Could Paying Rent On Time Help You Buy a Home? Big Changes Coming

Hinzugefügt: 2026-05-25

[00:00:00]What's up everybody? Welcome to Real Talk Real Estate. This is Mortgage Monday. I'm David Green and this is Christian Bachelour frantically trying to get his camera set up because I did not tell him I was going to be going live before he was able to.

[00:00:14]I got it light blocked off. There you go. Yeah, we've got a little Jimmy rigged system that we put together so that he doesn't get this little ray of light that he is an angel of real estate but it makes it hard to concentrate on the topic. So today Christian and I are going to be talking about a little update to how mortgages are given and how credit scores are calculated. So there's been an announcement by HUD and the Federal Housing Administration.

[00:00:38]We're going to be talking about that. So while Christian's adjusting things, make sure you subscribe to the channel.

[00:00:44]Make sure that you let us know in the comments what you think and I'm going to play the video.

[00:00:48]Go for it.

[00:00:49]>> [snorts] >> Fannie and Freddie as I said are ready to immediately start working with approved lenders to accept Vantage score loans. To that end we've been quietly working on something which we're announcing today that lenders have already started accepting Vantage score loans.

[00:01:04]Freddie Mac has taken a delivery already of $10 million worth of Vantage score loans in an initial operational test and we will be securitizing them soon. We know that there's been a lot of market demand for it. So we've received interest from mortgage lenders including the nation's largest lenders about taking the Vantage score loans. So be about 21 lenders in the initial pilot that will be able to do it. When I say pilot it's not really a pilot cuz now it's it's a very real thing. When applying for a mortgage new models include rental history, utility payments and other data that is not currently accounted for when applying for a home mortgage. This will also create opportunities for younger credit worthy Americans who may have been unable to access affordable credit because of the reliance on older models and I want to emphasize credit worthy Americans. The market reacted very well to it. I mean we have people actively wanting to take delivery of these Vantage loans. So, and they're very predictive credit score. Christian, I've never asked you, are you familiar with William Pulte?

[00:02:05]I've seen him talk. I don't know his like beliefs and his economic stances, but I've seen him speak quite a bit. Is he the same Pulte from Pulte Homes? I would think it has to be. He's from that family.

[00:02:15]>> Oh, I've actually never put those two together. Maybe. I wouldn't be surprised. It's a unique enough last name. Yeah.

[00:02:21]Of course, and like I said, we we're now in business. We're in business to uh make home buying more affordable while being safe and smart. We've done $10 [snorts] million worth of loans, and we've updated the seller guide today.

[00:02:34]So, that's a big deal. The selling guide is going to include not just FICO, but Vantage score. So, it's uh it's very real. You know, we announced our intentions to look at using Vantage. We announced our intentions to have rent count towards it. Today, it's becoming a reality. It's become a reality today.

[00:02:51]All right. Now, uh Christian, I know it's not your favorite thing in the world when I surprise you with a video you haven't been able to watch or think about. So, everybody give me a little bit of grace because I don't know how familiar Christian actually is. This is brand new news that just hit the market.

[00:03:04]But, why don't you start off by explaining how uh credit scores are calculated, and then we'll move into how this is going to change things. Yeah. Um credit is very misunderstood. I'll lead off with that. It's very, very misunderstood. Um and really the the answer is because nobody really understands it.

[00:03:23]A lot of people have asked me, "Oh, if I you know, why why aren't I a higher credit score?" It's a good question, right? Um your score gives you a little bit of guide, but but the gist is what it's made up of is your payment history.

[00:03:36]Um so, that's how often you're making payments on time or not ideally having late payments, right? Um it's made up of your really your entire credit history.

[00:03:45]So, how many accounts you've had, what their balances have been, um and there's a whole fun algorithm that goes into basically summarizing your entire financial life into a number.

[00:03:55]>> [laughter] >> Right? And that number's between what, 500 and 850? Technically, you can go below 500, let's say 400 and 850. I actually don't know what the absolute bottom line minimum credit score is now, actually, I think about it. Uh it's probably like 350 or 400. But you got to really try to get that low.

