Ep. 134 | Financing Your Second Property (Taxes & Mortgage) - Teaching Tax Flow: The Podcast

Episode Transcript
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John Tripolsky (00:01):
Welcome back to the teaching tax flow podcast
episode 134 today. We are joinedby a great guest as we explore
financing on a second propertyand what that has to do with
your taxes. But before we dothat, as always, let's take a
brief moment and thank ourepisode sponsor.

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Hey, everybody. Welcome back to the teaching tax
flow podcast. As always, we findthe brightest people that are
out there to join us as a guest.We have to say that because I
can't let everybody think thatChris is the brightest person
that we always bring on thisshow because, you know, if we
give him a big head, he won't beable to fit through a doorway,
so we keep him, we keep him incheck that way. So as you've

(01:16):
seen in the title and the shownotes, if you haven't taken the
time to read those yet, I'mgonna give you the little brief
synopsis of what it is.
We are gonna talk about what itis and how it relates to taxes.
So what it is today is financinga second home. So you might be
thinking, why in the world arewe trying to relate that to tax

(01:38):
as well? If you don't know why,we're gonna dive into it. If you
do know why, you know exactlyhow we're gonna tie those two
together.
So without further ado, ChrisPacquero, welcome back to your
own show, sir. How are we doing?

Chris Picciurro, CPA (01:51):
Oh, I am doing great, John. I have my
favorite color on today, purple.So those listening on Spotify,
Apple, oh, just jump on toYouTube so you can you can see
this beautiful color. But, no, Iam doing great, and everyone
knows that financing and taxesare very related. We talk a lot
about bankability andtaxability, and your tax return

(02:14):
has a direct effect 99.9% of thetime on purchasing a second
home.
There are some, obviously, someprograms out there that don't
look at tax returns, but but I'mnot the one to discuss that. We
have an expert. I would say, inmy opinion, the best way to
describe Parker is she is apowerhouse in her in her

(02:36):
industry, and I'm so excited tohave her on this podcast. We're
going to talk about financing asecond home. And Parker is, is
the branch leader and, at WealthBuilders Mortgage Group powered
by Movement Mortgage, but shealso owns and operates many

(02:57):
short term rental properties.
And and why that's important iswhen you're taking advice from
someone, you wanna make surethey're eating their own
cooking. Right? And and that'svery important to us. So, Parker
Barofsky, welcome to our show,the Teaching Tax Flow Show. How
are you doing today?

Parker Borofsky (03:14):
Doing great. Thank you. I'm really excited to
be here. I love just sharing.I'm a mortgage nerd, so the more
I can share, the better.

Well, that's good. Well, we are we're
nerds also in our own in our ownlittle ways. Well, probably big
ways. No. Pretty much nothing Ido, is is not nerdy, except
maybe anything related tobaseball, but everything else is
really nerdy.

But I thought you were gonna say something
else there, Chris. I thought youwere gonna say a different sport
that you

always that sport. I'm not gonna
mention that But but no. Sowelcome. Before we dive into
strategizing, because I think alot of times what people forget
is that the mortgage applicationoccurs before you click submit.
Right?
You've got to just like youstage a house, you stage your

(04:05):
tax return. We legally andethically reduce the tax you pay
in your lifetime by staging thereturn, making it within the
rules, look to your benefit, youknow, and as a taxpayer, to
reduce your And we know thatyou've got to kind of stage your
finances, maybe stage yourcredit score to get the best
rate, the best acceptancepossible. But before we dive

(04:26):
into all that and how to financea second home, tell us a little
bit about your history, a littlebit about yourself, and how you
got into the mortgage businessand then into operating and
owning short term rentalproperties.

Awesome. Yeah. Thank you. Those are long
stories. I'll cut them into tolittle pieces here.
So so essentially, I was aftergraduating college, I went into
timeshare marketing, not sales,marketing. Big difference. For
those of you who are timesharesalespeople out there, you have
a skill set. Oh, well, not have.So yeah.

