December 22, 2021 • 13 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.
Jay shares his advice on what we need to consider when purchasing a home, optimizing your relationship with your realtor, the expenses of owning property, and the significance of black and brown communities to buy real estate.
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Guest IG: @thejayvealbrand
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Episode Transcript
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Speaker 1 (00:00):
What's up, money Movers. Welcome back. A steep dive into
entrepreneurship and our community is brought to you by our
partners at MasterCard, bridging the wealth gap together with Greenwood.
Let's welcome back our expert, Hi J. How are you?
(00:23):
They have gone doing pretty good, just trying to make
things happen out here. Pretty perfect. We love that always
making money Moves. Allow me to introduce our guest today.
Jay Veal is the CEO of INC Education, the number
one African American owned private education company in Southern US
serving students of all ages in STEM. He is also
(00:43):
the founder and CEO of the J. Veal Brand, a
Dallas based premier consulting firm that deploys services in both
education and business consultation. He's also Aen Forbes Fellow, a
two time Ted Talker, and the two thousand nineteen Black
Enterprise Modern Man, and a two thousand nineteen United Nations
Global Leadership Award nominee. Ja. Those are some serious accolades.
(01:07):
Congratulation my friend, and thank you for joining us again
on Money Moves. Awesome. I appreciate it. Thank you for
having me so J. Our Money Moves family needs to
pick your brain on what to do when considering purchasing
a property. How do we even begin the process of
buying a property. So let's kind of talk about a
few things. Right. One is going to be credit. What
(01:29):
is the what is your credit situation look like currently?
Right now? We often go into times where we may
have great credit, man excellent credit, we may have average
credit or maybe not so great credit. Right, So when
you're analyzing where you should go or two, do you
think about buying a home, where is your credit? What
is your credit lie now on the low end of
the spectrum, which is I would say at below six
(01:52):
fifty right, all right, So I'm gonna stop you right there,
because this credit conversation, I think is a huge obstacle
in deterrent for a lot of people thinking they can
enter in the home ownership game. So right now, you said,
a credit score of six fifty is good or bad?
The basics if not bad, but it's just on that
(02:14):
good tier, right, It's on that So we want to
we want to kind of go up. But here's the thing.
There are multiple different programs that are offered that you
can buy homes for below US six right. There are
programs you have a five hundred, There are programs for
when you have a five fifty and up. It just
depends on where you are in your personal situation. However,
when you're looking and looking at increasing and improving your credit,
(02:37):
there are multiple different things you can do. Consumers can't
be afraid to ask their lenders in certain scenarios on
what you know, what they have on their their trade lines. Hey,
I'm having some issues. Would you be able to drop
my APR percentage rate? Or would you be able to,
you know, give me a month or two to pay
this particular loan you know down a little bit. You
(02:58):
have to look at calling your lenders as 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 moves.
But I love that you say that, because what you
really left us with some motivational money moves right, And
you have to be able to form these relationships because
you just don't know. And so I just want everyone
to be able to leave here today not counting themselves
(03:20):
out if their credit is low, because there's a lot
of ways that you can sort of increase your credit score,
and sometimes home ownership is a marathon, not a sprint.
You know, you work on increasing your credit score, you
make relationships, and you ask for programming help to do
all of those things. Absolutely, but let's talk real quickly
about the different types of loans. On a conventional loan,
(03:41):
which is going to be a Banning me yor Freddie
Mac back loan, the down payment is normally about but
you can get it as low as three percent it possible, right,
But the credit score you would need on this is
roughly a six score or higher. There's no upfronting mortgage
insurance and p m I can be canceled when there's
equity on the f h A side of the house.
(04:03):
They allowed the three point five pers sent down payment
and credit score can be as low as five hundred
and you can qualify what temper sent down or with
a five eighty you can get three and a half
percent down on, but your mortgage insurance premium is required.
