Episode Transcript
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Speaker 1 (00:00):
The following is a pain commercial program on ninety four
to three WSC. The views expressed by the host of
this program do not necessarily reflect the views of iHeartMedia
ninety four to three WSC. It's advertiser, sponsors or management.
This is The Real Estate Show with Rick Willis, a
show about home sales, mortgage issues, investing in everything about
the American dream and that means a lot as someone
(00:22):
who enjoys radio and really enjoys your program and now
The Real Estate Show with Rick Willis on ninety four
to three in WSC.
Speaker 2 (00:31):
Hello Charleston, Welcome, Welcome to the Rick Willis Real Estate Show.
For those of you that have been my avid listeners
for over the years and are addicted to the show,
I welcome you back. Perhaps you're welcoming me back. I've
been on a several weeks sabbatical, but we're back in
(00:53):
the year now and talking real estate. I have been
very ill for quite a while well and just feel
ready now to get back talking about real estate. I
know a lot of you have had the flu or
other issues. I haven't had the flu, but boy have
(01:14):
I had a heck of a time with a congestion
in my chest and other things going on. That being said,
we're going to talk about real estate today. We're going
to talk about buying a home to live in. We're
going to talk about using real estate as the number
one source of your retirement income for the future. So
(01:39):
welcome aboard. And you're either hearing this show on Saturday
from noon to one or you're hearing it on Sunday
morning from nine to ten AM. And I promise you
there's going to be some things that you hear on
Saturday that you're going to want to tell other people
about so they can tune in on Sunday morning from
(02:02):
nine to ten. That being said, let's get with it.
As of this morning, and it's Thursday morning that we're
recording this show, there's four thousand, one hundred and nineteen
active residential listings for sale. Now that number has increased
over the last number of months, because it is, of course,
(02:25):
for all practical purposes, looking at spring hard to believe,
isn't it that next month, officially spring is here and
next month we go back on to daylight saving time.
I was shocked and surprised when my wife told me
that it's only a couple of weeks away before we
go back to daylight saving time. And by the way,
(02:49):
my personal preferences that we have daylight saving time twenty
four to seven three sixty five, so I hope they
can make that happen. Now, the number of listings are increasing,
and that's good news. If you're a buyer, it's presenting
you with more options and more choices. If you're a
(03:10):
seller in the marketplace, the number of listings is going
to continue, I believe to increase. So you want to
get your property on the market as soon as possible,
all things being equal. If you're a seller, you want
your home on the market for sale competing with fewer
properties rather than competing with more properties. Now, those of
(03:35):
you listening right now that do not own a house,
those of you listening that have a son or daughter,
a grandson or a granddaughter who does not own a home,
it's time to buy something. And the key word is
time to buy something. You have no advantage of continuing
(03:57):
to rent. If you're waiting for the interest rates to drop,
you're playing a losing game. Now if you buy something
sooner than later and the interest rates really do drop,
then of course you can refinance that property to that
lower interest rate, but you don't want to stick around
waiting for something that may or may not happen. So
(04:20):
I'm going to suggest to everybody listening it's time to
buy something. And there's no excuse. I'm going to take
away every excuse today of why you can't buy something,
So specifically those of you that would like to buy
a home and you look at what you think to
(04:41):
be the cash needed or the monthly payments, and you say,
I can't afford it. I don't believe that. And when
I say that, let me go through some things with
you here. When it comes to looking at the cash
required to buy, there is no cash acquired to buy.
(05:01):
Remember I'm saying to you, buy something, buy anything. And
there's four different ways that you can buy a property
for zero down payment, and these four are the following.
VA financing. If you are a veteran, have been a
veteran or in the National Guard or Reserves, you have
(05:26):
the ability to buy with VA financing, which has the
most liberal loan to value ratio qualifying for income and
also the same thing with credit scores. Use your VA
if you're listening to this and your VA eligible and
you don't buy something shame on you. It really means
(05:47):
you don't understand money. You see, any time you can
control an appreciating asset for no cash, no down payment,
and you're buying an asset where every month some of
the money goes towards the principal reduction and you're also
getting appreciation. Again, you don't understand money if you're not
(06:11):
using your VA to buy something. Now, if you say, well,
I'm not sure how long I'm going to live in
the Charleston area. I may be transferred, i may be
taking a job out of the area, I say to you,
that's all the more reason right now that you should
be buying something why you're still here, And I want
you to understand the logic. You see, I'm going to
(06:35):
get to today before the day's over, talking to you
about why you want to build your future retirement around
owning income producing real estate. But you see, if you
were going to go out today to buy a rental property,
the minimum cash you'd have to put out of your
pocket down payment is fifteen percent. Now that being said,
(07:00):
if you're an owner occupant buying the very same property
that would require fifteen percent. As an investor, you could
probably buy that same property for zero down payment. Now
you might say, well, yeah, but my monthly payment's going
to be higher. Well, of course it will. But here's
the surprising part. For every one thousand dollars that you
(07:25):
were to save up or put as an additional down payment,
do you realize that you're only saving between six and
eight dollars per month and monthly payments. So I suggest
to you you don't want to wait and save up
more down payment because it'll cost you more in the
long run because the property's increasing more in value by
(07:48):
your waiting. So you want to be out there in
the marketplace to buy something if you have the ability
to buy for zero down payment. And you might say, well, yeah,
I'm happy living where i'm at with my parents, or
I've got a roommate and I'm happy where i'm at,
Well good. I want you to get unhappy with where
(08:10):
you're at. I want you to look at buying a
property even if you know you're not going to be
in the area from a standpoint that you're going to
convert it to an income producing rental property and you're
going to hold that property for the rest of your
life until you decide to retire. So if you're twenty
(08:31):
eight years old and you're listening to this and you're
able to use your VA or buy nobody down from
some other things I'm going to tell you, then you
go out and you buy, and you live in that
property for a very short while. To justify the fact
that you are truly an owner occupant, you did move in,
(08:51):
and then after living there a short while, you move
out of that respective property, assuming you don't want to
stay there for the long term, and you rent that property.
And when I say you rent the property, you don't
have to do it yourself. My wife, Charlene, handles management
of properties where we rent properties on behalf of other people.
(09:16):
So you're going to buy a property with the understanding
that you may not live in it very long. You're
going to convert it to a rental or income producing property.
And before we even go out and start looking at
properties for you to buy, we're going to work backwards.
We're going to look at what the property would rent
(09:38):
for if you today had that property rented, and we're
going to compare what the rental income would be to
what your total monthly payment would be to make sure
that whatever you're buying is a good deal for you
to convert to a rental property. And please understand that
(09:58):
rents have comparable just like for sale property, so we
can pretty well pinpoint what that property we'll rent for.
So those of you listening, regardless of whether you're VA
eligible or not, if you like the idea of what
I'm talking about, you want to make sure you book
a consultation with me personally. Write down my phone number
(10:23):
please eight four three three two seven three zero one seven.
And you also want to email me to set up
a special time that we can talk by phone or
meet in person. My email address is our Willis Team.
(10:43):
That's the letter R WI L LIS team at gmail
dot com. And Folks, for whatever reason, I have another
email address that's not functioning properly. I have an email
address that I viewed for decades by the name of
Rick at Rickwillis dot com and that has a hitch
(11:05):
and to get along and I'm not getting my emails there,
so do not use that. Please text me or email
me at the address I just gave you, and we'll
talk with you about your personal situation. And Folks, those
of you listening that are parents or grandparents that have
a younger person that you think should be investing in
(11:28):
real estate, why don't you help them out if you
need to, Because there's no better time to buy than
right now. You See, if you look back in history
and you said, what is the ideal time to buy,
the answer is always yesterday. Because real estate has and
is and will continue in this area to continue to
(11:51):
grow up and go up in value as it has
in the last fifty years. There's no reason to believe
that won't happen. You're living in an area of Charleston,
South Carolina where people are continually moving to and you
want to make sure you own some of what is
(12:12):
appreciating in value as well as the place that you
can live in. Folks, you're listening to the Rick Willis
Real Estate Show and we'll be right back.
Speaker 3 (12:23):
Hello. This is Rick Willis. I assume you've been listening
to the Rick Willis Real Estate Show. If so, are
you considering buying, selling, or investing in real estate? If so,
you want to make sure you request a copy and
read my special reports designed especially for those people looking
(12:44):
to buy or sell or invest in real estate. Special
Report number one is about buying real estate and you'll
discover how to get your best buy and avoid the
ten biggest mistakes home buyers make. Special port number two
is for those people thinking of selling their property. You'll
(13:05):
discover how to get your home sold quickly and net
the most money. And if you're thinking of investing in
real estate, you'll discover why you want to own income
producing property and what to buy for the safest place
to put your money. You'll also discover how to use
your retirement account for oh one k and ira without
(13:29):
having to pay a penalty to buy and own income
producing property. Please note I'm saying income producing property, I'm
not simply saying investment property. To get a free copy
of any of the special reports I just mentioned about buying, selling,
or investing in real estate, please text me at eight
(13:50):
four three three two seven three oh one.
