62: Time for a Refi? Low Rates & Real Estate Investor Confidence

Welcome to win the Women Investing Network, the podcast where you can learn from successful entrepreneurs, business leaders and real estate investors who are winning in business and life. Learning from others is the fastest way to grow your skills, gain knowledge and avoid pitfalls so you can win. Join our hosts, Elizabeth Embry and Jason Hartman. Elizabeth is a seasoned real estate investor, experienced corporate executive and skilled mentor. Jason is a self made multi millionaire investor, entrepreneur and highly acclaimed thought leader. Together with their successful guests, you'll get the tools you'll need to win.

Hey, it's always great to have our investment counselors on the show and our visitor today is Carrie. You've heard her before and she wants to give you you a little update on our last property tour, the mini property tour she did in Memphis and our upcoming property tour in the greater, I'm not going to say specifically, but the greater Orlando area. Carrie, welcome back.

Hey, thanks Jason. Thanks for having me, especially on your birthday.

Yes, well, hey, I'm working. Thank you very much. Happy birthday to me. We all got to have one every year and well, some people regret them. I'm just happy I'm still kicking and happy to celebrate another one. Hopefully there will be many, many more. And you also wanted to highlight a couple of your clients that are doing some great things. So where would you like to start?

Yeah, so I just want to say a big congratulations to Cynthia. Cynthia actually joined us on the mini Memphis property tour and she is closing around two or three properties this month from that tour. So. So congratulations to Cynthia Taveri. Branching out and usually her husband takes control of the investments but now Cynthia's taking the reins. So that's very good progress for her. So Nikhil's a new investor and Nikhil put two properties under contract in Atlanta, the new construction. So very excited about those up and coming. We also have a few other investors. Charles. Charles is doing well. Charles has properties in Memphis, Jackson, you know, he's really striving and several other investors of course that are on the rise and closing this month putting contracts under. So good job out there.

Yeah, yeah. Congratulations. And you know, I always want to say if we did not mention your name, apologies, we never get them all. It's not that we don't appreciate and love you and appreciate your business. We do. But we can't do a whole show with just a, you know, a bunch of people's names. Okay. So. So I hope you understand but we'll try and get you next time. But congratulations on your investing everybody. That's awes for the Memphis Property tour, the kind of mini tour you did, I think that was great. It sounds like everybody had a great time. I was, I jumped on the phone and, and talked to you all as you were just starting the tour Saturday morning. But you also went to Little Rock in Jackson, right? It kind of combined three markets in one sort of mini property tour, right?

Yeah, that's right. So when I planned this Memphis property tour, several of these investors that attended the tour said, hey, I have properties in Little Rock, I have properties in Jackson. You know, they're just a short, two, three hour drive away. Do you mind going to visit those markets as well? So we landed on Friday in Memphis and two other investors and myself drove to Little Rock around a two hour drive and was able to tour the city and meet with the local market specialist and the property manager to kind of get the feel of who's behind all these properties.

Good. And you had quite a few people purchase properties on that mini tour, right?

Yep. Overall, I believe everyone, six out of the seven investors purchased a property and then some of them purchased two or three properties as well. And so it was a really well fun weekend with education, networking and seeing a variety of different properties in both Little Rock, Memphis and Jackson.

Good stuff. And I'm excited that we added a property tour the day before Profits in Paradise. So that will start Friday 25th October at 11am or really we should say 1030. We'd like to get going by 1030, but just in case for the people that are not too far from Orlando, if you're flying in that morning, we wanted to make that tour available to you. Then you will be chauffeured to Ocala to look at some properties there. And we've been doing great in that market. And that's the same provider who has the exciting brand new construction properties in the Atlanta metro area. And so you can talk to his team about that on that tour. And then of course Saturday morning we start our annual Profits in Paradise conference for the next two days. So hope you'll join us. For all of that go to Jason hartmanlive.com Jason hartmanlive.com I'm really looking forward to that event. Kerry, Share any things like just sort of the pulse of the market. What are saying to you? What are they asking? Maybe some frequently asked questions. Anything that we can sort of questions, knowledge, advice, pulse on the market, you know, that we can share with our listeners today.

You know, one question in particular that's been coming up a lot in the last few weeks is when to refinance their properties. And should they refinance, should they 1031, exchange their properties, what's the next step?

I am so glad you brought that up, but continue. Yeah, yeah.

Well, they're just wondering, you know, what's the next STEP? They have 20,000 in equity on this property. Should they refinance it or should they just exchange it for another property? So what are your thoughts on those options?