On a v A, the good thing about that is
there's no down payment, right and you only have to
look at the VA funding fee with no p m I,
(04:25):
So you have to look at which loan are you
qualified for and you know how much money or past
do you have the clothes to bring to the table
to put down on at home. So at the end
of the day, to reduce your your principle. You know,
the one thing that I'm really taking away from this,
there are so many options to help us get involved
and have a seat at the table in home ownership.
(04:48):
And no matter what, I just want you all to
not count yourselves out and you just have to do
a little bit of the work to make sure that
you find the right fit for you, because homeownership is
really one of the first steps in making some true
any moves, creating generational wealth and having an asset class
that you and your family can enjoy from years to come.
And your realtors, guys, listen to this real quick. The
(05:10):
realtors as you deal with, have relationships with lenders and
loan officers. If you do not utilize that relationship and
ask your realtors to put you on game on what
programs you're qualified for, what percentages you need to have down,
how you need to look at the funding feeds and
(05:30):
even associating some of the realtors and broker fees so
you can close with some incentives. You're missing out. And
here's the thing, Jay I think that's a great point.
If your realtor is not making these connections for you
or not offering these things, you need to find another realtor.
And this is part of the you know, the ins
and outs of business. If you're a person, they are
(05:51):
there to serve you. So if they are not serving you,
you gotta go. And if they're not representing you effectively,
or they're telling you to find properties where it may
not be so you know, good for either the black
and brown and the other communities, you need to let
them go because this is a time where we need
to have the most equitable positions to buy property real
(06:12):
estate and have the best move for our generational wealth.
Do not, you know, go down for the oaky dough,
be educated and do your research on who's gonna represent
you at the end of the table. All right, J
let's go back to commercial real estate or actually even residential.
How expensive is it to actually own and manage a property?
And is this something that you should think about before
(06:34):
you buy your property. Yeah. So, one thing is it's
not expensive if you purchase new all the time, like
I normally do. However, if you do not purchase new,
it can have its costs like bills, maintaining the yard,
past services, you know, repairs to upgrades. So there's a
thing called forced appreciation costs, uh, furniture and more. Right now,
(06:57):
if you're going in the airbnb lane, the management is
a stile at times as well. You know, from getting
the property to furnishing it, to cleaning services to buying
dishes and property management and things like that. But if
you actually manage a property as a landlord, you have
to ensure that rent is paid at the end of
the day, time things are fixed if they're broken, and
beating the cost of what it takes to run the
(07:19):
home with the rent that you charge. So some some
cases it does not have to be that expensive. In
some cases it is a little bit expensive, but if
you're prepared, you don't have to worry about, you know,
that cost at the end of the day. You just
kind of take your losses as they go. But you
have to be prepared to know where you know where
you're going with it absolutely. So let's talk about tear downs.
(07:40):
You know, how do you decide, you know, hey, I
bought this building and I've already decided like this might
be a tear down. How do I go about finding
builders to actually build something for me from the ground up,
and it's that a sensible investment idea. I think that
sometimes when you're looking at a property that might be
that might need to be read have or maybe you
(08:01):
know it needs to be knocked all the way down
and build back up, you have to look at what
neighborhood you're in. And once you look at what neighborhood
you're in, see if that needs to be if it's
an area to be revitalized, or if it's an area
that's gonna be on the come up, coming down the road.
That's again part of the process of looking into your
economic development corporation plans. But when you're looking at tear downs,
(08:24):
you have to see what is the insight on how
much money if it's an investment, how much money can
you make back once you loield up that property to
a new looking or a modern looking property. Right, what
is that gap between what you paid to tear it
down and then what you're gonna get back at the
end of the day, not including if you do have
(08:44):
that right where you you put down that and you
let the bank uh alan you the rest of that
and that kind of that kind of that kind of
set up, and you have to look at that gap.
So I would say, when you're looking at tear downs,
find out kind of where you're one with the property.
You know what that market is gonna look like. Is
it the right area to tear down and bring back up?
(09:06):
And if it is, then you're gonna revitalize that area, neighborhood.
