October 30, 2025 • 38 mins
In this episode of the Jon Sanchez Show, Jon Sanchez, Dwight Millard, and Cory Edge discuss the impact of recent Federal Reserve decisions on mortgage rates and the housing market. They explore strategies for turning home equity into retirement cash flow, including HELOCs, cash-out refinancing, downsizing, reverse mortgages, and accessory dwelling units (ADUs). The conversation also touches on the challenges faced by the real estate market and potential solutions to stimulate growth.
👉 Watch this episode on YouTube: www.youtube.com/@thejonsanchezshow
👉 To learn more about retirement planning and wealth management in Reno, visit: sanchezgaunt.com
Compliance Disclosure: This program is for informational purposes only and should not be considered investment, tax, or legal advice. The views expressed are those of the participants and may not reflect the views of Sanchez Gaunt Capital Management. Investing involves risk, including the possible loss of principal. Past performance is not indicative of future results. Always consult with a qualified financial professional regarding your individual situation before making financial decisions.
👉 Watch this episode on YouTube: www.youtube.com/@thejonsanchezshow
👉 To learn more about retirement planning and wealth management in Reno, visit: sanchezgaunt.com
Compliance Disclosure: This program is for informational purposes only and should not be considered investment, tax, or legal advice. The views expressed are those of the participants and may not reflect the views of Sanchez Gaunt Capital Management. Investing involves risk, including the possible loss of principal. Past performance is not indicative of future results. Always consult with a qualified financial professional regarding your individual situation before making financial decisions.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:03):
Good Thursday afternoons. You welcome to the John Sanchez Show,
one News Talk seven eighty. Can't wait. It's a pleasure
to be with you and a pleasure to be with
my Tuesday and Thursday co host. We'll go around the
horn or we're actually waiting for mister Edge to be
joining us in just a moment. We do have mister
Millard Dwight Millard Hyland's mortgage. How are you, my friend.
Speaker 2 (00:21):
I'm doing fantastic, John, how are you.
Speaker 1 (00:24):
I feel bad for you, brother.
Speaker 2 (00:26):
We predicted it. We predicted it.
Speaker 1 (00:29):
Yep, come right out of the gate and just tell
you I feel bad for you with these thirty year
mortgage rates moving up after a FED interest straight cut
and like you said, exactly what we predicted would happen. Yeah, yeah,
I don't know what else to say about it. It's
it's a it's a tough situation. It's got I have
you been fielding calls for people like.
Speaker 2 (00:50):
Absolutely, absolutely absolutely, you know, then they're basically saying, hey,
the FEDS did this. You know what the rates? I
heard the rates are yeah, yeah, yeah. So it's it's
a difficult situation to try to explain to people. But
you know, we've been here before several times. When the Feds,
you know, go back a year ago.
Speaker 1 (01:06):
You know, you know what what what frustrates me? There
was a lot of things yesterday, not so much on
the FED side. Well, i'll say on the FED side,
a lot of things frustrated me yesterday. But but because
you we covered it on the show yesterday, Jason, I
think you're up with thirteen basis points yesterday on the
thirty mortgage.
Speaker 3 (01:25):
Yeah right, yeah.
Speaker 1 (01:26):
So let's just jump right into it, up another six
basis points today. You're now at six thirty three. Right.
All that momentum you had going down for so many
months all completely reversed. Yes, and again I think you
know what. What happened a couple of different things. Number
one is Chairman Pal yesterday indicated they're going to let
the balance sheet continue to run off. They're going to
(01:49):
take some of the pros on the mortgage backed security side,
and that's why we were talking about you on the
show yesterday. And then of course the other other things.
They're there when those boonds come to they're taking it
and they're buying short term treasuries with it right to
drive down the shorter end of the curve, well shorter
end of the curve. The two years that didn't do
you any good, right, you focus on you know, Jenny
May's Fanny maze, and of course what the ten years doing.
(02:11):
So his move yesterday did nothing with this new runoff
of the balance sheet or I should say new, but
in addition did nothing for mortgage rates. He even talked
about the struggle that housing markets going in. And then
of course his other great comment, which was it's not
a foregone conclusion that we're gonna get an interro straight
cut in December. In the street, you know, panicked on that, like, really, guys,
(02:33):
what do you what do you think he's gonna say.
He's not gonna come out, right, Corey. Corey just joined us.
Powell's never going to come out and go, oh hey,
guess what. Yeah, just preparing everybody for a you know,
we're gonna give you an interes straight cut in December.
He always says that, but again, the momentum is on
the downside. They're not going to pause in December going
into a brand new year. There's no way. But yeah,
(02:54):
everybody panicked on that, so good.
Speaker 3 (02:58):
Quicker I was just gonna say he said, not only
is it not, We're gone, it's not even close. You're right,
they are going to punts.
Speaker 1 (03:09):
Yeah, yeah, Corey, I think we still have a little
bit of technical problem with you. I'm just kind of
hearing every few words. If I could get you to
jump out of the room and come back in, that's
if we can get a little bit better connection from me.
Thank you, buddy. All right, Well, with that said, we'll
talk more about the mortgage rates here in just a second.
Let me tell you what we have lined up for
you this afternoon with Corey and Dwight. So you know Tuesday,
(03:30):
if you joined the show, we went into a really
important topic that's going on right now, and that is
this how to turn home equity into retirement cash flow.
And as usual, we only got through just a few
of our points, and so we promised you on Tuesday
that we're going to wrap up these points today. But
you know, as the boys went on to say Tuesday,
how great timing of the subject it really was, because
(03:53):
we have a lot of things going on, folks. Number One,
for those of us that are the baby boomers, right,
there's this great wealth transfer. What's the number, Dwight that
we went over at thirteen plus trillion dollars of money
that's going to be transferred from you know, our generation
Dwight over to the younger generation. And I don't remember
the exact number, but I think it was three or
four trillion of that is just in real estate equity alone.
(04:17):
So this is going to be happening, folks. But in
the meantime, you're sitting on this equity, hopefully, what do
you do with it? Especially if you're a retireing and
you're going, hey, wait a minute here, you know, things
are getting a little bit expensive. What do I do?
I mean, I just had a conversation with my son
this morning and he goes, Dad, and I won't name
the name of this convenience store slash truck stop stop,
(04:41):
but he said, you know, I stopped and I got
a breakfast burrito this morning and he said it was
twelve dollars and I said, I haven't bought one there
and I can't tell you probably two or three years
and I used to pay about four dollars. And you know,
I mean, everything is going to be more expensive. And
when you're a retireing and of course you're on a
fixed income, you feel it more than some of that
is still working. So you know, that's why we're going
(05:02):
to go into this topic, which again is how to
turn this this equity that you have in the right situations.
And you know, again, we're not gonna be talking if
if if you think we're gonna be telling you to
go take your equity out and and you know, go
buy a boat or go buy a quad or something
fun like that. No, that's not it. We're talking about
taking this this equity that's not doing much for you
and turning it into something that's going to generate cash flow. Again,
(05:25):
if you're a retiree, even if you're not a retiree,
and you know again you're looking to run the numbers
and contact Corey and say, okay, you know I just
pulled out whatever do I just gave me a loan
for three hundred thousand helock. Let's go find a you know,
an investment proper. Let's use it as a down payment
or go find something that'll produce cash flow. Right, that's
the goal of it. So again, we only got through
a few points. Well, recap what we cover it on
(05:46):
Tuesday and then get into our fresh points. All right,
mister Edge nice. I'm glad that you could join us.
Any points that you want to add so far what
you're saying.
Speaker 3 (05:54):
No, No, I was just gonna say I thought he
was fairly adam I don't want to say adamant of
no rate cut into December, but he seemed more stern
this time about.
Speaker 1 (06:03):
He did seem more stern. I agree completely. I agree completely. Yeah,
he didn't seem to be one of his better moves
that he's been in these last couple FED meetings. But
you know we will see obviously no FED meeting in November.
It'll all be about the December one as we wrap
up the year then and go with it.
Speaker 2 (06:19):
John, Almost John, it almost goes to show you how
much the market was preparing for a December rate cut
whither by the knee jerk reaction when he said, oh,
I'm not sure this is going to happen, right, That's
what I was warning people. I think they've baked in
at least December, if not even changing.
Speaker 1 (06:38):
A couple times next year. Yeah, exactly. And you know
we said the same thing on the show yesterday toight
Wall Street's a bunch of spoiled brats. They don't get
what they want, they vote with their finger, meaning they
hit the sell button and in the bailout and they're
like okay, you know, and we saw it with the
other frustrating part yesterday, which was Microsoft and Meta, which
reported stellar numbers, but they had a couple of little
unusual charges and they beat the heck out of the
(07:00):
companies yesterday and drove the market down, you know, yesterday
from it's highs. You know, it finished down just a
little over seventy yesterday. But well, it was a it
was a tough one today.
Speaker 2 (07:09):
You know.
Speaker 1 (07:09):
We had a two hundred point loss on the or Suing,
one hundred and ten point loss on the Dow, down
three seventy seven, one point five seven percent on the
NASDAK and a point nine to nine percent declining on
the sm P five hundred down sixty eight points. But guys,
you know, I'm just going to jump right into the
stock market review. It was a it was a tough
day to day from excuse me, from a lot of
(07:29):
different standpoints. And what was frustrating is they didn't the
buyers did not, or I should say, the algorithms did
not step in today whatsoever. And uh uh, you know,
come and start nibbling away at Microsoft and Meta and
you know those type of companies like I was saying,
and so that was kind of interesting. But don't lose hope.
(07:50):
I have some very good news for you as to
far as what's happened in the after hour. So let
me get right to that and then we can start
moving through the rest of the thing. So here's how
those two aforementioned names performed today. So we had Meta
down eighty five dollars and twenty cents eleven point three
to three percent loss to six hundred and sixty six
dollars and forty seven cents. Okay, now the reason again,
(08:12):
great numbers for the previous quarter. But what Meta said
was we're going to take a fifteen point nine to
three billion dollar non cash income tax charge. That's all
they said. They didn't go through any explanation. So I've
dug a little bit deeper into this because i want
to see what exactly is this. So the company did
say that it stems from the one big beautiful tax bill.
