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Two-time Emmy and Three-time NAACP Image Award-winning, television Executive Producer Rushion McDonald interviewed Latrease Price-Gistard.
Purpose of the Interview
The interview aims to educate listeners on the mortgage industry, highlight the role and benefits of working with an independent mortgage broker, and provide practical advice on home financing options, credit challenges, and programs that support homeownership. It also shares Latrease’s entrepreneurial journey and lessons learned.
Key Takeaways
-
Background and Career Path
- Latrease has a finance degree and started in investment operations in 1999.
- Transitioned from auto financing and co-owning a car dealership to mortgage lending.
- Became an independent mortgage broker in 2022 after being laid off during rising interest rates.
-
Role of an Independent Mortgage Broker
- Holds her own license and partners with multiple lenders to offer tailored loan products.
- Advocates for borrowers to ensure they get the right product, not just approval.
- Specializes in helping first-time buyers, self-employed individuals, and those with unique challenges.
-
Home Financing Insights
- Reverse Mortgages: Typically for seniors 62+, often used by those 75+ with equity and limited retirement funds. Provides tax-free cash without monthly payments; debt settled upon sale or refinance.
- Zero Down Payment Programs: Offers up to 3% for down payment, attached to the mortgage; other programs provide up to 5% for down payment and closing costs.
- FHA 203K Program: Allows buyers to finance home purchase and renovations in one loan—ideal for fixer-uppers.
-
Credit Challenges
- Programs exist for credit scores as low as 500, but require higher down payments (10–20%) and result in higher interest rates.
- Latrease consults and provides “what-if” scenarios to help clients improve credit over time.
-
Entrepreneurial Lessons
- Mistakes: Starting without enough capital and a strong pipeline; economic timing matters.
- Advice: Build capital, secure a solid client pipeline, and understand market conditions before going independent.
Notable Quotes
-
On independence:
“As a broker, you serve as that advocate for your borrower to make sure they’re getting the right loan product.” -
On reverse mortgages:
“The beauty of it is there are no monthly payments going back to the institution. The debt is paid off when the home is sold or refinanced.” -
On credit challenges:
“Programs go as low as 500 credit score, but those borrowers need 10–20% down.” -
On entrepreneurial advice:
“Make sure you have strong capital and a solid pipeline before stepping out on faith.” -
On perseverance:
“It’s all about follow-through. It’s all about your dream and whether you want to make it happen.”
#SHMS #STRAW #BEST
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Episode Transcript
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Speaker 1 (00:00):
Welcome to my show. I'm Rashon McDonald, a host of
Money Making Conversations Masterclass, where we encourage people to stop
reading other people's success stories and start planning your own. Now,
you don't want to miss an episode, so please take
a MoMA right now to follow or subscribe to Money
Making Conversations Masterclass.
Speaker 2 (00:16):
It's free.
Speaker 1 (00:17):
You can follow me on iHeartRadio, app, Spotify, Apple Podcasts,
or wherever you listen to your podcast. New Money Making
Conversations Masterclass episodes drop daily. I want to keep you
on alert because my guests provide tips on how you
can uplift your community, improve your financial planning, motivation, or
advice on how to be a successful entrepreneur. Now, let's
(00:38):
get this podcast started. My guest is an independent mortgage broker.
She's committed to delivering exceptional service to a focus on
accountability and securing the right mortgage for your home. They'll
ensure a smooth and seamless home buying process. Please work
with the Money Making Conversations Masterclass. Latre's price get stalled
(01:00):
like French that gest you got to put that get
star except from Houston, Texas. The tree so you know
down there y'all do all the San Antonio people just started.
Speaker 2 (01:11):
How you doing? My friend the tree, So, how you doing?
Speaker 3 (01:13):
I'm doing great? How are you doing?
Speaker 2 (01:15):
Finance? What's your what's your background?
Speaker 1 (01:17):
When you start talking about, you know, mortgage brokering and
brokery and accountability and finance, give us a little history
on you before we get started and get deep into
this interview.
Speaker 4 (01:26):
Well, I am originally from San Antonio, Texas, and I
have a bachelor's degree in finance, and I've been in
finance since nineteen ninety nine. Where I originally started out
working in investment operations, which consists of like settlements operations
and investment accounting, and then like around twenty twelve or so,
(01:50):
I moved over to doing.
Speaker 3 (01:53):
Auto of financing.
Speaker 4 (01:55):
My husband and I we opened up a car dealership
and I was part owner also our finance manager, where
I helped customers get financing for their cars.
Speaker 3 (02:06):
We focused a lot.
Speaker 4 (02:07):
On first time buyers and just pretty much took care
of them to make sure that they were not being
taken advantage of and getting good interest rates and good
payments that they could maintain. Because a lot of the
customers were like your college students and first time buyers
who had just who had just actually just graduated from college.
And then right in the middle of all that, you know, well,
(02:30):
at the time, there was a lot of favor with
auto lending and so forth, and so a lot of
that changed, unfortunately, And so then I started looking into
mortgage financing just to kind of like compliment what I
was already doing. And that's pretty much how I ended
up in mortgages. I started well, I obtained my license
in twenty eighteen, and then in twenty twenty two I
(02:54):
decided to go ahead and take the leap and become
an independent mortgage broker where I.
Speaker 2 (02:58):
Have my I don't think you just took a leap.
You're a planner.
Speaker 1 (03:01):
You're a planner now because you're dealing with numbers, so
you already know about taxes, you already know about understanding
the you know that profit margin that you have to
achieve now. As in the car dealer industry, first of all,
are rarely meet a person of color who said they
(03:21):
went in the car dealership. You know, you re meet
car sellers of car mechanics of people of color. How
did y'all get into the auto industry from a dealership standpoint.
Speaker 4 (03:35):
Well, actually, my husband he had his first car dealership
in San Antonio in the early nineties and it went
fairly well for him. He ventured off into doing some
other things, into promotions and so forth, and then around
that time he decided to just go ahead and start
to do the car dealership again. But he didn't want
(03:56):
to do it the same way he did it before.
