 This is Tina Nisley with Keller Williams Honolulu and this is the life as a land is in its real estate So I got a great show today But first I want to go over we all know that the real estate market is just insane right now And we hit a record average price of a three bedroom two bath single family home on Oahu in July Was one million dollars So that's a record is also 10 days was the average days on the market for the single family homes And we have one point three months of supply right now Which means if no new listings come on the market in the next 1.3 months, we would have no more homes to sell So in July 424 homes were sold compared to in June. We sold 473 I think last homes were sold because there are less available So it's getting to be an issue So if you are looking to sell now would be a great time to get it on the market And if you're looking to buy just don't give up I do have a couple videos out there on some strategies to get your offer accepted But right now I want to introduce Dave Rodriguez from approved loans and He is going to talk to us about credit repair some options for some business owners And then we're going to get into some investment opportunities. So thanks for joining us Dave. How are you? Very wonderful. Thank you for having me. Yes. Thank you. So guys tell us a little bit about yourself Well, you know what what I do is that I'm on the island of Oahu So I'm local here hanging out on the windward side where it's a little wet and windy, but You know still loving it Like you said, I actually am with approved loans and what I concentrate on is credit repair business lending Sba loans and also real estate investment funding. So Oh, wow. All right, so let's talk about credit repair first We know that After the long shutdown and coveted his hit everyone and people are now just getting back to work We're gonna see some people with some some credit issues What are some strategies for first of all, what do you expect to see? Well right now, unfortunately a lot of people did see or at least take on additional debt prior to the pandemic so a Lot of people they lost a lot of gig jobs that they were dependent on to pay these bills so they ended up with a lot of late payments some Charge offs and these are the things that are gonna, you know be a detriment to you If especially if you're trying to buy a home These are the things that you need to clean up to be able to line yourself for that right Interest rate that allows you to be may be able to make that payment So as we all understand credit really is a big part of your life and affects every aspect of it just about You know, of course when you go to buy a home, you need to have the right credit score Insurance companies are looking at your credit report to ensure that you're you know responsible enough to ensure and You know even job employers employers are looking at your credit report just to make sure that you know again There's a level of responsibility there that you'll bring to the job site Wow So what are some strategies for folks that may have gotten into some trouble over this last year? the first thing that needs to get done is actually pull a hard credit report which means that you are going to the credit agencies and Actually pulling a report versus getting a score a FICO score. You may have a nap on the phone, which we all do That gives you a rough number as to where your score is, but it doesn't give you detailed information as to what issues you may have on that Again, the late payments the charge offs 30% of people out there actually have Discrepancies just due to nothing more than clerical error So these are the nuances that will actually affect your credit score that can easily easily be rectified So that is something that you you can help people with You can help them get there. They're hard credit pull help them kind of go through and And see what was real in what's not and correct Yes, in addition to that there there nice little tricks in the trade that you can do such as Tradelines, which actually are a real good booster to be able to raise your credit score right off the bat so, you know what there are ways of you know increasing your score overnight and Again, these are this is where I come into play to be able to help you out and make that happen So what is it trade line? the trade line is actually a means of utilizing another Individuals credit credit line on your credit report to be able to increase your credit score. Oh Oh Okay, so so I guess I always Thought we should keep our credits separate. So my credit Amount or you know what I have available isn't affecting my husband But now you're saying it's better to maybe bring on someone else and increase the amount of credit You're eligible for to give your debt to income ratio lower No, it's actually a matter of having different kinds of credit on your credit report in addition to having Credit lines that are both old that have high limits with low amounts on them So again, let's say for example a credit card that Somebody's had for a five-year period with let's say a ten thousand dollar credit limit But they only have two hundred dollars charged on that is a great booster for somebody else's credit So again, that's what a trade line is utilizing somebody else's credit Card or other credit line on your credit report to be able to boost your credit score Great. So you can actually help people kind of reduce that debt-to-income ratio on paper Which is a big thing that lenders look at Which we do know based on some other episodes I've had with lenders that they're starting to