of great teams, so we’d love to have you all on our tour.

Jason Hartman 28:31
You know what I’m sort of noticing about you, Sarah, as long as I’ve known you, and that’s many years now. You sort of you kind of change old sayings, you say they’re under hot water instead of in hot water

Sara 28:40
in hot water. You’re right.

Jason Hartman 28:42
Yeah, we don’t want to step on anyone’s shoes.

Sara 28:46
Yeah, I like to put my own twist on

Jason Hartman 28:49
there. You do you really remake these old sayings. Okay, good. Anything else before we go to our panel discussion?

Sara 28:56
No, I’m definitely not gonna listen to this podcast.

Jason Hartman 29:01
Hey, we got to have a little fun and be a little bit corny here and there. Okay, everybody. Hey, thanks for listening and happy investing. We are going to go to our panel discussion, and we’re going to talk about mortgage financing. You know, we don’t do that enough on the show. And I think you’ll really enjoy this panel. And it was very well attended our meet the Masters event, which was at the Hyatt Regency in Irvine, California, in January, and just about a month and a half ago. So I think you’ll really enjoy this and we’ll be back with a panel discussion, and just about 60 seconds. Thanks for joining me, Sara.

Sara 29:31
Thanks so much.

Announcer 29:34
Now you can get Jason’s creating wealth in today’s economy home study course. All the knowledge and education revealed in a nine hour day of the creating wealth bootcamp created in a home study course for you to dive into at your convenience. For more details, go to Jason hartman.com.

Jason Hartman 29:58
Let’s invite our mortgage expert It’s up here. Come on up. So first of all, I’d like to go now this is the time where you should be asking a lot of questions. This is a much more open forum, this particular thing. What we found with mortgage speakers, is that everybody would hear one thing from one mortgage person and a different thing from another one. So I wanted to put them all up here at once. And and we’ll see if they agree. Okay. All right. But first of all, give us a little two minute elevator speech, if you would tell us who you are, where you’re located, what company you’re with how long you been in the business, any thing you want to say that’s unique like that.

Steve Bighaus 30:40
Steve, big house with guild mortgage. I’ve been in the business for about 25 years. So I’m one of the old timers 15 years of that was spent in banking, where I ran a real estate department for a bank decided to make that move out of banking because that could actually make more money, the internet well, and they could a VP at a bank. So made sense for me to do that. We’re headquartered the company I’m with gildan mortgage. We’re headquartered out of San Diego. I work out of the Lynwood office, which is just about 20 minutes north of Seattle.

Chaley Ridge 31:05
Hi, my name is chaley Ridge. For those of you that I know already, you know how that’s spelled. And I’m wondering First off, does anybody want to take a crack at the pronunciation? We should, we should maybe should we should say it together. Should we try it one time? It looks like Kaylee, for those of you that have seen it. Let’s do it. Okay. 123 Chailly. That’ll it will that’ll be on the test later. Hi, you guys. I’m so excited to be here. This is my first meet the masters. I’m down from Portland, Oregon. That’s from my offices. We have corporate offices in Los Angeles. Quickly about Ridge lending. We are a second generation company. I’m the second generation my father founded it. I’ve been in the industry for about 15 years. I’m an investor myself at the height of the last cycle. I own 42 properties collectively. So I come with a unique perspective. I think that I can add to the education which is a big part of what we do to our clients or investors and having that background in that experience. I think adds, it’s a value add, I think that we can help support the goals and the financial strategies, I find that the financing pieces is very intimidating for most people. So we really try to do a good job in taking you through the process, trying to get you to understand it and giving you the tools and the education necessary to go from A to Z, depending on what that looks like for you and supporting that with the financing and making sure that you’re positioned properly. We’re nationwide. And we have fantastic products that exceed past the 10 Bear barometer that you guys have heard about conventionally, we can do for more after that. It sounds like we don’t have a lot of time. So I’ll go into that in more detail on a one on one basis. And I’m super excited to get to know each of you and talk about what your goals are for investing and how we can help support that thanks.

Erin Chapman 32:51
I’m Erin Chapman also spent some time in the industry. 16 years I came into the industry from the mines in New Mexico so I was working underground with explosives That kind of thing. So it’s an interesting transition. Exactly, it’s the same as a lot dirtier Now, what I do, compared to the other but so that kind of adds a little bit different spin on it going from heavy equipment operating the mines, and somehow I forced got my way into this. It’s been very successful this 16 years, it’s not easy. It’s definitely not easy. And you know, what I found also investing all kinds of different parts of I was involved in, then the mess that’s happened is that it’s really a people thing. And that if we don’t get along, and you and I don’t have a basis or relationship, to continue to do business, just based upon how we, we speak to one another, then really, there’s really no reason to continue to move forward in this particular transaction, because it will be miserable. No matter who you pick on this panel to work with or somebody outside of us, it’s not going to be fun. So I would just let you know that up front and it’s nothing against you. It’s just part of the part of the deal. So we need to build a relationship right up front is really the main thing. As far as personal life. Wife, three children We my wife and I both are tactical rescuers for the sheriff’s department. That’s where we spend our extra time outside of the office.

Jason Hartman 34:06
And I’ll tell you, Aaron, I live in Phoenix, as does Aaron. And he was on the news. He made a big rescue guy he like fell down a cliff. And I saw that on the news. And he was the guy who actually rescued him. So yeah.

Aaron 34:23
Some base jumpers decided to jump off a 800 foot cliff, on the front of the foot on the face of superstitions on leap day last year, and I was the lucky one that got chosen to get sent down to the cliff to go get him is really, really cool.

Jason Hartman 34:35
He likes to risk his life. That’s why I got into lending. And mortgages. First of all, maybe if you want to pass back to Steve here, I wanted to ask you all what is the sentiment you’re hearing from investors? What is your what is the feedback what is the your take on the market right now? I just wanted to get your thoughts on the market, the real estate market, the economy in general, maybe any feelings about we’re entering rates are going and so forth. And just kind of a minute on that one. And you know, we’ll just get everybody’s, and we’ll go into some specific lending stuff after that.

Aaron 35:08
Right now we’re in, we’re in record lows as far as rates. And you know, it could really go either way. And that as far as going up or down right now, I think what we’re going to see is we’re going to see the rates start to stay, you know, stay down. A lot of the investors that do come to me and that they’ve had experience with other lenders, good and bad. And, you know, my job is really to, you know, just kind of help them through it, because let’s face it, the lending, you know, lending arena right now, we’re back at what it was 20 years ago. I mean, they’re looking at everything. And so it’s it’s important to have somebody that’s got some experience can foresee some of the problems up front. You know, nobody likes getting that getting that calls in 3045 days in their process that you don’t qualify, something happens, again, really, really important, and the complexity and what that what the investors are trying to do right now. As you get those people that get up to the 10 properties. They want to get to 20 they want to get to 30 give them their years back when I was in banking, what we used to do, and that was we used to bundle commercial loans, have them form a corporation do it that way there. And the banks lost a lot of their appetite for the, you know, for the real estate, real estate investing. Now we’re going to start seeing some of that come back. I’m talking to a couple lenders right now that I want to be able to refer over to refer my clients to an ad and, you know, that’s kind of where I see things going.

