Sadly, banks continue to stumble, mortgage rates is on the rise with higher imports and lower exports, yet the FED is to lessen cost. So, where do we grow and safeguard our money now? something will eventually break if they keep raising interests and quantitative tightening.
Well agreed, I'm quite lucky exposed to finance at early age, started job at 19, purchased first home at 28, got married shortly afterwards to raise kids early. Going forward, got laid-off at 40 amid covid '19 outbreak, immediately consulted with an advisor in order to stay afloat and after subsequent investments, I'm barely 25% short of $1m ballpark goal as of today.
I've shuffled through a few advisors in the past, but settled with *Camille Alicia Garcia* her service is exemplary and she's a genius in portfolio diversification. I'd suggest you research her further on your browser, sure you'll find her basic info.
Appreciate this recommendation, hopefully I can get some insight to where the economy is headed and strategies to beat inflation with when I hear back from Camille .
Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
There are advisors in cities around you but I needed services of one who can guide me irrespective of location. Catherine Morrison Evans comes highly recommended especially in times like this. I am hedging and haven't lost much to the recession. I found her in 2020 when the market was at an all time low. Look her up and thank me later.
In summary 1. find someone rich enough to move out of their house and issue it to you in the form of a loan at a convenient rate for you. 2. find someone poor enough who's going to foreclose on a house and assume their loan for them. Mainly, if you don't want to get the average rate don't go through a bank.
1. Find someone who owns real estate free and clear (retirees) who don’t want to hold the real estate anymore and would rather collect interest payments from the buyer for the remainder of their lives. 2. Find someone who has low equity and can no longer make payments on their property (Pre foreclosure) and offer them an alternative where they don’t get foreclosed on. Yup!
great advice brother but will seller's bank allow to transfer the same interest rate without any extra charges ? why would they do that ? can you clarify @@InvestLikeMike_
Yup - completely different market compared to two years ago. Gotta watch out for those property taxes in Texas too. Interest rates just came up within the past few weeks too.
Also - JUST CLOSED on a property with a 2.75% interest rate AND $70k if seller financing at 0% interest for 30 years! I’m telling you guys - subject to is amazing!
There is an assumable loan in my area for 2.75% but the house is old and would need a complete remodel , I don’t think it’s worth it if I have to take out 100k to pay them off and also remodel home…thoughts ? They purchased home in 2021 for 275k va loan , they want 320k for it so not much equity imo
Wouldn’t you be building equity by renovating it? Problem with that is that you can’t refinance after renovating - cause then you’re replacing the 2.75% loan with a 7%. You could do a heloc though. If the monthly payment makes sense - it could be a good deal. Schedule a call for more insight!
The reason most loans come from banks is that banks take on a big enough number of loans to safeguard themselves from failed loans. With the option youre presenting your are asking an individual to assume the risk of non repayment fron another individual. Those are NOT good odds
Yeah you need to find distressed properties. You should join Pace morbys fb group - there are people who post deals in the group and you can see what type of deals are being done ✔️
Only an idiot would loan their house at 4% when they could earn 5.4% risk free in bonds. That would be pretty funny to find a seller this desperate to unload a house.
I've heard you can offer the seller a lump sum as an incentive so they don't walk away fully empty handed. "You can say I'll give you the 10k you've paid and I'll take over the loan." Hopefully you'll recover that money when the house appreciates.
Buying down the points generally isn’t worth it unless you expect rates to stay high for the foreseeable future. In our current market, most people expect rates to come down within a year - so it wouldn’t necessarily make sense to buy points right now considering that the rates might be lower in a year from now anyways.
@@treeguyable Nice! But just as I suspected. I don’t think any of us would mind 7% to 13% on homes under $100k. Unfortunately where I reside the crappiest homes start at 350k. 7% on 350k upwards coupled with property taxes, mortgage insurance, homeowner’s insurance, HOAs, etc makes monthly housing payment impossible for most.
