Thankful Investor – John Martinez

 

Hey, welcome back for another segment! This is the 3rd and final segment that I wanted to share with you from my recent live event called the Thankful Real Estate Investor. We hosted this live right before Thanksgiving and it was an interactive event. Our 3rd speaker is Mr. John Martinez, the top real estate investor sales trainer! Let’s get started!

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Resources and Links from this show:

  • Investor Fuel Real Estate Mastermind
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  • Investor Machine Real Estate Lead Generation

Listen to the Audio Version of this Episode

FlipNerd Show Transcript:

[00:00:00] Mike: [00:00:00] Professional real estate investors are a different breed. We’re not afraid to go all in and take educated risks to build stronger businesses and help our families live better lives.

This is the FlipNerd professional real estate investor show. And I’m your host Mike Hambright each week. I host a new episode live and bring you America’s top real estate investors as guests.

Let’s start today’s show. Hey everybody. Welcome back for another segment. This is the. The third segment of three that I wanted to share with you from my recent live events called the thankful real estate investor. We hosted this live right before Thanksgiving. It was an interactive segment. So, uh, hopefully if you weren’t there, you’ll join us on an upcoming events.

Uh, our third speaker is mr. John Martinez, by the way, I’d love for you to join us at our future live events. We’re going to be doing these several times a month, going forward events like this that are live and interactive, answering your questions in our private. FlipNerd Facebook group. The way you [00:01:00] get access to that group is you go to flipnerd.com/pro event has a hyphen there pro dash event flipnerd.com/pro-event.

Make sure you go there and register. We’ll get you in the group and you can join us if you didn’t this time on our next live and interactive, uh, event. Let’s go ahead and jump in with mr. John Martinez.

I’m going to bring my buddy John Martinez and. John, how are you? You’re a little bit cut off. I think.

John: [00:01:27] Let me adjust the camera here.

Mike: [00:01:30] We want to see your good side.

John: [00:01:34] So you have to just deal with it.

Mike: [00:01:37] Yeah. So how are you? My friend.

John: [00:01:38] I’m good. I’m good. How are you  doing? How are you doing Mike?

Mike: [00:01:41] Good. Good. So as we’re kind of getting started here, I’ll ask a really a couple of things. First is if you guys have questions for John, if you don’t know John.

That’d be kind of unusual. So if you know, John is, and you want to ask some questions about what’s working now from a sales technique standpoint, or an approach of how you handle your leads, start to chat those in I’d love to get to your [00:02:00] questions. In the meantime, John, while we’re waiting on some questions, maybe you can share a little bit about what you’re most thankful about.

We’ve got so much to be thankful for. What would you share that, uh, I know you probably have, might have a long list if we had time to talk about it, but what are one of the things that come to mind that you’re most thankful for?

Uh, my health, uh, man, I turned 40 this year. So it’s funny how I that’s like more and more of a top of mine topic.

Like, uh, every year you get older. So, uh, turning 40 every day. I’m thankful for my health. Uh, thankful for parts of me that don’t hurt when I was picked up. And then, I mean the same with my family. Yeah, me too. My kids and my wife are all healthy. And I think, um, as long as you have that, you can basically basically get through anything else.

So that’s gotta be what I’m most grateful for.

Awesome. Awesome. Well, that’s great. So, so John, while we’re kind of waiting on some more questions, or maybe you could kind of share a little bit about what’s what’s working now, like we’ve been through, I wish we were through the COVID, so I don’t know if we’re through it earlier.

Trevor said we’re kind of. In the middle of this [00:03:00] code. And I’m like, hopefully we’re at the tail end. I don’t know where we’re at, but it’s, it’s changed. The dynamic has a lot of people that are doing stuff virtually now, or certainly vetting more out on the phone than they used to. What are, what are some of the things that are, that are kind of working now that people have had to adapt to over the last six or eight months?

Yeah. So it’s, you know, in sales, what’s worked for forever was having a plan or we call sales process. But I think it’s more important now than ever because we’re not doing as much kind of face to face or belly to belly selling. Um, so a lot of people who could kind of get away with just their wit and their good looks inside of a house and really building rapport that way and going buddy, buddy, and, um, having really good conversations because of, of that ability.

It’s it’s a lot harder to do that on the phone. So you have to start to rely on your plan or your sales process. I think even more now than ever before. Right? Your plan about what I want to accomplish during this call, how do I want it to begin? What do I want to, uh, [00:04:00] what’s the agenda for the middle? How do I want this thing to end?

What will, what will the acceptable outcomes be? Um, you know, if I run up against hidden decision makers, influencers, Pushback resistance. How am I going to deal with that? So I think it’s always, you know, the cornerstone of any good sales organization or sales person is, is process or having a plan. But I just think it’s more important right now than it’s ever been since we’re so disconnected.

Yep. Yep. So we’ve got a question from Matt here. That’s talking about kind of, how are you negotiate remotely? And I think, you know, a lot, like we just talked about a lot of people who have transitioned to doing this over the phone. And you lose some things on the phone, right? You don’t get to see the facial expressions or exactly how they’re living.

You don’t really get any indication of what the house is like by just walking in the front door. Um, maybe, can you maybe share some tips on how to make that transition for those that have had to make that transition that we’re buying at the kitchen table, if you will, to doing more over the phone?

John: [00:04:57] Yeah, I, I can’t so great point.

So usually in [00:05:00] a negotiation, you know, by the time you get there, A negotiation. You’ve got to walk a pretty tight line because you want to negotiate aggressively to get yourself the best deal. But at the same time, you don’t want to put yourself in a position where you, you upset someone or offend them in such a way that you kill your own deal.

Now, when you’re face to face, you can basically just read it. Right. Do you know the body language, the tonality? Um, no one can really hang up on you when they’re face-to-face either. Quit and say, get out of my house now they can, but it’s harder. Right? So in order to do that over the phone, one best practice I found what’s working right now is always assume the worst during the negotiation.

And then I’ll tell you what I mean by that. Um, you’re always safe if you assume the worst, um, uh, in a, in a sales negotiation and when it comes to keeping the conversation going and not offending someone or, or losing rapport. So here’s what I mean by that. Um, if you’re, if you’re making offers, you know, always assume that they’re not going to take it.

So here’s, here’s some examples, [00:06:00] uh, listen, I’d love to offer you a 75,000 for the property, but you know, based on this phone call, I’m guessing that if I offered that and I’m way out of the ballpark. Um, so, so you tell me, am I, am I, am I right? Am I in my way out of there? So just always assuming the worst there, you won’t put your prospect or the seller back on their heels and, and start that kind of confrontational negotiation.

So even as you go through the negotiation and you’re going back and forth, you know, Hey, I think I could offer you more money, but that would require you to, um, help it to clean out a little bit, or certainly shorten the timeframe or commit, uh, you know, within the next 48 hours. And, you know, we haven’t had a chance to think about that.

So I’m not sure if that, you know, the more, the extra money would even be worth, you know, you. Cleaning out a little bit more or painting the living room or getting their old car out of the garage. So I think, um, in order to be safe with negotiations, just err, on the side of caution and what it’ll actually do is it’ll build a, and it’s more amount of rapport.

It’ll [00:07:00] keep the conversation going. It’ll keep you out of that kind of enemy, confrontational battling type of negotiation and extend the conversation. So you can actually get through the negotiation and not end it prematurely.

Mike: [00:07:11] Yep. Good, good. That’s good stuff. So we’ve got another question here. I’m going to, I can’t tell with who the user is, but they’re saying what’s the best way to start a renegotiation or price with sellers.

So I don’t know the context of that, but let’s just say when people are buying virtually more frequently, now that they are, you’re making assumptions on repairs and stuff. And sometimes, you know, you find out that, you know, you told me the kitchen was remodeled, but it turns out is remodeled 20 years ago.

Right. And, uh, that it’s going to cost more. And so I think we all. You know, some people have an approach and I know John believes the same way that I do. You really want to use renegotiate as, as a. As a last defense, like you just really miss something and not this approach of like, well, I’m gonna try to lock it up and then go back and renegotiate.

I think we’re in agreement with how we, how we believe that. Um, but let’s just say we made [00:08:00] our best effort. We put an offer forward, an offer that we thought was good and later we found out we totally missed something or were misled on something. Cause we did it over the phone and we have to renegotiate.