It may be the right thing because the come up
is gonna look strong and your your revenue and your
profit is going to be better at the end of
the day. So it just depends on how you go
about doing. Jay, thank you so much. Like this is
a really important conversation and I'm really excited about it.
And again I feel like, you know, for Black, Brown
(09:28):
and Latin communities, you know, having ownership in our communities
and owning like it wasn't Tulsa years ago, the building
and the block is one of the true ways in
which we can empower you know, our generation and generations
to come Absolutely, you know what I want to hit
on that last point. It's very important y'all that are
listening and looking right now. I want to be serious
(09:49):
for a moment. It's important to own land and property
in our black and brown community, so we can do
what we call by the block back versus having these
cities that are being gentrified and read idolize and pushing
people who cannot afford properties out. We don't want to
have that anymore. We've had black buyers who often have
had higher tax assessment. I just saw an article today
(10:11):
that you know, women went and and and got her
property appraised, and the praise way low than what she thought.
But she actually utilized a friend of hers who was
a Caucasian friend, and they actually appraised it for more
than two and a half times more than it is crazy.
So I'm telling you guys, really look at taking this seriously.
(10:31):
Invest in as much property as you can, as much
as you can afford. Back in the day where we
had the Fair Housing Act what nineteen six to day,
and I think it was discriminatory housing policies were outlawed
now at the time. To really look at having a
headst well we didn't have the head start, but where
we need to look now reading our books, having a
(10:52):
head start to build wealth. Look at landing home and
you gotta get back what we what we was taken
away from us a long time ago. So this is
all out of the plan for generational wealth and we
need to have the mentality to get it done. And
you can rely on all of us on money moves
to get that done. And that's right, and we are
here to help you make your next move your best move. Jay.
(11:12):
I have one more question for you that I feel
like it's really important in our communities. You know, we've
seen a resurgence of people working a gig economy, you know,
which is also very difficult for them to show their
income their uber driving, barbers, etcetera. Can you tell us
how mortgage lenders can help these folks get loans to
also get into home ownership. Absolutely, that great question, Antania.
(11:35):
So just like myself, I'm a self and self self
employed individual. Right, they in order for you to buy
property and real estate, regarding those that are self employed,
you need to look at something called bank statement loans,
so they're also known as mortgages. They will allow you
to secure a mortgage without the documentation you would normally have,
which are gonna be W two's and tax returns. Right. So,
(11:57):
in the banking industry, I used to work for a
lot of banks as well as the credit agency when
I work at Experience and sometimes these particular loans are
called alternative documentation loans. So what are the requirements for
something like this? Right? You need to have these particular things,
get your pen and paper real quick. Twelve or twenty
four months of personal and business bank statements, two years
(12:19):
history of a self employed professional affair to good credit
score preferably very good if possible with the exact score.
Minimum will will vary basically by lender. Right, enough cash
or liquid cash reserves to cover several months of your
mortgage payments, right, because they want to see if you
can feel that void or feel that gap. Verification of
(12:41):
any liquid assets like a four one, mutual funds and
things of that nature. Your business license if it's applica
applicable or if you have one. And also lastly a
letter from your tax prepairer, because that individual is gonna
be the account of the person who's gonna validate your
business expenses, confirming that you have filed correctly and what
you have is legit it. So all those things is
(13:01):
what you need for statement loans of the stelf employed
person and you'll be well on your way. Jay, thank
you for that. That was some great information. Please tell
our Money Moves audience where they can find you absolutely
by me on Instagram and at I n c CEO
dot the Tutor or at the J Bill brand and
Hey money movers. If you want to make sure that
(13:23):
you take note of all these tips and tricks that
Jay has left with you, please go to Bank Greenwood
dot com where you can get a recap of the
Money Moves podcast. Thank you so much for tuning in
Money Moves audience. If you want more or a recap
of this episode, please go to the Bank Greenwood dot
com and check out the Money Moves podcast blog. Money
(13:46):
Moves is an i heeart radio podcast powered by Greenwood
Executive produced by Sunwise Media, Inc. For more podcast on
iHeart radio, visit the i heart Radio app, Apple Podcasts,
or wherever you get your podcasts from
What's up, money Movers. Welcome back. A steep dive into
entrepreneurship and our community is brought to you by our
partners at MasterCard, bridging the wealth gap together with Greenwood.
