Is Buying A Fixer Upper Worth It?

Added: 2026-05-07

[00:00:00]All right guys, we are back. It is Cinco de Mayo Matt Garland NMLS number 58700 better known as MG the mortgage guys. So today we are talking about is a fixer upper worth it in today's market. I'm bringing back the one and only my brother Tukques Productions is in the building. Tukes, what's good my brother?

[00:00:23]How are you today?

[00:00:24]>> What's going on? What's going on?

[00:00:25]>> Happy >> another day. Another dollar.

[00:00:27]>> Another day. Cinco de Mayo.

[00:00:31]>> Cinco de Mayo. I got my margarita.

[00:00:35]We gonna have a good conversation while I'm having this bad boy. [laughter] >> Yeah, I'mma just have my water over here. So, had a long weekend. I celebrated early this weekend.

[00:00:44]>> Yeah, I know. You say you've been lit for a week. [laughter] >> Yeah, I'm I'm recovering right now. Get my, you know, electrolytes back in my system and all that stuff. So, I'm chilling. I'm chilling.

[00:00:55]>> Well, there you have it. I have I'll have a drink for you.

[00:00:58]You said what?

[00:00:59]>> I said I'll have a drink for you because I got two of these bad boys. I'm double fisting.

[00:01:05][laughter] >> Hopefully we'll make it to the end of the episode.

[00:01:08]>> We will.

[00:01:10][laughter] All right. Talk to me. Is Is buying a fixer upper worth it in today's market?

[00:01:17]Why are we talking about this tools?

[00:01:20]So, um there's [clears throat] a lot of homes that have potential and that seem like you can do some stuff with it. A lot of the homes in the area that I'm in or just anywhere really have like older style interior. Um maybe even outside is kind of like old too. And I say old, I mean like maybe from 80s >> or maybe even 70s. I'm not really sure.

[00:01:44]But they're not really up to date and modern. So, those homes you look at, the price is probably decent or better to purchase, but then you got to think about, well, I want it to look more modern. Is it really worth it to go into this this home and spend money to renovate it and do all the other things to make it look more up to-date? So, do you actually save money doing that? Um, and then the cost of doing all this stuff, the types of loans you can get for that, if that's even a possibility.

[00:02:12]Um, and then also like if you go into these homes, things that you find as far as uh damages or, you know, maybe during the inspection process, there's things that you're going to find.

[00:02:22]>> Um, what's worth it and what's not to deal with when you buy these homes?

[00:02:27]>> Yeah. So, look, um, [clears throat] so to answer the question, yes, it is worth it to buy a fixer up in today's market only if you know what the hell you're doing and buying real estate. So, if you're buying something that's at the top of the market, well, let me say this. Most people mess up to when they buy real estate, they buy real estate asking price above asking price knowing damn well that still that house still needs to be remodeled, >> right? They want to fix a kitchen. They want to fix a bathroom. They want to do new flooring, right? Everybody want to make it their own, especially if it's a resale property and it's not like a new construction, right?

[00:03:15]When you buying at the top of the market and then now you go and put another 40 50,000 and depending on where you are in the market, what I mean where you are in the country, you're probably never going to see your money back, right? Unless you're in the area that has some gentrif gentrification going on. There's something happening to where two, three, four years your house is going to appreciate. But let's just call a spade a spade. In 2026, 2027, that's probably highly unlikely, right?

[00:03:47]Homes on average appreciate two to 5% nationally on average. Right now, you have some hot markets out there that might be closer to 5 to 10%.

[00:03:59]But there's nothing like the the pandemic years aka the pandemic >> when homes were doing 20%. Right? So you have to be very mindful if you are going to buy something that's a fixer upper, you need to buy something that really needs a lot of work or something where you can get a distressed homeowner to where somebody who might be late on their payments or they going through a divorce or somebody passed away. like there's some issue where it's forcing them they need to sell. The house has been in the market for three months, four months, right? And now you can get yourself a good deal. Um and then now if you put that money into the house, then you can force the appreciation, right? Instead of you being upside down, right? Because a lot of people are are going to be upside down because they're they're overspending on their home improvements, thinking their houses are going to naturally appreciate because they're doing certain improvements, but the market is just not commanding that.

[00:05:04]You know what I'm saying? So, you have to be careful in those markets. And then also if you buying in a new construction areas where there's a lot of new construction, right, your house might not just be up to par compared to some of these new construction homes. Um, so you got to be careful because if you buy in an area that's heavy new construction and if those homes are not flying off the shelf, then you have a lot of inventory which can bring down the prices because there's just too much inventory. And then now what we're seeing with builders, builders are giving away the house just so they can sell homes. And I don't care what no realtor tell you.

[00:05:41]This is just the God's honest truth.

[00:05:42]They're paying closing costs. They want to buy down your rate. They want to give you this. They want to give you that.

[00:05:46]They want to give you what once would have been considered upgrades and you got to pay extra. Now they're like, "Oh, we'll just throw it in, right? Just please buy the goddamn house." You know what I'm saying? Like it's like it's a low-key fire sale. So, you have to be careful and mindful of these things and you have to really understand your market. You know what I'm saying? If you're going to buy a fixer upper, but me, bro, I love fixer uppers. I I think it's the best way to really make money in real estate. Um, forcing your appreciation. Uh, I would rather see my people who watch this channel buy something that's well below market price. I'd rather you buy a piece of crap home in the area that you want to live in and force that appreciation and make money just like an investor would do if they were going in fixing and flipping, right? Home buyers can have that same mentality. You can actually outbid the investors if you know what you're doing, right? Because an investor is only going to go to a certain percentage because they want a certain margin and if they're getting financing, they definitely only going to be at a certain margin and a certain ARV. But home buyers, you can play in that market, too. You just got to know what you're doing. You know what I'm saying?

[00:06:58]>> So, what uh like and with what with what's today's market, though? What like how do you even look for those kind of homes without having to go out and like be in your car driving around?

[00:07:12]>> Where do people look for these homes?

[00:07:13]>> So, the internet is your best friend, right? Okay. The internet and AI, right?

