Ep. 017 – W – Physician Mortgages, what they are, and why you should use them when purchasing your h

The physicians Road create your life in medicine on your own terms Today we are on the path to wealth The physicians Road is brought to you by Vernon ville asset management Vernon ville asset management was created to help physicians build wealth and create income beyond Wall Street through our Exclusive private investments doctors can begin to free themselves from the burdensome regulations in healthcare by creating income streams Independent of medicine go to income beyond Wall Street com to get your free report Wall Street’s biggest lie again Go to income beyond Wall Street com to get Wall Street’s biggest lie and free yourself today Hello everyone, welcome to the physicians Road today We’re on the path to wealth and I’m happy to have Josh Mettle here from the physician group at fairway Independent mortgage and he is director of physician lending now. I’ve known Josh for many years now he was Kind enough to have me on his podcast Many years ago and it was think we had a great time on that. I think we got a lot of good information out I got a lot of good feedback from Josh’s listeners, and I wanted to be able to return the favor today and have Josh on because we have a lot of physicians out there who are going to be buying their homes or have bought homes in the past and Don’t realize that there is such a thing called the physicians mortgage which can be a great benefit in your financial Arsenal in terms of being able to I Would like to say stretch your dollars or have your dollars working more effectively for you. So From that standpoint. I’m gonna introduce Josh and let him take it away and kind of introduce himself and tell us about his company Eric thanks so much, man. It’s a glad to be here And I have been a follower of your website and your writings on your blog and appreciate The wisdom that you have shared in your email updates over the years so glad to be here with union listeners today. Thank you. I a little bit about our company You know, I think we started in a unique fashion where I started working with just a few from the University of Utah and quickly found that they were running into stumbling blocks in qualifying due to the normal restrictions of student loans closing on future employment income Not wanting to put 20% down on jumbo loans because they could allocate those funds to paying down debts Or they they were behind in their preparation for retirement and so we started creating some vehicles to the mortgage vehicles to help them get over those hurdles a Few years into the process. I was called by a young man who was literally driving across the country in a u-haul van full of their possessions with his wife two kids and a dog and Literally on the way to the University of Utah to start his residency. He got a call from his loan officer that was from one of the one of the big banks that were the purveyors of physician mode and the loan officer on the other end of the phone said, you know, we’re really sorry but our Underwriter has declined your mortgage loan. And you know, the young physician did everything he could not to crash the u-haul van Because literally the next day he was to sign the closing documents They were going to move in over the weekend and then orientation for the residence He started the next Monday or Tuesday and now he was homeless for the life two kids and had that how do you fix that in 48 hours and starting a grueling residency schedule and That story unfortunately was not the only one that we heard like that and what we figured out was there was a Problem with the way that big banks were underwriting mortgage loans, especially physician mortgage loans and What we what we figured out how everybody you know, you don’t you don’t really know how everybody else is doing things You just know how you’re doing things But what we realized through hearing these horror stories was a physician would call a lender and say hey I need a loan then they would say great. How’s your credit good how much money you’re gonna make 20,000 a month? here’s your pre-approval letter, you know, and they would go out and try and find a house and Unfortunately when the employment contract came in and it made its way to an underwriter and the application man, they said whoa What about these two hundred fifty thousand dollars in student loans that show the zero payment but we certainly have to equate for those somehow in our analysis and Or we have to factor that into our analysis and whoa wait Whoa, this employment contract says you’re an independent contractor. You’re now self-employed. You don’t have twenty thousand dollars a month in income You have a zero and the problem was most of these big banks of their purveyors of physician loans weren’t getting into this level of detailed analysis until somebody had fallen in love with a home and Had, you know showed their kids. This is where your new bedroom is going to be and As I Illustrated in that case with the young resident, we located across the country. I can be a pretty traumatic experience. So What we did is we re-engineered the process of qualifying for these loans we’ve compiled about six or seven different loans that lend themselves to physicians and their common challenges and we have we created the conveyor bail if you will or the process of underwriting a loan where we actually have our underwriting team do an analysis on the borrower’s Employment contract student loans assets all