Welcome Home with Monique

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Speaker 3 0:33
Good morning. This is Monique Buchanan, the host of the welcome home with Monique show. And on this show, I talk all things real estate. Listen, I want to thank you for tuning in. Well, happy Saturday, Las Vegas. It's Monique Buchanan, the host of the welcome home with Monique show. And I want to say first and foremost, Happy Thanksgiving. I know I'm a little bit early. By the time this show airs. Next Saturday you guys already have eaten your turkey and spent you know time with your family and friends. So Happy Thanksgiving. You guys from my family, the Buchanan's to your family. All right, let's go on into today's show. Listen, I had one of my family members reach out to me. She wants to move to Waco, Texas. For all of you that don't know, I was actually raised south of Waco, Texas. Born in Seattle. Yeah, big difference there, right. Anyways, she said, Well, you know, Monique, she's older. She's about 62 years old. She said, uh, I was thinking about selling my property here. What do you think? And I said, Well, you know, what, if I were you, I would simply rent out the property because her mortgage, remember, she was one of the ones that bought, you know, eight years ago. So her mortgage is actually like, I think $1,000. So $1,000, and she has a three bedroom home. It's about 1800 square feet. So I said what I would do if I were you, because she doesn't know if she's gonna like Waco, Texas yet, you know, she's from Vegas. But she wants to go to Waco. So I advised her that let's do this, let's rent out this property here in Vegas, right? Vegas is booming. They just announced that the Oakland A's are going to be probably coming to Vegas. So there's just so much going on in Vegas, she's going to definitely make money on this property. So with her being older, I advised her, Hey, don't sell the property, go ahead and keep the property. Let's rent it out. You know, later, if you want to sell it, you can but let's just rent it out for another reason is you don't know if you're gonna like Texas. So she's gonna rent this property out, she can rent it out for $2,300 a month. Okay, that's about the going rate for her property. Right? She's gonna go out to Waco, Texas, and she's gonna rent a house out out there in Waco, Texas. And that rent is only $1,300 a month for a nice house comparable to the property that she have here. Now, with that being said, $1,000 of that, because our mortgage once again, remember, her mortgage is only $1,000. So she's clearing 1300 a month, in addition, from renting this property here out in Vegas. So she's basically not paying for the rental at all, because her house here in Vegas is paying her rent. And Texas, you guys now isn't that great? Isn't that amazing? She's older. So now instead of her, you know, kind of struggling here, she's able to go to Waco, Texas, have this property pay for her property out there where she's staying, right? Because it's a wash, because she's clearing 1300 A month because her renters are paying her mortgage. And in addition to her mortgage, she's walking away with an extra $1,300 a month. So now she's gonna live out there rent free, right? And see how she likes it for a year. And the whole while she's going to be making equity still on her property here. That way she can see if she really wants to go ahead and really put roots down in Vegas or Vegas and sorry, Waco, Texas, or come on back home and have this house ready for her in a year. When the renters aren't going to you know, when their lease is up, she can go ahead and take her house back or she can go ahead and sell it if that's what she wants to do and buy out in Waco, Texas. Now today's show, I want to give you options because a lot of these the majority of you that have purchased homes even two three years ago are sitting on equity sitting on liquid cash that can be made liquid for you. Okay, so today I am going to talk about HELOC loans. You know, these are loans that you can take out for a variety of reasons. And what it is, is you're basically taking a loan out against your home. But you can take this loan out for many reasons. Okay. A lot of people I just want to, you know, put the reasons out there because a lot of people think that they have to be for certain reasons, but they don't. It's your home. It's your equity that you are sitting on if you don't know what I mean by equity. Let's say that I sold you house four years ago, four years ago we bought that house for 300,000. Today that house, if you see your neighbor selling it is worth 450 That means that you have $150,000 that is accessible to you. Well typically 80% of it but that you get the you get the general idea that money is accessible to you. There's different ways one way is called a HELOC. equity line of credit, or I'm sorry, a home equity line of credit aka we call it in the industry a HELOC. Okay. You can use it for a home improvements. You can use it for debt consolidation, you know high interest debt, if you got a higher interest, you know, personal loan or you could pay it off and put it all on your HELOC. You got educational expenses, maybe you're almost done paying off those student loans. You can access that money, the equity in your home to go ahead and take care of those things. You have emergency responses or expensive investment opportunities. That's the number one right there. I'm gonna stop right there. Investment opportunities is why I have or I'm speaking about this on the show today. Don't let that money just sit and dwindle away. Okay, put that money to work. What do I mean by this? In fact, I want to give a shout out to one of my sellers right now we're in escrow. And she told me Monique, I'm so thankful I heard your show about three years ago. And you said put that money to work so I'm basically we're saying it again she did that she went and bought a high rise. Member I was talking about the high rises. I don't know if you guys have been with me too long. If you're just joining this as Monique Buchanan. With the welcome home with Monique show. I am your local Las Vegas realtor. You can reach me at 702-984-3700 If you're thinking of selling a property, buying a property or investing 702984 3700 Anyways, you guys remember when I was telling you guys, they had condos on Flamingo, and Decatur going for $80,000. And they were two bedrooms. And I was telling you guys the location is prime. They at the time they were talking about building that stadium? Well guess what? As soon as they went ahead and built the Raider stadium, you can't even you can't even find condos in that same area anymore, let alone if you do find them. They're going for like 250 It's crazy. So I also talked about the palms place. I let you guys know that you can legally Airbnb at the polls plays in fact, they will manage it all for you. All right, the high rise. Why not own a Las Vegas high rise for as little as well now 230,000 But I was selling them. You know, couple years ago during the pandemic for 170,000. You know, now they're worth like $330,000 think I said 230. But they're actually at 330. And that's the studio. And here's the thing, guys, they're doing the f1 one of my clients that I sold to at the Paul's place he called me and said, Monique, I just rented out my palms place that you sold me. I rented it out each night for $5,000. That's right, because he's in a prime location. He is less than three miles away from the Raider stadium. His his high rise that I sold him is facing the Las Vegas Strip. So yes, there's so much opportunity there and I can still sell you one of those as well. Because there's still a little window still open to go ahead and grab one you know and and have that as an investment property. Las Vegas high rise in prime location right on Flamingo. But anyways, like I said for more information on that 702 94 3700 Back to my client. She said Monique, I bought a high rise. I bought a house in in Summerlin and had bought another property. And she's having me sell the other property right now. So that's what I'm going to talk about today. She took an access the money that she had, in her first property, she pulled that equity out through a HELOC. And she reinvested it into the market. And now she has three properties, gaining equity and making more money that will be accessible to her. So she just was so thankful and I just thank her for being a listener and I thank all of you guys for listening and you know, you got to do what's best for you. But I'm just here to spread the word and try to you know, help as many people as I can. So with that being said, you can pull out a HELOC. Now the reason I'm telling you that it's a great time to do that right now. You guys

