October 11, 2024 • 31 mins
Unlock the secrets of modern real estate financing with our latest episode of "Come to Find Out." This week, we're joined by Nathan Lindley from Gold Star Mortgage, who unveils the transformative potential of Debt Service Coverage Ratio (DSCR) loans in the ever-changing Florida property market. Discover how these loans offer a simplified, income-focused approach to securing financing, bypassing traditional roadblocks like personal income scrutiny and tax return requirements. Nathan shares insider knowledge on how DSCR loans adapt to both long-term and short-term rental income, providing a flexible and efficient solution for today's savvy investors.
Listen as we explore a compelling case study from California, illustrating how DSCR loans can breathe new life into underperforming properties. By refinancing a property rented below market value, one investor was able to refurbish and significantly increase rental income. Nathan addresses lingering concerns from the 2006-2009 financial crisis, assuring listeners of the rigorous and realistic assessments backing today's DSCR loans. With credit scores being a pivotal part of securing favorable terms, Nathan emphasizes the importance of maintaining a solid credit history to leverage the true power of DSCR loans.
Gain a deeper understanding of the current Florida real estate market dynamics with Nathan's firsthand perspective as a seasoned lender. He contrasts today's market with the speculative frenzy of the pre-2008 era, highlighting the robust demand and tight supply that characterize current conditions. Nathan offers expert advice on distinguishing between speculative and cash flow investing, urging listeners to adopt a long-term view for substantial returns. The episode also sheds light on closing costs and potential fees associated with DSCR loans, stressing the value of consulting with mortgage professionals to navigate these opportunities effectively.
To contact Nathan Lindley:
email: lindleyloanteam@goldstarfinancial.com
phone: 727.452.9868
https://www.instagram.com/thelindleyloanteam/
https://www.facebook.com/TheLindleyLoanTeam
Sarah Thress
614-893-5885
First Time Home Buyer course: https://sarahthress.graphy.com/
Instagram https://www.instagram.com/sarah_thress_realtor/
Facebook https://www.facebook.com/SarahThressRealtor/
https://www.youtube.com/@LIFEINCOLUMBUS
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
Hi and welcome to this week's episode of Come to
Find Out.
This week we have NathanLindley of Gold Star Mortgage.
If you were listening, a fewweeks ago he was on and talking
about how Gold Star is differentthan other lenders.
So if you haven't listened tothat one, definitely make sure
you go back and listen to thatone.
It's got some great information.
(00:24):
Also gives us some greatinformation and insight into the
Florida real estate market.
So, nathan, thank you so muchfor taking time out of your day
to join me again.
Speaker 2 (00:33):
Thank you for having me again.
I truly appreciate it.
Speaker 1 (00:36):
Yeah, absolutely.
So after we recorded our lastone, you and I got to talking
about all the different thingsthat you're very knowledgeable
about and especially about theFlorida market, so I really
wanted to make sure that I hadyou back on to talk about stuff
as we talked about before westarted recording.
We are kind of ramping up forthe busy season in Florida and a
(01:01):
lot of people are now coming tome and asking about like hey,
if we wanted an investmentproperty in Florida, what does
that look like?
And you know, is now the righttime to buy, since everything is
, you know, still a little bitlike it's a little bit different
down there than it is here incentral Ohio with the market.
So I would love for you to justkind of walk us through the
(01:22):
investment market and, like aDSCR loan and you know,
obviously explaining what thatis, because not everybody knows
our lingo.
Speaker 2 (01:30):
Absolutely.
Thank you so much.
Yeah, so let's start just realquick on.
You know what the history was.
You know so, as you go backprior to you know COVID and you
know the increase in rates andthings like that.
The historical, normal way ofdoing an investment loan was.
(01:50):
You know you provided your taxreturns and you know you got
credit for the rental income tohelp offset the payment, but you
still had to calculate thatdifference into your monthly
payment to calculate thatdifference into your monthly
payment.
So it was a verylabor-intensive,
(02:13):
document-intensive way ofcalculating the income.
And that's still the way thatFannie Mae and Freddie Mac loans
will do non-owner-occupiedinvestment properties.
But the thing that changed afterthe pandemic and the rise of
interest rates that happened soquickly is that they've priced
out the market by increasing therate and by increasing what
(02:34):
they call their loan levelpricing adjustments so high on
those products that arenon-owner occupied and in.
You know in that category thatthe loans became impossible to
do, like they were actuallyillegal to do, because the fees
were so high.
So they knew what they weredoing.
They were basically saying wedon't want these loans and so
(02:57):
we're going to make them soexpensive that they can't be
done, and so the conventional,normal way of doing that.
They can't be done, and so theconventional, normal way of
doing investment properties kindof has been hibernating and
sitting on the side and like hashappened many, many, many, many
times.
You know, in the past, privateloans, private equity, what we
(03:19):
now refer to as non-qualifiedmortgage, non-qm mortgages,
filled a hole and they steppedup and created a new way of
doing mortgages.
And this new way of doing thesemortgages is a new income
calculation process and it'scalled DSCR Debt Service
Coverage Ratio.
(03:39):
So it's an acronym for DebtService Coverage Ratio, so it's
an acronym for debt servicecoverage ratio.
And so the underwriting of thisloan is entirely based on the
proposed PITI, which isprincipal interest taxes and
insurance, the carrying costs ofthe property.
So I'm going to buy thisproperty.
Here's what my loan is permonth.
Here's what my taxes are permonth.
(04:01):
Here's my insurance per month.
If there's HOA, here's my HOA,so what it costs are per month.
Here's my insurance per month.
If there's HOA, here's my HOA,so what it costs you per month.
And then we're going to comparethat number to what either it
is actually renting for or whatthe appraiser tells us it will
rent for through a rent scheduleand that's all the income
calculation we do.
(04:21):
So the individual's income W-2pay stubs this, that the other
debts, how much you have incredit cards, how much you have
all of that is not factored intothe income calculation for
doing these debt, dscr loans.
And so this new creation ofthis new methodology has opened
(04:44):
up an entirely new avenue ofbeing able to do investment
homes and even some second homes.
You know there's a bunch oflenders that are doing these,
and when I mean that thebrokerage relationships, you
know, like what we talked aboutreferring to our last
conversation, where I can brokerloans, there's a lot of
(05:05):
brokered avenues that allow forthese DSCR loans.
Speaker 1 (05:09):
Wow, I had never even heard of those, so you just
completely blew my mind.
Speaker 2 (05:15):
And what's kind of neat with these types of loans
is there's differentsubcategories.
So you know, if you want to usewhat they call long-term rent
some of these you know you checka box and say we're going to
use long-term rent, which meansleases of nine months or more,
you can.