Jason Hartman 36:24
So you think rates will stay low? In other words, that’s correct. And by the way, I agree. And Doug mentioned that earlier. Remember what low rates mean, people buy properties, not on the price, they buy it on the payment. So if someone can get alone and rates are low, that means price pressure is definitely upward.

Chaley 36:41
Well, can I can I comment on the rate thing? So I don’t know how much you guys spend on figuring out what your payments are going to be? It’s probably a lot per property right. And then the price points that we’re finding are in the market right now and having been through the last cycle, I mean, the sweet spots are what, on average 80 to 121 30 single family residents would ever be. I agree with that. So let’s figure an 80% mortgage on that purchase price. Do you guys know the difference between a 4% interest rate and let’s say five 6% interest rate? It’s negligible. And in the big picture, if you’re looking into the future, the difference even if rates did go up a little bit, which I agree with Steve, that that’s probably not likely, I don’t like to predict past. What time is it? You know what I mean? It’s it’s very difficult. There’s so many different variables that go into how the, the rates are going to go from one day to the next. They change daily, sometimes a few times a day. So I would advise my recommendation, and I used to get really hung up on interest rates is I wouldn’t focus so much on that number. I think that it’s a lot less important than the actual process and kind of understanding financing and how to position yourself through education and hopefully that’s what we’re here to do for you guys. So that you know how to take one property 10 if that’s your goal, and make sure that you can still qualify in the process. It’s it’s can be tricky, right? Just so you know

Jason Hartman 38:00
what I was kind of getting out there is the investor urgency issue, because when rates are this low, I mean, we’ve seen prices in Phoenix are up about 34% off the bottom. I mean, prices are rising and pretty much every city now. That’s the thing that that’s caused that needs to create urgency with all of us to buy up more properties is that that issue of the low rates now, it’s kind of an odd thing that we have right now because we have very, very low rates, which usually and so housing affordability is the best it’s ever been okay, since NAR National Association of Realtors started keeping statistics. However, people can’t get the loans, a lot of them. So it’s kind of like a real quandary here, where you know, you’ve got these incredibly good interest rates, but it’s also still at the same time hard to get the actual loans, Aaron.

Chaley 38:51
I think that actually caught those one exists because of the other because it rates our supply and demand of money. If you’re not tearing up that supply course the cost stays low. So because of the fact that we’re preventing so many people from getting these loans, that’s what I think is contributing to it, I would say it’s the total, the total reason but as a definite contribution, when we’re talking about the financing piece, what a person needs to do is be pre emptive. With this, take the time to sit with somebody, whether it be one of us or somebody and figure out your financial profile well ahead of time, you’ve spent the last 1015 2030 years setting up your financial situation, we are giving a matter of moments to dissect it and tell you whether or not we can get something done. And a lot of times things can creep up in the process that we don’t find until we really dig deep. And that process can eat up into your escrow time. Take the time ahead of time to get that figured out because it’s not a science anymore. It’s a moving freaking target is what it is

Chaley 39:49
freaking target.

Chaley 39:51
I’m trying to, I’m trying to get through it is it’s a mess. So that being the situation. Let’s sit down. Let’s go through everything in great detail. well ahead of time before you want to waste your time, don’t be paperwork, apprehensive, that’s the biggest problem we have. At least I have I don’t know about you guys, but people are very paperwork apprehensive. They like to say, Well, this is my private information, I want to hand it in right away. We’re going to need it. You’re going to have to get, you’re gonna have to expose yourself politically. Yes, you and when we say you do have to do all this, unfortunately. And one thing you also have to know, please, we don’t. We don’t want to see it anymore. You want to give it? Because if you give it to me, I got to read it. And I don’t like reading. Just to be honest with you. We haven’t a question back here. Jason. If you’re asking me personally, there’s not a money issue that we’re talking about. Because if I’m working with when you guys one time, I’m working with you three, four or five times. So I’m not worried about one price point being low personally, but we do the banks do have limits with the institutions I work with. It’s depending upon which whether you’re the first four loans or the five to 10 loans or higher, it’s 40,000 per one and 50,000 of the other. That’s just where their breakeven points are. Because they’re

Jason Hartman 40:58
so that’s remember that’s 50,000 loan amount not property price, that’s the minimum loan amount they’ll do, because think about it, they don’t want to hassle with these small loans. They’re not very lucrative for them, you know, $50,000 if you live in Orange County as a car loan, okay, you know, so

Chaley 41:15
lower income people.

Jason Hartman 41:16
Yes. Microphone microphone.

Chaley 41:22
Sorry. Just to add to that sentiment, the $50,000 loan amounts to there’s something now, in the powers that be decided that high cost limits loan limits, it becomes very problematic to make any kind of money on the smaller loan amounts and be able to have compensation. So there’s Fannie Mae tests that either fail or pass and most often those $50,000 loan amounts, you’re failing. And so what you think you’re making 1000 bucks or whatever is really more like half that it gets complicated. So $50,000 minimum,

Chaley 41:52
do you have a minimum I’ve gotten from my some of my investors in that because I have a tough time turning somebody away that wants to buy a property for 55 and they’re gonna put 25 percent down. You know, look, it’s alone. My branch manager, Randy over here, not really thrilled with the idea, but I’ve done a lot. I’ve done lost right over here.

Jason Hartman 42:09
So he doesn’t look thrilled.

Chaley 42:13
And I’ve done $30,000 loan for the customer, you talked about the high cost, you know, we well basically, but I charge you for it, okay, you know, what you’re going to do is take my rate caps out at four and three quarters, 4.8, that’s where you’re going to end up, you’re gonna get the highest rate, I’ve gotten my ratio, that’s where you’re gonna end up, I’m gonna hit you, I’m gonna charge you back. Because we get hit for the loan size, you’re gonna pay that I’m not. And I’ll charge you 1% loan fee. So we get back in that basically even with the high cost tests, and that, that one and a quarter I charge you for being under $55,000 that absorbs majority of that. So I do make a little bit of money, but at the same time, I don’t look at the customers coming back. If you’re gonna if you’re telling me you’re gonna bring me five or 630 thousand dollar loans. We’re gonna have a talk Because I’m just not gonna do it because he

Jason Hartman 43:02
doesn’t want to do. But isn’t it interesting what they’re saying about this? Remember the caveman the second next 10 commandments this morning. It’s the same thing as a landlord. You don’t want to deal with super low quality, super low end properties. Because if they have to, if the lender not vade, but you know, the actual ultimate lender has to foreclose on that property or the servicer. It’s like not worth it. If it’s too cheap of a property. That’s why those ultra cheap properties, you can’t finance them. There’s just no point no bank wants to do it.

