Rick Willis 11-13-2025

Rick Willis 11-13-2025

Episode Transcript

Speaker 1 (00:00):
The following is a paid 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 advertisers, 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 Rig Willis on ninety four
to three in WSC.

Speaker 2 (00:32):
Hello Charleston, Welcome, Welcome to the Rick Willis Real Estate Show. Folks.
We've been on the air now since two thousand and
three here in the Charleston area. I relocated from the
state of Maryland here in nineteen ninety eight. I was
a real estate broker in the state of Maryland before

(00:53):
coming to the Low Country and came here to the
Low Country in nineteen ninety eight and got into the
real estate business in this town in two thousand and two,
and we started this show in two thousand and three.
When we first started the show, I would drive to

(01:14):
the location on Houston Northcutt Boulevard where Clear Channel Radio
had their studio, and at that time I had a
producer behind the glass and you could call in. It
was a call in talk radio show. Now the pandemic
changed all that. When the pandemic happened, I no longer

(01:39):
went into the studio. We did the show remote, and
we're still doing it remote. As you're hearing my voice today,
this is being recorded on the Thursday, prior to the weekend.
You're either hearing me on Saturday from noon to one
or you're hearing me on Sunday from nine until ten am. Now,

(02:05):
for those of you that have heard me for a
long time on the show on the radio, I may
sound a little different. In two thousand and twenty three,
I had a stroke and it impacted the left side
of my body, and obviously it had impacted my speaking
and my speech. But I did want to let you

(02:25):
know if I sound different and you haven't heard the
show before in a while, why that might be. Now.
Having said that, I still have all my faculties about
me relatives to real estate, so I'm still in business.
My wife and I together are a team. She has

(02:46):
a real estate license and has been working with me
ever since I got into the real estate business. So
if you're looking to buy, looking to sell, or have questions,
please feel free to reach out to me. I had
just yesterday someone call me and they picked my brain
about buying an investment property in Columbia. I gave them

(03:10):
the pluses, I gave them the minuses, and I gave
them some information that they would not have known had
they not called me. Please understand, folks, that having a
real estate license does not an expert make When you're
looking to buy looking to sell, you always want to
make sure you're working with someone who's very experienced. Since

(03:33):
I moved to the Low Country and started back in
real estate in the early two thousands, I've helped over
a thousand different people buy or sell real estate. So
I have been around the block. As they say, I'm
an old guy with white hair. And if you're going
to be operated on for surgery or dental work or

(03:59):
any kind of you always want somebody who's been there,
done it many many times. I'm never afraid to ask
a physician how many procedures they've done, how long have
they been doing this? And I'm very very intrusive in
terms of the questions that I ask and I would

(04:19):
encourage you to do the same. When you buy or
sell real estate, you don't want to just work with
a friend in the business or somebody that you know
or has just been referred to you without checking out
their credentials. You got too many dollars on the line,
and you have to make sure you're working with someone
who's very experienced. Now, speaking of experience, let's talk about

(04:44):
the real estate market. The real estate market here in
Charleston is very good. We're still one of the top
five states that people are relocating to. And if you're
going to be in the real estate market, you always
want to be in an area that's growing. South Carolina

(05:06):
is one of the most growth areas of the country. Texas, Tennessee,
North Carolina, South Carolina and Florida are three of the
states that a lot of people are moving to. And
of course, based on what happened in the election in
New York City, I'm guessing that Florida is going to

(05:28):
get a lot more people and probably South Carolina also
for people that might be leaving New York, well, that's
a good thing. If we're here in your own property,
you want to make sure you own part of what
is in demand, and that's local Charleston area real estate. Now, nationwide,

(05:51):
this past year twenty twenty five, we've had about two
to three percent growth of prices all across the United States.
Here in the Greater Charleston area, on average, it's probably
around three percent. And I read an article this past
week about the part certain parts of Charleston that are

(06:12):
still having a ten percent plus appreciation. So real estate
is a local thing. It depends on where you are,
and it can also depend on what kind of property
you're looking to buy. In other words, if you're in
a given area and you're looking at a condominium versus
a single family detached home, the rate of growth or

(06:34):
appreciation could be very different. So you want to make sure,
if appreciation is important to you, that you look just
for that particular area and the type of property that
you might be looking at. Folks, I don't know how
many of you have been paying attention to what's on
the national news that affects might affect you in the future,