(05:04):
So I did timeshare marketing forten years, and that's how I
eventually ended up from SanAntonio to Tennessee. And then
once we landed here, my husbandgot an engineering job in
electronic engineering at Denso,which is a big manufacturing
plant. And so that gave mefreedom to explore. We had just

(05:24):
purchased a house, so I told myloan originator that, you know,
I was kinda interested in whatshe did. It seemed kinda cool.
And she said, well, afterclosing, not before, I'll get
you an interview with the withthe managers there. So I did. It
was kind of weird. It wasserendipitous, actually, because
when I went in for that thatmeeting, they said, hey. Do you

(05:46):
know Dusty Tonkin?
And I said, well, yeah. He's bigwith Wyndham. That's who I'd
worked for. And they said, well,do you know his dad owns half of
this mortgage company? I waslike, I you know, nope.
I had no idea. So it was kindait was kinda like the universe
coming together. It was veryinteresting. So that's how I
started in mortgage. And theneventually, I met Avery Carl

(06:09):
about a year later, and financedsome of her properties in the
Smokies.
And as she grew her business, Istarted financing a lot of
clients, and I noticed thatclients were coming back and
purchasing two or threeproperties, which was
interesting. I was like, Okay.And then when they would bring

(06:29):
their bank statements to me, Iwas seeing all the Airbnb
deposits. And I was like, okay.I can do the math here.
Like, I know the mortgagepayment. I see these deposits.
Like, this is good. And so 2018is when we bought our first
actually, three. So we purchasedwe closed on one in January and
two more in the fall that year.
So that's that's how we gotstarted. We now own 12 short

(06:52):
term rentals. We're generatingover a million dollars in gross
revenue each year. And, yeah, Ilove the community. And then
financing wise, so financingshort term rentals and
complicated situations, blessingand a curse, but it's turned out
to be my superpower.
So give me 10 business returns.I'll pick them apart. So

yeah. That is a superpower. No no doubt
about it.

Yes. Yes. Just a reminder, I I'll take easy
ones too.

Right. A great disclaimer. Isn't isn't a
bad idea. You know? I've gottaimagine in the mortgage
business, it's kinda, you know,one of the things I preach all
the time is there is no suchthing as an easy tax return.
And when someone says they're aneasy tax return, you know it's
not. Like, they just don't havean idea. Like, you know, I'll
give you an example. Someonecould say, oh, I've got an easy
I've got a w two. I'm and I'vegot, but, you know, I've got

(07:50):
maybe a couple little things,and then you get into, oh, well,
you know, you know what?
We you know, I ended up getting,you know, legally separated, and
now the divorce is fine. Well,who's claiming your
independence? Oh, I don't know.I gotta look at it's never easy.
So you could have someone that'sa court easy mortgage company or
more easy application, and thenyou start asking them questions.
Oh, well, yeah. I bought a carlast month, so I took a lot of

(08:11):
money out of my savings, and nowI'm doing like, oh my goodness.
No. So I empathize. I don'tthink there's any there's
probably not many easy ones, I'dimagine.

No. No. I call them gotchas. There's always
little gotchas I try to stay twosteps ahead of. So luckily,
we're really good at that.
And, yeah, so it's turned out tobe awesome. I've I've actually
closed over 1,100,000,000.0 inshort term rental loans in the
last few years.

So Wow. Wow. So let's dive into someone
buying a second property andkinda what what those buckets
are gonna be, because I'mimagining someone could be
buying a second property that'ssimply a second home, a cottage,
something they're never gonnarun out. Someone might be buying
something that they very rarelystep foot in, like a short term

(08:59):
rental property. Someone couldbe buying just a single family
home, or maybe it's let's justtake it into, like, a a a four
or six plucks, you know, smallerapartment building.
What are some of the things thatthat that someone has to think
about before buying theproperty? Obviously, use. And

(09:20):
what would that first step be tosay? It's almost overwhelming.
Like and and it probably it itall comes down to it depends on
what loan programs are outthere.
But what are the most commontype of taxpayers you you and
your team work with that arebuying a second property? I know
you said short term rentals. But

Yeah. We when you say the common type of
taxpayers, what do you mean?

