December 20, 2021 • 18 mins
Jay Veal is the CEO of INC Education, the #1 African American-owned private education company in the Southern US serving students of all ages in STEM. Additionally, he is the Founder and CEO of the Jay Veal Brand, the Dallas-based premier consulting firm that deploys education and business consultation services. He has recently been listed on Forbes Next 1000 Listmaker and 15-time award-winning educator and Credit & Financial Literacy Expert.
He breaks down entry-level ways for anyone entering the real estate market: from residential to commercial, things to pay attention to when looking at property, the significance of the relationship you have with your realtors, the numerous programs out there for first time home buyers, and so much more.
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Episode Transcript
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Speaker 1 (00:00):
Hey Money Movers, Welcome back to Money Moves, the daily podcast,
determined to give you the keys to the Kingdom of
financial stability, wealth and abundance. Hey Money Movers, Welcome back
to Money Moves, the Daily Podcast, determined to give you
(00:22):
the keys to the Kingdom of financial stability, wealth and abundance.
When you think of the American dream, it's almost ubiquitous
in this country that home ownership is an integral part
of that. Being able to say that this home where
I live is mine, that I purchased it, that my
hard earned dollars went into acquiring, is something so special
(00:43):
because it gives us feelings of accomplishment. Real estate ownership
and the limitations on that in this country are foundational
in what we see today. When O. W. Gurley bought
forty acres of land in Tulsa, Oklahoma, in nineteen o five,
Oklahoma had not yet become a state in the Union.
Upon becoming a state in nineteen o seven, one of
(01:04):
the first laws on the books made it illegal for
blacks and whites to live in the same areas, essentially
locking in the inevitability of the Greenwood District being restricted
to blacks only. Ultimately, Girley had to double down on
an investment into his own people, paving the way for
the success of what would become Black Wall Street. That
(01:25):
being said, home ownership rates among Blacks and Hispanics are
lower than any other racial group. Approximately forty percent of
Blacks own homes of Hispanics, and this compares to sixty
one percent of Asian and Pacific Islanders and of course
seventy six percent of whites. In fact, black home ownership
has decreased over the last fifteen years and has reached
(01:46):
an all time low that hasn't been seen since the
nineteen sixties. In fact, not one of the one cities
with the largest Black populations in America have a Black
ownership rate even close to that of ownership. It is
crucial that black and brown people start to pursue the
same real estate and ownership dreams as our white counterparts,
(02:10):
but also as those of ow Gurley's in our past history.
To help us understand what it is we really need
to consider when it comes to real estate is the
founder and CEO of the j Veal Brand as well
as the CEO of Ink Education. J Veal Jay. Thank
you so much for joining us today. We have appreciate it,
(02:31):
appreciate you invited me to come, and I'm glad I
had this conversation about what we can take back. Jay.
I'm so excited for you to be here today. Thank
you so much for joining us. And I don't want
to waste a minute. So let's jump right into talking
about real estate today. Excellent, So let's dive right in.
What would you say is really important to consider when
(02:52):
we start discussing real estate and ownership? Hey, thanks for
that question. I think that first of all, we have
to we have to understand it. Real estate is more
time faceted. Right when you're either owning owning homes or
you're investing in real estate, one thing that you have
to look at is what market do we have currently
right now? Right? One thing is that we're in a
seller's market currently in the United States, and a lot
(03:14):
of the real estate and homes and investment properties are
at an all time low in terms of inventory. So
you have to really look at the landscape of what's
going on now. I will say this, I know what
I did when I first centered around buying brand new homes. Um,
I stayed in them a couple of years or so,
and I gained equity and then I sold them at
a profit every time. But in addition to that, I
(03:35):
started to do things in the air, the AIRB and
B space. But you can do multiple different things in
the real estate game. You can do fixing flips, you
can do mobile homes, you can buy and hold, you
can do whole sale, and you can do rehab. There's
so many different things that you can do, and you
need to look at what is your long term goal?