those factors that are going to qualify we have them do that before they find and fall in love with a home so that when you’re Driving across the country with your family the phone call is hey I just want to let you know your closing doctor at the title company, and we look forward to you know Make sure you have your keys tomorrow versus your loans decline So, I don’t know if I answered your question But that’s a little bit of the background on our company and why I believe we’re very different than those banks Perfect. And so that’s exactly what we wanted because that’s a that’s a good point of differentiation And so I think you touched on it But can we go a little bit deeper in terms of what a typical Bank when they’re underwriting physicians. Let’s just say and we can go at different levels, but let’s just say resident fellow new attending How is it that banks usually look at those types of individuals Yeah, it’s a great question and it really comes down to a Decision based on cost for most banks. So if I’m going to if I’m going to Involve an underwriter who is not a chief employee Before a client has found a home you know only a fraction of those of those clients will actually find a home and then they’ll write an offer and it’ll be accepted and and then they will decide to use us as the lender so maybe 75% of the clients that most banks talk to don’t actually end up closing a Transaction with them and so from a cost perspective. They’ve just decided look we’re going to do fast easy cheap Low-cost pre-approvals then once you find a home and commit to do alone with us Then we’re going to bring in the underwriter to analyze the loan and make sure we can actually do a loan for you But the problem is from the consumers perspective by time that underwriter. Who’s the gatekeeper The transaction looks at the file You’ve already made a commitment But that’s where you’re going and you’ve made plans and movers and you know showing your kids this is going to be the bedroom so we just change that process and what we do now is we’ll gather all of The employment contract that there’s a relocation of all for a new job income assets Credit all of the pieces that need to be underwritten we have our underwriters pre underwrite that data before we issue a pre-approval letter and then when we issue a pre-approval letter We actually call it a credit and income approval because it’s been reviewed and credit and income approved by an underwriter Got it. So to make sure I’m clear in my own minds with the process of how it normally goes is These banks might salivate with the fact that you have an MD behind your name Look at potentially what you’re gonna make give you an early pre-approval But it’s really not what we call kind of a scrubbed process where they’re really doing the deep due diligence dive on your assets in your liabilities until You’ve agreed to go down that particular pathway with them and basically what you’re saying is you flip that process and said You know what? We’re going to the deep dive on the front end to give you a true and accurate depiction of what You can actually afford to buy and what? what you with your company would be actually willing to extend in terms of Loan That’s exactly right and and and in in this market in 2018 that process is more important than it was when we came up with the process I wrote a book called why physician home loans fail how to avoid the landmines for a flawless home purchase I wrote that book in 2014 I think it came out in 2015 and at that point we were only in 13 states So I wrote that book because I realized there was physicians in 37 other states that we couldn’t advertise To or get to but I wanted to get this information out So people were properly armed with the information to have a flawless on purchase You can you can go to the website Ww-why position home loans fail comm and get information about the book there but in today’s world in 2018 that Process that you just described is so much more Important because there is incredible competition for real estate today You well know this that the owner on a residential home in a good neighborhood in a fairly priced home that the decent shape in Many areas of the country may have 3 4 5 10 different offers coming in on the house at the same time And so that’s what we really didn’t we didn’t really know about our process was well, geez If we do all the heavy lifting up front Then once you find that house we can actually get you from contract to close in many instances in 10 to 17 days so if there’s five offers and all the rest of those offers are with Financing to close within let’s say 25 and 45 days I think the national average is 41 days with a finance deal right now Now, let’s just call it You know 25 to 45 days and our offer says what goes in two weeks what that means to the seller is Hey, if you take our offer number one, we’ve done all the heavy lifting So the underwriters already approved the borrower, right? We just have to underwrite the collateral meaning the property And so, you know, it’s a real offer and number two If you take our offer you have to make an excellent mortgage payment Because we’re going to close and pay off your loan before you make your next mortgage payment so why wouldn’t you take our offer over the other five and so as an unintended consequence of good unintended consequence We find that our clients have a much higher Level of offer acceptance in multiple offer situations because of we because of the fact that we’ve done the heavy lifting Before