Interest rates have become a hot topic over the past six months. Back in 2020 and 2021, homeowners were bragging to their friends about their rock-bottom mortgage rates and how they secured financing at three percent or less! But times have changed, and seven percent interest rates are becoming the norm. Now, nobody is bragging—in fact, many investors are too scared to buy, thinking that today’s interest rates are far too high to buy homes with. If you’re following this thought process, you could be making a BIG mistake.
Welcome back with another Seeing Greene episode, where our “high rates, who cares?” host, David Greene, answers questions directly from investors just like you. In today’s show, David coaches a young investor on building his side business, why quitting your job could be a mistake, and how to learn from past deals to build wealth far faster. Then, David pivots into answering questions from investors on how to get over your fear of taking on good debt, how much to have in safety reserves for your property, and why being scared of high interest rates could hurt you in the long run.
Want to ask David a question? If so, submit your question here (https://www.biggerpockets.com/david?utm_source=youtube&utm_medium=description&utm_campaign=none) so David can answer it on the next episode of Seeing Greene. Hop on the BiggerPockets forums and ask other investors their take, or follow David on Instagram to see when he’s going live so you can hop on a live Q&A and get your question answered on the spot!
00:00 Intro
02:07 Quick Tip
02:54 Coaching Call: Financing Deals Without a W2
13:50 Coaching Call: Hard Investing Lessons
20:15 Questions from the Comment Section
25:27 Scared to Take on Debt?
32:26 How Much Cash to Keep On Hand?
36:18 Scared of High Interest Rates?
41:19 Get in The Money Mindset
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The Fed’s Plan for Future Interest Rates:
https://www.biggerpockets.com/blog/on-the-market-4?utm_source=youtube&utm_medium=description&utm_campaign=none
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Debt Is Good When It Comes to Real Estate:
https://www.biggerpockets.com/blog/good-debt-real-estate?utm_source=youtube&utm_medium=description&utm_campaign=none
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Episode 684
Show notes at: https://www.biggerpockets.com/blog/real-estate-685?utm_source=youtube&utm_medium=description&utm_campaign=none
#biggerpockets #realestatepodcast #biggerpockets684
With inflation currently coupled with bad energy policy, bad foreign policy, bad regulatory policy , and insane fiscal policy. My primary concern is how to grow my reserve which has been sitting duck since forever with zero to no gains, sure I'm all in on the long term game. But with my savings lying waste to inflation and my portfolio losing gains everyday, i was able to come in contact with Shirley Bagshaw and she was able to manage my investment within the agreed period of time.
I have two duplexes I want my next one to be a multifamily with management.
how to get a heloc on rental properties ? (Lower Value Homes)
I really appreciate his willingness to be transparent with his weaknesses.
Has anyone been able to recently get a HELOC on a rental? Every lender I talk to says they can't do it! I would love that as an option!
23:33 if theres something i would tell myself before was stick to this point
"The first step toward success is taken when you refuse to be a captive of the environment in which you first find yourself." —Mark Caine
Excellent!!
Refer MICHAEL
I'll just say thank you for the everlasting help you did to me and my family. without you MICHAEL I don't think my business can move forward anymore since pandemic took down my business. Thanks ??? for helping every small business owner startup GRANT
There are ways to finance a propert without looking at your income – there are lenders out there who just look at the asset ONLY. Why didn’t you recommend that?
To the first question having an issue with getting standard conventional primary residence financing:
Purchase on seller financing / wrap. Even if you go to a RMLO to verify your income situation, it is entirely up to the seller to decide whether you are a reliable borrower. We would sell to you in a flash.
Purchase with a DSCR loan, with no form of income verification if necessary. Yes, it is a higher % down and worse interest rate, but since the intent is as a house hack / investment property long-term, it will still make sense for you.
I'm a 30yr old self made realtor who owns 3 properties (one is a soon to be duplex) and trying to buy my 4th property. I have the downpayment, but struggling to make things work, lacking creativity…How do I set up a call with you 🙂
David you were very encouraging and uplifting to the dog trainer and new investor!!! You did not take the hammer and bang it on his head , rather you saw an exit and opportunity of what he called a mistake or failure!! Awesome man!! Failure is not the opposite of success, IT IS PART OF SUCCESS !!!!
Great information and knowledge as always David!! Thank you!!