There are some lenders that dothese based on what's called
short-term rent.
If you check the box thatyou're going to use short-term
(05:38):
rent, that's, you know, usingVrbo or you know any of those.
You know Airbnb, any of thosetypes of apps where you're just
renting it out weekly.
Some of them require you tohave experience of owning you
know, other investmentproperties.
Some of them require you justto own a primary residence.
(05:58):
Some of them say you don't haveto have owned a property at all
.
You know it's a little bithigher risk, so it's a little
bit higher interest rate, butthere's a bunch of different
categories there that kind ofget into that and probably the
next thing to talk about is downpayment.
Speaker 1 (06:10):
Yeah, I was just going to ask about that because,
you know, a lot of times people, you know, I'm still having
people ask, like you know, on aprimary residence, like you know
, do we have to put 20% down?
And I'm like, absolutely not.
Like you know, do we have toput 20% down?
And I'm like, absolutely not.
Like you know, we've got it setup, you know.
Well, not we, but the government, you know, the feds, they have
(06:33):
it all, freddie, fannie, theyhave it all set up to where you
can do 3% or 5%.
You know, obviously, the moreyou put down the you know, the
less your principal and interestare.
I mean, there's all thesedifferent factors, but it's not
20% and and it's myunderstanding that with most
investment properties it is atleast 10% and sometimes 20%.
So I'd love for you to kind oftalk about that and, you know,
give more insight into that.
(06:54):
Like if they went thetraditional route with their
down payment was, if there isany difference with this, you
know, this new creative loan,yeah, I'll let you tell us new
creative loan?
Speaker 2 (07:08):
Yeah, I'll let you tell us.
And again, so historically, youknow any anybody that I was
advising, that.
I was talking to them.
You know we could do aninvestment property with 20%
down, but the break in interestrate if you put 25% down made it
so much more affordable that itwas over the top.
Hey, I just told all of myclients plan on 25% down, you
(07:29):
know, can't do.
The guidelines say we can do it.
20%.
Yes, is that really what is agood financial plan?
No, so that was my old advice.
Now, with this new loan product,I tell people, well, plan on
somewhere between 20 and 25%down Because, again, the way
that it's calculated, it's theratio of what we're expecting
(07:53):
for the rents to what the PITIis, what we refer to the total
cost of ownership.
So if we get the rent scheduleback and it says, hey, you can
rent this property out fortwenty five hundred dollars a
month, then we've got to getyour loan to your payment being
twenty five hundred dollars amonth.
(08:14):
So it may not be a 20 percentdown payment, it might be, but
it may be, but it may be morethan or less than a 25 percent
down payment.
So if you put twenty, well, wecan borrow more.
We can borrow a little bit moreand maybe only put down 22% to
(08:36):
get that payment back to the$2,500.
So you end up being much lesslike okay, you need this exact
dollar amount and more like wehave to see where the numbers
are going to land.
That obviously depends on youknow where the interest rate is.
I've used strategies where webought the rate down to get the
(08:58):
payment where we needed it to tobe able to do a certain you
know.
You know.
So rather than putting moremoney down, we just bought the
rate down to get the paymentdown to where we need it.
So you end up with somedifferent strategies because of
the difference of the way thatthe type of loan is.
But as far as for someone who'sbeginning the conversation of
like hey, I'm looking atproperties, plan on 25.
(09:21):
Plan on 25% down and it ends upbeing about the same number
that I always told my clients inthe past If there's an
opportunity to save some of thatcapital and not put that full
25% down, absolutely takeadvantage of it, but plan on the
same 25% down that I was alwayskind of advising.
Speaker 1 (09:43):
Yeah, I love that.
And then, because I thinkthat's great for people to be
able to plan for, you know, ifthey have it in their mind that,
hey, this season I'm adding arental to my portfolio and so
this is what I would need tosave up, so I love that.
And then you mentionedsomething about the rent
(10:08):
schedule and you mentionedsomething about the appraisers.
If someone is purchasing aproperty and they're purchasing
it for the purposes of aninvestment property, but it has
never been an investmentproperty before, is that
possible to still do the DSCRloan Like, how does that work?
How do you figure all that out?
Speaker 2 (10:29):
Absolutely Great question.
In fact, I almost prefer thatscenario than when you're buying
a property that's beingcurrently rented.
When you buy a property that iscurrently under lease, then the
underwriters are going to takeinto account the actual lease
amount that the property isunder right now.
And if the appraiser and whatthe appraiser does is what's
(10:56):
called a rent schedule and arent schedule is kind of the
same way of an appraisal works,where the appraiser goes out
into that local market and seeswhat other similar size
properties are renting for inthat market, so they use a lot
of the same methodology thatthey do and, coming up with the
value of the property, they justtransfer it over to what the
rent would be for that givenproperty.
(11:17):
And if the rent schedule ishigher than what the property is
actually renting for, thenwe've got some.
We may have some finagling todo with the underwriting.
There are certain DSCR lendersthat will just use the rent
schedule.
There are others that say no,no, we're going to use whatever
the actual rent is.
You know.
(11:38):
So the, the, the what, if it'snot being rented, then we're
going to get the fullmaximization of what that rent
schedule is.
So we'll be able to be in abetter position.
You know, overall I've got akind of a neat story for you.
You know we did a DSCR loan forsomebody that lived in
(11:59):
California that was buying or,I'm sorry, that was refinancing
an investment property in ourneighborhood.
And he found our name and foundus and, you know, contacted us
and you know the property washis mother's.
It was, you know, was 30 yearsold, the tenant had been in
there for a year or two and hewas charging way below market
(12:20):
rent.
I mean, this was a $5,000 amonth neighborhood and he was
charging $1,000.
But the property was in thatcondition and so the refinance
was to pull all the cash out torefurbish the house and get it
back up to market condition sothat he could start renting it
for the real rent.
And so we went through and ofcourse, like I said, the rent
(12:43):
schedule came in at $5,000.
We were pulling out over$100,000 worth of equity.
But we found a DSCR lender thatsaid he had to write a letter
of explanation that said, hey,yes, I'm renting it below market
rate, this is what I'm usingthe money for, this is what we
will be renting at market rateafterwards.
And we were able to do the loanfor them using that much higher
(13:03):
number.
So again, that's where some ofthe strategy kind of comes into
it.
But when you're just buying itand it's a non-rented property
beforehand, then you're startingwith a clean slate.
It's much easier, it's muchsmoother.
The only number that we have touse is the number that's coming
from the appraiser, and that'sprobably going to be a higher
(13:24):
number than what somebody who'shad a three or four or five-year
tenant in the property wouldhave had anyway.
Speaker 1 (13:30):
Yeah, wow, okay.