look for they want to lower that to income ratio now So yeah, so that is great So if anybody feels like um, maybe they got into some trouble, but they'd still maybe in a year So what is the average time to get your credit repaired? Within a six-month period, we'd be able to get your credit score up from a 500 to a mid-seventh You know relatively quickly, but it is a matter of really timing and also just do due diligence and keeping up on it Wow, so and maybe the market will slow down a bit in six months and there'll be more houses available Just as you get your your credit cleaned up So if anybody is interested in that reach out today, you can reach out to me. We can get you connected I think that is absolutely awesome and I can think of some clients that could probably use their help so you also do business credit and That type of thing. So how does that work? As we all understand business owners, their first line of credit is going to be via their personal accounts so Starting up a business you are going to be utilizing your own credit to be able to begin and start your business credit lines so of course you have to have your credit Straight and narrow as possible and and in line to be able to support your business But then again, we can help out with let's say for example equipment leases Startup funding so we do work with startups. You've got yourself a great idea Let's talk about it and let's see if we can get you the money that you need to be able to get your product or idea off the ground Wow Okay, and then earlier you mentioned the SBA loans I guess off camera. We're trying to SBA loans. Are those still available to business owners or Where where are we with those right now? Right now in addition to SBA lending, there's actually a lot of grants out there So for example one big one that I've been working with a good number of clients with is the idle loan Actually, I'm sorry the idle grant. There is both the idle grant and also the advance Now the grant is either a $10,000 or $15,000 amount that is based on the loss of revenues between the 2019 and 2020 fiscal years, so let's say for example somebody who's 1099 that a Contractor doing let's say for example uber A uber driver. They lose 20. I'm sorry 30 or 50 percent of their revenues because of the virus They may qualify for either a 10,000 or $15,000 grant, which is basically free money. You know, this is a federal backed Program that you have to jump on quickly because right now there's actually talk about Allocating half of those funds because those funds have not been claimed by the pot the population yet So they're gonna be allocating these to the new infrastructure program So there's currently 13 billion dollars in there, but they're gonna be allocating about 15 billion off to the new Projects that are gonna be happening with to take care of our roads in our and our ports So we've you've got to move quickly on this So you're seeing people aren't Applying for them. So the money is just kind of sitting there and it's a user or lose it situation Now you are right and actually that's where I come in because unfortunately so many people don't understand that it's out there Everybody hears about it on the television and radio But they don't know where to go to get it done and that's again where I come in because I understand the loopholes And also the hurdles to get past that'll then get these people the approval and the monies that they need so It's just a shame that the feds make it a little difficult to Actually be able to claim that money But I can't really blame them because the first round there was a lot of you know There were a lot of false claims that were paid out. They were handing money out without asking and or verifying any any Anything at all. So a lot of people took advantage of that and it was just now We're having to deal with these hurdles that are put in place by the feds to be able to ensure that the people Requesting the funds are actually deserving the funds So now let's clarify who's eligible. Is it just 10 99 employees and do they have to take a loss? During the last year or is it yeah, so let's let's clarify Who's eligible for those grants because I know there's probably a lot of people wondering going, you know, and I qualify so Yes, you're absolutely right. And actually The best thing to do is get in touch with me and we can go over your your case as to what your situation is and if you had any losses Unfortunately, this is not for employed Employed individuals. So if you are employed by a company, even if you may have gotten laid off, this is not the program for you This is for people who may have a side gig or even have a business that had taken a loss Huge one right now or restaurants because of course, we all understand they were shut down for a good amount of time There is also the restaurant rejuvenation Program that is going to be kickstarted again because unfortunately, there was a lot of money again handed out to people who did not deserve the funding so The money's out there get in touch so I can help you See determine whether or not you actually qualify Wow Okay, so again, if you guys have questions if you are a 1099 employee and you you had a loss I'm giving a call and and we can get you connected And then you guys also the big one that I know a lot of us want to hear about is you do loans on investment property. So people that want to buy the multi Not the fix and flip which I do a lot of I work with a lot of but the people that want to buy the multi door. So can we. Yeah, can you share with that. How does that work. Actually, you