Speaker 2 (13:54):
Or email me at our Willis team at gmail dot com.
That's our Wi l LIS team team at gmail dot com.
Speaker 3 (14:07):
Text eight four three three two seven three zero one seven.
When you text or email me, please make sure you
request a very specific special report on buying, selling, or investing,
and I will turn around and email you the special report.
Thank you.
Speaker 2 (14:33):
Welcome back, Welcome back to Charleston. Welcome back to the
second segment of today's Rick Willis Real Estate Show. Well, folks,
we've been on the air for over twenty years here
in Charleston talking about real estate. Now, those of you
that might be catching this show for the first time,
I am a practicing, active real estate broker here in
(14:57):
the Greater Charleston area. Relocated here from the state of
Maryland in nineteen ninety eight, and I had been selling
real estate in the Maryland area prior to relocating here.
So I have a total of over fifty years of
helping people buy and sell property. Now, there's a time
(15:19):
and a place where you want a youngster to do
business with, and there's a time and a place when
you want what is called some wisdom and experience. When
I go to a doctor or a dentist, I'm looking
for a guy with gray hair or a woman with
gray hair. I want somebody who's been around the block.
I want somebody who's been there and done it. And
(15:40):
I interview people. And it wasn't too long ago I
had the opportunity of going to a dentist and my
regular dentist was not there. And when I showed up
at my dental appointment. I asked the person who was
there what their level of experience was, and I declined
(16:02):
their service and said I will wait and will reschedule
the appointment. You see, there's so many little intricacies about
buying and selling real estate that you only learn by doing.
This is not a business where you can learn real
estate by getting a real estate license. This is a
business that you have to be involved with hundreds of
(16:24):
times and experience all the different things. Any property that
you ever buy, you want to make sure you have
your own buyer's agent to represent you. You see, by
having a buyer's agent represent you, at least with me,
there is no cost. Now, there's many a realtor who
will tell you they can't promise no fees for their service.
(16:47):
I can promise you no fee for my service that
any property that you want to buy, either I'm going
to work for you for free if the seller is
not paying a buyer agent commission, or I'm going to
get some form of commission from the seller of the property.
And there's a change that occurred last year whereby the
(17:12):
law says that no longer does a seller of a
property have to offer a separate commission to the buyer's agent. Well,
there are some sellers that will not do that. I
was involved in a transaction just a couple of weeks
ago where the seller was not offering any compensation to
the buyer's agent, and they said, if you want to
(17:35):
get paid, it's got to be the buyer that offers
to pay you. Well, I still went forward with that
transaction and happily represented the buyer and did not get
paid anything in that transaction. But my promise to you
is that you do want an experienced agent representing you
when you're buying. And when I say that, even if
(17:57):
you're buying new construction, I have found that, yes, you
can negotiate with a builder. Even though they say you
can't negotiate with them, Well, what they really mean is
you can't negotiate with them. But someone like myself who
knows how to play the game, knows how to negotiate
(18:18):
both in price points, closing costs, interest rate, buy downs
or upgrades and updates that are less than what they
want retail price. So you always want a buyer's agent,
even if you say, well, gee, what do I need
them for? I'm going into a model home and I'm
going to deal with the on site agent again. It
(18:42):
doesn't cost you anything and there might even be a
rebate back to you by using a buyer's agent like myself.
So please reach out to me now. Before we took
the last break, we were talking about buy something. If
you're listening, I don't care who you are, it's listening.
If you have the ability to buy something, you should
(19:03):
be out buying something. And if it's not a property
that you're going to live in, then you want to
buy something that you can buy and live in for
just a short time and turn around and rent that
property and then you're going to keep it for thirty
years and you're never going to resell it. But when
you get to be age sixty five or whatever, the
(19:24):
magic age is for you that particular property, where today
it might rent for two thousand dollars a month, by
the time you're age thirty, that property is going to
be running for four thousand a month and it'll be
paid for And you didn't pay for it. The tenant
paid for it. I've been going through with you.
Speaker 3 (19:45):
Hello, this is Rick Willis. I assume you've been listening
to the Rick Willis Real Estate show If so, are
you considering buying, selling, or investing in real estate? If so,
you want to make sure you request a copy and
read my special reports designed especially for those people looking
(20:07):
to buy, or sell or invest in real estate. Special
Report number one is about buying real estate, and you'll
discover how to get your best buy and avoid the
ten biggest mistakes home buyers make. Special Report number two
is for those people thinking of selling their property. You'll
(20:28):
discover how to get your home sold quickly and net
the most money. And if you're thinking of investing in
real estate, you'll discover why you want to own income
producing property and what to buy for the safest place
to put your money. You'll also discover how to use
your retirement account for a one k and ira without
(20:52):
having to pay a penalty to buy and own income
producing property. Please note I'm saying income producing property, not
simply saying investment property. To get a free copy of
any of the special reports I just mentioned about buying, selling,
or investing in real estate, please text me at eight
(21:12):
four three three two seven three oh one.
Speaker 2 (21:16):
Sell or email me at R Willis Team at gmail
dot com. That's our w I L L I S
Team T E. A. M at gmail dot com.
Speaker 3 (21:30):
Text eight four three three two seven three zero one seven.
When you text or email me, please make sure you
request a very specific special report on buying, selling or investing,
and I will turn around and email you the special report.
Thank you.
Speaker 2 (22:00):
I've been going through with you several different ways that
it's possible to buy with little or no cash, and
will continue to do so. But again, I want to repeat,
if you can buy a property for no cash, occupy
that property as an owner occupant for a very short
time with the understanding that you're buying it only for
(22:22):
the purpose of moving out of it to rent it,
that is a great thing. Because if you are going
to buy the same property as an investor, you'd have
to have a minimum of fifteen percent of the purchase
price cash out of pocket. But I know you can
come up with zero. And we talked about VA as
a way of doing it, and we're going to talk
(22:44):
to you about some other ways you can buy without
being a veteran. There's a kind of financing known as
USDA that stands for United States Department of Agriculture, and
they fund zero zero down payment purchases in the rural
and semi rural areas of the Greater Charleston area. Now,
(23:10):
when I say semi rural, according to the USDA, if
you're at Carnes Crossroads or farther out including Kine Bay,
you are in the USDA approved area. If you are
in the northern section of Somerville or farther out, you're
(23:31):
approved for USDA financing. If you are in the Alwendaw area,
you are approved for USDA financing. And if you're down
around Ravenel and Hollywood, you're approved for USDA financing. Zero
down payment. Buy something, doesn't matter what, buy something, zero
(23:53):
down payment, and you're going to work backwards because before
we go out and even look for a property, we're
going to work backwards and find out what that property
would rent for. And then before you even look at
a house, we can figure out what the monthly payment
would be if you were buying that particular property. So
(24:14):
USDA zero down payment, and the seller can even make
your closing cost payments for both VA and USDA. Now,
there's another way that you can buy zero down payment,
and it's in the form of a grant. The State
of South Carolina periodically comes out with money for people
(24:38):
of modest income, which they use up to in the
eighty thousand dollars range, where they'll provide you a grant
for the down payment, nothing required. And there's even another
special program where based on the zip code that you buy,
you can buy for zero down payment. Let me give
you an example. I know of a property right now
(25:03):
that is in a gated community, very very nice gated community,
and you can buy the property zero down payment. Seller
could pay all of your closing costs and your monthly
payments would be less than two thousand dollars per month.
Now that's the property that in the past could rent
(25:25):
for eighteen hundred a month. If you're listening to this
and you are a veteran or not a veteran, doesn't matter,
because it's in the right zip code and it's a
quality neighborhood with a swimming pool, tennis courts, walking paths,
and a security guard gate. It's a very good opportunity.
(25:47):
So whether you're thinking of just playing living there for
the long term or converting it to a rental, please
reach out to me directly for this special opportunity. And folks,
I'm going to give you my phone number here because
this is one. You want to call me on and
you don't even wait for my email. You call me
(26:08):
at eight four three three two seven three zero one
seven so that we can make sure we put you
first in line to get this respective property. Folks, we've
been talking about buying real estate even if you're not
intending on remaining and living in it, to convert to
a rental property after a short time of living there,
(26:32):
and you want to make sure that you email me
if you want to meet or text me or call me.
Email is our Willis team at gmail dot com. My
phone number again eight four three three two seven three
zero one seven. Let's have a communication. Don't procrastinate this.
(26:57):
Reach out to me so we can talk. Thank you.