Yeah. I'm gonna let all of you in on a little secret. This is actually kind of a big secret. You're gonna like this. You ready, folks? This. This may or may not work, but I can report to you with a hundred percent surety that. That it is working for some people. Here's the thing. The refi till you die plan is great. And we've outlined that, you know, many times over the past 15 years here on the podcast and at our live conferences as well. You know, when we do it with visual aids. So that's the refi TDI plan, and it's great. But then at the last meet, the masters conference we had in Newport Beach a few months back, we talked about the big boring idea. And the big boring idea was roa return on amortization. And you have to really choose between these two. But today, I've got a super big treat for all of you. You may not have to make that choice. You may get to, hey, it's my birthday, so I'm going to use this. You may get to have your cake and eat it, too. And hey, I got to do a shout out to my girlfriend. It was really thoughtful what she did. She. She's in Spain. But someone knocks on my door this morning. It's the delivery man from Whole Foods. Now, we all know Whole Foods is owned by Amazon, the evil Amazon. He delivers to me a couple of bags and he says, I have to see your driver's license. And that means he's delivering alcohol, right? So she sent me a bottle of wine and a mini birthday cake. I thought, but isn't that cool that we can that kind of stuff from anywhere in the world now, you know, I mean, it's just really neat. So, hey, thanks, Carmen. Appreciate it. Appreciate the birthday wishes. It was very unexpected. You know, almost no one ever knocks on my door. So when someone knocks on the door, I get kind of suspicious. Who is it? And of course, the dog is barking like crazy. So anyway, that was just kind of funny. But, yes, you can have your cake and eat it, too. Here's how. Okay. And people are doing this. I Know, we are not in the era of the Great Recession. We're not in the era of short sales, foreclosures, people relinquishing their property, cash for keys, deed in lieu of foreclosure or loan modification. But wait, we kind of are. Some lenders out there are actually modifying loans without a refinance. So here's the thing. When you refinance, when you do the refi till you die, many times you have a couple of huge benefits. Number one, you might get cash out, right? A cash out refi. And that's awesome, totally awesome. Because then you're equity stripping and you're protecting your assets and you can use that money to buy more properties and expand your portfolio and create a whole kingdom for yourself. And also you get the advantage of a lower interest rate, you know, potentially. And hopefully you get a lower interest rate. So those are the two great things. But the thing you lose is remember, you redo your loan and extend your loan term for 30 years. Typically it's 30 year loan. So if you're already five or 10 years in on that loan, you're now starting to chunk down the principal balance with ROA or return on amortization. And that's the big boring idea we discussed at the last Meet the Masters conference in Newport Beach. So it's this trade off. But you might be able to get the best of both worlds by simply approaching your lender and saying you need a lower interest rate. You're thinking of refinancing or selling the property and that means they're going to lose the loan. Now this works more when the lender is keeping the loan in their portfolio. When they're a portfolio lender, many, many times they've sold the loan off, but not as much as they used to. More and more lenders, you know, pre Great Recession, when all of that trading was going on, that is to some extent the subject of the book and the movie the Big Short, which hopefully everybody saw the movie Michael Lewis book or read the Big Short because it's very enlightening. So that's a great thing that you brought that up, Kerry, because you know, you could just approach your lender and say, hey, I need a lower interest rate. And essentially they'll just modify the loan and give you a lower interest rate without the refinance fees, without losing the amortization, you just get a lower rate. So pretty good. Doesn't hurt to ask. You may not get it, but you also might. And people are getting it. You know, many, many people are getting that just for asking. So to he or she that knocketh, the door shall be opened. Right. It never hurts to ask.

Yeah, no, that's interesting because several of the investors, you know, they're asking, well, what are the new terms? How much is it going to cost me to do this refinance? So that's interesting you brought that up.

Yeah, yeah, well, you brought it up. So I'm glad you did because it's something, something our listeners can definitely take advantage of. And there is your gift for the day. Have your cake and eat it too. Any other, Any other things, Insights, what's the pulse of the market? Like? The inventory is a little bit better, isn't it? I mean, than it was, say, a.

Year or two ago, you know, it's getting a lot better. Yes. We have several new properties in the Memphis, Indianapolis, York, Pennsylvania markets. We're bringing on several new, new construction properties in different new markets as well. So be on the lookout for that coming up in the next week or two.

Okay, Fantastic. Yeah. And we've been really working hard to go and get new inventory, brand new construction inventory, because you've wanted it. We actually have set up like a new division of the company that has been really, really trying to bring in new inventory, new home inventory, not just new to our network, but brand new construction for you. We've been talking about that a bit. So talk to your investment Counselor. Go to jasonhartman.com and remember something. A lot of this inventory you will not see on our website, or at least you will not see it very quickly. You gotta be working with an investment counselor. So just reach out. Any one of the web forms on our website will do the job for you. Reach out, get connected with an investment counselor if you don't have one already, and they will really help you get the best properties lickety split when they become available.

Yep. Like Jason was saying, you know, a lot of these properties go so fast. So if you build a relationship with that local market specialist, you know, you're bugging them daily or you're bugging that investment counselor. Hey, I'm looking for this type of property, you know, you know, that's going to be fresh in the LMS's mind of sending it to you and getting you on board. So definitely reach out to your investment counselor.

Good stuff. Good stuff. All right, Carrie, anything else you want to share as we wrap it up?

No, just enjoy your birthday and your cake.

Jason, have your cake and eat it too. You learned how today you can get a lower rate potentially without even having to refinance. All right, Carrie, thanks again.

Thanks, Jason.

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