Yes. Yeah. Common type of taxpayers are
yes.

So we've got I mean, everything from w two
earners, self employed,sometimes we're qualifying
clients just based off of rentalincome once they get to a
certain point. So the secondhome, there's so many different
products that can be used now,and there's two different
definitions. Right? And,actually, this is somewhere
something we can probablyclarify with you as well. So

(10:10):
second property, number twoproperty, right, you can
purchase that as a second home,which is with if it's a
conventional loan, 10% downminimum.
Investment occupancy, which isminimum 15% down.

Mhmm.

Or you can use some of the non QM products,
which are typically gonna be 20%down. There are some cases we
can do a ten percent second homenon QM product as well. So when
you say a second so secondproperty, yes, can be any of
those categories you justmentioned. Now second home
category, though, that one whereyou can put the least down

(10:48):
payment. Let's talk about thatfor a second.
So I get this question all thetime, and I do always tell them
to defer to their CPA, because Iget the question of, well, if I
buy a second home, can I stillwrite it off on my tax on my
taxes? So here's what I tellthem, and then I tell them to go
check with the CPA. Right. Itell them my understanding is

(11:09):
yes. As long as it meets the IRSdefinition of of investment
property, you can.
And so maybe can you answer thatfor me?

Sure. I it's situationally dependent, of
course, like anything, buthere's the here's the situation.
If you buy a second property orsecond home, if it is just a
second residence let's sayyou're a snowbird. And I know,
Parker, you guys spend a lot oftime on, in the beautiful
Emerald Coast and haveproperties there Yes. Like us.
Yes. But let's say you're asnowbird. Absolutely. You can

(11:39):
deduct your mortgage interestand property taxes as an
itemized deduction. It's notit's considered a second
personal residence.
Now once you get to the pointwhere you start renting that
out, then that that moves in ingeneral onto schedule e as a
rental property. And and thenthat's at that point, you can
then start deducting all of theexpenses, you know, maintenance

(12:02):
and insurance and, you you know,in but there are there are
different rules depending onone. Is it considered what's
called a short term rental or anSTR for under code four sixty
nine, section four sixty nine,or is it considered if it's not
a short term rental, then it's along term rental. Midterm
rentals are still consideredlong term rentals. There's no

(12:23):
midterm rental in the tax code.
And and then you have to look atyour use days. Is there mixed
use? Are you using itpersonally, or are you not using
it personally? The bottom lineis once you start running it
out, 99.9% of the time, it'sgonna go on the schedule e, not
schedule c. It depends.

Thank you.

Yeah. Schedule e. And unless you have
it in, like, a partnership or orsome type of multi member
entity. So

Definitely. Okay. Great. Yeah. And something
else I I remind clients of,because if we're doing a
conventional Fannie Freddieloan, and some of the jumbos and
some of the non QM as well, theyeach have different guidelines.
But we can we can do a secondhome loan with ten thirty one
funds. However, because becausemortgage and taxes, they run

(13:16):
parallel. They don't reallyintersect much except for
qualifying. But the IRS doesn'tcare what kind of loan you have.
If you have a second home loan,the IRS doesn't care.
Right? They're not looking atthe loan type. They're looking
at your usage. Is that

Chris Picciurro, CPA: Absolutely. And that's a great (13:30):
undefined
point. A lot of times, I hearclients say, well, I'm I'm
buying it as a primaryresidence, but I'm but I'm gonna
convert it to a rental. So okay.That's fine.
Mortgage qualification iscompletely different than that.
The IRS doesn't care. Whatthey're worried about is as an
ordinary necessary expense. Now,obviously, if someone buys a

(13:51):
property, there there are ruleswith, you know, legal legality
issues that I'm not gonna touchon as far as what your intent on
the property is. But a lot oftimes, what we see is that,
someone might go, I mean, mightgo with that 10% down loan as a
second residence.
And then subsequently, afterowning it a little bit, they

(14:13):
might decide to rent it out. Youknow? Because it it it you could
still have a short term rentalproperty or short term rental
tax loophole qualified propertyon any type of mortgage. The
mortgage type really doesn'tmatter. That comes down to the
use.
The use of the property dictateshow you report it on your tax
return, not the type of mortgagethat you have. So Yeah.

