 Once again, ladies and gentlemen, boys and girls and children of all ages, you are now tuned in to The Prince of Invest and coming to you guys and girls live all the way from the beautiful city and state of Haluahua, Hawaii via Denver, Colorado But don't forget to hit that like subscribe comment and share button How have you maybe catching this across the globe? But I thank you for tuning in if you're catching this live and or if you're catching the playback So the first thing we're gonna do today We got a very very special episode today coming up as you guys and girls can see we're gonna be talking about real estate And also this is gonna be a very good topic for all of our veterans All I've asked duty military all of our veterans to learn a little bit about their VA loan VA benefits Purchasing real estate. What's going on the world of real estate? Is it a good time to buy? Is it a good time to hold? What is the VA loan compared to a convention loan guys and girls? I better stay tuned y'all know. Well, it's gonna have a good episode here coming in At The Prince of Invest but I've been having a very beautiful day, but I got a very special guest today coming calling in He's down in Haluah, Hawaii He's a mortgage loan officer as well Military acts do the military, you know military major in the army and also he's a mortgage loan officer as well You know, I think he's been military now for about 19 almost coming up on 20 years And he's helped out, you know plenty of veterans around the world get into their first home sell their homes Refinance all of the great stuff. So What I further do let me introduce My guests and my cousin here, Mr. Sean Sutton. How you doing today, sir? I'm doing fine. They're friends. How are you doing? I'm doing outstanding. First of all, I want to say thank you for coming on and maybe I'll botch your interview I'm not not your interview, but your bio there a little bit So if I miss something kind of tell people about Sean Sutton who haven't seen or heard you what you got to say Well, one thing I'll say is that introduction was excellent But just like you stated myself, I am Currently a member of the United States Army Reserve I did a lot of years there on active duty and it kind of led me into this field of Becoming a mortgage loan officer. So they kind of give a little background on that in my story I'd love to tell this all the time to my clients Myself I never owned a home before until actually PCS out here to Hawaii And that was the things that me and my family we had to come out here From the perspective of my goodness look how much everything costs out here because that back home from where we're from I'm from Georgia and she's from Florida and We kind of look at each other was like, you know what I think we're rent for the first year So it wasn't until we actually got to our home and start noticing our neighbors who are active duty service members Just like we were family members and so forth We started to kind of look back and say, you know what we're paying an awful lot of money to You know, basically pay someone else's mortgage, you know You're out here and you're looking at a three thousand dollars to rent and then you add on the additional for like Utilities lights waters that kind of thing on a monthly scale for your housing cost can easily run you more for $3,500 just depending on Exactly what your needs are for your family size. So with all that being said it led us to kind of reevaluate how our finances were going and Let us to going in and talking with a financial expert alone officer and just seeing what our purchasing power was and Subsequently right after that, we were able to go out and purchase our own home and kind of, you know Look at ourselves in different lights. So, you know, we should have done this a long time ago and Started getting our hands into the real estate business Got it. Okay now for the people out there ask, you know What's the difference between a VA loan and a conventional mortgage loan? You know, what's the what's the difference? So when you start talking about a conventional loan the conventional loan pretty much anyone can utilize that From that aspect because it is open up to everyone There are different parameters that come along was using the conventional loan They may have to where they want you to put a certain percentage down It can be anywhere from like 3% up to 20% And really what you're trying to do was that it is opened up There are some different loan to value percentages that go along with it But when it comes down to most things people are looking at in terms of money like how much money do I have to show up With out of pocket to be able to get this house. So you're trying to avoid things So like having 20% down will pretty much allow you to dodge things like private mortgage insurance that you have With associate with your loan when you're doing a conventional loan if you're coming in and you're like most Americans You may not have that especially on the housing costs is ranging half a million dollars $65,000 maybe you're coming in with 3% if you why not coming in with something like that You may find yourself with private mortgage insurance with on a monthly scale Could equate to another $300 a month so it can be rather costly For those of us who are fortunate enough to be eligible for the VA home loan benefit However, when you're in a high-value market such as Honolulu, Hawaii You're able to come out and