Chaley 43:27
If you if you have a need for that smaller loan amount. Usually what I’ll tell my clients is find the on the ground, smaller bank in the area that the property is located in Detroit. Invariably, yeah, they’ll be able to do it for you. They can do it. Yeah.

Jason Hartman 43:40
Right. If they haven’t left the city yet, anyway. Okay, so the next question. So the question is, how do I know you know, when I’m getting alone, that I’m not being nickel and dimed to death? You are okay. Next

Chaley 44:00
Where and we’re not the ones trying to dime you. It’s more or less we’re getting hit with it, we’ve got to pass it on the end result is you’re going to have certain charges. If we can minimize it, we’d love to, because believe me, we don’t want to hear that question. We don’t want to have to answer that question. But I’ve gotten very good at answering that question. Actually. Now, after my career, I’m easily I could just put on a black suit, go to the hospitals and tell people the mom just died on the operating table because I had no feelings left.

Jason Hartman 44:25
Okay, pass the mic over. Steve, Steve, at least you’re compassionate go. What you don’t rescue people when they fall off a cliff. You know,

Jason Hartman 44:47
when you get down there, you’re on the helicopter, you know, on the line. You have some money sign over your house, or there’s no equity, it’s upside down.

Chaley 44:56
You know, you tend to talk about the fees and a lot of the fees that we have in it. Regardless, so you know, you, you go here you go there, you’re gonna get charged. Now the thing with the fees, though I understand too that a lot of the third party fees like your credit report, your appraisal fees, title and escrow and that those are fees and that that, you know, as lenders we can’t make money on. So if we get charged 18 bucks, you get charged 18 bucks.

Jason Hartman 45:19
It’s it might be a different kind of

Chaley 45:21
credit report vendor.

Jason Hartman 45:23
But it might also be a different type of credit report with

Chaley 45:29
many times I know because people ask me that same question. I’ve got that many times recently. With us, we have to verify so many things with the types of loans that we’re doing. We have to update many of a bunch of your accounts, update all your mortgages. And if you’re an investor, it’s got several mortgages on there, we’ve got to update them to the most recent payment. So we have to have our credit reporting agency, call your mortgage company, update and make sure your current up to the very day that we’re doing the loan and many times you’re going to be on a conference call with them. And you’re going to be saying now I’m wasting my time. I’m sitting on a freaking conference call for an hour talking to people about the stuff I already No, because I made the payment myself. But that’s what it is. And they charge for that. So if you’re talking $10 credit report, actually, it’s 15 bucks, we charge five bucks for every, for every repository. So we got Equifax, TransUnion, and Experian, so we got 15 bucks there plus get charged every time they got to make a call, every time we have to do a supplement, update one of your accounts. Anytime you have something on there, we need to verify so 65 bucks, it gets ramped up to that pretty darn quick.

Jason Hartman 46:24
So that’s the different that’s what’s called a tri merge report when it’s all three. Okay, I believe you were next. I’m not sure but Okay, so the question is, can you offer some options on investors trying to get more than 10 loans?

Chaley 46:37
Yes, and I can’t speak for them. But our portfolio product allows us to do another four after you’ve reached that 10 threshold, we can do another four you can have up to 20 finance properties, but this particular investor for us will let us do four of those and what kind of rates Very good question the terms of this particular loan are as follows. And one of the the bigger, I think, deterrents that I’m finding and I can’t get them to budge on the minimum loan amount for them as 100,000. So you’re looking at I think, and the LTV maximum, you’re gonna lose some leverage on this as 65. So I believe I’ve done the math $154,000 purchase price is what you would be at a minimum to qualify for this particular product, six and a half percent interest rate. This is a 30 year fixed. Not bad at all. The only other thing that I like to mention as a bullet point is this particular product has a three year hard prepayment penalty. So what that means to you is, is that for three years, 36 months, it’s really doesn’t mean much, but you should be aware, it’s a three to one. So in year one, if you go to sell or refinance that property, which isn’t going to happen, you’re going to pay 3% of your existing balance as a penalty. So if you owe 100,000 you’re paying 3000 in the first year, second years, 2% 2,003rd years 1% 1000 but you’re not going to be doing anything refinancing or selling that property in the first 36 months. almost guaranteed. 35 Yeah. 65% LTV 35% down

Jason Hartman 47:59
Yep. CV means our evaluation to

Chaley 48:01
value gap.

Jason Hartman 48:02
Okay, wait, not yet. We have one over here. Yeah, you may not know this because probably none of you listen to the podcast like you should. Okay. So, so mortgage sequencing. So what I’ve talked about on the show several times is something I just gave it the name mortgage sequencing, meaning when you’re trying to execute a plan and buy, you know, a whole bunch of properties, that’s how you sequence the mortgages. And the advantage there may be if you know, if you can only get 10, regular Fannie Mae loans, you want to buy more expensive properties like plexes. So for example, you know, you want to get as much since they go by loan number of loans rather than loan amount, it might be better to buy 10 for plexes and get 40 units than it would be and you know, maybe those are more expensive than buy 10 single family homes and only get 10 units, you still have only 10 loans. You see what I mean. So, you know, we’ve talked about that and then and they really can’t necessarily address this although they can have added a moment. But the reason that mostly came up is because we had some special financing at the time, which has now run out so far as I know, maybe Sarah Stever already can address this in Dallas. And with that lender doing these, it was a small community bank, they didn’t care how many financed properties you had. So the first thing you want to do is run out and get your 10, Fannie Mae financed properties and not buy in Dallas First, you want to buy after that, okay, because you don’t want to have other finance properties where they the Fannie Mae would say, Well, you’ve got four, you can only do six more. So that was kind of the mortgage sequencing thing. You guys may have some stuff to say about that. And I’m sure you do, but that’s where why he’s asking the question, I think, right.

Chaley 49:42
Well, it is it is a common question and that is how do you get past 10 and and it’s it’s it right now is tough. I mean, it really is, but the solution is and that is it. You have to get out of the mindset of thinking yourself as a single family, real estate investor and quit think and Fannie Mae because once you go past 10 You’re really into the commercial realm. And that’s really the the mindset that you have to put yourself in 10 years ago, I started working with a guy at the foreclosure auctions in Seattle came to me, he had had half a dozen restaurants. He was working, he wanted to buy a bunch of properties. So we got him to 10 banks at that point in time. And now what they would do is I took into a community bank that I had some relations with, and what they would do and as they went ahead, they bundled them together, he formed an S corporation. He dumped them into there. We started the cycle over again, six years later, he owns 44 houses. Now he’s not going to get the same terms. Just absolutely not. You’re definitely not as you’re not going to find 30 year money if you’re dealing with some of the

Chaley 50:42
smaller community banks. Yeah, seven to 10 years. They’re gonna reprice

Jason Hartman 50:45
and I want to give a shout out to to Zach Henderson over there St. Robert in the corner, because he’s got an excellent community bank and Joel has taken advantage of that I think you have a think so, where he can do some commercial financing on non commercial properties which Of course isn’t as good as the Fannie Mae thing is the best it’s subsidized by the stupid government take advantage of socialism, real estate here has always been subsidized by the government. Since the depressions, that’s the thing, but your mortgage sequencing?