Right Do you want to own homes? Do you want
people to rent, do you want to have some property
(03:56):
you know? Do you want to buy land? Do you
want to develop? Do you wanna have retail centers or
commercial real estate? So I think that first of all,
you have to figure out what you want to do.
And you know, I feel like oftentimes for our money
mover's audience, they get overwhelmed thinking, well, man, you've laid
out a whole bunch of things. But I just know
that real estate is something that I should look into.
(04:18):
So you also mentioned right now that it's a seller's market.
I don't want that to deter people from saying like, hey,
I'm a buyer, but I think what you're also saying
is do the research to understand, you know, how you
fit in, you know, so that you can get in
where you fit in. Absolutely so, even with the seller's market,
what's basically going on if those of you that are
not maybe familiar with that, there's minimal inventory to purchase,
(04:42):
drives up the home prices, right, and that drives them
up through the roof. I know here in Atlanta and
even in Dallas and other big cities, sellers are selling
at homes like crazy. But the problem is they're not
going at market rate. They're going higher than between thirty
five or six d K right on average. And so
a buyer's market is when homes are at all time low,
the market value is low, and there's a surplus and
(05:04):
home inventory. So I think that right now you have
to be cognizant, cognizant cognizant of where are you going
to fit in the market, how much really afford because
the prices are driving up, what do you re qualified
for and how much real estate are you are is
available for you to totally invest in at the end
of the day. Got it? Okay? So if we back
(05:26):
out a little bit, you've mentioned a couple of different ways,
and you know, I mean the real goal here is
to build wealth. So there's many ways that you can
enter into the real estate market. Residential real estate and
that could just be owning the home that you choose
to live in. There's commercial real estate. Can you give
us a couple you know, break down sort of the
entry level ways in which people can get into real estate.
(05:50):
So I think on the personal property side of the house,
you can you can buy a home, all right. I've
purchased three of them um in my past, and I
know that you can buy you can stay in it
for a little bit time reads or sell it at
a profit and then move on and keep doing that. Also,
you can go into airbnb. You can take your home
(06:10):
and you can airbnb either rooms out or the whole
home surface and and hopes of usual utilizing that income property.
And in addition to that, you can then have um
commercial property. Right you talk about commercial property. So underwriting
is based on you know, the underlying business at the
hand meeting that the properties you have can be potential
(06:30):
income and those expenses are things that you have to
look at to dictate how you're going to You're you're
going to build, how you're going to own and how
you're going to get lended money right now. In terms
of doing this, you may have leases for commercial real
estate right sometimes you can you you have you know,
six months free too and rend before paying back the loan.
(06:51):
So you have to look at how many benefits you
can get when you're looking at commercial real estate. Location matters.
We talked about that on the personal and the commercial side. Absolutely,
location always matters. Actually that's a perfect thing because I
think this is something that goes into part of the
research and development that people need to know before they
even decide to buy a property. Let's talk about some
(07:14):
of the ideas people need to pay attention to when
they're looking at a property. Is it the school districts? Like?
How do people know what a good property looks like?
So I know the law that I kind of go
by is where is the where is the property located?
And what is it? Buy it? Right? He said? Is
it by a great school district? Is it by other
(07:36):
development areas? Oftentimes when land is being developed, retail shops
are being built, new homes are being built, new apartments
are being built. Those are forecasting signs as to where
to really look in your next investment property or look
at your next um, your next residential you know, opportunity
right now. You can also look at the economic development
(07:56):
centers and go to some of those meetings and they'll say, hey,
we're gonna be building a you know, a a complex
in this amount of X amount of years. We're gonna
be building a retail center x amount of years. When
you know that and you go to the Economic Development
center meetings, you will know where to buy your real
estate and where to buy your your residential right. But again,
(08:18):
know your market area where you want to go into,
find out what your source of capital is gonna be. No,
the realtor and the brother analyze your values of equity
and home values, know your contracts, get your appraisals done,
and things of that nature. Now I'll put you well
on your way to start looking at where you want
to buy. Jay, you know you're bringing this up really
sparked something in my mind. I was thinking about my
(08:39):
aunt and she bought a house about twelve years ago.