I love that because I havepeople that will ask me you know
about investment properties,you know down in Florida, since
obviously I'm licensed here andthere and so people will ask
about it, you know, and so I'llalways like set them up with a
search and it sends them stuffand then you know, so it would
(13:50):
be so great to you know, be ableto like let them know that,
yeah, and now there's this newway that you can, you know,
finance it and it's not just allthe traditional stuff.
Speaker 2 (14:00):
Yeah, it really is.
You know, in the Fannie andFreddie Mac will come back as
rates start dropping, There'llprobably be a little bit more
appetite for loans.
I tried to price one a coupleof days ago and it still was
really bad.
I could technically do it butit was still pretty bad.
(14:22):
So you know these types ofproducts have really exploded in
availability here in the last.
You know really two years inavailability here in the last.
You know really two years.
And now they've got enough ofthem and seeing how they're
performing that you're startingto see more options open up,
(14:44):
more guidance.
You know, coming in more likewe'll do it with this, we'll
make this exception, we'll dothese types of things and it
really is going to end up beinga very, very, very competitive
model compared to you know, thetraditional way of doing this
and it's so much less.
You know paperwork that'sassociated with it.
Even if you can qualify throughthe old method, this is and
(15:08):
this makes sense.
You know this isn't a make upyour own numbers loan that you
know kind of got us in troubleback in 2006 through 2009.
You know this isn't make it upand you're using the property,
that is, the equity and theincome that you can expect from
that property to support whatloan you're doing for that
(15:33):
property and it just makes sense.
You know, just on the bigpicture of things it's like,
okay, yeah, what does it matter?
I mean, as long as I've got agood credit score and I'm not
being late on my payments, whatdoes it matter, these other
things?
You know, what does it matter?
If I've got a $2,000 car loan,it really shouldn't.
It really should be theproperty you.
(15:54):
It really shouldn't, it reallyshould be the property.
That kind of focuses, andcredit score does play into this
.
You will get better loans athigher credit scores.
If your credit score dropsbelow a 620, this is going to
get difficult for you.
This is not going to be an easyloan to do with a lower credit
score.
660, 680, it can happen.
700s things start gettingbetter.
Above 740, you're going to getthe best options that are
(16:15):
available.
Speaker 1 (16:16):
Yeah, I'm glad that you touched on that because
about the 2006, 2008, this isn'tthat made up world that we
lived in back then.
You know.
I'm glad that you brought thatup because I'm certain that you
know people listening are like,oh, that sounds like we're going
to.
You know this, it's all goingto crash again and we're just
going to have this huge, youknow, like a crash and recession
(16:40):
and you know just all, all thebuzzwords that everyone wants to
use.
So I'm really glad you touchedon that.
Speaker 2 (16:45):
Yes, yes.
So here's my opinion on on that.
And you know this is um.
You know I was in the market, Iwas a lender during that
timeframe, you know, and Iworked at Bank of America, which
once they purchased Countrywideyou know they were an epicenter
company then they purchasedMerrill Lynch, you know, and
(17:06):
then we were in, I was in thestate of Florida, you know,
epicenter company, epicentermarket.
You know we were in the thickof it here.
And I know how loans were beingdone, even the conservative,
fannie Mae, freddie Mac loans.
Numbers were being made up, youknow it was.
(17:27):
It was fast, easy, quick, andthere was this continual cycle
of the appraiser and theinvestor, the loan officer, the
title.
Everybody had to kept checkingoff on it as things kept going
round and round and round andround and there was no way to
(17:48):
kind of get off of that and thedocumentation got less and less
and less for even conventionalloans.
And so you know that was acrazy disaster and you could see
it coming, and there was atremendous amount of supply.
The demand was way down andthere is nothing similar in this
(18:12):
market that we're in right now.
You know, if you go back andyou look at what the supply was
back then versus what the demandwas.
We were headed for a cliff andit should have happened in 2006.
But all these artificial loanprograms kept propping things up
and everybody was an investor,everybody was a flipper,
everybody was doing loans.
I'd say probably 40%, maybe 50%of my loans were for investors
(18:34):
that year.
And you know, in 2007, 2008,like as we were getting towards
the end, and it was it just thetrain just kept rolling and it
fell off the rails.
You look at the market rightnow and now, demand is high,
supply is low Basic economics101, you cannot have, you know,
(18:56):
a falling price when you havehigh demand and low supply.
I can assure you loans are notbeing done by checking
somebody's pulse, which is whatit was like back then.
It was really.
Was that bad at times?
Yeah, it was.
You know that is not happeningnow, you know.
So those two things alone andevery loan that I'm doing now.
(19:19):
You know I've done a few ofthese DSCR loans.
You know I probably did 10 or15 of them, you know, this year
so far.
But it's by far not themajority.
You know it's a neat niche,it's a neat tool by far not the
majority.
You know it's a neat niche,it's a neat tool, but the
majority of my clients I'd say80, 90, you know 95% of my
closings are primary residents,people that are out there buying
(19:41):
right now.
It's not investors speculatingon that.
The price is going to go up.
These are people trying to buythe home that they're going to
move into and this is my.
I love listening to YouTube andFacebook and all these things
and listening to you know whyit's going to crash.
But here's my advice as soon asthe person who's presenting the
(20:03):
information uses 2006 to 2009as a reason or as a supporting
case, or, as it happened before,it's going to happen again.
They're done.
They've lost all credibilitywith me because there are too
many things that arefundamentally different in how
(20:24):
and where we are right now inthe market to compare it to that
black swan event and whatcaused that and what caused that
buildup.
So if that's your case thatthat's why this is going to
implode right now, then you'velost all credibility with me.
You know, and I stoppedlistening.
And you know there are otherpeople that have other reasons.
(20:46):
Okay, maybe you know, I'lllisten to them and you know,
maybe they've got some.
You know, oh well, you know therays from you know Mars are
going to cause this and it'sgoing to OK.
Fine, I'll listen to thatbefore I'll continue to listen
to somebody say, oh well, ithappened in 2009.
So here we go again.
That is the worst argument forwhat we think is going to happen
(21:08):
in the market right now.
Basic economics 101, supplyversus demand.
You can get a master's, you canget a PhD in economics and it
always focuses on some littlemicrocosm of either supply or
demand.
But the lesson always startswith supply versus demand and at
(21:29):
least here in Florida, there'sway too much demand and not
enough supply.
That's my opinion.
Speaker 1 (21:36):
Yeah, I love that and I feel like there's still a lot
of areas that are stillallowing rentals.
Some of them are making it.
Uh, you know, you have to havea minimum of three months or you
know a minimum of nine monthsor a minimum of a year, things
like that.