Chaley 51:12
Yeah, I have some comments on that. But quickly, are you guys is anyone aware of how many countries in in the world that actually offer a 30 year fixed mortgage bank?

Jason Hartman 51:21
One the United States?

Chaley 51:22
Yeah, there might be one other in in one of the European countries. I’m not remembering which one it is. But everybody else’s of 10 years is a long time even or any mortgage at all

Jason Hartman 51:31
right? I mean, I, you know, I’ve said this on the show folks, exactly what Jaitley is saying, I’ve been to 64 countries and I have looked at real estate, I’ve gone around with real estate brokers. A lot of them aren’t licensed. They just saw I’m a real estate broker. And I’ve gone around and looked I did it all over eastern Europe, Central America, South America. And mortgages are like a totally foreign concept to them, even any mortgage at all.

Chaley 51:52
So we’re very lucky to have an opportunity. I mean, think about what the difference between a 15 year mortgage and a 30 year fixed mortgages. It’s huge. Have that amortization at 30 years makes a big difference to what we’re talking about today. Huge difference. It’s a difference between $300 a month in cash flow and maybe 100. It’s a big deal. So a

Jason Hartman 52:12
massive amount of inflation that will take place in that second 615 years.

Chaley 52:16
Right. But just to go back to your question about sequencing, that’s a fantastic question. And a lot of what we do, I was touching on earlier about the education, sequencing is actually pretty important. So let’s just assume that the scenario is we have an investor that wants to get to 10. And they have a primary residence. And that’s all they have to start with their clean slate, they’re new to this. The first thing we’re going to do is we’re going to take your blood type and some DNA samples already qualified, right? We’re gonna go through all of that we require what most might consider an inordinate amount of information upfront, we do a tremendous amount of due diligence on the front end, so that hopefully in the middle, in the end, it’s a little less painful. So we go through that and then we spend some time talking to you about what your strategy is giving you the information about where your qualification is today so that when we talk about that suit, wincing. The first four let me give you a just a quick if anyone wants to write this down, this may be important for those that don’t know properties one through four financed and that is one to four units that includes your primary residence does not include commercial or bare land, you can leverage as an investor to 80% loan to value on a single family residence. So which properties Do you want to get in spots 123 and four, if you can leverage at the most expensive exactly, you want to get the highest end properties in those first four spots if you can, then you’ve got five through 10 properties five through 10, you’re going to lose 5% of leverage. You’re at 75%. Again, we’re talking single family residence. These numbers are different for plexes. So it’s really important to work with somebody that really understands the non owner occupied model because if you just go to your VA loan officer that’s sitting there counting paperclips, he or she is probably not going to be able to help you strategize this The other thing I want to mention you guys real quickly and I’ll turn it over to somebody else. One of the things I want to mention you guys and this is a pretty big deal and if you want to take notes great we can talk about one on one qualification. The fact that Here’s a very simple when you’re calculating a debt to income ratio specific to the rental income that we can use to offset that debt to income ratio. This is a little off off topic, but it’s very important in the acquisition year of purchasing property. The formula for calculating the rental income is a very simple 75% of your rents. You take your rental income, the gross rental income and multiply it times 75%. Then you take that number and subtract it from your pie, Principal interest, tax and insurance. Very simple, right? What happens though, when those properties hit your schedule if your tax return, very different, very complicated, these guys can probably speak to this financial formula that is going to potentially inhibit you from getting to that number 10 goals. So it’s very important that working with someone that knows what they’re doing related to non owner occupied so that they can set up that appropriate strategy. So for example, we’re in the beginning of 2013. Okay, you bought three four properties last year, we want to look at a draft copy of that. Tax Return before it’s filed to make sure that those losses that you’re going to be taking, cuz you’re going to take your depreciation, there’s going to be some maintenance. Let’s say that those properties went on rented for two months last year, you’re gonna have less income to offset those things. We want to look at that draft copy to make sure that before it’s filed once that bell is rung, that’s it, it’s done. But we want to make sure that you’re positioned in that debt to income ratio to be able to achieve what goals you have planned for this year. So that’s a really important piece, and it kind of plays into the sequencing.

Chaley 55:30
So to repeat the question, sorry, she asked if you were on the fourth property, you had four properties already going on to the fifth and you’re going to buy another primary. Are you stuck that 25% down? And the answer is no, you’d fall into the primary guidelines. No matter how many properties you have, you could have 40 properties, and the primary is still your primary, you can still get away with 5% down 10% down whatever your intentions are.

Jason Hartman 55:52
So the primary residence loan is much more desirable than your investment property loans. And it’s the same regard Let’s have the sequence is what he’s saying. Right?

Chaley 56:01
Exactly. It doesn’t fall into that one. We need to belabor that. Okay? You agree? No that that what he said was if you’re if you’re married, and you can both qualify separately, that might be a strategy to look at. And again, talk up front with somebody. And let’s talk about the goals. Let’s talk about the options. Let’s get the strategy down. Let’s talk about the sequencing. Too often, you guys start seeing the dollar sign signs in your head and you get excited, you start signing contracts like crazy and buying property like crazy without taking the time to look and see what you’re doing. So then it’s left up to us after the fact. And those that you’re working with, whether it be Ari or, or Sarah, whoever you’re working with to sit down and try and help you strategize with what you already have that’s got closing dates coming up. So it’s important that you sit down and get the strategy put together first, and decide what your end goal is and how to get there in the smartest way possible, and not just start shotgunning property you start doing that. There’s a lot of opportunity missed. Yes, I’ve got several clients going in tandem like that. As long as you guys are not on the me, you may have a different situation, how we how I have we’ve done up to this point, at least how I have done to this point, if you guys are completely separate are both separate on your on your, your credit reports filing in, I’ve actually seen them file jointly, we’ve had to file jointly been able to make that work. We just have to separately get all the paperwork. It’s a paperwork nightmare. So if you’re all about paperwork, and you just get off on that kind of thing, you can do it. There’s a cost to getting off on 20 properties and it’s called paperwork.