Let's welcome back our expert, Hi J. How are you?
(00:23):
They have gone doing pretty good, just trying to make
things happen out here. Pretty perfect. We love that always
making money Moves. Allow me to introduce our guest today.
Jay Veal is the CEO of INC Education, the number
one African American owned private education company in Southern US
serving students of all ages in STEM. He is also
(00:43):
the founder and CEO of the J. Veal Brand, a
Dallas based premier consulting firm that deploys services in both
education and business consultation. He's also Aen Forbes Fellow, a
two time Ted Talker, and the two thousand nineteen Black
Enterprise Modern Man, and a two thousand nineteen United Nations
Global Leadership Award nominee. Ja. Those are some serious accolades.
(01:07):
Congratulation my friend, and thank you for joining us again
on Money Moves. Awesome. I appreciate it. Thank you for
having me so J. Our Money Moves family needs to
pick your brain on what to do when considering purchasing
a property. How do we even begin the process of
buying a property. So let's kind of talk about a
few things. Right. One is going to be credit. What
(01:29):
is the what is your credit situation look like currently?
Right now? We often go into times where we may
have great credit, man excellent credit, we may have average
credit or maybe not so great credit. Right, So when
you're analyzing where you should go or two, do you
think about buying a home, where is your credit? What
is your credit lie now on the low end of
the spectrum, which is I would say at below six
(01:52):
fifty right, all right, So I'm gonna stop you right there,
because this credit conversation, I think is a huge obstacle
in deterrent for a lot of people thinking they can
enter in the home ownership game. So right now, you said,
a credit score of six fifty is good or bad?
The basics if not bad, but it's just on that
(02:14):
good tier, right, It's on that So we want to
we want to kind of go up. But here's the thing.
There are multiple different programs that are offered that you
can buy homes for below US six right. There are
programs you have a five hundred, There are programs for
when you have a five fifty and up. It just
depends on where you are in your personal situation. However,
when you're looking and looking at increasing and improving your credit,
(02:37):
there are multiple different things you can do. Consumers can't
be afraid to ask their lenders in certain scenarios on
what you know, what they have on their their trade lines. Hey,
I'm having some issues. Would you be able to drop
my APR percentage rate? Or would you be able to,
you know, give me a month or two to pay
this particular loan you know down a little bit. You
(02:58):
have to look at calling your lenders as 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 moves.
But I love that you say that, because what you
really left us with some motivational money moves right, And
you have to be able to form these relationships because
you just don't know. And so I just want everyone
to be able to leave here today not counting themselves
(03:20):
out if their credit is low, because there's a lot
of ways that you can sort of increase your credit score,
and sometimes home ownership is a marathon, not a sprint.
You know, you work on increasing your credit score, you
make relationships, and you ask for programming help to do
all of those things. Absolutely, but let's talk real quickly
about the different types of loans. On a conventional loan,
(03:41):
which is going to be a Banning me yor Freddie
Mac back loan, the down payment is normally about but
you can get it as low as three percent it possible, right,
But the credit score you would need on this is
roughly a six score or higher. There's no upfronting mortgage
insurance and p m I can be canceled when there's
equity on the f h A side of the house.
(04:03):
They allowed the three point five pers sent down payment
and credit score can be as low as five hundred
and you can qualify what temper sent down or with
a five eighty you can get three and a half
percent down on, but your mortgage insurance premium is required.
On a v A, the good thing about that is
there's no down payment, right and you only have to
look at the VA funding fee with no p m I,
(04:25):
So you have to look at which loan are you
qualified for and you know how much money or past
do you have the clothes to bring to the table
to put down on at home. So at the end
of the day, to reduce your your principle. You know,
the one thing that I'm really taking away from this,
there are so many options to help us get involved
and have a seat at the table in home ownership.