know, real quick clarification. I do do the fix and flips also Yes, so you're doing hard money or what what type of loans. Are you doing for fix and flip Both short term and long term lending for both fix and flips and also investment properties for either duplexes triplexes multiplexes and So again, multi use also. So let's say, for example, two story building residents on top, res retail on bottom, we can help you out with that. So we do just about everything except residential Okay, so I know everybody's going to ask with your fix and flips. Are your loans strictly first position or do you have options for the gap fund loan There are multiple options. You know, it all again depends on a lot of things. Part of it is that again, we're talking here in Hawaii right now. I do work nationwide. So a certain states do have certain regulations and stipulations that don't allow for certain lending, but again in Hawaii here we've got quite a few options with regards to Providing the funding to be able to get into the property that you want to invest in Wow. Okay, because I do work with a lot of investors who are doing the fix and flips. So let's go down the fix and flip road. So someone Um, would like to to get into a fix and flip. What's the process that they need to do to get with you. Is there a certain loan to value. How would they get started here being here in Hawaii, like you mentioned earlier. The the average price of a home is up there now, you know, a million dollars, which is substantial. So in terms of the dollar amounts that we can Fund obviously a million plus, especially dependent on the number of actually the type of property itself again duplex triplex. It's a base debate. I'm sorry case to case type Scenario that we really look at it with regards to what's necessary from somebody who was applying. We're of course looking at Income and whether or not the property has renters in it already if if whether or not it's going to be a fit fix and flip. As you mentioned, and if the extent of the work that's going to be done. The amount of money that's needed for the actual renovations itself Versus the purchase of the property. So, you know, again, we take a bit into consideration as to, you know, with regards to the funding. So with the multiplexes. Are you looking for us that return I am. We've talked about cap rate on Hawaii. Our cap rates are not as strong as they are maybe on the mainland. So do you guys look at at the cap rates or do you make the adjustments for it being a Hawaii property. Yes, we do make the adjustments for it being in a Hawaii property. We understand and we have got multiple lenders who understand the market in the different areas of the country. Okay, so all right, so what I'm so with with the fix and flips and the even with the multi doors. Do you have a minimum. I know it's a hard for a lot of new investors to come in and even get started because a lot of the hard money lenders are looking for experience. They want them to have done two or three deals before they'll even consider loaning to them. So do you guys have that stipulation also or Again, depends on the lender and of course depends on the the person who's looking looking at Quaring the funding if they have if they're strong in certain aspects and weaker and others will go to one lender who will accept their the pit their docs. If not, you know what we'll adjust and go with whoever will accept the docs to be able to get the funding in place. Okay, so I do have every once in a while I will have on people that aren't in an LLC. It's a it's a single person and they want to purchase a home, fix it up and then refinance it because it won't qualify for a conventional loan. So do you have lenders that will loan to people on a personal level or does it always have to be to an LLC. Oh well you know what we can do on a personal level but the terms are going to mainly going to be on a shorter basis, most likely a short term be a loan. Just due to the fact that again it's going to be with the understanding that it is a fix and flip with regards to the refinancing. Absolutely not a problem and again depending on the terms alone. You know, of course we all understand they're going to be different stipulations and requirements and actually payouts for the loan itself. Again all depending on what the plan is for the property and overall for what the owner wants to do with it. Okay, so now what about payments. I know we we normally utilize hard money loans for our personal fix and flip and we're making the interest only payments. So is that what your loan is going to be? Are the loan lenders are expecting also or do you have a balloon payment at the end? How is that working with what you're seeing? There are a few different options. Again, like you had mentioned earlier, interest only is one option. Again, and a lot of this depends on the duration of the loan itself. So interest only, there are options with balloon payments at the end. But again, it's a case-to-case base program and it all depends on the lender that we're going to be approaching with the docs too. Alright, so if you work with a lot of people where you've repaired their credit and then got them into a loan for investment properties and do you follow them all the way through? Yes, absolutely. And then because again, they hear that we do funding for investment properties, but once we look at their credit report, we understand that there are certain issues. We discuss that with them. You know what they may have a plan set at this time, but obviously the timeline is going to have to