He decided to do it differently the time. And it
went very well for a while because it was around
the time when Obama was, you know, issuing out all
of the rescue money, and so the lending guidelines were
very helpful for those who were having a difficult time,
you know, at that particular time. And unfortunately they had
(04:19):
to go back and tighten up those lending guidelines again
and that changed the industry. And then COVID came right
behind that and made it even more tighter.
Speaker 1 (04:29):
So cool, now, just be could I ask this one
car question about car dealerships. You know, you know, I've
had a lot of used cars in my life and
I've traded them in. Now, should I have haggled to
get the price down the trees because I always traded
in my used car, which would have been a better
(04:49):
rite that you way that you would have recommended, and
just listening and people listening may follow your advice or
they might do their own thing.
Speaker 2 (04:56):
What would you suggest haggling a trade in and used I.
Speaker 3 (05:00):
Think that you should do.
Speaker 4 (05:03):
Definitely negotiate and make sure that you get in the
right deal. And you know a lot of people they
go to Kelly Bluebook to reference the value for their car,
but I personally recommend you going to Nada dot com
their Power by Genie Powers and Associates now and they
tend to give a better explanation of what the value
(05:24):
is of your car because it gives it whether or
not if it's in good condition or a bad condition,
or if it's even in a syllable condition, and so
you can kind of you can negotiate off of those numbers.
A lot of times of dealerships they don't. They just
assume that you don't really know what the value of
your car is. And if you come in and you
(05:44):
and you're educated and you can, you know, discuss on
those particular parameters, you could say, well, no, you know
my car, you know, I just did this, this and
this to my car, so it's actually valued at this
particular number.
Speaker 3 (05:57):
This is what I would like to have because they're.
Speaker 4 (05:59):
Going to pay you what they're going to pay you
and turn back around and sell it and make sure
that they get.
Speaker 2 (06:06):
Yeah, like anything, do your homework.
Speaker 1 (06:11):
Yes, going there and have a stand a value stand
on your vehicle before you start trying to ask somebody
what they think is going to cost.
Speaker 2 (06:20):
Yes, them, because.
Speaker 3 (06:21):
They're going to make sure they make their money.
Speaker 1 (06:24):
Stay with us more Money Making Conversation master Class coming
up next. Welcome back to Money Making Conversation masteric Class
with me Rashaun McDonald.
Speaker 2 (06:35):
Well.
Speaker 1 (06:36):
I brought you on the show to talk about being
an independent mortgage broker.
Speaker 2 (06:39):
The word independent is powerful. Yes, you know.
Speaker 1 (06:43):
How are you an independent mortgage broker? First question? Secondly,
why are you an independent mortgage broker?
Speaker 3 (06:51):
Okay?
Speaker 4 (06:53):
I am an independent mortgage broker because I basically hold
my own license as a broker. So I go out
and I established relationships with various lenders to provide different
loan options to my borrowers. You know, I have lenders
that will catered to individuals who may be self employed
(07:13):
who may have a difficult time getting approved. I also
have lenders who cater to first time buyers. I have
lenders that cater to those who may need help, you know,
due to citizenship, you know issues and so forth. I mean,
there's all type of lenders out there. And so as
a broker, you serve as that advocate for your borrower
(07:37):
to make sure that they're getting the right loan product
and not necessarily just getting approved, but you know, do
they have the right product that fits their particular needs
and so forth.
Speaker 2 (07:48):
Okay, so, but but why.
Speaker 4 (07:53):
Well, what made me become well, decide to become a
mortgage broker was I had actually been laid off at
a company.
Speaker 3 (08:01):
It was a builder.
Speaker 4 (08:03):
It was like in late twenty twenty two, the interest
rates has started to really go up, and so they
had lost like sixty eight percent of their contracts due
to borrowers falling out because they could no longer fit
the home because they were in the middle of construction
and so forth.
Speaker 3 (08:20):
And so I was faced with.
Speaker 4 (08:22):
Having to go and find something, find new employment and
so forth. And so I just noticed that, you know,
the commission negotiations just did not fit my needs. And
so I'll just figure I might as well just go
ahead and advocate for people like I do, and also
keep my commissions.
Speaker 1 (08:41):
At the same time, there are certain things as you
gain equity. That's the big thing. That's the goal in
any house is to gain equity. Explain to us the
value of reverse mortgages when you hit a certain age
and you have a certain equity in your house.
Speaker 4 (08:58):
Okay, Well, I will say this due to the fact
that a lot of people do not really have very
much knowledge in reversed mortgages. The usage of them are
only like about two to three percent of senior citizens,
and it's typically in the age range like around seventy
five and older. And that's typically when people will you know,
(09:20):
will have enough equity in their home and or have
exhausted their retirement funds and have high medical costs and
so forth, and so it's just a way for them
to be able to have tax free cash coming into
their home. They could either take a lump sum amount,
or they can get they can receive a monthly payment,
(09:40):
or they can open up a line of credit where
they just withdraw the money out every month. I feel
like it is a good option for those, you know,
for individuals that are in that particular age range who
have exhausted their retirement funds or have limited retirement funds.
And you know, it's unfortunate that people typically do not
(10:05):
have enough education, you know, about them because what happens
sometimes is is that you know, they'll take out the
reverse mortgage and the family is unaware and when they
pass away, they don't know that the debt is there.
And so but what the family can do is if
they want to keep the keep the home and the
family they can refinance it, you know, if they want
(10:25):
to keep it, or they can just sell it to
pay off the debt. Flowers while they're here. You know,
they paid all the equity into the house, so you know.
Speaker 1 (10:38):
Okay, let me ask you this question right quickly. The
tree I'm talking to, the tree's price gets started. And
independent mortgage broker based in Houston, Texas. Okay, you take
out a lump sum? How does that work? How you
paying it back? If you have no money and you
having financial issues and you do a lump sum or
(10:59):
how exactly walk me through how a reverse mortgage works
and how exactly does it benefit because if you if
you take some money, they're going to want it back.