(08:34):
Right now, what Meta did? It required Meta to record
a valuation allowance, which is basically, in Layman's terms, a
write down against some of its deferred tax assets in
the US. The company emphasized that this is a one
time accounting adjustment, not an outflow of cash, and that
(08:54):
it actually expects lower US federal cash tax payments going forward.
So Corey, you're a numbers guy, you know, Okay, to me,
after I researched this, I'm like, because again, yesterday, that's
all they told us. Then and then finally today. You know,
like I said, I did some digging. It's basically like
when we give a tax return to Dwight and we say, okay,
you know, we made a half a million dollars, but
(09:16):
I only had to pay income tax on one hundred
thousand because I had four hundred thousand dollars worth of depreciation.
I'm not a bad guy, right, I mean, I still
have the income and everything. But it was a phantom expense.
And that's what this was. It was basically a phantom expense.
It was just a one time right down and like
they said, thanks to the big beautiful tax bill, things
(09:36):
are going to be great going forward. But we had
to take this one charge against taxifer an assets. It
made no sense, made no sense. Up, we lost Corey's volume. No, sorry, Corey, Yeah,
we can't hear you all right, Yeah, he'll jump out,
get back in here a second. And then the other
one Microsoft again, great earnings numbers haven't formidded. The company said, hey,
(09:58):
you know, we're gonna improve our CAPEX spending capital expenditure
spending into AI. And the street punished him for that one.
So Microsoft today was down fifteen dollars and seventy seven cents,
two point ninety one percent lost to five twenty five
seventy eight. Tesla was another drag, down twenty one dollars
and forty one cents. Chipotle another one. They said, hey,
(10:18):
guess what people are coming in? And I made a
joke this morning on the stock up dates. I said, yeah,
when you offer a you know, a little bit of chicken,
some rices from guacamole, and you charge fifteen dollars, no surprise,
I never go out to eat. I was joking. My
wife and I went and went to one the other
day and yeah, it came out and I said, you know,
we got that two chicken bowls and I said how
(10:40):
much would it come to? And she said it was
like forty four dollars. What what are you talking about? Like, yeah,
it's like a little over fifteen dollars each and then
I think she got some chips and something else, and like,
so we don't go out dat like that. Who the
hell didn't afford that anymore? You know? eBay was down
fifteen dollars and eighty one cents eighty three seventy three.
All right, enough of that. Now, I've got some good
(11:00):
news that I'm going to share with you when you
come back. We have some bigger news numbers out of Apple,
bigger news numbers out of Amazon, and I've got some also,
some great news on Netflix. So we'll do that, and
then we're going to get into our topic, how to
turn a home equity into a retirement cash flow. Let's
turn it over to Christen snow right now Traffic Center. Hello, Kristen,
(11:23):
Welcome back to the John Sanchez Show on News Talk
seven to eighty KO wait to the Corey Age of
Vidrility to WHI Millard of Highlands Mortgage. Once again, we
finished down one o nine on the Dow, the Nazek
lost three seventy seven and lower by sixty eight on
the S and P five hundred. I want to go
back real quick, guys, before I get to this after
hours movement of Apple and Amazon and Netflix did a
little bit of further digging ury in their break, And
I want to go back to this non cash income
(11:46):
tax change again announced by Meta that again just significantly
pressure the stock today. So you two as business owners
and myself, we understand this. So what they actually did
a little bit further here is they acknowledged that some
of their tax deferred assets. Okay, so essentially what these
are tax deferred assets in English, this is credits or
(12:07):
losses they had on the book. They were going to
use those to offset like we all do taxes, right,
losses offset gains dollar for a dollar. But because of
something in the in the new tax bill, they may
no longer be able to do that. So they reduced
their reported net income today even though the operating cash
flow has not changed whatsoever. So again it was just
(12:28):
like a one time ride off has nothing to do again,
great earnings numbers, et cetera. So all right, with that set,
let's get into these after hours numbers. Then we'll get
into our topic, how to turn home equity into retirement income.
So I want to mention Netflix, all right, So here's
what's going on, guys, regular sessions stock finished down eleven
dollars and forty one cents. That was a one point
zero four percent loss to one thousand and eighty nine
(12:48):
a share. Right now, in the after hours, it's up
forty dollars and fifty three cents, three point seventy two
percent to one and twenty nine dollars and fifty three cents.
Why is the stock moving up with the company announced
a ten for one stock split, which again will make
their shares more affordable, of course, going on. Now, here's
what you got to do if you want to be
(13:08):
a part of the stock split. Doesn't make any difference
if you're before or after, but if you want to
be a part of it, you need to be a
shareholder as of November the tenth. The allocation of the
you know, additional nine shares that you will get will
occur on November the fourteenth, and it will trade post
split on November the seventeenth. So big big news there
(13:29):
on on Netflix. All right, that one's out of the way.
Let's go to the next big mover going on in
the after our session, and that's our friends over at Amazon.
Regular session stock was down seven dollars and forty four cents.
Three point two three percent loss to two hundred and
twenty two dollars and eighty six cents. Right now in
the after our session up thirty or excuse me, twenty
nine dollars and fifty four cents, a thirteen point twenty
(13:50):
five percent gain to two hundred and fifty two dollars
and forty cents. Company reported after the closes, I said
strong growth in the cloud competing business. They made a
buck ninety five. Estimates were a dollar fifty seven per share.
Revenue came in at one hundred and eighty point one
seven billion estimates one seventy seven point seventy five billion,
So a nice big beat there. And remember Amazon's part
(14:12):
of the doll as is Apple. What happens? What's going
on with Apple? Dollars seventy gain in regular session point
sixty three percent to two seventy one forty Right now
in the after hours, it's up seven dollars and sixty
one cents, a two point eight percent gain to two
seventy nine oh one. iPhone makers said that basically they're
given the street a really strong forecast for the December quarter.
(14:35):
They're seeing extremely strong demand for the iPhone seventeen. As
far as the previous quarter, they made excuse me, they
made a dollar eighty five a share. Estimates were a
dollar seventy seven. Revenue came in at one oh two
point four seven billion dollars just for the quarter, and
analysts were looking for one hundred and two point twenty
four billion. So nice beat across the board. Nice outlook,
(14:56):
that's exactly what you want. And so that should definitely
be helping the company out on the pre market and
contribute to some pre market games in the futures, which
again just started trading a little while ago, but they're
budging up a little bit now, futures up forty now's
that futures are up two hundred and eighty nine, so
almost wipe out the game if the hole or the
(15:16):
loss of today should say and the SMP futures are
up forty one, so this should, like I said, pull
us out of this funk that yeah, everybody went into
yesterday after your friend mister Polladway.
Speaker 2 (15:27):
Do you want to cover rates real quick.
Speaker 1 (15:29):
John, Yeah, let's let's jump into it. Let's do it.
A four basis point increase on the tenure today four
oh nine. Take it from there.
Speaker 2 (15:34):
Four oh nine. Okay, John, So if you remember back
on Tuesday, we were six point one three. Okay, we
are six point three three today. Twenty basis point increase
in just two days. That's huge, that's huge movement.
Speaker 3 (15:50):
Yeah.
Speaker 2 (15:51):
Yeah, just about a quarter percent. And it does I mean,
it doesn't look like it's any going to be any
better tomorrow, basically going on Friday, a weekend, so I mean,
here we go again. And you know, I guess you're
damned if you danned them. If you don't, I don't
know what I mean. I know he was kind of
hawkish on December, but boy, it's just going to continue
to drive buyers away. I'm just surprised at how I'm
(16:15):
not but I am surprised how slow it is out there.
Speaker 3 (16:18):
John.
Speaker 1 (16:18):
You know, you know, do I and Corey from an
outsider's perspective. Outsider meaning someone that's not in the real
estate industry day by day like you guys are. I'll
tell you my perspective, and I'd like to know if
you guys agree or disagree. Being in the industry, it
almost feels like to me that the Trump administration looks
at the real estate sector slash economy as a wicked
(16:39):
step child. It's like they know what's a problem going
on out there, but there has not been one darn
thing to my knowledge, that they have done to help
out the housing sector. Right. They obviously, you know, with
the FED situation going on, et cetera, that's you know,
quasi out of their control. But there's been no incentive program.
(17:01):
There's been nothing from the government to say, hey, guess
what I mean, Dwight. I want you to share with
the audience what you told me a few weeks ago
about some of the housing tracks that you visit and
you know, basically you're seeing tumbleweeds roll across the front yard.
Speaker 2 (17:13):
Yeah, John, And it's been the opposite to what you're
just saying. Right, They've increased loan level price adjustments, they
got rid of non permanent resident alien loans. I mean,
they're doing things.
Speaker 1 (17:23):
To actually negative things.
Speaker 2 (17:25):
Yeah, exactly. But to your point, you go out there,
there's huge incentives. Corey knows this. There's huge incentives going on,
and still they can't get the borrower in, you know,
the buyer, and you know, I guess they're coming around,
but they're just coming around leaving, So you don't know
what it's you can't really put your hands on what
(17:46):
they're doing. Are they shot, are they looking for furniture?
They look at what what are they doing? Because they're
not going into contracts. So and this doesn't help it.
This absolutely does not help it at all.
Speaker 1 (17:56):
I've got to point out of that. But I want
to hear Corey's opinion first.
Speaker 3 (17:59):
I agree, Yeah, I think I don't know what they
would do. I guess this is my thing. They've been
pushing power, which obviously in April they can have their wish,
they can try to lower interest rates, but you have
to me, you have to take this thing on a
global aspect, with the illegal immigration, with people going out,
that hurts the costs. I'm not saying that they should
do anything different, but it does increase the costs. They've
(18:20):
come out to FHFA and Trump has said, hey, put
pressure on the builders. They've got millions of acres they
need to start building houses. That's super easy to say,
but these companies aren't going to start losing money. You know.