pretty much you have zero down payment I say pretty much, but is it zero down payment when you come out? Come out of pocket. That's huge. So that's one of the key advantages there So there's no private mortgage insurance as I spoke up before and when the government back loan things of that nature Interest rates relatively are the lowest So those are three key areas right there when it comes down to this VA Simply love about that product Okay Now with the VA loan you just spoke about You know one of the big things is that you don't have to put anything down Conventional loan JP Morgan just came out and said you're gonna have to put 20% down and have a 700 credit score And all of the great stuff like that, right with the corona virus is going on You see people lose their jobs unemployment numbers came out today jobless claims came out to about 30 things like 20 to 30 million in the last four months That's filed for unemployment and things like that with the current Times that are going on right now. If I'm in the market to buy a home Is it a good time to buy a home? What's a good time to sit on the sidelines? What do you got to say about that? Well, what the recent events that are going on now is pretty much split the market you have those who are Pretty much that can sit back and they have the luxury of being able to go out and make that buy so to answer that question quickly Is the good time to buy if you have the ability to buy if you find yourself in a situation where Your employment is in jeopardy. What are your unemployed have been laid off or even furloughed and you pretty much have no choice You're kind of sitting back and you're making decisions because you're trying to do things to make sure you and your family stay afloat But for those particular individuals that are out there and have the ability to Continue on receiving income. You're gonna find out a lot with state employees government workers If you're self-employed and you have a central business that's still available to you right now what you're seeing in the market There was a lot of volunteer Volatility when it first came out, but it eventually began to settle So what we call a bit of a roller coaster led to some really extreme swings Which you saw good enough areas where rates were super low and you can take advantage of that So what I was telling clients if you were in the market to go out and buy home to go out there and actively shop Because there will be a window a time frame to which you'll be able to come back We can lock your loan and really low rate that's not there prior to COVID and you could take advantage of the market Hmm So now what do you have to say to the person that says maybe housing prices are going to come down? I can get a better price. You know, what is the future of housing prices that we see so many people don't have jobs so many people are Not working What do you have to say for the future of a housing prices? You know, should I just wait and get a better price? You know, I think some of these houses are going to come down. What do you got to say to that? Well, a lot of that really depends on the market and the area to which you live in If you're just looking at in terms of like Hawaii in a sense Here we have a couple of things that kind of protect itself in terms of pricing in this one The big things always point out is supply and demand Because it's an island. We don't have a lot of land. There's a lot of people who come here. It's a tourist destination So inventory can sometimes sway right now. It's low You do have some shoppers out there Pretty good amount And it really has not deterred a whole lot of people from going out and still actively buying now Over the course of the last month or so sales have gone down but you still have people who are out there willing to sell their home and trying to uh, you know Move on with life as normal But those buyers that haven't deterred them because if you look at the terms of a VA loan Um, you still have different entities that are still on island. You have those who are living on base housing You have those who are coming out of rent or agreements life still going on and those individuals are still receiving their paycheck So the market itself is really Advertisement to them. So they're able to go out there and was Not having so many shoppers out there and able to take advantage of that in terms of overall house pricing in pricing in the future I really see that. Um, it's going to be a long-term effect. So how is covet going to affect those? Um after the fact when we get back to work Just because we've gone through this period where you're out of work. It's going to be lingering effects to that So when individuals start making that money back or you may have some jobs that may never come back You got few and fewer shoppers that of what that translates to housing Dropping and again, I go back to it just depends on your area where you live at for here I think there will be a little bit of a dip but then you can see it storm right back Hmm. Okay. So now the federal the federal reserve The Federal Reserve chair, Mr. Jerome Powell He recently in February is a way to stimulate the economy going into the current pandemic He lower interest rates to an all-time low Like 2018 to like his zero to 2.25. I want to answer this question. What is interest rates with the Federal Reserve? Interest rates. What does that have to do with real estate? So the way I explain