[00:07:19]You know, you got all the search engines, right? You have Zillow's, you have the realtor.coms, the Red Fins, you have all those things, but now you also have Claude, you have Chachbt, you have AI [clears throat] that can assist in these things, too. So, if I was a new home buyer and if I was looking for something that was distressed or something where I could potentially make money, what I would do is I would go into Claude or Chat GBT and I would say, "All right, my my chat GBT is named her name is Vega, right? Um, I say, "Yo, Vega, I need to find all the houses in that's listed in this particular one, two, three zip codes that I'm interested in, and I need you to present me the houses that's been on the h on the market for more than 90 days that could be potential opportunities for me to force my appreciation with doing a rehab."

[00:08:16]>> Simple.

[00:08:17]>> Okay.

[00:08:18]>> Right. Simple.

[00:08:20]and let's see what chat says. And then now send me the list of listings. And then now I'mma copy and paste those addresses or click on because you know they give you the links. You can click on the links. Open up another window.

[00:08:33]And now it's going to take you to the Zillow listing. And now I'm looking at the pictures. I'm looking at to see what this is about. Right? I'm verifying the information that AI's giving me. But they're making my search easier because I'm telling them exactly what to go find me instead of me perusing the internet trying to figure this out. But the key word I said is I want to find homes that are potential good for rehab that's been sitting on the market for 90 days or more, right? Where I can force the appreciation by doing a rehab.

[00:09:08]So, you take that those keywords, you use that, it'll bring you listings, you research them, and if they look good picture-wise, descriptions, you call a realtor or you call your realtor, you call a listing agent or your realtor, either one. Um, if you don't have a realtor, then call a listing agent and inquire and figure out like, all right, what's going on with this property?

[00:09:33]I'm >> How much money can you put into these properties?

[00:09:37]How much money can you put into the properties?

[00:09:39]>> Yeah. Like I know that's a weird question, right? But >> very weird.

[00:09:43]>> Where should >> Yeah. So, like what percentage wise is there a certain percent that you should be at? Like, okay, if the house costs, let's say, $100,000, like how much should you really put into that kind of house?

[00:09:54]>> What do the comps tell you? See, that's when the game gets >> You're looking at the other homes in the area to kind of tell you.

[00:09:59]>> You got to It's comparables, right? So, like if this house been the house, let's just say for example, you find a house that's been on the market for five months. You look at the pictures, you got granite old school countertops, you got pink bathroom tiles, right? You got popcorn ceilings, you got outdated everything.

[00:10:18]>> And you say, "Okay, they want 100,000 for this property." Now, you want to look at, okay, what have properties that, so let's just say this is a four bedroomedroom, two bath, just, you know, as an example. Now you're looking at >> what's sold in this area. Now you tell AI again, can I'm interested in this house. Can you tell me or show me listings of comps that sold within the past 6 months within a mile radius of this property address that were fully rehabbed that could be be potential comps for this property.

[00:10:55]Now what chat going to do? What claw going to do? They're going to send you comps. And then now you do your due diligence. You click on those links. You look at the comps to see if they're comparable. And if they're coming in at 150, 200,000, 250, now you know, okay, I got some room to play with. So now you have to go ask yourself, okay, this is for 100,000.

[00:11:17]Let's just say it's 200,000 that it's appraised for. I mean, the comps are shown like on average it could be worth 200,000.

[00:11:26]Now you can say you can screenshot those pictures or save those pictures of the house that you're looking at and you can upload them back to chat and say, "Okay, you see this kitchen, this bathrooms, this that. Can you give me an estimate in this zip code of how much it would repair this kitchen for like a modern style kitchen that maybe got the quartz countertops, the new modern kitchen, appliances, wood flooring all around, right? Give me an idea what this would cost me for a rehab for this property.

[00:11:55]and I want to rehab kitchen, bathrooms, X Y and Z. Now, what chat's going to do, what AI is going to do, it's going to tell you, okay, what's the price per square foot for rehabs and what it could potentially cost in this area? So, the AI is going to give you a baseline.

[00:12:12]>> Yeah, it's kind of crazy. Yeah, >> it's not crazy. It's God bless America.

[00:12:16]I love this [ __ ] [clears throat] >> This is this is the greatest time in the world to buy a home. And if you use the technology that's in front of us, it's going to make your life a lot easier.

[00:12:29]You just got to know how to talk to your AI. That's why my AI, her name is Vega.

[00:12:34]I've trained her and she's my home girl and we talk business. [laughter] You know what I'm saying? And she gives me the information that I need. So now when I go see the property, now when I go talk to realtors, now when I talk to contractors, I can have an intelligent conversation based off the due diligence and the research that I've done. Make sense?

[00:12:56]>> Makes sense. So as far as getting a loan for one of these homes, uh, is there a different type of loan you'd have to get?

[00:13:02]>> Now we talking.

[00:13:04]Now, let me tell you guys this, and you've probably heard me talk about 203ks and Fanny May Homestyle. Hell, I just had a [clears throat] rehab mastery boot camp in January, a fiveday boot camp about rehab loans.

[00:13:17]>> If you're buying a house in 2026 and 2027, >> and if you are preapproved for a FHA loan or a conventional loan and you're buying a home knowing that it's going to need some sort of repairs, you are doing yourself a tremendous disservice by not doing a rehab loan.

[00:13:39]Right? Most people when they buy a house, they know they g they're gonna have down payment. They're gonna have closing costs. Most people don't have 200,000, 100,000, 50,000 just sitting for repairs after they spent money for down payment, closing cost.

[00:13:55]>> That's just the facts of the matter, right? The majority of America doesn't have it. So what happens? People now get themselves into debt. They go into the debt matrix. was saying, "You know what?

[00:14:07]I got high credit, so I'm going to get 0% interest credit cards, and I'm going to use my credit cards now. I'mma swipe away, and I'mma use that for my rehab."