[00:04:10]And perfect credit is deemed to be 850, right?

[00:04:14]Um and credit is massively important when getting financing, specifically mortgage financing, but really anything, right? It comes up when you get a car loan, it comes up when you get credit cards, business financing, all that fun stuff. Um and it basically summarizes how you are as an individual buyer um into an into a score, and you're priced effectively. So, a lot of people when they go online and they see the average 30-year mortgage interest rate, it usually assumes you have upper-tier credit, which is usually 740 and above.

[00:04:42]Um and a lot of people apply for mortgages and don't have that, and they're shocked when they see their interest rates. Mhm. Credit absolutely Hypothetical example of an interest rate that would be associated with like a 740 versus maybe a 620.

[00:04:55]Yeah, I mean, big swing. I mean, right now that would probably be the difference of about a half a percent in your interest rate. So, people go online, they see the average, depending on the source that you see, the average 30-year interest rate right now, depending on the source once again, is between like a 6.1 and a 6.4 is kind of the range you're seeing right now. Um a 620 FICO score would be like high sixes, maybe even low sevens. Um As opposed to maybe a 6.2 or 3. That's exactly right.

[00:05:18]So, it's a big swing. Right. Um and obviously, there's things that we can do to improve credit. There's there's a lot of companies that have made their stances on helping people with their credit. You know, you hear of credit like rebuilding companies. Um and brokers and lenders, if they're willing to do it for you, which the one brokerage is, um can actually help you with fine-tuning your credit um via a what's called a rescore as well. Um which we can get into in detail, but staying on topic, credit is the number that analyzes your financial worth as a US citizen.

[00:05:48]Now, there's three different companies.

[00:05:49]Can you kind of explain how they all have different scores and how it's determined which credit score is going to be used for the mortgage? Yeah. Yeah, the when we when I say credit, I should explain that. We're talking about your FICO score.

[00:06:00]FICO is basically a data conglomerate that brings together three credit bureaus, TransUnion, Equifax, and Experian.

[00:06:07]You are correct. Each of them have their own kind of models and metrics, but what your FICO score is is the middle of the three. So, if you have a bureau at 600, you have one at 650, and you have one at 700, your FICO score is 650. It's the middle of the three, right? And they all have their own little different algorithms based on once again your late payments, the time that you had accounts, your payment history, how many inquiries you've had on your credit is an impact on your score. A lot of things. Now, what this video is talking about and really honestly what's been in talks with the industry for quite some time, to be honest, is redoing that FICO score basis.

[00:06:48]And there's a lot of companies that have come and gone that have said that they have a better metric. They are going to update the bureaus and how they report it. Um I think it was Experian does their credit boost, which is where I think this is probably where this stems from.

[00:07:00]A few years back, Experian rolled out their credit boost that allowed you to upload what is traditionally not credit relevant items, such as utility payments and rents, and add that to your credit score. Now, there's something to be careful of because utilities are probably by far and away the most missed payment like in the country. I see late credit payments all the time for, you know, collections for utilities and you didn't return your, you know, AT&T equipment when you moved, and you have a $67 collection.

[00:07:29]Right, it happens all the time.

[00:07:31]So, for the people who are taking advantage of you know, potentially signing up to include your rent payments and your utilities and your other non-traditional credit items on your score, make sure you're keeping those accounts clean because historically those have not impacted your credit score. You can miss your electricity bill and it won't hurt your credit. Um credit is on other items that you actually applied for. So, credit cards, student loans, home loans, mortgages, uh car loans, uh personal loans, um things that there's actually a process to get, right? You don't like qualify for utilities. You just sign up.

[00:08:02]>> Got you. Right. Or your garbage bill.

[00:08:05]That's correct. Yeah. Right. They're not running your credit when you do that.