(06:58):
But there's a couple of things that are happening in
the world of real estate that's being talked about nationally
right now. One of those things is a fifty year mortgage.
And the other thing being talked about is what is
called a portable mortgage. I'm going to give you my
opinion on these. A portable mortgage, they're saying that the

(07:22):
loan would be with the person, not necessarily be tied
to the property. In other words, if you have a
loan of four percent interest on a given property and
you decide you want to sell and buy another property,
you can take that mortgage with you and place it
on the new home. Obviously it has to appraise and

(07:44):
all those other things, but that's not a bad idea,
is it. And the other thing that is being talked
about is a mortgage for fifty years, and I know
I have an opinion about that. Dave Ramsey has an
opinion about that, and I read in an article online

(08:06):
they said the moment Dave Ramsey heard about a fifty
year loan, he had heart palpitations and was hospitalized. Now,
Dave Ramsey is a guy that doesn't like any kind
of debt. In fact, he tells you to go ahead
and get your house paid for. Well, he and I
think exactly opposite. You see, I think a fifty year

(08:29):
mortgage is wonderful because how many people ever stay in
a house for fifty years? How many people stay in
a house for thirty years? Answer? Not very many. So
if it is your intention to borrow money, why not
have a lower payment versus a higher payment, which is

(08:49):
what would happen with a fifty year mortgage. Your payments
would be considerably less than a thirty year mortgage. Ideal
for first time buyers, ideal for people that don't have
a lot of income. That would open up the housing
market to people that maybe couldn't get in it otherwise.

(09:12):
So I like both of those ideas because ultimately, at
the end of the day, very few people make money
by just paying down their mortgage. It's the money's made
by the property appreciating in value, and that would still
be there. So a fifty year mortgage would be great

(09:32):
for a first time buyer. And if you're an investor,
you're probably not going to keep the property for fifty years.
But if you have a fifty year loan and you're
an investor, what you're going to discover is the payments
would be lower. Therefore, the rental income that would come
in from that property would give you a better cash flow.

(09:55):
So I say, whether you're a homeowner, occupant, or an investor,
a fifty year loan is a great thing to consider. Now,
for those of you that have a lot of cash,
you still want to get a mortgage if you're going
to be investing in real estate, because how you make
money in investing is not by having a paid off mortgage.

(10:19):
How you make money in real estate is you buy
appreciating assets with the least amount of money possible, providing
that the income from the property will make the mortgage payment.
So if the mortgage payment is not being made by you,
but being made by the tenant, so what that it's
fifty years you can still have a tenant in that

(10:41):
respective property. Well, folks, my name is Rick Willis. I
am a real estate broker here in Charleston, and I
welcome the opportunity to counsel you individually, whether you're looking
to buy or sell a primary home or investment property.
Reach out to a guy who has been around the

(11:04):
block for a while. Call me directly eight four three
three two seven three zero one seven email me Rickatrickwillis
dot com. Folks, thanks for listening, and we'll be right
back after this break. Folks, you want to learn about

(11:25):
real estate for retirement, and you want to build your
retirement income around income producing property. Also, if you have
kids that you want to put through college, you don't
want to save money for their college education. You want
to invest in real estate where you can get a
twenty percent plus return on your money safely, instead of

(11:46):
the small amount of money that you'll get by putting
it into a savings account or a five twenty nine plan. Folks,
investing in real estate as a specialty of mind. Helping
people buy and sell real estate is a specialty of mine.
So call me eight four three three two seven three

(12:07):
zero one seven. Email me our Willis team at gmail
dot com. It would be my pleasure to speak with
you individually. I'll look forward to talking with you. Welcome back,
Welcome back to the second segment of today's Rick Willis

(12:27):
Real Estate Show. Well, folks, I hope it shows that
I have a great passion for real estate. Early in
my real estate, or shall I say early in my life,
I had a passion for real estate. I don't know
how it started or why it started, but when I
was a kid, I used to work at the beach

(12:47):
in Ocean City, Maryland, when I was in school during
the summers, and I would start looking at income producing
properties at the Beach. I didn't look at condominiums. I
looked at older properties that had multiple units in them
for whatever reason. And I always looked at those with