[00:14:16]And now, you know what happens? You put yourself into the debt matrix. And now, whether you're doing 0% interest, low interest, at some point interest is going to be high, 10%, 15% on these credit cards at some point. And if you racked up 50, 60, $100,000 worth of credit >> to rehab your house, >> now those payments are probably going to kick your ass on top of the mortgage payments cuz you didn't plan for your rehab from the very beginning. You know it need work, but you either going to spend credit card money or spend your last bit of money trying to rehab this house and it's going to cost you an arm and a leg. And then next thing you know, you're going to be cash strapped and you're going to be living paycheck to paycheck because you accumulated all this debt. So that's why I'm saying if you are someone who was preapproved or looking to get preapproved FHA conventional and you live in an area where it's mostly resale houses and hell, let's just call it spade a spade.

[00:15:18]These [ __ ] new construction homes are build a great most of them are just the plain jane crap that you don't want.

[00:15:24]They're not sexy. you're still going to want to rehab it. So, if you're doing a loan, why not do a rehab loan where you can get a 100% of the rehab cost rolled into the mortgage? One interest rate, one loan, all taxdeductible because it's mortgage interest. Credit card is not taxdeductible.

[00:15:45]And you do it the smart way and you can still close in 45 days, 60 days. But the problem is people are fooled and say, "Oh, my realtor said I got to be able to close in two weeks to for me to win the offer."

[00:15:57]In some cases, yes, but in most cases, no.

[00:16:01]No. Do a rehab loan. Understand the rehab process with doing a rehab loan.

[00:16:08]Make sure the contractors you're working with really understand this rehab loan and and go out here and get a 100% of the course. Like, I'm working with a buyer right now, bro. We're doing a 203k loan. They're getting about 125,000 worth of rehab. The rate on that [ __ ] is like six and a quarter, bro.

[00:16:27]6.1.

[00:16:27]>> What's the home? How much was the house?

[00:16:30]>> It's a half a million dollar house and they're getting >> So there's no What are the loan limits for uh 203k?

[00:16:36]>> They getting the FHA. So, right. So FHA loan limits are different in every county. So, if you want to know what your county loan limits are, you just Google >> FHA loan limits for Orlando, >> right?

[00:16:48]>> Right.

[00:16:48]>> Okay.

[00:16:49]>> Or whatever.

[00:16:49]>> I think it's like 5 540 maybe 5.

[00:16:52]>> There you have it. So then that's the max loan amount.

[00:16:56]>> That's the max loan amount that FHA will finance. Remember, this is a FHA mortgage >> at the end of the day. It doesn't matter if it has rehab or not. It still goes to that >> loan limit. So if you're buying a single family, if it's 540, then you can go up max 540 with acquisition and rehab cost. So if you're buying a house for >> So if you're buying a house for 500, you can get another 40,000 for rehab.

[00:17:22]>> So why is not everybody doing that loan?

[00:17:24]>> Cuz people don't know.

[00:17:26]>> Hold on. So you telling me right now you can buy a house, the house you want, even if it's like new construction, right? Mhm.

[00:17:35]And like you said, this is pretty much just plain Jane kind of stuff. Nothing really too fancy here. I mean, it can be, but then you're going into like 700,000 with, you know, certain countertops and finishes, but just a basic home. And if you want to renovate it to make it look more modern and do stuff to it, you can take out a 23k loan and just basically make payments on that rather than taking out the money from your credit cards and waiting 12 months for the interest to kind of fade away.

[00:18:02]>> Yes. Now, number one, here's what I'mma tell you. Number one, the house has to appraise for that extra rehab money, >> right? So, you can't just be saying, "Hey, I'm buying a $500,000 house. I want to put $200,000 into the house."

[00:18:16]>> Okay?

[00:18:17]>> Now, into it for 700 and the house is only worth 550.

[00:18:22]>> Even if you did a massive rehab, it's the neighborhood is 550. So, the comps, like I told you earlier, play a major part, >> right? M >> number two is regardless of what you still have to qualify for all that extra money.

[00:18:36]>> So your debt to income ratio and everything still has to be aligned, >> right? But if the moon, stars, and sun align, you can get 100% of the rehab into your mortgage and boom, you have one payment. And even better yet, bro, if you are unable to live in the house while rehab is happening, then you can um set up a payment escrow account. So that way your mortgage payments is coming out of the the scope of the work of your rehab in a separate account dedicated to your mortgage payments versus you coming out of your bank account. So you can you can get a mortgage, >> get a 100% of rehab, and you can finance up to 12 months of your mortgage payments.

[00:19:21]within that as long as the house is going to take 12 months, right? So, if it's going to take six months, you can do six months. If it's going to take three months and you can't live in there, it'll take three months of payments inside of this escrow account.

[00:19:34]>> Damn.

[00:19:35]Okay. But then that means you just got to find the right home that you can >> Exactly.

[00:19:41]>> renovate based off of the comps.

[00:19:44]>> Exactly. It's This is now when you guys turn on your thinking hats and your investor hats. Even if it's you're a firsttime home buyer, you turn on your investor hat. You see you got that LA hat on. You turn that [ __ ] back and you turn on [snorts and laughter] the investor hat and you say, "Look, I'mma I'mma treat this like I'm a fix and flipper, >> but I'mma live here."

[00:20:05]>> So now in that same example, you said you're buying a hund,000 a $100,000 house, but with 50,000 in rehab is worth 200,000.

[00:20:15]So now you you you win that bid. you win it, you get the 50,000 to rehab it. Now you just force your appreciation. You got 50,000 of equity day one versus you saying, "I'mma go buy the $200,000 house because it was new to the market and it looks all pretty and shiny and I just want to move right in right away and not have no headaches. But then when I'm moving at that $200,000, you know what?

[00:20:38]I really don't like this bathroom. I think I'm going to do the bathroom over.

[00:20:41]>> Oh, I'mma do this." Now you put in another 10 15,000 for your bathroom. Now you do this, you put another 5,000 here.

[00:20:47]You put another before you know it, you at the top of the market. You bought 200,000 at the top of the market in your area and then now you put another 20 30,000 in the house. Now you all in for 230. You're upside down now.

[00:20:59]>> Yeah.

[00:20:59]>> And now you got credit card debt or you spent your bank account money in your bank account where you could have used that for rehab.

[00:21:09]I mean, you could have used that for investing into other things versus you putting that that 30,000 out of your pocket into the house, putting the money into the bricks >> where nine times out of 10 your home you brought at the top. So, it's not going to go much higher.