The last thing the builders want is a ton of
houses on the market because it brings prices down, do
you know what I mean. So it's a very hard thing.
(18:41):
The only we've talked about it on the show multiple times,
the only other way you could kind of goose things
if you wanted to. Because they can't get down in
the municipality. They can't change the permits, they can't do
all of that. They can change some of the tax
laws around it. When we talked about when you sell
the house, you've got no capital gains, no matter what,
I still do believe that they're way since they controlled
(19:01):
ninety five percent of the mortgages, that they could let
somebody take their three percent mortgage to a new property.
I mean it, you know, easy for me to say,
but I'm sure they could get it done if they
had to. Like there are things to do, and but
things are flying high right now, Like they don't have
a whole lot of as an administration, they don't have
a whole lot of economic problems at the moment. So
(19:24):
I don't think they ignore the industry. But it's like, well, hey,
everything's going down pretty good.
Speaker 1 (19:29):
So well it's not going good though, I mean, it's.
Speaker 3 (19:31):
I totally agree with you, yes, slowing down.
Speaker 1 (19:33):
I mean, all right, so let me let me give
you an outsider's perspective. I want to go back to
one point you made, and I'm going to give you
a fresh one. Let's go back to when you're saying,
you know what can they really do? You mentioned about
the you know, no capital gains on the sale of
your primary home. Well, let's stop and think about this, guys.
How many companies, after the eight oh nine crisis and
the other various crisis that we've experienced since that time period,
(19:54):
how many companies, all of a sudden are now publicly
traded companies going out and gobbling up hundreds of thousands
of homes that removed them out of the inventory of
this country. Right, quarry, right, we got you know all.
They're now publicly traded. They they did exactly as you
said when they started gobbling these things up. They took
them all, turned it into a publicly traded company and boom.
But they're off the market. That's those houses are off
(20:15):
the market. What if you came back as the government said, hey,
you know what, We're gonna give an incentive for whatever,
I don't know, one year for anybody that owns investment
property that a five percent capital gains rate, no depreciation
recapture or ten percent. Something that is significantly lower than now.
Do you not think these people that have all the
equity built up in these homes would turn around and
(20:35):
sell them and either say, great, you know I'm no
longer a landlord, or I'm going to move to something else.
I think it's gonna be the first scenario. And think
of the amount of inventory that would open up, which
would then put uh uh pressure on prices and everybody
would come down.
Speaker 3 (20:50):
So it's a delicate balance too though, because remember, when
you push prices down, you're gonna pass off all the
people that known houses. So there's there's no there's no
clear way to please everybody in this.
Speaker 2 (21:04):
And Johnny, you get more bang for your buck with
rate interest rate buydowns, rates being down than ten twenty
thousand off your house. You just you get. So the
reduction of home prices is temporary and it's it helps,
but it's not long. It won't sustain. You've got to
get the rates down. You gotta get that.
Speaker 1 (21:22):
I don't know if you do or not. And this
is where I want to disagree very quickly. I think
based upon what I witness and talk about every single day,
which is publicly traded companies releasing the earning numbers, and
I'm going to go back and pick on CMG, Chipoti, Chipotle,
Mexican Grow. I am seeing it over and over and
over again. Guys in this earning season, consumer oriented type
(21:42):
of companies like a restaurant, et cetera. They are hurting.
They are the only ones make really making stellar money
right now. Is something tech related, AI, et cetera. Everybody
else they're struggling right now. Why because the consumer is
stretched so absolutely thin. So I think you could come
down to maybe a three three percent mortgage. And I
don't know if you see a substantial, substantial increase in
(22:05):
new home sales, because you think about it. If you're
a worker, right you and I the three of us
had a long discussion after the show on Tuesday. If
you and I are a worker somewhere, especially in the
tech industry or somewhere else that you know, you're making
one hundred thousand plus, which doesn't go far these days,
you're worried about losing your job to AI, you're losing
worried about losing your job because you wake up one
day like Amazon doesn't goes and they admit it and
(22:27):
their earnings call today, we didn't really lay off those
thousands of people the other day because of AI, we
just kind of downsized, and you're hearing it a lot
from companies, whether it's an excuse or not. We're over
Amazon matter of fact said it the other day. We're
over beloaded. We way over higher during the COVID and
now we're rating ourselves of those excess employees. I don't
(22:47):
buy that, BS, because look at you're a pretty bad
manager or CEO if here we are, what are we
three years out of COVID and you're just now realizing
that your payrolls over beloaded. So I think that's an excuse.
I think it's a lie, you know, blatantly. But I
think that's the issue, guys, is the consumer is fearful
of his or her job and again the rising cost
(23:08):
of everything. So now they're going I don't really even
if rates are lower, I can't go for my existing
twenty five hundred dollars a month mortgage. I don't feel
comfortable going to a new home, bigger home for thirty
two hundred a month or thirty five hundred a month.
Before people are like, you know how to pick up
an overtime shift, no problem, But I just from what
I'm seeing with these companies releasing the Ernie's numbers anything
consumer oriented. These companies are struggling, and in.
Speaker 2 (23:30):
The meantime, John They've added, They've added credit card debt.
Speaker 1 (23:33):
The credit card look at the buy now, pay later companies.
Their default rates are rising, auto loans are going through
the roof. There was a fascinating article I'm sure you
saw at Corey in the Wall Street Journal the other
day about the repos the repo man. You see that.
I mean, these guys are like, we can't keep up
with a demand because people are defaulting so bad on
their car payments right now. I mean, those are all
(23:54):
signs at the consumer. So that's why, again just my
outsider's view, I think, whatever the answer is, we don't have
time to go through it today, that some type of
relief needs to come to the consumer. And I think
that's when you would see this real estate market serge.
Other than that, I am just not convinced that that
lower rates are really gonna make a significant difference. You
get some people off the fence, but to really turn
this thing around and you know, get it moving from
(24:16):
bottom left to upper right on the chart, I think
the consumer needs some type of help in some way.
All right, we come back. We'll get into our topic,
how to turn home equity in a retirement cast follow,
but first, Jack Saban has news traffic on weather Jack.
Welcome back to the John Sanchez Show on Newstalk seven eighty.
Ko Waight with Corey's vigility to wipe the Lord of
Highlands Morganes once again a one ten decline on the
(24:37):
data naszack down three seventy seven SMP lower by sixty eight.
All right, let's get to our topic that we started
on Tuesday, how to turn home equity into retirement income.
All right, boys, I'm going to have you go fast
on the three points that we covered because folks, you
can always go back to and listen to our podcast
and hear in more detail. But let's go to point
(24:57):
number one. Corey helock versus I'm sorry, Dwight. Yeah, helock
versus No, it was you, Corey. I'm sorry because the
reom will meek overside helock for cash flow projects.
Speaker 3 (25:07):
Yeah, We've talked about this a lot. You can, if
you have the equity, you can go get a helock.
Talk to Dwight. You don't have to use it. We
talked about having it just for safety and emergencies, but
it's it'll always be there if you want to use it.
You can take the money and invest in some rental properties,
fixing up some something else that will create cash flow
for you. So a lot of different options there. Yeah,
(25:28):
use John.
Speaker 2 (25:29):
It's important to point out on that, you know, it's
a it's typically a ten year draw period, so it's
interesting only keeps that payment way low. And again you
only pay on what you are borrowing. You pay it back,
you got zero. It's just a nice little I mean,
you are a very big advocate for the right person
to have this little to have this little you know,
safety net, and why not for a maintenance fee of
(25:50):
one hundred bucks a year.
Speaker 1 (25:51):
Yeah, I would like referring to is. We always recommend
to our clients that you know, they look at us
kind of cross sits sometimes when they work so hard
to get their house paid off and then they go
into retirement. Before they go into retirement, I recommend they
get a helock and I go, wait a minute here,
I just got the house paid off. I don't want
any more debt. No, it's not debt unless you need it.
But again it's easier to qualify when you're still working.
And number two, as Dwight said, it's emergency money, all right,
(26:12):
it's going to number two Dwight cash out refinance for stability. Yeah.
Speaker 2 (26:15):
That used to be the old trustee one when race
were stable and all that. But all it is is
instead of doing a helock, you're just doing a cash
out refinance. You know, you know what your payment is,
it's predictable, it's going to be amortized over a certain
period of time, and so it just uh, you know,
it gives you a little more safety there, you know.
Speaker 1 (26:33):
A great detail. I don't have time to go with
a great detail. But what's the percentage again?
Speaker 2 (26:38):
Loan to value for eighty percent cash out?
Speaker 1 (26:42):
Perfect? All right? And with rates starting to decline, could
be a little bit more attractive Dwight hopefully.
Speaker 2 (26:51):
Yeah, I think so. You know, the major ones are
debt consolidation, education, medical bills, things like home improvements. So,
you know, especially if it gets to be a large number,
you've got that type equity. Why not why not tap
into it rather than you know, spend all your cash.
Speaker 1 (27:06):
Absolutely, and again as a cautionary note, do not do not,
do not do any of these things we're talking about
without consulting your CPA, if you have a financial advisor,
et cetera. Because again there's tax ramifications and different things
you need to be aware of. All right, Corey number three,
downsize and invest the difference. I can't see ye again.
Speaker 3 (27:25):
Yeah, most of a lot of the people we're gearing
towards right now have probably lost the spouse, have a
big house, the family's gone. So think about downsizing if
you don't need all your space, and you can downsize,
get into either purchasing a smaller house or renting a
smaller house, which is what we talked about a lot
on Tuesday. Then you can take the difference and go
(27:46):
to somebody like John who can invest it for you,
and you can just kind of sit back. You know
it's safe, you know that it's going to come every month.
You don't have to worry about it. Or you can
take that money set. I've always wanted to be a
lamb the here I'm eighty years old. I would to
be a landlord. So go buy your first rental and
get some cash flow that way. But it's just it's
just an easy way, hey, to take some of the
(28:08):
load off of you from the big house you have
now and then also create cashul at the same time.