get altered to be able to accommodate for corrections in the credit. Then once their credit is corrected and the score qualifies them for the funding that they want, then they're able to go out wholeheartedly, confidently with the idea and understanding that they can get the property that they want. Wow, so did you see a lot of investing going on during COVID and during the shutdown or were people kind of pulling back from investing? It was actually a mixed bag because even people who had been doing a bit of investing, they were taking hits with regards to credit just due to the fact that they're having problems with tenants who were not paying rent. And here we are now where of course we're talking about that at this time with regards to whether or not they're going to be evicted, they're going to be evictions happening last month or this month, but bottom line is that it's going to be happening soon here because so many landlords have not received payment for months, so that has really affected their cash flow, which in turn hurts them with regards to being able to make the payments that they need to. So again, like you had said, a lot of these people they had problems that they had to sacrifice somewhere and unfortunately their credit score did take quite a beating during this time. So what do you see or I guess what are you predicting that these lenders are going to do with, because it was it was a catch 22 if you owned four doors and nobody was paying rent you couldn't make your mortgage payment. So what do you predict that these lenders are going to do with these these properties are they going to foreclose although we all know banks are not in the property management, you know business they don't really want them back. So what what do you predict they're going to do or what do you see them starting to do now. At this point, as far as I'm concerned it's a real toss up. You know right now. Nobody really knows what what they're going to do. They don't want for the owners to get kicked out and lose somebody who was good for X number of years. And, but at the same time there there are programs out there again going back to the feds and their their programs to be able to help with regards to the mortgages. You know that there's a lot of free money out there again or to be able to help people out in those situations. Most of the the monies though are directed to the residents of the properties and not investors. So, it's, it's, it's a tough situation. And what's going to happen, it's, I have really no idea, because this happened way back when back in 0809. You know where the crash happened, the market tanked, and people ended up bailing out of homes that they couldn't afford and they couldn't have quality shouldn't have qualified for. So, here we are in a situation that's different where people qualified for them, and they were doing well with them, but the people who they had in place, they were the ones who unfortunately defaulted on the agreement. So, it's a completely different scenario as to what the future holds. Unfortunately, I wish I wouldn't be able to know, because then you know, we know what direction to go in. Yes, yes, me too I wish I would have foreseen how crazy the market would be because those first couple of months of the shutdown, you know people were a little apprehensive investors didn't really want to pick up properties because they didn't know where the market was going to go and now we're all kind of kicking ourselves because man, we should have picked up a few more. And I'm also seeing short term rentals have now just now they're bidding wars where six months ago, you people couldn't dump them fast enough. Again, I have an episode with a short term property manager who was like, Oh, there's like 40 available in one building and now we're getting beat out like crazy for my clients trying to pick up the short term rentals. So if we'd only known right that that it would just take off. But yes, so is there any, you know, insights or recommendations you would give to people some last parting words that that you think that people would help people. Yes, absolutely. You know what I'm getting lying because there is money out there for you. I wouldn't hesitate, because again, like I mentioned, the idle program itself is going to be defunded or at least, you know, part of half of the monies are going to be going into the roads and the infrastructure program. So get on board as quickly as you can. Aside from that if you are a business owner. Let's talk because there are grants for female women disadvantaged business owners restaurants are getting a tremendous amount of funding. If you're looking at buying a home. Again, these monies couldn't you can allocate these monies into into your savings to be able to help you out. There are a lot of ways of utilizing the funds just it's just a matter of getting on board and getting signing up the document signing up. All right, well thank you so much so if any of this credit repair investment loans, some help with some grants, if any of that sounds good to you and any questions about that. Please reach out to us, we can get you connected with Dave. Thank you so much for joining us. This is great information and I know we'll be calling you I because we got a couple of investments we're looking at. So again, anybody out there that needs any help with any of those things. Give Dave a call, give me a call, and I will see you all in a couple of weeks, and this has been the life of the land is in its real estate. And again I'm Keena nicely and thank you think tech Hawaii.