It was in, you know, a very quiet neighborhood. It
wasn't very developed, but there were plans to put in
a whole food in the next like two years. So
as soon as they created that development, there was a
whole foods there. They started developing more and more. She
saw the price and value of her house, you know,
grow astronomically within a seven to ten year period. And
(09:01):
now she's sold it and she's recouped so much more
value and equity on that house. Absolutely. Well. You know,
businesses move, corporations moved to different locations. The one good
thing about Texas is the fact that they don't have
any state income tax. So what's happening is, you know,
different places, different corporate and they're moving to Dallas. Moved recently,
(09:25):
a big jewelry nity that just moved there recently. Boeing
has another office there. Microsoft has offices there. People are
just moving into the area. Amazon has more centers that
are moving to Dallas. So when you look at that,
look at what what are your opportunities and tax savings? Right,
do you have any state income taxes? Are there opportunities
(09:46):
where you can get some right offs? And when communities
moved to the area, that will say, hey, we know
what the what the gap is gonna look like for
when I sell my home, and what the tax and
centems are for when the corporation moves into the area.
So you want to buy when the next big, big
corporate entity is coming to the areas. Because one, you
(10:09):
want to look out for the value at a home, right,
you're gonna be valuable later on, or and then so
I can sell it, Or to do I buy it
quick enough so before they come in, I can get
it low, and then I can get that high sale
at the end of the day in about three to four.
I want to buy low and get the high sale. Absolutely, okay, J.
(10:29):
So this is perfect. Now we've done our research. I've
got a property in mind. Um, you know, I've got
a couple because I like to really, you know, play
my chips. Right, what's the first thing I need to
begin to do to start putting offers on a home?
I mean, the first thing you need to do is
to find a realtor, either a commercial realtor or if
(10:49):
it's a home, a regular residential property, find a realtor
that is on that side of the house. Right. Second
thing you should do is also have an offer, not
an offer letter, but you should have a preapproval in hand.
How much can you really qualify for either on the
residential side or the commercial side. Once you have those
in mind, look at Okay, now I know my properties
(11:12):
are gonna be I selected some I have my preapproval
in hand. Now I need to look at inspection, make
sure that that property or that commercial property is up
to code and up to speed. Do I need to
do any you know, repairs or ask for anything before closing?
Because you can do that. Sometimes people forget you don't
have to just take it home like it is when
you're purchasing, or take a resident commercial property like it is.
(11:34):
You can ask for things, right, how can I get
these things? The stiller may do those things for you
before you close. And then how much cash should I
bring the clothes? On the commercial side or the residential side,
make sure that I look at those contracts, find out
who my loan officer is gonna be, and what kind
of programs I can I can go into either on
(11:55):
the commercial real estate side or the residential real estate side. Also,
what is my credit score look like? If you don't
have sometimes often a year of traction or two years
traction when buying commercial real estate, they're gonna do what
look at your personal credit score? Now I started talking
about a lot of credit on clubhouse about back, because personally,
(12:15):
I have an eight forty and I'm like, listen, there
are ways for you to buy properties with different tiers
of credit. And if you're gonna go f h A,
if you're gonna go Va, if you're gonna go you know,
conventional things like that, it'll allow you to put certain
amounts down. So when you're buying either side of the
real estate game, commercial or residential, these are some of
(12:37):
the things that you need to check off on your
list to count down and say, am I really ready
to buy this property? And if so, here's how long
I need to wait. With commercial, sometimes you gotta wait
a whole year, six months to a year before you
actually close, but when you're looking around it feels like
that's a long time. But big properties, Yeah, and if
it's if if it's a residential and you're doing a
(12:58):
new bill, it could be three d six months before
you actually close on that house, right, But if it's
if it's something that's already built, it could be about
you know, a month or so. So J bring this
back to this, you know you you gave us so
much information there and how do people what do you
need to consider differently when you're considering owning a residential
property versus a commercial property. Right. So with the residential
(13:21):
property at hand, again, you have to you have to
look at what market you're trying to buy. First of all,
do your research, know the market, Do you have the
money to buy the property? Are you gonna finance it?
