Pasted Show Notes:

what's up you guys uh welcome to another episode of the mighty mike show helping you buy it right and sell without a fight i am joined by the awesome chris brenton

he is rocking the saint petersburg in tampa area servicing his clients big and small like a true professional he's when he's not doing that though he's outside running hiking golfing outdoors i see you all over instagram because you're just killing it man welcome thank you man appreciate you having me here and i'm super excited for this yeah you know what i've been you know i've been following you for a little bit on instagram and i'm just like checking you out i'm just like man this guy is like all over the place like were you just at the beach yeah yeah just at the beach i try to stay active you know so my on my uh when i'm not answering phone calls doing emails pre-approvals all that good stuff i'm i'm outside you know the hotter the better so that's that's the motto for me that's awesome man well i'm excited to have you on we're gonna dive in deep into some stuff here today and before we lose you guys like with all the details hopefully you're excited about this because we're going to get into some really cool stuff a few questions are going to sound very elementary because i'm not a mortgage officer chris so i hope you're okay with that absolutely yep i'll try to uh try not to go too into detail i'll give the high level overview kind of stuff okay awesome awesome so let's go ahead and jump into it one of the first questions i have well first of all let's let's find out a little bit about you you like going outdoors and stuff like that but what what else you got going on tell us a little bit about your personal life yeah a huge traveler um so my girlfriend and i we just went to utah then we went over to north carolina did some hiking there and at the end of the month we're going to costa rica we're going to go do some hiking there so check out some volcanoes and stuff so that'd be cool and yeah big traveler and uh anything again outdoors is cool with me and a little lesser known fact about me on my down time when it's you know let's say a friday night got nothing else going on i actually like to uh develop websites and and program and and so i'm i'm quite into that the text the tech stuff as well so yeah that's so cool man yeah i got to tell you one of my first companies was a legal service company and you could only serve people at night so i built a marketing company just hanging around during the day i had nothing else to do trying to market my own company you learn how to build websites and do stuff and but it takes it takes years right and so some good stuff yep it's good problem solving so definitely so let's dive into it so one of the first things uh that people think of when they hear mortgage or loan or anything they're like you know i'm not going to get approved so i i've touched on this a lot in mortgage mondays before but let's just real quick let's just talk about that credit pre-approval you know what's the best way for somebody to be able to get approved yeah so um i would say it's it's actually a pretty straightforward process a lot of times when people say you know you have to get pre-approved for a mortgage there's like this sense of panic that goes over people and they they just start to go all over the place and really if we dial it back and look at what banks are really looking for um obviously you touched on it we want to see credit so the minimum credit for an fha loan would be the 580. and then we want to see uh employment history so two years of employment um income obviously and then the assets and those are the four pieces that make up your pre-approval and so if you're looking to get pre-approved i would just try to make sure that you have your credit in check you have some money saved up um and then also the employment is going to be a big thing too the less employment gaps you have the better the less employment jumps you have the better that'll just put you in a little bit of a better position to get approved okay yeah so so there's different loan types you know there's your mortgage uh i mean there's your fha there's your conventional and stuff like that but just roughly like what should someone try to work towards to save in order to to get a house um so what i like to do is i like to think about the monthly payment first and then i work backwards kind of like a word problem so let's say for example you come to me and you say hey chris you know what i think i want to pay 1700 for my mortgage um and this may change city to city so don't quote me on this but you know here in tampa st pete i know that 1700 bucks depending on taxes insurance you're probably looking at maybe 250 to you know 275 and then you can work backwards we know that if you're looking for a house 2 250 let's say um the down payment on that is going to be three and a half percent for an fha loan or three percent minimum for a a conventional loan that gives you a good idea of where you're where you're gonna have to have your savings at um okay so the closing cost too i like to say is about three percent of the purchase price so yeah yeah yeah i get i get some people that kind of funny you know they'll save their money for their down payment and then no closing costs money and i'm like oh could you just negotiate the closing costs you know i'm just like you know maybe we'll see we gotta get we gotta get our offer approved i mean there's a whole process you know which you guys can watch some other videos i'll put one up here later uh if you're on youtube and by the way guys we are approved on linkedin so if you're watching on linkedin comment below because i'm kind of curious how it works with linkedin if you if you can comment and it actually shows up here because when you guys comment on the show i can actually put them up on the screen with this cool uh technology world that we live in definitely yeah we'll definitely answer the questions anybody