Speaker 3 9:38
there is so much opportunity out there right now. Okay, yes, the rates are higher than we like. But guess what? The builders are buying down your rate. You guys heard me talk about one of my premier builders he's they're buying down the rates for my clients. So if you want to go buy a brand new home I have another builder reached out to me two days ago. They're buying the rates down at the 3.99 We haven't seen that low of a rate since 2000. What 17. So you can get yesterday's rate today. But you have to have the right realtor or professional to guide you to these, you know, opportunities. And to kind of hold your hand through the whole process and tell you what's coming up next, and what this looks like. Now, she listened to my show, and that's how she gained that knowledge. But I'm here you can call me, I would love to assist you. 702984 3700 Okay, guys, so he locks, you can access the equity in your home. Okay. And then pull out, you know, 20% Let me give you an idea. Remember, I said I have a builder right now that's doing 3.99% rate for your rate. And that is a that is a 2017 rate. But we're gonna get that rate for you today. 2023. I know how all right. So let's pretend that you say, okay, Monique, I'm gonna do this. I called you, I spoke with your lender. And he says that I can pull out 100,000 Well, I don't need 100,000 The property that I like the brand new home that I know, I can rent out for $2,400 a month, but my payment will be $1,600 a month, because I'm going to take advantage of the builder buying down my rate, right? That I will guide you to, you just need to put $75,000 down that's 20% of 340,000 that will make your payment on that brand new property, your investment property $1,600 a month, right, you're able to charge $2,400 for the rent right now on that property. That means you're walking away with $800 in the positive every month. Okay, so now you're walking away with almost an extra $1,000 a month that you would not have had. And you're building equity, and making more money on that brand new property you just bought. And you put renters in. And by the way, you do not have to manage the property yourself. I have a lot of people reach out to me and asked me that no, you do not have to manage it yourself. You don't have to deal with renters unless you want to. I have a property management group, they they charge a small fee, if you charge $1,000 a month, they're charging you $70 That's it 7% That's how much they charge. Now there's different ones you can shop around, but that's about the going rate. That way you don't have to deal with the weight, you know, the calls in the middle of the night, or this is broken, that's broke, you don't have to deal with you know, finding the tenant, they they will screen attendance for you. Okay, so you can let them do what they do. And then you can walk away with a great investment, almost $1,000 Every month extra, and you're gonna make equity just like you did with the house that you're in right now. Alright guys, this is Monique, you can if you're just tuning in, and I am talking about putting your money to work, you are now sitting on money that's just sitting there not working, not making you any more money. Okay, if you have purchased a home, even within two years ago, you can access those funds, I can guide you to investing because you're gonna get a great deal right now. As soon as the Feds lower the rates guys, those great deals are going out the window. Okay guys. So now I'm going to bring on the true professional, my lending guru Mr. Anthony Valentina with guaranteed rates. He's going to just go over some of the you know, nuances when it comes to HELOC loans and just, you know, information we should know about that. Anthony, are you there?