(04:48):
And no matter what, I just want you all to
not count yourselves out and you just have to do
a little bit of the work to make sure that
you find the right fit for you, because homeownership is
really one of the first steps in making some true
any moves, creating generational wealth and having an asset class
that you and your family can enjoy from years to come.
And your realtors, guys, listen to this real quick. The
(05:10):
realtors as you deal with, have relationships with lenders and
loan officers. If you do not utilize that relationship and
ask your realtors to put you on game on what
programs you're qualified for, what percentages you need to have down,
how you need to look at the funding feeds and
(05:30):
even associating some of the realtors and broker fees so
you can close with some incentives. You're missing out. And
here's the thing, Jay I think that's a great point.
If your realtor is not making these connections for you
or not offering these things, you need to find another realtor.
And this is part of the you know, the ins
and outs of business. If you're a person, they are
(05:51):
there to serve you. So if they are not serving you,
you gotta go. And if they're not representing you effectively,
or they're telling you to find properties where it may
not be so you know, good for either the black
and brown and the other communities, you need to let
them go because this is a time where we need
to have the most equitable positions to buy property real
(06:12):
estate and have the best move for our generational wealth.
Do not, you know, go down for the oaky dough,
be educated and do your research on who's gonna represent
you at the end of the table. All right, J
let's go back to commercial real estate or actually even residential.
How expensive is it to actually own and manage a property?
And is this something that you should think about before
(06:34):
you buy your property. Yeah. So, one thing is it's
not expensive if you purchase new all the time, like
I normally do. However, if you do not purchase new,
it can have its costs like bills, maintaining the yard,
past services, you know, repairs to upgrades. So there's a
thing called forced appreciation costs, uh, furniture and more. Right now,
(06:57):
if you're going in the airbnb lane, the management is
a stile at times as well. You know, from getting
the property to furnishing it, to cleaning services to buying
dishes and property management and things like that. But if
you actually manage a property as a landlord, you have
to ensure that rent is paid at the end of
the day, time things are fixed if they're broken, and
beating the cost of what it takes to run the
(07:19):
home with the rent that you charge. So some some
cases it does not have to be that expensive. In
some cases it is a little bit expensive, but if
you're prepared, you don't have to worry about, you know,
that cost at the end of the day. You just
kind of take your losses as they go. But you
have to be prepared to know where you know where
you're going with it absolutely. So let's talk about tear downs.
(07:40):
You know, how do you decide, you know, hey, I
bought this building and I've already decided like this might
be a tear down. How do I go about finding
builders to actually build something for me from the ground up,
and it's that a sensible investment idea. I think that
sometimes when you're looking at a property that might be
that might need to be read have or maybe you
(08:01):
know it needs to be knocked all the way down
and build back up, you have to look at what
neighborhood you're in. And once you look at what neighborhood
you're in, see if that needs to be if it's
an area to be revitalized, or if it's an area
that's gonna be on the come up, coming down the road.
That's again part of the process of looking into your
economic development corporation plans. But when you're looking at tear downs,
(08:24):
you have to see what is the insight on how
much money if it's an investment, how much money can
you make back once you loield up that property to
a new looking or a modern looking property. Right, what
is that gap between what you paid to tear it
down and then what you're gonna get back at the
end of the day, not including if you do have
(08:44):
that right where you you put down that and you
let the bank uh alan you the rest of that
and that kind of that kind of that kind of
set up, and you have to look at that gap.
So I would say, when you're looking at tear downs,
find out kind of where you're one with the property.
You know what that market is gonna look like. Is
it the right area to tear down and bring back up?
(09:06):
And if it is, then you're gonna revitalize that area, neighborhood.
It may be the right thing because the come up
is gonna look strong and your your revenue and your
profit is going to be better at the end of
the day. So it just depends on how you go
about doing. Jay, thank you so much. Like this is
a really important conversation and I'm really excited about it.