Speaker 1 (28:13):
Very good, excellent, All right, Dwight, you touched on number
four reverse mortgage income strategy.
Speaker 2 (28:18):
I love it. Take an expense and turn it into
an income. Right, So this is for borrowers sixty two
or older. Obviously the older you are, the algorithm is
more favorable to the amount of money you can either
take out monthly or you take you can take out
as a lump sum. So all it's doing is it's
taking your equity and rather than paying a forward forward mortgage.
(28:39):
So for example, if you've got a mortgage you're paying
one thousand dollars a month P and I, and you've
got enough equity in you of age, you can switch
that around, not have a payment and actually receive monthly
income off of it or a lump sum. Again, it's
all drived or it's all driven by your age and
the interest rates. So with the interesting it's coming down
it's be a lot more favorable.
Speaker 1 (29:01):
Of a product. Perfect and as we said on Tuesday,
that's one of the risks of that. You know, some
of the complaints. Again, very expensive to do these, so
have a thorough understanding. But also I've seen this, and
the boys have seen this. If you love your kids
and they think they're going to get some of your equity,
make sure you talk to them ahead of time. I've
seen more family disruptions when mom and dad died and
(29:22):
there's a reverse mortgage and they didn't tell the kids,
and it's kind of challenging for that at that point.
So definitely, all right, mister Ede, Let's go back to
you at number five, fresh fresh new point here accessory
dwelling units. The ad US turn that unused land or
a garage, whatever it is, into a rental engin. Again.
I love this point you brought up because once again,
as you mentioned the other day, Reno is in the
(29:43):
midst of approving ADUs for certain areas, et cetera. So
I think we could see this one really start to
take off.
Speaker 3 (29:49):
Yeah, and it probably will take off. These are very
popular all over the place right now, kind of all
over the West coast. California has been doing them for
a while. But here in Reno again, I don't think
they've got the final final stamp of approval on it,
but it's coming. I don't know all the ins and outs,
But essentially it's going to allow you to take your
you know, beautiful house on the half acre and you
(30:11):
haven't used your sideyard in twenty years and potentially build
a little attached or detached structure on that sideyard. They're
going to have. It's gonna have its own sewerd, it's
going to have its own stuff, basically, its own set aside,
almost like a duplex. And do it legally right now,
you right now, John, with the zoning, you couldn't do it.
(30:32):
What the ad you will allow you to do is
do it regardless of the zoning. And as far as
I know, again the restrictions aren't iron claud yet, but
as far as I know, there will not be restrictions on.
It could be for your mother in law, it could
be for a tenant that's going to pay. It could
be a short term rental. I'm sure they're going to
iron out some of those. But it could house somebody
(30:56):
for you that you're paying the house. Right now, I'm
thinking of older parents, so instead of you showing out
five grand a month to have them somewhere that can
be with you, which creates better cash for you. Or
you can take that unit and rent it out to
somebody and create cash flow that way.
Speaker 1 (31:11):
So I am seeing more and more of my clients
guys over the years exactly what you just said, Corey.
They're doing this with their adult children, you know, whether
it's already there or they have to build one, you know,
an ADU unit. And folks, we're not talking like a
little you know, home home depot, a little wood shack
that you put your tools, and we're talking yeah, fairly nice, right,
(31:32):
I mean, whatever you're gonna spind off, but you know, kitchen.
Speaker 2 (31:35):
All right, Corey, real quick, I got a question on
those ad us. Is there going to be restriction? Can
you short term rental those?
Speaker 3 (31:42):
So from what I'm hearing right now, there's still they're
still deciding on that question. But the way they're going is, yes,
you can short term mental then, but you have to
have the short term mental license, so it won't be
a free for all. They still have to know you're
doing it. But as you meant, Jee's.
Speaker 1 (32:00):
Down that type of thing.
Speaker 3 (32:01):
Yeah, yeah, and they want you to be licensed. They
want to make sure there's enough parking in the neighborhood.
They want to make sure the neighborhoods okay, and as
you were talking about, yeah, I think again, So this
isn't iron Clay yet. I think it's a minimum eight
hundred square feet. Obviously, has to have a kitchen, has
to have a bathroom. Like these aren't something I was
going to say, you order off Amazon, but they do
sell some pretty nice units, so not something you're going
(32:21):
to go buy down the street. These will be very
nice units.
Speaker 1 (32:25):
Where As I said out of the home depot parking
lot right the toolship, that's a lot of people think
that he's like eighty is.
Speaker 3 (32:30):
Yeah, yeah, no, it'll be it'll be interesting.
Speaker 1 (32:32):
Yeah, all right, we come back. We're gonna hit point
sixty seven and eight equity partnering for rentals, ten thirty
one taxi for exchanges and then sell rent cheap and
invest smart. To wrap it up with Corey Indowite, it's
turned over to Kristin Snow right now traffic Center. Kristen,
Welcome back to the John Sanchez Show on News Talk
seven eighty k which mister edge your phone number.
Speaker 3 (32:54):
Sir six seven three six seven zero zero.
Speaker 1 (32:57):
Beautiful? All right? Do I head to you westout to
an event, so we will continue down our list here again,
how to turn your home equity into retirement income. All right,
we touched on the ADUs. Now, Corey, this is something
I know you've had experience in and currently do equity
equity equity partnering in investment properties.
Speaker 3 (33:18):
Yeah, and so if you have never been a landlord
or never invested that way, but it's something you want
to do, but you don't want to, you know, go
through the thirty years of learning or whatnot. There the
easiest way to do it is to partner with somebody
who's already done it. And I say it, you know,
kind of all different ways. If you know somebody who's
very versed in it, then you could come in and say, well,
(33:41):
I have the money, if you know what you're doing,
let's partner and go do it. You could try to
buy into an existing partnership that's already running. And as
weird as that sounds, you know, you could go anywhere
around this town and you see big shopping centers or whatnot,
more than likely there's multiple partners in there, and every
once in a while one of them has to sell
out or a family has to. So I've been involved
(34:01):
when somebody in the partnership dies. So in a state
is selling their portion of the partnership. So there's all
different ways you could do it. But if you want
to be the if you want to invest in real
estate but you don't have the knowledge, but now you
have this orough money or enough cash, well now we
can get you the cash and you just go out
and do it via the partnership.
Speaker 1 (34:22):
And for those of you that maybe knew listening to
the show, this is exactly how Corey got started twenty
five plus years ago in real estate. Right, you went
to somebody with money, you go, hey, I got a
great deal, and that's how you kind of got your start.
Speaker 3 (34:35):
Yeah, I mean it's it's even the stuff that we
did just a few years ago. It's there's always there.
In my experience in a partnership, there's always the people
that are boots on the ground, know the stuff, find
the deal, polish it. And then there's the people that
have the money that say, hey, I don't want to
do all that to me, that's boring, but I have
a ton of money and i'd like to invest, you know,
(34:57):
And so they and they make good partners right. There's
always those two things.
Speaker 1 (35:01):
So obviously when you're talking partnerships, make sure you have
an attorney involved, drop the primary partnership agreements and the
way the property is going to be titled and held,
and there's a lot to that, but yeah, what a
great strategy, all right. Number seven, the ten thirty one
text defer at exchange. Again, this is more I can't
do this on your primary home, but of course any
rental property you can. We did a show on this
a few weeks ago. Pick up the podcast to hear
(35:23):
the details. But again, this is where you're selling an
investment property for light kind. Property does not mean you
need to go from a single family to another single family.
It's basically investment to an investment and again by doing so,
you're deferring the capital gains, depreciation, recapture, et cetera. Again,
just a great way to move into real estate. Maybe
you've got a piece of land that's not producing cash flow.
(35:45):
You're like, hey, you know what, I can go buy
that rental and you know, you sell your land for
six hundred thousand and you go buy a rental for
six hundred and five thousand. No capital gains on that deal,
and now you got it into a cash flow producing asset.
So excellent strategy there. The Corey number eight, Sell rent
cheap and invest smart.
Speaker 3 (36:05):
Yeah, and we talked about this a little bit on Tuesday.
But you have the big house, you don't need the
whole thing anymore. You've got a bunch of equity. So
if you don't want to pull it out, if you're
just more interested in selling it, then sell it. Go
find a good rental. You have the right to do that.
You don't have to own something and invest it smart.
And again, it can be hands on investment like real estate.
It can be hands off, like going to yourself or
(36:28):
a financial person to say, hey, you know, I want
to be something safe, but I want to check every
month and I just kind of want to know how
much that check is going to be. And then it'll
pay my rent and it'll pay my you know, traveling
to Europe every two months, and it'll pay all my
stuff and then you don't have to worry about it.
That I say to everybody, and you if I talked you,
and I've talked about it, like there's a price for
peace of mind. And I don't know what the value is,
(36:50):
but it's an incredible value to not have to worry
about stuff, Like it's priceless so it is.
Speaker 1 (36:57):
It is, and many times from a health standpoint, you know,
people need to kind of or their body. I hear
this all the time from clients. You know, I'm sitting
on a couple acres, it's all landscape a. I'm tired
of paying the gardener, you know, one thousand dollars a
month to maintain it and a five hundred dollars water
bill in the summertime. I want to be able to
lock my door and walk away for a week, two weeks,
whatever it is, and come back and not have a worry.
(37:17):
That's where renting or downsize would definitely come into play.
And like you said, Corey, taking that equity and using
it for something else. Just remember, folks, in this whole strategy,
what's the common denominator. It's producing cash flow. So if
you have an underutilized asset, whether it's real estate or not,
just look at creative ways that you can turn it
into a cash flow producing asset for you and you're
ahead of the game there. All right, We did a Corey,
(37:40):
great job. As always, thank you everybody for joining us.
We do appreciate it. We'll do it again tomorrow on
The John Sanchez Show. God blessed and have a great afternoon.