(13:08):
the understanding that if I was going to buy a
place at the beach, I didn't want a condominium, but
I wanted one of these older properties that had multiple
units in it. Why because it brought in more income.
I went and bought my first property personally when I
was twenty three years old. My wife and I at

(13:30):
the time bought a four bedroom brick house that was
built in nineteen hundred and we bought this on a
sixty three acre parcel in southwestern Pennsylvania, Somerset County, not
too far from where the nine to eleven plane went down.
But we bought that property and I had to borrow

(13:52):
some money from my mother to get the down payment.
And I never will forget I went into the local
banker in Myersdale, Pennsylvania, set across the desk from him.
He was smoking camels at the time, I can remember,
and he pulled out an envelope and just started writing

(14:13):
when I told him what I was looking to do.
We paid twenty thousand dollars for that four bedroom brick
house on sixty three acres, and that was back in
the early nineteen seventies. We put a total of four
thousand dollars down payment and bought that property. I don't
remember what the payments were. I think the interest rate

(14:37):
was probably ten to twelve percent back then, and subdivided
the property into three parcels, sold them and made a profit.
Now that got me started, and for the next ten
years I would always have a farm in southwestern Pennsylvania.

(14:57):
When I say farm, what I really meant was a
a rural property with some acreage. So after that experience,
we went and bought a ninety acre parcel of land
with a house on it, subdivided it into some rather
large parcels, sold those, made a profit, and went and

(15:18):
bought another piece of acreage with a house and land
on it. Now I would always look for a property
that had a house and land, because I could get
better financing if it had a house on it than
just vacant land. Long story short, I did that for many,
many years before I understood how to buy an invest

(15:41):
in property that I could rent out. So in effect,
I called it investing, but I wasn't really investing. I
was speculating. I was speculating on property that I could
buy and resell and make a profit. Now there's nothing
wrong with speculating, but I never want to call speculating investing.

(16:02):
Don't confuse the two. It took me twenty years from
the time that I started buying real estate before I
understood the difference between investing and speculating. At the time,
I was selling real estate in southwestern Baltimore. I was
working out of a real estate office in Catonsville, and

(16:27):
I discovered something called a row house in southwest Baltimore.
And I can still recall buying a row house for
twenty seven thousand dollars in an older neighborhood Southwest Baltimore.
Turned around and rented that property. I think at the
time the rents were about four or five hundred dollars

(16:50):
a month, and ended up owning quite a few row
houses in southwestern Baltimore. Now that got me started with
what I'm calling income producing real estate, and today I'm
not quite sure what those properties are selling for. But
we ended up buying and reselling all of those properties.

(17:13):
I look back on my real estate investing life and
I certainly wish I had held on to a whole
lot of property that I had sold, and I had
sold some things that would be worth a lot of
money today. Now I'm going to talk to you before
the day is out about an ideal scenario for you
to become a millionaire and have a net worth far

(17:37):
greater than you would if you put your money into
a four to oh one k or ira. We're going
to talk about how do you build a net worth
in real estate. So we talked about a fifty year loan,
we talked about a portable mortgage. But the bottom line
of the bottom line of my message today is buy

(17:59):
something today. You're going to have a loan where you're
going to get the maximum of thirty years. Take that
thirty year loan. Even if you can get a lower
interest rate for ten year loan or a fifteen year loan.
You always want the longest possible term when you're buying
real estate, not with the understanding that you're going to

(18:21):
pay it off, but with the understanding that you're going
to really make your money in real estate on the
growth of the asset that you're buying. So, for example,
in my own personal residence, I just recently refinanced my house.
I moved from Mount Pleasant to Caine Bay after I

(18:41):
had my stroke. I needed to be in a one
story home, so I'm now living in a one story
home in Caine Bay. I bought the property about two
years ago, refinanced it here about thirty days ago, and
I have about five hundred dollars a month of my

(19:03):
payment go towards paying down the property value. However, more
money than that is going to be gained by the
increase in value of the property. So remember that when
you're looking to buy real estate, get the longest loan possible,
with the understanding that rather than putting more down payment

(19:24):
to get lower monthly payments, use your excess funds if
you have them, to buy more real estate. The key
to my message today is buy something now. If you're
a young person and you're in your twenties or thirties,
and I'll even let those of you in your forties