So sometimes there are, but Ifeel like there's still so much
(21:57):
opportunity, uh, there inFlorida.
You know, I'd love to hear,kind of your, your thoughts on
that.
That's just my, my take on it.
Again, I don't have a crystalball, I can't tell you what's
going to happen, but in myopinion there's still so much
opportunity to invest in Floridabecause they do have so many
areas that still allow it.
Speaker 2 (22:18):
And I think that anybody who's looking to invest
in real estate like this,they've got to have a realistic
timeframe.
You know, in most situationsyou know you're not, you're,
you're barely going to cashflowthe first year or two.
And if you're positive in thefirst year or two, you found a
(22:39):
great property.
You know realistically rightnow.
You know there's not a lot ofcheap properties or you bought
an inexpensive property and youdid a lot of really great work.
But if you're cash flowingpositive early on, then you're
doing fantastic.
But the part that you have tokeep locked into your brain is
like OK, you're locking in thecost of your loan.
Right now, regardless of whattype of loan you do, you're
(23:02):
doing a 30-year fixed.
You're locking in your cost andthe only thing that it can do
is go down.
If we do a refinance for youand lower the rate.
You know, but you're locking inyour cost.
Rents are going to continue togo up.
I don't know how fast, I don'tknow how much, but in 10 years I
think we can all agree thatrents are going to be higher
than they are right now.
So if you're locking in yourcosts, you're locking in your
(23:24):
cost basis.
Your cash flow is going toimprove as rents continue to go
up, and that's where you shouldbe looking at your model of
whether or not the appreciationis the cherry on top at the end
when you sell.
That's not the investment.
That's the kicker at the endthat says thank you for playing
(23:46):
the game.
But that is the differencebetween speculation and a cash
flow investor.
If you're buying simply for theprocess of appreciation, that
that's your only way that you'reexpecting to make money.
You are speculating.
There's plenty of people that doit that way.
There's plenty of people thatgo to Vegas and make money.
(24:07):
I'm not one of them.
Every time I go to Vegas, Ilose money.
I don't need to speculate.
You know, if I'm going tospeculate, I'm at least going to
try it in the stock market,which isn't much better, but you
know.
But cash flow and looking atyou know where your return on
investment is going to be like.
Ok, here's my 20% down over 10years.
(24:28):
What's my ROI going to be?
Return on investment over thatperiod of time?
That's how an investor buys.
That's how an investor looks attheir timeline and that's where
you can do well.
You're not going to get throughthe first year or two, and then
it's just going to steadilybuild from that point forward.
For you.
Speaker 1 (24:47):
Yeah, I love that.
Now, as far as closing costs,when you're looking at a DSCR
loan versus like a conventional,you know, or a Fannie Freddie,
you know, normal way of doing itI use normal very loosely, but
is there any difference in theclosing costs?
Or you know anything additionalthat they would have to pay,
(25:10):
since it is kind of an outsideof the box thing?
Speaker 2 (25:13):
Um, that's a great question and I there's, as
always, there's more, there'smultiple answers, but let me,
you know the, the, the titlecompany, the doc stamps, the
intangible fees, you know all.
All the other costs are goingto be the same.
You know, regardless, because aDSCR is a non-qualified
mortgage, you're typicallygetting that through a loan
(25:35):
officer such as myself thatworks for a non-depository bank
or an independent broker andwe're brokering that product
through, you know, a non-QMlender.
It is very common in thosetypes of loans for you to pay a,
you know, origination broker'sfee.
You know.
So there's always that balanceof paying points versus the
(25:58):
interest rate and that we talkedabout a little bit.
You know last, where you knowthe more you pay, the rate goes,
you know, but it's directlytied to the rate.
A broker fee is straightcompensation to the loan officer
and their company, you know so.
Now, sometimes and this iswhere it gets a little wonky you
(26:19):
can, we can, work that into theto the interest rate if you
want.
When I typically run again ROI,you know return on investment,
it typically works out better tojust pay it as a flat fee and
get the lower rate rather thanit being worked into the rate.
But that's an in-depthconversation for you to have
with your mortgage professionalof.
(26:40):
Should I pay this broker's feeas a fee or should I pay this
broker fee as an adjustment tothe interest rate?
You know where it's beingworked into that.
So, yes, you're going to pay alittle bit more for this loan is
the broad answer, and therate's going to be a smidge
higher because you know theseare private.
(27:03):
You know non-qualified mortgagesthat are not being backed by
Freddie and Fannie, so you knowthere's a little bit more risk
associated with doing them.
So those investors want alittle bit higher, you know,
return on their money.
But when Fannie and Freddiearen't doing loans, you're
comparing it to what was twoyears ago, not what is right now
(27:23):
.
You know saying this is a moreexpensive loan than oh wait, we
can't do this loan.
You know that's not moreexpensive, that's just there's
nothing to compare it to when itgets back to.
If they start doing them again,then there'll be a little bit
of a comparison to look at.
But as it is right now, we'renot comparing it to something
(27:44):
that doesn't exist.
Speaker 1 (27:45):
Yeah, I love that.
Well, thank you so much fortaking time out to kind of
explain this.
I think that you know youanswered a lot of really great
questions for you know thelisteners so that they can fully
understand, kind of how theycan jump in that investment
market.
Cause you know, you hear allthe time like you know, buy real
estate, buy real estate, investin real estate, and you know so
(28:07):
.
Then people are like, okay,well, where do we purchase it?
And you know so people arelooking at Florida.
So I appreciate you kind ofbreaking it down and helping
people understand you know alltheir options that they have.
Obviously it's all a veryunique situation.
There is no one size fits all.
So you know, I can only assumethat your process is the same.
(28:28):
Whenever someone calls you foran investment property versus a
primary residence, you're stillgonna have that conversation.
You're still gonna talk to them, find out their goals, find out
their like, look at theirfinances and figure out the best
route for them.
Speaker 2 (28:43):
Always starts with a discovery.
Call.
We find out what your goals are, find out your information and
then we start presenting optionsoptions customized to fit your
scenario.
You know and this is just onemore option and pathway that we
can choose if your goals are topurchase investment properties
or second homes that you plan on, you know, renting out on
(29:05):
Airbnb when you're not there,you know that line is a little
grayer in this world than it isto Fannie and Freddie, so
there's different options andvarious options that we can put
together there for you.
So please call, speak to a loanofficer.
(29:26):
I'd love it if I had theopportunity to work with you,
but even if it's not me, talk toyour loan officer.
I'd love it if I had theopportunity to work with you,
but even if it's not me, talk toyour loan officer.
Make sure that they understandthis in detail.
If they're not giving you highquality, detailed information,
find another loan officer.
This is not something you wantto do with somebody who asks if
you want fries with that whenyou finish.