Twink Mallar n MLSID number two four one two five
nine a license mortgage Loan officer with Highlands Residential Mortgage
Limited and Equal Housing Lender and MLS ID number one
(38:00):
three four eight seven one. The information shared on this
live broadcast is for general information purposes only and does
not constitute financial or mortgage advice. Listeners should consult directly
with a license mortgage professional for guidance tailored to their
specific situation. All loans are subject to credit approval and
program guidelines. Not all applicants will qualify. Loan terms in
(38:21):
availability may vary by state and are subject to change
without notice. Highlands Residential Mortgage Limited is licensed in multiple states.
For a full list of state licenses and disclosures, please
visit https slash slash www dot Highlandsmortgage dot com backslash
licenses backslash. The views expressed during this program are their
own and do not necessarily reflect those of Highlands Residential
(38:44):
Mortgage Limited.
Good Thursday afternoons. You welcome to the John Sanchez Show,
one News Talk seven eighty. Can't wait. It's a pleasure
to be with you and a pleasure to be with
my Tuesday and Thursday co host. We'll go around the
horn or we're actually waiting for mister Edge to be
joining us in just a moment. We do have mister
Millard Dwight Millard Hyland's mortgage. How are you, my friend.
Speaker 2 (00:21):
I'm doing fantastic, John, how are you.
Speaker 1 (00:24):
I feel bad for you, brother.
Speaker 2 (00:26):
We predicted it. We predicted it.
Speaker 1 (00:29):
Yep, come right out of the gate and just tell
you I feel bad for you with these thirty year
mortgage rates moving up after a FED interest straight cut
and like you said, exactly what we predicted would happen. Yeah, yeah,
I don't know what else to say about it. It's
it's a it's a tough situation. It's got I have
you been fielding calls for people like.
Speaker 2 (00:50):
Absolutely, absolutely absolutely, you know, then they're basically saying, hey,
the FEDS did this. You know what the rates? I
heard the rates are yeah, yeah, yeah. So it's it's
a difficult situation to try to explain to people. But
you know, we've been here before several times. When the Feds,
you know, go back a year ago.
Speaker 1 (01:06):
You know, you know what what what frustrates me? There
was a lot of things yesterday, not so much on
the FED side. Well, i'll say on the FED side,
a lot of things frustrated me yesterday. But but because
you we covered it on the show yesterday, Jason, I
think you're up with thirteen basis points yesterday on the
thirty mortgage.
Speaker 3 (01:25):
Yeah right, yeah.
Speaker 1 (01:26):
So let's just jump right into it, up another six
basis points today. You're now at six thirty three. Right.
All that momentum you had going down for so many
months all completely reversed. Yes, and again I think you
know what. What happened a couple of different things. Number
one is Chairman Pal yesterday indicated they're going to let
the balance sheet continue to run off. They're going to
(01:49):
take some of the pros on the mortgage backed security side,
and that's why we were talking about you on the
show yesterday. And then of course the other other things.
They're there when those boonds come to they're taking it
and they're buying short term treasuries with it right to
drive down the shorter end of the curve, well shorter
end of the curve. The two years that didn't do
you any good, right, you focus on you know, Jenny
May's Fanny maze, and of course what the ten years doing.
(02:11):
So his move yesterday did nothing with this new runoff
of the balance sheet or I should say new, but
in addition did nothing for mortgage rates. He even talked
about the struggle that housing markets going in. And then
of course his other great comment, which was it's not
a foregone conclusion that we're gonna get an interro straight
cut in December. In the street, you know, panicked on that, like, really, guys,
(02:33):
what do you what do you think he's gonna say.
He's not gonna come out, right, Corey. Corey just joined us.
Powell's never going to come out and go, oh hey,
guess what. Yeah, just preparing everybody for a you know,
we're gonna give you an interes straight cut in December.
He always says that, but again, the momentum is on
the downside. They're not going to pause in December going
into a brand new year. There's no way. But yeah,
(02:54):
everybody panicked on that, so good.
Speaker 3 (02:58):
Quicker I was just gonna say he said, not only
is it not, We're gone, it's not even close. You're right,
they are going to punts.
Speaker 1 (03:09):
Yeah, yeah, Corey, I think we still have a little
bit of technical problem with you. I'm just kind of
hearing every few words. If I could get you to
jump out of the room and come back in, that's
if we can get a little bit better connection from me.
Thank you, buddy. All right, Well, with that said, we'll
talk more about the mortgage rates here in just a second.
Let me tell you what we have lined up for
you this afternoon with Corey and Dwight. So you know Tuesday,
(03:30):
if you joined the show, we went into a really
important topic that's going on right now, and that is
this how to turn home equity into retirement cash flow.
And as usual, we only got through just a few
of our points, and so we promised you on Tuesday
that we're going to wrap up these points today. But
you know, as the boys went on to say Tuesday,
how great timing of the subject it really was, because
(03:53):
we have a lot of things going on, folks. Number One,
for those of us that are the baby boomers, right,
there's this great wealth transfer. What's the number, Dwight that
we went over at thirteen plus trillion dollars of money
that's going to be transferred from you know, our generation
Dwight over to the younger generation. And I don't remember
the exact number, but I think it was three or
four trillion of that is just in real estate equity alone.
(04:17):
So this is going to be happening, folks. But in
the meantime, you're sitting on this equity, hopefully, what do
you do with it? Especially if you're a retireing and
you're going, hey, wait a minute here, you know, things
are getting a little bit expensive. What do I do?
I mean, I just had a conversation with my son
this morning and he goes, Dad, and I won't name
the name of this convenience store slash truck stop stop,
(04:41):
but he said, you know, I stopped and I got
a breakfast burrito this morning and he said it was
twelve dollars and I said, I haven't bought one there
and I can't tell you probably two or three years
and I used to pay about four dollars. And you know,
I mean, everything is going to be more expensive. And
when you're a retireing and of course you're on a
fixed income, you feel it more than some of that
is still working. So you know, that's why we're going
(05:02):
to go into this topic, which again is how to
turn this this equity that you have in the right situations.
And you know, again, we're not gonna be talking if
if if you think we're gonna be telling you to
go take your equity out and and you know, go
buy a boat or go buy a quad or something
fun like that. No, that's not it. We're talking about
taking this this equity that's not doing much for you
and turning it into something that's going to generate cash flow. Again,
(05:25):
if you're a retiree, even if you're not a retiree,
and you know again you're looking to run the numbers
and contact Corey and say, okay, you know I just
pulled out whatever do I just gave me a loan
for three hundred thousand helock. Let's go find a you know,
an investment proper. Let's use it as a down payment
or go find something that'll produce cash flow. Right, that's
the goal of it. So again, we only got through
a few points. Well, recap what we cover it on
(05:46):
Tuesday and then get into our fresh points. All right,
mister Edge nice. I'm glad that you could join us.
Any points that you want to add so far what
you're saying.
Speaker 3 (05:54):
No, No, I was just gonna say I thought he
was fairly adam I don't want to say adamant of
no rate cut into December, but he seemed more stern
this time about.
Speaker 1 (06:03):
He did seem more stern. I agree completely. I agree completely. Yeah,
he didn't seem to be one of his better moves
that he's been in these last couple FED meetings. But
you know we will see obviously no FED meeting in November.
It'll all be about the December one as we wrap
up the year then and go with it.
Speaker 2 (06:19):
John, Almost John, it almost goes to show you how
much the market was preparing for a December rate cut
whither by the knee jerk reaction when he said, oh,
I'm not sure this is going to happen, right, That's
what I was warning people. I think they've baked in
at least December, if not even changing.
Speaker 1 (06:38):
A couple times next year. Yeah, exactly. And you know
we said the same thing on the show yesterday toight
Wall Street's a bunch of spoiled brats. They don't get
what they want, they vote with their finger, meaning they
hit the sell button and in the bailout and they're
like okay, you know, and we saw it with the
other frustrating part yesterday, which was Microsoft and Meta, which
reported stellar numbers, but they had a couple of little
unusual charges and they beat the heck out of the
(07:00):
companies yesterday and drove the market down, you know, yesterday
from it's highs. You know, it finished down just a
little over seventy yesterday. But well, it was a it
was a tough one today.
Speaker 2 (07:09):
You know.
Speaker 1 (07:09):
We had a two hundred point loss on the or Suing,
one hundred and ten point loss on the Dow, down
three seventy seven, one point five seven percent on the
NASDAK and a point nine to nine percent declining on
the sm P five hundred down sixty eight points. But guys,
you know, I'm just going to jump right into the
stock market review. It was a it was a tough
day to day from excuse me, from a lot of
(07:29):
different standpoints. And what was frustrating is they didn't the
buyers did not, or I should say, the algorithms did
not step in today whatsoever. And uh uh, you know,
come and start nibbling away at Microsoft and Meta and
you know those type of companies like I was saying,
and so that was kind of interesting. But don't lose hope.
(07:50):
I have some very good news for you as to
far as what's happened in the after hour. So let
me get right to that and then we can start
moving through the rest of the thing. So here's how
those two aforementioned names performed today. So we had Meta
down eighty five dollars and twenty cents eleven point three
to three percent loss to six hundred and sixty six
dollars and forty seven cents. Okay, now the reason again,
(08:12):
great numbers for the previous quarter. But what Meta said
was we're going to take a fifteen point nine to
three billion dollar non cash income tax charge. That's all
they said. They didn't go through any explanation. So I've
dug a little bit deeper into this because i want
to see what exactly is this. So the company did
say that it stems from the one big beautiful tax bill.
(08:34):
Right now, what Meta did? It required Meta to record
a valuation allowance, which is basically, in Layman's terms, a
write down against some of its deferred tax assets in
the US. The company emphasized that this is a one
time accounting adjustment, not an outflow of cash, and that
(08:54):
it actually expects lower US federal cash tax payments going forward.
So Corey, you're a numbers guy, you know, Okay, to me,
after I researched this, I'm like, because again, yesterday, that's
all they told us. Then and then finally today. You know,
like I said, I did some digging. It's basically like
when we give a tax return to Dwight and we say, okay,
you know, we made a half a million dollars, but
(09:16):
I only had to pay income tax on one hundred
thousand because I had four hundred thousand dollars worth of depreciation.