So how are they making those payments back of the
lump sum? Are the monthly songs that they're requesting.
Speaker 4 (11:16):
Well, the beauty of it is there are no monthly
payments going back to the institution. The data is paid
off when the home is is paid off, you know,
like when the person passes away, the family can either
refinance it into their name or they can sell the home.
Speaker 1 (11:33):
Yeah, I'll see what you're saying. So so let's use
some numbers. So if the house is two hundred and
fifty thousand dollars, then you can do a reverse mortgage
on the equity or the value of the home.
Speaker 3 (11:45):
The equity, that's what you're saying.
Speaker 4 (11:47):
Yes, and you would need fifty percent of equity in
the home to be able to do it.
Speaker 1 (11:54):
Okay, cool, So that means that you can do a
reverse mortgage on one hundred and twenty five thousand dollars.
Speaker 2 (11:59):
Yes, if it's two hundred and fifty.
Speaker 1 (12:02):
Thousand dollars house, and then they receiving payments, they don't
have to make any payments back.
Speaker 2 (12:09):
But that's why you were saying, Rashan.
Speaker 1 (12:11):
Generally people who do these reverse mortgages are in their seventies.
Speaker 2 (12:15):
Yes, because it's not something you want to do in
your fifties.
Speaker 1 (12:18):
No, no, okay, cool, Now that.
Speaker 4 (12:23):
I have to be at least sixty two years old.
I'm just saying that typically most of the barbers in
that range are around the seventy five.
Speaker 1 (12:32):
It's range, right, so it has to be sixty two
years old. So do you handle those type of situations?
There do zero down payment programs. Okay, I'm speaking to
Lutrese's price. Get stared. What exactly is that zero down
payment program?
Speaker 4 (12:52):
What they do is they loan the amount that's needed
for the down payment.
Speaker 3 (12:57):
It's up to like three percent of the loan.
Speaker 4 (13:01):
And what they do is they put the loan, they
attach it to the actual mortgage itself, and then it
is paid. It is paid off once the loan is
either sold or either refinance, but up until then it
is part of the part of the mortgage. But I
also do have other down payment assistance programs that will
(13:22):
give up to five percent of the value of the loan.
So what happens is some people they'll use like the
three to three and a half percent that's required for
the down payment, and then the remaining of the five
percent to pay off to help with the closing costs.
Speaker 5 (13:37):
Please don't go anywhere We'll be right back with more
Money Making Conversations Masterclass. No need for you to do
me a favor right now to follow or subscribe to
Money Making Conversation. It's free and you can find it
on the iHeartRadio app, Spotify, Apple Podcasts, or wherever you
get your podcasts. Please do me that favor, follow or
(13:58):
subscribe money any Making Conversations. Welcome back to Money Making
Conversations master Class hosted by me Rashaan McDonald. Money Making
Conversation master Class continues online and Moneymaking Conversations dot com
and follow Money Making Conversations master Class on Facebook, X
and Instagram. Let's walk through the process of how you
(14:20):
handle clients latrese when they come to you, the educational process.
How does your business model for you work and how
does it benefit the customers that come to you.
Speaker 4 (14:32):
Well, the first thing that I ask each person when
they called is if they've purchased a home before and
how soon do they need to buy.
Speaker 3 (14:43):
A home.
Speaker 4 (14:45):
And then I'll ask like key points like how long
they've been on their job, what their credit score is like,
and what you know? Do they have any money for
down payment? You know anything and savings And I just
kind of like gauge off of what they tell me
and just kind of like take it from there. But
I do when I do offer the different type of
(15:07):
loan products, I do explain like the difference between the
you know, between each kind because you know, you you
have fah A v A conventional and U S D
A and and each one caters to a particular you
know customer, you know, whereas you I have like fah
A you know, that's that's that's really more for like
(15:28):
the customer who may need a lower down payment but
also may have like a lower credit score than than
the average, or have like a lot of open debt,
because that particular program allows for a higher DTI versus
someone who could go conventional, who may have like a
(15:48):
higher credit score, but their down payment will start like
around three percent and go up to like about five percent.
Speaker 3 (15:55):
And so I guess to answer you a.
Speaker 1 (15:57):
Question, is or it permits their interest rate.
Speaker 4 (16:03):
It is a very it's a very key component, you know,
because we do have programs that will go as low
as five five hundred credit score, but of course quite
naturally those who are like I would say, like around
seven to twenty and above will have your more favorable
you know, interest rates.
Speaker 1 (16:22):
Okay, let's talk to it, because there's a lot of
people out there in that five hundred ranges probably listening
to my show now. But you can still help people
that's a pretty low score. Now, that's a pretty low
score out there trying to buy a home. Yes, how
do you help somebody in that five hundred to six
hundred credit score range get in the house, because right
(16:42):
now I think that's I think this be nearly impossible.
Speaker 2 (16:46):
But you're saying you can make that happen.
Speaker 4 (16:48):
Yes, The main thing with that particular group is that
they're going to have to have a higher down payment.
They're going to be the ones who's going to need
that ten to twenty percent down in most cases because
those programs are not going to allow down payment assistance
and the interest rate is going to raise the payment,
(17:10):
which is going to make the DTI hard to fit.
So that particular group of people is going to really
need that big down payment in order for that to work.
Speaker 2 (17:17):
Okay, cool.
Speaker 1 (17:18):
So that means that, again, do you work with individuals
latrees over a six month period or do you coach
them along? Somebody comes to you, say in January and
they said look, this is where I stand them at
five hundred, and you said, well, come back to me,
(17:38):
do your homework. You get your credits trade by making
consistent monthly payment. Let's see, we can get that credit
score up. Because right now, if you roll into a
plan right now, your interest rates is going to be
higher and your down.
Speaker 2 (17:52):
Payment is going to be higher. Do you work with
individuals like that.
Speaker 3 (17:56):
Latrese, Yes, I do.