[00:08:08]What was this talk about I think you called it Vantage South? It sounded almost like there was a fourth company that was going to be keeping credit. Did I understand it wrong? It's not a fourth company. It's the metric. So, right now um we we've been on the FICO scoring system for really as long as I can remember. Uh Vantage would be replacing basically the old FICO score, which is how they calculate the impact of the events that happen on your credit. And what Vantage is Vantage is a new uh uh like calculator, I guess is the way you can call it, right? It's not changing who's inputting the numbers, it's changing the way the calculator calculates, right? And Vantage score is running on this idea of a lot of Americans, especially now, they're they're kind of scared of debt. So, I I've seen a huge increase of people who just don't have very much credit history, right? Like 20, 30-year-old kids who just never opened up a credit card, right? And they've never bought a car. They're you know, mom or dad bought them their first car and they've never had a need for a credit card. Um that's kind of surging in popularity. Now, on the other side of the spectrum, credit's at an all-time high, right? So, the people who do have credit have more than they've ever had. Um but what Vantage is postulating here is the ability to add these other items routinely across the board. Um which is where everybody will consider them in your FICO score so that the three or four years that you successfully paid your rent on time every month can help you in boosting your credit score to qualify for a mortgage, which in theory is a good thing.

[00:09:30]Remember, every good thing usually has a bad side of it that if somebody missed you know, if you missed your rent payment 2 years ago, historically we wouldn't have known.

[00:09:38]We don't care, right? It doesn't populate on your credit report. Now it will. So this will help people who pay good and hurt people who don't, like the credit score does now. It will just expand the metrics that it's looking at.

[00:09:50]So will that be the case for all three of the major credit reporters? That's I think what's in Kothak's He called it a pilot. Um I think they've been And it's also which what the lender accepts. So lenders don't have to accept Vantage.

[00:10:01]What he's talking about why it's a big deal is that if they make it a standard for Fannie and Freddie, all conventional loans will do it. Um and all the lenders will have to abide by Fannie Freddie guidelines. That's why whenever anything is trying to create like an overhaul in the system, they always attack Fannie Freddie first. So for those of you who know, like we offer bridge loans and DSCR and self-employed loans and all these other loan products that we have, um and your Vantage score um is higher than what we pull on your FICO score, it won't matter, right? The lender offering the product has to accept that new score. And obviously, if you're in the conventional realm, which includes all Fannie Mae and Freddie Mac debt, which is the 80% plus majority of all loans that are done in America, um you'll be in that bucket if this expands farther than They're calling it a pilot. It's not a pilot. They're actually doing it. Um it hasn't expanded to be the standard in the industry yet.

[00:10:50]If that >> that work? If someone says, "I want mine to be included," is that something people have an option?

[00:10:58]Uh well, it would it would depend on the lender. So right now they said they're probably They said 21 lenders are doing >> pilot would be a certain number of lenders that fund loans are going to say, "Hey, we will include past rental payments in the score that we accept."

[00:11:12]Is that what >> a different credit score. So you wouldn't have a FICO score anymore. You would close on your Vantage score, right? So we've said like like David, even you on the on the real estate side, right? When you had the real estate agency, like everybody uses FICO and credit interchangeably.

[00:11:27]Like you probably ask borrowers on your initial real estate consultation, "What's your FICO score?" Like you weren't asking what their credit score was, you were asking what FICO's interpretation of their credit score was, right? Now, >> what that is. That's actually a good question. What does FICO actually mean in rela- in regards to a credit score?

[00:11:44]Yeah, so how we use it, FICO is the middle of Experian, Equifax, and TransUnion. But, Experian, Equifax, and TransUnion use the FICO modeling, which is the calculator, to calculate how your payments and your history and everything impact your score. So, like, why would you have uh you know, a late payment to that post to to uh Equifax and TransUnion, but the scores are not the same. This happens all the time, right? And that's because each bureau has put their own little twist on it, but the core root of the calculator is based on the FICO system that's been in place for as long as I've been in the industry, we've been calling it FICO, right? So, this is a fairly big swing that it'll kind of objectively change the the standard of modeling of how your credit score's calculated. So, there's a form of a algorithm that the three big credit agencies, you said they were Equifax, TransUnion, and I always forget the third one. What is it? Experian.