I'm not a bad guy, right, I mean, I still
have the income and everything. But it was a phantom expense.
And that's what this was. It was basically a phantom expense.
It was just a one time right down and like
they said, thanks to the big beautiful tax bill, things
(09:36):
are going to be great going forward. But we had
to take this one charge against taxifer an assets. It
made no sense, made no sense. Up, we lost Corey's volume. No, sorry, Corey, Yeah,
we can't hear you all right, Yeah, he'll jump out,
get back in here a second. And then the other
one Microsoft again, great earnings numbers haven't formidded. The company said, hey,
(09:58):
you know, we're gonna improve our CAPEX spending capital expenditure
spending into AI. And the street punished him for that one.
So Microsoft today was down fifteen dollars and seventy seven cents,
two point ninety one percent lost to five twenty five
seventy eight. Tesla was another drag, down twenty one dollars
and forty one cents. Chipotle another one. They said, hey,
(10:18):
guess what people are coming in? And I made a
joke this morning on the stock up dates. I said, yeah,
when you offer a you know, a little bit of chicken,
some rices from guacamole, and you charge fifteen dollars, no surprise,
I never go out to eat. I was joking. My
wife and I went and went to one the other
day and yeah, it came out and I said, you know,
we got that two chicken bowls and I said how
(10:40):
much would it come to? And she said it was
like forty four dollars. What what are you talking about? Like, yeah,
it's like a little over fifteen dollars each and then
I think she got some chips and something else, and like,
so we don't go out dat like that. Who the
hell didn't afford that anymore? You know? eBay was down
fifteen dollars and eighty one cents eighty three seventy three.
All right, enough of that. Now, I've got some good
(11:00):
news that I'm going to share with you when you
come back. We have some bigger news numbers out of Apple,
bigger news numbers out of Amazon, and I've got some also,
some great news on Netflix. So we'll do that, and
then we're going to get into our topic, how to
turn a home equity into a retirement cash flow. Let's
turn it over to Christen snow right now Traffic Center. Hello, Kristen,
(11:23):
Welcome back to the John Sanchez Show on News Talk
seven to eighty KO wait to the Corey Age of
Vidrility to WHI Millard of Highlands Mortgage. Once again, we
finished down one o nine on the Dow, the Nazek
lost three seventy seven and lower by sixty eight on
the S and P five hundred. I want to go
back real quick, guys, before I get to this after
hours movement of Apple and Amazon and Netflix did a
little bit of further digging ury in their break, And
I want to go back to this non cash income
(11:46):
tax change again announced by Meta that again just significantly
pressure the stock today. So you two as business owners
and myself, we understand this. So what they actually did
a little bit further here is they acknowledged that some
of their tax deferred assets. Okay, so essentially what these
are tax deferred assets in English, this is credits or
(12:07):
losses they had on the book. They were going to
use those to offset like we all do taxes, right,
losses offset gains dollar for a dollar. But because of
something in the in the new tax bill, they may
no longer be able to do that. So they reduced
their reported net income today even though the operating cash
flow has not changed whatsoever. So again it was just
(12:28):
like a one time ride off has nothing to do again,
great earnings numbers, et cetera. So all right, with that set,
let's get into these after hours numbers. Then we'll get
into our topic, how to turn home equity into retirement income.
So I want to mention Netflix, all right, So here's
what's going on, guys, regular sessions stock finished down eleven
dollars and forty one cents. That was a one point
zero four percent loss to one thousand and eighty nine
(12:48):
a share. Right now, in the after hours, it's up
forty dollars and fifty three cents, three point seventy two
percent to one and twenty nine dollars and fifty three cents.
Why is the stock moving up with the company announced
a ten for one stock split, which again will make
their shares more affordable, of course, going on. Now, here's
what you got to do if you want to be
(13:08):
a part of the stock split. Doesn't make any difference
if you're before or after, but if you want to
be a part of it, you need to be a
shareholder as of November the tenth. The allocation of the
you know, additional nine shares that you will get will
occur on November the fourteenth, and it will trade post
split on November the seventeenth. So big big news there
(13:29):
on on Netflix. All right, that one's out of the way.
Let's go to the next big mover going on in
the after our session, and that's our friends over at Amazon.
Regular session stock was down seven dollars and forty four cents.
Three point two three percent loss to two hundred and
twenty two dollars and eighty six cents. Right now in
the after our session up thirty or excuse me, twenty
nine dollars and fifty four cents, a thirteen point twenty
(13:50):
five percent gain to two hundred and fifty two dollars
and forty cents. Company reported after the closes, I said
strong growth in the cloud competing business. They made a
buck ninety five. Estimates were a dollar fifty seven per share.
Revenue came in at one hundred and eighty point one
seven billion estimates one seventy seven point seventy five billion,
So a nice big beat there. And remember Amazon's part
(14:12):
of the doll as is Apple. What happens? What's going
on with Apple? Dollars seventy gain in regular session point
sixty three percent to two seventy one forty Right now
in the after hours, it's up seven dollars and sixty
one cents, a two point eight percent gain to two
seventy nine oh one. iPhone makers said that basically they're
given the street a really strong forecast for the December quarter.
(14:35):
They're seeing extremely strong demand for the iPhone seventeen. As
far as the previous quarter, they made excuse me, they
made a dollar eighty five a share. Estimates were a
dollar seventy seven. Revenue came in at one oh two
point four seven billion dollars just for the quarter, and
analysts were looking for one hundred and two point twenty
four billion. So nice beat across the board. Nice outlook,
(14:56):
that's exactly what you want. And so that should definitely
be helping the company out on the pre market and
contribute to some pre market games in the futures, which
again just started trading a little while ago, but they're
budging up a little bit now, futures up forty now's
that futures are up two hundred and eighty nine, so
almost wipe out the game if the hole or the
(15:16):
loss of today should say and the SMP futures are
up forty one, so this should, like I said, pull
us out of this funk that yeah, everybody went into
yesterday after your friend mister Polladway.
Speaker 2 (15:27):
Do you want to cover rates real quick.
Speaker 1 (15:29):
John, Yeah, let's let's jump into it. Let's do it.
A four basis point increase on the tenure today four
oh nine. Take it from there.
Speaker 2 (15:34):
Four oh nine. Okay, John, So if you remember back
on Tuesday, we were six point one three. Okay, we
are six point three three today. Twenty basis point increase
in just two days. That's huge, that's huge movement.
Speaker 3 (15:50):
Yeah.
Speaker 2 (15:51):
Yeah, just about a quarter percent. And it does I mean,
it doesn't look like it's any going to be any
better tomorrow, basically going on Friday, a weekend, so I mean,
here we go again. And you know, I guess you're
damned if you danned them. If you don't, I don't
know what I mean. I know he was kind of
hawkish on December, but boy, it's just going to continue
to drive buyers away. I'm just surprised at how I'm
(16:15):
not but I am surprised how slow it is out there.
Speaker 3 (16:18):
John.
Speaker 1 (16:18):
You know, you know, do I and Corey from an
outsider's perspective. Outsider meaning someone that's not in the real
estate industry day by day like you guys are. I'll
tell you my perspective, and I'd like to know if
you guys agree or disagree. Being in the industry, it
almost feels like to me that the Trump administration looks
at the real estate sector slash economy as a wicked
(16:39):
step child. It's like they know what's a problem going
on out there, but there has not been one darn
thing to my knowledge, that they have done to help
out the housing sector. Right. They obviously, you know, with
the FED situation going on, et cetera, that's you know,
quasi out of their control. But there's been no incentive program.
(17:01):
There's been nothing from the government to say, hey, guess
what I mean, Dwight. I want you to share with
the audience what you told me a few weeks ago
about some of the housing tracks that you visit and
you know, basically you're seeing tumbleweeds roll across the front yard.
Speaker 2 (17:13):
Yeah, John, And it's been the opposite to what you're
just saying. Right, They've increased loan level price adjustments, they
got rid of non permanent resident alien loans. I mean,
they're doing things.
Speaker 1 (17:23):
To actually negative things.
Speaker 2 (17:25):
Yeah, exactly. But to your point, you go out there,
there's huge incentives. Corey knows this. There's huge incentives going on,
and still they can't get the borrower in, you know,
the buyer, and you know, I guess they're coming around,
but they're just coming around leaving, So you don't know
what it's you can't really put your hands on what
(17:46):
they're doing. Are they shot, are they looking for furniture?
They look at what what are they doing? Because they're
not going into contracts. So and this doesn't help it.
This absolutely does not help it at all.
Speaker 1 (17:56):
I've got to point out of that. But I want
to hear Corey's opinion first.
Speaker 3 (17:59):
I agree, Yeah, I think I don't know what they
would do. I guess this is my thing. They've been
pushing power, which obviously in April they can have their wish,
they can try to lower interest rates, but you have
to me, you have to take this thing on a
global aspect, with the illegal immigration, with people going out,
that hurts the costs. I'm not saying that they should
do anything different, but it does increase the costs. They've
(18:20):
come out to FHFA and Trump has said, hey, put
pressure on the builders. They've got millions of acres they
need to start building houses. That's super easy to say,
but these companies aren't going to start losing money. You know.
The last thing the builders want is a ton of
houses on the market because it brings prices down, do
you know what I mean. So it's a very hard thing.
(18:41):
The only we've talked about it on the show multiple times,
the only other way you could kind of goose things
if you wanted to. Because they can't get down in
the municipality. They can't change the permits, they can't do
all of that. They can change some of the tax
laws around it. When we talked about when you sell
the house, you've got no capital gains, no matter what,
I still do believe that they're way since they controlled
(19:01):
ninety five percent of the mortgages, that they could let
somebody take their three percent mortgage to a new property.