Chaley 57:30
I’ve talked on this subject for several years right now and what I tell a married couple a significant other if you’re going to buy a separate you build a wall. I mean, that’s exactly what build a wall. So and when I say that because what I’ll see is clients, what they’ll do is they’ll come back and they try and get sophisticated their tax attorney, their accountants told him to set up an LLC. They do this and the husband is 99 you know, 99.9%, owner of the LLC and the wife’s got a 10th of a percent ownership in the LLC. Guess what? You just knocked your wall down. Because now all of a sudden you’ve tied it back. I had a gentleman in that, that the he created a corporation Good move, moved all of his properties into the corporation. Guess when the corporation is trust. And so guess what, guess who was on the trust him and the wife? So you’ve really got to think this thing you really think it through the end? What what what Fannie Mae is looked at and is it, they’re looking at the obligation, they’re looking at seeing who’s obligated on it. Now, the other thing that we’re going to take into consideration, and that is if you’ve got a joint mortgage, and that’s one of the things that I look at, can the spouse qualify with the mortgage and the debt that she has? And if the answer is no, then it’s probably not going to work. But again, it’s very, very important and that that you create that division between the two of now assets. Majority of the married couples that I deal with, they have joint joint accounts. And so what we’ll do And as we’ll have the the non borrowing spouse, sign an access letter that they’ve got access to the funds in the account. And then we’re good for the good for the funds. But again, there’s gotta be that division. If you’ve got anything that ties the two of you together, we’re probably going to find it because somewhere it’s going to be in your tax returns, there’s going to be a document that’s floating out there, that’s going to tie the two together. So you’ve really got to be careful with that

Chaley 59:16
was in bringing up the asset thing that brings another thought process into this, that’s not to say down the road, they’re not going to say, well, you guys have a joint account, and you’re making the payments on all 20 properties out of that account. So in reality, she does have a stake in it. So yes, we’re going to count that as part of it. So they’re getting really picky. And again, like I said, before moving targets So think about that, even though up to this point I’ve been able to do it with on joint tax returns, it’s uh you know, others have a different situation doesn’t mean tomorrow, they’re not going to pull the rug out from underneath me because they’ve been doing it on other things. So quite literally, Steve’s advice on build a wall is build a wall and make that sucker really thick

Jason Hartman 59:51
back here.

Chaley 59:52
Yes. The over 10 I want to be able to do that. I do. Right now. I’m going to do unique position of I am not affiliated right now I was was with a lender and they successfully screwed me out of a lot of things in the last 1215 days. So I am I’m in negotiation with two entities right now one of the ones I’m working with, we’re actually working with a fund on 20. I don’t know if it’s going to come through, we’re working on it. So that’s my take on it. It’s something I’m working towards, but whether or not I’m gonna get there, I can’t say the 10 is still an attainable thing.

Jason Hartman 1:00:25
So in other words, you’re saying in the mortgage sequencing issue by your primary residence is property number 11. Is that

Chaley 1:00:33
property number anything?

Chaley 1:00:35
Are you willing to rent out? Right?

Chaley 1:00:39
I don’t think for a primary there is no limitation to how many that you can own as long as you still qualify. And that’s something that we would want to look at closely. It’s going to be individual. Did everybody hear his question? I’m bad about that. I’m sorry. No, the quit his question was at what point do you want to buy let’s say you’re renting right now. When do you buy the owner occupied? When do you buy the primary residence? Do you buy it first? Should you buy it last? I would say you probably want to buy it last because the primary will eat up one of those 10 spots. So yeah, number 11 seems like a good spot to me because the four number after the fact for us can go to 20. So it wouldn’t, it wouldn’t mess that up.

Jason Hartman 1:01:14
And I say rent your own high end primary and rent lots of low end properties to other people. But you already heard that one.

Chaley 1:01:19
Can you do a 1031 exchange on property? 11? Yeah, if you’re paying cash, yeah, so you can take let’s say, property number 10. You mean right, and sell it and into a 1031? exchange? You’ve got one spot for conventional financing. The rest of it would be cash, or the for portfolio. Yeah,

Jason Hartman 1:01:38
the 1031 though, really has nothing to do with it. We’re just talking about lending. It’s 10 properties. So what’s the question? So dead taken income ratio, dti?

Chaley 1:01:49
Well, 50% is where we cap in other words in that I cannot get. I don’t care how good you are now. The d u stops at 50%

Jason Hartman 1:01:57
desktop underwriter desktop Android is no acronyms folks come

Chaley 1:02:01
anyways, Fannie Mae does automated underwriting system. So 50% if you’re 50.01 I don’t care if you got 3 million bucks in the bank, you got 850 credit score, it is not going to prove it. Okay, right now. Now that’s not to say it wasn’t gonna change, because back in 2007 and 2008, we were done 65. I mean, it was I mean, it was just it was to the point of being stupid is what it was,

Jason Hartman 1:02:24
of course, obviously, results. Yeah, that’s true.

Chaley 1:02:27
But 50% that’s, that’s where we stop at.

Jason Hartman 1:02:30
Let me take a brief pause. We’ll be back in just a minute.

Chaley 1:02:36
What’s great about the shows you’ll find on Jason hartman.com is that if you want to learn about some cool new investor software, there’s a show for that. If you want to learn why Rome fell, Hitler rose and Enron failed. There’s a show for that. If you want to know about property evaluation technology on the iPhone, there’s a show for that. And if you’d like to know how to make millions with mobile homes, there’s even a show for that. Yep, there’s a show for just about anything, only from Jason hartman.com or type in Jason Hartman in the iTunes Store.

Chaley 1:03:19
I just I had a comment to your question. I think that what you should do before you file 2012 is speak to someone and have them look at your schedule and calculate the rental income for you figure out where you are and how it’s affecting you. And you know, you can make adjustments. You can make adjustments to your tax return before it’s filed.

Jason Hartman 1:03:38
And in what I think what she’s saying is that your dti may be better than you think. If you add up all those schedule, ease and count the income, what’s the limit on how many properties I can acquire? His issue is that it’s not really the limit of 10 Fannie Mae, it’s that he’s bumping up the debt to income ratio limit. So there are different limits. I got a question. I don’t want to forget To ask so just to hang on to that for a second, what about credit repair? A lot of people have done some strategic defaults are these all scams or do any of them work? Do you have anyone that you want to refer? I mean, I know some of them really work out their credit repair issues I guess since you got them that

Chaley 1:04:16
there was word in our industry that for a while there I don’t know what the the standing is now, but that it was illegal. They were actually calling the credit repair companies they were driving them out of town faster than you can please. This has been some years ago. I’m not sure the status on it right now. But I can just tell you, the guidelines will tell you if you had issues in the past I’m one of those I we lost several properties, a short sale and things like that. The rule of thumb is for a short sale, you’ve got 24 months from the sale of that short sale before your mortgage eligible again, if by chance in that short sale process, you went into foreclosure or pre foreclosure, that two years goes to four. So if that is the case, just okay.