this to my clients is when they make those announcements, especially like I'm from a federal level um A lot of times that does not equate to what we consider to be the mortgage back securities So when they say that they're going to drop interest rates, we're talking about your credit cards your small term loans our short term loans, I should say Smaller loan amounts and people were giving us a lot of phone calls, you know, they were calling and saying, hey, you know Interest rates are going to be uh 1% are like there is zero percent. Hey, should I come and refinance and you have to tell them? You know, that's not applying to your mortgages is is talking about those Short-term rates small loan amounts things to that nature your credit cards You can look at trying to get those uh, you know those APRs down and things of that nature But as it retains to your mortgage back securities and so forth You just not see that translate over and not until those stimulants went through and then you saw more Secures being pumped into the mortgage market. Um industry and began to kind of sell things down Okay, now when you say that We didn't start seeing that into what part of the stimulus you were saying that we didn't start seeing that or whatnot Um, I believe it right after the 2.2 trillion took effect to see a little bit of a stability going to it and then thereafter I believe there was a secondary that came about and you start to really see the the industry respond for its rates Um Still would you still have that fluctuation that's still ongoing, but it's not as bad Hmm Okay Now you spoke about, you know, you kind of touched on the topic of refinancing with the lower lower interest rates or whatnot, right? But now as we look at the real estate market in general Over the next short term. Do you think real estate? Is destined overall, you know, just speaking of just uh, I know hawaii is a different market But just overall, what do you see in the next six months because a lot of people out there saying hey prince You know, I want to get into the real estate investment trust or I'm looking to get into real estate of some type of capacity What do you see in a short term within the next six months that you can see real estate is going? Well, I think right now, um, if you're looking just in the short term, um If you're seeing prices start to drop, I think that's going to be advantageous for those who are looking towards investing I mean, it's all going to go back again. It's going to be That's what there's going to be those who have the ability to do so and those who are not So when that divide happens and you had those individuals who you know, it's going to be a trickle effect Yeah, I say again, like with those who have the ability to buy You also gotta look from a seller standpoint. Do I want to actually sell my home and put it out there? Or do I want to wait? So I think you see a dip in terms of um, you know Depending on what my situation is. I gotta get rid of my property. I may sell it for lower So it might be advantageous for that person at that time to go in and make that make that buy and get a property That was relatively, you know more expensive at a lower price point and take advantage of that Or you can see um after the fact Um Again when you get more folks out there. Hey, maybe um from a seller standpoint, I'm able to go out there and sell my property for uh I got more pretty much more buyers out there so It's very unique situation as it stands right now in terms of the markets a lot of unpredictable factors out there They'll be interesting to see as we move forward Okay, right here. We're going to take a quick break. We're going to go into a break But once we get out of this break, we're going to get into the concept of what are some best ways to take some advantages Of what COVID-19 has pretty much put America in the world on pause And you might pretty much hit the reset on the u.s economy And what are some ways we can take advantage of that using you know what our veterans out there and what our people Or who may not be veterans or what not what they want to do So we're going to take a quick break and we'll be right back. Hi. I'm rosty kumori host of beyond the lines on think tech hawaii I was the head coach for the punho boys varsity tennis team for 22 years And we were fortunate to win 22 consecutive state championships My show is based on my book also titled beyond the lines and it's about leadership Creating a superior culture of excellence and finding greatness I feature a wide range of amazing guests who share valuable insights about how going beyond the lines leads to success In everything you do in life I'm looking forward to you joining me every monday at 11 a.m. Aloha And we're back here live on the prince of invest and coming to you guys and girls live all the way from a beautiful state Of Denver, Colorado via, you know, the wonderful city and state of hallelujah, hawaii And we're getting back into it talking about real estate investing going on with this pandemic or whatnot So now we've got our special guest mr. Sean suddenly here, you know, he's a veteran himself Surgeon of the military. He's a you know, he's actually he's on reserves right now And he's down in halloween hawaii and we want to talk about right now What can people be doing To take advantage people out of the military people that got their va alone things like that What should they be doing right now because you