Speaker 4 (17:58):
I do offer the the opportunity to consult while they
get ready and so forth, and I do offer suggestions
and so forth. I have to be very careful about,
you know, credit counseling, per se, but I do offer
suggestions and you know, go over there file and just
give them what's called a what if scenario, And it
(18:19):
is it is provided by the credit bureau, and not
not the credit bureau, but but the credit reporting agencies
that I use. They have a report called what if
scenario and I go in and I'll put you know,
like say that they paid these particular credit cards down
or what have you, this is what it could possibly
look like if they did this and so forth, and
I would give that to them, and you know, we'll
(18:40):
work over you know, their plan over those months and
so forth, and I will say about sixty percent of
the people actually follow through. And really, do you know
come back and say, okay, listen, it's.
Speaker 2 (18:55):
All about follow through.
Speaker 1 (18:55):
It's all about your dream, all about whether you want
to make it happen. Yes, and that's what we're talking about, right, Yes,
making it, putting it, putting forth one hundred percent. Now
in this world as being an independent mortgage broker, what
frustrates you about it? And what benefits do you feel
you bring to the table.
Speaker 4 (19:14):
Okay, I will say what frustrates me is, you know,
basically what we just talk about just now, is the
customer that does not follow through or the customer that
is not honest and forthcoming.
Speaker 2 (19:27):
Do you ever get mad in the little tree?
Speaker 1 (19:28):
Do you ever get mad if some of your customers
come on that this is money making conversations? Okay, somebody
wasted your time for three or four months.
Speaker 2 (19:36):
Now.
Speaker 3 (19:37):
Yeah.
Speaker 1 (19:38):
Basically, the reason she's an independent because a lot of
traditional outlets won't even look at you, they won't even
walk in the front door. She is giving you an
opportunity because early in our conversation she spoke about she
sets up relationships. She's kind of like it's a lot
of people out there, like independent insurance people. Well, you
(19:59):
can come there and they can do insurance with anybody
out there. And that's what you're saying that you can
do as an independent You're not limited to one particular
financial outlet.
Speaker 2 (20:09):
Correct, Yes.
Speaker 1 (20:13):
And now with that being said, do you have a
place you'll go to outlet? You don't have to say
the name and why is that outlet that you go
to you feel works for you the most in your
independent platform and the type of customers that you bring
to the table.
Speaker 4 (20:28):
I'll be more than happy to say that my outlet
would be you not at Wholesale Mortgage u w M.
They are okay, number one wholesale lender in the you know,
in the States, and they have a very quick turnaround time.
My executive there is top notche The process is just
(20:51):
is just it's impeccable, you know, every time. And what
the customer that that I would take there is actually
well I can't say the majority of them, but I
would just say.
Speaker 3 (21:07):
The customers that they cater to are more of like
you know, your well.
Speaker 4 (21:12):
Your experienced buyers is where's your first time buyers? But
a particular product that I like that they have there
is there one time construction loan, like say you want
to buy land and build a house at the same time. Well,
you know, traditionally you would have to finance both separately,
but they will do the loan all in one, you know,
(21:34):
And that's what That's one of the main things that
I really like about them.
Speaker 3 (21:39):
And so just as a process and the loan products
that they offer.
Speaker 2 (21:45):
Cool.
Speaker 1 (21:46):
As we close out the interview, I want to talk
about the benefits of utilizing FHA two thousand and three
is it two thousand and three K program.
Speaker 3 (21:54):
Two or three K?
Speaker 4 (21:55):
That is that is a home innovation, yes, And what's
I don't know is you can buy a fixer upper
at the you know, and and and finance the renovations
as well as as the home within the the within
that that one transaction and that's that's where the f
(22:15):
h A two or three K comes into play.
Speaker 3 (22:17):
And it just it could be something.
Speaker 4 (22:19):
As low as as you know, replacing windows all the
way up to remediating mold. It just depends on what
the needs are for it, you know, for your project
and so forth.
Speaker 3 (22:31):
And so.
Speaker 1 (22:33):
That particular problem when you stay that when you stay
in the f A h A and F stands.
Speaker 4 (22:38):
For what Federal Housing Association and that that's basically the
the the government agency that monitors those particular types of
loans and they and that's it's it's basically there to
protect the lenders against the the you know, in case
the bar defaults.
Speaker 3 (22:58):
On the loan.
Speaker 2 (23:01):
Okay, cool, okay cool.
Speaker 1 (23:02):
And this particular program you're telling me, a lot of
people are not aware of it. And I always get
mad when I hear that, and I say mad, mad,
but I guess frustrated mad because there are so many
programs out there that are to benefit the buyer, but
nobody knows because guess what, they're not promoted. So how
does one find out by programs like this that can
benefit them that somehow don't make it trickle down to
(23:24):
the people that need them.
Speaker 4 (23:26):
Well, I mean you would have to consult a mortgage broker,
you know, because it's not you know, just everyday knowledge
that is out there.
Speaker 3 (23:36):
Now. Most people know about.
Speaker 4 (23:37):
FAH loans, but they're not as well aware of the
of the FAHA two or three K program that is
there a lot of times people think that they have
to buy the house first and then finance the renovations
and so forth. But if this particular product, you can
do both at the same time being.
Speaker 1 (23:53):
An independent broker. First of all, that's fearlessness. You seem
to be a person. If someone wanted to do this
for a living, somebody wanted to step out on faith
or just go for a leap. What steps would you
tell people to make sure that you did that you
will not do that would help them be successful as
independent as an independent mortgage broker, I would do, you
(24:18):
would not do because you made the mistakes to respond
that was I can tell you right now. There were
some things I did when I started my company and
I hired people who were not qualified for the job.
They were family, they were old friends, and I paid
them checks. They were overpaid because I knew they needed to,
you know, paid a certain amount of expenses for their family.
Speaker 2 (24:39):
I didn't. I just had the bad business model.
Speaker 1 (24:41):
Yes, and I would never do that again and so,
and it was a hard decision because it eventually it
led to me laying these same people off that I
was trying to support. So those are bad business decisions.
Now you became an independent mortgage broker, what did you
do or would recommend so people would make the same
(25:02):
mistakes that you did, because we all make mistakes when
we start businesses.