Speaker 3 (27:00):
Hello, this is Rick Willis. I assume you've been listening
to the Rick Willis Real Estate Show. If so, are
you considering buying, selling, or investing in real estate? If so,
you want to make sure you request a copy and
read my special reports designed especially for those people looking
(27:21):
to buy or sell or invest in real estate. Special
Report number one is about buying real estate and you'll
discover how to get your best buy and avoid the
ten biggest mistakes home buyers make special Report Number two
is for those people thinking of selling their property. You'll
(27:42):
discover how to get your home sold quickly and net
the most money. And if you're thinking of investing in
real estate, you'll discover why you want to own income
producing property and what to buy for the safest place
to put your money. You'll also discover how to use
your retirement account for oh one k and ira without
(28:06):
having to pay a penalty to buy and own income
producing property. Please note I'm saying income producing property, I'm
not simply saying investment property. To get a free copy
of any of the special reports I just mentioned about buying, selling,
or investing in real estate, please text me at eight
(28:26):
four three three two seven three oh one sell.
Speaker 2 (28:30):
Or email me at R. Willis Team at gmail dot com.
That's our w I L L I S Team, T
E A M at gmail dot com.
Speaker 3 (28:44):
Text eight four three three two seven three zero one seven.
When you text or email me, please make sure you
request a very specific special report on buying, selling or investing,
and I will turn around and email you the special report.
Thank you. Welcome back to Charleston.
Speaker 2 (29:14):
Welcome back to the third segment of today's Rick Willis
real estate show. Well, folks, we opened the show talking
about it's time to buy something, anything, And I want
to make sure you understand my logic. It's fine if
you want to buy a home and you want to
live in it for the long term. But if you
(29:36):
can't buy what you want because either you don't have
the down payment, or you don't have the income to qualify,
or you're just plain not wel willing to pay the
monthly payment at the today's interest rate for what you want,
then buy something else. Buy something you don't want to
(29:56):
live in for very long, by some thing that would
be a great income producing rental property instead. You see,
you have the ability most of you listening to buy something.
You just need to understand the economic benefit to you
of not waiting and buying right now. If you buy something,
(30:18):
and we talked about several ways, you can do so
with no down payment, and we look and see what
the monthly payments would be, and we look and see
what the monthly rental income would be, you're going to
be buying that property, living in it for a short while,
moving out of it, and if you want to rent it,
(30:39):
that's fine. Or my wife and I are involved in
property management, we can find the tenant and rent it
and manage it for you. But you're going to be
building up your net worth and you're going to be
creating your own retirement for yourself. As I mentioned in
the previous segment, if you bought a property today that
(30:59):
you did not want to live in for the long term,
but could rent out today for two thousand dollars per month,
you buy that property, live in it for a short
while with the understanding that you're going to move out
of it, and perhaps then buy what you really want.
But meanwhile, you've got the property rented for two thousand
(31:22):
a month. You're getting income tax benefits because you can
now depreciate that property and write some money off your
income tax return. You're getting principal built up, and the property,
we assume is going to be appreciating. You're buying it
with the understanding that in the next thirty years you're
going to still own it. And what is two thousand
(31:45):
dollars a month income right now is going to be
four thousand dollars a month income at the point where
you decide to retire. And please understand that your entire
mortgage payment, the whole property is going to be paid
for by your tenant. Now, when you buy real estate,
if you're a ten ninety nine employee not W two,
(32:09):
you can actually write off your tax return the interest
and the taxes you pay on that property. And as
you know, also a portion of every monthly payment reduces
your principal amount. So what appears on first glance to
be a high monthly payment, you need to subtract off
(32:29):
of that, what is the amount of money that's going
to principle And you need to look at that like
it's putting money in a savings account. No, you can't
spend it, but it's there. It's your money. Now, in
addition to that, if what's needed is for you to
tap into your retirement account, my challenge to you is
(32:52):
your better if you need to to use some of
your tax money, your tax deferred four oh one k
I money, you're better off to use that to buy
some real estate then you would be keeping it in
the stock market. You see, mutual funds are fine when
they continue to go up. But all the experts are saying,
(33:14):
and I agree, there's going to be what is called
a market correction, and real estate has an inverse relationship
to the stock market, meaning when the stock market declines,
real estate does not. During good and bad economic times,
what you'll discover is if you've got income coming in
(33:35):
through your property, it's the asset that you want to own.
And again, for those of you listening that are parents
or grandparents, why don't you get together with your son, grandson,
granddaughter or daughter and son and let's all have a
phone call, let's all have a meeting, and let's talk
about how you can work together if you need to.
(33:58):
So you want to make sure that you buy something,
do not wait now. If you're not eligible for VA
financing no money down or USDA money financing no money down,
or you're not eligible for the grant because you make
too much money, or you don't want to buy in
a certain zip code, then you can still buy with
(34:21):
only three percent down payment. Yes, you have mortgage insurance,
but you know what, mortgage insurance can go away after
you get a twenty percent equity position. In a couple
of years, you can find a new appraisal of your
property and send it into the mortgage company and they'll
(34:44):
eliminate the private mortgage insurance that you had to have
because you didn't have twenty percent down payment. God bless
Dave Ramsey who tells people you want to make sure
you buy with twenty percent down payment. Well, you know what,
Dave Ramsey is great at teaching people how to get
(35:05):
out of consumer debt, but he's not acclaim to fame
on teaching you how to make money, which is what
I'm trying to tell you. How to do you want
to have real estate be the number one foundation of
building your assets? How many of you have heard of
the name Warren Buffett. Warren Buffett has a net worth
(35:27):
of over one hundred billion dollars. He is the chief
operating officer of a company called Berkshire Hathaway. I recently
read an article by him where he says most people
don't know the distinction between an investment and a speculation.
(35:47):
You see. He goes on to say that the real
losers in the financial world are people that save money.
Why on earth do you want to save money when
if it's in an interest bearing account, you pay taxes
on the interest combined with inflation, you're making no money
at all. Then the other side of the coin is
(36:10):
people that talk about investing. He says they're not really
investing at all. They're speculating. Now here's the distinction between
a speculation and an investment. A speculation is something that
you buy, that you hold on to, and that at
a certain point in the future it has to go
(36:32):
up in value and you have to resell it in
order to make a profit. So speculating is buying an
asset that you have to hold until it goes up
in value and then resell it to make your profit.
And Warren Buffett goes on to say that a true
investment is an asset that creates its own income, and
(36:55):
real estate would fit that category. Warren Buffett buys other companies,
so what he buys and a company, he's getting an
income stream through the profit of the company that he buys.
He's not a real estate guy, but he talks about
real estate from the point of view that it is
(37:15):
a true investment. You see, folks, you want to get
your money out of four oh one ks and iras
that are in mutual funds, and you want to make
sure you start building your net worth and your future
retirement income around income producing real estate. You want to
be investing instead of speculating. And by the way, most
(37:40):
of you aren't aware of this, But did you know
that your four oh one K and your IRA can
actually own individual investment property. That's right now. If you
go to your current employer and you ask them, can
I convert these assets into real estate, they'll either tell
(38:02):
you that you have to pay a penalty to withdraw them,
or they'll just plane till you know. What they won't
tell you is what I'm going to tell you. You see,
there's whoever is the custodian of your retirement account, and
it's the custodian that's not permitting you to buy individual
real estate with your retirement account. But what they're not
(38:25):
telling you is that you can change custodians. You can
create what is called a self directed retirement account, whereby
when you have money that you want to put into
your retirement account, you can set up a local LLC,
a company locally in a local bank, and that money
(38:49):
that you deposit into your own LLC. You can choose
to buy any qualified asset, and you can still buy
mutual funds if you want to. You could buy art,
you could buy vintage automobiles, you could buy bitcoin, you
can buy real estate. You get to choose what you buy,
(39:12):
and there's people out there right now that have money
in retirement accounts that even should by choice accept a
penalty and get out of the mutual fund world and
reconvert those funds into income producing real estate, because what
you'll discover is, even after paying a penalty to withdraw it,
(39:34):
that those funds are going to make you far more money.
You can't be looking in the past. You can't look
at what you're going to lose. You need to look
at what you're going to gain with certainty. You see
there's going to be a market correction, and whatever the
penalty you need to pay to withdraw those funds or
convert them to a self directed account, you want to
(39:55):
make sure you do whatever you need to do planning
for the future, because you're going to use that same
ten percent when the market corrects. And if you talk
to any financial expert about the stock market, it's not
a question of if there's a correction, it's only a
question of when it's going to occur. And if you
have a choice of using your funds while the market
(40:18):
is up or wishing you had after it declines, where
do you want to use your funds now? Some of
you have a previous employer where you have funds and
there's no penalty whatsoever, But you want to make sure
you take action and have a conversation with me about
(40:40):
how the best way to utilize your funds that you
have in your retirement account. And for those of you
that are planning to buy a home to live in,
it's possible for you to actually borrow against those funds
and not have any penalty whatsoever. And then of course
you repay back those money. But again you're doing so
(41:03):
by having an asset that is appreciating and it may
be giving you cash flow and income along the way. Now,
a quick story for you. In nineteen excuse me. In
twenty nineteen, I helped a young man named Tevis by
his first property. I met Tevis while I was visiting
(41:28):
a retail store in Mount Pleasant. Tevis was an employee there.
