WARNING Mortgage Brokers are GOING TO START PUSHING ARM, Debt Consolidation, etc. Please Do the Math

Video Closed Captioning:

good morning good afternoon good evening

folks michael’s uber one rental at a

time it is friday and that means we tap

to the man the myth the legend who has


allowed me to refi some apartments and

office buildings into 30-year fixed-rate

mortgages yeah i know steven dow how you

doing man did you like that i was

screaming for you i i did i felt the

energy man

that’s why i don’t drink coffee i just

you know watch your videos every morning

and get that little jolt and get me

going man

one of the things i wanted to talk about

here well first off let me do the

marketing thing first because i’m about

to get a little cranky so go ahead

all again although i work happily for

velocity mortgage capital all the ideas

and topics discussed on the channel are

that of my own and uh yeah let’s get to


why am i talking again yeah

so um i’m gonna lump you

yeah i’m gonna love all mortgage brokers

together today right yes yes

i believe the mortgage market is i’ve

shared before right i did a video

earlier in the week where i said cash

out or refinances

mainly in the residential space are

going to fall 75

uh very quickly because rates are going

up 60 percent of loans have already been

refined in the last two years 48 of them

have a two on it it’s just like

you know the refi business is going to


right what that means is people are

going to get um

stressed they’re going to start missing


they’re going to start creating exotic


and they are going to start the high


high high high

high high high pressure


adjustable straight


yeah they’re going to sell payment and

they’re going to say hey you’ve seen the

rates go up let me get you that other


salesman kind of mentality when you step

on the lot how much can you what are you

looking to pay

what do you mean what am i looking to


what’s interesting what’s good car

you’re saying you know me so yeah almost

the same thing but go ahead yeah so a

couple of things i

i don’t you know i’m just going to keep

being real adjustable mortgages in my

opinion in this environment in this


are without question the wrong idea for

99 of you there may be unique personal

financial situations

where a adjustable rate mortgage makes


but if you have to think for a moment

it is not right for you

right it is not right for you if you are

following one rental at a time and

you’re in my course so you’re following

me and you want to get one of these

cards and you get

an adjustable rate mortgage on a rental


shame on you

it’s this is not the environment rates

are going to be going up i think rents

will flatten i think this is the time to

de-risk again

i do this business i told you what i’ve

done i’ve gotten 30-year fixed rate

mortgage i refined with 30-year fix i

would not you could not pay me to get an

adjustable rate mortgage today because i

have been doing this for 20 some odd

years i am afraid about 2025

not happening so

your industry maybe it’s the industry

you came from in the 08 crisis

you all are about to get starved shark

pressure man it’s it’s the big short you



drives me crazy


i mean again

yeah the only you’re as good as your

last month yeah exactly yeah as a

mortgage broker if no one else is

refinancing because you know they got a

ton of them did them in the twos and you

know low threes and now they’re going up

into the possible fours


you’re getting like you said sparingly

small percentage of the you know

outliers of oh well if i combine all of

my debt and pay for all these credit

cards and do a cash out even though you

know it’s a higher interest rate but my

overall cash you know payment uh to paid

off is lower that’s gonna be the next

sale of course it would be the other


how many pools consolidation yeah yeah

you know don’t you yeah all that stuff

so you know i came from that world you

know i know yeah

it’s it’s icky it’s an icky

it is a great area as far as you know i

never tried to push that angle as much

as just kind of what their specific

needs were yeah and i can’t kind of make

a judgment from what their needs are i

just try to come up with the best

product yeah

uh just to kind of you know uh uh uh

help out with that situation uh as far

as that are available you know

but other than that yeah

i don’t wanna i i gotta be really

careful right i’m talking about the

industry i don’t know what it is maybe

it’s half of them well first and

foremost the industry is about to get


oh no i know this i have a lot of

friends that are you know in the retail

side they’re seeing a slow down yeah

yeah so it’s about to be smaller uh when

that happens again i’ve been i’ve been

through several business recessions in

my career

people you’ll have layoffs and you’ll

have to get creative you still gotta you

still gotta cover overhead

right i get it


i have chosen you and matt the mortgage

guy because i believe both of you are

about asking questions

yes right like what are you trying to do

what is this how long are you going to

hold the property all of that right but

yeah man i uh i feel bad for the average


because they’re about to get hammered i

can already see hey have you ever

thought about putting in a pool have you

uh how many credit cards do you have do

you have a car loan i mean it’s the

collection and for most people that’s

just that’s just recipe for disaster

because a let’s just say you had 50

grand in high credit cards 21 interest

it makes financial sense to do it

right right put the 50k on your house

your total payment goes down blah blah

blah but let’s just be honest

right behavior average consumer is going

to do that and their 50 000 dollar

credit card will be charged up within

two months

right oh i’m free oh i’m off this debt

burden oh my god

exactly what uh man we need we need to

talk about money more we need to do all