Unknown Speaker 13:34
I am, how are you? My

Speaker 3 13:34
Anthony? Hey, I'm doing great. Thank you for coming on.

Speaker 4 13:40
Absolutely. I always love talking shop with you and all things real estate. So as always, you're the source. And yeah, just let me know what kind of questions you have. And I'll be able to take care of them for you.

Speaker 3 13:53
Yeah, I want to I just want to say I really appreciate Anthony, he is the wizard. Like I always say you guys, if you don't know, this man is the lender that the other lenders go to, whenever a fire pops up that they don't know how to put out this man knows how to do it. So I appreciate you know, having you on the team. Anthony, you're a great resource. And and you're a great resource for my listeners, you're spreading the word of, you know, tidbits that we just don't know. So I was explaining that if you have $100,000 worth of equity, I believe you told me what was it 80% That the that we can get and liquidate through a loan

Speaker 4 14:31
there. There's some there's some aspects where you can go up to 95% even 100% Obviously the higher in loan to value then the higher the rate you know, but the general is is 80% loan to value. You know guaranteed rate does have a one stop shop fix key lock where from start to finish. It takes five days, no appraisal, and that goes up to 90% loan to value. So basically every day 100,000 in equity that you have, you can tap into 90,000 of it and, and like you said, you know, right now we're at the end of a debt cycle. And so, you know, now more than ever is the best time to capitalize on asset purchasing. And so you can leverage the equity that you've built over the past couple of years and, and no one wants to touch their low rates right now for their first and then the twos and threes, because those are unicorn rates, right? We're never gonna see those rates again. So having a HELOC, a home equity line of credit allows you to still tap into that equity without interfering with that first, where you have the good rate for your first mortgage. That

Speaker 3 15:40
is phenomenal. And I kind of went over. I mean, I don't know if you guys caught that. But you don't have to basically touch your your rate. And then in other words, Anthony's saying, Hey, if you if you have a 4.25 or a 2.99, don't worry, Anthony does not have to touch that he can get you this HELOC without bothering that or changing that at all. And I went over a couple reasons. I mean, if you have, you know, people think that they have to have a certain reason to be able to access that. But even if you're doing you want to access that money for a wedding, a business venture or maybe you want to open a business, but like I was saying, reinvest into this market right now is is what I would personally do. And what I actually am doing right, Anthony?

Speaker 4 16:22
Yeah, I mean, a lot of people, what they see is, you know, a debt cycle. Last about eight years, we've had about 13 of them since 1940s. And right now, we're on year six of year eight of this latest debt cycle. And typically the first five years of a debt cycle, people are incurring debt, they're purchasing things, everything is great. They're using credit cards, going on vacations, and then the last three years of a debt cycle. That's when banks tighten up their wallets. And they implore people to start paying off the debt that they've incurred. So now more than ever, when you see HELOC and home equity lines of credit, it's so it's up over 300% year to date, meaning a lot of people are now taking advantage of HELOC, like you said that they want to consolidate debt if they want to purchase a new asset if they want to do investment. But the good thing is, is if people have debt, whether it's credit cards, car payments, or whatever it may be, they're sitting on equity that they can wipe out those high interest rates and high payments and say they have 1500 in monthly debt. And they take out some money that costs $300. Now they wipe away $1,500 A debt and replace it with 300. Now they just saved themselves $1,200 a month. And that allows them to do things like invest in real estate, or to purchase another house, it gives them a lot more wiggle room that they didn't have if they didn't tap into that equity.