Are you gonna cash out? Right? Know the fees that
you're dealing with. Right, know that the seller's disclosure. If
you're buying a home, make sure you look at that
(13:42):
disclosure so you can see, hey, what are the things
I need to check off on this list that may
be wrong with the home? Right? Don't buy anything in
the in the residential side during the process. You cannot
buy anything more during that process because they will check
your credit two times or more depending on the type
of loan before you close. So you go out there
(14:03):
and and get a new credit card or get a
new card. Just now messed up your d t I
or dead to income ratio so you can close on
that property on the residential side, and also look at
whether or not you're gonna need p m I or
private mortgage insurance or not. When you're trying to buy residentials,
residentially a perfect segue because I feel like, UM, in
(14:24):
our community in particular, people are a little worry of mortgages.
We've seen a lot of people in the housing crisis. Um,
you know in past years where people lost their homes. Um,
how do you go about finding the best mortgage or
lending partner? Can you give us some tips on that? Yes,
so I think that one of the first thing is
(14:45):
to find out what programs that you that you may
or may not qualify for. Are you a first time
home buy right? Are you you know? Do you not
have do you have not so great credit? There are
other programs out there like NACA right, there are a
Good Neighbor next Door program and HUT loans. You have
Native American Direct loans and Agriculture U s d A loans.
So there's different programs that will dictate to you how
(15:08):
you find the right you know, the right lenders. But
at the same point in time, when you go into
a property and you buy, realtors will normally have partnerships
with loan officers and lenders. So, so here's the thing.
I feel like a lot of people assume, you know,
you find a realtor and then you go to your
bank and you ask your bank to give you the money.
(15:29):
But really it's on the onus of you know us
to go and investigate the best mortgage programs. And there's
all these different wealth of programs out there that can
actually help you achieve home ownership. So it's not this
traditional idea of you just go into your bank where
you keep your money and hopefully they'll give you a loan. Like,
there's a lot of work that can be done so
that you can get the best mortgage experience possible. Guess what,
(15:52):
when you're looking at that commercial side, you have to
make sure that commercial realtor knows the end game because
there's five types right retail, commercial property, there's office, there's
multi family, industrial, and hospitality. So depending on the strategy
you're using, you need to look at how much land
am I buying, What does that land cost? What am
I putting on it my building, you know, sending in
(16:15):
my building, shopping centers on top of that. So I
have land development. Am I looking at the raw land?
So I want to envision something new for a particular
area of the city. So I want to fix and
flip that commercial real estate? What do I really want
to do. So all these things you have come into
mind when you're dealing with that realtor we're dealing with
that lender, because then that'll be that will dictate how
(16:35):
much money do I gotta have? Down? Am I buying?
And my rehabit and my reigning and my refinancing? What
am my problem? Jay? Thank you so much for your
time today, and please tell our Money Moves audience where
they can find you, absolutely, money Little. You can find
me on Instagram and at I n c CEO dot
the Tutor or at the J Bill Brand. You can
find me also on Facebook. I have a group called
(16:57):
the J Bill Brand Credit and Financial Literacy Group that
is complementary. Really get the up to date information about
all kinds of stuff credit and financial literacy. And if
you're on the the critically acclaimed Clubhouse, find me there
at I n c CEO of the Tutor and we
can talk soon. Well, now you know where to find him.
Thank you so much, Jay, and we'll see you again soon.
(17:19):
Thank you so much for tuning in Money Moves audience.
If you want more or a recap of this episode,
please go to Bank Greenwood dot com and check out
the Money Moves podcast blogs. Stay tuned tomorrow and every
day this week. From very special Money Versus Moves, Is
it better to buy a car outright with cash or
to use credit and finance it. That's a good question.
(17:40):
It depends on what your credit goals are. It depends
on what your financial situation is. Just pay out our
cash for that was good advice or from our expert.