[00:21:29]And if it does, it's a slow investment, >> right? So, even if it you put in another 20 30,000, right? Like I told you, the average home appreciates what?

[00:21:40]>> 20 um 20%. 3%. On average, On average, it appreciates 3% nationally, right? So, times 3%. So, if you got a $200,000 home, it's going to appreciate $6,000 a year.

[00:21:56]You see how long it's going to take you to even catch up to your 230.

[00:22:01]The only thing is with this loan, right?

[00:22:04]Sounds great, but isn't that like you can't get like nice countertops and stuff like that, right? This is just like basic kind of renovations.

[00:22:14]>> You do whatever the [ __ ] you want.

[00:22:17]>> You can do whatever you want. There's no like nobody coming by and inspecting, you know, cuz obviously it's >> No, you don't. No, no, no, no, no. So, if you want to go do uh I want to make my dream kitchen.

[00:22:29]>> Yeah.

[00:22:30]>> Right.

[00:22:31]>> That's what I mean. Yeah. Make your dream kitchen.

[00:22:36]>> You want the house, you want marble, you want the Wolf appliances, go knock yourself out as long as the house appraises, >> right? We're not telling you what not to do.

[00:22:49]You're just saying, "Hey, I want to rehab the kitchen." Now, obviously, ladies and gentlemen, there's a process behind this, right? You got to get a HUD consultant. You got to get your contractor. We got to get a scope of work. We need to know exactly what you're doing. I'm not saying that and I'm not trying to make this sound easy, y'all. Because this is not an easy loan, >> right? This is not how this conversation sounded. This is a process and there's a lot of steps to the process, but it's a process that's worth it. But to answer your question, yes, you can do whatever you want. If you want to do a whole brand new bathroom, like even if you buy something that was ordered rehab and you don't like that dag going bathroom, you want to rip that whole bathroom out and make it to your own, right? You can. These rehab loans are in place for customization to your liking. Like I don't know about y'all, but if I buy a house, I want that [ __ ] to represent me. The house might have good bones and yeah, technically I don't have to probably do nothing just depending on what I'm buying. I can live in it, but it ain't giving what I want to give. I want to create my own space.

[00:23:55]So, why am I going to spend my money when I can just finance it and spend it on a monthly basis and it's much cheaper for me and I can use the bank's money to rehab it and I just pay the bank back.

[00:24:09]And now, like I said, whatever money I was going to pay out of my pocket, 20, 30, 50, 100, whatever it is for rehab, I can put that in the market.

[00:24:20]I can put that 50,000 in the S&P and make 10% annually.

[00:24:27]Okay. So, what can't you do with this loan?

[00:24:30]>> There's a lot that you can't do. Like, you can't go put a swimming pool with a 203k, but if you use a Fanny May home style, you can do luxury improvements, >> right? So, if it don't fit into the FHA category where it has some restrictions like luxury items, well, the home style you you can do luxury items. So, okay, you want to throw a pool. We don't do this loan. you do this one.

[00:24:55]>> Are the qualifications the same for both?

[00:24:58]>> No, cuz it's different. Conventional FHA qualifications are different. So, there's going to be difference.

[00:25:03]>> Okay. Okay.

[00:25:04]>> Right. So, they're still at the core of qualifications of you as a buyer. The same credit profile qualifications that you need for a regular FHA or regular conventional loan is the same for a 203k or a Fanny May Home style.

[00:25:20]>> Wow. Okay. Okay. I did not know about this. Well, I mean, I heard about I heard I heard you speak about this long.

[00:25:27]>> We talk about this all the time when you was when you was full time.

[00:25:30]>> Yeah. I wasn't thinking I wasn't thinking about buying a house.

[00:25:34]>> Nah.

[00:25:35]>> You know, I was just like, "All right, okay, got it." But like now this is interesting cuz I see a lot of homes um that are like older and probably I never even looked at the comps in the area to see what those, you know, what the other homes in the area going for. But, you know, I think that when I see those homes, I'm just like, ain't nobody got time to be fixing that. It's going to be too much money. But then that loan is is pretty much a way to kind of make that happen, especially if it's an area you like. But are these homes are these homes uh like is a fixer upper considered technically a home that you're just going to like fix up and then rent out or is it a home that you can live in also? Like is that what's the main >> No. I mean, fixer upper can be any house. It could be an investment property or a primary residence, >> right? Like I said, like with these loans, like I had a client recently who was going to buy a burnt down three family house.

[00:26:33]>> Mhm.

[00:26:33]>> Like literally burnt to the cris y'all.

[00:26:35]Like this thing was just a shell. Burnt down.

[00:26:41]We was going to do a two or three loan with that. Some things happened with the offer. it then it got accepted then the the sellers pulled out they wanted more money whatever the deal wind up dying but she was able to do that right so it could be as crazy as a burnt down building you can do this with or as something as simple as somebody saying hey I just want to remodel my basement >> and you >> so that that home probably sold for >> pennies on >> pennies on a dollar and she would have had a come up if this would have went through, she's going to need like 600,000 in rehab cost. Um, and she would have got 100% of those rehab costs cuz she qualified.

[00:27:26]>> Damn.

[00:27:27]>> Is there a certain amount of time that Go ahead. Sorry.

[00:27:30]>> I said she would have had about 300,000 in equity, too.

[00:27:35]>> Is there a certain amount of time that uh like you that home has to be completed in >> 12 months?

[00:27:42]>> Also, the home has everything has to be done in 12 months.

[00:27:44]>> Mhm. And if you need an extension, you could definitely get an extension because if permits take longer and is delayed, then you can get an extension.

[00:27:54]>> Okay, so this seems like it could also be a headache because you're dealing with contractors. I'm assuming like you have to hire your own people and everything. Do >> Oh, let me tell you something, guys.

[00:28:02]This is the biggest [ __ ] headache you will ever experience in your life. I'm not going to sit [laughter] here and hold you up. I'm not going to sit here and tell you that this when you dealing with contractors, capital C, capital O, capital N. Type it in chat, please.