Absolutely. Yeah. And the the def what's
that?

Oh, well, I was I'm sorry. I didn't
interrupt because I'm reallygood at doing that. Q you
mentioned QM. You said non QM.Can you clarify that for maybe
someone that doesn't isn'tfamiliar with that term?

Oh, yeah. Absolutely. So so your your
typical loan types, yourconventional loan, Fannie,
Freddie, those are calledqualified mortgages or QM. And
what that means is that thoseloan products meet the
requirements that the FederalHousing Finance Agency or the
CFPB put in place after 02/2008.So there's very specific ways we

(15:11):
can calculate income and and howwe can look at that.
When you get into non QMproducts, these products allow
more leniency. So this is wherethey allow so nonqualified
mortgage is what that standsfor. It just means it doesn't
meet those definitions andrequirements that the government
set forth. So this is where soDSCR, debt service coverage

(15:32):
ratio, is an example of a NonQM.Bank statement loans, where we
look at gross revenue on bankstatements is another on a non
QM.
And there's even full doc nonQMs. And, Chris, I don't I don't
think I've even told you aboutthis, but we have a really cool
full doc product, which meansit's still it's a non QM loan,

(15:54):
still based on your debt toincome ratio. But what it allows
if you're if you're on shortterm rentals, instead of looking
at your tax returns to calculatethe income, we can take the most
recent twelve months grossfronts and 80% of that and just
use it flat out.

That's awesome. I I know that there are
the thing is there are productsfor almost everyone's situation.

Yeah.

You mentioned because a lot of times
there are no easy mortgageapplications. But quite frankly,
people with high w two twoearnings that and stable jobs
are considered less risk, in myopinion, even though as as, you
you know, entrepreneur of overtwenty years, I don't look at I
mean you know what I mean? Theentrepreneurs kinda look Right.

(16:41):
At going to that higher riskcategory. But like you said,
there there are there areproducts available for someone
that that receives a $10.99 inin consistently.

So I'm I'm closing one on a ten ninety nine
product this week. Yep.

Why? So on the so there so, basically,
you've got the qualifiedmortgage and then the non QM
buckets. In your experience,what's the breakdown
approximately of between QM andnon QM on on second property
purchases?

I I mean, I do a lot of conventional second
home products. The the benefitso oddly enough, the interest
rates right now between the nonQM and the the QM loans aren't
really that far apart. Mhmm. Thebiggest difference is gonna be
typically with those non QMloans, they're gonna want
slightly higher down payments.So Right.

(17:35):
Like, right now, the rates, the10% down non QM, the rates
really are not pretty. But onceyou get to 15 or 20% down, then
they start looking a lot morelike the like conventional
loans.

Mhmm.

So so they're good. But that's that's the
drawback. Since they're a littleriskier, they want a little bit
more skin in the game to getthose lower.

Right. But a lot of people, like, we out
there, and you know, in in thereal estate business, it's you
you marry the property, you datethe rate. So if if you're
listening to this or knowsomeone listening to this that
already owns a second property,and let's say they're kinda
grumbling, oh, man. I, you know,I wanted I wanted to close in
2424 with the maybe it's a shortterm rental with a higher bonus

(18:14):
depreciation percentage, butgolly, it's I'd really like to
refinance it or take a look atthat. Is there typically a
because this is about financinga second property.
It doesn't mean it could be aproperty that you already own.
You know, so I'm gonna pivotback to applying, but since
we're on this topic, when doesit make sense for someone to

(18:36):
consider refinancing a propertythat they're in right now?
Because I know some of the QRQM, can tell you, in personal
experience, sometimes there is aprepayment penalty. But, again,
it's all it's you gotta look atthe breakeven point and and how
and and that sort of stuff.Yeah, what are some when should
someone consider talking to youand your team about refinancing

(18:57):
a second property?