who comments live will try to answer them if and if you're not watching this live comment below watching the replay and we'll definitely uh uh chris and i will go back and answer any questions you guys have all right so let's dive into so that's good yeah so getting qualified for a loan you know the process there's a lot of people have limiting beliefs and they're not sure what to do they're like my credit or i actually had a guy uh the other day chris that had a 7 30 credit score and he's got 10 000 saved and he's like i don't think i'm ready i'm just like you know you're trying to buy a condo for 110 grand like you know this is slam dunk man yep yeah so there's like this limiting mindset so we don't i don't want to go too deep into that because there's a whole bunch here that i want to just extract out of chris so you guys bear with me here um so one of the things i hear a lot of people say and i'm really intrigued about about is you know paying off your debt of your home versus using that money so let's say i have 50 grand sitting in the bank and i've been putting it away scrolling away and i'm ready to invest it i can invest in a new home potentially and purchase a new home is it better to do that or go ahead and pay off my mortgage right because i mean in a sense i'm paying three percent right interest how does that work what would you recommend yeah so it really depends on what kind of consumer you are if you're somebody who you know you look at your credit and you see you have the car balance credit card house and that freaks you out seeing all those high balance items you know maybe maybe it is better to pay down the mortgage a little bit however i will say paying down your mortgage won't bring your payment down per month um for that you'll have to either you know pay it down or and then refinance or you know refinance later on down the road but it's not going to automatically just bring that payment down so there's that con to paying the the principal down i've seen plenty of people who love paying down the mortgage quicker just because they they want to get it off their books which is fine uh now in this low environment rate you know three percent that's not too bad and you can still snag an investment property for a pretty reasonable rate as well we know that rates for investment properties are typically higher than primary residents so it may be a good time to take that 50 000 put it into an investment property and then maybe leverage the low uh the the low interest rates that we have right now maybe you can even buy down to even a lower rate with that 50 000. so there's definitely some some opportunity there i would probably go with uh you know maybe getting an investment property before paying off the mortgage yeah because if you you know if you get a property that's now cash flowing a little bit right you could then take that cash flow put it into you know or you know or pay it off put it towards the loan yeah exactly you can make an extra payment a month which will pay off your mortgage a lot faster so there's that i think that's the way to do it very cool so kind of related to that is there's a 15-year mortgage what's the difference between getting a 15-year mortgage and a 30-year more is it just i'm making extra payments every month or is it actual type of mortgage yeah so the 15-year mortgage um it's a different amortization schedule than the 30 years so you'll have a higher monthly payment but the interest rate on 15 years is typically lower than it would be on a 30 year so for example if you got a 3.25 on a on a 30 year you may be able to get i mean i've seen this even today you know you could get a two and a half percent on a 15 year now of course that depends on the person the credit and all that it just kind of shows you the rate uh discrepancy there um i'm personally not a fan of 15-year mortgages for myself i wouldn't get one just because i don't like being beholden to a higher payment god forbid something happens and i need to have some extra cash you can always uh pay additional payments or pay off additional principal even if you have a 30 year at no penalty so having a 30-year payment it gives you a still a really good rate it doesn't make you locked into that larger payment and it allows you to pay off you know the pay the mortgage as you wish which i like that gives you more flexibility well you brought up i mean i think that's great and i think uh some really good advice uh what do you think about with the interest rates you know like i hear from a lot of the people who are looking to purchase you know oh the homes are too expensive you know like that's where we're at right now but you know what was it five ten years ago it's like the interest rates are too high you know and it's like this balance is you know this inverse balance right now the interest rates are low but they're coming up right sure yeah yeah so rates you know they're definitely fluctuating um they're of course not as low as they were last year was was crave had people last year that had 2.125 i mean which is crazy so but they're still very reasonable and um you know the purchase prices of homes they're going up pretty quickly so that low rate doesn't give you as much bang for your buck as it would if maybe we were in a more stable market um however during the life of the loan we still have to remember if you're spending 10 years in that house that's a lot of money saved compared to a four and a half percent interest rate even three or four years ago um so it may not seem like a big deal because prices are going up but long term you're definitely saving still a lot more money than you would yeah i think you know uh i didn't even really realize you know the difference between you know the interest rate over this you know 30 years of a loan the difference between two percent and even just two point three percent right like astronomical and so some people are like well we got a good deal on this house you know and that's what the