[00:28:18]Contractor, right? You're going to have issues.

[00:28:24]You're going to be stressed out, right?

[00:28:26]There's a lot of paperwork. This is a paperwork intensive loan because not only do we have the credit part, which is you, the buyer. We have now the contractor part. They have to understand how they get paid. They have to have their license and insurance. They have to submit forms. Certain forms need to be notorized. Like, >> yeah, >> like we there's a lot that goes into this. But when you're working with someone like me who is an expert who knows what to do and how to get these loans closed in an efficient manner, I try to relieve as much stress as possible for my people. But ultimately, and this is what I tell you guys, right?

[00:29:09]The more work we do upfront before we submit anything to underwriting, the easier our life will be. So, when you get preapproved, you have your contract in place. So, when you're getting pre-approved, you got your contract in place, then now I'm like, "Yo, let's get this contractor docked immediately, right before you even find the house.

[00:29:29]Let's start working on their paperwork."

[00:29:31]So, now there's one less headache we got to deal with. Let me get on the phone with that contractor before you even find a house because I need to have a deep deep conversation with him so they understand how they get paid, >> right? They understand the process. So, if we're doing things at a pre-approval letter, a pre-approval letter and a pre-approval letter, a pre-approval stage, it's going to make life easier.

[00:29:54]So, when you get a house, you find a house and you get an offer accepted.

[00:29:58]Now, we're all on the same page, right? So, I don't want your dreams to turn into a nightmare like a Meek Mill song. I want your dream to be continue to be the dream. So, it doesn't have to be so that way you don't have to be afraid. You don't have to fear doing the rehab. You don't have to fear, oh my god, this is a lot. No, we gonna handle this [ __ ] like bosses. The bosses that we are because everything is hard is worth it. The hardest things in our life is the things that are worth it the most, right? Relationships are hard. Going to work is hard sometimes. Running a business is hard, right? Raising children sometime is hard. This is the these are the most rewarding things in our life. So why why stay in our comfort zone of saying, "Oh, I'm afraid of this, so let me just go let me just go buy this new construction from this builder because they're offering me incentives when you just made that builder two 300,000 for what reason?

[00:31:04]Why be the margin when you can create your own margin?

[00:31:09]Cuz you're afraid. Cuz you scared?

[00:31:12]because the real estate professional just didn't really know what the hell they're talking about and they shot you away and you was you just didn't do your own due diligence, right? The loan officer talked you out of it because they don't know what the hell they're doing, right? No. Stand on your own 10 toes. We are all bosses of our own life. We are the CEOs of our life. So, if you are someone who wants to make money in real estate, you guys hear this [ __ ] all the time. You make money in real estate when you buy, not when you sell. You hear people talk about their net worth in real estate, it's because they're not buying at the market price. They're not buying above asking. No, they're buying distressed properties, properties that's sitting on the market, properties that need the repairs that people who are afraid are looking the other way. So, y'all want to go fight with the hundred other people that are looking at these shiny new bright house and get into bidden wars versus, you know what, let me go look at that piece of [ __ ] around a corner that no one's lined up for that's been sitting here for 4 months where I can go get the 100k, 150k I need to fix this up and make it shiny and beautiful like this where them 100 people lined up for all in my loan. Are you kidding me? Why wouldn't you want to do that?

[00:32:28]This is the greatest loan ever.

[00:32:33][laughter] >> But I guess people don't like to make money.

[00:32:38]>> Yeah. I mean, it's it's uh I I'm I'm in shock about this. I didn't even know this is a thing. But that's that's uh it's definitely a loan that um if you find the right home, it could definitely be a benefit. Um the only thing I'm concerned about though was with the contractor thing is that like is there a process for releasing funds? Because what if you pay what if the bank, you know, obviously gets you the money and then you pay the contractors out outright and they don't finish the job.

[00:33:05]Is there some sort of like process where, you know, they don't get paid until the job is completed? You know, like how does that work if it's if it's a loan technically? It's not your cash, right?

[00:33:16]>> Um, good question. So, I don't want to give too too much away on this. [laughter] >> [laughter] >> I don't >> It's a free course, man. It's a free course. [laughter] >> I mean, >> so I mean, look, it's it's it's it's cont So I I'll say this, what contractors need to understand when they're doing this type of loan that this is not an advancement. Like the draw money is not an advancement. The rehab money is not an advancement. It's a it's a reimbursement. So, the contractor you choose has to be in position to float the job, right? Until inspections and draws get paid out to reimburse them for the work that needs to be done. So, at closing, you're going to get a material draw, right? Only if certain things are are done during the underwriting process. You can get a material draw at closing, right? Then >> which is what like for materials for materials.

[00:34:23]>> Yeah. Buying materials.

[00:34:24]>> But you only get so let's just say if the materials are 50,000 for the project, we're only going to release 50% of that 50,000 25,000.

[00:34:34]>> Okay?

[00:34:35]>> So again, the contractor needs to be able to float cuz that's materials.

[00:34:38]That's not labor. So they need to float, right? Because the money's guaranteed, but the bank is not going to give nobody just all the money up front, >> right? like no. [clears throat] So after you do phases, you got to get an inspection. The the consultant comes, they inspect, they sign off, then a check will be issued. And the project goes on like that until it's completed, right? So the contractors, like I said, the contract is the most important piece of this because most contractors, and I'mma keep it real with y'all, most contractors ain't got it. They robbing Peter to pay Paul and they not going to want to float nobody's job because they want to get paid right now. Most contractors when they start a job, they they like, "All right, the job is 100k.

[00:35:21]I need 50k >> to even start this job, right? Because they want to be able to buy materials, pay their people, and also make their money too at the same time. So, they're not going to want to float." and and and and and those who do can afford to float, your contractor, your your scope of work is going to be a little bit more expensive because they do have the liquidity to float, but now you're going to get taxed.

[00:35:46]>> Yeah. Yeah.

[00:35:48]>> Right. So, it's the gift and the curse.