(19:44):
and fifties in on this too. It doesn't matter what
you buy, buy something and don't continue to keep renting.
You see, when you're renting you're really making a mortgage payment.
You're making a mortgage payment of the person or the
apartment owner that you're renting from. Most properties have a

(20:06):
mortgage on them. You are making a mortgage payment. You're
just not getting the economic benefits of it. So get
started in building what I call your equity snowball. Equity
snowball is how you get started. Now. I grew up
in the state of Maryland, and unlike here in the

(20:27):
low Country, we would actually get snow in Maryland, and
I can remember going outside many times, taking the snow,
putting it in my hands, making a little snowball about
the size of a softball, putting it down on the
ground and starting to roll it, and it would pick
up more and more snow, and eventually it would be

(20:51):
large enough that I couldn't even lift it. That was
the base of the snowman. And then of course we
did the same thing again with one a little small
to put on top of the big one. But the
moral to the story is you get your snowball going,
you do that by buying something, buy something you don't want.

(21:13):
I have somebody that contacted me a couple of years
ago being very picky about what it is they wanted
to buy. They never found that special property they wanted
to buy, and to the best of my knowledge, they're
still renting now. That same person. Had they bought something
a few years ago that they didn't want, instead of

(21:37):
holding out for what they did want, if they had
bought something after living in it for one year, they
could move out of it, and if they really like renting,
go back to where you were renting, but buy something
and a year and a day later, move out of it,
turn around and rent that respective property, and you get

(21:57):
your snowball going. And then after year one, you've got
your equity paid down, you've got your value up, and
you year after year you're going to get more equity
in your property through a combination of paying down your
loan and the property going up in value. One of

(22:19):
my favorite stories to tell is a true story about
a gentleman named Tevis. And he may be listening to
this right now, I don't know. But in twenty nineteen,
when I was living in Mount Pleasant, I visited a
doctor's office and Tevis happened to be working there, and

(22:42):
I struck up a conversation with him, and as I
do with everybody, I meet. I asked him, do you
own a house? He said no, I don't. I said,
are you renting? He said, well, I live with my parents.
I said, would you like to own a house. He said, yeah,
but I don't know that I can afford it. I
asked him a few more questions, and then I brought

(23:05):
up something special to him. I said, what if you
could live in a house that would be a duplex
where you live in one side and you rent the
other side to help defer your mortgage payment. He liked
that idea. We went out and looked at a duplex
in Somerville and he ended up buying that property, living

(23:26):
in one side running out the other. It took less
than thirteen thousand dollars cash on his part to buy
that property sell it paid all his closing costs. He
moved in, and just a short number of years ago

(23:47):
he moved out of that property. It got married. He
and his bride bought a single family home. Now his
property appreciated from what he paid for it in two thousand, ninighteen,
which was about one hundred and seventy five thousand. It
appreciated now into the mid three hundreds. So here he

(24:09):
is he has between one hundred and fifty and two
hundred thousand dollars of equity in that property, and he
started with less than fifteen thousand dollars cash of his
own money. Now, those of you listening, if you have
to take money out of your four to h one
k ira or take a loan on it, do what

(24:30):
you need to do, but get started buying something. How
in the devil are you going to save one hundred
and fifty two hundred thousand dollars? You don't you buy
real estate? Buy real estate and wait. Don't wait to
buy real estate. Folks, reach out to me because I
want to help you get your equity snowball going, either

(24:51):
as an investor or homeowner occupant. Call me directly, Rick
Willis eight four three three two seven three zero one
seven email me Rick at Rickwillis dot com. Let's have
a private conversation with no obligation on your part so

(25:12):
I can talk to you about your unique situation. Let
me help you start building several hundred thousand dollars of
equity by getting your first property. For some of you
and for others of you that are listening, you may
already own a home and have some equity. Let's talk
about how I can help you build up your retirement

(25:32):
income so that you have a very safe place that
you can count on when you decide to retire. You
don't want to be in the stock market. You don't
want to own mutual funds. You want to own income
producing real estate. Folks. Will be right back after this break. Folks,
you want to learn about real estate for retirement, and

(25:56):
you want to build your retirement income around income producer property. Also,
if you have kids that you want to put through college,
you don't want to save money for their college education.
You want to invest in real estate where you can
get a twenty percent plus return on your money safely,
instead of the small amount of money that you'll get