Speaker 3 (25:05):
I would say that I would have had more capital.
Speaker 4 (25:10):
Before deciding to not move forward with with with other employment.
And that's because what I had to do was since
I did not have as much capital, I had to
kind of like do a lot of side gigs and
so forth that took me away from my business and
so forth, and so and then also to have a
(25:31):
stronger pipeline. You know, even though I had been had
been originating loans for as long as I had been,
I don't feel like I had a full enough pipeline
to really take off. So not having a capital and
not having a full pipeline, that that kind of stagnated me,
and it made it a little bit more difficult to
really you know, get going and so forth, and so
(25:52):
and then also the time frame. It was during a
time when interest rates were just out of control, and
it made it really hard to get people, you know,
approved and so forth, and so I would say to
definitely look at the economic you know market at that
particular time, make sure you have that strong, solid pipeline,
(26:14):
and then have that capital so that you can focus
more on the business versus you know, just just going
for it.
Speaker 2 (26:21):
Thank you for listening to this episode.
Speaker 6 (26:23):
Now I need for you to do me a favor
right now to follow or subscribe to Money Making Conversation.
It's free and you can find it on the iHeartRadio app, Spotify,
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me that favor, follow or subscribe Money Making Conversations.
Speaker 2 (26:42):
Keep winning.
Welcome to my show. I'm Rashon McDonald, a host of
Money Making Conversations Masterclass, where we encourage people to stop
reading other people's success stories and start planning your own. Now,
you don't want to miss an episode, so please take
a MoMA right now to follow or subscribe to Money
Making Conversations Masterclass.
Speaker 2 (00:16):
It's free.
Speaker 1 (00:17):
You can follow me on iHeartRadio, app, Spotify, Apple Podcasts,
or wherever you listen to your podcast. New Money Making
Conversations Masterclass episodes drop daily. I want to keep you
on alert because my guests provide tips on how you
can uplift your community, improve your financial planning, motivation, or
advice on how to be a successful entrepreneur. Now, let's
(00:38):
get this podcast started. My guest is an independent mortgage broker.
She's committed to delivering exceptional service to a focus on
accountability and securing the right mortgage for your home. They'll
ensure a smooth and seamless home buying process. Please work
with the Money Making Conversations Masterclass. Latre's price get stalled
(01:00):
like French that gest you got to put that get
star except from Houston, Texas. The tree so you know
down there y'all do all the San Antonio people just started.
Speaker 2 (01:11):
How you doing? My friend the tree, So, how you doing?
Speaker 3 (01:13):
I'm doing great? How are you doing?
Speaker 2 (01:15):
Finance? What's your what's your background?
Speaker 1 (01:17):
When you start talking about, you know, mortgage brokering and
brokery and accountability and finance, give us a little history
on you before we get started and get deep into
this interview.
Speaker 4 (01:26):
Well, I am originally from San Antonio, Texas, and I
have a bachelor's degree in finance, and I've been in
finance since nineteen ninety nine. Where I originally started out
working in investment operations, which consists of like settlements operations
and investment accounting, and then like around twenty twelve or so,
(01:50):
I moved over to doing.
Speaker 3 (01:53):
Auto of financing.
Speaker 4 (01:55):
My husband and I we opened up a car dealership
and I was part owner also our finance manager, where
I helped customers get financing for their cars.
Speaker 3 (02:06):
We focused a lot.
Speaker 4 (02:07):
On first time buyers and just pretty much took care
of them to make sure that they were not being
taken advantage of and getting good interest rates and good
payments that they could maintain. Because a lot of the
customers were like your college students and first time buyers
who had just who had just actually just graduated from college.
And then right in the middle of all that, you know, well,
(02:30):
at the time, there was a lot of favor with
auto lending and so forth, and so a lot of
that changed, unfortunately, And so then I started looking into
mortgage financing just to kind of like compliment what I
was already doing. And that's pretty much how I ended
up in mortgages. I started well, I obtained my license
in twenty eighteen, and then in twenty twenty two I
(02:54):
decided to go ahead and take the leap and become
an independent mortgage broker where I.
Speaker 2 (02:58):
Have my I don't think you just took a leap.
You're a planner.
Speaker 1 (03:01):
You're a planner now because you're dealing with numbers, so
you already know about taxes, you already know about understanding
the you know that profit margin that you have to
achieve now. As in the car dealer industry, first of all,
are rarely meet a person of color who said they
(03:21):
went in the car dealership. You know, you re meet
car sellers of car mechanics of people of color. How
did y'all get into the auto industry from a dealership standpoint.
Speaker 4 (03:35):
Well, actually, my husband he had his first car dealership
in San Antonio in the early nineties and it went
fairly well for him. He ventured off into doing some
other things, into promotions and so forth, and then around
that time he decided to just go ahead and start
to do the car dealership again. But he didn't want
(03:56):
to do it the same way he did it before.
He decided to do it differently the time. And it
went very well for a while because it was around
the time when Obama was, you know, issuing out all
of the rescue money, and so the lending guidelines were
very helpful for those who were having a difficult time,
you know, at that particular time. And unfortunately they had
(04:19):
to go back and tighten up those lending guidelines again
and that changed the industry. And then COVID came right
behind that and made it even more tighter.
Speaker 1 (04:29):
So cool, now, just be could I ask this one
car question about car dealerships. You know, you know, I've
had a lot of used cars in my life and
I've traded them in. Now, should I have haggled to
get the price down the trees because I always traded
in my used car, which would have been a better
(04:49):
rite that you way that you would have recommended, and
just listening and people listening may follow your advice or
they might do their own thing.
Speaker 2 (04:56):
What would you suggest haggling a trade in and used I.
Speaker 3 (05:00):
Think that you should do.
Speaker 4 (05:03):
Definitely negotiate and make sure that you get in the
right deal. And you know a lot of people they
go to Kelly Bluebook to reference the value for their car,
but I personally recommend you going to Nada dot com
their Power by Genie Powers and Associates now and they
tend to give a better explanation of what the value
(05:24):
is of your car because it gives it whether or
not if it's in good condition or a bad condition,
or if it's even in a syllable condition, and so
you can kind of you can negotiate off of those numbers.