So maybe talk about how to best start to renegotiate a deal with it. Somebody after they’ve agreed to something else.

John: [00:08:17] Yeah. So good question. So it pops up all the time. Um, it just happens. It’s the nature of the business is real estate and buying houses that are in disrepair or, or distressed sellers. Um, it’s going to happen.

So when you do it, you just need to really put yourself in the seller’s shoes when you go into that conversation. So here’s what I mean. We already know. And if you got one with a renegotiation and you’ve agreed to applies, and it might’ve been a tight negotiation to get to the price you originally agreed on.

When you go in and say the deal’s off, or I need even less, you have to understand how they’re going to feel. They’re going to be a little bit shocked. Um, they’re going to probably be a little upset and disappointed. And so as you go into the negotiation, first and foremost, you have to [00:09:00] realize what that will do.

If it’s with a seller it’s going to, they’re going to react the same way as is Mike, or I would react if we got upset or maybe even, you know, in that situation, you might even feel like you’re taking advantage of, or someone trying to pull one over on ya. Um, so you’ve got to realize that that’s going to be met with some type of resistance.

And now resistance in sales really shows itself in two ways. It’s either it’s kind of a fight or flight, right? If you get upset or you feel like you’re being taken advantage of, you’re either going to just shut it down and say fine, it’s off whatever. And I’m sure people have experienced that, right. They go in with the renegotiation and they just say, well, deal’s off.

No. Uh, or if there’s going to be a tremendous amount of pushback aggression, right. Um, get into a, uh, you know, a yelling confrontation or something like that. And that neither of those is going to lead to a smooth negotiation. I think we can agree on that. Right. If they’re shutting it down or, or getting pretty aggressive.

That’s not where you want to start off. So first and foremost, you got to know where your prospect’s mind is going to [00:10:00] be an address mindset first, before you get into the nego renegotiation. So knowing they’re upset, I’m just going to be open and honest and say, listen, I’ve got some bad news. I’m really reluctant to even bring it to you.

I feel like a schmuck because I know I’m going to rain on your parade today. Um, but I’ve, I’ve exhausted every option looking into this, and then we’ve got to have a really tough conversation and I want to let you know, I apologize up front because, um, it’s not going to be a fun one. Right. Uh, so if you see what I saw there, I just, I called the situation what it was.

Um, I took the temperature down using what we call tactical empathy in our sales training. Bye I’m going not okay. Just kind of, you know, going down and, and feeling bad cause you’re about to give bad news and that’s what a normal human being would do. Right. Um, and there’s some science behind it, but anyways, that’s it.

You want to go into it smoothly. And then, uh, I’m going to borrow from the last tip I gave, um, about negotiating over the phone. We want to, we want to come at it from a position where we’re [00:11:00] assuming the worst. So when I renegotiate, I started out just like I said, on the call, and then I’d say, listen, I, there’s no way I can pay 110 grand for the house.

It’s just based on what we found and everything going on. I, I can’t do it and I feel horrible about it, but I assume that if I had to pay even a dollar less, you don’t want to do it. And then just be quiet. Now, the reason why I didn’t say the number that I actually need is we feel tested this quite a bit.

And we found that we just say, you probably don’t want to sell at this point, or I’m not even sure I could buy at this point. Oftentimes sellers renegotiate down lower than, than what you need. Uh, I, I have countless emails and messages from people who said, I need a 10 K off. I went in with that exact read negotiating strategy.

And they said, well, would you take it if I took 20 K off? Right. And then, okay. Uh, so, so that’s it just know their mindsets slide into it, knowing you’re going to upset them and addressing and being real about it. And, and if it doesn’t [00:12:00] feel good to give bad news and don’t hide it, um, and then kind of go negative and assume that.

They’re not going to consider it or not like it, or you might not be able to get the deal done and then just go silent

Mike: [00:12:11] and see what happens. Yep. Yep. And I think some of it too is if you’re, if you shifted your model to bind more virtually, is there some things you can do to pre-frame that upfront? Like here’s our offer.

If part of your processes, we’re going to have an inspector come out and look what I want to try to give you a price. Now you can kind of pre-frame frame that is, uh, like we’re based on what you’ve told me. You know, here’s what we’ve come up with for repairs. And we’re going to have somebody come out and double check this.

And so you can kind of slip in there that in the event that any of that, that I missed anything here, we’ll find out and I’ll let you know, or right. You can kind of pre-frame them.

John: [00:12:44] Absolutely. Um, you know, that, that was kind of the assumption I was running with. No one likes surprises, prizes, especially bad news surprises.

So covering that upfront is definitely a best practice.

Mike: [00:12:56] Yeah. Good. We got a question here from our buddy John Harker, who [00:13:00] says hello?

John: [00:13:00] Hey John,

Mike: [00:13:01] uh, what do you do when a seller just won’t give you a price and just keeps. Saying look online. I don’t know what he means by that. Like,

John: [00:13:10] yeah. Maybe he’s, he’s referring to Zilla or do your research.

Mike: [00:13:13] They’re kind of celebrates online. They just won’t give you a price. And uh, so talk a little bit about what do you do when they just won’t show you their cards and they’re just waiting for you to give an offer.

John: [00:13:23] Yeah. So there’s a lot of strategies to get the number, but I want to come at this question two different ways.

Um, the first way is, okay, how do we get the number again? You’re probably seeing a pattern here. We’re going to pull back a little bit. Um, there there’s two ways to get it. One is I usually just suggest they don’t know the number cause people like to argue and push back. So one way to ask is. Listen, I’m guessing you don’t even know what you’d even what you’d want for the house we contacted.

You probably haven’t had time to do research, to think about it. That’s one way, another way to do it is to ask about a similar property. Oftentimes people don’t want to talk about themselves, but they’ll talk about their neighbors or a member of house in the [00:14:00] neighborhood. So another way you can ask is, Hey, listen, um, Houses in this neighborhood.

Do you know any that have sold recently? What are they going for? Right. And when you have a hundred K 200, 300 and you can kind of whittle it down from there real simply like really were you expecting to get more or less for yours? And now we’re starting to bracket them in and kind of drilling down on.

I was actually expecting a bit more. Well, why is that? Well, it’s a bigger house. It’s a nicer condition we rehab. So you can start to get to it in that round about way now, now that I gave the two ways that you’ll have more success doing it than just asking straight out, um, kind of some caution I want to throw out there.

Um, Oftentimes, unless you’re qualifying, let’s say this makes sense. If you’re qualifying, let’s say you have a bunch of leads and you want to find that, who am I going to work with? Who am I going to send my acquisitions out to? Who am I going to talk to? Where am I going to spend my time? Then you might be asking that price.

You, it’s a, it’s a level of your qualification. Now, if it’s not a level of your qualification, I’ll want to [00:15:00] caution you on asking what their expectations are, because it actually does more harm than it does. Good. Number one, it could get into your head. Um, I’ve worked with plenty of sales reps. Who’ve gone into sales calls gone.

We’re at two 50 for this house. They want 500 why even go, right? And they’re talking themselves out about, out of even showing up. But then when we show up and we run through the sales process and uncover some things, and sometimes those people actually sell for what they need to, right? No, one’s going to.

Call you up and you say, Hey, what would you like to sell for? And they’d say, Oh, 50% of what I think I could sell it for. That’s insane. Right? So sometimes that can kind of get in your head and stop you from even taking the appointment or really going full force at the appointment. The other negative.

About getting their offer is they’re setting expectations. And whenever you come in under it, cause you will come in under whatever they expect, 99 or 999 out of a thousand times. They’re going to be disappointed. [00:16:00] So, because I don’t want to disappoint them. I want to set expectations. I want to come in instead of saying, what would you like?

I’d like a hundred and me saying, I could give you 50 that’s bad. I’d rather go in and say, I’d love to give you 40, but with this, I think if we did it quickly, I could do 50. So then I’m setting, setting expectations. And then, uh, my comparison, it actually sounds a little sweeter. Um, so, so that’s my take on it.

So be careful asking, asking for asking price only do it. If you need it. Because of mindset and the expectations that sets, and then kind of the psychology that goes along with what’s called price anchoring. It could actually have a negative effect. So if you don’t need that information, you might not want to get it.