Yeah. Absolutely. So so going back to
to to the second or third orfourth additional properties
that you own. So when to refiwell, first of all, let me start
by saying, right now, I wouldn'trecommend anybody do a loan with
a prepayment penalty. I mean,we've we've got loan or at least
not more than twelve months.
So our QM products do not haveprepayment penalties except for

(19:23):
the DSCR you have an option, butwe also have great rates on no
prepay penalty. So I typicallylook, I know short term rental
investors out there because I amone. Right? And, yeah, you might
think you're gonna hold on tothis property for the next three
years, but then you get youknow, then you see this shiny
object, and then you wanna selltap into equity and buy this

(19:44):
other one. So that's why Ireally don't want that, and I do
believe rates will come down inthe next few years.
So currently, if any followthose of you listening out
there, please really make sureyou want to do anything longer
than a a one year prepaypenalty. Now when is it time to
refinance? So it depends. So ifyou have a higher loan amount,

(20:06):
the rates need to drop less thanif you have a lower loan amount.
So if you have a million dollarloan amount, you know, you may
be if rates drop half a point,it could be worth it for you.
But if you have a hundred and$50,000 loan amount, you it
really may not the cost of therefi may not be beneficial until

(20:26):
the rate drops 2%. And the wayand then also depends on what
state you're in. So Florida isthe most expensive state I'm
aware of to refinance in becausethey charge mortgage stamps,
which are pretty high. And sothis is where I would encourage
you to get with your lender andlook at the cost, the closing

(20:48):
costs, versus your monthlysavings, see how long it's gonna
take to recoup, and that's howyou determine. So yeah.
And those in the middle thathave, I'd say, I don't know,
400,000 to a million dollars or8 or 900, probably about a point
when the rates drop to makesense as a general rule of

(21:09):
thumb.

Well, that's a great rule of thumb.
Mhmm. Yeah. So thinking aboutthat financing a second
property, obviously, your downpayment can range based on a
variety of things. And and Iwould imagine, you know, when we
talk about second property, itcould even be a I mean, let's

(21:31):
just say let's say someone is avet let's say someone's an
active military person.
They live in your home originalhometown of San Antonio could
very they're probably in the AirForce, maybe. We'll see. And
let's say they are movingsomewhere else, and they need
they need to buy that next housebefore they sell the other one.
They might rent the other oneout. They might keep it.

(21:54):
They could potentially couldthey get a VA loan on an on a
second property, potentially?But if if and what are kind of
some of the rules there?

The you can. Yeah. So if you're buying if
you're moving into now veryimportant, the VA has to be a
primary home. Right. You can,though, convert.
If you're moving, you canconvert that one to a a rental.
You don't have to refinance it.It's fine.

Yep.

Yes. You can have two VA loans at once.
There's a certain calculation wehave to take a look at to see
how much you could qualify for.It's kind of a weird percentage
and fractions thing. But, yeah,we can look and see how much
entitlement is there, and whatthey would qualify for a second
VA mortgage.
There's also they could re theycould refinance that one out if

(22:39):
they wanted to. The first one,there's a one time restoration
of benefits they could applyfor. And then for those out
there with who have VA loans,just so you know, typically,
except for that one timerestoration if you ask for it
and they grant it, typically,just refinancing a home is not

(23:00):
gonna to replenish yourbenefits. You'd have to get that
house also the title out of yourname. Mhmm.
So you'd have to refinance andget the title out of your name
in order to restore thosebenefits. Gotcha.

Mhmm.

Well, let's talk about as we kinda
wrap things up, because we weredefinitely gonna have you back
to talk about some more mortgageissues. I'd like to start diving
more in even though the primaryresidence. But on the second,
let's think about or let's kindof give people some pointers on
if they're thinking about buyinganother property. When what's

(23:35):
the time frame for, one,contacting their, mortgage
partner? And two, what are someof the things they could be
doing to kind of preparefinancially, for that
application?
Because, ultimately, it's asnapshot of where you stand the
day you apply with a little bitof look back on on your income.
But, yeah, what are some of thethings they could do to to cast

(23:57):
themselves in the best light,we'll say?