Speaker 3 17:45
Absolutely. And that was you know, be so pivotal for so many people out there that are listening that are weighed down by debt. Like you said credit card debt, student loan debt, you can access the money that you're the equity that your home has made over the past 3456 10 years. And you know, take that burden off of your shoulders. You know what I mean? So absolutely, that's why, yeah, and like you said, it's a smart move no matter what, because you're not going to change your current rate. That's the main thing I want people to understand. That's huge. You don't have like when you refinance your house, it changes your right, correct, Anthony.

Speaker 4 18:28
Exactly. When you refinance, or you do a cash out refi you're changing out that first mortgage, whereas when you do a HELOC, or home equity line of credit, it's a second position. So it's behind the first it's completely separate, you know, and it just gives you the flexibility. And that's what it's all about is being able to tap into that equity that's just sitting there doing nothing. And what better than to have an amortization of a 30 year with a single digit rate that you can pay off double digit interest with lower amortization, or only five or seven year terms. So you're bait you're you're not only consolidating debt, but you're lowering that monthly all encompassing debt, which just gives you more flexibility during these times where, you know, pocketbooks get a little tighter.

Speaker 3 19:15
Right so if you have like a, you know, a 12% interest rate on a credit card, you can just use your HELOC to take care of that and now the interest is much less you're saving that money monthly putting it back into your pocket now. Now explain this to everybody. Like I like to say Anthony explain it to me like I'm five years old, the HELOC? Is that alone or is that kind of like a credit card where you can go back and get money or do you pay it off? And and I guess my last question is, can you pay it off early or how does it work? Exactly.

Speaker 4 19:48
Yeah, so basically, you have a you have a a draw period of you know, say they tell you you can get up to 100,000 you can you can use that all that 100,000 But then say over the next 1224 months, you pay half of that back, and now it goes to 50,000. You have a draw period, sometimes it's five years, sometimes it's 10 or 15 years for you can continue to access that money. Typically its minimum five years. So if you have $100,000 line equity line of credit, you pay down 50,000, you still have that other 50,000 available to you for five years, let's say. And then after that draw period ends, then they close it to where you can no longer draw from it, and then you just pay it off, and they amortize it between 20 to 30 years. So yeah, I mean, it's like, it's like a line of credit. That is never ending, depending on what the draw terms are.

Speaker 3 20:41
Really, I could get more than 100,000 out. Because if I keep going back to it. So it's just it's almost like a credit card in the sense that you can use it and reuse it. Is that right?

Speaker 4 20:54
That's right, you can use it reused. Right, right. No prepayment penalty. And it's really just about math. Because you know, math never lies. And it's like how much debt you have, what are those payments? And then what are you replacing it with? What interest in what debt and what payments? And 99.9% of the time you're going to be able to consolidate those lower term higher interest? You know, trade lines for a small 30 year fixed. One, one and done. You know, HELOC?

Speaker 3 21:26
Well, you just got me excited. So let's put you this. Let's picture. Why let's say Shelly, Shelly hears this show. She called me up I get her with you. She gets a HELOC, right for $100,000. From the equity in her home. Now she calls me back, I take her out to get that property, I go purchase a property with her her first investment, she uses $75,000 with you to put 20% down, she has five years to draw. Now she's able to take the equity out in two years from the property that we bought, right from her investment, she pays off the 75,000 that she put down, she can then turn around and take another 75 and get another property and continue to build that. Is that right? I mean, if she pays it off, or that's

Speaker 4 22:14
That's exactly right. The the interest that that is accumulating on there, that renters paying it while you're gaining equity every year while you're having the tax incentives while that renter is paying down that mortgage. You know, all of that is is economic utility for the homeowner. So it's not about just, you know, picking up a property, it's being able to leverage that property to see passive income. So you're you're having your equity work for you not you work for your equity. And that's the big, that's the big caveat there is letting that equity actually work for you and not just sit there doing nothing.

Speaker 3 22:55
Yeah, that's great. I've just gotten yeah, that's, that's awesome. So I didn't realize that you could go back in grab more money if you need it, you know what I mean? So just to get to make it, I'm gonna try to make this kind of simple. $75,000 is what my clients gonna put down on the house, we've gotten her like you said, $100,000 equity line of credit. Now 75,000, she puts down her mortgage, and this is with us getting her rate bought down, it will be 1600 bucks just for easy math $1,600 a month, she has a renter pay or $2,400 a month for the property. She's walking away in the positive with $800 a month that would almost cover the HELOC loan payment right of

Speaker 4 23:39
the seven, you're looking at around nine, you're looking at around 900 $900 a month. So it basically covers it to where you're able to capitalize gain and gain an asset that's making you you know, equity that someone else is paying down the principal and you have those tax incentives. So when you look at that and put it in a percentage form, you know, your seven 8% return on that investment, which you can't even get that with the most volatile stock market.