reason why is that the reason why now that people are able to buy a home where before they were buying homes for 280 now they're buying them for 400 because the interest rates are much lower um so it's a couple things i mean i think that for some reason i think covid staying in the in the house people just seem to save up a lot more money people are working remotely so it gives them some flexibility there um rates certainly do help with that as well um one thing i like to do especially with rates and and anybody should really look into is you know you have a rate stack that you can choose different rates from and you can always buy down to a lower rate so if i were a consumer right now and i got a 3 on a 30-year loan i would sit down and say well how much is it going to cost me to bring that rate down to a 2.7 how much is it going to save me on a monthly basis and then that really puts things in perspective and it tells you how much you're going to be paying an interest over the life of the loan and then if it's worth it to buy down to a rate so that's what i would do and and to answer your initial question that certainly does help people uh with the uh the purchase prices is the lower rates so i love that you expounded on that because you know when it comes to points and when it comes to you know buying you know paying that interest upfront is like literally one to a hundred right i mean like if yeah you're buying the interest down because you have the money up front so all right so if somebody let's say somebody just you know hang one more question on the interest rates uh if somebody if somebody has a high interest rate right now like let's just say it's higher for some reason they didn't refinance is it a good idea to go ahead and refinance a question i get a lot is well if i refinance then i have to pay closing costs and i have to pay all this other you know fees sure yeah so a couple of things on that i guess it depends on on on what your rate is right now if you have a 3.875 and you can bring it down to a three flat then you know that's i i would say that's a great deal um now if you have a 3.875 and you know you're bringing it down to a 3.625 you know just a normal rate and term refinance i'd say yeah it's probably not worth it because you're right you do have the closing costs um which typically we can wrap those into the financing so we're going to add to your your your balance and add the closing costs to that that uh you know the outstanding balance so if you're looking to take cash out of the house um and let's say you have a project you need 20 grand and you have a 3.875 and you can get a 3.625 well then that that still makes sense you're getting the cash you want and you're getting a slightly lower rate it's not going to be you know mind-blowing but hey it's a lower rate than what you have now so i would say think about what you're doing the refinance for and um if it's a straight rate in term probably not if you're taking cash out i'd say you know go for it and that's mainly because the fees right you got some solid fees for processing the refinance yeah so you're going to have like you know your processing fees um some under some uh banks have like underwriting fees as well and credit fees and and that all gets wrapped into the loan so you know over the the long term i guess it's not really that bad it you know extra five thousand dollars under your balance isn't gonna you know make or break you but it still is extra money you know so it has to be for a per like you said if they're pulling out money to re you know rehab it or something like that or or invest it into something that's going to earn money or invest in another property that's going to earn them some money going back to the original you know point so yeah yeah i love it i love it okay good so so mortgage forbearance uh yesterday was the first day that uh in a long time that we've kind of the floodgates have kind of been open i haven't heard anything yet but i do own a legal company in california and uh i've heard there's a lot of people getting served i know that so you know uh served eviction notices and stuff like that so what do you think right now with the mortgages and stuff mortgage forbearance so many people going into mortgage forbearance what do you think it had what kind of impact do you think it's going to have on the market um so i you know i read an article about 5 000 uh homes going to forbearance in our area and you know what that tells me is there's going to be a hope i mean of course nobody wants to you know you never want to wish that but you know what that tells me is hopefully that alleviates some of this problem we're having with the inventory um ideally that would be you know 5 000 new listings or that would be you know some new listings and and maybe some investors can come in and scoop up some of those and it could be projects that people can start putting so um that would be my hope on that if that was the case and and i think that's probably the way it's gonna go yeah yeah and the thing is is you know we're in such like especially here in florida we're in such like a peak like this you know what the market's just going up that if uh a bunch of homes hit the market it's only going to balance it out a little bit you know bring it down to more of a balanced market that's what i would like to see is these purchase prices you know and some of them are reasonable uh that you know how it is like other ones are just like you know no way um and so ideally that those coming out of the market uh would would kind of stabilize that the purchase price absolutely absolutely okay and then so one of the reasons why uh so i get some people that that want to you know want to know about this uh the housing crash you know 708 you know we're not are there's i heard some people talking about subprime loans that those are still happening like what can you tell us about like that you know like some people think that that's happening right now and that