[00:12:34]Experian. That they use an algorithm, and I'm assuming each of them have a slightly different one, that's why we get different scores cuz they weight different things differently. Okay.

[00:12:43]Exactly. So, then somebody applied Not every creditor uh uh reports to all three. So, it costs People don't know this. But, like, if you open up a MasterCard, right? You open up a new Apple Card, that's run by I I think it's run by Goldman Sachs now. I think the payment system's through MasterCard. It doesn't matter.

[00:12:59]Um and you miss a payment on your Apple Card. Apple Card may report to Equifax and TransUnion, but they may not report to Experian. This happens all the time.

[00:13:07]The reasoning is because it actually costs the creditor, so MasterCard or Goldman Sachs in this case, it costs them money to report your information to the bureaus.

[00:13:16]So, because the standard for so long has been picking your second your middle FICO score, they just report to two because they know no matter what, they're getting your middle one, right? If they punish two of your scores, the middle one is going to be impacted if there's only three, right? Two out of three are going to come down and therefore your middle one will be captured. Now, a lot of lenders were like mortgages will typically report to all three. Like big debt, right? Mortgages, big car loans, those will typically report to all three because they want to make sure that they miss a payment, like it really impacts you, right? Um but I've seen some credit cards that only report to one. Like we're a TransUnion credit card.

[00:13:51]Okay, right? That means if you miss your payment, Equifax and Experian have no idea about it. So, it's kind of interesting. You see with I mean I've got to review probably 25,000 credit reports in my life.

[00:14:01]Um credit [clears throat] reports are very they're they're you learn new stuff about all the time, right? How vendors are reporting, how it's calculated, what people can do to boost their score. It's kind of this always changing weird non-spoken you know, like shadow realm of the industry.

[00:14:16]Credit's the misunders- the most misunderstood thing, I think, in the American financial system. Well, I don't think anyone puts the effort or the work in to figuring it out unless they work at a credit repair agency.

[00:14:28]Yeah, probably true.

[00:14:29]>> [laughter] >> Right. And they're usually not ones to share that information very freely, right? They just say trust us, give us, you know, 10 grand and we'll fix your credit for you. Yeah, right. They're not going public and saying this is how it works. Now, one thing that everybody is concerned about are hard inquiries, as JV here has mentioned. Can you explain the difference between a hard pull and a soft pull, how they affect your credit, and when each should be used?

[00:14:53]Absolutely. So, to obtain financing, you need a hard pull. When you actually go to get a loan, all every lender out there, there's very few exceptions to this, but 99% of lenders are going to require a hard pull to close. That's where they actually go to the bureaus, they report to the bureaus that you are interested in new credit. And just so everybody understands, an inquiry is just us telling the bureaus that you have applied for new credit.

[00:15:16]So, play out two scenarios. Somebody who never applies for one credit every 12 months, they do a hard inquiry, and they have one pull on their report every year. That's a person who probably doesn't need a lot of credit versus the guy who has put in 15 credit inquiries in the last 6 months. That person's probably in financial hardship. They're applying for a lot of credit cards, personal loans, something going on. So, that kind of tells Remember, guys, credit is to get a story of who you are financially. And somebody with a mountain of inquiries tells a story that that person has not been successful and is continuing looking for new credit.

[00:15:50]That's a red flag. That's a sign that you may be in financial hardship. So, there is an algorithm of how much that impacts your score.

[00:15:57]Um soft inquiries do not report. That's me just going to the bureaus and saying, "Hey, I don't need all the data. I have not confirmed this borrower is looking for a credit for a mortgage yet or a loan or auto, whatever. Uh I just want to see their score because I want to preliminarily qualify them in the event they become interested." Um those do not hurt your score. We do all soft pulls on pre-approvals now. We converted back 2 2 and 1/2 years ago. So, doing all soft pulls on credit um on the initial application phase.