I asked him if he owned a home. He said no.
I said, are you married or single? He replied and
said I'm single. I said, well, if you could own
a home and have a little or no monthly payment,
(41:50):
would you want to own one? His answer was of
course I would. And long and the short of it is,
I helped Tevis. Now six years later, Tevas has two
hundred thousand dollars in equity in real estate as a
result of listening to my advice in twenty nineteen. And
(42:12):
when I come back from the break, I'm going to
give you more details on what we did to cause Tevas,
a single gentleman in his upper twenties, to now have
a two hundred thousand dollars equity position in real estate. Folks,
please reach out to me you want to have a
private conversation with me, and I can be reached at
(42:34):
eight four three three two seven three zero one seven.
Email me our Willis team at gmail dot com. Now, Folks,
when I come back from the break, I'm going to
talk to you about a home buyer seminar that I'm
going to be conducting, and I'm going to ask for
(42:55):
your opinion of whether you would like it to be
by way of Zoom or in person, or if I
do it in person, would you also like to have
Zoom access to it. So pay attention when we come
back from the break, you want to know about the
home buyer similar that I'm about to do. Folks, will
be right back after this break, right Charlie, Hello, this
(43:22):
is Rick Willis. I assume you've been listening to the
Rick Willis Real Estate Show. If so, are you considering buying, selling,
or investing in real estate? If so, you want to
make sure you request a copy and read my special
reports designed especially for those people looking to buy or
(43:42):
sell or invest in real estate. Special Report number one
is about buying real estate, and you'll discover how to
get your best buy and avoid the ten biggest mistakes
home buyers make. Special Report number two is for those
people thinking of selling their property. You'll discover how to
(44:04):
get your home sold quickly and net the most money.
And if you're thinking of investing in real estate, you'll
discover why you want to own income producing property and
what to buy for the safest place to put your money.
You'll also discover how to use your retirement account for
(44:24):
oh one k and ira without having to pay a
penalty to buy and own income producing property. Please note
I'm saying income producing property, I'm not simply saying investment property.
To get a free copy of any of the special
reports I just mentioned about buying, selling, or investing in
(44:44):
real estate, please text me at eight four three three
two seven three oh one or email me at our
Willis team at gmail dot com. That's our wil l
so I team team at gmail dot com.
Speaker 3 (45:05):
Text eight four three three two seven three zero one seven.
When you text or email me, please make sure you
request a very specific special report on buying, selling or investing,
and I will turn around and email you the special report.
Thank you.
Speaker 2 (45:36):
Welcome back, Welcome back to Charleston. Welcome back to the
final segment of today's Rick Willis Real Estate Show. Well, folks,
we've been talking about buying something anything. You want to
make sure you understand that the opportunity that's available to
you when you buy something, even if you don't want
(45:57):
to live in it for the long term. To stop renting.
And for those of you that are in houses that
are waiting for the interest rates to drop, go out
and buy yourself an investment property. Do something to keep
the equity snowball moving. And when I say equity snowball,
(46:19):
you see, when you buy your first property, you build
equity two ways. You have a monthly payment that pays
down your principal amount, and you have appreciation. Warren Buffett
had a partner named Charlie Munger, and I read an
article yesterday by his partner who died last year, and
(46:40):
Charlie Munger said he was asked the question of what's
the secret of becoming rich, and his net worth was
several billion dollars when he died. He said, the secret
to becoming rich is to get your first one hundred thousand.
And after you get your first hundred thousand, you can
(47:02):
kind of relax a little bit and just kind of
go with the flow. There's a momentum to going forward
once you get your first hundred thousand. Now, those of
you listening that do not own a home, I'm showing
you how today to get that first hundred thousand. You
start by buying something, even if it's not anything that
(47:24):
you want to live in. That's what you buy, and
you buy something with the understanding that you're only going
to live in it a very short time until such
time as you run it out. And when we go
look for a property, we work backwards from what will
it rent for to make sure the cash flow works
for you. So you're going to go out and buy
(47:46):
that property that you don't want to live in for
the long term with the understanding that it's going to
be a property that you use to get your first
hundred thousand dollars of equity working for you. You buy
that property today to live in, and you live in
it for one year, and it rents for two thousand
(48:06):
dollars a month. After you move out and buy what
you really want, then that particular property you hold it
for thirty years. You don't do what most people do
with rental property, which is to buy it, wait for
it to go up in value and resell it. You
keep it, and at some point in time you're going
to refinance that property and pull equity out of it
(48:29):
and buy more property. But you don't buy property with
the understanding that you're going to resell it. If you're
going to be buying property, buy it with the understanding
that you're going to keep it for the long term.
The tenant will eventually end up paying for your property.
And that same property that today you buy that you
(48:50):
didn't want to live in, you do so for a
short time, and we convert it to a rental. You
get two thousand dollars a month now, and then in
thirty years, when you retire or whatever number of years,
that property is paid for. But you didn't pay for it.
(49:10):
The tenant did and the property that you bought originally
for two hundred and fifty thousand dollars perhaps has doubled
in value or irrespective of its value, the two thousand
dollars a month rent is now four thousand dollars a
month rent, and you don't owe anything on the property.
(49:31):
How many of those properties would you like to have?
So I was telling you prior to the break, I
was telling you that there's a gentleman named Tevas who
in twenty nineteen bought a property that I represented him
as an owner occupant, single gentleman in his upper twenties.
(49:53):
I said to Tevas, would you be willing to buy
a property where you had a neighbor real close to you?
Of course, so we went out and we found him
a duplex to buy a two unit property. Tevas bought.
The property was seven thousand dollars total cash. He bought
a property in Somerville. He moved into one side of
(50:17):
the duplex and the other side was already rented. Now
Tevas kept that property and lived there for five years.
And then he still kept the property, moved out of
the property and got married, and he and his wife
(50:38):
bought a single family home. Now together the duplex and
the single family home that he now owns, he has
over two hundred thousand dollars in equity in those respective properties.
But what I want you to see is it started
with him investing only seven thousand dollars. We got the
(51:00):
dollar to pay the closing costs, and he now has
an income producing duplex that's giving him quite a few
hundreds of dollars a month in positive cash flow. And
he also has a single family detached residents that he bought,
and before you know it, he'll be converting that second
(51:21):
property that he bought as an owner occupant financing, he'll
be converting that property to a rental and buying another one.
And at this moment, he owns over six hundred thousand
dollars of appreciating assets starting to buy a property when
he didn't even think he was in the market to
(51:43):
buy a property. That's the magic of what Rick Willis
and yourself can do together if we communicate those of
you listening that are parents and grandparents, you want to
help your kids and your grandkids get started in owning
real estate. And for those of you listening that are
parents and grandparents that like the idea of building your
(52:05):
own retirement around income producing property. We should have a private,
separate conversation because you see it may or may not
be a single family home. It might be a duplex,
it might be a three unit property, or as I've
seen recently, it might be a four unit or an
(52:25):
eight unit property. I recently help someone buy a mobile
home park. Those of you listening that have some money
in your retirement accounts, or you have money in stocks,
find a way to convert your paper assets to hard assets,
tangible assets, of which real estate is the absolute best. Now,
(52:50):
I'm going to be doing a home buyer seminar coming
up next month, and I want you to get to
me your phone number and your email address so I
can send you a very specific invitation. I'm just firming
up the date and the location, so I don't have
that to tell you over the phone today or over
(53:13):
the radio today. Get to me please if you have
any interest in a home buyer seminar, which may be
by way of zoom, maybe in person, or maybe both,
or I'll go into a lot more detail on specifics
about buying. How you can buy a fixer upper without
(53:33):
any money out of your pocket. How you can buy
a home with a ten ninety nine without anybody verifying
your income or looking at a tax return. There's going
to be a number of things, quite a number of things,
twenty eight different items that I'll be discussing at that
seminar that I did not discuss here today. You want
(53:53):
to attend that seminar, either in person or by way
of zoom, Folks, please email me and say get me
information on your upcoming seminar. Email me at R. Willis Team,
the letter R Willis w I L l I S
Team t e A M. R. Willis Team at gmail
(54:16):
dot com, or call me directly or text me with
your email address eight four three three two seven three
zero one seven. Folks, I hope you enjoyed the show,
have a great weekend, and I look forward to hearing
from you,
The following is a pain commercial program on ninety four
to three WSC. The views expressed by the host of
this program do not necessarily reflect the views of iHeartMedia
ninety four to three WSC. It's advertiser, sponsors or management.