So the beautiful thing so when we
initially talk to a client, thatdata is not permanent. So I'd
say before you you gotta talk toa mortgage person before you
know how to prepare.

Okay.

Great. Yeah. Definitely. So as soon as you
start even thinking about beforeyou open Zillow or realtor.com,
as soon as you start or if youdo, start browsing, that's when
you need to contact a mortgageprofessional because that's when
you need to get a good idea ofwhere you stand. And also, if
there are things you need towork on, that's where they can

(24:34):
provide guidance.
And so but without knowing yoursituation, you know, like, we
can do a soft pull on yourcredit, which is important
because it imports your monthlyliabilities we have to take into
account for debt to incomeratio. You know, we can talk
about how much money do you havesaved for down payment, Where is

(24:55):
that gonna come from? And youcan talk to somebody who knows
how to help you best prepare forthe down payment. So, yeah, I'd
say as soon as you have in yourmind that you possibly want to
purchase a second property,that's when you should contact a
mortgage professional. And ifyou talk to somebody who doesn't
seem like they understand, talkto a few people.

(25:19):
Or if they're not giving you theif something doesn't feel right
about what they're telling you,and especially if you talk to a
loan officer who's verylimiting, no. You can't do this.
No. You can't do that. They justprobably either they don't have
the products, and they don'twanna tell you that, or they
just don't know better.
Right. There are a lot so backto the the second home. So not
necessarily a second property,but that second home loan, that

(25:40):
10% down. There is absolutelynothing wrong with buying a
second home and renting it onAirbnb. As long as you're buying
it with the intention thatyou're gonna use it some portion
of the year.

Mhmm.

Meaning, you know, some people get one week
of vacation a year. Some taketwo. Some take a few weekends
here and there. Whatever yourdefinition is of going, they
just wanna know that you alsopersonally want to use that
property. So but as long as youintend to occupy that some
portion of the year, totallyfine to rent that out on Airbnb

(26:12):
the rest of the year.

And that's a that's a QM 10% down second
residence product. Is that yep.That's what I see the most part
on that first short term rentalproperty. A lot of times, it's
gonna be at ten percent secondhome loan. So no.
That makes sense. And and,again, you have you wanna work
with people that have done itthemselves. Like I said, eat

(26:35):
your own cooking. I mean, that'sI mean, that's that's that's
life in general. Right?
And then once I once you sitdown with somebody, you have to
prepare yourself becauseespecially now in that
environment where you're makingoffers, you need to make sure
that you have your lending linedup ready to go. And and and you

(26:56):
need to be really transparent.Right? I mean, you've gotta if
there's some on your credit,they're gonna find out
eventually, or something. Justjust be honest.
And because you can you'd muchrather be partnering with your
mortgage professional nowinstead of it later on. Well,
you didn't tell me you had a taxlien in New Mexico. Well, I
didn't wanna say anything. Oh,well, you got just I worked

(27:19):
there in, what, a couple ofyears, and I just have a tax
bill I never paid. Those littlethings could be a a big problem.

So Definitely. And, Parker, actually, a
question for you too before webefore we really wrap up. So I
know we started thisconversation off a little bit.
Right? Like, there is there'slikely a product for every
situation depending how, airquotes, simple someone may think
it may be or how complicated itis.
Right? So, know, without goinginto a lot of detail on a on a

(27:47):
example of a complicatedsituation, for anybody that's
listening to this, maybe theythink, oh, well, I'm pretty sure
that I'm not going to qualify,or I'm pretty sure that, you
know, my situation is toocomplicated. Like, what what
would you say to somebody likethat? I know, obviously, you
mentioned, you know, talk toyour your lender, your your
professional that you have kindof in your proverbial Rolodex or

(28:09):
yourself. But what else wouldyou tell them besides that maybe
to comfort them a little bit ingoing into that conversation?