Speaker 1 (29:47):
I love that.
I love that.
Well, thank you so much, and Iknow we're going to have you
back on for a few morediscussions, because the
information that you'reproviding is invaluable.
So, thank you.
Speaker 2 (30:00):
Thank you.
Speaker 1 (30:01):
Yeah, absolutely.
As always, I will have all ofNathan's information in the show
notes.
So if you want to reach out tohim to have, you know, a
discovery call to figure out ifit makes sense to work with
Goldstar, work with Nathan andhis team, and also, you know,
whether it makes sense to investnow or later or purchase a you
know a second home or your firsthome always, you know, just
(30:23):
give him a call Again, all thatinformation will be in the show
notes.
But thank you so much forjoining us today.
Always leave a review, becausethat is feedback, is the
greatest gift that you can giveme.
Please make sure you're sharingthis with others, because that
is the greatest compliment thatyou can give Nathan and I, and
make sure that you're followingthe show so you never miss an
episode.
(30:43):
Thanks so much and we'll seeyou next time on, come to find
out.
Hi and welcome to this week's episode of Come to
Find Out.
This week we have NathanLindley of Gold Star Mortgage.
If you were listening, a fewweeks ago he was on and talking
about how Gold Star is differentthan other lenders.
So if you haven't listened tothat one, definitely make sure
you go back and listen to thatone.
It's got some great information.
(00:24):
Also gives us some greatinformation and insight into the
Florida real estate market.
So, nathan, thank you so muchfor taking time out of your day
to join me again.
Speaker 2 (00:33):
Thank you for having me again.
I truly appreciate it.
Speaker 1 (00:36):
Yeah, absolutely.
So after we recorded our lastone, you and I got to talking
about all the different thingsthat you're very knowledgeable
about and especially about theFlorida market, so I really
wanted to make sure that I hadyou back on to talk about stuff
as we talked about before westarted recording.
We are kind of ramping up forthe busy season in Florida and a
(01:01):
lot of people are now coming tome and asking about like hey,
if we wanted an investmentproperty in Florida, what does
that look like?
And you know, is now the righttime to buy, since everything is
, you know, still a little bitlike it's a little bit different
down there than it is here incentral Ohio with the market.
So I would love for you to justkind of walk us through the
(01:22):
investment market and, like aDSCR loan and you know,
obviously explaining what thatis, because not everybody knows
our lingo.
Speaker 2 (01:30):
Absolutely.
Thank you so much.
Yeah, so let's start just realquick on.
You know what the history was.
You know so, as you go backprior to you know COVID and you
know the increase in rates andthings like that.
The historical, normal way ofdoing an investment loan was.
(01:50):
You know you provided your taxreturns and you know you got
credit for the rental income tohelp offset the payment, but you
still had to calculate thatdifference into your monthly
payment to calculate thatdifference into your monthly
payment.
So it was a verylabor-intensive,
(02:13):
document-intensive way ofcalculating the income.
And that's still the way thatFannie Mae and Freddie Mac loans
will do non-owner-occupiedinvestment properties.
But the thing that changed afterthe pandemic and the rise of
interest rates that happened soquickly is that they've priced
out the market by increasing therate and by increasing what
(02:34):
they call their loan levelpricing adjustments so high on
those products that arenon-owner occupied and in.
You know in that category thatthe loans became impossible to
do, like they were actuallyillegal to do, because the fees
were so high.
So they knew what they weredoing.
They were basically saying wedon't want these loans and so
(02:57):
we're going to make them soexpensive that they can't be
done, and so the conventional,normal way of doing that.
They can't be done, and so theconventional, normal way of
doing investment properties kindof has been hibernating and
sitting on the side and like hashappened many, many, many, many
times.
You know, in the past, privateloans, private equity, what we
(03:19):
now refer to as non-qualifiedmortgage, non-qm mortgages,
filled a hole and they steppedup and created a new way of
doing mortgages.
And this new way of doing thesemortgages is a new income
calculation process and it'scalled DSCR Debt Service
Coverage Ratio.
(03:39):
So it's an acronym for DebtService Coverage Ratio, so it's
an acronym for debt servicecoverage ratio.
And so the underwriting of thisloan is entirely based on the
proposed PITI, which isprincipal interest taxes and
insurance, the carrying costs ofthe property.
So I'm going to buy thisproperty.
Here's what my loan is permonth.
Here's what my taxes are permonth.
(04:01):
Here's my insurance per month.
If there's HOA, here's my HOA,so what it costs are per month.
Here's my insurance per month.
If there's HOA, here's my HOA,so what it costs you per month.
And then we're going to comparethat number to what either it
is actually renting for or whatthe appraiser tells us it will
rent for through a rent scheduleand that's all the income
calculation we do.
(04:21):
So the individual's income W-2pay stubs this, that the other
debts, how much you have incredit cards, how much you have
all of that is not factored intothe income calculation for
doing these debt, dscr loans.
And so this new creation ofthis new methodology has opened
(04:44):
up an entirely new avenue ofbeing able to do investment
homes and even some second homes.
You know there's a bunch oflenders that are doing these,
and when I mean that thebrokerage relationships, you
know, like what we talked aboutreferring to our last
conversation, where I can brokerloans, there's a lot of
(05:05):
brokered avenues that allow forthese DSCR loans.
Speaker 1 (05:09):
Wow, I had never even heard of those, so you just
completely blew my mind.
Speaker 2 (05:15):
And what's kind of neat with these types of loans
is there's differentsubcategories.
So you know, if you want to usewhat they call long-term rent
some of these you know you checka box and say we're going to
use long-term rent, which meansleases of nine months or more,
you can.
There are some lenders that dothese based on what's called
short-term rent.
If you check the box thatyou're going to use short-term
(05:38):
rent, that's, you know, usingVrbo or you know any of those.
You know Airbnb, any of thosetypes of apps where you're just
renting it out weekly.
Some of them require you tohave experience of owning you
know, other investmentproperties.
Some of them require you justto own a primary residence.
(05:58):
Some of them say you don't haveto have owned a property at all
.
You know it's a little bithigher risk, so it's a little
bit higher interest rate, butthere's a bunch of different
categories there that kind ofget into that and probably the
next thing to talk about is downpayment.
Speaker 1 (06:10):
Yeah, I was just going to ask about that because,
you know, a lot of times people, you know, I'm still having
people ask, like you know, on aprimary residence, like you know
, do we have to put 20% down?
And I'm like, absolutely not.
Like you know, do we have toput 20% down?
And I'm like, absolutely not.
Like you know, we've got it setup, you know.
Well, not we, but the government, you know, the feds, they have
(06:33):
it all, freddie, fannie, theyhave it all set up to where you
can do 3% or 5%.