A lot of times of dealerships they don't. They just
assume that you don't really know what the value of
your car is. And if you come in and you
(05:44):
and you're educated and you can, you know, discuss on
those particular parameters, you could say, well, no, you know
my car, you know, I just did this, this and
this to my car, so it's actually valued at this
particular number.
Speaker 3 (05:57):
This is what I would like to have because they're.
Speaker 4 (05:59):
Going to pay you what they're going to pay you
and turn back around and sell it and make sure
that they get.
Speaker 2 (06:06):
Yeah, like anything, do your homework.
Speaker 1 (06:11):
Yes, going there and have a stand a value stand
on your vehicle before you start trying to ask somebody
what they think is going to cost.
Speaker 2 (06:20):
Yes, them, because.
Speaker 3 (06:21):
They're going to make sure they make their money.
Speaker 1 (06:24):
Stay with us more Money Making Conversation master Class coming
up next. Welcome back to Money Making Conversation masteric Class
with me Rashaun McDonald.
Speaker 2 (06:35):
Well.
Speaker 1 (06:36):
I brought you on the show to talk about being
an independent mortgage broker.
Speaker 2 (06:39):
The word independent is powerful. Yes, you know.
Speaker 1 (06:43):
How are you an independent mortgage broker? First question? Secondly,
why are you an independent mortgage broker?
Speaker 3 (06:51):
Okay?
Speaker 4 (06:53):
I am an independent mortgage broker because I basically hold
my own license as a broker. So I go out
and I established relationships with various lenders to provide different
loan options to my borrowers. You know, I have lenders
that will catered to individuals who may be self employed
(07:13):
who may have a difficult time getting approved. I also
have lenders who cater to first time buyers. I have
lenders that cater to those who may need help, you know,
due to citizenship, you know issues and so forth. I mean,
there's all type of lenders out there. And so as
a broker, you serve as that advocate for your borrower
(07:37):
to make sure that they're getting the right loan product
and not necessarily just getting approved, but you know, do
they have the right product that fits their particular needs
and so forth.
Speaker 2 (07:48):
Okay, so, but but why.
Speaker 4 (07:53):
Well, what made me become well, decide to become a
mortgage broker was I had actually been laid off at
a company.
Speaker 3 (08:01):
It was a builder.
Speaker 4 (08:03):
It was like in late twenty twenty two, the interest
rates has started to really go up, and so they
had lost like sixty eight percent of their contracts due
to borrowers falling out because they could no longer fit
the home because they were in the middle of construction
and so forth.
Speaker 3 (08:20):
And so I was faced with.
Speaker 4 (08:22):
Having to go and find something, find new employment and
so forth. And so I just noticed that, you know,
the commission negotiations just did not fit my needs. And
so I'll just figure I might as well just go
ahead and advocate for people like I do, and also
keep my commissions.
Speaker 1 (08:41):
At the same time, there are certain things as you
gain equity. That's the big thing. That's the goal in
any house is to gain equity. Explain to us the
value of reverse mortgages when you hit a certain age
and you have a certain equity in your house.
Speaker 4 (08:58):
Okay, Well, I will say this due to the fact
that a lot of people do not really have very
much knowledge in reversed mortgages. The usage of them are
only like about two to three percent of senior citizens,
and it's typically in the age range like around seventy
five and older. And that's typically when people will you know,
(09:20):
will have enough equity in their home and or have
exhausted their retirement funds and have high medical costs and
so forth, and so it's just a way for them
to be able to have tax free cash coming into
their home. They could either take a lump sum amount,
or they can get they can receive a monthly payment,
(09:40):
or they can open up a line of credit where
they just withdraw the money out every month. I feel
like it is a good option for those, you know,
for individuals that are in that particular age range who
have exhausted their retirement funds or have limited retirement funds.
And you know, it's unfortunate that people typically do not
(10:05):
have enough education, you know, about them because what happens
sometimes is is that you know, they'll take out the
reverse mortgage and the family is unaware and when they
pass away, they don't know that the debt is there.
And so but what the family can do is if
they want to keep the keep the home and the
family they can refinance it, you know, if they want
(10:25):
to keep it, or they can just sell it to
pay off the debt. Flowers while they're here. You know,
they paid all the equity into the house, so you know.
Speaker 1 (10:38):
Okay, let me ask you this question right quickly. The
tree I'm talking to, the tree's price gets started. And
independent mortgage broker based in Houston, Texas. Okay, you take
out a lump sum? How does that work? How you
paying it back? If you have no money and you
having financial issues and you do a lump sum or
(10:59):
how exactly walk me through how a reverse mortgage works
and how exactly does it benefit because if you if
you take some money, they're going to want it back.
So how are they making those payments back of the
lump sum? Are the monthly songs that they're requesting.
Speaker 4 (11:16):
Well, the beauty of it is there are no monthly
payments going back to the institution. The data is paid
off when the home is is paid off, you know,
like when the person passes away, the family can either
refinance it into their name or they can sell the home.
Speaker 1 (11:33):
Yeah, I'll see what you're saying. So so let's use
some numbers. So if the house is two hundred and
fifty thousand dollars, then you can do a reverse mortgage
on the equity or the value of the home.
Speaker 3 (11:45):
The equity, that's what you're saying.
Speaker 4 (11:47):
Yes, and you would need fifty percent of equity in
the home to be able to do it.
Speaker 1 (11:54):
Okay, cool, So that means that you can do a
reverse mortgage on one hundred and twenty five thousand dollars.
Speaker 2 (11:59):
Yes, if it's two hundred and fifty.
Speaker 1 (12:02):
Thousand dollars house, and then they receiving payments, they don't
have to make any payments back.
Speaker 2 (12:09):
But that's why you were saying, Rashan.
Speaker 1 (12:11):
Generally people who do these reverse mortgages are in their seventies.
