Weekly Wisdom #211 - How to Get a FMV Loan

Hey everybody. Dean Graziosi, welcome to Dean graziosi dot com. Welcome to the Weekly Wisdom. If you're new to this site, congratulations. Love having you here. If you're new to our education, stick with it. Don't let anything get you off track, especially things like these Weekly Wisdoms that can make sure you keep this straight. Because without this straight, all the education in the world doesn't make sense. First off, I hope everybody had an amazing Thanksgiving. I guess that's just the name of it. Giving thanks. I know I try to do my best to give thanks every single day and I'm very thankful for all of you and thankful that you're here and put faith in me to help guide you on a path to a bigger future so we can make next year better than last year and every year after that better and better as we go into the holiday seasons. Getting towards the end of the year. Wow. Time does go quick, doesn't it? Okay, so here's what I want to talk about. First, I want to do some housekeeping on dean graziosi.com I know that the spam has been crazy on DG.com for the last year and I want to let you know it's not something we just ignore and go out. Doesn't matter robots because we have such a powerful site and so many people are on it, wonderful people. A lot of times out of China they have these robots that break our code and get in there. And when we put barriers up, what it does and some of you experience it, these barriers stop some of our students from getting in. So sometimes we made the decision of alright, let's just try to delete all the spam. While doing that, we make sure none of our members get blocked. So we've been working with that. Well, I think we finally have it fixed. There should be hardly any, if any at all, spam coming through. So I wanted to give you that quick little update. It's not something we ignored. We worked on it. We think it's fixed. So that's one thing. Secondly, I want to start doing more live casts and live conference calls for my DG family. You know, we do those a lot. They're free to you because you're part of the family. So be on the lookout. I'm going to do a really special webcast coming up probably in the next couple of weeks. I'll definitely do it before Christmas. I'm going to bring in a cool guest that I think you guys haven't seen in a while. A lot of you Love him, so I'll just leave it at that. Great guy. I'm working on the schedule to get him here to have a really great conversation with all of you. So be on the lookout for that. And I'm going to try to do one once a month or really close to that moving forward. So don't miss out, don't miss my emails, don't miss these videos. Okay, next, I had to write this down. We're going to start a contributor's corner. We're going to bring in a couple of our top students to start their own little sections on DG.com to let you know what they're doing daily and weekly and giving away their wisdom. We're reaching out right now to some of the top students who are already here on DG.com and see if they want to go to the next level to give away that information that can get you in the game. And then lastly, I want to ask you guys something. I'm thinking, I want to know your advice. I'm thinking of doing a show. You guys, most all of you have seen my TV shows on TV. I've been doing them for 14 years now. I don't think I've missed a day on TV for 14 years. I want to do a show, a sit down interview show like Oprah, like, you know, like that kind of Studio or Dr. Phil kind of show where I'm up on stage being interviewed. We'll bring in somebody who's a great interviewer to interview. But I want a real live studio audience filled with my students where you guys can participate, be in the game, ask questions, be on TV with me. Maybe come up and sit in the chair next to me and we talk about what you're going through, what obstacles, what successes you've had. I'd love to have you on my show. So here's what I want to know. Let me know below. And this is just something, it's a thought that I've just had over the last couple weeks. But I want to do it. Maybe the beginning of the year is how many of you would literally fly in and love to participate in one of my TV shows, to be in the audience, to just head down here to Arizona, be in the. I mean, maybe we all go to lunch after we're done filming. Would that excite you? Would you like to be that? I just think a whole bunch of DG family members in a big room, like an interview style, being part of it, answering questions, man, I just think the energy would be off the Charts amazing. But I want to see if you'd love to do that. So let me know below if you'd come down to Phoenix here and be on my next TV show. Okay, that was kind of the housekeeping. Here's a little homework I want you to do. It's free. Every single person watching should have a bank in your area that would refi your properties, okay? So if you don't have any money, you haven't bought any yet, you go, why the heck would I need a bank? I'm going to wholesale. Because if you're going to wholesale, you want to make sure the person you're wholesaling to has the connection to a bank that'll refi them. Because if you sell a property to someone and they give you 100 grand and you make your money, and if that's all they got, then it might take them a year to get that money up again, raise that money again. But what if you wholesale them a property and then you give them a bank that'll refi most, if not all, their money back, and all of a sudden, in five, six weeks, they got all their money back? What are they going to do? They're going to come back to you to want to wholesale another property. This is what I do every single day. I'm churning about 20 to 25 properties a month where I buy them, I rehab them, I rent them, and then I go to a bank, I refi them, pull most, if not all, my money back, and I go buy 20 more. Well, you don't have to do 20amonth, but you could do one a month, two a month, then four a month, then 10amonth. So this is a longer exercise. But I want to give everybody an assignment this week that has to do with real estate. And I want you to all do it because you know how much it costs to do what I'm going to share with you. Nothing. Do you know the results that this could do for you for your business? If you own a property now that you want to refi, maybe you own five and you think, oh, banks won't lend more than. Than five. Nonsense. I do 20 loans, 25 loans a month. And my students who follow what I'm about to teach with you figure out that this is what you could do over and over. So really quick, I'm going to give you the breakdown of. And it's, you know, if you've had education, if you're a part of the success academy, this information is in so many different areas, and it's more detailed. But I'm going to give you the quick one. I want you to go to yellowpages.com or the actual Yellow Pages, and I want you to find smaller banks, okay? So we want smaller banks like