[00:16:25]Um if you chose to move forward with us, we So, we would actually pull your credit twice. We do a soft pull and a hard pull, but it would only hit it with one, right?

[00:16:33]So, we do the soft pull when somebody applies for a loan and we give them a pre-approval, and that doesn't affect their credit score? Correct. Yeah, soft pulls do not They don't even appear on your score.

[00:16:44]Nobody knows. And then I'm assuming at the point where the loan goes into submission, we do a hard pull to make sure that the soft pull didn't miss anything. Exactly right. And that's the one that actually hits you, quote unquote, as an inquiry, right?

[00:16:55]>> Now, what is the actual hit? How bad is the hit, and how long does it take for it to go away? Superb question. So, once again, it's an algorithm. So, this is a little bit hard for me to answer, but typically a credit inquiry, like the way the bureaus report it, can impact you anywhere between one and five points.

[00:17:09]Um now, I'll use myself as example.

[00:17:12]I'm in a weird position cuz I run a financial company. I get my credit pulled all the time. In the last 12 months, I think I have 28 inquiries on my credit because every time we get signed up with a new lender in a new, you know, state, they just pull my credit incessantly, right? It's all the time. I still have above 780 FICO score.

[00:17:28]So, I don't want to draw the conclusion that if you have a lot of inquiries, you will have a lower score because it's a it's a combination of your entire I have a lot of mortgages, I have three car loans, like I have things that offset the pain or the the downward effect that an inquiry would have. Now, if you have fresh credit, you've had one credit card in your life, and you're looking to buy your first mortgage, absolutely having 15 inquiries would hurt you because that has a greater impact because of your limited other credit history, right?

[00:17:55]Which is why people and once again, it's all the credit bureaus, my freecreditscore.com and Credit Karma, they always tell you, you know, don't don't and no inquiry, no inquiry. That's not advice across the board for everybody. That's kind of just standard, these are one of the things that could impact you, therefore, try to limit it as much as you can, Right.

[00:18:13]All right, couple good questions here.

[00:18:15]Liliana Luna said or Lillian Luna, how would the math work? Do credit scores still go up to 850?

[00:18:23]Uh I'm filling in the dots a little bit here. I'm assuming she's asking about the new Vantage. Uh I actually don't know. I think the Vantage has the same max credit of 850. Um I have to do me more Like you said, we just watched the news prep. This is brand new, right? Um so, they may go higher, they may cap you lower. Um I'm not sure of the Vantage standard and the the scales yet. Um but I would have to imagine it'd be similar to FICO. It's just the the calculation methods would change. So, if you missed a late payment, where, you know, with uh with FICO, maybe it impacted you you know, 50 points, maybe with this new one, it'll impact you 20. I don't know, right? Good point. Kelly Rachel has a pretty cool statement here.

[00:19:03]We have something in the apartment complex where I work where you can pay $6 a month to have your rent payment show up on your credit score. So, this is a way for people that are renting a unit in an apartment complex to start building their credit to then go get their own house. Anything you want to share about that? Yeah, I assume this is probably through the Built system. Um I think it's B Y L T um or B I L T.

[00:19:24]Um that's a that's a system where basically they convert your rent payments and you can pay them on like a credit card. Um or the landlord just has an agreement with I don't know. I don't want to pretend to know, you know, where Kelly lives here, but I know a lot of apartment complexes started to do this as a benefit of renting from them. Hey, renting can help you buy a home by improving your credit score.

[00:19:43]>> Right. Right.

[00:19:44]>> Um and this was specifically targeted.

[00:19:45]Now, once again, guys, if you miss a payment, this actually hurts you buying a home, right? Um but yeah, Kelly says she has six bucks a month and they will report your rent to your credit report. That's because it costs them money. That's why they're charging you money to do it, right? Um and that could be a great thing for borrowers who have a good payment history and want that rent to help them, you know, boost their credit score to buy a mortgage. Um there's a lot of companies that this might my complex, I think it's kind of common knowledge. I live in an apartment complex. I spend all my money on my rentals. I don't own where I live personally. And my apartment complex does this. Um where they say, "Hey, if you pay your rent, we'll allow you to either put it on credit or we'll just report directly to the credit bureaus.