You know, obviously, the moreyou put down the you know, the
less your principal and interestare.
I mean, there's all thesedifferent factors, but it's not
20% and and it's myunderstanding that with most
investment properties it is atleast 10% and sometimes 20%.
So I'd love for you to kind oftalk about that and, you know,
give more insight into that.
(06:54):
Like if they went thetraditional route with their
down payment was, if there isany difference with this, you
know, this new creative loan,yeah, I'll let you tell us new
creative loan?
Speaker 2 (07:08):
Yeah, I'll let you tell us.
And again, so historically, youknow any anybody that I was
advising, that.
I was talking to them.
You know we could do aninvestment property with 20%
down, but the break in interestrate if you put 25% down made it
so much more affordable that itwas over the top.
Hey, I just told all of myclients plan on 25% down, you
(07:29):
know, can't do.
The guidelines say we can do it.
20%.
Yes, is that really what is agood financial plan?
No, so that was my old advice.
Now, with this new loan product,I tell people, well, plan on
somewhere between 20 and 25%down Because, again, the way
that it's calculated, it's theratio of what we're expecting
(07:53):
for the rents to what the PITIis, what we refer to the total
cost of ownership.
So if we get the rent scheduleback and it says, hey, you can
rent this property out fortwenty five hundred dollars a
month, then we've got to getyour loan to your payment being
twenty five hundred dollars amonth.
(08:14):
So it may not be a 20 percentdown payment, it might be, but
it may be, but it may be morethan or less than a 25 percent
down payment.
So if you put twenty, well, wecan borrow more.
We can borrow a little bit moreand maybe only put down 22% to
(08:36):
get that payment back to the$2,500.
So you end up being much lesslike okay, you need this exact
dollar amount and more like wehave to see where the numbers
are going to land.
That obviously depends on youknow where the interest rate is.
I've used strategies where webought the rate down to get the
(08:58):
payment where we needed it to tobe able to do a certain you
know.
You know.
So rather than putting moremoney down, we just bought the
rate down to get the paymentdown to where we need it.
So you end up with somedifferent strategies because of
the difference of the way thatthe type of loan is.
But as far as for someone who'sbeginning the conversation of
like hey, I'm looking atproperties, plan on 25.
(09:21):
Plan on 25% down and it ends upbeing about the same number
that I always told my clients inthe past If there's an
opportunity to save some of thatcapital and not put that full
25% down, absolutely takeadvantage of it, but plan on the
same 25% down that I was alwayskind of advising.
Speaker 1 (09:43):
Yeah, I love that.
And then, because I thinkthat's great for people to be
able to plan for, you know, ifthey have it in their mind that,
hey, this season I'm adding arental to my portfolio and so
this is what I would need tosave up, so I love that.
And then you mentionedsomething about the rent
(10:08):
schedule and you mentionedsomething about the appraisers.
If someone is purchasing aproperty and they're purchasing
it for the purposes of aninvestment property, but it has
never been an investmentproperty before, is that
possible to still do the DSCRloan Like, how does that work?
How do you figure all that out?
Speaker 2 (10:29):
Absolutely Great question.
In fact, I almost prefer thatscenario than when you're buying
a property that's beingcurrently rented.
When you buy a property that iscurrently under lease, then the
underwriters are going to takeinto account the actual lease
amount that the property isunder right now.
And if the appraiser and whatthe appraiser does is what's
(10:56):
called a rent schedule and arent schedule is kind of the
same way of an appraisal works,where the appraiser goes out
into that local market and seeswhat other similar size
properties are renting for inthat market, so they use a lot
of the same methodology thatthey do and, coming up with the
value of the property, they justtransfer it over to what the
rent would be for that givenproperty.
(11:17):
And if the rent schedule ishigher than what the property is
actually renting for, thenwe've got some.
We may have some finagling todo with the underwriting.
There are certain DSCR lendersthat will just use the rent
schedule.
There are others that say no,no, we're going to use whatever
the actual rent is.
You know.
(11:38):
So the, the, the what, if it'snot being rented, then we're
going to get the fullmaximization of what that rent
schedule is.
So we'll be able to be in abetter position.
You know, overall I've got akind of a neat story for you.
You know we did a DSCR loan forsomebody that lived in
(11:59):
California that was buying or,I'm sorry, that was refinancing
an investment property in ourneighborhood.
And he found our name and foundus and, you know, contacted us
and you know the property washis mother's.
It was, you know, was 30 yearsold, the tenant had been in
there for a year or two and hewas charging way below market
(12:20):
rent.
I mean, this was a $5,000 amonth neighborhood and he was
charging $1,000.
But the property was in thatcondition and so the refinance
was to pull all the cash out torefurbish the house and get it
back up to market condition sothat he could start renting it
for the real rent.
And so we went through and ofcourse, like I said, the rent
(12:43):
schedule came in at $5,000.
We were pulling out over$100,000 worth of equity.
But we found a DSCR lender thatsaid he had to write a letter
of explanation that said, hey,yes, I'm renting it below market
rate, this is what I'm usingthe money for, this is what we
will be renting at market rateafterwards.
And we were able to do the loanfor them using that much higher
(13:03):
number.
So again, that's where some ofthe strategy kind of comes into
it.
But when you're just buying itand it's a non-rented property
beforehand, then you're startingwith a clean slate.
It's much easier, it's muchsmoother.
The only number that we have touse is the number that's coming
from the appraiser, and that'sprobably going to be a higher
(13:24):
number than what somebody who'shad a three or four or five-year
tenant in the property wouldhave had anyway.
Speaker 1 (13:30):
Yeah, wow, okay.
I love that because I havepeople that will ask me you know
about investment properties,you know down in Florida, since
obviously I'm licensed here andthere and so people will ask
about it, you know, and so I'llalways like set them up with a
search and it sends them stuffand then you know, so it would
(13:50):
be so great to you know, be ableto like let them know that,
yeah, and now there's this newway that you can, you know,
finance it and it's not just allthe traditional stuff.
Speaker 2 (14:00):
Yeah, it really is.
You know, in the Fannie andFreddie Mac will come back as
rates start dropping, There'llprobably be a little bit more
appetite for loans.
I tried to price one a coupleof days ago and it still was
really bad.
I could technically do it butit was still pretty bad.
(14:22):
So you know these types ofproducts have really exploded in
availability here in the last.
You know really two years inavailability here in the last.
You know really two years.
And now they've got enough ofthem and seeing how they're
performing that you're startingto see more options open up,
(14:44):
more guidance.
You know, coming in more likewe'll do it with this, we'll
make this exception, we'll dothese types of things and it
really is going to end up beinga very, very, very competitive
model compared to you know, thetraditional way of doing this
and it's so much less.