the offer was written. So I guess the business we call that a unique selling proposition So how so how does someone convey that to their realtor that they’re using if they happen to be using you guys? Right? And so How would somebody go about how does he go about? Conveying that you know, you can because I’m sure you don’t want to guarantee that you can close in two weeks But how is it that that is communicated to the realtor in such a way that they can make that kind of strong offer That could potentially raise someone’s Contract to the top of the pile That’s a great question. We wrestled with that a last question for about two years and You know first we started with the with the buyer’s realtor just saying look, you know We’ve done all the heavy lifting just write a 2d clothes Then we thought well, maybe we could call the listing agent as a lender So we’ll actually call the listing agent and say hey Eric. I just want to let you know I’m calling on your listing at 1 2 3 Easy Street. Dr Johnson is going to be making an offer and let me tell you the due diligence We’ve already done on the files then for underwriting great credit scores. We’ve already done all that You know, we we tell them this this is a done deal if you’re willing to accept the offer from our buyer Just in the last 12 months We said well what if we could do even better than that on top of those two things what if we can stack the deck? Really stack that unique selling proposition and value and so for our clients that have gone through a full credit and income Process before they write an offer we issue with our pre-approval letter a second document That is a 17-day guaranteed close the certificate, you know has our logo and says you know terms and that those are calendar days not businesses and It says that if you accept this offer and we don’t get give the clear to close and ten closing documents to the title company within 17 days We will pay you As the seller we will pay you two hundred and fifty dollars a day if we don’t hit this 17 day timeline And we’ve been beta testing that in, you know, kind of growing Frequency for the last year. We’ve never missed a closing and Our clients tell us that it has been a massive differentiator in their offers their ability to have an offer accepted versus three or four others that come in Wow now that that’s Those kinds of kind of what we call outrageous guarantees Dan, definitely tend to put businesses above and beyond their competition. So let’s take a quick step back Okay, because we take a deep dive kind of into your all’s process with your company But let’s take a step back for the newbie. What is a physician loan? Why is a physician loan different than a conventional loan? They would get somewhere else? Yeah, great question. So the biggest differentiators about a physician loan is Let’s take it from out kind of a macro Viewpoint down basically The lenders because there’s more than one bank It does leave one, but the lenders are saying listen, we know that the probability of continued income and therefore payments on physician loans You know, they’re also available to dentists We have them available to veterinarians even even some CRNAs now but but the probability of continued income and therefore payments is Higher with these medical professionals than just about any other Subgroup in the country, so since we categorize these as lower risk we’re willing to Make a separate set of guidelines that would not be the same guidelines like a conventional or a jumbo loan would have and the main Variations in those guidelines the more liberal underwriting guidelines as I call them would affect a couple of key points The first one is that they will go to higher loan to values and require lesser down payments so for example, our company will do a 95% loan the value up to a million dollar loan amount so you can buy a Million 50 house and put 50 thousand dollars down and do a million dollar loan amount there’s no mortgage insurance on that loan and Maybe I’m getting ahead of myself That would really be the second point But but you can go to higher load values with less down If you’re in the lower price ranges down around the four hundred and fifty to five hundred thousand dollar price range You can do as little as 3% down and all of those loan types are not going to have Mortgage insurance as well and I’ll touch on that but let me tell you one of the some of the reasons why positions should Think about putting less money down on a mortgage even if you have the ability to put more money down number one Most physicians that I meet. I think you’re the exception Eric, but most physicians that I meet are Late to the game when it comes to contributing towards retirement Because they’re just trying to keep their heads above water to get through, you know grad school med school Residency fellowship and they find themselves out the other end as an attending now making good income But it’s hard to make up for that 10 years of lost in retirement contributions So we got some financial catching up to do most physicians graduate with a high level of student loan and I see an increment my gosh not to mention just student loans now, I’m seeing consumer loans from SunTrust and all these online Unsecured loan companies that have think there’s more and more debt coming out of residency fellowship and med school so It gives you a chance to even if you have more money for down payment to pay some of that higher interest rate that off and as you know You had create a potential tax