[00:20:18]Um and we'll give you a better FICO score for staying on time with your rent payments."

[00:20:22]Pretty sweet. Lillian Luna Garcia, did they change something where if you have a higher credit score, you would actually get a higher interest rate for your home?

[00:20:32]Uh I haven't heard anything about higher Higher credit scores traditionally will get lower interest.

[00:20:38]Um now there are some examples for first-time home buyer loans where you actually get um you get subsidies. Um and that's that's actually something we had a podcast about this, David, during the the um Biden administration, but it was based on down payment, not credit.

[00:20:52]So, there's a weird influx in the in the industry. It was 3 years ago, I think, roughly. Um it was like halfway through Biden's term. Um where like if you put 5% down, you got a better rate than putting 20% down. Um I have not heard anything that a higher credit score will lead to a higher interest rate. That would be completely bad. I'd be very shocked if that happens. Um but I guess never say never. Maybe they're just going to massively subsidize low-credit borrowers, right? Um Kelly said it's called Rent Track. There you go. Mine's called Bilt. So, there's a bunch of companies.

[00:21:18]>> it's a similar like the different company doing the same thing? Same Yeah, different company doing the same thing.

[00:21:23]Just like Wells Fargo and Chase do the same thing, right?

[00:21:25]How would it help small landlords to report the rent coming in from California that will actually be great since the Democrats here have rules that eviction can no longer be reported to your report. It's very detailed question there.

[00:21:41]Yeah, California and a lot of um landlord unfriendly, right, tenant-friendly states, right? They have limitations on like if you actually get kicked out, can your landlord report it?

[00:21:49]I believe they can still report late payments though. Um so, late payment isn't an eviction. It just means you missed your payment. Usually, you have to be late for 3 to 6 months before they can actually start the the kick-out process, right? Um so, you are right. There may be some weird some weird uh criteria in some of these land-landlord unfriendly states that, you know, maybe they can report a bunch of late payments, but they can't actually report that they kicked you out. Mhm. The late payments will still hurt you guys though. I want to I want to make sure that's clear. If you miss your payments while you're renting and it's reporting to your credit, it will 1,000% hurt your credit. It will be the same thing as if you missed a payment on a credit card or car loan or mortgage statement or But it is it is wild that you can't report an eviction. Yeah.

[00:22:31]Like if I'm going to rent to you, I care less about if you've been late than if someone had to evict you. An eviction is one of the most I'm going to say something offensive. I don't care.

[00:22:40]It's like one of the least integrity-est things that can ever happen. Okay, we're not talking about I can't make my rent.

[00:22:47]I got to break my lease. Okay, I'm sorry. I agreed to stay here for 12 months. At year at month nine, I got to go. I'm sorry. That you can still be sued for the remaining rent on the lease that you didn't pay. But that's honorable. This is I can't pay and I refuse to leave. So you got to make your mortgage payments to the bank, your insurance, your tax, all of the things you got to pay. But I'm going to make you pay money to have someone come forcibly make me leave. Yeah. It's funny. I just talked to a borrower yesterday who's selling a rental property with a non-paying tenant, basically a squatter, and it's in one of these blue states.

[00:23:23]Um and crazy thing, the bar the tenant just submitted a $25,000 request for repairs. And he said, "All of my All of my appliances aren't working and there's a leak in the roof." He hasn't paid his rent for 6 months. And he's requesting the landlord not only be okay with him not paying rent, but now he made a request saying there's $20,000 of damages that in all reality, guys, the tenant probably caused.