And again I feel like, you know, for Black, Brown
(09:28):
and Latin communities, you know, having ownership in our communities
and owning like it wasn't Tulsa years ago, the building
and the block is one of the true ways in
which we can empower you know, our generation and generations
to come Absolutely, you know what I want to hit
on that last point. It's very important y'all that are
listening and looking right now. I want to be serious
(09:49):
for a moment. It's important to own land and property
in our black and brown community, so we can do
what we call by the block back versus having these
cities that are being gentrified and read idolize and pushing
people who cannot afford properties out. We don't want to
have that anymore. We've had black buyers who often have
had higher tax assessment. I just saw an article today
(10:11):
that you know, women went and and and got her
property appraised, and the praise way low than what she thought.
But she actually utilized a friend of hers who was
a Caucasian friend, and they actually appraised it for more
than two and a half times more than it is crazy.
So I'm telling you guys, really look at taking this seriously.
(10:31):
Invest in as much property as you can, as much
as you can afford. Back in the day where we
had the Fair Housing Act what nineteen six to day,
and I think it was discriminatory housing policies were outlawed
now at the time. To really look at having a
headst well we didn't have the head start, but where
we need to look now reading our books, having a
(10:52):
head start to build wealth. Look at landing home and
you gotta get back what we what we was taken
away from us a long time ago. So this is
all out of the plan for generational wealth and we
need to have the mentality to get it done. And
you can rely on all of us on money moves
to get that done. And that's right, and we are
here to help you make your next move your best move. Jay.
(11:12):
I have one more question for you that I feel
like it's really important in our communities. You know, we've
seen a resurgence of people working a gig economy, you know,
which is also very difficult for them to show their
income their uber driving, barbers, etcetera. Can you tell us
how mortgage lenders can help these folks get loans to
also get into home ownership. Absolutely, that great question, Antania.
(11:35):
So just like myself, I'm a self and self self
employed individual. Right, they in order for you to buy
property and real estate, regarding those that are self employed,
you need to look at something called bank statement loans,
so they're also known as mortgages. They will allow you
to secure a mortgage without the documentation you would normally have,
which are gonna be W two's and tax returns. Right. So,
(11:57):
in the banking industry, I used to work for a
lot of banks as well as the credit agency when
I work at Experience and sometimes these particular loans are
called alternative documentation loans. So what are the requirements for
something like this? Right? You need to have these particular things,
get your pen and paper real quick. Twelve or twenty
four months of personal and business bank statements, two years
(12:19):
history of a self employed professional affair to good credit
score preferably very good if possible with the exact score.
Minimum will will vary basically by lender. Right, enough cash
or liquid cash reserves to cover several months of your
mortgage payments, right, because they want to see if you
can feel that void or feel that gap. Verification of
(12:41):
any liquid assets like a four one, mutual funds and
things of that nature. Your business license if it's applica
applicable or if you have one. And also lastly a
letter from your tax prepairer, because that individual is gonna
be the account of the person who's gonna validate your
business expenses, confirming that you have filed correctly and what
you have is legit it. So all those things is
(13:01):
what you need for statement loans of the stelf employed
person and you'll be well on your way. Jay, thank
you for that. That was some great information. Please tell
our Money Moves audience where they can find you absolutely
by me on Instagram and at I n c CEO
dot the Tutor or at the J Bill brand and
Hey money movers. If you want to make sure that
(13:23):
you take note of all these tips and tricks that
Jay has left with you, please go to Bank Greenwood
dot com where you can get a recap of the
Money Moves podcast. Thank you so much for tuning in
Money Moves audience. If you want more or a recap
of this episode, please go to the Bank Greenwood dot
com and check out the Money Moves podcast blog. Money
(13:46):
Moves is an i heeart radio podcast powered by Greenwood
Executive produced by Sunwise Media, Inc. For more podcast on
iHeart radio, visit the i heart Radio app, Apple Podcasts,
or wherever you get your podcasts from
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