there might be like another crash what do you what do you have to say about that yeah so um i i hear that too i've i've heard the people say oh i'm waiting for the market to crash and i just i think when i hear that is maybe there's a disconnect as to what happened and what's happening now um what's happening now in my opinion is more of a supply and demand issue rather than a you know subprime mortgage uh problem um that's not to say that there aren't you know kind of these weird loans being done um we certainly do them in in-house with us uh however they they are more regulated than they were so for example we have a loan that and i think a lot of people have this loan now is a debt covered service ratio loan or otherwise known as an investment investor cash flow loan uh these loans are no income no employment and no debt to income verification type program it's like no docs right is that what you call no doc no doc loan yep no doc loan all we need is your your two uh bank statements showing you have the down payment and you know you're good so but i will say that even that program as as you know wild as it may seem still has its regulations you know we need to see the assets we need to see credit we want to you know the down payment is a lot bigger um underwriters look at those and really put a lot of thought into whether or not they're going to prove so it's not like boom you're approved it's quite a process so although those are programs out there they're not they're not like they used to be right they're not like us your standard bank loan that's going to give you just give you the money and not you know you're going to end up going in forbearance right away absolutely and what happened in 08 was really a problem on all levels i mean it wasn't just uh you know loan officer writing a bad subprime mortgage and you know it was it was you know sometimes it was you know buyers who who couldn't afford it and they just did it anyway it was it was loan officers writing back uh mortgages but it was also all the way up through the banking system you know yeah and then the stock market too and yeah it was crazy yeah so yeah we're not we're not in another bubble like you know we're not pretending chris and i are pretending to know that like this is just you know that we know everything about the market but we're definitely not this is not a repeat of what happened in a way it was 708 so all right so let's go let's uh you mentioned the the the um hard money loans is another thing some people will call it a lot of my listeners are investors and so i just want to touch on that is that the same program is that the same thing is this an individual who's loaning money or is this like a um a group you know grant cardone for example has a you know cardone capital with hundreds and thousands of investors who have their money into it uh what can you say about the where that comes from and how that works yeah so it would be a little different than hard money um so the hard money i i believe you're probably looking at like even a higher rate um you're looking at i think it's interest only for a certain amount of time the program i'm referring to is actually we do it in house and and in we can also brokered out to um some other uh mortgage shops as well and so it's not an individual or a private you know firm it's the actual you know direct lenders who are lending this money uh and uh it's it's for rentals mostly so we used to have one that was for your fix and flip type that for hard money um this program is specifically for people who are looking to build a portfolio of rental properties and it allows investors to close them in llcs if they'd like it allows for interest only payments if they'd like but it is a 30-year loan so it's a full-blown 30-year loan and there is uh you know like i said some additional documentation that goes into these okay cool so so one other thing you know this might sound crazy to some people like do you ever do like balloon payments anymore is there ever like a balloon payment loan i honestly i have not done one i've had some people ask me um about adjustable rate mortgages um you know i my stance on that is is if this was maybe five years ago where your rate was 5 or 4.6 and you got an adjustable rate mortgage and now the rate you know the market is you know obviously a lot lower then that's great you you played it correctly it's it's a great move if you were to do that right now knowing rates are just going to go back up in the future because they're the lowest they've ever been it wouldn't make any sense you're just setting yourself up to pay a higher payment for no reason in the future yeah i think it's crazy i think it's like um you know like if you were to rent a place you would never say like you know hey i can afford you know you know 2 000 a month and then you know who knows maybe 10 years from now i'll pay 4 000 a month yeah exactly yeah it doesn't make any sense now if it was inverse then maybe you know but uh right now it just doesn't make sense and i guess that's a reason why there's a place for it right because people try to play the markets maybe exactly yeah sometimes people do it and they they refinance out of it you know um before i mean i've seen all kinds because you do get a slightly lower rate i i have seen that where you know the rates are so low right now you do a 7-1 arm and you know you get a little bit of a lower rate than that you know the 30-year fixed um and then they just refinance out of it before the seven years is up okay all right so so kind of wrapping things up on the mortgages and the loans like and what the different options are you know this covid and everything that has happened with covet and the mortgage forbearance and all that it's really hit some people really hard and you know sorry you know i really sucks you know i know a lot of people have been affected by it but there are some upsides too you know you got uh the government's just like throwing money at people um let's