Speaker 2 (12:15):
Yes, because it's not something you want to do in
your fifties.
Speaker 1 (12:18):
No, no, okay, cool, Now that.
Speaker 4 (12:23):
I have to be at least sixty two years old.
I'm just saying that typically most of the barbers in
that range are around the seventy five.
Speaker 1 (12:32):
It's range, right, so it has to be sixty two
years old. So do you handle those type of situations?
There do zero down payment programs. Okay, I'm speaking to
Lutrese's price. Get stared. What exactly is that zero down
payment program?
Speaker 4 (12:52):
What they do is they loan the amount that's needed
for the down payment.
Speaker 3 (12:57):
It's up to like three percent of the loan.
Speaker 4 (13:01):
And what they do is they put the loan, they
attach it to the actual mortgage itself, and then it
is paid. It is paid off once the loan is
either sold or either refinance, but up until then it
is part of the part of the mortgage. But I
also do have other down payment assistance programs that will
(13:22):
give up to five percent of the value of the loan.
So what happens is some people they'll use like the
three to three and a half percent that's required for
the down payment, and then the remaining of the five
percent to pay off to help with the closing costs.
Speaker 5 (13:37):
Please don't go anywhere We'll be right back with more
Money Making Conversations Masterclass. No need for you to do
me a favor right now to follow or subscribe to
Money Making Conversation. It's free and you can find it
on the iHeartRadio app, Spotify, Apple Podcasts, or wherever you
get your podcasts. Please do me that favor, follow or
(13:58):
subscribe money any Making Conversations. Welcome back to Money Making
Conversations master Class hosted by me Rashaan McDonald. Money Making
Conversation master Class continues online and Moneymaking Conversations dot com
and follow Money Making Conversations master Class on Facebook, X
and Instagram. Let's walk through the process of how you
(14:20):
handle clients latrese when they come to you, the educational process.
How does your business model for you work and how
does it benefit the customers that come to you.
Speaker 4 (14:32):
Well, the first thing that I ask each person when
they called is if they've purchased a home before and
how soon do they need to buy.
Speaker 3 (14:43):
A home.
Speaker 4 (14:45):
And then I'll ask like key points like how long
they've been on their job, what their credit score is like,
and what you know? Do they have any money for
down payment? You know anything and savings And I just
kind of like gauge off of what they tell me
and just kind of like take it from there. But
I do when I do offer the different type of
(15:07):
loan products, I do explain like the difference between the
you know, between each kind because you know, you you
have fah A v A conventional and U S D
A and and each one caters to a particular you
know customer, you know, whereas you I have like fah
A you know, that's that's that's really more for like
(15:28):
the customer who may need a lower down payment but
also may have like a lower credit score than than
the average, or have like a lot of open debt,
because that particular program allows for a higher DTI versus
someone who could go conventional, who may have like a
(15:48):
higher credit score, but their down payment will start like
around three percent and go up to like about five percent.
Speaker 3 (15:55):
And so I guess to answer you a.
Speaker 1 (15:57):
Question, is or it permits their interest rate.
Speaker 4 (16:03):
It is a very it's a very key component, you know,
because we do have programs that will go as low
as five five hundred credit score, but of course quite
naturally those who are like I would say, like around
seven to twenty and above will have your more favorable
you know, interest rates.
Speaker 1 (16:22):
Okay, let's talk to it, because there's a lot of
people out there in that five hundred ranges probably listening
to my show now. But you can still help people
that's a pretty low score. Now, that's a pretty low
score out there trying to buy a home. Yes, how
do you help somebody in that five hundred to six
hundred credit score range get in the house, because right
(16:42):
now I think that's I think this be nearly impossible.
Speaker 2 (16:46):
But you're saying you can make that happen.
Speaker 4 (16:48):
Yes, The main thing with that particular group is that
they're going to have to have a higher down payment.
They're going to be the ones who's going to need
that ten to twenty percent down in most cases because
those programs are not going to allow down payment assistance
and the interest rate is going to raise the payment,
(17:10):
which is going to make the DTI hard to fit.
So that particular group of people is going to really
need that big down payment in order for that to work.
Speaker 2 (17:17):
Okay, cool.
Speaker 1 (17:18):
So that means that, again, do you work with individuals
latrees over a six month period or do you coach
them along? Somebody comes to you, say in January and
they said look, this is where I stand them at
five hundred, and you said, well, come back to me,
(17:38):
do your homework. You get your credits trade by making
consistent monthly payment. Let's see, we can get that credit
score up. Because right now, if you roll into a
plan right now, your interest rates is going to be
higher and your down.
Speaker 2 (17:52):
Payment is going to be higher. Do you work with
individuals like that.
Speaker 3 (17:56):
Latrese, Yes, I do.
Speaker 4 (17:58):
I do offer the the opportunity to consult while they
get ready and so forth, and I do offer suggestions
and so forth. I have to be very careful about,
you know, credit counseling, per se, but I do offer
suggestions and you know, go over there file and just
give them what's called a what if scenario, And it
(18:19):
is it is provided by the credit bureau, and not
not the credit bureau, but but the credit reporting agencies
that I use. They have a report called what if
scenario and I go in and I'll put you know,
like say that they paid these particular credit cards down
or what have you, this is what it could possibly
look like if they did this and so forth, and
I would give that to them, and you know, we'll
(18:40):
work over you know, their plan over those months and
so forth, and I will say about sixty percent of
the people actually follow through. And really, do you know
come back and say, okay, listen, it's.
Speaker 2 (18:55):
All about follow through.
Speaker 1 (18:55):
It's all about your dream, all about whether you want
to make it happen. Yes, and that's what we're talking about, right, Yes,
making it, putting it, putting forth one hundred percent. Now
in this world as being an independent mortgage broker, what
frustrates you about it? And what benefits do you feel
you bring to the table.
Speaker 4 (19:14):
Okay, I will say what frustrates me is, you know,
basically what we just talk about just now, is the
customer that does not follow through or the customer that
is not honest and forthcoming.