Says the current rate is sitting just over 7% immediately shows a figure of 7.753% which is clearly not just over 7% but more like about 8%…. What are you doing man it’s gotta be drugs… 😅
@@InvestLikeMike_ Oh, I'm fine. I took out a 10-year, fixed-rate loan in July 2021 at 1.875%. And that's without any discount points. Suffice it to say I'm a Happy Camper. I was just curious how many "like" 300 was.
You could do that but remember you have a 10% penalty and a taxable event. In my opinion, pulling money out of a 401k is the last resort of you have no cash and no equity. I’m certain situations it can be a great move - especially with bonus depreciation at 80% this year. Schedule a call to learn more!
Also bear in mind that 401k plans limit loans to no more than $50,000. Basically, the IRS sent out an interpretive letter in the early-1990's stating that any loan in excess of $50k would likely be considered to be a withdrawal. Hence, all plans set $50k as a cap.
Funny you say that - I just closed on a property with a 2.75% interest rate AND the seller gave me 70k of seller financing for 0% interest for 30 years (no ballon). You’d be surprised at the type of deals like this
It’s a good play for some sellers looking to avoid paying capital gains tax at the time of selling. Also the risk is low. Let’s see sell traditionally: $300,000 purchase price -6% commissions ($18k) - closing cost ($2k) - capital gains ($42k) Walk away with $238,000 and put in a 5.4% interest account after 5 Yrs that is worth $309,584 If he sells seller finance at 4% interest $300k purchase price He gets $60k down payment day 1 Interest on $240k for 5 years is $48k So if there is a balloon payment in 5 years that seller makes $348k And if the buyer defaults seller takes the house back and keeps all money collected Sounds like a good deal to me.
Sadly, banks continue to stumble, mortgage rates is on the rise with higher imports and lower exports, yet the FED is to lessen cost. So, where do we grow and safeguard our money now? something will eventually break if they keep raising interests and quantitative tightening.
ideally, you should consider financial planning to get the best results with your money, notwithstanding economy situation
Well agreed, I'm quite lucky exposed to finance at early age, started job at 19, purchased first home at 28, got married shortly afterwards to raise kids early. Going forward, got laid-off at 40 amid covid '19 outbreak, immediately consulted with an advisor in order to stay afloat and after subsequent investments, I'm barely 25% short of $1m ballpark goal as of today.
@@maryHenokNft this sounds considerable! think you know any advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
I've shuffled through a few advisors in the past, but settled with *Camille Alicia Garcia* her service is exemplary and she's a genius in portfolio diversification. I'd suggest you research her further on your browser, sure you'll find her basic info.
Appreciate this recommendation, hopefully I can get some insight to where the economy is headed and strategies to beat inflation with when I hear back from Camille .
Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
@@LagerthaJackson I will be happy getting assistance and glad to get the help of one, but just how can one spot a reputable one?
I just closed on a property with a 2.75% interest rate and 70k of seller financing at 0% for 30 years. There are still good deals out there
There are advisors in cities around you but I needed services of one who can guide me irrespective of location. Catherine Morrison Evans comes highly recommended especially in times like this. I am hedging and haven't lost much to the recession. I found her in 2020 when the market was at an all time low. Look her up and thank me later.
In summary
1. find someone rich enough to move out of their house and issue it to you in the form of a loan at a convenient rate for you.
2. find someone poor enough who's going to foreclose on a house and assume their loan for them.
Mainly, if you don't want to get the average rate don't go through a bank.
1. Find someone who owns real estate free and clear (retirees) who don’t want to hold the real estate anymore and would rather collect interest payments from the buyer for the remainder of their lives.
2. Find someone who has low equity and can no longer make payments on their property (Pre foreclosure) and offer them an alternative where they don’t get foreclosed on.
Yup!
great advice brother but will seller's bank allow to transfer the same interest rate without any extra charges ? why would they do that ? can you clarify @@InvestLikeMike_
I see a lot of fools lining upfor this amazing deal. Loans never fail, thats why banks give loans to anyone.
Im using a VA loan. Zero down in TX.
My mortgage quote for a 349k property was $3300/mo at 7.25%. I pulled out in the option period. Its ridiculous.
Yup - completely different market compared to two years ago. Gotta watch out for those property taxes in Texas too. Interest rates just came up within the past few weeks too.