say you got a a ppp loan or a a grant or something like that how can you apply can you apply that to a down payment if you're trying to purchase a house um so we wouldn't accept that for down payment um and we have seen it on uh you know we'll catch it on like bank statements or whatever we always source those large deposits um and so sometimes it can create some additional documentation for us like if we see that large deposit on there we're like what is that you know it's oh e loan and i've also seen sometimes where we look at it and um it could have an effect on your debt to income so if you need the ppe loan it's there it's it's great but i would try to season the money for 60 days like if you got it august i would wait until october to apply that way you don't have to show it because it could have some kind of an effect whether it's documentation or debt or or anything so yeah well you know you've been providing some amazing value here today and you know i i know i could just keep extracting some information out of you but i know we're kind of running out of time so chris um at the end of every show i like to ask my guests you know what question do you have for me and so yes i was curious um you know when i had reached out i was like man this is such a great platform and i was curious as to you know if you've always been doing this when you first started like did you go into real estate thinking that you wanted to grow this platform and then when you got into real estate how did you start in in this industry yeah that's such a good question so uh you know to keep it short essentially i learned uh in my first business that i had legal service business i uh kind of stumbled upon it you know when i was learning about marketing uh john lee dumas gets a fair amount of credit with the podcast entrepreneur on fire he has a course i'll plug him just because he gave me so much value it's uh um i think it's freepodcastingcourse.com something like that but anyway john lee dumas has this podcast that's just amazing every entrepreneur you can think of has been on it and i learned like he was able to connect with people that he otherwise never would have been able to contact most likely and so i started a podcast interviewing the top associations and legal professionals all over the country which turned into me traveling and speaking at all of these conferences because people knew me it's kind of funny like this community of private investigators and process servers i've had people ask for my autograph i'm like um okay like well why like you know you know because they get to know you and they listen to your podcast you know it's called process server daily um you know where i post it every day and so i knew as soon as i got into real estate i did that as well for the marketing world that's how i met john lee dumas eventually on his came on my show um that's how i met him because you just the more people you know the more you grow you know it's your network equals your net worth they say and you're the average of the five people you spend the most time with and so right now with these questions and whoever you guys are listening to this right now hanging out with me and chris and and and he's provided so much value you're the average of us and the other three people you're hanging out with you know so that's a long-winded version of how i got started and uh why podcasting and youtubing now is i'm doing this on youtube and linkedin now is so vital to your business and uh that's a great question yeah well you do a great job man great platform and uh it's it's been great so i really appreciate it yeah i appreciate you coming on definitely going to stay in touch here you know with uh anybody getting a tampa st petersburg area for mortgages i'm sending them your way and anybody who's watching this right now how can they uh keep up with everything you have going on yeah so the uh the platform i use the most is uh instagram believe it or not so closed loans with chris and that's chris with ak um uh that's that's probably where you'll be able to find me the most i'm on facebook too but uh shoot me a dm on instagram and i'm pretty responsive so um any content is going to be on my instagram page yeah you definitely want to check out his instagram's got a lot of great value on there that's how i kind of connected with you i started seeing that and then latoya the lovely latoya i said you got great content and so she's in my office she's in the same office i'm in so awesome yeah she's great good stuff well if you guys have any questions or are you looking to buy or sell or invest in orlando and obviously in tampa you could definitely get pre-approved for a loan uh you know if you want to go look at houses and you haven't gotten your pre-approval letter yet uh call your uncle joe and have him give you a ride around and then once when you're ready to buy a house reach out to chris he'll get you pre-approved and then i'll go actually show you the home of your dreams we'll make an offer on it and uh help you buy it right let me tell you you heard what chris said if you own a home right now and uh and your renter hasn't been paying rent and you're ready to go ahead and sell it because you don't want to have to experience that ever again i will help you sell it without a fight thanks so much chris for coming on guys let us know if you have any questions and chris let's do the the signature oh man no let me eat mine you don't make me look bad you made me look bad now i feel like i needed this

beast mode i gotta spend more time outside like chris all right thanks thanks a lot we'll talk to you soon see ya

thank you for watching another episode of the mighty mike show tune in monday through friday at 3 p.m eastern standard time and don't forget to subscribe rate and review the podcast leave a comment below and let me know what you would like to hear discuss on the mighty mic show see you next time mighty mike helps you buy it right and sell without a fight