You know paperwork that'sassociated with it.
Even if you can qualify throughthe old method, this is and
(15:08):
this makes sense.
You know this isn't a make upyour own numbers loan that you
know kind of got us in troubleback in 2006 through 2009.
You know this isn't make it upand you're using the property,
that is, the equity and theincome that you can expect from
that property to support whatloan you're doing for that
(15:33):
property and it just makes sense.
You know, just on the bigpicture of things it's like,
okay, yeah, what does it matter?
I mean, as long as I've got agood credit score and I'm not
being late on my payments, whatdoes it matter, these other
things?
You know, what does it matter?
If I've got a $2,000 car loan,it really shouldn't.
It really should be theproperty you.
(15:54):
It really shouldn't, it reallyshould be the property.
That kind of focuses, andcredit score does play into this
.
You will get better loans athigher credit scores.
If your credit score dropsbelow a 620, this is going to
get difficult for you.
This is not going to be an easyloan to do with a lower credit
score.
660, 680, it can happen.
700s things start gettingbetter.
Above 740, you're going to getthe best options that are
(16:15):
available.
Speaker 1 (16:16):
Yeah, I'm glad that you touched on that because
about the 2006, 2008, this isn'tthat made up world that we
lived in back then.
You know.
I'm glad that you brought thatup because I'm certain that you
know people listening are like,oh, that sounds like we're going
to.
You know this, it's all goingto crash again and we're just
going to have this huge, youknow, like a crash and recession
(16:40):
and you know just all, all thebuzzwords that everyone wants to
use.
So I'm really glad you touchedon that.
Speaker 2 (16:45):
Yes, yes.
So here's my opinion on on that.
And you know this is um.
You know I was in the market, Iwas a lender during that
timeframe, you know, and Iworked at Bank of America, which
once they purchased Countrywideyou know they were an epicenter
company then they purchasedMerrill Lynch, you know, and
(17:06):
then we were in, I was in thestate of Florida, you know,
epicenter company, epicentermarket.
You know we were in the thickof it here.
And I know how loans were beingdone, even the conservative,
fannie Mae, freddie Mac loans.
Numbers were being made up, youknow it was.
(17:27):
It was fast, easy, quick, andthere was this continual cycle
of the appraiser and theinvestor, the loan officer, the
title.
Everybody had to kept checkingoff on it as things kept going
round and round and round andround and there was no way to
(17:48):
kind of get off of that and thedocumentation got less and less
and less for even conventionalloans.
And so you know that was acrazy disaster and you could see
it coming, and there was atremendous amount of supply.
The demand was way down andthere is nothing similar in this
(18:12):
market that we're in right now.
You know, if you go back andyou look at what the supply was
back then versus what the demandwas.
We were headed for a cliff andit should have happened in 2006.
But all these artificial loanprograms kept propping things up
and everybody was an investor,everybody was a flipper,
everybody was doing loans.
I'd say probably 40%, maybe 50%of my loans were for investors
(18:34):
that year.
And you know, in 2007, 2008,like as we were getting towards
the end, and it was it just thetrain just kept rolling and it
fell off the rails.
You look at the market rightnow and now, demand is high,
supply is low Basic economics101, you cannot have, you know,
(18:56):
a falling price when you havehigh demand and low supply.
I can assure you loans are notbeing done by checking
somebody's pulse, which is whatit was like back then.
It was really.
Was that bad at times?
Yeah, it was.
You know that is not happeningnow, you know.
So those two things alone andevery loan that I'm doing now.
(19:19):
You know I've done a few ofthese DSCR loans.
You know I probably did 10 or15 of them, you know, this year
so far.
But it's by far not themajority.
You know it's a neat niche,it's a neat tool by far not the
majority.
You know it's a neat niche,it's a neat tool, but the
majority of my clients I'd say80, 90, you know 95% of my
closings are primary residents,people that are out there buying
(19:41):
right now.
It's not investors speculatingon that.
The price is going to go up.
These are people trying to buythe home that they're going to
move into and this is my.
I love listening to YouTube andFacebook and all these things
and listening to you know whyit's going to crash.
But here's my advice as soon asthe person who's presenting the
(20:03):
information uses 2006 to 2009as a reason or as a supporting
case, or, as it happened before,it's going to happen again.
They're done.
They've lost all credibilitywith me because there are too
many things that arefundamentally different in how
(20:24):
and where we are right now inthe market to compare it to that
black swan event and whatcaused that and what caused that
buildup.
So if that's your case thatthat's why this is going to
implode right now, then you'velost all credibility with me.
You know, and I stoppedlistening.
And you know there are otherpeople that have other reasons.
(20:46):
Okay, maybe you know, I'lllisten to them and you know,
maybe they've got some.
You know, oh well, you know therays from you know Mars are
going to cause this and it'sgoing to OK.
Fine, I'll listen to thatbefore I'll continue to listen
to somebody say, oh well, ithappened in 2009.
So here we go again.
That is the worst argument forwhat we think is going to happen
(21:08):
in the market right now.
Basic economics 101, supplyversus demand.
You can get a master's, you canget a PhD in economics and it
always focuses on some littlemicrocosm of either supply or
demand.
But the lesson always startswith supply versus demand and at
(21:29):
least here in Florida, there'sway too much demand and not
enough supply.
That's my opinion.
Speaker 1 (21:36):
Yeah, I love that and I feel like there's still a lot
of areas that are stillallowing rentals.
Some of them are making it.
Uh, you know, you have to havea minimum of three months or you
know a minimum of nine monthsor a minimum of a year, things
like that.
So sometimes there are, but Ifeel like there's still so much
(21:57):
opportunity, uh, there inFlorida.
You know, I'd love to hear,kind of your, your thoughts on
that.
That's just my, my take on it.
Again, I don't have a crystalball, I can't tell you what's
going to happen, but in myopinion there's still so much
opportunity to invest in Floridabecause they do have so many
areas that still allow it.
Speaker 2 (22:18):
And I think that anybody who's looking to invest
in real estate like this,they've got to have a realistic
timeframe.
You know, in most situationsyou know you're not, you're,
you're barely going to cashflowthe first year or two.
And if you're positive in thefirst year or two, you found a
(22:39):
great property.
You know realistically rightnow.
You know there's not a lot ofcheap properties or you bought
an inexpensive property and youdid a lot of really great work.
But if you're cash flowingpositive early on, then you're
doing fantastic.
But the part that you have tokeep locked into your brain is
like OK, you're locking in thecost of your loan.
Right now, regardless of whattype of loan you do, you're
(23:02):
doing a 30-year fixed.
You're locking in your cost andthe only thing that it can do
is go down.