Jason Hartman 1:04:58
Let’s just define this Little bit. So if you did a strategic default, and the property went to foreclosure now that here’s where people get confused. The foreclosure actually stays on your credit report for I believe, seven years, but you can get a new mortgage in four years, even though it shows up on the credit report. Okay, so people always ask that question that confuses people. Aaron, do you wanna address the credit repair,

Chaley 1:05:22
just to define one, the foreclosure thing that’s if you ever made to the point of 90 days delinquent, that’s when they could go to the point of being able to go into foreclosure didn’t have to walk in and take the property, you just had to be in the position where they could exercise that had they wanted to. So if you’re 90 days delinquent, while you’re doing a strategic sale, a short sale something to that effect, then you are subject to foreclosure rule now on the credit repair thing, if you’ve got somebody that can get it done, that’s great, cuz I’ve never seen it happen. I’ve talked to thousands of these guys, they’ve come to my office, they sent me stuff I’ve never seen one actually repaired. I’ve seen people spend a lot of money on repair, but end up with the exact same thing they would have otherwise, really. Yeah. That’s that’s my experience. I’ve never seen it happen. Now the credit repair that I have seen done is stuff that’s just stuff that should be repaired. They send me the paperwork. I have my credit reporting agency, cleaned it up, it takes five days to a rescore and we’re done with it. It’s stuff that’s erroneous, but if it’s something that you committed me, it’s something you literally did that would that it should be on your credit report. I’ve not seen anybody magically erase it yet.

Chaley 1:06:23
I’ve got I’ve got a credit repair guy that I do work with it but but let’s face it in that if you’re 38 lights on something and you think a credit repair guy is going to get it removed. It’s not going to happen if that if there’s a judgment on your report and it’s valid, they’re not going to remove it. I mean, it’s there. What I’ve utilized my credit repair gentlemen for and that is stuff that is erroneous. Lee been put on your credit report. I’m working with the lady in Chicago right now had a judgment and she had a rental property. She was sued by her tenant. And she interned countersuit. So it basically wiped the judgment out but they still recorded it on our on our credit report and in If you call if you call the Cook County Magistrate’s office, they’ll tell you that a judgment was never entered. So they give me the they give me the document, they sent it to me. Guess who wouldn’t accept it, the Bureau’s will absolutely will not accept it, because it was handwritten. So now what I did was I talked to my credit repair guy, and I said, and I talked to her attorney, and I says, you guys figure it out? I mean, because I’m, you know, I mean, there’s nothing I can do. But that’s where I’m gonna utilize a credit repair. I mean, I’ve seen a lot of people that have promised the world they can’t deliver anything, the only thing they do is have you open up your checkbook and start writing a bunch of checks,

Jason Hartman 1:07:35
just so you know, I know there’s a ton of those that are scams out there. But some of our clients have had some success without they pay $700 or $800. And then they do like a one year program where they’re dinging the credit report agencies sending the letters and they have to respond and a lot of times they will the way it works. Basically, I’m no expert, but the way it works is if the creditor that put the derogatory thing on the report doesn’t work. respond in 30 days, it automatically comes off. And so you know, it’s playing a game. There’s no question about it. But the fact is they sometimes when

Chaley 1:08:07
So, but again, where I’ve where I’ve utilized them, and that is if there’s if there’s errors on the credit report, it shouldn’t be there. Right? That’s right. Yeah.

Jason Hartman 1:08:14
And they’ve been really good. Our question was over here,

Chaley 1:08:17
the typical, the typical rule is two years.

Jason Hartman 1:08:19
The question is how many months income to qualify for a mortgage? It’s, they average it over two years, right? Yes,

Chaley 1:08:24
self employed net, they’re gonna look at two years, but typically, in that you’ve got to have two years on your application. And that’s what they’re gonna look at two years of income.

Jason Hartman 1:08:32
So if you just started making a bunch of money,

Chaley 1:08:34
there’s exceptions to the rules, okay. And now, where you know, you get a teacher just recently graduated from college, okay, so she’s, she’s got a contract for September, they’ll utilize that I’ve got a guy that just finished up his residency. Now he’s a doctor, he went to an ER he’s only been an ER doctor for three months. Those are,

Jason Hartman 1:08:53
those are pretty secure jobs though. Medical, you know, Doctor, dentists, that kind of thing. But the normal role is to a year right So that’s a quite good question. So to do a cashout, refi How long do you have to have that loan or let it season? That’s the terminology. How long do you have to let the loan season before you can do a cash out refinance? Or can you even do a cash out refinance anymore? Does anyone have any equity, do cash out refinance,

Chaley 1:09:17
cash out refinance, you’ve got gotta be entitled for six months. And the other thing is, you cannot own more than four financed properties. And so that’s very, very important to do. Now, Fannie Mae came out about a year and a half ago, and with with investors that pay cash for their properties, now they’ve got a program. It’s called the delayed financing exception, which states that if you pay cash for the property, you can get your original purchase price back, plus rolling your closing cost, and we can utilize the appraised value to drive that loan to value. You’ve got a six month window to accomplish that.

Jason Hartman 1:09:50
Oh, that’s really interesting. So you this is right away.

Chaley 1:09:53
Yeah, correct. Yeah. So I said you’ve got a six month window that completed in once you go past six months, then it falls into

Jason Hartman 1:09:59
Let me frame this for people. So if you buy a property with cash, and I know a lot of you are doing that, and you want to finance it, this is not a refinance. It’s a delayed financing, you’ve acquired the property with cash. And then you finance it after the fact. And you have up to six months to direct. But is it 10 loans for loans, you can have up to 10 loans.

Chaley 1:10:19
And so that’s where that’s where the variation comes in. And that’s the distinction between that and an actual cash out refinance.

Jason Hartman 1:10:25
Okay. And, Charlie, it looks like you had something to say about that.

Chaley 1:10:28
Yeah, just I just wanted to clarify the wait time on the delayed financing rule, there is no seasoning, there’s no six months, you have to wait or have ownership for six months. And you can actually use the delayed financing rule. Even if you don’t have more than four finance properties. You could use that for property two or three so that you wouldn’t have to wait. And the rule of thumb is is that 70% loan to value. And let’s say that your property appraises for more than what you paid for it. You figure what 70% of the appraised value is as long as you’re not getting back more than what you put into it originally. You could theoretically get back to Every penny that you stuck in, if it’s on the

Jason Hartman 1:11:02
HUD, if there is so the question was does it sorry, rehab in the purchase price? And yes, if it’s on the HUD, it’s not outside of escrow or settlement. Is that?

Chaley 1:11:12
Okay, I’ve got a question. One thing that a ridiculous amount of paperwork still applies. Yeah. So just because you own it, for some reason, people getting the idea because they already own it, and that it’s worth more than what they paid for it that all sudden it lightens the load note, the load is still just as happy if not heavier.

Jason Hartman 1:11:28
Now, here’s one that I really want you to address, because I know everybody in this room, you know, one time or another is having a challenge with this one. I know our local market specialist Starr, and that is the issue of appraisals. Ah, nobody’s asked this. This one needs to be discussed for sure. So appraisals are they’re just tough. It seems like the banks are just there. They’ve overcorrected. At the height of the financial stupidity, they were valuing properties way higher than they should have been. And now the pendulum instead of swinging to the middle, it’s swinging back. Completely the other way. And property, the value is there and they won’t even give you an appraisal so you can get the loan.