I get those calls every day. People feel
like they, you know, they startthe phone call like, yeah. You
know, I don't I know you'reprobably gonna have a hard time
or may not be able to qualifyfor anything. And, you know,
like, 98% of the time, we'llwe'll either figure it out,
figure out a way to makesomething work for them, or set

(28:36):
up a game plan for the future tohelp them understand what they
need to do, whether it's credit,whether it's where are they
gonna get down payment moneyfrom, or whether it's how their
taxes, how their income came outon their taxes, you know? Or
maybe they just started abusiness, and they need to have
one full year before we can workwith that income.

(28:58):
So, yeah, no, I get those callsevery day, and and I kinda smile
inside because I know thattypically, I've got a way to
help. And I've had clients thathave told me they've been turned
down by, I had one that wasturned down by 20 other banks
and lenders. I was his twentyfirst that he came to, and now

(29:20):
we have financed 12 propertiestogether.

Wow.

So, yeah. So if you're being told no out there,
but you know you've gotsomething to work with, keep
going. Keep call me. Callwhoever you need to call. But,
yeah, stay passionate.
I mean, I have qualified peopleliterally not just rental
income, four or five propertiesof rental income. There's so
many great products these daysto choose from. Excellent.

That's a great that's a great response to it
too. And I mean and I and,again, being a marketing guy, I
think that just the generalpopulation, if anybody spends
any time online, right, they'veprobably strongly associated
themselves with a triple digitnumber, and they almost qualify
or disqualify themselves whatthey think is gonna be the

(30:05):
situation, which Yeah. It soundslike that's usually not the
case. Or even like what you weresaying there that I that I know
we will wrap because we go offon a whole another conversation,
which we should have on this.But you probably find yourself
adding so much value to thoseconversations, really being a a
financial coach in lack ofbetter terms.
Right? Like, because you knowwhat they're looking for. You

(30:26):
know, really, their their story.You know their situation. And
Mhmm.
You know, you really I mean,there's lot of trust in it. Same
thing with you, Chris. Right?Like, where they say you're
you're a tax professional andyour your hairdresser or the or
your, like, a indirect You

gotta bring another hairdresser. You
slut.

Oh, yeah. Do. Yes. Yes.

You know, it's funny as I thought about it mid
comment. I'm like, there it is.There's my opportunity.

Well, here the thing is that mortgages and
taxes are very similar. And so afact that from if you have
there's certain people who havethe mentality that they're
they're just a commodity. Andeventually, people that
understand what's going onunderstand that they're not a
commodity. It's a it's arelationship that you have to
have. So that's why we're soexcited.

(31:11):
I mean, I'm really happy we havethis podcast episode. A little

Yeah.

Teaser. I think that we're gonna try to,
twist Parker's arm to we reallywant some more content for our
teaching textual YouTube channelbecause I know that she could
dive into some of these things,in more detail. And, you know, I
think a great video talkingabout, hey. When, you know, when
someone says no, that's okay.There's a there's a ton of peep

(31:37):
I mean, gosh, there's so manyexamples out there, not just in
the mortgage world of peoplethat, you know, get one scholar
scholarship offer, and thenthey're Major League Baseball
now.
Or they they just need you know,I think if you're listening to
this first of all, thank you, bythe way. And, but if you're
listening to if you're notlistening to this, you have no

(31:57):
idea that I just said thatyou're listening to this, so I
don't know why I even say you'relistening to this. You are
listening to this if you listenif you're hearing me, but
understand that that your youryour mortgage, your mortgage
team is your partner, Let's saypartnership, and and you need
them. They guess what? Theywanna give you the mortgage too.

(32:17):
Okay? That's the kind of thecool part about this. And we
appreciate it. And we'redefinitely gonna we're
definitely gonna coerce Parkerin giving us some more content.

Yes. And I would like to leave you all with
a message. Two, actually. Numberone, don't DIY your DTI. Number
your debt to income ratio iswhat that stands for.
Don't DIY your debt to incomeratio. You'll sell yourself
short every time. Number two isfriends don't let friends DIY
their DTI because they will sellthemselves short every time. Get

(32:50):
with a professional. It'scomplicated.
Different products havedifferent guidelines. So yeah.