You have to look at callowing your letters because you
don't know what you don't know, and if you don't ask,
you can't move forward right and make those money move
and you won't want to miss them. Selling R and
(18:01):
B artist Adrian marcel I realized that I didn't want
to just be an artist. I didn't want to just
go back and get another deal and do it the
same way. You know. I wanted to be better. Money
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(18:22):
or wherever you get your podcasts from
Hey Money Movers, Welcome back to Money Moves, the daily podcast,
determined to give you the keys to the Kingdom of
financial stability, wealth and abundance. Hey Money Movers, Welcome back
to Money Moves, the Daily Podcast, determined to give you
(00:22):
the keys to the Kingdom of financial stability, wealth and abundance.
When you think of the American dream, it's almost ubiquitous
in this country that home ownership is an integral part
of that. Being able to say that this home where
I live is mine, that I purchased it, that my
hard earned dollars went into acquiring, is something so special
(00:43):
because it gives us feelings of accomplishment. Real estate ownership
and the limitations on that in this country are foundational
in what we see today. When O. W. Gurley bought
forty acres of land in Tulsa, Oklahoma, in nineteen o five,
Oklahoma had not yet become a state in the Union.
Upon becoming a state in nineteen o seven, one of
(01:04):
the first laws on the books made it illegal for
blacks and whites to live in the same areas, essentially
locking in the inevitability of the Greenwood District being restricted
to blacks only. Ultimately, Girley had to double down on
an investment into his own people, paving the way for
the success of what would become Black Wall Street. That
(01:25):
being said, home ownership rates among Blacks and Hispanics are
lower than any other racial group. Approximately forty percent of
Blacks own homes of Hispanics, and this compares to sixty
one percent of Asian and Pacific Islanders and of course
seventy six percent of whites. In fact, black home ownership
has decreased over the last fifteen years and has reached
(01:46):
an all time low that hasn't been seen since the
nineteen sixties. In fact, not one of the one cities
with the largest Black populations in America have a Black
ownership rate even close to that of ownership. It is
crucial that black and brown people start to pursue the
same real estate and ownership dreams as our white counterparts,
(02:10):
but also as those of ow Gurley's in our past history.
To help us understand what it is we really need
to consider when it comes to real estate is the
founder and CEO of the j Veal Brand as well
as the CEO of Ink Education. J Veal Jay. Thank
you so much for joining us today. We have appreciate it,
(02:31):
appreciate you invited me to come, and I'm glad I
had this conversation about what we can take back. Jay.
I'm so excited for you to be here today. Thank
you so much for joining us. And I don't want
to waste a minute. So let's jump right into talking
about real estate today. Excellent, So let's dive right in.
What would you say is really important to consider when
(02:52):
we start discussing real estate and ownership? Hey, thanks for
that question. I think that first of all, we have
to we have to understand it. Real estate is more
time faceted. Right when you're either owning owning homes or
you're investing in real estate, one thing that you have
to look at is what market do we have currently
right now? Right? One thing is that we're in a
seller's market currently in the United States, and a lot
(03:14):
of the real estate and homes and investment properties are
at an all time low in terms of inventory. So
you have to really look at the landscape of what's
going on now. I will say this, I know what
I did when I first centered around buying brand new homes. Um,
I stayed in them a couple of years or so,
and I gained equity and then I sold them at
a profit every time. But in addition to that, I
(03:35):
started to do things in the air, the AIRB and
B space. But you can do multiple different things in
the real estate game. You can do fixing flips, you
can do mobile homes, you can buy and hold, you
can do whole sale, and you can do rehab. There's
so many different things that you can do, and you
need to look at what is your long term goal?
Right Do you want to own homes? Do you want
people to rent, do you want to have some property
(03:56):
you know? Do you want to buy land? Do you
want to develop? Do you wanna have retail centers or
commercial real estate? So I think that first of all,
you have to figure out what you want to do.
And you know, I feel like oftentimes for our money
mover's audience, they get overwhelmed thinking, well, man, you've laid
out a whole bunch of things. But I just know
that real estate is something that I should look into.