deduction You can write off the interest on your mortgage up to seven hundred and fifty thousand under the new tax laws So gives you an ability to put less money down Have more money earmarked for retirement or more money to pay down liabilities. So that would be number one number two you’ve got no mortgage insurance mortgage insurer as a premium that a Borrower would pay each month to protect the bank in case the loan goes into foreclosure so we call it a bad kind of insurance because it doesn’t protect the person who’s paying for it a protects the bank and It’s not tax deductible in those instances. So it’s very costly. It doesn’t protect you and it’s not tax deductible So you’re going to get around mortgage insurance in? Pretty much any for every physician loan that I know and then in terms of the underwriting guidelines, they’re they’re more accommodating or liberal so they’re going to allow you to close on the purchase of a home without a paycheck stub in hand a Conventional loan requires to pay check steps you have 30 days for the paycheck does bring clothes So it allows you to close on a future employment contract usually you can close somewhere between 90 and 50 days before your first day on the job and It will have more liberal lenders or underwriting guidelines in regards to how it looks at your student loans And for the debt calculation and it’s just easier to qualify for all around perfect. That’s exactly what we want And then just a clarification point can you explain at a first grade level? What loan-to-value means? Yes. Thank you So if your loan to value is the proportion of a loan To the value of the home. And so what that would look like is if you bought a million dollar home and You wanted a nine hundred and fifty thousand dollar loan. You would be at a 95 percent loan Which is the the nine hundred fifty thousand two value, which is the million and for a typical loan What is that normally the place of the typical loans of people that people get out in the world? What is a typical loan to value that they may have to stay within? Yeah, typically you can do a 95 percent loan to value up to a four hundred and fifty three thousand dollar loan amount don’t Change conventional loan limits change each year, but that’s where it is today But if you put down less than 20% You have this force insurance called mortgage insurance and that’s going to add on average about 1% to the cost of the loan So if you have a four and a half percent interest rate with one percent mortgage insurance your room Paying like five and a half percent for the first 11 years of that loan Which is about how long it takes for it to amortize Down far enough the loan to amortize or pay down until the mortgage insurance drops off if you want to go into a jumbo loan Eric anything over that four hundred and fifty three thousand then usually it’s a 20% down payment so somebody wanted to buy an eight hundred thousand dollar house they need a hundred and sixty thousand dollar loan with it with a conventional jumbo loan as Compared to a physician loan on an eight hundred thousand dollar house. We put 40 grand down Gotcha. Perfect. And that’s that’s what’s gonna go next was to ask to define a jumbo loan And then how does the physician loan space work with jumbo loans, but you just answered that – that’s perfect. So let’s talk about some special situations, so well actually Let’s start with the process of getting a mortgage. So let’s just say someone as a newbie What what advice would do you like to give clients on the front end in terms of what they need to have gathered for? You but just to say any mortgage process, what is it that they need to be aware of and have document was? I’ll tell you what I’m going to do I’m going to I’m going to answer your question, but I’m also going to make a free copy of my ebook So not a printed copy, but the e-book copy Available to your to your members and I will I will send you that email after the interview you can put it in the show notes, so if someone wants to get really, you know Detailed in this thing. I’ve written a whole book on it You can check check to the chapter summaries and go right to the information that you want. But what I recommend that they do is Regardless of what lender they’re working with is that they insist on a couple things number one You don’t want to have one of those. Hey, how you doing? Yo, yeah, no problem, Eric. We’re good to go What’s that cute letter right on up don’t have that conversation it is it with a lender if it feels easy But it is, you know, like like the sugar high that wears off and you don’t feel so good So you want to get you want to do a full? Application with the person that you’re going to do your loan with you want them to look at your credit Everybody’s worried about them to get your credit look credit is scored from 350 to 850 points it is a massive A mortgage inquiry is going to being your credit three to five points. It is a drop in the bucket Don’t worry about it You may not want to go out and have 20 of them fold and you may not want to have it in combination with opening a bunch more student loans and credit card But you have to have your credit pulled and have somebody actually tell you you’re good so that you don’t get surprised at oh man I didn’t think that medical collection or that AT&T bill was going to come back and haunt me and now I don’t all apply for a mortgage You’ve got to go through that process Have them look at your credit have the lender look at your credit get them your income