(26:17):
by putting it into a savings account or a five
twenty nine plan. Folks, investing in real estate is a
specialty of mine. Helping people buy and sell real estate
is a specialty of mine. So call me eight four
three three two seven three zero one seven email me

(26:38):
our Willis team at gmail dot com. It would be
my pleasure to speak with you individually. I look forward
to talking with you back. Welcome back to Charleston, Welcome
back to The third segment of today's Rick willis real

(27:01):
estate Show. Well, folks, we've been talking about real estate,
and I've been emphasizing the importance to you of buying something. Now,
for those of you that already own a house, you
need to decide are you going to stay in your
house or are you going to buy another house? And
if you decide you're going to buy another house, do

(27:24):
you sell your existing home or do you rent your
existing home and then buy another one. Now, that's something
I could help you with if you called me and
had a conversation with me. You see, for some of you,
you should be selling it because you have too much
equity in it to keep it as a rental. And
for others of you, you should be selling it because

(27:47):
it's not going to make for a good rental based
on what it is or where it is. See, some
of you have too nice of a house to be
renting it. And if you sold it, you could take
the money by yourself some different kind of property in
a different location where you would get a better cash
flow for the dollars that you have. I can help

(28:09):
you determine what's best for you, folks. Whatever you do,
you want to make sure you're understanding that you don't
want to just work for money and have the money,
try to be saving money. You see the difference between
wealthy people and the average person is the wealthy have
understood the fact that you don't make money. You don't

(28:33):
become wealthy by working and saving money. You want to
invest your money, and a key word is invest invest
your money, don't try to save your money. When I
was a young man in my thirties in the real
estate business in southwest Baltimore, I discovered that the banks

(28:55):
in the lower income part of town or the lower
priced property were had a lot of money on deposit.
In the very same town, the banks that were in
more affluent areas didn't have as much cash on hand
because the wealthier climate people would either spend the money

(29:20):
where they would invest their money, and the poor people
save the money. So you see, the lower socioeconomic status
someone's in, the more they're inclined to want to save
money instead of invest their money. The secret of becoming
wealthy is understanding that you don't become wealthy or even

(29:43):
well to do by trying to save money. You can't
beat the system. I don't care how much return you're
getting on saving money. If you're saving money and getting interest,
you're going to pay taxes on that interest, and the
combination of the taxes you're going to pay on the
interest and inflation, at best, you're breaking even and very

(30:07):
likely you're losing money with every dollar you have in
the bank. You see, the secret is to educate yourself.
People that put money in banks are not well educated. Now,
when I say well educated, they may have a PhD.
But it's not in making money. The people that save
a lot of money might have a PhD, a master's degree.

(30:31):
They might be high IQ people, but not about having
their money make money. You see, you don't want to
just be working and trying to increase your income. I'm
going to suggest to you that you get an education,
keep reading and learn how to have your money make
you money. And the secret is don't risk your money.

(30:53):
You see, some of you think that it's safer in
the bank than it is in real estate. No, just
the opposite. Your money is much safer in the right
kind of real estate than it is in the bank.
In the bank, you're probably losing money. Now when I
say the right kind of real estate, let me just

(31:15):
make some general comments here condominium. Depending upon what the
monthly condominium fee is, it can either be a goodbye
or not so goodbye. When people want to buy an
investment property, I tell them, do not look for condominiums
because the condominium fee that you're going to pay every month,

(31:37):
assuming it's monthly or quarterly, that condominium fee is going
to take your profit out of your investment. Real investors
do not look to buy condominiums for investing, and they
don't go to the beach to buy. Don't confuse the
word investing, folks with the word speculating. Remember something speculating

(32:01):
is buying an asset that has to go up in
value and then resold and have somebody else buy it
in order for you to make a profit. How many
of you have heard the name Warren Buffett. Warren Buffett
has a net worth in the US. Warren Buffett's net

(32:21):
worth is now in excess of one hundred and fifty
billion dollars. Warren Buffett defines an investment is owning an
asset that produces its own income while you own it
and may never have to be resold to make a profit.
Way back in the day, he bought a lot of

(32:42):
shares of Coca Cola, and he says, I'll die owning
my shares of Coca Cola. He's making money while owning
the shares of Coca Cola. Now, Warren Buffett invests in
companies primarily he's got hundreds of billions of dollars available
to buy companies, and he buys companies that have good