This is The Real Estate Show with Rick Willis, a
show about home sales, mortgage issues, investing in everything about
the American dream and that means a lot as someone
(00:22):
who enjoys radio and really enjoys your program and now
The Real Estate Show with Rick Willis on ninety four
to three in WSC.
Speaker 2 (00:31):
Hello Charleston, Welcome, Welcome to the Rick Willis Real Estate Show.
For those of you that have been my avid listeners
for over the years and are addicted to the show,
I welcome you back. Perhaps you're welcoming me back. I've
been on a several weeks sabbatical, but we're back in
(00:53):
the year now and talking real estate. I have been
very ill for quite a while well and just feel
ready now to get back talking about real estate. I
know a lot of you have had the flu or
other issues. I haven't had the flu, but boy have
(01:14):
I had a heck of a time with a congestion
in my chest and other things going on. That being said,
we're going to talk about real estate today. We're going
to talk about buying a home to live in. We're
going to talk about using real estate as the number
one source of your retirement income for the future. So
(01:39):
welcome aboard. And you're either hearing this show on Saturday
from noon to one or you're hearing it on Sunday
morning from nine to ten AM. And I promise you
there's going to be some things that you hear on
Saturday that you're going to want to tell other people
about so they can tune in on Sunday morning from
(02:02):
nine to ten. That being said, let's get with it.
As of this morning, and it's Thursday morning that we're
recording this show, there's four thousand, one hundred and nineteen
active residential listings for sale. Now that number has increased
over the last number of months, because it is, of course,
(02:25):
for all practical purposes, looking at spring hard to believe,
isn't it that next month, officially spring is here and
next month we go back on to daylight saving time.
I was shocked and surprised when my wife told me
that it's only a couple of weeks away before we
go back to daylight saving time. And by the way,
(02:49):
my personal preferences that we have daylight saving time twenty
four to seven three sixty five, so I hope they
can make that happen. Now, the number of listings are increasing,
and that's good news. If you're a buyer, it's presenting
you with more options and more choices. If you're a
(03:10):
seller in the marketplace, the number of listings is going
to continue, I believe to increase. So you want to
get your property on the market as soon as possible,
all things being equal. If you're a seller, you want
your home on the market for sale competing with fewer
properties rather than competing with more properties. Now, those of
(03:35):
you listening right now that do not own a house,
those of you listening that have a son or daughter,
a grandson or a granddaughter who does not own a home,
it's time to buy something. And the key word is
time to buy something. You have no advantage of continuing
(03:57):
to rent. If you're waiting for the interest rates to drop,
you're playing a losing game. Now if you buy something
sooner than later and the interest rates really do drop,
then of course you can refinance that property to that
lower interest rate, but you don't want to stick around
waiting for something that may or may not happen. So
(04:20):
I'm going to suggest to everybody listening it's time to
buy something. And there's no excuse. I'm going to take
away every excuse today of why you can't buy something,
So specifically those of you that would like to buy
a home and you look at what you think to
(04:41):
be the cash needed or the monthly payments, and you say,
I can't afford it. I don't believe that. And when
I say that, let me go through some things with
you here. When it comes to looking at the cash
required to buy, there is no cash acquired to buy.
(05:01):
Remember I'm saying to you, buy something, buy anything. And
there's four different ways that you can buy a property
for zero down payment, and these four are the following.
VA financing. If you are a veteran, have been a
veteran or in the National Guard or Reserves, you have
(05:26):
the ability to buy with VA financing, which has the
most liberal loan to value ratio qualifying for income and
also the same thing with credit scores. Use your VA
if you're listening to this and your VA eligible and
you don't buy something shame on you. It really means
(05:47):
you don't understand money. You see, any time you can
control an appreciating asset for no cash, no down payment,
and you're buying an asset where every month some of
the money goes towards the principal reduction and you're also
getting appreciation. Again, you don't understand money if you're not
(06:11):
using your VA to buy something. Now, if you say, well,
I'm not sure how long I'm going to live in
the Charleston area. I may be transferred, i may be
taking a job out of the area, I say to you,
that's all the more reason right now that you should
be buying something why you're still here, And I want
you to understand the logic. You see, I'm going to
(06:35):
get to today before the day's over, talking to you
about why you want to build your future retirement around
owning income producing real estate. But you see, if you
were going to go out today to buy a rental property,
the minimum cash you'd have to put out of your
pocket down payment is fifteen percent. Now that being said,
(07:00):
if you're an owner occupant buying the very same property
that would require fifteen percent. As an investor, you could
probably buy that same property for zero down payment. Now
you might say, well, yeah, but my monthly payment's going
to be higher. Well, of course it will. But here's
the surprising part. For every one thousand dollars that you
(07:25):
were to save up or put as an additional down payment,
do you realize that you're only saving between six and
eight dollars per month and monthly payments. So I suggest
to you you don't want to wait and save up
more down payment because it'll cost you more in the
long run because the property's increasing more in value by
(07:48):
your waiting. So you want to be out there in
the marketplace to buy something if you have the ability
to buy for zero down payment. And you might say, well, yeah,
I'm happy living where i'm at with my parents, or
I've got a roommate and I'm happy where i'm at,
Well good. I want you to get unhappy with where
(08:10):
you're at. I want you to look at buying a
property even if you know you're not going to be
in the area from a standpoint that you're going to
convert it to an income producing rental property and you're
going to hold that property for the rest of your
life until you decide to retire. So if you're twenty
(08:31):
eight years old and you're listening to this and you're
able to use your VA or buy nobody down from
some other things I'm going to tell you, then you
go out and you buy, and you live in that
property for a very short while. To justify the fact
that you are truly an owner occupant, you did move in,
(08:51):
and then after living there a short while, you move
out of that respective property, assuming you don't want to
stay there for the long term, and you rent that property.
And when I say you rent the property, you don't
have to do it yourself. My wife, Charlene, handles management
of properties where we rent properties on behalf of other people.
(09:16):
So you're going to buy a property with the understanding
that you may not live in it very long. You're
going to convert it to a rental or income producing property.
And before we even go out and start looking at
properties for you to buy, we're going to work backwards.
We're going to look at what the property would rent
(09:38):
for if you today had that property rented, and we're
going to compare what the rental income would be to
what your total monthly payment would be to make sure
that whatever you're buying is a good deal for you
to convert to a rental property. And please understand that
(09:58):
rents have comparable just like for sale property, so we
can pretty well pinpoint what that property we'll rent for.
So those of you listening, regardless of whether you're VA
eligible or not, if you like the idea of what
I'm talking about, you want to make sure you book
a consultation with me personally. Write down my phone number
(10:23):
please eight four three three two seven three zero one seven.
And you also want to email me to set up
a special time that we can talk by phone or
meet in person. My email address is our Willis Team.
(10:43):
That's the letter R WI L LIS team at gmail
dot com. And Folks, for whatever reason, I have another
email address that's not functioning properly. I have an email
address that I viewed for decades by the name of
Rick at Rickwillis dot com and that has a hitch
(11:05):
and to get along and I'm not getting my emails there,
so do not use that. Please text me or email
me at the address I just gave you, and we'll
talk with you about your personal situation. And Folks, those
of you listening that are parents or grandparents that have
a younger person that you think should be investing in
(11:28):
real estate, why don't you help them out if you
need to, Because there's no better time to buy than
right now. You See, if you look back in history
and you said, what is the ideal time to buy,
the answer is always yesterday. Because real estate has and
is and will continue in this area to continue to
(11:51):
grow up and go up in value as it has
in the last fifty years. There's no reason to believe
that won't happen. You're living in an area of Charleston,
South Carolina where people are continually moving to and you
want to make sure you own some of what is
(12:12):
appreciating in value as well as the place that you
can live in. Folks, you're listening to the Rick Willis
Real Estate Show and we'll be right back.
Speaker 3 (12:23):
Hello. This is Rick Willis. I assume you've been listening
to the Rick Willis Real Estate Show. If so, are
you considering buying, selling, or investing in real estate? If so,
you want to make sure you request a copy and
read my special reports designed especially for those people looking
(12:44):
to buy or sell or invest in real estate. Special
Report number one is about buying real estate and you'll
discover how to get your best buy and avoid the
ten biggest mistakes home buyers make. Special port number two
is for those people thinking of selling their property. You'll
(13:05):
discover how to get your home sold quickly and net
the most money. And if you're thinking of investing in
real estate, you'll discover why you want to own income
producing property and what to buy for the safest place
to put your money. You'll also discover how to use
your retirement account for oh one k and ira without
(13:29):
having to pay a penalty to buy and own income
producing property. Please note I'm saying income producing property, I'm
not simply saying investment property. To get a free copy
of any of the special reports I just mentioned about buying, selling,
or investing in real estate, please text me at eight
(13:50):
four three three two seven three oh one.