documentation this is never more important than if a you are starting a new job and you have an employment contract versus paycheck stubs or B you are self-employed or 1099 as an independent contractor, those are huge landmines Massive landmines that people get burned at the last minute so you want to get that documentation to the lender as early as humanly possible and then you want to talk about your Liquidity how much cash do you have? how much reserves will you have post closing because every bank has a Requirement about that and then once you’ve given that information to the loan officer in the loan officer said hey, that looks good You should insist that an underwriter looks at that data. Hey Eric. I appreciate you looking at my documentation. Thanks so much I’m glad that I’m pre-approved. Do me a favor can you have your underwriter review my employment contract and liquid reserves and just make absolutely certain that there’s no Landmines hidden in there and and and if you insist on it, usually a lender can get that done for you perfect now Can you define what liquid reserves are and what can be used as liquid reserves? yes, so if you put 5% down on a on a $500,000 house. Okay, we call $25,000 and Then let’s say that you’ve got $5,000 in closing costs. So your cash to close is going to be $30,000 in addition to that Most programs will require that you have between three and six months liquid liquid funds as Reserves and and three to six months worth of payment. So your payment on that $500,000 house is well. Let’s just say $3,000 a month So they’re going to want to see that after you bring in the $30,000, which is your 5% down plus your closing costs you’re going to have somewhere between 9,000 and 18,000 dollars left over in liquid reserves. So post-closing you have a little bit of liquidity Why well, if you’re closing on an employment contract you how going to get that income for a couple months? and and oftentimes underwriters know that when you buy a house your spouse I know my wife is guilty of this They decide that all of your furniture sucks and you’re going to be a brand-new furniture for the house and moving expenses I mean, they’re just they’re just are there’s moving expenses And so they want to see that there’s some liquidity there so you don’t run into a cash crunch. I Think you had one more question and I think I want where the heat is. I didn’t hit it. What can be used as reserve Yeah, that was it. Thank you so every bank is a little different on this, but typically you can use a Retirement account up to 70% of the value. So you got $10,000 or a farm account You can count 7,000 back towards the reserve requirement. Of course, the CD can be used fully any cash Some under some programs will allow you to even receive a gift from a family member to satisfy that reserve require Any brokerage account you can use the full 100% value retirement accounts are discounted by about one-third Gotcha, perfect so now let’s move into I think we’ve done a great job of giving an overview of what physician loans are and What the process is of closing through them? Let’s now talk about some special situations when it comes to buying Property, so let’s talk about condominiums and kind of how they’re viewed in the lending world I know a lot of physicians if they’re in medical school or residency Like I bought a condominium when I was second year medical student. And so I know it’s there are some special Situations when it comes to condominiums, how do that makes an underwriters? Look at condominiums? When the financial crisis and mortgage meltdown happened There was virtually no segment on the mortgage market that was hit harder than calm minions So so the first thing you should know is this isn’t about you. It’s nothing personal there were entire building in Las Vegas and Seattle and San Diego and Miami and yeah, Florida, Florida, Florida, Florida, Florida, Florida That you know literally lenders lost hundreds if not billions on a single building So they came up with these Pretty restrictive guidelines that said are essentially what they say to you is so Eric I have to underwrite you as a borrower and even if you are flawless I Also have to under eyes the HOA I want to see that they are putting so allocating some money each month towards reserves The guideline is 10% of the HOA cut budget you could be allocated for Future reserves because they know if you’re not you’re right if you’re not putting 10% away for capital improvements You’re going to have a capital call, right? The HOA is going to have to do a special assessment at some point So they want to see that the HOA plan planning ahead. They want to see that there’s certain number of HOA members are not greater than 50 days delinquent in their HOA fees they want to see that one investor doesn’t own greater than 10% of the HOA complex of the unit because if the one investor goes down and they own 20% You pretty much paint the values for the entire project And so there are some there’s a condo Questionnaire which is sent to the homeowners association That needs to be filled out and then depending on the loan type they will ask for budget They’ll ask for CCN RS. They may ask for the minute from the last two HOA meetings they’ll ask if there’s any pending lawsuits, I mean if it’s a financial Oscar be On the HOA to get that approved. So what’s the takeaway? No plan for a little longer closed on a condominium because there’s more due diligence and Know in the back of your mind There is a potential that there’s going