[00:35:50]Sometimes this [ __ ] just doesn't work out because the the contractor that people are choosing that they want to work with, they just can't do it. And the buyer or the borrower is not in position to float the job either because they have limited funds. So sometimes it just doesn't work out. It's not for everybody. I'm not saying this loan is for everybody, but if you are one of those people where this can work out for you, then this is an amazing loan. Like I'm doing several of them right now.

[00:36:14]>> Like literally million-doll ones, 500,000 ones. Like I'm doing I got people getting 300,000 in repair money.

[00:36:23]I got people getting 100,000, 50,000, 250. Like I just told you about the burnt house and everything. that would have been 600 and change, right? The money is there. The banks are we're lending this. It's just people are not taking advantage of this.

[00:36:42]So, if we want to find out some more information because you're not going to give out all details. How do we find this out?

[00:36:49][clears throat] So, [laughter] I'mma be have a personal conversation. [snorts] >> Yeah. You know what? No, I'mma be careful because when I tell people to email me, y'all email me novels or questions. And you know [laughter] what?

[00:37:01]I'm just ignoring 90% of y'all. I'm just ignoring because I keep saying don't email me a novel. Only email if you want to apply. So, I don't want to say email me cuz like unless you got a deal, right? Unless you got a second opinion, you're in contract, you're about to sign a contract, you can email me, right?

[00:37:21]Garlandb.com.

[00:37:23]But let me ask you guys, should I do another master? You know what I want to do? You know what I want to do?

[00:37:30]Cuz I said here, I think it was a couple like last week, I was saying that I want to do a two-day master class um in New York um in my classroom um and do a two-day master class. I was talking about more so real estate investing, but maybe I'll do I'll do rehab financing as well into that master class. I want to do it like the first weekend of June. So yeah, maybe maybe I um I'll just do that. If you want to find out more, maybe you're going to pay $4.97 to come to this class with 50 other students and it'll be an intimate two-day of learning and lunch will be served both days, but you're going to have to pay 4.97 to enter.

[00:38:13]>> And for two days?

[00:38:14]>> Yeah. For two days. Like cuz look, look, let's call it spade a spade. I want people who are serious.

[00:38:21]Yeah, >> like period point blank. I'm not I'm not in the um business to just sit here and entertain people. I want to close deals and I want to work with people who are serious. And if it's free for me crowd doesn't work for me no more. I've tried that. I've done a lot of free things, whether it's in-person classes, I've done virtual classes for free, and I still might do some of those from time to time, but right now, I just find it just it it takes up a lot of space in my life. Like, it takes a lot of time where it doesn't it's it's busy work versus being productive. And I and this is something I always tell you to I don't want to be busy. I want to be productive. And yeah, >> I want to work with people >> and teach people who want to be productive too.

[00:39:13]>> Who are just coming not coming to this class just saying oh one day I might buy. No, you want to come to this class if you're saying within the next six months within the next 12 months I'm willing to invest into myself. I don't want to I don't want people in my energy no more that are not willing to invest in themselves. people who just want everything for free. For me, it just doesn't work for me no more because I find those people never take action.

[00:39:43]So, it'll be a$4.97 investment. It'll be the first weekend of June.

[00:39:49]Maybe I'll make a link tonight and put it in the description of this video tomorrow sometime. But, if you can DM me on Instagram and say, "I want to I want to be a part of that class first week of June." And then when I make the link, I'll send it to you. But that that'll be the way. If you really want to learn, come to the class, man. Come to the class and then from there we can pre-approve you um the next day, pre-approve you. You can bring your docs. We can talk about your financials like and get you right. Like cuz my thing right now is and it's different from what I used to always do to like and you've known this like I've done classes and I I don't sell an offer. I'm not talking about mortgages. I'm not talking about getting preapproved.

[00:40:30]>> I've done that for years where I just give the information. and I just want to go home. Now I'm like, nah, I want to scale my mortgage business and I'm not going to be shy about that. I want every [ __ ] loan that I can possibly get, but I want to work with serious people.

[00:40:44]I don't I can't waste I don't have the bandwidth. Like, it's just God's honest truth. I just don't have the bandwidth to answer novels of questions. I just don't have it in me. My team doesn't have it in them. We have to focus on the people who are in our pipeline so we can help them get to the closing table so we can maintain excellent communication and excellent service. So we have to prioritize and this is a conversation we was having off the camera. It's about prioritizing >> what's important to you >> as a business owner so that way you make sure you're making money too at the same time because nobody here who's watching this live including me and you who are on this show is working for free.

[00:41:26]Like we all have bills, we all have responsibilities and we all have goals.

[00:41:31]So I just found out if people are not willing to invest in themselves, I just don't think I'm the right fit for you.

[00:41:38]So DM me if you're interested in attending this class first weekend of June. It'll be a two-day master mastermind here in New York. Uh 50 people only.

[00:41:49]And yeah, that's what we're going to do.

[00:41:52]Matter of fact, I'mma put a flyer out and everything tomorrow about this. You know what you should do? Just had an idea. I don't know if you have Twitter.

[00:41:59]Maybe you should just have people ask questions on there and then if they want the questions answered.

[00:42:04]>> Folks, that's busy working.

[00:42:06]No, but you don't have to do anything.

[00:42:08]The questions just go up on your Twitter. You're not you're not managing it. But I'm saying if you want topics every it's like a poll or something.

[00:42:15]No.

[00:42:16]>> Uh yeah, basically like people would just ask questions on there and then if you want before a video starts you can just go on Twitter and just check and scroll through to see what you know topics they have. It's the same thing as a chat, but you just have the Twitter there and they just ask questions on there and that way when you go live and you want to cover a topic.

[00:42:32]>> Yeah. But then they gonna be pissed off that I don't answer their questions.

[00:42:36]Yeah, but it's like if we don't answer every question in the live. So, it's kind of like the same thing, you know, it's at least a chance to get your question answered that way, you know, just somewhere for people to go and ask questions if they have more detailed um questions to ask.

[00:42:51]Just an idea because if not, where do those people who have more detailed questions go to? You know, that could be a topic for a video which can lead to more leads if you cover those topics in the grand scheme of things. I'm just thinking. I don't know.

[00:43:07]Just an idea.

[00:43:08]>> You You giving me busy work. [laughter] Just saying.