Mike: [00:16:36] Yep. Good stuff. Good stuff. So, John, we’ve got a really long question. I don’t want to put up on the screen cause I think it’ll block the whole screen, but effectively says, uh, you know, what kind of techniques are working well with speaking to homeowners or landlords? There’s a lot of trouble landlords out there these days because of all the rents, deferments and all this stuff, um, about.

COVID w on the value of their property versus kind of the future. So I think that there’s a couple of ways [00:17:00] I could translate that. I think, um, you know, there’s a, there’s probably a lot more landlords that are hurting now than there were before. COVID. And then on the other side yeah, for home owners and even, I guess for landlords is property values have gone up pretty substantially during, since COVID started because there’s just very little inventory, so prices have shot up.

So we’re, we’re kind of dealing with this whole COVID mess, but at the same time, knowing that prices just feel kind of artificially high right now because of what’s been going on. And so, uh, that’s like a huge loaded question ultimately, but kind of how do you integrate those things into. Talking about value when you’re talking to a seller.

John: [00:17:39] Yeah. So, uh, interesting questions. Um, we can break those

Mike: [00:17:44] down into a couple of smaller questions if

John: [00:17:45] you don’t know. It’s okay. It’s okay. I’m just thinking through it. So, uh, really I think having that conversation unless it needs to happen is kind of a trap. So I’m going into that question with the premise of, we’re [00:18:00] trying to convince someone that their house is worth a, when they’re trying to convince us that it’s worth B.

Yeah. And if you are in the real estate investment business, that’s, that’s not the conversation you want to be having. That’s a retail conversation, right? Um, that conversation is, is not going to do a lot for you as far as increasing your conversion rates. What you want to do is pivot that value conversation, not the price isn’t worth more because of COVID or is it worth less?

Two, what’s it worth to you right now? Uh, here is what I can offer. Let’s have a conversation about, is it worth even considering that offer? So shifting the conversation is where I’d want to take the answer to that question. If you’re having that conversation of, I think it’s worth 50. Well, I think it’s worth 60.

I think if we’re  that’s not a winning strategy and sales, you have to pivot the conversation. To listen, I’m going to give you an offer and I’m not sure it’s going to be more or less than, than what you were expecting, but let’s chat a little bit about what you want to accomplish. [00:19:00] And, um, so I know how to structure it and make sure I can maximize my offer.

And then you can just figure out at the end of this, Hey, with what I want to accomplish does accepting this offer makes sense or not make sense. And that’d be a pretty easy, easy answer for you. And then I’m shifting the conversation to, you know, what even got you started thinking about selling. Is there a, you know, is it, is it kind of a situation you want to get away from, or is there, do you want to use the money for something else?

Do you want to move across the country? What’s going on? And I want to redefine it and read it and just pivot that conversation to what’s your problem? What do you want to accomplish? And, and I’m going to ultimately give you an offer and then your only decision is in order to accomplish that. Is it going, is it worth it?

Is it worth taking the offer? And doing that you can, you can really stroke a tremendous amount of motivation. You can bring a lot of motivations to surface that your prospect may not have been thinking of. You can understand their situation a lot better. You’re going to build a lot more rapport, their urgency to take action.

The more they talk about their situation is going to increase. So I don’t know if I’m giving the right answer, but, but my answer [00:20:00] is that’s probably the wrong conversation to have, and we need to pivot.

Mike: [00:20:03] Yeah. Don’t look at the underlying issue of COVID it’s just the situation of what you think the value is versus what you can pay.

Right, right. Yeah. Yeah. I think there’s a lot of, there’s a lot of landlords that are hurting. Right. And I mean, there’s, let’s be honest. There’s a lot of landlords that didn’t buy, like. For me, all my rentals were bought at wholesale prices. And in fact, most of them were from many, many years ago. So like prices that are inconceivable now, uh, cause I’m actually older than John.

Uh, I was talking about age earlier, but, um, uh, but I think there’s a lot of landlords that, you know, they bought it off the MLS and they, in their mind, you know, or, or they bought a turnkey property at close to retail value and they never. Thought about like, well, what could go wrong? The house is newly renovated and like things go wrong, you know?

And of course, with, with COVID it’s even, uh, kind of unprecedented in terms of. You know, some States saying you don’t have to pay the rent and all that stuff. It’s just crazy. So I think what you really focus on there is that pain of like, you’re not even getting paid right now. When do you think you’re going to get paid again?

Right.

[00:21:00] John: [00:21:00] The reality of the situation is we all overpay for stuff happily because it’s worth it. Right. And we all take massive losses on things that we have when we sell them, because again, it’s worth it. So just think about any time in your life, where you said, you know what? I probably could have gotten more.

But I’m just thankful it’s over. I’m thankful I got rid of it. Yeah. I know. I overpaid for that, but here’s the opportunity it opens up. I’m glad I did. Right. And you’re excited about overpaying for something. So if you start thinking those terms, that’s how your seller’s thinking, right? It’s not always about getting, you know, fair market value to them.

Is what it actually accomplishes to them, not, not what Zillow says or what your, your, your maximum allowable offer is, or whatever you calculate the ARV to be. It’s, it’s going to be what’s it worth to them. So again, just another way to rephrase my answer is you’ve got to figure out what, moving that property is worth to them and get away from the ARV conversation.

Mike: [00:21:54] Yep. Yep. Well, guys, we’ve got time for a couple more questions, so please chat them in here. Uh, John saw this, [00:22:00] I got a question for you. How do you use, or how can you utilize the end of the year? Beginning of the year kind of phenomenon. Uh, and I’ve always kind of explained it as it’s like a health club.

Like people want to, you know, January 1st, there’s this line in the sand, that’s really just in their mind. And now I want to start the year and lose 40 pounds or whatever. There’s also people that have had. Problem rental property or a house they inherited, or a fixer upper of some sort that they’re like, I don’t want to deal with that next year.

I just want to get rid of it. How do you kind of utilize that in the year? Phenomenon of people wanting to start fresh?

John: [00:22:33] Yeah. I mean, you can use it just like you said. I, I typically don’t care. What time of year. It’s a great time to use scarcity. I can use really use scarcity no matter what time of year it is, but it works really well at this time.

Um, I’ll tell you when I was out, uh, training salespeople and kind of men buying houses coast to coast. Whenever we didn’t get one at the kitchen table, we would drive two blocks away and I would call and say, listen, We could give you a little bit more money if we can walk this up in the [00:23:00] next 60 minutes and we would often lock them up then because that’s scarcity.

So having, having a cutoff, and I think it speaks really to the broader, uh, sales strategy of having an offer expiration or having, uh, making a, no one, no right Treme salespeople out there, 20 acquisition agents and real estate investors, I think because there’s a fear of losing a potential deal. They never make their prospects actually make a decision.

Right? Think about it. Think about it. I’ll continue to follow up with you. And there’s never any cutoff where a decision has to be made. So the prospect never feels a fear of loss, a fear of actually losing the deal. So, um, cause the investors

Mike: [00:23:40] is afraid to say, I’m never going to call you again, right?

John: [00:23:43] Yeah, absolutely.

Uh, so sorry, my Alexa just went on and off. I don’t know what happened to you guys

Mike: [00:23:52] are winding it down. Guys, ask the questions. Cause the lights are going

out

John: [00:23:56] probably in the other room it’s like in it, but yeah, no. [00:24:00] And anyways, I want to just, just go back to that and say, Hey, every time you make an offer, you just word of advice.

You need an exploration, whether it’s by the time I, you know, if it’s not a yes. You know, by the time we wrap up our conversation. Totally cool. It’s no, uh, you know, don’t be a jerk about it. Uh, or Hey, you know, offers you a stand for a week. Obviously I can’t make an offer on a property and let it hang out there for a year.

If things change, my situation will change. Number of houses. I need changes the real estate market’s going to change. So I can, I can let this offer stand for three days, seven days, whatever it is. So you’ll do yourself a favor. If you just start giving a cutoff to when your

Mike: [00:24:34] offer expires. Yeah. Yeah. I remember when I first started this a long time ago now.

Um, and I used to sit there like, how good, how good is the offer for? And I was like, Oh, you know, 30 days. But even then I’d still be interested in buying it. And I was like, well, would I in hindsight, you know, so stupid, what would you do? You’d like, you’d go shop at everywhere in town. And like, I’m like plan B if they need it, which they would never need it.