to be a problem to buy this condo that has nothing to do with you So you better have a back-up plan for your family in other words if you’re selling your house and you’re out and you know You’re gonna have the u-haul packed up and you’re driving across the country And if that condo loan doesn’t close on on time your your s well You need to have a back-up plan. Like if that happened. I have an extended today. It’s all good Just just plan ahead for your family. Got it. And you said CC&R? What does that stand for? Well, thank you. So good confidence codes and restrictions so every condominium a Planned Unit development Let’s the other one that I’m a co-ops they’re all going to have these Mutually binding agreements that that that governs how the association of the condo association Is going to is going to operate so can you have dogs? Can you have a barbecue on the deck? Can you Turn your condo get get rid of can you rent your unit? Yep, that’s right. You gotta perfect and So condos just put in the back of your mind that you may have to that They’re not just gonna underwrite you they’re gonna under at the building as well and the Association as well. So it’s multiple step process and you need to you need to have a back-up plan potentially in place a Second kind of situation that comes up a lot is the whole rent versus buy while in medical school or residency or fellowship So you’re not an attending you may be in a space for a certain amount of years now granted I know there are a lot of variables but what as a loan officer who’s done? Probably thousands of loans and I’ve seen situations Where do you come down on or how do you think about that thought process? I should say? Yeah, I was just having this conversation yesterday and I think the answer is it depends? If it’s always right If the decision is being made in San Francisco Then I would probably give the advice that it’s going to be so here’s the factors How affordable is the area? You’re going to buy it is the payment that you’re going to pay for a mortgage affordable and reasonable and can are you not stretched so thin that if God forbid something happens to a family member or you’re out of work for them while or Something that you didn’t anticipate happen. No problem. I’ve got a slush fund. I’m living below on my meetings We’re good I can still take a vacation or I can still have some meals out if it’s comfortable and affordable Then I think that one very strong indicator that you might want to look into buying if it’s not on the buy side Just rule it out Just don’t stretch yourself to the point that everything has to go right in order for you to make your mortgage payment on time That’s a bad situation to get into so when you talk about that decision in San Francisco It’s probably a better idea to just rent if you got some extra money invest elsewhere Okay. Now the next consideration, how is the market doing is? the economy that you’re buying in Vibrant and expanding with a low unemployment rate or is it you know? Like we could use the illustration of Detroit a few years ago as the cars cause the car industry kind of left There was the commerce he’s kind of dried up so just be aware of what’s going on or the business is moving in or moving out of where I’m want to buy in and I Think the last consideration has to be you know How long are you going to be there if you’re going to be there for? 24 months Everything has to go right for that to work out for you or you have to plan ahead That unrolling this into an investment property, but I don’t what I think could be a great great strategy But if you don’t want to put yourself in the position that I may have such a short window that it has to go up in value or I’m in big trouble if you have a 4 5 6 7 8 9 10 year period where you could pull the property then even a few times a market wrong Time forgives all in real estate and I’m so gracious for that cuz I’ve made a lot of things That’s what I always tell people like if you if you could hold on to the mortgage Just wait it will come you will be behind eventually from that standpoint And so I know an RN when we’re talking to to investors and other people that were just advising about kind of this buying during a window of time where you may not be there an extended period of time is to go into Looking at the real estate as almost an investment not as a retail from that standpoint Meaning you have to understand what the market is doing. You have to understand the market fundamentals You don’t become an expert, but you know pretty well you can you can pull up The Bureau of Labor Statistics and see your people moving in and moving out of jobs being created You can google kind of you holes in and out kind of migration and/or migration out These are all easy things that you that you can do And if you get a good agent in that particular market, they can show you the history of the market in terms of pricing in that way and then I would say put in the back of your mind if you had to rent this property is It at a price point we’re renting will at least allow it the very least to break-even which you know I’m not necessarily a fan of but you know It may you know it some people will do it at the very least break even if you had to rent it And so that’s kind of how we look at it from that from kind of the the investor standpoint that side It’s pretty much echoes kind of what you’re saying from. That’s Tim from your standpoint as well and so Let’s just kind of open it up now I think we’ve gotten through most of what I