[00:23:47]>> [laughter] >> Right? And now he's tying the landlord up and like, "You need to make repairs on this property now." And not only is he tying him up, but like, that's the landlord's property. You should want to make those repairs, right? Um but it's just in some of these states with these crazy rules, like you get into these wild stories of like, You're right, David. I mean, if you know, paying to live is a cost that's the cost that all of us have, right? Whether you own your home or you rent your home. Even if you haven't paid off, you're still paying taxes and insurance. There's a cost to live in the world, right? Yeah, but I'm just saying if somebody makes a landlord go through that, to make it illegal to report that to the credit company, that might be the number one thing I would want to know. Yeah. Okay, like if I go into business with this person, which is kind of what happens if I give them all my money and I'm trusting they pay it back, are they the type of person that will say, "Hey, I I can't pay, but I'll work with you" or are they going to say, "I can't pay, I will not work with you, I will make you pay even more and I'm going to force you to go get the police to make me leave because I have no self-respect." That That just like blows me away. And the police in in some place in California you're going to be hard-pressed to come kick somebody out of the house cuz they're going to get a bad rep for it, too. And then there's the whole politics >> coming, for sure. There's going to be a liberal politician that says, "We're not doing evictions anymore." We but they're going to say it like we will no longer forcibly kick families from their homes and put babies on the streets. That's the way it's going to be said. But yeah, there's going to come a point where you're a landlord and you can't make the police kick them out. If you go try to kick them out, you'll be in trouble for that. They'll be able to sue you. And uh they'll have some process in place where they send caretakers by the house to try to like nicely talk somebody out of it and I don't know what we do. And they're really pushing, you know, low-income housing, there's a huge motivation to not be discriminatory, right? In allowing these people to rent your house. So you can't even do your property diligence in a lot of these states, right? We can't like a lot of states are getting really picky on like can you ask the borrowers like personal questions? What do you do for work, you know, where can I get another landlord reference from you? You know, and if you really start digging and you deny somebody an application to live in your property, now you're discriminating and you're prejudiced and you're all these things that come from having that. When in reality you're just trying to do your due diligence so you're renting to somebody that's going to pay the payment, right? Uh it's pretty crazy. A lot of these states are really finding themselves in some hard conundrums of like you can't have it both ways. You either need to hold somebody accountable for paying the rent or I mean, what? Do we want to start talking about free housing? You know, that's Yeah. That's a different story, right?

[00:26:09]>> I I just made a video, you weren't on this one, Christian, a couple days ago.

[00:26:12]I'll see if I can put it in the little thumbnail thing if I remember. But it was about how the you need to start considering moving your equity at this point. Like New York is is proposing a second not a a second house tax.

[00:26:24]Basically, if you left New York, but you kept the house that you lived in when you were there, they're going to tax you very heavily for keeping a property after more than other people have to pay, basically. Like like you broke up It's like the breakup tax. Oh, you're leaving me because I'm a toxic partner?

[00:26:41]Well, I'm going to take like a bunch of your stuff type of a deal. And how if you own real estate in these areas, even if you analyze it right, ran the numbers right, cared for it right, took great care of your tenants, the government might become your enemy, which it's not much of a secret. You've seen this happen to me. I bought houses in really nice neighborhoods. The government didn't want short-term rentals there.

[00:27:01]You called on my behalf one of the government officials and they were like, "Oh yeah, we don't care if you have converted garages and ADUs. Everybody has them." You actually told the lady, "Yeah, everybody's got the same thing he's got on the entire block." They're like, "Yeah, but it's not until you apply for a short-term rental permit that we enforce it." Yeah. And we know who he is. We looked him up on Google.

[00:27:19]We know he's a big wig. He's not going to be He's not coming into these parts.

[00:27:23]And they basically refused to issue me permits for several years forcing me to not be able to do anything. You're not going to beat the government. Uncle Sam is undefeated.

[00:27:32]Tough uh Yeah, you find these catch-22s where like you buy a property and you can't do anything with it. You know, and like that's not the point of ownership in America. You're either providing housing or you're not, right? Yeah. Lillian says, "I had to go I had to just go through that two times.