So then we, then we got better. [00:25:00] Yeah. Awesome. Well, John, what do you think differentiates, let me ask you a question. What differentiates you? You, you’re a member of investor fuel as well. You know, you surround yourself with a lot of amazing people, just like I do for Schwartz, I’ve run in some of the same circles.

What do you think differentiates those that are doing really well at crushing it from those that are good, doing some deals, but kind of just getting by and kind of stuck in the grind. What do you think differentiates those two people from a sales perspective,

John: [00:25:26] from a sales perspective, It’s gonna sound funny, but it’s, uh, getting out of the sales role.

Um, I think the, the more successful people in invest a fuel, um, and, uh, you know, just, just investors in general. Um, even if they’re really good at it, uh, sometimes even if they like it pulling themselves out so they can grow, right. If they can have three acquisition agents that are half as good. Uh, the numbers typically work where you can turn up lead flow and, you know, still, uh, grow them at, uh, in the business.

So I think it’s [00:26:00] getting out of the seal rule so you can focus more on actually growing the business. And I, I train sales people, so I love to train an investor. So I don’t want to talk anyone out of, uh, investors buying houses, but at the same time, getting out of the sales role, hiring others to do it.

Even if they can only do it a fraction as well as you will allow you to focus on the actual and pull the levers that will grow your business and then turn everything off because now you’ve got the bandwidth to handle, increase everything else. So that’s when you can do sales. If you’re an investor business owner, entrepreneur is get out of the sales role and get yourself a couple of people who can do it

Mike: [00:26:36] for you.

Yeah, you can even say that about your whole business. Like we’re we’re in our way, right? I, I just, uh, before today’s event here, I did, uh, I recorded an investor fuel show with clay Rockwood. They’re doing a hundred wholesale deals a year and adding a hundred rental doors a year to their business. They’ve been in business for three years.

These guys are crushing it. And that’s what he said. That’s what he said is like, we just. I’m not the best at [00:27:00] anything that our company has to do. And I just had to get out of the way. And so I can focus on, you know, being the visionary or God forbid living your life. Right.

John: [00:27:09] You know, I’ve, I’ve, I, um, we’ve got one client in York, Pennsylvania.

This guy is probably one of the best natural salespeople I’ve met in my life. Like just, just he’s got it right. He was born with it. Um, that being said he doesn’t train the sales team. Um, he outsources that to, to me. Um, and the reason is, is not because he can’t do it. Um, but he knows his, his focus is spent elsewhere.

Now he’s doing 70 deals a month consistently and half for the last year or so last year. So we’re talking about how do you hit that volume? Um, and he’s not involved in the business that much anymore. So I just wanted to kind of throw that out there. He’s probably one of the best sales people I’ve met in my life.

He’s not selling his, he’s not even training his team, let alone selling the deals or buying the houses that are just positioning him because he knows he needs to [00:28:00] keep stepping up and taking kind of a higher level view of what’s going to grow the business instead of just taking that micro view.

Mike: [00:28:08] Yeah.

Awesome. Well, John, appreciate you spending time with us today. Great. To great to see you. My friend.

John: [00:28:12] Yeah. Good to see you, Mike,

Mike: [00:28:13] have a great Thanksgiving and a, well I’m sure we’ll be talking again soon. Okay. Thanks for joining me. On today’s episode, there are three ways I help successful real estate investors take their businesses and their lives to the next level.

First, if you’re in search of a community of successful real estate investors that help one another, take their businesses to the next level and a life changing community of lifelong friends. Please learn more about my investor fuel real estate mastermind. By visiting investor, fuel.com. If you’d like a cutting edge solution for the very best done for you lead generation on the planet where we’re handling the lead-generation for many of America.

Top real estate [00:29:00] investors. Please learn more@theinvestormachine.com. And lastly, if you’re interested in a free online community of professional real estate investors that isn’t full of spam solicitations and newbie questions, please join my free professional real estate investor Facebook group by visiting flipnerd.com/professional.

 

Source: flipnerd.com

Top Pet Products Not to Skimp On

Check out this list of top pet products you should not skimp out on.I first adopted my dog Molly, I was so excited. She was the first dog in the first kennel at the SPCA, and the only dog in the group not barking. My fiance and I were instantly drawn to her.

We continued down the row of kennels, looking into the cages and seeing dogs of all different shapes, sizes and energy levels, but none of them got our attention like the little black and white dog in the first kennel.

After walking her around outside of her kennel for a few minutes, it became even more clear that this was the pup for us. She wasn’t spayed, and the shelter wouldn’t release her until she was, so we shut her back into her cage, and put our name down for her with the office staff. She’d be ready to pick up in a few days, but in the mean time, we were off to get her supplies.

That was six months ago, and since then, I’ve learned a lot about the huge industry that is pet products. For every genuinely useful or essential product, there are ten poorly constructed or downright pointless products sitting right next to it on your shelf or screen. So, today I’m going to go through some of the pet products I think are completely worth spending money on, and, just for fun, some that aren’t a good investment.

A Strong Collar

Our first stop when picking up Molly’s supplies was to Walmart, where I picked up a typical collar with a plastic buckle. Within one week, the flimsy buckle was snapping loose. So back we went, to replace the cheap-o collar with one with a strong metal clasp.

Tartar Busting Bones

Poor dental hygiene can lead to costly teeth cleanings and other nasty diseases if left untreated. To combat this, invest in some tartar busting bones. The rough surfaces naturally clean a dog’s teeth when chewed on, and keeping tartar at bay early on means cheaper long term dental care (better breath too).

High Quality Dog Food

Now, I’m not saying you need to go out and buy the $30 bag of organic, free range, human grade dog food. But in the arena of nutrition, dogs aren’t that different from people. Poor quality food contributes to poor quality health, and an unhealthy dog is an expensive dog. High quality food also contributes to better breath, a shinier and softer coat, and less…erm…waste.

A Dremel Nail Grinder

Unless you want your floors, couches and skin all scratched to hell, you need to clip your dog’s nails. With some care and positive training, nail clipping can easily be done at home, without any need for a trip to the groomer. I bought a pair of cheap nail clippers, and their dull edges means I have proceed with nail clipping very carefully in order not to hurt Molly’s little paws. To make the project easier yet still save hundreds at the groomer, consider investing in a Dremel Nail Grinder instead.

The Furminator

Pets shed. A ton. I have a long haired cat and a short haired dog in four hundred square feet of living space. To cut down on the crazy amount of hair that can accumulate ridiculously quickly, good quality brushes are a must. The furminator is great for that.

Things That Aren’t a Good Investment

This, this, this, oh and this (although that one is kinda cute).

Not everything that is put out by the pet industry is a worthwhile investment, or even remotely useful. In fact, most of it is probably crap just released because pet crazy people love to spoil their animals. To make your dollar go further, make sure to invest in high quality items that will keep your pet healthy, and help you save money over the long term.

What’s your number one indispensable pet item? I want to know!

The post Top Pet Products Not to Skimp On appeared first on Making Sense Of Cents.

Source: makingsenseofcents.com

How to Start Investing in Peer-to-Peer Loans

How to Start Investing in Peer-to-Peer Loans

Back in the day, if you needed a personal loan to start a business or finance a wedding you had to go through a bank. But in recent years, a new option has appeared and transformed the lending industry. Peer-to-peer lending makes it easy for consumers to secure financing and gives investors another type of asset to add to their portfolios. If you’re interested in investing in something other than stocks, bonds or real estate, check out our guide to becoming an investor in peer-to-peer loans.

Check out our personal loan calculator.

What Is Peer-to-Peer Lending?

Peer-to-peer lending is the borrowing and lending of money through a platform without the help of a bank or another financial institution. Typically, an online company brings together borrowers who need funding and investors who put up cash for loans in exchange for interest payments.

Thanks to peer-to-peer lending, individuals who need extra money can get access to personal loans in a matter of days (or within hours in some cases). Even if they have bad credit scores, they may qualify for interest rates that are lower than what traditional banks might offer them. In the meantime, investors can earn decent returns without having to actively manage their investments.