That's a great way to to close it out. And
really, for anybody, again,that's listening to this, I
mean, obviously, Parker, thankyou so much for joining us. And
I also just realized too thatyour last name may be one of the
only ones that I've seen in avery, very long time that ends
similar to mine, s k y insteadof s k I. So Yes. We'll have a
whole conversation on, you know,that joke side of things that

(33:19):
I've been getting my entirelife.
But, again, for for those of youthat are listening to this, I
mean, you you've obviously beenlistening to it for a while, or
you've chimed in halfway throughor hopefully from the beginning.
But think about this. Right?Like, you've just listened,
basically eavesdrop in and outof conversation from two
different people that really arehelping you get to the same

(33:40):
place that you want to. Right?
Like, unfortunately, Chris, I'mgonna put you in the in the the
not as sexy hot seat. Right?Like, nobody gets excited about
their tax or paying their taxes.But the caveat is the better
you're prepared for that side ofthings, the better you're likely
prepared for purchasing thatsecond home or your first home

(34:00):
or or anything along those linestoo. So you've you've heard the
conversation between the twopeople that could probably help
you the most.
I mean, not necessarily have togo to these two people, but in
general, those two professions.So take that to heart. A lot of
advice came here. My pen is issore. If anybody's watching
this, they've probably seen myarm moving.
I'm writing on my sticky noteson my legal pad as always. And,
Parker, I look forward to doingthose little snippets with you

(34:22):
if you can if we can get you onour YouTube channel. Because I
think there's so many, like,specific questions that I think
we could answer and dive in, andI know there's a ton of stuff.
You know, it was very easy forus to go off into a into a
rabbit hole and end up poppingup in a completely different
world, so we'll we'll have tobehave ourselves,

I

think, in that regard. But, again, Parker,
thank you. Thank you for takingthe time to join us on this one.

Thank you guys for having me. I really
appreciate it.

Excellent. Excellent. And, yep, if
anybody's listening to this,obviously, if you're listening
to it, be sure to check it outon YouTube as well. We have our
YouTube channel. Subscribe tothat.
It's extremely easy to do. Don'tbe lazy. Subscribe to this. When
we do release some more content,you will absolutely get a
notification because it'sautomated. You will literally
get a notification when werelease something new.

(35:08):
Conversations like this, we havea schedule, I think, built out
for the next two, almost threemonths of some fantastic guests,
some great topics. And asalways, keep the questions
rolling in. If you havesomething you wanna hear or
you've heard you wanna hear moreof, shoot it our way.
Defeatingtaxes.com is ourprivate Facebook group. There's
your free invite.
I feel like we're giving away alot of free advice and insight
here today, but that's okay.That's what we're here for.

(35:30):
Check it out,defeatingtaxes.com. Join that
group, and we will see you backhere next week on the teaching
tax flow podcast. Different dayto same day of the week,
completely different topic.
There we go. I tweaked it alittle bit. So thank you
everybody for listening, joiningus, and have a great week.

Disclaimer (35:54):
The content provided is for educational purposes
only. We encourage you to seekpersonalized investment advice
from your financialprofessional. For all tax and
legal advice, please consultyour CPA or attorney. Investment
advisory services are offeredthrough Cabin Advisors, a
registered investment advisor.Securities are offered through
Cabin Securities, a registeredbroker dealer.
The content of this podcast doesnot constitute an offer of

(36:15):
securities. Offerings can onlybe made through an offering
memorandum, and you shouldcarefully examine the risk
factors and other informationcontained in the memorandum.

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Ep. 134 | Financing Your Second Property (Taxes & Mortgage)

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.css-14f5ked{margin:0;word-break:break-word;display:-webkit-box;-webkit-box-orient:vertical;box-orient:vertical;-webkit-line-clamp:2;overflow:hidden;}Ep. 134 | Financing Your Second Property (Taxes & Mortgage)