Speaker 2 (19:27):
Do you ever get mad in the little tree?
Speaker 1 (19:28):
Do you ever get mad if some of your customers
come on that this is money making conversations? Okay, somebody
wasted your time for three or four months.
Speaker 2 (19:36):
Now.
Speaker 3 (19:37):
Yeah.
Speaker 1 (19:38):
Basically, the reason she's an independent because a lot of
traditional outlets won't even look at you, they won't even
walk in the front door. She is giving you an
opportunity because early in our conversation she spoke about she
sets up relationships. She's kind of like it's a lot
of people out there, like independent insurance people. Well, you
(19:59):
can come there and they can do insurance with anybody
out there. And that's what you're saying that you can
do as an independent You're not limited to one particular
financial outlet.
Speaker 2 (20:09):
Correct, Yes.
Speaker 1 (20:13):
And now with that being said, do you have a
place you'll go to outlet? You don't have to say
the name and why is that outlet that you go
to you feel works for you the most in your
independent platform and the type of customers that you bring
to the table.
Speaker 4 (20:28):
I'll be more than happy to say that my outlet
would be you not at Wholesale Mortgage u w M.
They are okay, number one wholesale lender in the you know,
in the States, and they have a very quick turnaround time.
My executive there is top notche The process is just
(20:51):
is just it's impeccable, you know, every time. And what
the customer that that I would take there is actually
well I can't say the majority of them, but I
would just say.
Speaker 3 (21:07):
The customers that they cater to are more of like
you know, your well.
Speaker 4 (21:12):
Your experienced buyers is where's your first time buyers? But
a particular product that I like that they have there
is there one time construction loan, like say you want
to buy land and build a house at the same time. Well,
you know, traditionally you would have to finance both separately,
but they will do the loan all in one, you know,
(21:34):
And that's what That's one of the main things that
I really like about them.
Speaker 3 (21:39):
And so just as a process and the loan products
that they offer.
Speaker 2 (21:45):
Cool.
Speaker 1 (21:46):
As we close out the interview, I want to talk
about the benefits of utilizing FHA two thousand and three
is it two thousand and three K program.
Speaker 3 (21:54):
Two or three K?
Speaker 4 (21:55):
That is that is a home innovation, yes, And what's
I don't know is you can buy a fixer upper
at the you know, and and and finance the renovations
as well as as the home within the the within
that that one transaction and that's that's where the f
(22:15):
h A two or three K comes into play.
Speaker 3 (22:17):
And it just it could be something.
Speaker 4 (22:19):
As low as as you know, replacing windows all the
way up to remediating mold. It just depends on what
the needs are for it, you know, for your project
and so forth.
Speaker 3 (22:31):
And so.
Speaker 1 (22:33):
That particular problem when you stay that when you stay
in the f A h A and F stands.
Speaker 4 (22:38):
For what Federal Housing Association and that that's basically the
the the government agency that monitors those particular types of
loans and they and that's it's it's basically there to
protect the lenders against the the you know, in case
the bar defaults.
Speaker 3 (22:58):
On the loan.
Speaker 2 (23:01):
Okay, cool, okay cool.
Speaker 1 (23:02):
And this particular program you're telling me, a lot of
people are not aware of it. And I always get
mad when I hear that, and I say mad, mad,
but I guess frustrated mad because there are so many
programs out there that are to benefit the buyer, but
nobody knows because guess what, they're not promoted. So how
does one find out by programs like this that can
benefit them that somehow don't make it trickle down to
(23:24):
the people that need them.
Speaker 4 (23:26):
Well, I mean you would have to consult a mortgage broker,
you know, because it's not you know, just everyday knowledge
that is out there.
Speaker 3 (23:36):
Now. Most people know about.
Speaker 4 (23:37):
FAH loans, but they're not as well aware of the
of the FAHA two or three K program that is
there a lot of times people think that they have
to buy the house first and then finance the renovations
and so forth. But if this particular product, you can
do both at the same time being.
Speaker 1 (23:53):
An independent broker. First of all, that's fearlessness. You seem
to be a person. If someone wanted to do this
for a living, somebody wanted to step out on faith
or just go for a leap. What steps would you
tell people to make sure that you did that you
will not do that would help them be successful as
independent as an independent mortgage broker, I would do, you
(24:18):
would not do because you made the mistakes to respond
that was I can tell you right now. There were
some things I did when I started my company and
I hired people who were not qualified for the job.
They were family, they were old friends, and I paid
them checks. They were overpaid because I knew they needed to,
you know, paid a certain amount of expenses for their family.
Speaker 2 (24:39):
I didn't. I just had the bad business model.
Speaker 1 (24:41):
Yes, and I would never do that again and so,
and it was a hard decision because it eventually it
led to me laying these same people off that I
was trying to support. So those are bad business decisions.
Now you became an independent mortgage broker, what did you
do or would recommend so people would make the same
(25:02):
mistakes that you did, because we all make mistakes when
we start businesses.
Speaker 3 (25:05):
I would say that I would have had more capital.
Speaker 4 (25:10):
Before deciding to not move forward with with with other employment.
And that's because what I had to do was since
I did not have as much capital, I had to
kind of like do a lot of side gigs and
so forth that took me away from my business and
so forth, and so and then also to have a
(25:31):
stronger pipeline. You know, even though I had been had
been originating loans for as long as I had been,
I don't feel like I had a full enough pipeline
to really take off. So not having a capital and
not having a full pipeline, that that kind of stagnated me,
and it made it a little bit more difficult to
really you know, get going and so forth, and so
(25:52):
and then also the time frame. It was during a
time when interest rates were just out of control, and
it made it really hard to get people, you know,
approved and so forth, and so I would say to
definitely look at the economic you know market at that
particular time, make sure you have that strong, solid pipeline,
(26:14):
and then have that capital so that you can focus
more on the business versus you know, just just going
for it.
Speaker 2 (26:21):
Thank you for listening to this episode.
Speaker 6 (26:23):
Now I need for you to do me a favor
right now to follow or subscribe to Money Making Conversation.
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