Chaley 1:12:07
Yeah, that comes up a lot. Some of the changes to the industry include big changes to the appraisal h back h Vcc. And what does that mean? Home valuation?

Jason Hartman 1:12:17
Correct. Oh, someone actually knew that. Who said that? Okay. Are you in the business? Okay, well, no acronyms, folks.

Chaley 1:12:29
So now all all appraisals are ordered through third parties called AMC appraisal management companies, all of them. One of the things that we’ve been able to adopt is we have our own self managed MCs in many of the markets that we’re in. So we have been lucky in being able to do that because what happens is, is that we maintain just a little bit extra control. When you’ve got the problem. I think in a lot of cases with the appraisals coming in low or having issues with that, as you’ve got appraisers that are first of all, they don’t really understand rental property. They don’t understand the rehab that goes into it. They’re scared of their own shadow these days, because of all the new regulations. And maybe they live 100 miles from the subject property. They don’t know the area, they don’t know the neighborhoods. So it’s, it’s problematic. So we were able to adopt our own self managed AMC. And in certain markets, what we’ve done is we’ve gone to our vendors and our agents that are on the ground and said, give us five or 10, appraisers that you know, that are within a 10 mile radius that know your work that know the market, they know the neighborhoods, and we put them on our panel. So it’s still a random selection. But we’ve narrowed the playing field a little bit so that we’re getting nine times out of 10. We hope, good solid appraisals. I mean, it still happens but that’s helped us kind of combat that kind of touchy issue. Anybody else

Chaley 1:13:45
lucky to have the same situation. We self managed our own ordering. Talk to the people in the marketplaces, find out who is doing a good job in that area. Have them in there, send those names in have our appraisal ordering department, review them, put them on the panel. Again, we can Pick the exact appraiser but at least we’ve been able to narrow it down to the six eight people that know what they’re doing in that area. That is a huge difference. So I haven’t seen a lot of problems with appraisals lately. I don’t know about you guys, I don’t know I’ve had one or two in the last five, six months to come in lower than the than the purchase price. And I think also the individual selling the homes are getting realistic about what they’re selling it for. And the appraisers that we’re choosing are a little bit better than what we had in the past.

Chaley 1:14:26
We don’t we don’t have our own internal AMC. We actually use a company out of Canada called solidified but what I what I’ve done and that is every one of the markets that I work in and I’ve done basically the same thing set up a panel, we put them on the podium on the approved list, and those are the only people I traveled all my markets, I know all my appraisers and and they have to understand because the product that you folks are buying is unique. And when I won’t mention any names here, but when we had some of the other appraisal management companies that were out there, what they would do is you know you Get an appraiser would go out there and say okay, so if you buy it for 40, you put 10 into it, so only worth 50. And that’s not the case, because a lot of times these bank, you know, these properties are bought or foreclosure auctions are bought from banks, the banks themselves and that when they sell them, they can’t make a profit, they can only sell it for what’s worth what the property is owed to them. So if they’ve got a property that’s 40, that’s worth 60 there’s a perception or at least some equity that’s in that property, that’s not being taken into account. And so I ensure that the appraisers that we have and that, you know, they recognize that they, they’ll get the information as far as like the sales history, they’ll see that and we’ll get, you know, get some good values. The other thing that I see right now, and that is I’m seeing a little bit more prevalent is and we’ve seen with some, you know, other companies is sometimes lenders charge you know, they’ll have two appraisals done, or maybe they’ll do a desk review. Now, one of the issues that you have right now is when you send an appraiser another appraisals work over to see like a desk review or he may not see at the same So I’ve had a few issues in that area, not a lot of them. But we can still continue to see that because an appraisal really is, it’s just an opinion of value.

Chaley 1:16:08
Sure. The question is, he’s getting ready maybe to file his 2012 tax return. And I had mentioned earlier that it’s a good idea to have someone if you’re, if you’re building your strategy for where you want to go with your your real estate investments, before that tax return is filed, let us take a look at it. Because the computation for figuring out that Schedule E rental income is very specific. And if we don’t look at it, and tell you where you stand, then you may file and be put out of the game for for qualifying this year. Because it’s very difficult to file a tax return and then say, oops, I want to amend it, I, I probably wouldn’t mess with something like that you want to if you there are going to be changes made maybe take less of the the loss last year and forward it over to 2014 if it means that you can continue to invest this year, and that’s the primary goal, then that’s probably what you want to do. And we’re really good about I mean, that’s what we do, we should be able to look at your schedule. Until you that I would I would rather talk to you about it just so that we can we can get get down to specifics. I’ll answer your question

Chaley 1:17:09
to try and answer

Chaley 1:17:10
that. Yeah. Well, and, you know, I’ll, we’ll talk

Jason Hartman 1:17:14
sounds like a backroom deal here.

Chaley 1:17:17
But ultimately that in that situation, your accountants trying to get you to pay in a position to pay the least amount of taxes by having they’re trying to get you to pay more

Jason Hartman 1:17:25
so you can qualify for loans.

Chaley 1:17:26
You’re trying to get to the most write offs we’re trying to show you where sometimes those write offs can impede your ability to show income, and that is very legit. Well, let me repeat a wire this wire the rules switching so much. So when he started on his path to 10 at one, two and three, the rules were one way now as he’s getting closer to attend, it seems like it’s changing. He has to provide things differently, things are getting more difficult. The reasons being is we have to keep adapting to what’s happening in the market in the sense that we were not adapting let’s we’re adapting to Fannie Mae and the rules as much as you guys are. What’s happening is you’ve got fraud schemes, things like that. What I’ve been running into personally was one fraud scheme in a particular area. What some lenders had to buy back and eat some things. So they take a look at and say, What are the elements of all those loans that we had to eat that several million dollars? We’re going to take whatever element that is and apply it to our guidelines across the board. Now, is that good strategy for them? I don’t think so. But so what they’re doing, because what is what is what is a wounded, wounded animal do it backed into a corner and bites everything. That’s what they’re doing right now. It’s a knee jerk reaction. So some of these responses you’re gonna see, you’re gonna see changes that we won’t even know until we get your file into underwriting, it will look perfect. We’re proud of ourselves, we finally got one of these things built because some of you suckers haven’t that thick, and we send it in to get underwritten and it comes back with more conditions than we’d ever seen. And because of situations like that they adapt things before we have a chance to even see them because of the fact that things go south on the loan. So they’re constantly evaluating the loans on it on a minute by minute basis, as they take them back or as they foreclose on. And add those elements into their guidelines and keep adapting them. That’s why I keep saying it’s a moving target. Well, the question is, is you guys will leave here with three people’s contacts? And how do you go into the multiple different markets that you’re going to go into, and not spread yourself between three different people four or five, because you think one may be better than the other. What I always tell everybody is it’s a relationship business, it’s gonna suck whether you work with me, him or her either, either. It’s just not gonna be fun. So pick who you want to deal with. You’ve got to pick with some because when it comes down to it, you’re both you’re gonna be standing in the ring next to one of us on our knuckles, we’ll be up there gonna be bloody, we’re gonna be hurting, and we’re going to be tired. But you’re going to get to the finish line somehow. But basically, you want to be fighting with, that’s what it boils down to. We’re all bound by some rules. So do you want to fight with me? Do you want it you want to be in the in the ring with me? By your side or by your side? Or Steve by your side? It’s up to you. That’s what I say.