I mean it, you know, easy for me to say,
but I'm sure they could get it done if they
had to. Like there are things to do, and but
things are flying high right now, Like they don't have
a whole lot of as an administration, they don't have
a whole lot of economic problems at the moment. So
(19:24):
I don't think they ignore the industry. But it's like, well, hey,
everything's going down pretty good.
Speaker 1 (19:29):
So well it's not going good though, I mean, it's.
Speaker 3 (19:31):
I totally agree with you, yes, slowing down.
Speaker 1 (19:33):
I mean, all right, so let me let me give
you an outsider's perspective. I want to go back to
one point you made, and I'm going to give you
a fresh one. Let's go back to when you're saying,
you know what can they really do? You mentioned about
the you know, no capital gains on the sale of
your primary home. Well, let's stop and think about this, guys.
How many companies, after the eight oh nine crisis and
the other various crisis that we've experienced since that time period,
(19:54):
how many companies, all of a sudden are now publicly
traded companies going out and gobbling up hundreds of thousands
of homes that removed them out of the inventory of
this country. Right, quarry, right, we got you know all.
They're now publicly traded. They they did exactly as you
said when they started gobbling these things up. They took
them all, turned it into a publicly traded company and boom.
But they're off the market. That's those houses are off
(20:15):
the market. What if you came back as the government said, hey,
you know what, We're gonna give an incentive for whatever,
I don't know, one year for anybody that owns investment
property that a five percent capital gains rate, no depreciation
recapture or ten percent. Something that is significantly lower than now.
Do you not think these people that have all the
equity built up in these homes would turn around and
(20:35):
sell them and either say, great, you know I'm no
longer a landlord, or I'm going to move to something else.
I think it's gonna be the first scenario. And think
of the amount of inventory that would open up, which
would then put uh uh pressure on prices and everybody
would come down.
Speaker 3 (20:50):
So it's a delicate balance too though, because remember, when
you push prices down, you're gonna pass off all the
people that known houses. So there's there's no there's no
clear way to please everybody in this.
Speaker 2 (21:04):
And Johnny, you get more bang for your buck with
rate interest rate buydowns, rates being down than ten twenty
thousand off your house. You just you get. So the
reduction of home prices is temporary and it's it helps,
but it's not long. It won't sustain. You've got to
get the rates down. You gotta get that.
Speaker 1 (21:22):
I don't know if you do or not. And this
is where I want to disagree very quickly. I think
based upon what I witness and talk about every single day,
which is publicly traded companies releasing the earning numbers, and
I'm going to go back and pick on CMG, Chipoti, Chipotle,
Mexican Grow. I am seeing it over and over and
over again. Guys in this earning season, consumer oriented type
(21:42):
of companies like a restaurant, et cetera. They are hurting.
They are the only ones make really making stellar money
right now. Is something tech related, AI, et cetera. Everybody
else they're struggling right now. Why because the consumer is
stretched so absolutely thin. So I think you could come
down to maybe a three three percent mortgage. And I
don't know if you see a substantial, substantial increase in
(22:05):
new home sales, because you think about it. If you're
a worker, right you and I the three of us
had a long discussion after the show on Tuesday. If
you and I are a worker somewhere, especially in the
tech industry or somewhere else that you know, you're making
one hundred thousand plus, which doesn't go far these days,
you're worried about losing your job to AI, you're losing
worried about losing your job because you wake up one
day like Amazon doesn't goes and they admit it and
(22:27):
their earnings call today, we didn't really lay off those
thousands of people the other day because of AI, we
just kind of downsized, and you're hearing it a lot
from companies, whether it's an excuse or not. We're over
Amazon matter of fact said it the other day. We're
over beloaded. We way over higher during the COVID and
now we're rating ourselves of those excess employees. I don't
(22:47):
buy that, BS, because look at you're a pretty bad
manager or CEO if here we are, what are we
three years out of COVID and you're just now realizing
that your payrolls over beloaded. So I think that's an excuse.
I think it's a lie, you know, blatantly. But I
think that's the issue, guys, is the consumer is fearful
of his or her job and again the rising cost
(23:08):
of everything. So now they're going I don't really even
if rates are lower, I can't go for my existing
twenty five hundred dollars a month mortgage. I don't feel
comfortable going to a new home, bigger home for thirty
two hundred a month or thirty five hundred a month.
Before people are like, you know how to pick up
an overtime shift, no problem, But I just from what
I'm seeing with these companies releasing the Ernie's numbers anything
consumer oriented. These companies are struggling, and in.
Speaker 2 (23:30):
The meantime, John They've added, They've added credit card debt.
Speaker 1 (23:33):
The credit card look at the buy now, pay later companies.
Their default rates are rising, auto loans are going through
the roof. There was a fascinating article I'm sure you
saw at Corey in the Wall Street Journal the other
day about the repos the repo man. You see that.
I mean, these guys are like, we can't keep up
with a demand because people are defaulting so bad on
their car payments right now. I mean, those are all
(23:54):
signs at the consumer. So that's why, again just my
outsider's view, I think, whatever the answer is, we don't have
time to go through it today, that some type of
relief needs to come to the consumer. And I think
that's when you would see this real estate market serge.
Other than that, I am just not convinced that that
lower rates are really gonna make a significant difference. You
get some people off the fence, but to really turn
this thing around and you know, get it moving from
(24:16):
bottom left to upper right on the chart, I think
the consumer needs some type of help in some way.
All right, we come back. We'll get into our topic,
how to turn home equity in a retirement cast follow,
but first, Jack Saban has news traffic on weather Jack.
Welcome back to the John Sanchez Show on Newstalk seven eighty.
Ko Waight with Corey's vigility to wipe the Lord of
Highlands Morganes once again a one ten decline on the
(24:37):
data naszack down three seventy seven SMP lower by sixty eight.
All right, let's get to our topic that we started
on Tuesday, how to turn home equity into retirement income.
All right, boys, I'm going to have you go fast
on the three points that we covered because folks, you
can always go back to and listen to our podcast
and hear in more detail. But let's go to point
(24:57):
number one. Corey helock versus I'm sorry, Dwight. Yeah, helock
versus No, it was you, Corey. I'm sorry because the
reom will meek overside helock for cash flow projects.
Speaker 3 (25:07):
Yeah, We've talked about this a lot. You can, if
you have the equity, you can go get a helock.
Talk to Dwight. You don't have to use it. We
talked about having it just for safety and emergencies, but
it's it'll always be there if you want to use it.
You can take the money and invest in some rental properties,
fixing up some something else that will create cash flow
for you. So a lot of different options there. Yeah,
(25:28):
use John.
Speaker 2 (25:29):
It's important to point out on that, you know, it's
a it's typically a ten year draw period, so it's
interesting only keeps that payment way low. And again you
only pay on what you are borrowing. You pay it back,
you got zero. It's just a nice little I mean,
you are a very big advocate for the right person
to have this little to have this little you know,
safety net, and why not for a maintenance fee of
(25:50):
one hundred bucks a year.
Speaker 1 (25:51):
Yeah, I would like referring to is. We always recommend
to our clients that you know, they look at us
kind of cross sits sometimes when they work so hard
to get their house paid off and then they go
into retirement. Before they go into retirement, I recommend they
get a helock and I go, wait a minute here,
I just got the house paid off. I don't want
any more debt. No, it's not debt unless you need it.
But again it's easier to qualify when you're still working.
And number two, as Dwight said, it's emergency money, all right,
(26:12):
it's going to number two Dwight cash out refinance for stability. Yeah.
Speaker 2 (26:15):
That used to be the old trustee one when race
were stable and all that. But all it is is
instead of doing a helock, you're just doing a cash
out refinance. You know, you know what your payment is,
it's predictable, it's going to be amortized over a certain
period of time, and so it just uh, you know,
it gives you a little more safety there, you know.
Speaker 1 (26:33):
A great detail. I don't have time to go with
a great detail. But what's the percentage again?
Speaker 2 (26:38):
Loan to value for eighty percent cash out?
Speaker 1 (26:42):
Perfect? All right? And with rates starting to decline, could
be a little bit more attractive Dwight hopefully.
Speaker 2 (26:51):
Yeah, I think so. You know, the major ones are
debt consolidation, education, medical bills, things like home improvements. So,
you know, especially if it gets to be a large number,
you've got that type equity. Why not why not tap
into it rather than you know, spend all your cash.
Speaker 1 (27:06):
Absolutely, and again as a cautionary note, do not do not,
do not do any of these things we're talking about
without consulting your CPA, if you have a financial advisor,
et cetera. Because again there's tax ramifications and different things
you need to be aware of. All right, Corey number three,
downsize and invest the difference. I can't see ye again.
Speaker 3 (27:25):
Yeah, most of a lot of the people we're gearing
towards right now have probably lost the spouse, have a
big house, the family's gone. So think about downsizing if
you don't need all your space, and you can downsize,
get into either purchasing a smaller house or renting a
smaller house, which is what we talked about a lot
on Tuesday. Then you can take the difference and go
(27:46):
to somebody like John who can invest it for you,
and you can just kind of sit back. You know
it's safe, you know that it's going to come every month.
You don't have to worry about it. Or you can
take that money set. I've always wanted to be a
lamb the here I'm eighty years old. I would to
be a landlord. So go buy your first rental and
get some cash flow that way. But it's just it's
just an easy way, hey, to take some of the
(28:08):
load off of you from the big house you have
now and then also create cashul at the same time.
Speaker 1 (28:13):
Very good, excellent, All right, Dwight, you touched on number
four reverse mortgage income strategy.
Speaker 2 (28:18):
I love it. Take an expense and turn it into
an income. Right, So this is for borrowers sixty two
or older. Obviously the older you are, the algorithm is
more favorable to the amount of money you can either
take out monthly or you take you can take out
as a lump sum. So all it's doing is it's
taking your equity and rather than paying a forward forward mortgage.
(28:39):
So for example, if you've got a mortgage you're paying
one thousand dollars a month P and I, and you've
got enough equity in you of age, you can switch
that around, not have a payment and actually receive monthly
income off of it or a lump sum. Again, it's
all drived or it's all driven by your age and
the interest rates. So with the interesting it's coming down
it's be a lot more favorable.