know military really haven't been affected financially So far with the pandemic that's going on. So what should people be doing right now? What's your advice? Well, prince, that's a great question and for those individuals who are fortunate enough to where you're still receiving Your income, especially with military families, even these civilians and so forth You also got to keep in mind you're receiving a lot of money that's tax-free especially like with your bh So translation when you're looking to buying a house or willing to take on a mortgage One key factor that common gets left out and thereby is kind of afraid of too is your credit So you'll be able to touch on that That's the time right now where You're sitting at home and you're kind of stuck when you're quarantined there and you've got your kids running around But pull up that piece of paper pull up a credit report Do a financial review kind of sit down and look at hey, you know what right now All of our expenditures have been cut. We're not driving around as much not going to work We're not going to lunch. We're not going to have to eat as much not going to the movies Those are all a little bit of extra money that we use as You know out of house expenses that can be going towards paying down debt Therefore putting you closer to your goal if your goal is to be a homeowner These are the little things you can do to help you save money in the long run because the better your credit score The better interest rate you receive So veterans that are out there and current service members who haven't Sit down review Work on that credit score to make sure that thing is at its highest possible peak Also, you're eliminating liabilities out of your paycheck and from the household You're going to walk out to see the better situation you went in So that's my key advice right there for those individuals who have those means who are on quarantine right now You want to take advantage of the situation that's been given to you That way you're able to go out and then Not even wait till after covid's over after because we've been in it now for a little over a month Go ahead and proceed to see like, you know, let's see what we qualify for And then let's go out and take advantage of the market and wait sits right now because interest rates are favorable So right now you can go from anywhere from three and a quarter down to 2.75 dispense on where your FICO sits and then when we look at what you have in terms of Liquid assets wise and so forth even though for VA. You don't need any money down having something like that Just makes you look like a stronger bar So the balls in your court really Okay, so when you look at liquidity, right you spoke about having money in the bank So how much money do I need how much money do I need? You know on VA of course, you said I don't have to pay put anything down How much money do I need to have for the closing fees moving fees? How much money would you probably recommend I step to a side? I got my credit score together. How much liquid how much cash do I need to have? Well, the great thing about the VA the answer is always going to be zero, right? So don't need any money down in terms of getting your home But I always tell people was you have to factor in your home owning Expenses because that's something can be definitely overlooked So I always say whatever your income is collect two months of that have that as your rainy day fund Or it could be the honey-do fund you got a honey-do list Oftentimes when people come in my office and they have a home that they we seek They want to go out and they buy the first thing that happens when they do find that place Now your mind gets to hey, I want to outfit this home. I want to buy getting punched I want to do all these little things It's always good just to have that set to the side. They kind of get yourselves Situated in terms of your closing costs So your closing costs doesn't have to come out of pocket That is something to wear a lender like myself No matter who you're going through is a beetle Like a mortgage bank like my like the entity that I work for Or if you're going through your local bank to receive a loan because most places are going to be able to provide the VA product They have an interest rate that's associated with a cost So whatever your interest rate is It could come at a buy-down cost to which you're saying to the person that Hey, you know what you're going to cover your closing costs But in addition to that if you want to receive that rate because you like that mortgage payment You're going to pay this a little bit extra So if I'm paying 1 3% because I like what's coming out as far as my monthly mortgage payment It may come at a cost of $2,500 Then I'm going to pay all my closing costs and plus the 2,500 and that's going to be my complete closing costs Now if you're coming in there, I was like, okay, I just want to get my home I don't have any extra money that I want to spend I want you to cover all of my closing costs You may receive a little higher of an interest rate But all your closing costs will be covered with lender credit So that'll be associated with that rate for today. And that's how you're able to get your home With the rate that you are satisfied with and not to have an extra expenditure when you go to signing and having to come out of pocket for clothes Allow myself to take care of it So pretty much I ain't got to pay nothing. I just need to