If we do a refinance for youand lower the rate.
You know, but you're locking inyour cost.
Rents are going to continue togo up.
I don't know how fast, I don'tknow how much, but in 10 years I
think we can all agree thatrents are going to be higher
than they are right now.
So if you're locking in yourcosts, you're locking in your
(23:24):
cost basis.
Your cash flow is going toimprove as rents continue to go
up, and that's where you shouldbe looking at your model of
whether or not the appreciationis the cherry on top at the end
when you sell.
That's not the investment.
That's the kicker at the endthat says thank you for playing
(23:46):
the game.
But that is the differencebetween speculation and a cash
flow investor.
If you're buying simply for theprocess of appreciation, that
that's your only way that you'reexpecting to make money.
You are speculating.
There's plenty of people that doit that way.
There's plenty of people thatgo to Vegas and make money.
(24:07):
I'm not one of them.
Every time I go to Vegas, Ilose money.
I don't need to speculate.
You know, if I'm going tospeculate, I'm at least going to
try it in the stock market,which isn't much better, but you
know.
But cash flow and looking atyou know where your return on
investment is going to be like.
Ok, here's my 20% down over 10years.
(24:28):
What's my ROI going to be?
Return on investment over thatperiod of time?
That's how an investor buys.
That's how an investor looks attheir timeline and that's where
you can do well.
You're not going to get throughthe first year or two, and then
it's just going to steadilybuild from that point forward.
For you.
Speaker 1 (24:47):
Yeah, I love that.
Now, as far as closing costs,when you're looking at a DSCR
loan versus like a conventional,you know, or a Fannie Freddie,
you know, normal way of doing itI use normal very loosely, but
is there any difference in theclosing costs?
Or you know anything additionalthat they would have to pay,
(25:10):
since it is kind of an outsideof the box thing?
Speaker 2 (25:13):
Um, that's a great question and I there's, as
always, there's more, there'smultiple answers, but let me,
you know the, the, the titlecompany, the doc stamps, the
intangible fees, you know all.
All the other costs are goingto be the same.
You know, regardless, because aDSCR is a non-qualified
mortgage, you're typicallygetting that through a loan
(25:35):
officer such as myself thatworks for a non-depository bank
or an independent broker andwe're brokering that product
through, you know, a non-QMlender.
It is very common in thosetypes of loans for you to pay a,
you know, origination broker'sfee.
You know.
So there's always that balanceof paying points versus the
(25:58):
interest rate and that we talkedabout a little bit.
You know last, where you knowthe more you pay, the rate goes,
you know, but it's directlytied to the rate.
A broker fee is straightcompensation to the loan officer
and their company, you know so.
Now, sometimes and this iswhere it gets a little wonky you
(26:19):
can, we can, work that into theto the interest rate if you
want.
When I typically run again ROI,you know return on investment,
it typically works out better tojust pay it as a flat fee and
get the lower rate rather thanit being worked into the rate.
But that's an in-depthconversation for you to have
with your mortgage professionalof.
(26:40):
Should I pay this broker's feeas a fee or should I pay this
broker fee as an adjustment tothe interest rate?
You know where it's beingworked into that.
So, yes, you're going to pay alittle bit more for this loan is
the broad answer, and therate's going to be a smidge
higher because you know theseare private.
(27:03):
You know non-qualified mortgagesthat are not being backed by
Freddie and Fannie, so you knowthere's a little bit more risk
associated with doing them.
So those investors want alittle bit higher, you know,
return on their money.
But when Fannie and Freddiearen't doing loans, you're
comparing it to what was twoyears ago, not what is right now
(27:23):
.
You know saying this is a moreexpensive loan than oh wait, we
can't do this loan.
You know that's not moreexpensive, that's just there's
nothing to compare it to when itgets back to.
If they start doing them again,then there'll be a little bit
of a comparison to look at.
But as it is right now, we'renot comparing it to something
(27:44):
that doesn't exist.
Speaker 1 (27:45):
Yeah, I love that.
Well, thank you so much fortaking time out to kind of
explain this.
I think that you know youanswered a lot of really great
questions for you know thelisteners so that they can fully
understand, kind of how theycan jump in that investment
market.
Cause you know, you hear allthe time like you know, buy real
estate, buy real estate, investin real estate, and you know so
(28:07):
.
Then people are like, okay,well, where do we purchase it?
And you know so people arelooking at Florida.
So I appreciate you kind ofbreaking it down and helping
people understand you know alltheir options that they have.
Obviously it's all a veryunique situation.
There is no one size fits all.
So you know, I can only assumethat your process is the same.
(28:28):
Whenever someone calls you foran investment property versus a
primary residence, you're stillgonna have that conversation.
You're still gonna talk to them, find out their goals, find out
their like, look at theirfinances and figure out the best
route for them.
Speaker 2 (28:43):
Always starts with a discovery.
Call.
We find out what your goals are, find out your information and
then we start presenting optionsoptions customized to fit your
scenario.
You know and this is just onemore option and pathway that we
can choose if your goals are topurchase investment properties
or second homes that you plan on, you know, renting out on
(29:05):
Airbnb when you're not there,you know that line is a little
grayer in this world than it isto Fannie and Freddie, so
there's different options andvarious options that we can put
together there for you.
So please call, speak to a loanofficer.
(29:26):
I'd love it if I had theopportunity to work with you,
but even if it's not me, talk toyour loan officer.
I'd love it if I had theopportunity to work with you,
but even if it's not me, talk toyour loan officer.
Make sure that they understandthis in detail.
If they're not giving you highquality, detailed information,
find another loan officer.
This is not something you wantto do with somebody who asks if
you want fries with that whenyou finish.
Speaker 1 (29:47):
I love that.
I love that.
Well, thank you so much, and Iknow we're going to have you
back on for a few morediscussions, because the
information that you'reproviding is invaluable.
So, thank you.
Speaker 2 (30:00):
Thank you.
Speaker 1 (30:01):
Yeah, absolutely.
As always, I will have all ofNathan's information in the show
notes.
So if you want to reach out tohim to have, you know, a
discovery call to figure out ifit makes sense to work with
Goldstar, work with Nathan andhis team, and also, you know,
whether it makes sense to investnow or later or purchase a you
know a second home or your firsthome always, you know, just
(30:23):
give him a call Again, all thatinformation will be in the show
notes.
But thank you so much forjoining us today.
Always leave a review, becausethat is feedback, is the
greatest gift that you can giveme.
Please make sure you're sharingthis with others, because that
is the greatest compliment thatyou can give Nathan and I, and
make sure that you're followingthe show so you never miss an
episode.
(30:43):
Thanks so much and we'll seeyou next time on, come to find
out.
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