(33:05):
cash flow now that he can improve on, or he
buys companies that with a cash infusion, can make a profit.
The secret of investing is to buy an asset that
does not need to be resold to make a profit. Now,
my question to you is this, other than income producing

(33:26):
real estate, what else is it they would meet that
definition of an investment. So again, people are out there
buying bitcoin, they're out there speculating in stocks, and they're
calling it investing when in reality is they're speculating. Remember,

(33:47):
speculating is putting your money into an asset that has
to be go up in value and then later resold
in order for you to make a profit. Keyword of
at risk again Warren Buffett and his partner Chell It
Charlie Munger. Risk is putting your money in a place

(34:07):
that you can't control. It and you don't understand it.
You see, Charlie Munger and his partner Warren Buffett during
the dot com run up did not buy the speculative stocks.
They didn't even buy Apple when it was first going,

(34:28):
When they could have bought it, they said, no, I
don't understand it. So they waited until it got its
legs and was proven to be successful. Then they went
and bought it. Bottom line to the bottom line is
key is to buy an appreciating asset that creates cash
flow and income while you own it. Now, I mentioned

(34:52):
to you about a condo with a fee. You don't
want to buy that for an investment. What about a
townhouse with an HI Well, the answer is if it's
not a high hoa, it's good. It can be a
good investment. You see, when people come to me and
they talk to me about wanting to invest in real estate,

(35:14):
first thing I do is I ask them their opinion
of what they think they want. And it's amazing what
people tell me. They want to buy things in a
path of growth. They say they want to buy a
property with a good school system. They want to buy
a newer property. So there's not going to be any repairs.

(35:37):
Bottom line of the bottom line is most people never
ever mention when I ask them what they have in
mind a property with good cash flow and income. You see,
the secret of real estate is to buy an asset
that is going to go up in value with the
minimum amount of cash, that provides a positive cash flow

(35:59):
while you own it, and at some point in the future,
instead of selling that property, you're going to refinance that property.
You're going to pull some tax free cash out of
that property, and you're going to buy some more real estate.
The key to real estate is to buy an appreciating
asset that's providing cash flow and hold on to it.

(36:22):
You see, that's going to be your retirement. That's what
you're going to leave your estate. That's what you're going
to leave to a charity. So instead of when you
turn on the TV or you go online or radio,
people are advertising sponsored this for eleven dollars a month,
nineteen dollars a month. I remember going back in time

(36:47):
as a kid watching the Jerry Lewis Telethon and other
shows like that where they were would come on annually
or semi annually and they would be raising money for
a given charity. Now instead of trying to raise one
lump sum for a charity. What they do is they

(37:08):
want your credit card so they can doing your credit
card every month with tunnel to towers or Folds of
Honor or the American Cancer Society, whatever it might be,
so that it's a one time sale on the part
of the charity and you are paying every month. That's

(37:29):
the secret is buy an asset that pays you every
single month. You want to own income producing real estate,
so a condominium, I've talked about, a townhouse, I've talked
about a single family detached residence. All things being equal,

(37:50):
the more expensive that property is, all things being equal,
the worst investment it is. Remember, an investment is going
to give you a positive cash flow. For some of you,
you have way too much equity in your house to
turn it into a rental. You should sell it, take
the equity and buy some lesser price properties. They're going

(38:13):
to give you a better return on investment. You see,
there's a concept called return on investment and a concept
called return on equity. Some of you own some income
producing property that are listening to me right now, and
you've got the property paid for. Well, that's a good thing.
And it's a bad thing. The bad thing is you're

(38:36):
not nearly getting what you could be getting as a
return on investment. If you sold that property that you
have a lot of equity in and bought some lesser
price property or a different kind of property, you'd be
getting a lot more income for the same amount of equity. Now,
when I have an investor that i'm working with, I

(38:59):
usually show them in the Charleston area, here's a certain
part of town or a certain type of property, and
here's the income that you can get from it. Here
is the amount of cash that it's going to take
to buy this respective property, and then we settle in
on what it is they want based on their goals

(39:19):
and objectives. Now, if you're in your twenties, thirties, and forties,
I'm going to suggest to you that you do not
want to be depositing money in a four to oh
one k or an ira. You want to be using
those same funds to be buying income producing real estate.