Speaker 2 (13:54):
Or email me at our Willis team at gmail dot com.
That's our Wi l LIS team team at gmail dot com.
Speaker 3 (14:07):
Text eight four three three two seven three zero one seven.
When you text or email me, please make sure you
request a very specific special report on buying, selling, or investing,
and I will turn around and email you the special report.
Thank you.
Speaker 2 (14:33):
Welcome back, Welcome back to Charleston. Welcome back to the
second segment of today's Rick Willis Real Estate Show. Well, folks,
we've been on the air for over twenty years here
in Charleston talking about real estate. Now, those of you
that might be catching this show for the first time,
I am a practicing, active real estate broker here in
(14:57):
the Greater Charleston area. Relocated here from the state of
Maryland in nineteen ninety eight, and I had been selling
real estate in the Maryland area prior to relocating here.
So I have a total of over fifty years of
helping people buy and sell property. Now, there's a time
(15:19):
and a place where you want a youngster to do
business with, and there's a time and a place when
you want what is called some wisdom and experience. When
I go to a doctor or a dentist, I'm looking
for a guy with gray hair or a woman with
gray hair. I want somebody who's been around the block.
I want somebody who's been there and done it. And
(15:40):
I interview people. And it wasn't too long ago I
had the opportunity of going to a dentist and my
regular dentist was not there. And when I showed up
at my dental appointment. I asked the person who was
there what their level of experience was, and I declined
(16:02):
their service and said I will wait and will reschedule
the appointment. You see, there's so many little intricacies about
buying and selling real estate that you only learn by doing.
This is not a business where you can learn real
estate by getting a real estate license. This is a
business that you have to be involved with hundreds of
(16:24):
times and experience all the different things. Any property that
you ever buy, you want to make sure you have
your own buyer's agent to represent you. You see, by
having a buyer's agent represent you, at least with me,
there is no cost. Now, there's many a realtor who
will tell you they can't promise no fees for their service.
(16:47):
I can promise you no fee for my service that
any property that you want to buy, either I'm going
to work for you for free if the seller is
not paying a buyer agent commission, or I'm going to
get some form of commission from the seller of the property.
And there's a change that occurred last year whereby the
(17:12):
law says that no longer does a seller of a
property have to offer a separate commission to the buyer's agent. Well,
there are some sellers that will not do that. I
was involved in a transaction just a couple of weeks
ago where the seller was not offering any compensation to
the buyer's agent, and they said, if you want to
(17:35):
get paid, it's got to be the buyer that offers
to pay you. Well, I still went forward with that
transaction and happily represented the buyer and did not get
paid anything in that transaction. But my promise to you
is that you do want an experienced agent representing you
when you're buying. And when I say that, even if
(17:57):
you're buying new construction, I have found that, yes, you
can negotiate with a builder. Even though they say you
can't negotiate with them, Well, what they really mean is
you can't negotiate with them. But someone like myself who
knows how to play the game, knows how to negotiate
(18:18):
both in price points, closing costs, interest rate, buy downs
or upgrades and updates that are less than what they
want retail price. So you always want a buyer's agent,
even if you say, well, gee, what do I need
them for? I'm going into a model home and I'm
going to deal with the on site agent again. It
(18:42):
doesn't cost you anything and there might even be a
rebate back to you by using a buyer's agent like myself.
So please reach out to me now. Before we took
the last break, we were talking about buy something. If
you're listening, I don't care who you are, it's listening.
If you have the ability to buy something, you should
(19:03):
be out buying something. And if it's not a property
that you're going to live in, then you want to
buy something that you can buy and live in for
just a short time and turn around and rent that
property and then you're going to keep it for thirty
years and you're never going to resell it. But when
you get to be age sixty five or whatever, the
(19:24):
magic age is for you that particular property, where today
it might rent for two thousand dollars a month, by
the time you're age thirty, that property is going to
be running for four thousand a month and it'll be
paid for And you didn't pay for it. The tenant
paid for it. I've been going through with you.
Speaker 3 (19:45):
Hello, this is Rick Willis. I assume you've been listening
to the Rick Willis Real Estate show If so, are
you considering buying, selling, or investing in real estate? If so,
you want to make sure you request a copy and
read my special reports designed especially for those people looking
(20:07):
to buy, or sell or invest in real estate. Special
Report number one is about buying real estate, and you'll
discover how to get your best buy and avoid the
ten biggest mistakes home buyers make. Special Report number two
is for those people thinking of selling their property. You'll
(20:28):
discover how to get your home sold quickly and net
the most money. And if you're thinking of investing in
real estate, you'll discover why you want to own income
producing property and what to buy for the safest place
to put your money. You'll also discover how to use
your retirement account for a one k and ira without
(20:52):
having to pay a penalty to buy and own income
producing property. Please note I'm saying income producing property, not
simply saying investment property. To get a free copy of
any of the special reports I just mentioned about buying, selling,
or investing in real estate, please text me at eight
(21:12):
four three three two seven three oh one.
Speaker 2 (21:16):
Sell or email me at R Willis Team at gmail
dot com. That's our w I L L I S
Team T E. A. M at gmail dot com.
Speaker 3 (21:30):
Text eight four three three two seven three zero one seven.
When you text or email me, please make sure you
request a very specific special report on buying, selling or investing,
and I will turn around and email you the special report.
Thank you.
Speaker 2 (22:00):
I've been going through with you several different ways that
it's possible to buy with little or no cash, and
will continue to do so. But again, I want to repeat,
if you can buy a property for no cash, occupy
that property as an owner occupant for a very short
time with the understanding that you're buying it only for
(22:22):
the purpose of moving out of it to rent it,
that is a great thing. Because if you are going
to buy the same property as an investor, you'd have
to have a minimum of fifteen percent of the purchase
price cash out of pocket. But I know you can
come up with zero. And we talked about VA as
a way of doing it, and we're going to talk
(22:44):
to you about some other ways you can buy without
being a veteran. There's a kind of financing known as
USDA that stands for United States Department of Agriculture, and
they fund zero zero down payment purchases in the rural
and semi rural areas of the Greater Charleston area. Now,
(23:10):
when I say semi rural, according to the USDA, if
you're at Carnes Crossroads or farther out including Kine Bay,
you are in the USDA approved area. If you are
in the northern section of Somerville or farther out, you're
(23:31):
approved for USDA financing. If you are in the Alwendaw area,
you are approved for USDA financing. And if you're down
around Ravenel and Hollywood, you're approved for USDA financing. Zero
down payment. Buy something, doesn't matter what, buy something, zero
(23:53):
down payment, and you're going to work backwards because before
we go out and even look for a property, we're
going to work backwards and find out what that property
would rent for. And then before you even look at
a house, we can figure out what the monthly payment
would be if you were buying that particular property. So
(24:14):
USDA zero down payment, and the seller can even make
your closing cost payments for both VA and USDA. Now,
there's another way that you can buy zero down payment,
and it's in the form of a grant. The State
of South Carolina periodically comes out with money for people
(24:38):
of modest income, which they use up to in the
eighty thousand dollars range, where they'll provide you a grant
for the down payment, nothing required. And there's even another
special program where based on the zip code that you buy,
you can buy for zero down payment. Let me give
you an example. I know of a property right now
(25:03):
that is in a gated community, very very nice gated community,
and you can buy the property zero down payment. Seller
could pay all of your closing costs and your monthly
payments would be less than two thousand dollars per month.
Now that's the property that in the past could rent
(25:25):
for eighteen hundred a month. If you're listening to this
and you are a veteran or not a veteran, doesn't matter,
because it's in the right zip code and it's a
quality neighborhood with a swimming pool, tennis courts, walking paths,
and a security guard gate. It's a very good opportunity.
(25:47):
So whether you're thinking of just playing living there for
the long term or converting it to a rental, please
reach out to me directly for this special opportunity. And folks,
I'm going to give you my phone number here because
this is one. You want to call me on and
you don't even wait for my email. You call me
(26:08):
at eight four three three two seven three zero one
seven so that we can make sure we put you
first in line to get this respective property. Folks, we've
been talking about buying real estate even if you're not
intending on remaining and living in it, to convert to
a rental property after a short time of living there,
(26:32):
and you want to make sure that you email me
if you want to meet or text me or call me.
Email is our Willis team at gmail dot com. My
phone number again eight four three three two seven three
zero one seven. Let's have a communication. Don't procrastinate this.
(26:57):
Reach out to me so we can talk. Thank you.