Jason Hartman 1:19:51
Let me mention something about that property tracker. That is by the way, if you go to Jason Hartman calm and you click on Resources, Scroll down property tracking and analysis software. That’s where you get property tracker in holds your entire 1003 loan application. And your schedule of real estate owned, it makes it so much easier. Just use property tracker, I’m telling you, really you need to use it. So, Zack, I think, what’s next?

Chaley 1:20:22
Well, depreciation is an item that you can add back. Um, what I what I’m going to do is I’m going to expand upon the the tax return so that, you know, a lot of times the clients, obviously I’d love to see a draft, I don’t get it, you know, I don’t get them. And so what I’ll do is I’ll get the finished product. There’s some tricks that I shouldn’t say tricks, but there’s some things that I look at that go back. First thing I go back is I go back to the depreciation schedule and look at when the property is placed in service. So I’ve had people come to me and says, My lender says, You know, I bought it in September, that because it’s on a tax return, so I’ve got to utilize that figure and that’s not true. There’s a certain amount of common sense is allowed because let’s face it might be job or our jobs up here are necessarily disqualify us to try and get a loan. And my, I guess my, my comment to the customer, or the underwriters is when I’m looking at this, if you bought a property in September, I know right off the bat, when you had repairs, you probably have some additional costs that you’re not going to incur that one time expenses. And so you’ve had some added expenses that aren’t going to be the norm. The other the other thing that we look at too, and that is, is it if I utilize that figure eating and so if I’m only utilizing four months, is that really a true representation as far as the property’s ability to cash flow? And the answer is probably no, it’s probably not. So in my in my side what I’ve been able to do and that is substitute and utilize the rental agreements in those situations. So there’s a little bit more I really don’t feel that when I look at the set of tax returns that I’m looking at somebody that is my place to tell you how to how your accountant to do your tax returns because one I’m not licensed. I’m not definitely not going to prison for that one. But you know, it’s so, you know, my expertise is landing in your account and your account, he does your tax returns for you. You know, I’m going to look at him if it works, it works now. Can I give my two cents? Absolutely.

Jason Hartman 1:22:14
Okay, I think that’s good on that one. Fernando gets the last question, and we’ve got to adjourn for dinner. Okay, so the question is basically, investors, if you’re following our plan, you want to diversify and maybe you want to be do 10 properties in three different markets. That would be kind of a logical amount of diversification, in my opinion. And the question is, if you go with one lender and do three properties, and another lender and do four and another lender and do three, there’s your 10. How do you do the closing order of those? Can you do all those apps at the same time, pick 10 this weekend, and do that? Is that what you’re getting at? Yeah, you know, in other words, you’re going to be in the purchase process and closing them all over them. Basically, yes,

Chaley 1:23:01
the answer is yes, you can do that. Do I advise that? No, I think that for ease of brain damage or or limiting brain damage for all of us, you probably want to do some due diligence. And I believe all of us can learn in all the markets that you’re going to be in, correct? Yes, yes, we’re going to be in all those different markets. So what my recommendation would be is speak to each of us and or a few others, find who you’re comfortable with, and that’s where you want to stay. It comes down to ultimately you can do this but it’s going to be very challenging for you to do so. I think you’d be opening up a can of worms that I don’t, I don’t think you would enjoy that process is already a very convoluted process as it is. The other thing is, is very important, you guys this is so important. disclosure. If you do do this, if you decide you want to buy two from Memphis and I’m going to close those for you and and two more in Missouri and Steve is going to close them. It is highly important that you disclose to all of us what’s going on because you could lose deals by not disclosing That’s really a big deal. Fannie and Freddie have gotten really weird about that.

Chaley 1:24:04
So that type of situation, you’re not going to hide it. It’s like my mom, she always knew. So we’re going to find out, and then it’s going to slow, it’s going to slow down your process. So really a worst case scenario, you tell us that you like chocolate, vanilla, and strawberry. And you’re going to do all three. And so what we’re going to do is we’re just going to conference call a lot. And we’re just going to need you to say, Hey, you guys are open to talk. And we’re going to share information like crazy. That way we get them done on time. Otherwise, I find out two weeks later that she’s got a couple and then two weeks later, I find out he’s got a couple of Well, I’m delaying the heck out of your loans because I have to keep updating your paperwork. So if that’s the situation, like you were told, just disclose, if you disclose everything and keep it out in the open and we’re able to do our job because everything’s in the open, then it makes it much easier for you to hit your target date. It’s when you have to start finding stuff out two weeks later, three weeks later, that it just becomes a maddening mess and you start to hate us,

Jason Hartman 1:24:54
Steve, any comments and then we’ll wrap up this is it.

Chaley 1:24:56
Well, it definitely is a headache and yes, you can do it. You You know, I’ve had a couple of situations now where there’s been a couple of states where I’m not licensed in, they’ve tried to buy a couple properties there, they’re doing a couple of properties with me say, like in Memphis, and their purchase transactions, when I tell them everything’s got to close at the same time, they just have a cow. And it shows and working with another lender is not always the easiest thing to do. Because a lot of times those other lenders when these two can probably agree with me on this one, and a lot of the people out there in the industry just don’t have our level of expertise and just don’t understand how to get this through. So a purchase transaction, they all have to close at the same time. And I know I get a lot of people to come back and say, why is that? And I said, Because really, the only way to paint you paint that picture of you financially is to have them all close. That means I’ve got to have a settlement statement on the ones that you’re closing with the other lender and the first payment lender to be able to calculate their payments. The other thing we’ve get into an ad if you buy if you buy buy a property cash, I still need to know about it because I still need to hit you for the taxes. insurance if you utilize private money now that’s a little bit different story. So if you’re buying a cup, if you’re buying four properties with private money and they’re spread out, I’ll hit you with the private money payment. I’ll hit you with the taxes on that property and then I can close them i can i can stagger the closes.

Jason Hartman 1:26:16
Good. So our panel will all be at dinner. So sit next to them. You guys sit far apart. So you there’s going to be a crowd around each of you. And now you can pick your flavor. So give them a big hand. Okay. All right.

Chaley 1:26:32
Thank you guys.

Disclaimer announcement 1:26:39
This show is produced by the Hartman media company All rights reserved for distribution or publication rights and media interviews, please visit www dot Hartman media.com or email media at Hartman media.com. Nothing on this show should be considered specific personal or professional. Advice. Please consult an appropriate tax legal real estate or business professional for individualized advice. opinions of guests are their own. And the host is acting on behalf of Platinum properties, investor network, Inc. exclusively.