(39:40):
And if you have money in a retirement account, you
either want to borrow against it, convert it to a
self directed four oh one k ira, or cash it in,
pay the penalty and buy some income producing real estate.
Now I can and show you with a paper and

(40:01):
pencil and a calculator why it's to yourself serving best
interest to pay a penalty and get your money out
of your retirement account. Please understand, it's mathematical. It's not
about Rick Willis's opinion versus your opinion versus your financial advisor.
You see, your financial advisor does not understand income producing

(40:24):
real estate the way I understand income producing real estate.
But I don't give advice on mutual funds either. I
don't give advice on any other form of paper asset.
Why because I'm not qualified to do so. Do not
assume that your financial advisor, your employer, or your spouse

(40:47):
understands investing in income producing real estate. I have personally
owned over one hundred and thirty income producing units in
my life, and that condominiums includes townhouses, single family, detached,
includes an office building, it includes multi family properties, duplex,

(41:14):
four unit properties, five unit properties, mobile home park. I've
pretty much invested in about everything there is, including storage units.
So I understand firsthand about income producing real estate. And
if that's an area that you have an interest in,

(41:36):
you don't want to work with your friend and the
business realter because they probably don't own it and they're
not experts at it. I find it interesting that people
will go and work with their quote friend in the
business or somebody that might have helped them with their
house when buying income property, and that same realtor doesn't
even own any income property. They don't understand it. I

(42:00):
do understand it. You want to make sure you come
see me and talk to me about it. Now. There's
a lot of people listening right now that have heard
my show in years past, and you haven't called me,
you haven't texted me, you haven't emailed me for a
private consultation. I have a meeting later this morning when

(42:21):
I'm recording this show earlier in the morning. I have
a meeting later in the morning with a gentleman that's
going to come see me who said, I've heard you
several years ago. I just heard you this past weekend,
and he said, I told myself back then I needed
to meet with you, and I didn't do it. So
we're going to make it happen. He called me yesterday

(42:42):
and we're meeting in a couple of hours. And the key, folks,
is not to just accumulate knowledge. Do not accumulate knowledge.
The key is to put it into effect, put it
to work, and to know whether it's right for you
or not. You need to be talking to a financial
expert in the world of investing in real estate. Folks.

(43:05):
Reach out to me my phone number eight four three
three two seven three zero one seven. Email Rickatrickwillos dot com.
Let's plan a time we can meet. Let's plan a
time we can chat about your unique personal situation and
how I can help you save money or make money

(43:26):
with your own personal residents buying or selling or income
producing real estate. Folks will be right back after this break. Folks,
you want to learn about real estate for retirement and
you want to build your retirement income around income producing property. Also,

(43:48):
if you have kids that you want to put through college,
you don't want to save money for their college education.
You want to invest in real estate where you can
get a twenty percent plus return on your money instead
of the small amount of money that you'll get by
putting it into a savings account or a five twenty

(44:09):
nine plan. Folks, Investing in real estate is a specialty
of mine. Helping people buy and sell real estate is
a specialty of mine. So call me eight four three
three two seven three zero one seven email me our
Willis team at gmail dot com. It would be my
pleasure to speak with you individually. I'll look forward to

(44:32):
talking with you.

Speaker 1 (44:34):
Thank you.

Speaker 2 (44:37):
Welcome back, Welcome back to the final segment of today's
Rick Willis Real Estate Show. Well, folks, I've been talking
about investing in real estate. I've been talking about if
you don't own something, by something and if you need
to convert it to an investment property after you own it.
Do what you need to do, but make sure you're

(45:00):
buying something. If you have a credit score of five
hundred and eighty or better, you can probably buy something. Now.
Please understand, different lenders have different guidelines when it comes
to borrowing money. There's about three or four different ways
you can buy a house with zero cash, no cash

(45:23):
out of pocket. So I want to make sure you
reach out to me so I can show you how
to do that. I just helped the first time buyer
in the last two weeks place the contract on a
duplex buying one property that has two units. Now you
can either rent both of those units, or you could

(45:45):
rent one of them and live in one of them,
and as an owner occupant, you can get into a
duplex for only three percent down. So for the investor,
the person that I help buy, which was not a
person who had ever owned a home before, he put
a contract on a three hundred plus thousand dollars duplex