(04:18):
So you also mentioned right now that it's a seller's market.
I don't want that to deter people from saying like, hey,
I'm a buyer, but I think what you're also saying
is do the research to understand, you know, how you
fit in, you know, so that you can get in
where you fit in. Absolutely so, even with the seller's market,
what's basically going on if those of you that are
not maybe familiar with that, there's minimal inventory to purchase,
(04:42):
drives up the home prices, right, and that drives them
up through the roof. I know here in Atlanta and
even in Dallas and other big cities, sellers are selling
at homes like crazy. But the problem is they're not
going at market rate. They're going higher than between thirty
five or six d K right on average. And so
a buyer's market is when homes are at all time low,
the market value is low, and there's a surplus and
(05:04):
home inventory. So I think that right now you have
to be cognizant, cognizant cognizant of where are you going
to fit in the market, how much really afford because
the prices are driving up, what do you re qualified
for and how much real estate are you are is
available for you to totally invest in at the end
of the day. Got it? Okay? So if we back
(05:26):
out a little bit, you've mentioned a couple of different ways,
and you know, I mean the real goal here is
to build wealth. So there's many ways that you can
enter into the real estate market. Residential real estate and
that could just be owning the home that you choose
to live in. There's commercial real estate. Can you give
us a couple you know, break down sort of the
entry level ways in which people can get into real estate.
(05:50):
So I think on the personal property side of the house,
you can you can buy a home, all right. I've
purchased three of them um in my past, and I
know that you can buy you can stay in it
for a little bit time reads or sell it at
a profit and then move on and keep doing that. Also,
you can go into airbnb. You can take your home
(06:10):
and you can airbnb either rooms out or the whole
home surface and and hopes of usual utilizing that income property.
And in addition to that, you can then have um
commercial property. Right you talk about commercial property. So underwriting
is based on you know, the underlying business at the
hand meeting that the properties you have can be potential
(06:30):
income and those expenses are things that you have to
look at to dictate how you're going to You're you're
going to build, how you're going to own and how
you're going to get lended money right now. In terms
of doing this, you may have leases for commercial real
estate right sometimes you can you you have you know,
six months free too and rend before paying back the loan.
(06:51):
So you have to look at how many benefits you
can get when you're looking at commercial real estate. Location matters.
We talked about that on the personal and the commercial side. Absolutely,
location always matters. Actually that's a perfect thing because I
think this is something that goes into part of the
research and development that people need to know before they
even decide to buy a property. Let's talk about some
(07:14):
of the ideas people need to pay attention to when
they're looking at a property. Is it the school districts? Like?
How do people know what a good property looks like?
So I know the law that I kind of go
by is where is the where is the property located?
And what is it? Buy it? Right? He said? Is
it by a great school district? Is it by other
(07:36):
development areas? Oftentimes when land is being developed, retail shops
are being built, new homes are being built, new apartments
are being built. Those are forecasting signs as to where
to really look in your next investment property or look
at your next um, your next residential you know, opportunity
right now. You can also look at the economic development
(07:56):
centers and go to some of those meetings and they'll say, hey,
we're gonna be building a you know, a a complex
in this amount of X amount of years. We're gonna
be building a retail center x amount of years. When
you know that and you go to the Economic Development
center meetings, you will know where to buy your real
estate and where to buy your your residential right. But again,
(08:18):
know your market area where you want to go into,
find out what your source of capital is gonna be. No,
the realtor and the brother analyze your values of equity
and home values, know your contracts, get your appraisals done,
and things of that nature. Now I'll put you well
on your way to start looking at where you want
to buy. Jay, you know you're bringing this up really
sparked something in my mind. I was thinking about my
(08:39):
aunt and she bought a house about twelve years ago.