Same only in Georgia with veterans united!
Also - JUST CLOSED on a property with a 2.75% interest rate AND $70k if seller financing at 0% interest for 30 years! I’m telling you guys - subject to is amazing!
Closed in June with a 3.25 interest rate due to seller financing
Awesome - where is it and what type of property?
Thanks for explaining this 🎉
I believe the interest rate in the late 70s and early 80s was 10-14%.
JC.
This is so sad. When he tells you it's not clickbait, it's a clickbait.
On seller finance - Everyone wants their money today so good luck with that ! This likely isnt happening in the "working class" world.
How do you find these SUBJECT TO properties ?
I have videos on my channel about it! Go watch them and comment if you have any questions
There is an assumable loan in my area for 2.75% but the house is old and would need a complete remodel , I don’t think it’s worth it if I have to take out 100k to pay them off and also remodel home…thoughts ? They purchased home in 2021 for 275k va loan , they want 320k for it so not much equity imo
Wouldn’t you be building equity by renovating it? Problem with that is that you can’t refinance after renovating - cause then you’re replacing the 2.75% loan with a 7%. You could do a heloc though. If the monthly payment makes sense - it could be a good deal. Schedule a call for more insight!
I learned this in Pre-K
Nice!
The reason most loans come from banks is that banks take on a big enough number of loans to safeguard themselves from failed loans. With the option youre presenting your are asking an individual to assume the risk of non repayment fron another individual. Those are NOT good odds
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If you want to connect with me, schedule a call!
☎ 1:1 Call with Me: calendly.com/investlikemike
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How/where do you find Subject 2 properties? I'm guessing there is not much of these in a hot market like bay area?
Yeah you need to find distressed properties. You should join Pace morbys fb group - there are people who post deals in the group and you can see what type of deals are being done ✔️
Great content
awesome to see how you're channel has grown. Thanks for all the advice. Are you still working with Asish Acharya as your tax person? Thanks!
Hey - thanks for watching the content! Hopefully it’s been eye opening. Yes I still work with him - he’s awesome!
Paying additional points is paying prepaid interest upfront
I make 80k a year I have $40k in savings but I just can’t convince myself to buy a house due to rates being so high just stress full
Yeah idk man - 40k can’t really get you much right now unless you live in the Midwest. consider house hacking?
@@InvestLikeMike_ I have 40k for down payment looking to do first time home buyer in ocala fl
Only an idiot would loan their house at 4% when they could earn 5.4% risk free in bonds. That would be pretty funny to find a seller this desperate to unload a house.
Funny you say that - I bought a home where the seller financed $80k to me for 0% interest for 30 years with no balloon!
@@InvestLikeMike_We all hope to find an idiot or relative that does that for us.
yes very helpful
All of those are options but as rare as unicorns or aren’t as attractive in actual transactions.
They are increasingly more common than you think. There is a duplex in Dallas that I am talking to that will offer a 2-1 buy down right now.
Great video Mike! I see the growth you've been having on YT! Let's go 💪! I have to ask to: what's your camera setup?
Thanks Tiffany! I have a Sony a6400, Sigma 16mm lens, and a $150 soft box. The most important thing isn’t necessarily the camera - it’s the lighting!
How do you get seller financing to work tho
What do you mean? You basically have an IOU with the seller and you pay them on a monthly basis
10:30 isn't another Factor how much has already been paid on the mortgage?
Like if the seller already paid 10k or 30k on the 500K mortgage?
Yup I made a more in depth video on subject to if you’re interested
I've heard you can offer the seller a lump sum as an incentive so they don't walk away fully empty handed. "You can say I'll give you the 10k you've paid and I'll take over the loan." Hopefully you'll recover that money when the house appreciates.
That's a pretty good idea
Lol it could be a huge game changer
내년에 집 사고 싶은데 공부 할수 있게 해줘서 감사합니다~
Can I ask a question if you have the money to pay 10 grand over the interest rate why not just use the money yourself to buy the point down
What do you mean “pay 10 grand over the interest rate”?