Speaker 3 24:06
Wow. And for me, I'll say it like this. You just got a whole house for $100 a month.

Speaker 4 24:13
Yeah. Yeah. Yeah, it's not digital. It's not based off of currency or stocks or with inflation. It's really It's recession proof. It's a physical asset. It's real estate.

Speaker 3 24:24
It's real estate, and it's also something you can pass down to your children. So I don't know, I hope I didn't, you know, confuse anybody but if you're just tuning in, this is Monique Buchanan, and I'm the host of the welcome home this morning show. We've got Mr. Anthony Valentino. And he's giving you the breakdown of why is so important to understand how HELOC loans work, how they do not touch your equity that you earn your equity or your rate that you're currently and I'm just so excited that I'm stuttering at this point. Because I did not realize that you could access and re access. So if you pull $50,000 out of your $100,000 house lop, you still have 50,000 available to you, if you need it at another point, you can pay back that 50,000 So you have five years typically to go back and forth with us in this money. And if you invest this money, like we were just talking about, you know, you can walk away with a property that's going to gain more equity that you have the rents are paying off for you. And you're going to score a great deal right now because for the first time in eight years, the sellers are paying down people's rates. The sellers are paying closing costs. We are in an extremely hot market we have been for how many years now? Anthony?

Unknown Speaker 25:39
Yeah, it's been almost five

Speaker 3 25:42
Yeah, many years hot hot hot for the sellers. Okay, so no, no, it's just I see the great deals that we've been getting Anthony our clients have been closing with not 8% rates, what's not 7% rates, but Anthony has been buying their rates down and getting them into 5% rates and 6% rates right Anthony? Yeah,

Speaker 4 26:04
even for we've been we even have clients in the mid fours

Speaker 3 26:08
Yeah, we're not talking about 2017 Guys we're talking about last month this month. Okay, so please please understand that the deals are to be had right now in this market. What do you say all the time Anthony what they wait until the rates drop?

Speaker 4 26:27
Oh, if they're waiting for the race address or waiting for a longer line to jump in to try to get their offer accepted.

Speaker 3 26:34
If they get their offer accepted you guys always hear me talk about many I had many stories but the one that I talked about mostly is the gentleman that we put it in offer after offer 20,000 over the list price when the rates were in the threes and fours he never got home. And that is what that's the writing on the wall guy because we still have a high demand for Las Vegas properties. And we are in a shortage of Las Vegas properties right Anthony?

Speaker 4 27:01
Oh yeah, I mean there's no one's wanting to sell their house that they have a 2% rate and they rather just rent it out or or leverage it and so it's just creating even more of a shortage and there's no end in sight especially when you have you know the the you know Major League Baseball the A's are come in they just confirmed it they got the eight yeses yesterday. You know, obviously we have the Golden Knights we got the Raiders we have potentially the Boston Celtics making it the Vegas Celtics in 2026 It's just Oh

Speaker 3 27:35
yeah, so here's the thing guys Vegas is not slowing down it's not slowing down so therefore the prices will not either. Yeah, what I mean so anyways, I hope you guys enjoyed the show Anthony thank you for coming on and and just letting us know how how important it is to take advantage of your HELOC opportunity and your property and if they want more information they can call 702984 3700 I will get you with Mr. Valentino and he will walk you through this you guys we will hold your hand if you are ready to take the the equity out of your property and invest start making it make more money for you is that right Anthony?

Speaker 4 28:15
That's right yep that's real estate is the number one way for you know your your asset to make money for you not you make money for the asset and it starts with real estate.

Speaker 3 28:26
Right if you don't make money while you're sleeping your work for the rest of your life. Alright guys, well, thank you so much for coming on. Anthony. We appreciate you like always look forward to having you on again. Thanks for all right guys. Have an amazing Thanksgiving everybody, be safe. And until I hear from you. Have a great weekend. Thank you for listening. Please remember all terms discussed are simply an estimate my license number is S 1788 46. My phone number if you'd like to contact me is 702-984-3700. You can also find me on YouTube and please join me tomorrow at my church Living Word Church on hassle. I'm part of the EXP Realty Group. Alright, tune in next week.

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