It was in, you know, a very quiet neighborhood. It
wasn't very developed, but there were plans to put in
a whole food in the next like two years. So
as soon as they created that development, there was a
whole foods there. They started developing more and more. She
saw the price and value of her house, you know,
grow astronomically within a seven to ten year period. And
(09:01):
now she's sold it and she's recouped so much more
value and equity on that house. Absolutely. Well. You know,
businesses move, corporations moved to different locations. The one good
thing about Texas is the fact that they don't have
any state income tax. So what's happening is, you know,
different places, different corporate and they're moving to Dallas. Moved recently,
(09:25):
a big jewelry nity that just moved there recently. Boeing
has another office there. Microsoft has offices there. People are
just moving into the area. Amazon has more centers that
are moving to Dallas. So when you look at that,
look at what what are your opportunities and tax savings? Right,
do you have any state income taxes? Are there opportunities
(09:46):
where you can get some right offs? And when communities
moved to the area, that will say, hey, we know
what the what the gap is gonna look like for
when I sell my home, and what the tax and
centems are for when the corporation moves into the area.
So you want to buy when the next big, big
corporate entity is coming to the areas. Because one, you
(10:09):
want to look out for the value at a home, right,
you're gonna be valuable later on, or and then so
I can sell it, Or to do I buy it
quick enough so before they come in, I can get
it low, and then I can get that high sale
at the end of the day in about three to four.
I want to buy low and get the high sale. Absolutely, okay, J.
(10:29):
So this is perfect. Now we've done our research. I've
got a property in mind. Um, you know, I've got
a couple because I like to really, you know, play
my chips. Right, what's the first thing I need to
begin to do to start putting offers on a home?
I mean, the first thing you need to do is
to find a realtor, either a commercial realtor or if
(10:49):
it's a home, a regular residential property, find a realtor
that is on that side of the house. Right. Second
thing you should do is also have an offer, not
an offer letter, but you should have a preapproval in hand.
How much can you really qualify for either on the
residential side or the commercial side. Once you have those
in mind, look at Okay, now I know my properties
(11:12):
are gonna be I selected some I have my preapproval
in hand. Now I need to look at inspection, make
sure that that property or that commercial property is up
to code and up to speed. Do I need to
do any you know, repairs or ask for anything before closing?
Because you can do that. Sometimes people forget you don't
have to just take it home like it is when
you're purchasing, or take a resident commercial property like it is.
(11:34):
You can ask for things, right, how can I get
these things? The stiller may do those things for you
before you close. And then how much cash should I
bring the clothes? On the commercial side or the residential side,
make sure that I look at those contracts, find out
who my loan officer is gonna be, and what kind
of programs I can I can go into either on
(11:55):
the commercial real estate side or the residential real estate side. Also,
what is my credit score look like? If you don't
have sometimes often a year of traction or two years
traction when buying commercial real estate, they're gonna do what
look at your personal credit score? Now I started talking
about a lot of credit on clubhouse about back, because personally,
(12:15):
I have an eight forty and I'm like, listen, there
are ways for you to buy properties with different tiers
of credit. And if you're gonna go f h A,
if you're gonna go Va, if you're gonna go you know,
conventional things like that, it'll allow you to put certain
amounts down. So when you're buying either side of the
real estate game, commercial or residential, these are some of
(12:37):
the things that you need to check off on your
list to count down and say, am I really ready
to buy this property? And if so, here's how long
I need to wait. With commercial, sometimes you gotta wait
a whole year, six months to a year before you
actually close, but when you're looking around it feels like
that's a long time. But big properties, Yeah, and if
it's if if it's a residential and you're doing a
(12:58):
new bill, it could be three d six months before
you actually close on that house, right, But if it's
if it's something that's already built, it could be about
you know, a month or so. So J bring this
back to this, you know you you gave us so
much information there and how do people what do you
need to consider differently when you're considering owning a residential
property versus a commercial property. Right. So with the residential
(13:21):
property at hand, again, you have to you have to
look at what market you're trying to buy. First of all,
do your research, know the market, Do you have the
money to buy the property? Are you gonna finance it?