Buying down the points generally isn’t worth it unless you expect rates to stay high for the foreseeable future. In our current market, most people expect rates to come down within a year - so it wouldn’t necessarily make sense to buy points right now considering that the rates might be lower in a year from now anyways.
@InvestLikeMike_ then why pay 10k over asking just to have the seller buy down the rate for you?
Why not use the 10k to buy your own points
What do you mean
Bought my first house at 13% . Then , later, bought 2 more houses. Not a big deal.
The question is at what price?
@@DoctorDaniB 35,000 for the first, and the next 2 , can't remember exactly, like 75,000 and 90,000 maybe.
@@treeguyable Nice! But just as I suspected. I don’t think any of us would mind 7% to 13% on homes under $100k. Unfortunately where I reside the crappiest homes start at 350k. 7% on 350k upwards coupled with property taxes, mortgage insurance, homeowner’s insurance, HOAs, etc makes monthly housing payment impossible for most.
@@DoctorDaniB Yea, wasn't a big deal then... but now.....
@@DoctorDaniB Glad I bought my 3 when I did. I couldn't do it now.
Damn I thought bro was clickbaiting
😂😂
Says the current rate is sitting just over 7% immediately shows a figure of 7.753% which is clearly not just over 7% but more like about 8%…. What are you doing man it’s gotta be drugs… 😅
These are not plausible
Adding money is not a trick,click bait..
These are like 0.00000001% chances of happening therefore 4% rate is impossible in 2023.
Pace morby is buying like 300 homes a yea faith under 4% rates using subject to
@@InvestLikeMike_ How many is "like" 300 ?
You can watch his CZcams channel!
@@InvestLikeMike_ Oh, I'm fine. I took out a 10-year, fixed-rate loan in July 2021 at 1.875%. And that's without any discount points. Suffice it to say I'm a Happy Camper. I was just curious how many "like" 300 was.
That’s the deal of a lifetime right there.
Wait a minute, the buy down is only temporarily?!?!?!? Wtf buying home is sounds crazy right now
I’m under construct right now for a property - buy down is actually for primary homes. I’m buying an investment
Lennar offering 4.2% with 10k closing cost assistance.
Where?? Send me an email!
@@InvestLikeMike_ Texas
Also got 25k off the price
I’ve actually been looking for new builds because of this. Where did you buy?
@@InvestLikeMike_ lennar balmoral houston
Gotta love this bullshit. No chance someone takes your offer over a standard offer.
Well we found plenty of deals like this since this video has been posted
Can we take a loan out of our 401k to buy a property and will that rate be around 4%?
You could do that but remember you have a 10% penalty and a taxable event. In my opinion, pulling money out of a 401k is the last resort of you have no cash and no equity. I’m certain situations it can be a great move - especially with bonus depreciation at 80% this year. Schedule a call to learn more!
Also bear in mind that 401k plans limit loans to no more than $50,000. Basically, the IRS sent out an interpretive letter in the early-1990's stating that any loan in excess of $50k would likely be considered to be a withdrawal. Hence, all plans set $50k as a cap.
We’re are you Australian talking about
3-2-1 is a joke…This entire video is a joke. What seller in this market is offering to pay pts to a buyer. It’s absurd. Seller financing. Laughable.
Funny you say that - I just closed on a property with a 2.75% interest rate AND the seller gave me 70k of seller financing for 0% interest for 30 years (no ballon). You’d be surprised at the type of deals like this
Ok…
@@InvestLikeMike_ following up. The seller actually just gave me their house!
It’s a good play for some sellers looking to avoid paying capital gains tax at the time of selling. Also the risk is low.
Let’s see sell traditionally:
$300,000 purchase price
-6% commissions ($18k)
- closing cost ($2k)
- capital gains ($42k)
Walk away with $238,000 and put in a 5.4% interest account after 5 Yrs that is worth $309,584
If he sells seller finance at 4% interest $300k purchase price
He gets $60k down payment day 1
Interest on $240k for 5 years is $48k
So if there is a balloon payment in 5 years that seller makes $348k
And if the buyer defaults seller takes the house back and keeps all money collected
Sounds like a good deal to me.
We are talking with one right now😅