Speaker 3 (27:00):
Hello, this is Rick Willis. I assume you've been listening
to the Rick Willis Real Estate Show. If so, are
you considering buying, selling, or investing in real estate? If so,
you want to make sure you request a copy and
read my special reports designed especially for those people looking
(27:21):
to buy or sell or invest in real estate. Special
Report number one is about buying real estate and you'll
discover how to get your best buy and avoid the
ten biggest mistakes home buyers make special Report Number two
is for those people thinking of selling their property. You'll
(27:42):
discover how to get your home sold quickly and net
the most money. And if you're thinking of investing in
real estate, you'll discover why you want to own income
producing property and what to buy for the safest place
to put your money. You'll also discover how to use
your retirement account for oh one k and ira without
(28:06):
having to pay a penalty to buy and own income
producing property. Please note I'm saying income producing property, I'm
not simply saying investment property. To get a free copy
of any of the special reports I just mentioned about buying, selling,
or investing in real estate, please text me at eight
(28:26):
four three three two seven three oh one sell.
Speaker 2 (28:30):
Or email me at R. Willis Team at gmail dot com.
That's our w I L L I S Team, T
E A M at gmail dot com.
Speaker 3 (28:44):
Text eight four three three two seven three zero one seven.
When you text or email me, please make sure you
request a very specific special report on buying, selling or investing,
and I will turn around and email you the special report.
Thank you. Welcome back to Charleston.
Speaker 2 (29:14):
Welcome back to the third segment of today's Rick Willis
real estate show. Well, folks, we opened the show talking
about it's time to buy something, anything, And I want
to make sure you understand my logic. It's fine if
you want to buy a home and you want to
live in it for the long term. But if you
(29:36):
can't buy what you want because either you don't have
the down payment, or you don't have the income to qualify,
or you're just plain not wel willing to pay the
monthly payment at the today's interest rate for what you want,
then buy something else. Buy something you don't want to
(29:56):
live in for very long, by some thing that would
be a great income producing rental property instead. You see,
you have the ability most of you listening to buy something.
You just need to understand the economic benefit to you
of not waiting and buying right now. If you buy something,
(30:18):
and we talked about several ways, you can do so
with no down payment, and we look and see what
the monthly payments would be, and we look and see
what the monthly rental income would be, you're going to
be buying that property, living in it for a short while,
moving out of it, and if you want to rent it,
(30:39):
that's fine. Or my wife and I are involved in
property management, we can find the tenant and rent it
and manage it for you. But you're going to be
building up your net worth and you're going to be
creating your own retirement for yourself. As I mentioned in
the previous segment, if you bought a property today that
(30:59):
you did not want to live in for the long term,
but could rent out today for two thousand dollars per month,
you buy that property, live in it for a short
while with the understanding that you're going to move out
of it, and perhaps then buy what you really want.
But meanwhile, you've got the property rented for two thousand
(31:22):
a month. You're getting income tax benefits because you can
now depreciate that property and write some money off your
income tax return. You're getting principal built up, and the property,
we assume is going to be appreciating. You're buying it
with the understanding that in the next thirty years you're
going to still own it. And what is two thousand
(31:45):
dollars a month income right now is going to be
four thousand dollars a month income at the point where
you decide to retire. And please understand that your entire
mortgage payment, the whole property is going to be paid
for by your tenant. Now, when you buy real estate,
if you're a ten ninety nine employee not W two,
(32:09):
you can actually write off your tax return the interest
and the taxes you pay on that property. And as
you know, also a portion of every monthly payment reduces
your principal amount. So what appears on first glance to
be a high monthly payment, you need to subtract off
(32:29):
of that, what is the amount of money that's going
to principle And you need to look at that like
it's putting money in a savings account. No, you can't
spend it, but it's there. It's your money. Now, in
addition to that, if what's needed is for you to
tap into your retirement account, my challenge to you is
(32:52):
your better if you need to to use some of
your tax money, your tax deferred four oh one k
I money, you're better off to use that to buy
some real estate then you would be keeping it in
the stock market. You see, mutual funds are fine when
they continue to go up. But all the experts are saying,
(33:14):
and I agree, there's going to be what is called
a market correction, and real estate has an inverse relationship
to the stock market, meaning when the stock market declines,
real estate does not. During good and bad economic times,
what you'll discover is if you've got income coming in
(33:35):
through your property, it's the asset that you want to own.
And again, for those of you listening that are parents
or grandparents, why don't you get together with your son, grandson,
granddaughter or daughter and son and let's all have a
phone call, let's all have a meeting, and let's talk
about how you can work together if you need to.
(33:58):
So you want to make sure that you buy something,
do not wait now. If you're not eligible for VA
financing no money down or USDA money financing no money down,
or you're not eligible for the grant because you make
too much money, or you don't want to buy in
a certain zip code, then you can still buy with
(34:21):
only three percent down payment. Yes, you have mortgage insurance,
but you know what, mortgage insurance can go away after
you get a twenty percent equity position. In a couple
of years, you can find a new appraisal of your
property and send it into the mortgage company and they'll
(34:44):
eliminate the private mortgage insurance that you had to have
because you didn't have twenty percent down payment. God bless
Dave Ramsey who tells people you want to make sure
you buy with twenty percent down payment. Well, you know what,
Dave Ramsey is great at teaching people how to get
(35:05):
out of consumer debt, but he's not acclaim to fame
on teaching you how to make money, which is what
I'm trying to tell you. How to do you want
to have real estate be the number one foundation of
building your assets? How many of you have heard of
the name Warren Buffett. Warren Buffett has a net worth
(35:27):
of over one hundred billion dollars. He is the chief
operating officer of a company called Berkshire Hathaway. I recently
read an article by him where he says most people
don't know the distinction between an investment and a speculation.
(35:47):
You see. He goes on to say that the real
losers in the financial world are people that save money.
Why on earth do you want to save money when
if it's in an interest bearing account, you pay taxes
on the interest combined with inflation, you're making no money
at all. Then the other side of the coin is
(36:10):
people that talk about investing. He says they're not really
investing at all. They're speculating. Now here's the distinction between
a speculation and an investment. A speculation is something that
you buy, that you hold on to, and that at
a certain point in the future it has to go
(36:32):
up in value and you have to resell it in
order to make a profit. So speculating is buying an
asset that you have to hold until it goes up
in value and then resell it to make your profit.
And Warren Buffett goes on to say that a true
investment is an asset that creates its own income, and
(36:55):
real estate would fit that category. Warren Buffett buys other companies,
so what he buys and a company, he's getting an
income stream through the profit of the company that he buys.
He's not a real estate guy, but he talks about
real estate from the point of view that it is
(37:15):
a true investment. You see, folks, you want to get
your money out of four oh one ks and iras
that are in mutual funds, and you want to make
sure you start building your net worth and your future
retirement income around income producing real estate. You want to
be investing instead of speculating. And by the way, most
(37:40):
of you aren't aware of this, But did you know
that your four oh one K and your IRA can
actually own individual investment property. That's right now. If you
go to your current employer and you ask them, can
I convert these assets into real estate, they'll either tell
(38:02):
you that you have to pay a penalty to withdraw them,
or they'll just plane till you know. What they won't
tell you is what I'm going to tell you. You see,
there's whoever is the custodian of your retirement account, and
it's the custodian that's not permitting you to buy individual
real estate with your retirement account. But what they're not
(38:25):
telling you is that you can change custodians. You can
create what is called a self directed retirement account, whereby
when you have money that you want to put into
your retirement account, you can set up a local LLC,
a company locally in a local bank, and that money
(38:49):
that you deposit into your own LLC. You can choose
to buy any qualified asset, and you can still buy
mutual funds if you want to. You could buy art,
you could buy vintage automobiles, you could buy bitcoin, you
can buy real estate. You get to choose what you buy,
(39:12):
and there's people out there right now that have money
in retirement accounts that even should by choice accept a
penalty and get out of the mutual fund world and
reconvert those funds into income producing real estate, because what
you'll discover is, even after paying a penalty to withdraw it,
(39:34):
that those funds are going to make you far more money.
You can't be looking in the past. You can't look
at what you're going to lose. You need to look
at what you're going to gain with certainty. You see
there's going to be a market correction, and whatever the
penalty you need to pay to withdraw those funds or
convert them to a self directed account, you want to
(39:55):
make sure you do whatever you need to do planning
for the future, because you're going to use that same
ten percent when the market corrects. And if you talk
to any financial expert about the stock market, it's not
a question of if there's a correction, it's only a
question of when it's going to occur. And if you
have a choice of using your funds while the market
(40:18):
is up or wishing you had after it declines, where
do you want to use your funds now? Some of
you have a previous employer where you have funds and
there's no penalty whatsoever, But you want to make sure
you take action and have a conversation with me about
(40:40):
how the best way to utilize your funds that you
have in your retirement account. And for those of you
that are planning to buy a home to live in,
it's possible for you to actually borrow against those funds
and not have any penalty whatsoever. And then of course
you repay back those money. But again you're doing so
(41:03):
by having an asset that is appreciating and it may
be giving you cash flow and income along the way. Now,
a quick story for you. In nineteen excuse me. In
twenty nineteen, I helped a young man named Tevis by
his first property. I met Tevis while I was visiting
(41:28):
a retail store in Mount Pleasant. Tevis was an employee there.