get my credit score right you know and Just walk in find a house Say you want to say that We want to have those key elements there and I think it's one of the great things that we do And really for any loan officer if you you're out there you're looking for someone to go and do your lending You want to make sure that individual is sitting down with you like a mini financial planner Because they're going to all of your personal information They're going to receive and pull your credit score They should walk through that thing with you and tell you line by line what you got going on with your trade lines How can you get it better even if they have a good score? Is there's no problem with going through that and kind of saying hey This is what we're doing and then when you receive your finances You have that bank statement that loan officer is sitting there and they hearing what you want because they're listening And from that you're building a budget Because sometimes you can qualify. Hey, I mean qualify for a million dollars does not mean I need to spend a million dollars So no one wants to buy a house that's too much and you know, you and the family are You pretty much you're on bread and water trying to survive. So All these little things, you know are factors Okay, and I think that's very important when you're out there before you make the termination to leap leap up forth and go and buy a home you sit down you have that really good conversation and really playing yourself out Do what's best to fix your family's needs in the budget and then go for it to make a good decision Got it. Okay. Now you do a lot of good stuff down in Hawaii, right? You know, what do you do down in Hawaii? How people can follow you? What are you, you know, tell me more about, you know, I know you do some with webinars and things like that Can you explain to the people out there people want some more shun said how can they get in contact with you? How can they follow you all the good stuff? Well, a couple of ways social media is a very popular platforms out there as far as Instagram, Sean Sudden, L.O. It's a way to find me on my professional page and I have the same thing for Facebook as well Our company prides itself on education. We want to make sure that the veteran when they step the right door They come in, you know, they're got questions. They're leaving out smart in what they came in So before COVID we would have our V home loan seminar our benefit seminar twice the month so pretty much every other Thursday And from that they learn everything about the V home loan It is the history of it'll teach you how it's advantageous no matter where you go and particularly it'll break down So that's one of the things there and right now we're offering online which is I am so glad is we have that Is we have that You can reach out anywhere in the world and it's been really it's taken off. It's very responsive A lot of it whether they're in europe whether in the southeast asia or in japan And then locally we're reach out to our clients because we have fans when they leave hawaii And they pcs and go other areas and then they tell their friends about it So it's really been a blast They kind of see people reach out and see that spider web take place and folks are signing up And learning about this benefit and what they can do with it Okay So is the anything you want to leave the audience the fans people that's catching it alive the people that's going to catch a playback What do you what do you want to leave them with? I'm going to leave them with the fact that hey if you are ever interested in learning about the V home loan benefit Definitely look us up at line mortgage We have our online seminars that come up again twice the month. We actually have one tonight Um platforms like this the investor show with prince dykes This is wonderful wonderful what you put out there and what you give to the people As far as what you provide with your financial aspects Tune in keep tuning in and get all that great advice and I'll tell you what man I just want to say i'm so proud of you in terms of what you've been able to put together Uh, we got here when you were here, so It's that good work man and invite you back on the show This is like one of my first opportunities to do this and i'm absolutely enjoying Awesome, hopefully you know this leads to more opportunities people following you people uh checking you out People want to be more you know making you a regular on the show all that the good stuff, you know, i'm always down for uh Uh doing whatever I can you know to support, you know, you know the way I can because you know Like I said I always tell people I I wasn't able to build it. I didn't do this by myself I had a lot of support a lot of people looked out for me a lot of people feel sorry for me and helped me out So, you know, I always got to help out other people. So Um, but anyways, I know we got to get out here. That's our timeline and gentlemen boys and girls and children of all ages I definitely think I will tune in for another great episode and keeping us coming after you guys Don't forget to uh follow us on youtube follow us on facebook Whatever app you got itunes iHeart radio pandora you check us out you type in You know think tecawaii the investor show print stacks you're going to find us so until the next video podcast cartoon Book or whatever's crazy seem to do crazy around the globe. Peace. Be safe. I'm out. Thank you