Who Can Invest in Peer-to-Peer Loans

How to Start Investing in Peer-to-Peer Loans

You don’t necessarily have to be a millionaire or an heiress to start investing in peer-to-peer loans. In some cases, you’ll need to have an annual gross salary of at least $70,000 or a net worth of at least $250,000. But the rules differ depending on where you live and the site you choose to invest through.

For example, if you’re investing through the website Prosper, you can’t invest at all if you reside in Arizona or New Jersey. In total, only people in 30 states can invest through Prosper and only folks in 45 states can invest through its competitor, Lending Club.

Certain sites, like Upstart and Funding Circle, are only open to accredited investors. To be an accredited investor, the SEC says you need to have a net worth above $1 million or an annual salary above $200,000 (unless you’re a company director, an executive officer or you’re part of a general partnership). Other websites that work with personal loan investors include SoFi, Peerform and CircleBack Lending.

Keep in mind that there may be limitations regarding the degree to which you can invest. According to Prosper’s site, if you live in California and you’re spending $2,500 (or less) on Prosper notes, that investment cannot be more than 10% of your net worth. Lending Club has the same restrictions, except that the 10% cap applies to all states.

Choose your risk profile.

Becoming an Investor

If you meet the requirements set by the website you want to invest through (along with any other state or local guidelines), setting up your online profile is a piece of cake. You can invest through a traditional account or an account for your retirement savings, if the site you’re visiting gives you that option.

After you create your account, you’ll be able to fill your investment portfolio with different kinds of notes. These notes are parts of loans that you’ll have to buy to begin investing. The loans themselves may be whole loans or fractional loans (portions of loans). As borrowers pay off their personal loans, investors get paid a certain amount of money each month.

If you don’t want to manually choose notes, you can set up your account so that it automatically picks them for you based on the risk level you’re most comfortable with. Note that there will likely be a minimum threshold that you’ll have to meet. With Lending Club and Prosper, you can invest with just $25. With a site like Upstart, you have to be willing to spend at least $100 on a note.

Should I Invest in Peer-to-Peer Loans?

How to Start Investing in Peer-to-Peer Loans

Investing in personal loans may seem like a foreign concept. If you’re eligible to become an investor, however, it might be worth trying.

For one, investing in personal loans isn’t that difficult. Online lenders screen potential borrowers and ensure that the loans on their sites abide by their rules. Investors can browse through notes and purchase them.

Thanks to the automatic investing feature that many sites offer, you can sit back and let an online platform manage your investment account for you. That can be a plus if you don’t have a lot of free time. Also, by investing through a retirement account, you can prepare for the future and enjoy the tax advantages that come with putting your money into a traditional or Roth IRA.

As investments, personal loans are less risky than stocks. The stock market dips from time to time and there’s no guarantee that you’ll see a return on your investments. By investing in a peer-to-peer loan, you won’t have to deal with so much volatility and you’re more likely to see a positive return. Lending Club investors, for example, have historically had returns between 5.26% and 8.69%.

Related Article: Is Using a Personal Loan to Invest a Smart Move?

But investing in peer-to-peer loans isn’t for everyone. The online company you’re investing through might go bankrupt. The folks who take out the loans you invest in might make late payments or stop paying altogether.

All of that means you could lose money. And since these loans are unsecured, you can’t repossess anything or do much to recoup your losses.

You can lower your investment risk by investing in different loans. That way, if someone defaults, you can still profit from the loan payments that the other borrowers make. But if you don’t have enough loans in your portfolio you’re putting yourself in a riskier predicament.

Final Word

If you’re looking for a way to add some diversity to your portfolio, investing in peer-to-peer loans might be something to think about. There are plenty of benefits that you can reap with this kind of investment. Before setting up an account, however, it’s important to be aware of the risks you’ll be taking on.

Photo credit: Â©iStock.com/bymuratdeniz, ©iStock.com/M_a_y_a, ©iStock.com/sirius_r

The post How to Start Investing in Peer-to-Peer Loans appeared first on SmartAsset Blog.

Source: smartasset.com

6 Reasons to Try the FIRE Movement

The idea behind FIRE is if you can earn more money, live on less, and save and invest the rest, you can cut years — or even decades — off of your working career. Of course, the FIRE movement has its problems. 

Not everyone can save 50% or more of their income to work toward FIRE. And most who retire early continue working in some capacity to avoid running out of money early. Also, achieving FIRE is considerably easier during times of economic prosperity — no matter what anyone says, it would’ve been a lot harder to get excited about FIRE in 2008 when the Dow dropped by 33.84%!

Achieving FIRE and retiring early sounds good in theory, but it’s actually very hard to execute in a real-world sense. But here’s why you should try anyway.

6 Reasons FIRE Still Works

But, you know what? I would argue that anyone who can, should at least try to pursue FIRE anyway. As I’ve become more interested in financial independence, I’ve learned that there are side benefits to cutting expenses and learning to save money and invest more. Some advantages to FIRE don’t even have anything to do with money at all.

If you’re on the fence about FIRE, here are some of the reasons you might want to change your way of thinking and get on board.

1. Encourages Living With Intention

After reading Michael Hyatt’s book, Living Forward, its concept of “drifting” stuck with me. Drifting occurs any time you’re going through the motions in life, but living without any concrete plans or goals. 

Maybe you’re going to work every day, taking care of your kids, and keeping up with bills. But in these day-to-day tasks, you’re not actively achieving anything in particular. 

You’re just waking up and getting by.

With the FIRE movement though, you learn to live with intentionality because you’re forced to focus on your spending, and the specific goals necessary to reach financial independence. 

As you pursue FIRE, you can’t simply drift through life in hopes that the numbers work out in your favor. To have enough money to retire early, you need a plan. You have no choice but to set goals, and the act of doing so forces you to get real about how you’re living and what you really want in life. 

Are you saving to buy a house? Are you saving to pay for college? Are you saving to retire early? Whatever your goals are, FIRE forces you to reverse engineer your long-term plan so it’s actionable and intentional today.

2. Feels More Financially Secure

Here’s another potential side benefit of pursuing FIRE — you get the opportunity to feel more secure and sleep better at night. This is something I personally experienced when I started becoming FIRE-minded, but it’s also backed up by research. 

In fact, a 2019 survey from Schwab showed that 63% of people with a written financial plan said they felt financially stable, compared to only 28% of those without a financial plan. Further, 56% of people with a financial plan said they felt “very confident” about reaching their financial goals.

If you’ve ever felt helpless about your finances before, then this probably makes total sense. Having a plan provides some comfort — even if you are far away from your goal. At least you’re working toward something, and that provides peace of mind. 

3. Forces You to Take Control

I don’t always agree with everything Dave Ramsey says, but I do love some of his best quotes. One example is:

“You must gain control over your money or the lack of it will forever control you.” — Dave Ramsey

The point I’m making is that, if you don’t ask yourself important, uncomfortable questions, you might never get control of your finances — or your life. 

Think about it this way. If you’re drifting through life and spending money without really saving for a goal, you’re at the mercy of your job and outside factors that affect your income and savings. But if you learn to take control of your spending, you’ll also learn to take control of your future finances in ways you probably never realized before.

When most people start pursuing FIRE, they realize right away that the biggest part that’s in their control is their spending. The other side of that coin is, of course, how much you’re able to save.

A recent survey from the Federal Reserve Bank of St. Louis shows the average American set aside 5% to 8% of their income in savings. In contrast, those who pursue FIRE, frequently save 50% to 70% of their incomes toward their goals. 

When you find a way to save a large percentage of your income, this means you’ve taken control of the reins. You have goals and you have a purpose, and your money is no longer controlling your future. You are.

4. Empowers You with Information

According to a joint study from PwC US and the Global Financial Literacy Excellence Center (GFLEC) at the George Washington University, only 24% of millennials demonstrate basic financial literacy. And, even with minimal knowledge of their own, only 27% had sought out professional financial advice. 

This is one area where even studying FIRE can leave you dramatically ahead. After all, pursuing FIRE or even reading about it forces empowers you with information about saving and investing for the long haul. 

For example, through FIRE you’ll randomly learn personal finance lessons like the 4% rule for retirement and how to create a budget. These are cornerstone concepts of the FIRE movement. 

You’re also forced to think about your income and your financial situation in a brand new way. This includes questions, like “How much are you actually earning?” and “How much interest are you paying toward debt every month?”