these things so yeah do

if you’re following one rental at a time

discipline daily discipline day so it

starts yes don’t do it overnight like oh

yeah no you’re gonna just save all this

money overnight and if you do this well

you don’t change your mindset first

you’re never going to change the outcome

you know what i mean so

that’s yeah i think we should we

more people should be talking about that

and i don’t think enough and so because

nobody’s really i think as real to

themselves where it’s like oh no i’m

just about this yeah but you still

haven’t changed the mindset of why do

you need all these jordans that come out

every month and why do you need to get

five pairs of you know sunglasses you

know designer why do you you know

whatever the case is yeah whatever that

is it’s a mindset but uh yeah it’s

short-term fix right now or adjustables

not in this environment it’s just uh

gambling you know in three or five years

that rates are going to be better

otherwise when you have to get refinance

again what’s the offset of the value of

having to do it again rates are going to

be higher more you know more uh closing

costs and can you afford the adjustment

who knows what the you know situation

with the rental property is maybe yeah

somebody you know maybe partly became

vacant or whatever the case is now

it’s just not stable in my sense it’s


a good piece of mind it’s too again i’ve

been doing this too long so i’m maybe

i’m looking too far ahead but i just got

to do it i’m like nope 30-year fix good

for me the other thing we’ll talk about

is wrapping this up is if you’re buying

a new deal today that’s commercial

apartments you know 20 because again

i’ve only bought it for 20 units so

let’s say i’m buying another 20 unit

building i would come to you first

because i want that 30-year fix because

i don’t know what’s going to happen to


taxes all these other expenses i want to

make sure my biggest expense which is a


is fixed and now

i may pay higher percentage today but

i’m not really buying today i’m buying

25 in 2030 and 2030

right when you do the overall yeah

calculations if you’re in a short term

for like you know five years and then do

it like all week 10 years from now


the amount of interest i mean again it’s

such a moving variable as far as what

interest rates would be like after the

five year intervals but in increasing


you end up paying less interest on that

fixed rate because it was fixed at a

lower rate at that time when you first

got it versus five years later when

rates went up and so you’re paying

interest rates higher it’s just kind of


overall you gotta have to project on

even further that second third loan of

adjustables where rates are going to be

at but i i think once you lock in at

that 30 or fixed there’s no more

additional closing costs um because

again now whatever you saved before from

that previous loan you have to kind of

recoup that cost back a little bit to

try to see what your overall savings so

in the big picture 30-year fixed in an

increasing market i think especially the

fact that on commercial

it’s a 30-year amortization so sure the

interest rate seems a little bit higher

but your cash flow might be about the

same if not low or if not better and

it’s fixed for 30 years so i don’t know

so i would agree with you if i had that

opportunity to buy more

right now just a comparison and a lot of

people are seeing it that way as well

because less

stress and

uh uh issues to get the financing

um less restrictions because you can

hold titles in entity uh and of course

um the fact that it’s 30-year fixed and

30 are amortized you have the best of

both worlds and i still have the feature

of adding the 10-year interest only

option i know you don’t like that yeah

you believe in it i know but some people

kind of remember that you get the fixed

period but you have the ability

they’re just more or less have that as

an insurance policy they may not use it

but if they need it it get you know it

helps out so and it’s not as expensive

uh and there’s other strategies with

their perspective but anyway i wanted to

put that out there but third year fixed

upon money all day long yeah and again

for me i if i was going to evaluate a

deal today that’s all i’d be using and

if the numbers didn’t work i would have

to get a better price i mean it’s just

that simple

it is do the work numbers don’t lie none

of this fluff of multi-syllabic

adjectives if you just do the work give

me a call we’ll crunch some actual hard

numbers i’ll give you all the actual

fees price everything exact never

changes from start to finish unless your

your fico score changes when i pull it

otherwise what i’m calling you up front

because we’re not tied into the 10 year

treasury it’s not as volatile i don’t

have to pull credit right away to see

what we need to lock and reprice later

on it’s good for right now but

oh let me think about it no we don’t

have that option so if whatever

experience just took place with the

secondary market the appetite change

yeah we got to change with the times and

so that might be sudden and abrupt which

is what’s happening but we’re just

saying hey don’t wait not to confuse

pressure with urgency i’m not trying to

tell you hurry up because i’m trying to

get paid faster it’s just reality

on the move so make a move quickly there

you go well stephen uh people can reach

out to you s dao at velocitymortgage.com

it is in the show notes below

uh make sure you put o-r-a-a-t in the

subject line and uh yes we’ll get it

going for the description of what you’re

looking for right in the body of the

email uh bit factor score you know

probably type seating state at least if

not the address uh your telephone number

i can reach you back at and then yeah

let’s make let’s make it happen very

cool thanks brother next time

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