Closed Captioning:
good morning good afternoon good evening
folks michael zuber one rinse line of
time back with this friday expert mr
stephen dao how you doing sir
fantastic yourself i’m doing well you
dropped a bomb on me at the end of
episode two uh i had i don’t think i’ve
heard about this we may have talked
about it very early on a year ago but it
escaped my memory so right before i get
into it i almost forgot uh yeah
marketing spiel
again although i worked very happily for
velocity mortgage capital all the ideas
and topics
pontificated on this channel of that of
my own so let’s get it going pontificate
for you uh lumberjack landlord yes sir
anyway
wicked smart that guy hey at the end of
episode two you talked about a no
potential to get a 90 percent loan
uh via velocity mortgage potentially
right you know a couple of things got to
line up but dude that’s um
that’s uh that’s pretty sexy so uh i
mean again depending upon the situation
and if seller is willingly able to and
you know you’re
kind of savvy uh with the
creative financing structure um as it
pertains to seller financing so
uh long story short we offer up to a 90
cltv or combined loan to value so if i’m
doing 75 ltv on my first loan
and if the seller has enough equity and
it’s willing to carry say up to a 15
second then the buyers just have to come
into ten percent
so
that allows for a lower down payment uh
you stay more liquid you can spend more
transactions yadda yadda yadda
and of course the benefits of the seller
they can reduce their capital gains tax
it that year kick the can down the road
defer that a little bit and of course
make interest money on their money so
they’ll play the role the bank so
there’s a win-win for everybody involved
for the most part so this is exciting
because i wrote about in my first book i
think it was ferris
where i tried to buy that properly i
think was the third property we bought
or i bought and um
it actually talks about getting a seller
to take back i think it was a 10 second
it might have been a 15.
but it was all to get me to that ninety
percent i guess i didn’t even know what
it was called clv combined loans cl tv
right
i never even heard it combined loan to
value yep all right now i get it
combined loan to value look at that cltv
uh it is very powerful max leverage so a
couple quick questions just because i’ve
been in this game a while uh
how do you evalu so first off it has to
be a second velocity is always first
correct correct
totally makes sense and in any
combination so ideally especially on the
residential side at every you know five
percent ltv below the program maximum
you get to lower your rate an additional
say like eighth of a point so
there are you know
uh um advantages to structuring it that
way for financing so at say
50 lte that gives you the best rates
right um so let’s just say ideally we do
50
seller carries 40
you come in with 10. so don’t know if
that would be an option but that oh
typically seller financing is typically
you know the best in comparison uh to
you know
or anybody else i think let me just be
very clear with my fans in any of my
students that are watching this is a
tool i will be adding to my toolbox
again it’s a conversation right in my
course we have a seller financing
section in my course we have a cpa
talking about seller financing and why
the tax benefits i am going to have a 50
40 10 conversation
right you have a landlord he’s owned the
property he’s free and clear uh he wants
a little money now because he wants to
go get on a trip and enjoy this or that
right
he gets 50 let’s just put some numbers
on this half a million bucks
right he gets 250k i don’t know he loses
i don’t know five percent to selling
costs and title and blah blah blah so he
walks away with what would that be so
five percent yeah with the 10 down plus
50 yeah yeah so he gets he gets so he
gets 50 velocity 10 percent for me
so that’s so 500 six seven thousand
three hundred grand
okay half a million bucks he walks with
300 he pays 50 grand for gotcha
right he’s got 250 grand to go play with
right
then he’s got
40 which would be 2 uh 200 grand where
he’s collecting interest
so not only can he go flex
and buy that thing but he’s also getting
some income and oh by the way he lowered
his year one taxes
because he’s delayed roughly or he
delayed 40 of it to the future right
right dude i am gonna this 50 40 10 is a
net new strategy for me i think all of
my followers need to pick it up
um we should talk about this in my
saturday live stream 50 40 10. it’s it’s
this is cool
okay
so you’re gonna you’re gonna indenture
me into servitude again on saturday too
well i’m either that i’m just going to
talk about it
i’m kidding i mean i work out saturday’s
anyway mike so yeah yeah this is
something we got to bring up 50 40 money
waits for nobody so that’s why i say a
lot of times so i talked a lot of people
from the channel over the weekend dude
50 40 think about it just again have
again i i give you everything right i
have a cpa talking about how to pitch
seller financing right now you have a
strategy because again when you pitch
seller strategy most of them and i have
almost three million bucks in seller
finance notes
all the conversations are the same they
all want some money now
right every seller i’ve done a deal with
is over 60 right seller financing a
couple of them are over 70 the the year
one
all of them want some money now because
they want to do something
some people wanted a trip some people
wanted to do something for their kids or
their grandkids
they all wanted some money now
all of them love the idea of maintaining
income and removing the hassle
of managing units
all of these folks want the income
they just don’t know what’s possible
so pitch the 50 40 10. it could be a 60
30
10.
right and you’re only and then so the
one question i do have
yep do you look at um what would it be
called debt service at all because again
you could get wacky turns not on
residential
wow one to four unit no dser with us so
again this is where
you go conventional financing first then
you go alt well you get declined uh from
them then it’s usually you know quote
all day with bank statement programs
uh and if you don’t qualify with them
because they typically require you know
dscr
uh that’s when you would come to us so
again uh we’re not gonna be everything
to everybody but we what we do we do
very well and at some point
either your income is gonna increase you
know exponentially along with the rental
income as you take on new debt
either bank statements and or
um you know full doc you’re just not
going to qualify you know what i’m
saying at least from the tighter
guidelines that they require just with
rates going up and a lot of times the
higher end properties won’t gstr yeah
once you get to above like 1.5 million
nope i mean you’re not gonna at least on
paper collect enough at least from their
guidelines to
you know qualify so that’s where we’re
we’re very strong in the space between
up to 5 million i’m so excited about
this 50 40 10 i just want to make sure
it’s available so again 50 40 10
residential we already talked about 50
40 10 apartments 50 40 10 offices every
product that you do other loans you have
the cltv hey see i remembered it that
time cl tv is available for all of them
so 50 40 10 could be a portfolio loans
blanket loans yup everything
yep
nice right i can’t wait to bring you
another low this
okay well don’t threaten me with a good
time
all right folks a lot of you need to be
really thinking about this 50 40 10
product it is super sexy again i would
tell you to work on the second again
i’ve done i’ve done uh seller loans as
little as one two three percent interest
you can get creative um i’ve done one at
zero percent financing it was a first
not a second um
but again it’s all out there and it’s
all possible
uh stephen this so this is a good idea
50 40 10 how do you want them to reach
out
s dao svao at velocity mortgage spelled
out dot com subject line just put
o-r-a-a-t which stands for one run at a
time in the bottom email just maybe a
brief description what you’re good for
property type at least the city and
state where your problem is located or
maybe the address uh and then of course
your midfield score best number retract
24 24 to 48 hours excuse me i’ll
typically be in contact folks uh this is
gonna probably post at one o’clock today
i expect uh steven to have a dozen
maybe 20 emails today or tomorrow
okay i’m not joking 50 40 10 is such a
sexy idea because again you could play
with the 40 control that payment
uh right the seller gets what they want
it is a strategy i will be deploying and
others should as well just gotta run the
numbers you know don’t lie and just do
the work you know what i mean that’s all
it is so do the work give me a call i’m
here to run some numbers alrighty buddy
thank you very much take care this one
was fun
thanks man youtube