[00:43:12]>> Yo, you giving me >> No, there's no busy work. You just make a Twitter. You already have a Twitter probably. Make a Twitter. Leave.

[00:43:17]>> You're giving me more busy work. And I just said I don't want busy work.

[00:43:20][laughter] >> You don't got to deal with nothing. You just >> Now I got to go post something. Go look a week later.

[00:43:26]>> No, you're not posting anything. It's just >> How about this? Let's do it like this.

[00:43:30]If you got questions, leave a comment.

[00:43:34]Just leave a comment on the video, >> right? We don't need to take it off the platform. I rather you leave a comment.

[00:43:40]If you got a question, I rather you leave a comment on the videos. Instead of emailing me a novel, just leave the question here on the video.

[00:43:51]>> And then I can come back when I'm perusing or I'm on a toilet or something looking at my feed, right? And I can answer questions.

[00:44:02]I'm on a plane for three hours. I can sit there and answer questions easily on the comments and that way everyone learns versus emailing me a novel. Just leave the question here and if I see the question I think it's a good topic to talk about, then I'll just talk about I'll answer questions on live.

[00:44:25]I'd rather that than going to Twitter or my email being flooded with novels.

[00:44:34]>> The class man that that works for me because now that helps the algorithm too.

[00:44:41]>> So now the algorithm will push that to more people on YouTube because they see people are engaged in this type of content. So if you got a question, leave it in the comment. Please don't email it to me. Leave it in the comment because if you email it to me now, that's probably gonna be my response on the video you watch. Please leave this question in the comments [laughter] and I'll answer it there. That's what I'm going to do. And and the classes will take place in New York for for those of you who are asking.

[00:45:16]>> Yeah. So, I'm I'm I'm I'm good on this topic. Chat, tell me, man. Did y'all learn something um tonight? Uh, drop a gem in the chat if you learn something.

[00:45:25]I know one thing, this margarita is busting right now. [snorts] I ain't gonna hold you up. Make sure y'all like the video, okay? We ain't got enough likes. Shout out to everybody who's watching us live um here right now. Uh again, if you're looking to get preapproved, if you are ready to close on a deal in real estate and you want to work with me and my team, please, please, please, please respect my boundaries.

[00:45:56]Respect the boundaries. Um, only email me if you are in contract, you want to refinance, not that you preapproved and you want a second opinion on a pre-approval because if you're not looking to buy in the next 12, if you're looking to buy in the next three months, then yeah, pre email me your loan estimates, right? If you in in the contract for a deal, email me your loan estimates, right? I can review them. Um, if you want to refinance, send me your mortgage statements and tell me your scenarios, right? email me. But if you just got general questions, leave the comments in the videos, please, and I'll answer them there. But this email is for business purposes only, closing deals only. So, if you're ready to take action and close, please email Garland.com.

[00:46:46]Everything else, leave it in the chat so everybody can learn.

[00:46:52]>> Cool. Awesome. Well, thank you for your time, MG, as always.

[00:46:56]>> So, to hold on before we before we wrap this [ __ ] up, tell the people about your platform because folks been asking in the comments how they watch your content.

[00:47:05]>> Uh, so I am the host of Street Alpha podcast. It is the number one racing podcast in the world. Uh, I started it about two actually going on three years now. Um, after working with Matt and, um, I drop podcast pretty much every week. So, I've been doing that for, like I said, three years, and it's just been a consistent thing. And it's allowed me to kind of um still grow Tukes Productions because it's scaled to uh a place where I didn't think it would. And now I'm able to be in a conversation with Matt about buying homes. So, I'm pretty grateful. And I got to thank Matt for that, too, because he saw the vision before it even happened, and I just uh did my own thing after that. So yeah, thank you Matt for that for letting me go and firing me so I could start.

[00:47:56]>> First of all, I didn't fire you. First of all, [laughter] I didn't fire you. I was trying to tell you to boss up for years.

[00:48:02]>> He fired me. He said, "Hey, man. This ain't working out no more. Go do your thing."

[00:48:05]>> No, because you was pissing me off. And at some point, I'm like, "Yo, [ __ ] you."

[00:48:09][laughter] Like, you know what? You're pissing me off now. I I had enough of your [ __ ] >> Like, [laughter] Tus is an [ __ ] y'all. Like, he's a good dude, but he could be an [ __ ] And when you have two [ __ ] in the same room who are both stubborn and alpha, it's like, nah, bro. I'm the boss in this situation. So, you know what? [laughter] You can go, [ __ ] Like, >> no, I met you in the nicest way possible, though. No, I wasn't I wasn't trying to be mean. Um, >> neither was I. That's why we on the channel right now talking. Like, you're my little brother. So, it's not it's never no love loss. It's just like, all right, but y'all got to understand Tukes has been working with me since 2017, >> right? like this wasn't like so what y'all started seeing in like 2022 2023 you have to understand we was already in six seven years already you know what I'm saying like >> like we've been working like Tou is the first videographer I ever hired in my life for for content you know what I'm saying so he's seen the growth from the very beginning I learned a lot from him but ultimately I'm still the boss of my [ __ ] and Tukes be on his own [ __ ] sometimes so like [ __ ] like But but I would always tell Tukes, you need to grow up >> and level up. Like if you want to do your own thing, >> I'm giving you a platform and opportunity to grow into your own brand and your own business. But Touques, for years, he did not see himself in that role.

[00:49:34]>> You it you didn't see yourself. You have to be able to see yourself in greatness in order to achieve greatness. And sometimes it takes a little while longer than others. We've all been there. But when I'm seeing the greatness in you, that's why I kept on pushing you like, "Yo, you can do this, you can do that, run this, run that." But you wasn't seeing it for yourself. It was a lack of just not seeing the vision of what you could be today. And now I'm just proud that you you've been doing it and you scaling and like you're entrepreneur. I remember when you started working for me, you quit your job.

[00:50:11]Like you literally quit your job.

[00:50:13]>> Like you haven't worked a job [laughter] like I mean you worked for me but like I'm talking about like a a big corporation type vibe like since 2017.

[00:50:25]>> Yeah. 2016 actually 2016.