I asked him if he owned a home. He said no.
I said, are you married or single? He replied and
said I'm single. I said, well, if you could own
a home and have a little or no monthly payment,
(41:50):
would you want to own one? His answer was of
course I would. And long and the short of it is,
I helped Tevis. Now six years later, Tevas has two
hundred thousand dollars in equity in real estate as a
result of listening to my advice in twenty nineteen. And
(42:12):
when I come back from the break, I'm going to
give you more details on what we did to cause Tevas,
a single gentleman in his upper twenties, to now have
a two hundred thousand dollars equity position in real estate. Folks,
please reach out to me you want to have a
private conversation with me, and I can be reached at
(42:34):
eight four three three two seven three zero one seven.
Email me our Willis team at gmail dot com. Now, Folks,
when I come back from the break, I'm going to
talk to you about a home buyer seminar that I'm
going to be conducting, and I'm going to ask for
(42:55):
your opinion of whether you would like it to be
by way of Zoom or in person, or if I
do it in person, would you also like to have
Zoom access to it. So pay attention when we come
back from the break, you want to know about the
home buyer similar that I'm about to do. Folks, will
be right back after this break, right Charlie, Hello, this
(43:22):
is Rick Willis. I assume you've been listening to the
Rick Willis Real Estate Show. If so, are you considering buying, selling,
or investing in real estate? If so, you want to
make sure you request a copy and read my special
reports designed especially for those people looking to buy or
(43:42):
sell or invest in real estate. Special Report number one
is about buying real estate, and you'll discover how to
get your best buy and avoid the ten biggest mistakes
home buyers make. Special Report number two is for those
people thinking of selling their property. You'll discover how to
(44:04):
get your home sold quickly and net the most money.
And if you're thinking of investing in real estate, you'll
discover why you want to own income producing property and
what to buy for the safest place to put your money.
You'll also discover how to use your retirement account for
(44:24):
oh one k and ira without having to pay a
penalty to buy and own income producing property. Please note
I'm saying income producing property, I'm not simply saying investment property.
To get a free copy of any of the special
reports I just mentioned about buying, selling, or investing in
(44:44):
real estate, please text me at eight four three three
two seven three oh one or email me at our
Willis team at gmail dot com. That's our wil l
so I team team at gmail dot com.
Speaker 3 (45:05):
Text eight four three three two seven three zero one seven.
When you text or email me, please make sure you
request a very specific special report on buying, selling or investing,
and I will turn around and email you the special report.
Thank you.
Speaker 2 (45:36):
Welcome back, Welcome back to Charleston. Welcome back to the
final segment of today's Rick Willis Real Estate Show. Well, folks,
we've been talking about buying something anything. You want to
make sure you understand that the opportunity that's available to
you when you buy something, even if you don't want
(45:57):
to live in it for the long term. To stop renting.
And for those of you that are in houses that
are waiting for the interest rates to drop, go out
and buy yourself an investment property. Do something to keep
the equity snowball moving. And when I say equity snowball,
(46:19):
you see, when you buy your first property, you build
equity two ways. You have a monthly payment that pays
down your principal amount, and you have appreciation. Warren Buffett
had a partner named Charlie Munger, and I read an
article yesterday by his partner who died last year, and
(46:40):
Charlie Munger said he was asked the question of what's
the secret of becoming rich, and his net worth was
several billion dollars when he died. He said, the secret
to becoming rich is to get your first one hundred thousand.
And after you get your first hundred thousand, you can
(47:02):
kind of relax a little bit and just kind of
go with the flow. There's a momentum to going forward
once you get your first hundred thousand. Now, those of
you listening that do not own a home, I'm showing
you how today to get that first hundred thousand. You
start by buying something, even if it's not anything that
(47:24):
you want to live in. That's what you buy, and
you buy something with the understanding that you're only going
to live in it a very short time until such
time as you run it out. And when we go
look for a property, we work backwards from what will
it rent for to make sure the cash flow works
for you. So you're going to go out and buy
(47:46):
that property that you don't want to live in for
the long term with the understanding that it's going to
be a property that you use to get your first
hundred thousand dollars of equity working for you. You buy
that property today to live in, and you live in
it for one year, and it rents for two thousand
(48:06):
dollars a month. After you move out and buy what
you really want, then that particular property you hold it
for thirty years. You don't do what most people do
with rental property, which is to buy it, wait for
it to go up in value and resell it. You
keep it, and at some point in time you're going
to refinance that property and pull equity out of it
(48:29):
and buy more property. But you don't buy property with
the understanding that you're going to resell it. If you're
going to be buying property, buy it with the understanding
that you're going to keep it for the long term.
The tenant will eventually end up paying for your property.
And that same property that today you buy that you
(48:50):
didn't want to live in, you do so for a
short time, and we convert it to a rental. You
get two thousand dollars a month now, and then in
thirty years, when you retire or whatever number of years,
that property is paid for. But you didn't pay for it.
(49:10):
The tenant did and the property that you bought originally
for two hundred and fifty thousand dollars perhaps has doubled
in value or irrespective of its value, the two thousand
dollars a month rent is now four thousand dollars a
month rent, and you don't owe anything on the property.
(49:31):
How many of those properties would you like to have?
So I was telling you prior to the break, I
was telling you that there's a gentleman named Tevas who
in twenty nineteen bought a property that I represented him
as an owner occupant, single gentleman in his upper twenties.
(49:53):
I said to Tevas, would you be willing to buy
a property where you had a neighbor real close to you?
Of course, so we went out and we found him
a duplex to buy a two unit property. Tevas bought.
The property was seven thousand dollars total cash. He bought
a property in Somerville. He moved into one side of
(50:17):
the duplex and the other side was already rented. Now
Tevas kept that property and lived there for five years.
And then he still kept the property, moved out of
the property and got married, and he and his wife
(50:38):
bought a single family home. Now together the duplex and
the single family home that he now owns, he has
over two hundred thousand dollars in equity in those respective properties.
But what I want you to see is it started
with him investing only seven thousand dollars. We got the
(51:00):
dollar to pay the closing costs, and he now has
an income producing duplex that's giving him quite a few
hundreds of dollars a month in positive cash flow. And
he also has a single family detached residents that he bought,
and before you know it, he'll be converting that second
(51:21):
property that he bought as an owner occupant financing, he'll
be converting that property to a rental and buying another one.
And at this moment, he owns over six hundred thousand
dollars of appreciating assets starting to buy a property when
he didn't even think he was in the market to
(51:43):
buy a property. That's the magic of what Rick Willis
and yourself can do together if we communicate those of
you listening that are parents and grandparents, you want to
help your kids and your grandkids get started in owning
real estate. And for those of you listening that are
parents and grandparents that like the idea of building your
(52:05):
own retirement around income producing property. We should have a private,
separate conversation because you see it may or may not
be a single family home. It might be a duplex,
it might be a three unit property, or as I've
seen recently, it might be a four unit or an
(52:25):
eight unit property. I recently help someone buy a mobile
home park. Those of you listening that have some money
in your retirement accounts, or you have money in stocks,
find a way to convert your paper assets to hard assets,
tangible assets, of which real estate is the absolute best. Now,
(52:50):
I'm going to be doing a home buyer seminar coming
up next month, and I want you to get to
me your phone number and your email address so I
can send you a very specific invitation. I'm just firming
up the date and the location, so I don't have
that to tell you over the phone today or over
(53:13):
the radio today. Get to me please if you have
any interest in a home buyer seminar, which may be
by way of zoom, maybe in person, or maybe both,
or I'll go into a lot more detail on specifics
about buying. How you can buy a fixer upper without
(53:33):
any money out of your pocket. How you can buy
a home with a ten ninety nine without anybody verifying
your income or looking at a tax return. There's going
to be a number of things, quite a number of things,
twenty eight different items that I'll be discussing at that
seminar that I did not discuss here today. You want
(53:53):
to attend that seminar, either in person or by way
of zoom, Folks, please email me and say get me
information on your upcoming seminar. Email me at R. Willis Team,
the letter R Willis w I L l I S
Team t e A M. R. Willis Team at gmail
(54:16):
dot com, or call me directly or text me with
your email address eight four three three two seven three
zero one seven. Folks, I hope you enjoyed the show,
have a great weekend, and I look forward to hearing
from you,
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