Speaker 1 (29:01):
Of a product. Perfect and as we said on Tuesday,
that's one of the risks of that. You know, some
of the complaints. Again, very expensive to do these, so
have a thorough understanding. But also I've seen this, and
the boys have seen this. If you love your kids
and they think they're going to get some of your equity,
make sure you talk to them ahead of time. I've
seen more family disruptions when mom and dad died and
(29:22):
there's a reverse mortgage and they didn't tell the kids,
and it's kind of challenging for that at that point.
So definitely, all right, mister Ede, Let's go back to
you at number five, fresh fresh new point here accessory
dwelling units. The ad US turn that unused land or
a garage, whatever it is, into a rental engin. Again.
I love this point you brought up because once again,
as you mentioned the other day, Reno is in the
(29:43):
midst of approving ADUs for certain areas, et cetera. So
I think we could see this one really start to
take off.
Speaker 3 (29:49):
Yeah, and it probably will take off. These are very
popular all over the place right now, kind of all
over the West coast. California has been doing them for
a while. But here in Reno again, I don't think
they've got the final final stamp of approval on it,
but it's coming. I don't know all the ins and outs,
But essentially it's going to allow you to take your
you know, beautiful house on the half acre and you
(30:11):
haven't used your sideyard in twenty years and potentially build
a little attached or detached structure on that sideyard. They're
going to have. It's gonna have its own sewerd, it's
going to have its own stuff, basically, its own set aside,
almost like a duplex. And do it legally right now,
you right now, John, with the zoning, you couldn't do it.
(30:32):
What the ad you will allow you to do is
do it regardless of the zoning. And as far as
I know, again the restrictions aren't iron claud yet, but
as far as I know, there will not be restrictions on.
It could be for your mother in law, it could
be for a tenant that's going to pay. It could
be a short term rental. I'm sure they're going to
iron out some of those. But it could house somebody
(30:56):
for you that you're paying the house. Right now, I'm
thinking of older parents, so instead of you showing out
five grand a month to have them somewhere that can
be with you, which creates better cash for you. Or
you can take that unit and rent it out to
somebody and create cash flow that way.
Speaker 1 (31:11):
So I am seeing more and more of my clients
guys over the years exactly what you just said, Corey.
They're doing this with their adult children, you know, whether
it's already there or they have to build one, you know,
an ADU unit. And folks, we're not talking like a
little you know, home home depot, a little wood shack
that you put your tools, and we're talking yeah, fairly nice, right,
(31:32):
I mean, whatever you're gonna spind off, but you know, kitchen.
Speaker 2 (31:35):
All right, Corey, real quick, I got a question on
those ad us. Is there going to be restriction? Can
you short term rental those?
Speaker 3 (31:42):
So from what I'm hearing right now, there's still they're
still deciding on that question. But the way they're going is, yes,
you can short term mental then, but you have to
have the short term mental license, so it won't be
a free for all. They still have to know you're
doing it. But as you meant, Jee's.
Speaker 1 (32:00):
Down that type of thing.
Speaker 3 (32:01):
Yeah, yeah, and they want you to be licensed. They
want to make sure there's enough parking in the neighborhood.
They want to make sure the neighborhoods okay, and as
you were talking about, yeah, I think again, So this
isn't iron Clay yet. I think it's a minimum eight
hundred square feet. Obviously, has to have a kitchen, has
to have a bathroom. Like these aren't something I was
going to say, you order off Amazon, but they do
sell some pretty nice units, so not something you're going
(32:21):
to go buy down the street. These will be very
nice units.
Speaker 1 (32:25):
Where As I said out of the home depot parking
lot right the toolship, that's a lot of people think
that he's like eighty is.
Speaker 3 (32:30):
Yeah, yeah, no, it'll be it'll be interesting.
Speaker 1 (32:32):
Yeah, all right, we come back. We're gonna hit point
sixty seven and eight equity partnering for rentals, ten thirty
one taxi for exchanges and then sell rent cheap and
invest smart. To wrap it up with Corey Indowite, it's
turned over to Kristin Snow right now traffic Center. Kristen,
Welcome back to the John Sanchez Show on News Talk
seven eighty k which mister edge your phone number.
Speaker 3 (32:54):
Sir six seven three six seven zero zero.
Speaker 1 (32:57):
Beautiful? All right? Do I head to you westout to
an event, so we will continue down our list here again,
how to turn your home equity into retirement income. All right,
we touched on the ADUs. Now, Corey, this is something
I know you've had experience in and currently do equity
equity equity partnering in investment properties.
Speaker 3 (33:18):
Yeah, and so if you have never been a landlord
or never invested that way, but it's something you want
to do, but you don't want to, you know, go
through the thirty years of learning or whatnot. There the
easiest way to do it is to partner with somebody
who's already done it. And I say it, you know,
kind of all different ways. If you know somebody who's
very versed in it, then you could come in and say, well,
(33:41):
I have the money, if you know what you're doing,
let's partner and go do it. You could try to
buy into an existing partnership that's already running. And as
weird as that sounds, you know, you could go anywhere
around this town and you see big shopping centers or whatnot,
more than likely there's multiple partners in there, and every
once in a while one of them has to sell
out or a family has to. So I've been involved
(34:01):
when somebody in the partnership dies. So in a state
is selling their portion of the partnership. So there's all
different ways you could do it. But if you want
to be the if you want to invest in real
estate but you don't have the knowledge, but now you
have this orough money or enough cash, well now we
can get you the cash and you just go out
and do it via the partnership.
Speaker 1 (34:22):
And for those of you that maybe knew listening to
the show, this is exactly how Corey got started twenty
five plus years ago in real estate. Right, you went
to somebody with money, you go, hey, I got a
great deal, and that's how you kind of got your start.
Speaker 3 (34:35):
Yeah, I mean it's it's even the stuff that we
did just a few years ago. It's there's always there.
In my experience in a partnership, there's always the people
that are boots on the ground, know the stuff, find
the deal, polish it. And then there's the people that
have the money that say, hey, I don't want to
do all that to me, that's boring, but I have
a ton of money and i'd like to invest, you know,
(34:57):
And so they and they make good partners right. There's
always those two things.
Speaker 1 (35:01):
So obviously when you're talking partnerships, make sure you have
an attorney involved, drop the primary partnership agreements and the
way the property is going to be titled and held,
and there's a lot to that, but yeah, what a
great strategy, all right. Number seven, the ten thirty one
text defer at exchange. Again, this is more I can't
do this on your primary home, but of course any
rental property you can. We did a show on this
a few weeks ago. Pick up the podcast to hear
(35:23):
the details. But again, this is where you're selling an
investment property for light kind. Property does not mean you
need to go from a single family to another single family.
It's basically investment to an investment and again by doing so,
you're deferring the capital gains, depreciation, recapture, et cetera. Again,
just a great way to move into real estate. Maybe
you've got a piece of land that's not producing cash flow.
(35:45):
You're like, hey, you know what, I can go buy
that rental and you know, you sell your land for
six hundred thousand and you go buy a rental for
six hundred and five thousand. No capital gains on that deal,
and now you got it into a cash flow producing asset.
So excellent strategy there. The Corey number eight, Sell rent
cheap and invest smart.
Speaker 3 (36:05):
Yeah, and we talked about this a little bit on Tuesday.
But you have the big house, you don't need the
whole thing anymore. You've got a bunch of equity. So
if you don't want to pull it out, if you're
just more interested in selling it, then sell it. Go
find a good rental. You have the right to do that.
You don't have to own something and invest it smart.
And again, it can be hands on investment like real estate.
It can be hands off, like going to yourself or
(36:28):
a financial person to say, hey, you know, I want
to be something safe, but I want to check every
month and I just kind of want to know how
much that check is going to be. And then it'll
pay my rent and it'll pay my you know, traveling
to Europe every two months, and it'll pay all my
stuff and then you don't have to worry about it.
That I say to everybody, and you if I talked you,
and I've talked about it, like there's a price for
peace of mind. And I don't know what the value is,
(36:50):
but it's an incredible value to not have to worry
about stuff, Like it's priceless so it is.
Speaker 1 (36:57):
It is, and many times from a health standpoint, you know,
people need to kind of or their body. I hear
this all the time from clients. You know, I'm sitting
on a couple acres, it's all landscape a. I'm tired
of paying the gardener, you know, one thousand dollars a
month to maintain it and a five hundred dollars water
bill in the summertime. I want to be able to
lock my door and walk away for a week, two weeks,
whatever it is, and come back and not have a worry.
(37:17):
That's where renting or downsize would definitely come into play.
And like you said, Corey, taking that equity and using
it for something else. Just remember, folks, in this whole strategy,
what's the common denominator. It's producing cash flow. So if
you have an underutilized asset, whether it's real estate or not,
just look at creative ways that you can turn it
into a cash flow producing asset for you and you're
ahead of the game there. All right, We did a Corey,
(37:40):
great job. As always, thank you everybody for joining us.
We do appreciate it. We'll do it again tomorrow on
The John Sanchez Show. God blessed and have a great afternoon.
Twink Mallar n MLSID number two four one two five
nine a license mortgage Loan officer with Highlands Residential Mortgage
Limited and Equal Housing Lender and MLS ID number one
(38:00):
three four eight seven one. The information shared on this
live broadcast is for general information purposes only and does
not constitute financial or mortgage advice. Listeners should consult directly
with a license mortgage professional for guidance tailored to their
specific situation. All loans are subject to credit approval and
program guidelines. Not all applicants will qualify. Loan terms in
(38:21):
availability may vary by state and are subject to change
without notice. Highlands Residential Mortgage Limited is licensed in multiple states.
For a full list of state licenses and disclosures, please
visit https slash slash www dot Highlandsmortgage dot com backslash
licenses backslash. The views expressed during this program are their
own and do not necessarily reflect those of Highlands Residential
(38:44):
Mortgage Limited.
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