(46:10):
and he's going to come out of pocket a total
of less than ten thousand dollars probably to buy this property.
Seller's going to pay all of his closing costs, which
is going to be five thousand or more, and he
had a home inspection done, and he's going to get
a five thousand dollars credit for some things that need

(46:32):
him upgrading, improving, or fixing. So please understand that you
need to get your snowball going. And whether you live
in the property or rent it out, you just need
to get that snowball started. Please understand that if you
currently are a veteran, and I mentioned this to someone yesterday,

(46:56):
do you know it's possible to have a VA loan
on a property and buy another property at the same time.
With a VA loan, you have what is called a
certain amount of entitlement with the VA, and depending upon
what your loan balance is, you can have two VA
loans at the same time. So also please understand that

(47:19):
you can use your VA loan as many times as
you want to, providing you pay it off or you
still have some additional entitlement. So for the veterans out
there that served a couple of years active duty, also
for the National Guard and the reserves. If you haven't

(47:39):
used your VA, why not use it? Please understand, folks,
you can use your more your VA loan buy a
property no money down, have the seller pay all your
transaction and closing costs, move into that property for nothing,
no cash and if you're not veteran. I helped another

(48:02):
first time buyer by a single family detached home zero
cash out of pocket through using what is called a
USDA loan where they bought a little bit outside of
the metro area no money down, seller paid all the
closing costs and an inspection was done and the seller

(48:25):
paid to have some repairs done. So don't look at
a property and think that just because it needs repairs
that you shouldn't be buying it. You can even get
a loan and borrow the money to fix up a property.
Are you aware of that? Both conventional as well as
FAHA have loans that you can buy a home and

(48:46):
use borrowed money to put a brand new roof on it,
completely redo the interior of the property, etc. So please
understand that all you need to have really is the
commitment to buy something. And for some of you listening
out there right now, you need to have a parent
co sign for you do it. Or if you the

(49:09):
adult want to get your son, daughter, grandson, or grandchild
with you, it might be possible to buy in conjunction
with them, and instead of getting owner instead of getting
investor financing, you can get owner occupant financing. Now, owner
occupant financing is always cheaper and better than investor financing.

(49:31):
For example, if you are going to buy a multifamily
property as a homeowner occupant, you can get in for
probably three percent down payment. The same multifamily property two
to four units would require twenty five percent down payment

(49:52):
as an investor. So anytime you have the ability to
use an owner occupant financing, you want to do that.
If you're buying an individual single home, if you put
as an investor, if you put fifteen percent down payment,
you have mortgage insurance. If you put twenty percent down payment,

(50:16):
you have no mortgage insurance. The same single family home
you put twenty five percent down, you still have no
mortgage insurance, but you get a lower interest rate. Folks,
you don't necessarily ever want to use the bank where
you bank to apply for a loan. You see, I
believe in shopping with a mortgage broker that has access

(50:40):
to maybe thirty forty different lenders nationwide. You want to
make sure you reach out to me, folks if you're
thinking of buying, thinking of selling, because I'm going to
steer you in the right direction. Folks. You want to
have your own buyer's agent. So if you're an investor buyer,
or a homeowner, OT up and buyer, vacant land buyer,

(51:02):
or commercial buyer, you want to have a relationship with
an agent that is representing you in the purchase of
real estate. I do this every week. I represent people
that are looking to buy or sell real estate, and Folks,
what you're buying. When you have an agency relationship with

(51:26):
a rialder, it doesn't cost you any money. With Rick Willis,
some realtors will have you sign an agreement that says
there's a minimum fee of a certain percentage and if
the seller doesn't pay that minimum you have to pay it.
When I work with a buyer of property, I put
in writing that they never have to pay part of

(51:48):
the commission ever, that everything they're getting with me they're
getting with no cost to my service. You want to
make sure, folks, you have a very experienced agent that
you're working with, and I encourage you and invite you
to interview me. Folks, go to my website, read my bio.

(52:08):
My website is Rickwillis dot com, and I want you
to reach out to me by calling me eight four
three three two seven three zero one seven. Text me
the same number eight four three three two seven three
zero one seven. Email me Rick at Rickwillis dot com.

(52:30):
Let's pick a time we can chat by phone meet
in person. I want to help you get your equity
snowball going or expand it if you're already in the business. Folks,
it's been a pleasure talking with you today. I always
enjoy talking about real estate, and I hope I can
meet you in person soon. Folks, have a great weekend.