wanted to do for kind of a basic understanding of these situations So what didn’t I ask you? What is it that you want to convey to an audience? It was to say is new to the position mortgage world What is it that you but they that they need to know from your experience Yeah If I was out there looking for a position lender what I would want to see is that the person that I’m talking to on the other side has had a vast experience with dealing with positions and can Sense the problem before it becomes a problem because they’ve been down this path with hundreds or thousands of positions in the past So I would encourage folks to not be intimidated to To ask questions deeper than what is your rate The question that should also be asked is let me ask you a little bit about your clientele could you provide me with five to ten positions that you’ve done loans with in the last in the last 90 days and would you mind if I reached out to one of those or or or could you see you know, if We can speak to them or do you have testimonials or if I google your bank and client mortgage reviews? What do they look like? What do people on Google and Angie’s List and other sources What are they saying about that mortgage professional and their company do they close late is closing a nightmare Are they stuck in a u-haul van because the loan wasn’t closed on time? You really want to thank through those things because you know an eighth or even a quarter percent difference in rate. Yes It’s seventeen twenty five fifty sixty bucks a month that that is no it’s not inconsequential But trust me being homeless with children as you’re supposed to start a job is worth twenty bucks a month So you want to you want to think through not only what kind of products do they have? But what kind of reputation and history do they have serving positions? I think that is drastically overlooking something that should really be pondering and just the parallel on that I Think there should be a similar due diligence done in the picking of your realtor so a mistake that I’m seeing people make a lot and this is especially costly in today’s market because the competition for housing is near all-time highs But they will go onto Zillow which I need to say something about that before we get off but they’ll go onto Zillow and they will see someone who’s positioned as the neighborhood expert and click them and assume that this person has some kind of expertise the reality is that Zillow and realtor.com and Trulia are Media companies and their revenue model is to capture your information to sell it to as many Realtors and loan officers as possible And then for the realtor that says hey, I’ll pay you X number of dollars a month and we’re talking thousands of dollars a month Zillow will make them into the area expert that has zero to do with their ability to give you good advice Or to advise you and especially when you’re relocating across the country You you want someone who knows the areas around the hospital systems knows the Drivetime knows the schools knows physicians in the area and had served positions before so spend a little more time in due diligence than going deeper than They look good on Zillow and there seems to be the lowest because that is a recipe for being homeless on the day You’re supposed to close in your house. Got it. Do you have any tips about choosing an agent? Yeah, and what we had figured out because we struggled with this trying to match up good good Realtors we partnered with a Local realtor that is a broker for Berkshire Hathaway HomeServices and he has literally gone out across the country and has found a bunch of realtors in major metropolitan areas all across the country that have family I mean you know their spouse is a physician their father’s a physician their brother’s a physician and they know that these markets at the local physicians women and they deal with Relocating in and out physicians all the time. And so He’s gone out and he’s put together a pool of these Realtors across the country anybody can reach out to me at anytime and I can make an Introduction to somebody that that we’ve done business with before that is served position pretty much anywhere in the country. Okay, perfect That is absolutely helpful any closing thoughts on informational standpoint because after that I’m going to let you kind of Do a do a nice commercial for your company and how people can can reach you any more informational closing thoughts before we move there I’m a little intimidated about the commercial to see how I do I just leave you with one maybe closing piece of advice Finding a house in 2018 and getting your offer accepted is difficult if you don’t have the right tools to actually Look at the market and educate yourself see how fast homes is selling see and Get yourself acclimated to the price point and what you’re going to buy. It makes it exhausting to find a house. I Recently discovered that Zillow Trulia realtor.com as I mentioned. These companies are not real estate companies they’re media companies and why that distinction is so important is because Media companies don’t have a live feed into the MLS. It’s called an API fee, which is a live Insertion into the multiple listing services that gives them live What they buy is a copy of some of the MLS’s so they don’t get all the properties on delay so I was recently at a seminar and I watched them do a Pulled up the live MLS from a realtor login as compared to what was on Zillow. The discrepancy rate was 47% Meaning that 47% of the data on on the