As a financial advisor, I can tell you for sure that a lot of people don’t know the answer to any of these questions because they’ve never thought about it before. You wind up learning so much that can help you along the way toward your goal.

5. Learn How to Budget and Question Yourself

I remember back in the day when my wife and I first started getting serious about budgeting. We’d sit down to look over our bills, and were shocked by some of our ongoing expenses and subscriptions. 

These budgeting “meetings” made a big difference in how we worked together to achieve our financial goals. When we sat down to look over our expenses, our income, and where we were headed, we found ways to spend less without affecting our quality of life.

Now, I hate budgeting, but I do think it’s an important part of pursuing FIRE — especially at first. After all, you can’t really work toward major financial goals if you have no idea where your money is going every month. 

And, the thing is, you can’t really argue anything when you start budgeting and tracking your expenses. You get the chance to see where your money went, in black and white, and you get the opportunity to act accordingly. This may sound like a huge buzzkill, but I’ve found that taking control and budgeting is actually really empowering. 

Crazily enough, not enough people have any idea how they spend the income they work so hard to earn. In fact, a recent survey from the budgeting app Mint found that 65% of respondents had no idea how much they spent last month. 

When you ask someone pursuing FIRE how much they save each month, these people know. In fact, they often know their savings amount down to the penny. 

6. FIRE Helps You Be Grateful

Finally, there’s one more major benefit of FIRE that goes largely ignored. I’m going to call it the “contentment factor”. It’s the ability to be content with what you have. 

Everything involved with FIRE — tracking your spending, cutting things you don’t care about, creating long-term goals — can really put your life in perspective for you. It also makes you realize you might have more power over your life than you realized. That’s a pretty amazing lesson. 

And of course, learning contentment leads to learning how to feel grateful. How amazing is it that, in this broken world we live in, you can earn a living, care for your family, and set aside something for the future? How amazing is it that you have the chance to work hard and retire early, and then spend decades doing whatever it is you love?

This brings me to a quote I love from Oprah:

“Be thankful for what you have; you’ll end up having more. If you concentrate on what you don’t have, you will never, ever have enough.” ―

Oprah Winfrey

This is what I love about FIRE; it really encourages you to be grateful and teaches you to be content with what you have. After all, there is no way you could ever save 50% or even 30% of your income without these lessons. 

Pursuing FIRE teaches you that you don’t need the hottest pair of sneakers, and that you might not need that cable television package you pay for each month. It teaches you that a huge car payment isn’t worth it, and that any “friend” who judges your car probably isn’t a good one. 

Learning about FIRE makes you ask yourself all of these questions, and sometimes, that’s all it takes to realize how good you have it.

Garth Brooks once said that “you aren’t wealthy until you have something money can’t buy.” 

And perhaps that’s the greatest benefit of pursuing FIRE. You learn that happiness and true contentment comes from within. And that, my friends, is priceless.

The post 6 Reasons to Try the FIRE Movement appeared first on Good Financial Cents®.

Source: goodfinancialcents.com

Benton County, Oregon VA Loan Information

Table of Contents

  • What is the VA Loan Limit?
  • How to Apply for a VA Home Loan?
  • What is the Median Home Price?
  • What are the VA Appraisal Fees?
  • Do I need Flood Insurance?
  • How do I learn about Property Taxes?
  • What is the Population?
  • What are the major cities?
  • About Benton County
  • Veteran Information
  • Apply for a VA Home Loan
  • VA Approved Condos

FAQ

What is the VA Loan Limit?

2021 VA Home Loan Limit: $0 down payment up to $5,000,000* (subject to lender limits) /2 open VA loans at one time $548,250 (Call 877-432-5626 for details).

How to Apply for a VA Home Loan?

This is a quick look at how to apply for a VA home loan in Benton county. For a more detailed overview of the VA home loan process, check out our complete guide on how to apply for a VA home loan. Here, we’ll go over the general steps to getting a VA home loan and point out some things to pay attention to in Benton County. If you have any questions, you can call us at VA HLC and we’ll help you get started.

  1. Get your Certificate of Eligibility (COE)
    • Give us a call at (877) 432-5626 and we’ll get your COE for you.
  2. Are you applying for a refinance loan? Check out our complete guide to VA Refinancing.
  3. Get pre-approved, to get pre-approved for a loan, you’ll need:
    • Previous two years of W2s
    • Most recent 30 days paystubs or LES (active duty)
    • Most recent 60 days bank statements
    • Landlord and HR/Payroll Department contact info
  4. Find a home
    • We can help you check whether the home is in one of the Benton County flood zones
  5. Get the necessary inspections
    • Termite inspection: required
    • Well or septic inspections needed, if applicable
  6. Get the home appraised
    • We can help you find a VA-Certified appraiser in Benton County and schedule the process
    • Construction loan note: Construction permit/appraisal info
      1. Building permit
      2. Elevation certificate
  7. Lock-in your interest rates
    • Pro tip: Wait until the appraisal to lock-in your loan rates. If it turns out you need to make repairs, it can push your closing back. Then you can get stuck paying rate extension fees.
  8. Close the deal and get packing!
    • You’re ready to go.

What is the Median Home Price?

As of August 31st, 2020, the median home value for Benton County is $385,002. In addition, the median household income for residents of the county is $58,655.

How much are the VA Appraisal Fees?

  • Single-Family: $775.
  • Individual Condo: $825.
  • Manufactured Homes: $825.
  • 2-4 Unit Multi-Family: $950.
  • Appraisal Turnaround Times: 10 days.

Do I need Flood Insurance?

  • The VA requires properties are required to have flood insurance if they are in a Special Flood Hazard Area.
  • In Benton County, most flood hazard areas are located along the Willamette River which borders the county to the east. Several other creeks within the county are also prone to flooding. However, one of the most significant flood hazard areas is Marys River which floods areas within the city of Corvallis.

How do I learn about Property Taxes?

  • The Benton county tax assessor’s office is located at 4077 S.W. Research Way Corvallis, Oregon, 97333. In addition, the office can also be reached by calling (541) 766-6855
  • Oregon offers businesses that invest and hire within enterprise zones the option to be exempt from property taxes for at least three years. In addition, the Oregon Investment Advantage encourages new businesses to start and relocating to the state. For example, the program offers income tax subtraction, and it can also eliminate state income liability for new businesses for many years.

What is the Population?

  • The county’s population of 93,053 is 79% White, 7% Hispanic, and 7% Asian.
  • Most county residents are between 18 and 65 years old, with 16% under 18 years old and 17% older than 65.
  • In total, the county has about 35,056 households, at an average of two people per household.

What are the major cities?

The county has five cities, including the city of Corvallis, which serves as the county seat. In addition, there are four other cities Adair Village, Albany, Monroe, and Philomath.

About Benton County

Benton County is located in western Oregon and is home to a friendly local community and excellent dining options. Fun in the Oregon wilderness is waiting at any of the beautiful outdoor spots in the county. Many fun and interesting attractions can be found all over the area, including museums, art galleries, golf courses, and much more. Don’t miss out on any of the exciting festivals held in the county, where you can truly celebrate like a local! Benton County was officially founded on December 23, 1847, and was named after Thomas Hart Benton, who served as a U.S. Senator. The current population of the county is 90,951.

Enjoy all the beauty of the Oregon landscape at any of the scenic outdoor spots in Benton County. The E.E. Wilson Wildlife Area is the perfect place to get away from it all, featuring beautiful hiking trails and scenic campsites. For some of the best hiking and rock-climbing opportunities, be sure to check out Mary’s Peak, which offers majestic lookout points. Bring your friends and family to Riverfront Commemorative Park, which features walking paths, picnic areas, and much more. Other scenic outdoor spots in the county include the Alsea Falls Recreation Site and the Beazell Memorial Forest.

A great time is waiting at any of the amazing attractions in Benton County. The Arts Center is a can’t-miss for art-lovers, featuring a huge variety of paintings and sculptures made by talented artists. The Arts Center also hosts workshops, rotating exhibits, and special events. If you are interested in local history, then be sure to visit all the amazing exhibits and artifacts housed within the County Historical Museum. Check out the beautiful Darkside Cinema, which is independently owned and showcases both independent and art films. Other great attractions in the county include the Majestic Theater, Art in the Valley, and the LaSells Stewart Center.