Are you gonna cash out? Right? Know the fees that
you're dealing with. Right, know that the seller's disclosure. If
you're buying a home, make sure you look at that
(13:42):
disclosure so you can see, hey, what are the things
I need to check off on this list that may
be wrong with the home? Right? Don't buy anything in
the in the residential side during the process. You cannot
buy anything more during that process because they will check
your credit two times or more depending on the type
of loan before you close. So you go out there
(14:03):
and and get a new credit card or get a
new card. Just now messed up your d t I
or dead to income ratio so you can close on
that property on the residential side, and also look at
whether or not you're gonna need p m I or
private mortgage insurance or not. When you're trying to buy residentials,
residentially a perfect segue because I feel like, UM, in
(14:24):
our community in particular, people are a little worry of mortgages.
We've seen a lot of people in the housing crisis. Um,
you know in past years where people lost their homes. Um,
how do you go about finding the best mortgage or
lending partner? Can you give us some tips on that? Yes,
so I think that one of the first thing is
(14:45):
to find out what programs that you that you may
or may not qualify for. Are you a first time
home buy right? Are you you know? Do you not
have do you have not so great credit? There are
other programs out there like NACA right, there are a
Good Neighbor next Door program and HUT loans. You have
Native American Direct loans and Agriculture U s d A loans.
So there's different programs that will dictate to you how
(15:08):
you find the right you know, the right lenders. But
at the same point in time, when you go into
a property and you buy, realtors will normally have partnerships
with loan officers and lenders. So, so here's the thing.
I feel like a lot of people assume, you know,
you find a realtor and then you go to your
bank and you ask your bank to give you the money.
(15:29):
But really it's on the onus of you know us
to go and investigate the best mortgage programs. And there's
all these different wealth of programs out there that can
actually help you achieve home ownership. So it's not this
traditional idea of you just go into your bank where
you keep your money and hopefully they'll give you a loan. Like,
there's a lot of work that can be done so
that you can get the best mortgage experience possible. Guess what,
(15:52):
when you're looking at that commercial side, you have to
make sure that commercial realtor knows the end game because
there's five types right retail, commercial property, there's office, there's
multi family, industrial, and hospitality. So depending on the strategy
you're using, you need to look at how much land
am I buying, What does that land cost? What am
I putting on it my building, you know, sending in
(16:15):
my building, shopping centers on top of that. So I
have land development. Am I looking at the raw land?
So I want to envision something new for a particular
area of the city. So I want to fix and
flip that commercial real estate? What do I really want
to do. So all these things you have come into
mind when you're dealing with that realtor we're dealing with
that lender, because then that'll be that will dictate how
(16:35):
much money do I gotta have? Down? Am I buying?
And my rehabit and my reigning and my refinancing? What
am my problem? Jay? Thank you so much for your
time today, and please tell our Money Moves audience where
they can find you, absolutely, money Little. You can find
me on Instagram and at I n c CEO dot
the Tutor or at the J Bill Brand. You can
find me also on Facebook. I have a group called
(16:57):
the J Bill Brand Credit and Financial Literacy Group that
is complementary. Really get the up to date information about
all kinds of stuff credit and financial literacy. And if
you're on the the critically acclaimed Clubhouse, find me there
at I n c CEO of the Tutor and we
can talk soon. Well, now you know where to find him.
Thank you so much, Jay, and we'll see you again soon.
(17:19):
Thank you so much for tuning in Money Moves audience.
If you want more or a recap of this episode,
please go to Bank Greenwood dot com and check out
the Money Moves podcast blogs. Stay tuned tomorrow and every
day this week. From very special Money Versus Moves, Is
it better to buy a car outright with cash or
to use credit and finance it. That's a good question.
(17:40):
It depends on what your credit goals are. It depends
on what your financial situation is. Just pay out our
cash for that was good advice or from our expert.
You have to look at callowing your letters because you
don't know what you don't know, and if you don't ask,
you can't move forward right and make those money move
and you won't want to miss them. Selling R and
(18:01):
B artist Adrian marcel I realized that I didn't want
to just be an artist. I didn't want to just
go back and get another deal and do it the
same way. You know. I wanted to be better. Money
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