[00:27:46]I'd rather they leave and not make me go through an eviction." Yeah, I think we can all understand that people come on hard times. In fact, I'll even say this, Christian, the majority landlords that I know if they have someone that's like, "I'm so sorry, I lost my job. My uh my wealth not my welfare, my child support was doubled. Something happened, right?

[00:28:05]I can't make the rent." And they leave and they leave it in good shape. I don't even know landlords that go after them in court for the remaining of the lease.

[00:28:11]They just go, "Hey man, I get it. Thank you for taking care of my house. I'll put it up for rent and I'll get it from somebody else." Yeah. There There's That's such an honorable way to go about hard times. Uh there could be an environment where you have slum lords.

[00:28:26]I'm not saying that never happens. It is not as common as Tik Tok would have people Yeah. believe.

[00:28:33]And then it's called habitability in California that the tenant is trying to pull to stay longer in the unit. So, I think that what she's getting at is there's a law that says if the property is not hab- habitable, you don't have to pay your rent. Exactly. And if the tenant trashes the appliances and says, "Oh, what do you know, the AC doesn't work anymore. I don't have to pay rent."

[00:28:52]And then they can live there for 6 months without paying and then you also have to pay to fix the thing that they broke. Nobody put that into consideration.

[00:28:59]>> don't break it again, right? Yeah, that's it.

[00:29:03]Yep. Uh so, it's not always about being smart. Sometimes it's about understanding uh what other outside forces are working on you and just putting your equity and your money in places that want landlords, that want small businesses, that want capitalism, that want hard workers. So, in that video that I made, I just talked about how where you have your property matters almost as much as what kind of property you have and how it's running. And now is the time to look at it. Um we're going to talk more about this very topic on a podcast. You can get it following the David Green Show. We take all the Mortgage Monday episodes that we record and we also put them on Apple, Spotify, and YouTube. So, if you guys like this topic, we'll be going deeper into it. We also have one coming up about a doctor loans. If you're a physician or know one, we've got access to special loans for physicians that we'd love to tell you guys about. Christian, if people want to reach out to you about getting a loan, refinancing, or getting a job at The One Brokerage, where can they go?

[00:29:57]Yeah, it's going down the bottom of the screen right now.

[00:29:59][email protected] is just our our company inbox. Um if you want to get in touch with me directly, um @theonebroker on Instagram um is the best place to just shoot me a DM. We can talk what you're looking at. Um and then my email is just Christian, so you just replace intake there. At There it is.

[00:30:14][email protected].

[00:30:16]And um you guys can get in touch with me directly. We talk financing, we talk about this new credit system, we can talk about being a landlord in a landlord-unfriendly state. Believe it or not, there are still people being successful, but um just makes it that much harder, right?

[00:30:28]Absolutely. You can also get a hold of me at davidgreen24.com. Just go to the website, send me a message using the chat feature. It goes right to me. Uh I've had several people every day have been asking different people Actually, there was a guy from Oklahoma, where I am right now, that sent me a message.

[00:30:42]He's like 30 minutes away and he's like, "Hey, can you guys do a DSCR refi on a couple properties I have in like the prior area?" I was like, "Oh, are you in in that area?" He's like, "Yeah." I was like, "I'm 20 minutes away from you working on a Airbnb right now." So, it's me, it's been confirmed. You guys can get a hold of me and I will get you in touch with the right person. Christian and I are definitely looking for people to hire, especially if you live in the Southern California area. He is in an office right now that we want to fill up with people where you're going to get in-house training, the community feel, and really good uh mentorship for your career. So, if you're in that area, particularly like Woodland Hills, tell everyone you know that we're hiring. You could get your license, join our company, you could have another job.

[00:31:21]Lots of people do that. We also have a Las Vegas office that we're looking to get filled and if you're not in those areas, well, we still have remote positions as well. We go live three to four times a week giving training to different types of loan officers with different classifications. So, reach out. I think you'll like it. Thank you guys all for joining us today. Make sure you leave a comment. Let us know what you thought of the show. Subscribe if you haven't already done so and ring that bell so you get notified when we go live.

[00:31:46]We'll see you guys next week.