MLS was not accurately on Zillow Said another way you’re wasting 47% of your time or you’re informing yourself with 47% wrong information I had a client just the other day say I’m looking at a home on Zillow right now It says it’s active for sale, but I called the realtor and they said the home closed three months ago And so as a buyer, if you if you think of all that false information that’s being fed out into the market You’re now thinking that the price that that you paid for homes three months ago is the same price for homes being paid today So you’re miss educating yourself with bad data and wasting a tremendous amount of time so I’ll also give you guys a link to an app that our company pays a tremendous amount to have a Subscription to it’s a live feed Into every MLS system in the country because it is the the company who owns the app The hell crimping app actually is a real estate company. So they have the active live access to every MLS we don’t sell your information your you know, it’s all about private and You have that live feed So you get a search for homes exactly like a realtor would so that’s my last piece of ice just make sure Your mechanism for educating yourself is live data, not solely through one of these media companies Wow I mean that alone that if you just offer that to our listeners Then that value is through the roof and as someone who is a real estate investor Getting access to MLS data is like the Holy Grail for us live time in that way. So Yeah, I did. Not expect that. Thank you. Thank you for that. Appreciate Appreciate that immensely and so go so Let’s roll out but your company will put all those information in the show notes as well But for those who are audio who may not have the ability to get get the show notes Go ahead and tell everyone how they can can reach you And get in contact with you. Tell us about your podcast all those things Ok, great. Thank you So you can you can reach us at probably the best website would be fairway Position home loans com, we could also just Google that our The book website is why physician home loans fail com? I’m also going to give you another super secret link that you can go in and just pull down the e-book if you don’t want to pay for the paperback version and I’ll also give you our podcast is the physician financial success podcast You can just put that into iTunes position financial success and you can pull them you can find that there And as I said, I’ll give you the link for the home scout app That is the app that gives you a live API fee to every MLS in the country a little bit about fairway I’ll be brief. I don’t bore anybody to sleep fairway independent mortgage is a company that is built around ten core values and What I think is unusual about fairway is compared to other companies is the entire organization is actually run with integrity to these ten core values and One of those that I think most important to a consumer is speed to respond. We also like to have fun so when we go through the mortgage process we’re sending gifts and doing fun things to clients to Surprise them we Soon as somebody goes under contract Eric we send a stress p3t via via Amazon next day to their house and we say hey enjoy the stress pretty Turbulent flight lands safely 99.9% of the time we got this so we do some fun stuff like that but the speeds of respond is really the differentiator with this company and that runs from the Executive team and the CEO all the way down. So if I need something as a loan officer or Director of position lending I get a response like that which enables me to give a response to my clients like that So I think that’s the big differentiator with fairway with a fifth largest retail mortgage company in the country so it Wells Shea Quicken Bank of America fairway so big company have access to pretty much every program. That is imaginable Perfect that I think sums up everything perfectly and just four people were listening Josh spells his last name Emmy TT le so if you want to be able to google him you can so M e TT le so I want to thank Josh medow for being with us today on the path to wealth again He’s the physician group Lead at fairly independent mortgage, and he’s director of physician lending I’m going to thank you all for listening to the finishing rope podcast today Please go to iTunes or your favorite podcast platform of choice and subscribe so that you can get our latest episodes Please also an iTunes rate and review our podcast 5 stars our best, of course So that we can have more physicians find us Lastly you can go to the physicians Road comm to find our guides and resources Thank you for listening again. And we will see you next time on the physicians road where you create your life in medicine The physicians wrote is brought to you by Vernon ville asset management Vernon ville asset management was created to help physicians build wealth and create income beyond Wall Street through our Exclusive private investments doctors can begin to free themselves from the burdensome regulations in health care by creating income streams Independent of medicine go to income beyond Wall Street calm to get your free report Wall Street’s biggest lie again Go to income be on Wall Street calm to get Wall Street’s biggest lie and free yourself today Thank you for listening to the physicians road where you create your life in medicine on your own terms Please go to the physicians road comm and sign up for your free guides Andrey

Leave a Reply

(*) Required, Your email will not be published