[00:50:28]>> I was on my own before. So yeah.

[00:50:30]>> This is what I'm saying though, bro. So like ultimately you had to see yourself.

[00:50:35]You didn't see yourself at first in the road that you in now, but I already saw that and that's what I kept on trying to push you into. But it's better late than never. You're here now and you've been on your own going on three years and making money like you're successful now.

[00:50:48]You really in position, financial position to really buy a house now. And it's a wonderful thing. And I even told you before we got online, no one should be thriving to work for somebody for 20, 30 years.

[00:51:00][ __ ] that.

[00:51:02]>> [laughter] >> At some point you got to say unless you got like a city job or something like that, the military, you know, something like that. You work a big law firm, like okay, you can retire and do that. But when you >> like if you don't have like a highpaying corporate type of role, something like that, like yeah, >> no, you should be striving for finding your job at some point, >> right? making enough income to where you can replace that and buy your freedom because life is short. Like I saw a post I saw a post uh I think it was like yesterday and they broke down this they had 24 hours like written down from every time from from midnight to like midnight, right? And every hour written down. So you sleep in seven hours, six to seven hours, cut that time out, right? If you working a 9 to5, that's eight hours. Cut that time out. Then you got people always say you got a nine to five and then you got a six to nine. But you gota remember you got to commute from home.

[00:52:04]>> Yeah.

[00:52:05]>> From your work to your home. And if you have children, you got to take care of your kids, cook, check homework, do all that other stuff. So you might not have a 6 to 9. You might only have really 8 and 900 p.m. for yourself. And then by that time you might be mentally exhausted and can't focus on your side business or something like that. So if you're not crushing it with your 9-5, you absolutely have to figure out how do you make more money to to live or potentially buy your freedom back.

[00:52:42]Cuz I don't know about y'all, paying bills is ghetto. Working till you like 100 is ghetto. like and not being able to live the way you want to live. All that [ __ ] is ghetto to me.

[00:52:55]I want to be able to live. I don't know about y'all.

[00:52:58]>> I agree.

[00:52:59]>> And everybody should strive to be to want to live a life of what they're choosing, not a life of just routine and I got to do this and I hate my life.

[00:53:13]That's not a good life to live, man.

[00:53:16]And with with this, we all have that opportunity. I'm sorry.

[00:53:22]It's just only you you gonna take the opportunity and run with it or you not.

[00:53:27]>> So, I say all that to say that's why I'm proud of you because you said, "All right, I'm out of here. [ __ ] this. I'mma do my own thing." And now you up and stuck.

[00:53:38]Salute the >> I mean, I didn't I didn't quit. I didn't I didn't quit like that. But, you know.

[00:53:42]Yeah.

[00:53:43]>> No, you didn't quit like that. And I didn't find you like [laughter] that like that.

[00:53:47]>> No, we had a conversation like men.

[00:53:49]>> Yeah.

[00:53:50]>> And it was like there was no bridges burnt. There was no love loss. It was just like okay. We we were working together at that point. When you this is three years now.

[00:54:01]>> So that's 2023. So that was what six years almost seven years of working together. Your creative mind and what you wanted to do. You've grown. You elevated. Bro, you've been with me from the beginning. So, you saw my level up from the very beginning. Like, I was already making money, but then you saw the explosion. You know what I'm saying?

[00:54:24]And then you saw everything around me >> explode, too. So, it's like if you don't get motivated by that [ __ ] from EL to the Traps to everybody, >> right? Like, you're one person who've been around everybody who's hot right now. You've been around all of these people from when they wasn't hot.

[00:54:44]>> Yeah.

[00:54:45]>> And when you No, it's God's honest truth.

[00:54:48]>> From a Kiana to this to that to whoever you mention, Tukes has been in their presence, been working with them behind the scenes, been having conversations with people like he's been like with envy with everybody. You know what I'm saying? So, you've seen everything that most people are not even don't even understand like all of that behind the scenes stuff that you've been privileged to like and the conversations and being in certain rooms that we never even posted about and like having these scene hearing these conversations from people who are getting to it. Not just the people we just mentioned, but I'm talking about rich rich people. You know what I'm saying?

[00:55:30]>> Yeah. And if you don't want to level up, if you're around that success, it's like what are you doing with your life? You have to feel some sort of like I got to get mine too, right? And ain't nothing wrong with somebody saying I'mma get mine, too. Nothing wrong with it. So, I'm proud of you, bro.

[00:55:49]>> Appreciate it, man.

[00:55:50]>> I'm drink [laughter] my water.

[00:55:54]>> H how they how they how they find you on on on YouTube and all that stuff, bro?

[00:55:59]Uh, the Street Alpha podcast. Um, YouTube, Facebook, not on Twitter, uh, Instagram, Tik Tok. I was on Snapchat, but I don't really post on there, but pretty much all platforms and then all streaming platforms as well, you know, Apple, uh, Spotify, Amazon Music, Pandora, whatever there is. Um, all those platforms. So, you can listen on there and then you can watch on YouTube if you want.

[00:56:25]>> There you have it, ladies and gentlemen.

[00:56:27]Um, we're coming up on an hour. Uh, everybody, if you got if you got value from today's conversation with Touques, drop some gems in the comments, please.

[00:56:36]Uh, make sure you hit that like button, subscribe, hit the bell for notifications, and, um, yeah, man. Check the description for all the links and all that other good stuff. And I'll be back probably, um, I think I'mma come live tomorrow. Um, I'll come live tomorrow.

[00:56:53]I'll do some teaching um, tomorrow, too.

[00:56:56]And um yeah, because it's a lot of stuff that's happening in the market and stuff like that that I want to talk about. So, we'll do that tomorrow, probably like 900 PM Eastern Standard Time, tomorrow, Wednesday, May 6. Uh so, tap in with that. But Tukes, I appreciate you, bro.

[00:57:12]Um >> like >> YouTube chat, if you got any questions, type it in the chat. um not in his live chat, but once the video uploads to YouTube, so everybody can see it. Type your questions. All right, there you have it, ladies and gentlemen. We out of here. Uh I'll see y'all tomorrow. Peace.