credit unions, credit unions, community banks, Okay? So if you go to yellowpages.com or you go on the Yellow Pages, you're not looking for the Chase and the Wells Fargo and the big banks, because those institutional banks, those monster banks, go by guidelines, and most of their loans are sold on the open market. And they have to go by FHA and other guidelines that don't allow them to do the things I want you to figure out. And here's what I want to share with you guys. We haven't found a city in America where we haven't found a bank. Some cities we have to call three banks and we find a winner. Some banks we got to call 50 or 100 banks, but we've always found a bank that'll fit this criteria. And I want you to remember this in your head. When you're dialing these banks, you're not calling them, asking them for money. You're calling to interview them to see if they're qualified to work with you. With me. Do you understand the difference? Most people think I got to call a bank, see if they'll give me money. No, you're going to call them and interview them to see if they're qualified to work with you. And you watch when you ask these questions how it'll transition in their mind, and they'll be selling you to work with them. So you're going to call credit unions and community banks, smaller banks in your area. When you call, you're going to ask for the commercial department. Okay? Because residential, they might tell you four or five loans, that's all you could do. In the commercial department, it's limitless. So if they say, well, what are you looking to do? Say, I buy. I buy multiple homes for cash and I refi them and I rent them, and then I go to the bank and want to refinance them and pull my money back out, wouldn't that be. It's a residential home, but I'm doing lots of these. I think that would be your commercial department. So if they just transfer you to commercial, great. If they want to know the reason why you want commercial, you tell them that. Okay. When you get someone on the phone, you could tell them that you buy, fix rent, rehab, and then you go to the bank you want to refinance. First question you Want to ask, do you have in house loans? Okay, you want to know if they have in house loans? Because if they have in house loans, that means they're what, not selling it on the open market. They can make the decisions they want. There's not a whole bunch of guidelines based on that. Like some of the things that we're going to ask after that or doing more than five loans and some of the other things. So if they say no, we sell all our loans on the open market, say, thank you for your time, hang up, and go on to the next bank. Okay, these have to be yes answers. Number three, seasoning. Seasoning requirements. And I would word it this way. If I buy a house for cash with my own money and I rehab it, and I come to you 30 days later and want to refinance that, can you do it? Because it's funny, sometimes you'll say, do you have seasoning? And they'll say, yes, six months. And then I'll say, okay, but if I paid cash for it, rehabbed it cash, and I come to you to refinance it, can you do that in 30 days? Oh, yeah, we could do that. So if they say yes, we can do that, then great. You go on to the next question. If they say no, everything, even if you pay cash, you got to hold it for six months or a year, that's a no. Move on to the next bank. But if you get this far and they go no, we can do that, go to the next question. Number four. Do you loan on fair market value or purchase price? What do you think the answer is? You need the bank to loan on fair market value, which is retail price. Okay? So if you're smart, using our strategies, the 25 to 1 bandit signs, you find a property that's cheaper. You want to get the benefit of that. So again, what we want to do is if you pay 50 grand for a house and you put 25 in it, and you're in it for 75 grand, but it's worth 100. When it's fair market value, price is 100, you want the bank to give you a percentage of the hundred. Because if they're loaning 80%, right? If they're loaning 80%, if you have 80, you know, if you have 75 grand into it, they're only going to give you 70, 75, 80% of what you in it if they go off a purchase price. But if they go off appraised value and the property's worth 100, you could get all your Money back. So you want a bank that will do a loan on fair market value, not purchase price. If they say purchase price only, what do you got to do? Got to move on, call the next bank. Now here's the other thing. There's lots of other pieces that we go more detailed in when you get the advanced training, of course, but I want you to at least get this going and see that this works. This is for real. Some of the things you want to know is what would the interest rate be. I want to let you know I'm paying 5% pretty much on average across the country for this kind of loan. I want to let you know you're not going to get a 30 year fixed with this kind of loan. You're going to get about a five. And I've asked and gotten plenty of seven year arms. Basically it's a fixed rate for five to seven years and then it goes variable. There's plenty of time to get a jump start on this property. Okay, you also want to ask how quick do your loans close? You want a bank that three to five weeks, they're done. Not someone who takes two months. Okay, want to go quick? Money in motion makes money. Here's another cool question. Say do you get to make the decision or someone in your branch make a decision on if this loan is approved or not or does it have to go to committee? Really great question. Especially if your credit is right on the edge. Guys, I've gotten loans for so many people where their credit's on the edge or don't have a lot of money coming in because one person in the bank gets to make the decision. It's not by committee, it's not a big bank where they go down a bullet list to see if they could do it. You get to sit with somebody who might have an entrepreneurial flare. They see that you're buying $100,000 houses for 50 grand, you're putting 20 in them. They see the cash flow, they understand the vision of what you want to create. And I've had so many bankers say, you know, I'm going to approve these loans for your friend that's got not the best credit. Or we teach students how to do it because they see the vision with an entrepreneurial flair. Okay, that was a lot today, long video blog. But I wanted to give you that and I want you all to do this exercise. If you have our education, if you're a part of advanced education, then dig into where it is. Whether it's at this site, whether it's on the ie, whether it's in your success academy or call them a coach. If not, this is enough for you to start making calls this week and see for yourself that there's going to be a small bank in your area that says yes, yes, yes, yes and yes to those things. Say, when you get your first deal, send it on over. That's the blog for the week. I'll talk to you soon.