A fun time for the whole family is waiting at all the exciting events held in Benton County. The County Fair and Rodeo bring out most of the local community to enjoy carnival rides, fun games, and delicious local food. Try a multitude of delicious drinks at Corvallis Beer Week. Other great events held in the county include the Corvallis Fall Festival and the Red Blue and Riverfront Festival.

Veteran Information

There are about 5,249 veterans currently living within Benton County, which offers assistance to veterans through:

Benton County is home to one VFW post:

  • Post 3957 Monroe Post – 605 Main Street, Monroe, Oregon 97456.

VA Medical Centers in the county:

  • Benton County VSO – 777 NW 9th Street, Suite 202, Corvallis, Oregon 97330.
  •  

VA Home Loan Information

  • For more information about VA Home Loans and how to apply, click here.
  • If you meet the VA’s eligibility requirements, you will be able to enjoy some of the best government guaranteed home loans available.  
  • VA loans can finance the construction of a property. However, the property must be owned and prepared for construction as the VA cannot ensure vacant land loans.

VA Approved Condos

There are currently no VA approved condos in Benton County, Oregon. However, if you’re interested in getting a condo through the approval process give us a call at (877) 432-5626. We can help you through the condo approval process.   

Oregon VA Loan Information: https://www.vahomeloancenters.org/oregon-va-home-loan-limits/

VA Loan Information by State: https://www.vahomeloancenters.org/va-loan-limit-maximum-va-loan-amount/

The post Benton County, Oregon VA Loan Information appeared first on VA Home Loan Centers.

Source: vahomeloancenters.org

How COVID-19 is Affecting Mortgages

Coronavirus cases are increasing at a phenomenal rate and sending the economy into free-fall. Every industry will be affected in some way, but the housing market could be one of the hardest hit. Borrowers are struggling to pay their mortgages, lenders are seeing far fewer applications, and we could be just around the corner from a housing crisis akin to the decline of 2008.

So, what’s happening here, how is COVID-19 affecting mortgages and are we likely to see any major issues on the horizon?

How Will COVID-19 Impact Mortgages?

In early March, mortgage rates dropped to an all-time low, hinting at things to come. The rate for a 30-year fixed-term mortgage fell to 3.29%, compared to March of 2019 when rates were 4.14%. That may not seem like much of a difference, but the difference between 3.29% and 4.14% on a $200,000 30-year mortgage is around $35,000.

And this is just the tip of the iceberg; the start of the problem.

Experts predict that rates will continue to fall as we progress through 2020 and COVID-19 continues to wreak havoc on the US economy.

As noted in our recent guide to Coronavirus Mortgage Relief, lenders are already providing lenders with debt relief options to help them manage their mortgage in this difficult time. Foreclosure is expensive and it’s an expense that banks and credit unions can’t afford right now. They want homeowners to pay their bills and keep their homes and they will do everything they can to make that happen.

The federal government is also lending a helping hand by way of the CARES act, and we could see more significant moves on behalf of lenders and the government before the year draws to a close.

In other words, although big moves have been made and huge changes have taken place, all of this could pale in comparison to what happens when the pandemic is eradicated and the rebuilding process begins.

Can You Benefit from this?

If you’re a homeowner tied to a high-interest rate, you could benefit from the current reduced interest rates by refinancing your mortgage. You could do that now and capitalize on the all-time low rates mentioned above or wait to see what happens in the next few months.

In any case, you can get a much lower rate than what you already have and potentially save thousands of dollars over the life of your loan.

It’s not about profiting from a bad situation, it’s about making life easier for yourself so you can navigate through this chaos. If your monthly mortgage payment is reduced, you’ll have more money in your pocket every month, which means you can put more cash towards unsecured debts and your monthly grocery bill.

It also reduces your chances of defaulting and being foreclosed upon in the future.

COVID-19 and the Housing Market

In the spring of 2019, the housing market was booming. It was a good time to invest in bricks and mortar and it seemed like there were some bright years ahead for homeowners and investors. 

In 2020, the shadow of the coronavirus pandemic fell on the country and now, a year on from that boom, the housing market has ground to a screeching halt. No one is selling because no one is buying. The market hasn’t necessarily crashed, but it has paused, and that could cause some huge problems in the near future.

What happens to all the homeowners who were selling their homes before this crisis and wanted to sell during? As soon as the pandemic fades away, they’ll all list their homes at the same time, and they’ll no doubt be joined by countless other homeowners who are selling because of the pandemic.

Once the market reopens, it will be flooded with homes for sale. At the same time, homeowners once ready to buy will now be struggling to deal with the consequences of the pandemic, while others will be hesitant of buying and will want to bide their time. Sellers will get desperate, prices will drop, and it will be a buyer’s market.

It’s hard to predict just how far house prices will fall or even if they will fall at all, but if the last few months are anything to go by, it’s fair to assume that the damage will be considerable.

Could it be a Seller’s Market?

While it seems most likely that post-pandemic USA will be a buyer’s market, it could also go the other way. Millions of Americans could be looking to purchase homes in 2020. If all of them are waiting for the end of the pandemic in the hope that the prices will be lower and the interest rates more favorable, they could overload the market.

Buyers may also be desperate to sink their money into bricks and mortar, believing it to be a safe investment and protection against any future economic issues. After all, when you rent, you’re always at the mercy of the landlord and have few guarantees that your home will still be your home months down the line.

That’s a scary thought in the middle of a pandemic, where it may be difficult, and in some cases impossible, to move into another property on short notice.

To remedy this, renters may be desperate to buy and may jump into the housing market as soon as the chaos dies down. A sudden rush of buyers will send the market in the opposite direction, allowing sellers to jack up their prices. 

COVID-19, Mortgages, and the Future of the Housing Market

Most of which we discussed above is speculation. We can predict the likelihood of it being a buyer’s market and of interest rates falling based on everything that has happened thus far, but we can’t say that it will happen for certain.

COVID-19 has made life very unpredictable. In December 2019, when word of the first Chinese cases began to filter to our shores, few could have guessed that just 3 months later, the world would be in lockdown, everyone would be going crazy for toilet paper, and people would be dying in their droves. 

At the beginning of the outbreak, when Europe was on its knees, President Trump was dismissive of the risks and suggested that everything would be okay, the US would be safe, and the virus would be fleeting. A few weeks later, the United States became the worst affected country and fatalities entered double figures.

It’s a novel pandemic that few predicted, and no one was prepared for, and as things stand it’s less about fighting the disease and more about avoiding it. 

As a result, we can’t be certain that the housing market will decline or that mortgage rates will drop. We just have to wait and see and hope that we all get through this with our lives, properties, and professions intact.

How COVID-19 is Affecting Mortgages is a post from Pocket Your Dollars.

Source: pocketyourdollars.com

75 Personal Finance Rules of Thumb

A “rule of thumb” is a mental shortcut. It’s a heuristic. It’s not always true, but it’s usually true. It saves you time and brainpower. Rather than re-inventing the wheel for every money problem you face, personal finance rules of thumb let you apply wisdom from the past to reach quick solutions.

I’m going to do my best Buzzfeed impression today and give you a list of 75 personal finance rules of thumb. Some are efficient packets of advice while others are mathematical shortcuts to save brain space. Either way, I bet you’ll learn a thing or two—quickly—from this list.

The Basics

These basic personal finance rules of thumb apply to everybody. They’re simple and universal.

1. The Order of Operations (since this is one of the bedrocks of personal finance, I wrote a PDF explaining all the details. Since you’re a reader here, it’s free.)

2. Insurance protects wealth. It doesn’t build wealth.

3. Cash is good for current expenses and emergencies, but nothing more. Holding too much cash means you’re losing long-term value.

4. Time is money. Wealth is a measure of how much time your money can buy.

5. Set specific financial goals. Specific numbers, specific dates. Don’t put off for tomorrow what you can do today.

6. Keep an eye on your credit score. Check-in at least once a year.

7. Converting wages to salary: $1/per hour = $2000 per year.

8. Don’t mess with City Hall. Don’t cheat on your taxes.

9. You can afford anything. You can’t afford everything.

10. Money saved is money earned. When you look at your bottom line, saving a dollar has the equivalent effect as earning a dollar. Saving and earning are equally important.

Budgeting

I love budgeting, but not everyone is as zealous as me. Still, if you’re looking to budget (or even if you’re not), I think these budgeting rules of thumb are worth following.

11. You need a budget. The key to getting your financial life under control is making a budget and sticking to it. That is the first step for every financial decision.

12. The 50-30-20 rule of budgeting. After taxes, 50% of your money should cover needs, 30% should cover wants, and 20% should repay debts or invest.

13. Use “sinking funds” to save for rainy days. You know it’ll rain eventually.

14. Don’t mix savings and checking. One saves, the other spends.

15. Children cost about $10,000 per kid, per year. Family planning = financial planning.

16. Spend less than you earn. You might say, “Duh!” But if you’re not measuring your spending (e.g. with a budget), are you sure you meet this rule?

Investing & Retirement

Basic investing, in my opinion, is a ‘must know’ for future financial success. The following rules of thumb will help you dip your toe in those waters.

17. Don’t handpick stocks. Choose index funds instead. Very simple, very effective.

18. People who invest full-time are smarter than you. You can’t beat them.

19. The Rule of 72 (it’s doctor-approved). An investment annual growth rate multiplied by its doubling time equals (roughly) 72. A 4% investment will double in 18 years (4*18 = 72). A 12% investment will double in 6 years (12*6 = 72).

20. “Don’t do something, just sit there.” -Jack Bogle, on how bad it is to worry about your investments and act on those emotions.

21. Get the employer match. If your employer has a retirement program (e.g. 401k, pension), make sure you get all the free money you can.

22. Balance pre-tax and post-tax investments. It’s hard to know what tax rates will be like when you retire, so balancing between pre-tax and post-tax investing now will also keep your tax bill balanced later.

23. Keep costs low. Investing fees and expense ratios can eat up your profits. So keep those fees as low as possible.

24. Don’t touch your retirement money. It can be tempting to dip into long-term savings for an important current need. But fight that urge. You’ll thank yourself later.

25. Rebalancing should be part of your investing plan. Portfolios that start diversified can become concentrated some one asset does well and others do poorly. Rebalancing helps you rest your diversification and low er your risk.

26. The 4% Rule for retirement. Save enough money for retirement so that your first year of expenses equals 4% (or less) of your total nest egg.

27. Save for your retirement first, your kids’ college second. Retirees don’t get scholarships.

28. $1 invested in stocks today = $10 in 30 years.

29. Inflation is about 3% per year. If you want to be conservative, use 3.5% in your money math.

30. Stocks earn 7% per year, after adjusting for inflation.

31. Own your age in bonds. Or, own 120 minus your age in bonds. The heuristic used to be that a 30-year old should have a portfolio that’s 30% bonds, 40-year old 40% bonds, etc. More recently, the “120 minus your age” rule has become more prevalent. 30-year old should own 10% bonds, 40-year old 20% bonds, etc.

32. Don’t invest in the unknown. Or as Warren Buffett suggests, “Invest in what you know.”

Home & Auto

For many of you, home and car ownership contribute to your everyday finances. The following personal finance rules of thumb will be especially helpful for you.

33. Your house’s sticker price should be less than 3x your family’s combined income. Being “house poor”—or having too expensive of a house compared to your income—is one of the most common financial pitfalls. Avoid it if you can.

34. Broken appliance? Replace it if 1) the appliance is 8+ years old or 2) the repair would cost more than half of a new appliance.

35. Used car or new car? The cost difference isn’t what it used to be. The choice is even.

36. A car’s total lifetime cost is about 3x its sticker price. Choose wisely!

37. 20-4-10 rule of buying a vehicle. Put 20% of the vehicle down in cash, with a loan of 4 years or less, with a monthly payment that is less than 10% of your monthly income.

38. Re-financing a mortgage makes sense once interest rates drop by 1% (or more) from your current rate.

39. Don’t pre-pay your mortgage (unless your other bases are fully covered). Mortgages interest is deductible, and current interest rates are low. While pre-paying your mortgage saves you that little bit of interest, there’s likely a better use for you extra cash.

40. Set aside 1% of your home’s value each year for future maintenance and repairs.

41. The average car costs about 50 cents per mile over the course of its life.

42. Paying interest on a depreciating asset (e.g. a car) is losing twice.

43. Your main home isn’t an investment. You shouldn’t plan on both living in your house forever and selling it for profit. The logic doesn’t work.

44. Pay cash for cars, if you can. Paying interest on a car is a losing move.

45. If you’re buying a fixer-upper, consider the 70% rule to sort out worthy properties.

46. If you’re buying a rental property, the 1% rule easily evaluates if you’ll get a positive cash flow.

Spending & Debt

Do you spend money? (“What kind of question is that?”) Then these personal finance rules of thumb will apply to you.

47. Pay off your credit card every month.

48. In debt? Use psychology to help yourself. Consider the debt snowball or debt avalanche.

49. When making a purchase, consider cost-per-use.

50. Make your spending tangible with a ‘cash diet.’

51. Never pay full price. Shop around and do your research to get the best deals. You can earn cash back when you shop online, score a discount with a coupon code, or a voucher for free shipping.

52. Buying experiences makes you happier than buying things.

53. Shop by yourself. Peer pressure increases spending.

54. Shop with a list, and stick to it. Stores are designed to pull you into purchases you weren’t expecting.

55. Spend on the person you are, not the person you want to be. I love cooking, but I can’t justify $1000 of professional-grade kitchenware.

56. The bigger the purchase, the more time it deserves. Organic vs. normal peanut butter? Don’t spend 10 minutes thinking about it. $100K on a timeshare? Don’t pull the trigger when you’re three margaritas deep.

57. Use less than 30% of your available credit. Credit usage plays a major role in your credit score. Consistently maxing out your credit hurts your credit score. Aim to keep your usage low (paying off every month, preferably).

58. Unexpected windfall? Use 5% or less to treat yourself, but use the rest wisely (e.g. invest for later).

59. Aim to keep your student loans less than one year’s salary in your field.

The Mental Side of Personal Finance

At the end of the day, you are what you do. Psychology and behavior play an essential role in personal finance. That’s why these behavioral rules of thumb are vital.

60. Consider peace of mind. Paying off your mortgage isn’t always the optimum use of extra money. But the peace of mind that comes with eliminating debt—it’s huge.

61. Small habits build up to big impacts. It feels like a baby step now, but give yourself time.

62. Give your brain some time. Humans might rule the animal kingdom, but it doesn’t mean we aren’t impulsive. Give your brain some time to think before making big financial decisions.

63. The 30 Day Rule. Wait 30 days before you make a purchase of a “want” above a certain dollar amount. If you still want it after waiting and you can afford it, then buy it.  

64. Pay yourself first. Put money away (into savings or investment accounts) before you ever have a chance to spend it.

65. As a family, don’t fall into the two-income trap. If you can, try to support your lifestyle off of only one income. Should one spouse lose their job, the family finances will still be stable.

66. Every dollar counts. Money is fungible. There are plenty of ways to supplement your income stream.

67. Savor what you have before buying new stuff. Consider the fulfillment curve.

68. Negotiating your salary can be one of the most important financial moves you make. Increasing your income might be more important than anything else on this list.

69. Direct deposit is the nudge you need. If you don’t see your paycheck, you’re less likely to spend it.

70. Don’t let comparison steal your joy. Instead, use comparisons to set goals. (net worth).

71. Learning is earning. Education is 5x more impactful to work-life earnings than other demographics.

72. If you wouldn’t pay in cash, then don’t pay in credit. Swiping a credit card feels so easy compared to handing over a stack of cash. Don’t let your brain fool itself.

73. Envision a leaky bucket. Water leaking from the bottom is just as consequential as water entering the top. We often ignore financial leaks (e.g. fees), since they’re not as glamorous—but we shouldn’t.

74. Forget the Joneses. Use comparisons to motivate healthier habits, not useless spending.

75. Talk about money! I know it’s sometimes frowned upon (like politics or religion), but you can learn a ton from talking to your peers about money. Unsure where to start? You can talk to me!

The Last Personal Finance Rule of Thumb

Last but not least, an investment in knowledge pays the best interest.

Boom! Got ’em again! Ben Franklin streaks in for another meta appearance. Thanks Ben!

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Source: bestinterest.blog