Mortgage Matters

Announcer 0:00
This is a KU NV Studios original program. The

Wesley Knight 0:04
content of this program does not reflect the views or opinions of 91.5 Jazz and More, the University of Nevada Las Vegas, or the Board of Regents of the Nevada System of Higher Education,

Roland Daniels 0:43
Good morning, Las Vegas. Welcome to Mortgage Matters. I'm Roland Daniels, a certified mortgage advisor with Geneva Financial. My NMLS number is 355859 Our company NMLS number is 42056 and I'm here this morning, as always, with my fantastic co-host Heidi Griffith. Good morning, Heidi.

Heidi Griffith 1:07
Well, good morning, Roland. Happy Sunday.

Roland Daniels 1:10
Happy Sunday.

Heidi Griffith 1:11
How are you today?

Roland Daniels 1:12
I am doing absolutely fantastic,

Heidi Griffith 1:15
man. Is there ever a time that you are not fantastic?

Roland Daniels 1:18
Oh, I try.

Heidi Griffith 1:19
You do a fine job. Good morning, everyone. I'm Heidi Griffith. I'm also a mortgage advisor and your director of client services. My NMLS number is 2247754 So, I'm going to Reno next week.

Roland Daniels 1:33
You are.

Heidi Griffith 1:34
I'm going up north.

Roland Daniels 1:36
Yes, you are.

Heidi Griffith 1:37
If you happen to be tuning in today, and maybe you're in Northern Nevada, maybe you're in the Reno Sparks area. I'm actually going to be hosting a class alongside the Nevada Housing Division and Nevada Rural Housing. We have a class in one space. We're going to go over all of the down payment assistance programs that are offered.

Roland Daniels 1:56
Wow, first time going up north,

Heidi Griffith 1:58
it's yeah, it's going to be really

Roland Daniels 1:59
do a class.

Heidi Griffith 2:00
I'm excited about the class. If you know anybody in the Northern Nevada area that's thinking about home ownership, would like some options, this is going to be a really good space. If you've tuned in before, you know that we talk a lot about the different programs available. We've had Josie from the Nevada Housing Division on a ton,

Roland Daniels 2:17
right?

Heidi Griffith 2:18
Kevin, he's a fixture

Roland Daniels 2:19
here, Kevin Hickey

Heidi Griffith 2:20
in the studio, fantastic humans, both of them, and we're all going to be together talking about all the programs, and that class is going to be on Thursday, june 25 two to 4pm It's actually at the Sierra View Library, that is inside the Reno Town Mall. We have another class coming up,

Roland Daniels 2:38
we do, that will take place on July the 11th, that is in about three weeks.

Heidi Griffith 2:45
Yeah, yeah, that, that's normally our, that's our class with CPLC.

Roland Daniels 2:49
Yes, and it's usually the first Saturday of every month, but due to that week being the fourth of July, we have moved it to July 11, and we start at 8:30am That's the HUD

Heidi Griffith 3:00
certified class that we teach. It's from 830 till about three. They usually try and get you out of there a little bit early, but that really, if you've been thinking about buying a home, if you've never owned a home before, or even if you've owned a home and you want to pick up some more knowledge, because when I say this is the A to Z, that's no joke.

Roland Daniels 3:20
It

Heidi Griffith 3:21
is, that's no joke. They cover budgeting, they cover credit, not just, hey, you need this credit score, this is how you fix your credit, but how to continue to keep your credit moving forward in a positive way.

Roland Daniels 3:34
Yes,

Heidi Griffith 3:35
things to look for on your credit report, how to address those things that are on your credit report, because a lot of times, and we talked about it last week, we do a lot of times. We look at our credit reports, and maybe there are some things that need improvement. Many of us have stuff that needs improvement on our scores, right? And a lot of times, the do-it-yourself route doesn't end up the way we want it to, because maybe we're doing the wrong things at the wrong time.

Roland Daniels 3:57
And they will show you how to do things the right way,

Heidi Griffith 4:00
man. They do. Yeah, they're HUD certified counseling agent. It's a HUD certified counseling agency. They're HUD counselors. You actually teach the mortgage portion of the class, that's an hour long, so it's not just, hey, bring these docs, this is what you need. It really covers the mortgage process. We go over all of the real estate portion, you know, when you're not looking for a home, the things to expect when you're purchasing a home. Current market trends. I think a big one that takes place during that class is representation,

Roland Daniels 4:31
right?

Heidi Griffith 4:31
Real estate representation, and what that means to you as a consumer, as a buyer. It's a full day loaded with information, and that again is going to be on july 11, right?

Roland Daniels 4:42
Yes, from about 830 to 230 3o'clock

Heidi Griffith 4:45
Yep, and you can give us a call or text us to register. Our telephone number is 702-540-0420 Again, our number is 702-540-0420 So let's talk. We've been, we've been kind of brainstorming stuff that we can talk about on air, that's not the basic stuff that people hear every day,

Roland Daniels 5:07
right? Let's do it.

Heidi Griffith 5:08
We're not here to sell dreams, we're not, we're here to figure out what really goes on, number one in the real estate market,

Roland Daniels 5:15
and what makes sense.

Heidi Griffith 5:16
What makes sense, some of the good information, some of the bad information, and I kind of stumbled across, you know, I like to scroll my socials, and a lot of my social feeds are filled with real estate, financial information, mortgage information, it's just my algorithm, right? Right, and I came across it was a realtor, and she, she made a point about hearing a couple conversations, and it really sparked something in my brain, and one of the biggest things was that a lot of the information that we get, especially when we're looking, you know, at media or social or whatever, we're hearing one side of a story

Roland Daniels 6:01
we do,

Heidi Griffith 6:02
and is that side always the correct side?

Roland Daniels 6:06
I'm going to say no,

Heidi Griffith 6:07
probably not. Probably not. Again, I tell people all the time, we'll give you advice, we'll give you guidance, but fact check us, you know, fact check us. We're still just two humans, right? Give us, you know, give us a fact check, and we'll move forward from there.

Roland Daniels 6:24
But we try our best to provide clarity.

Heidi Griffith 6:26
Absolutely, and maybe our beliefs don't align with everyone's beliefs.

Roland Daniels 6:31
Everybody is different,

Heidi Griffith 6:32
and that's okay. And that's okay. So one of the conversations was in regards to a gentleman named Grant Cardone. If you're not familiar with who Grant Cardone is, he's a real estate investor, he's an influencer, he's a financial influencer,

Roland Daniels 6:47
he is.

Heidi Griffith 6:47
He spends a lot of time on social media,

Roland Daniels 6:51
and I've probably been following him, probably for the last 10 years.

Heidi Griffith 6:53
Yeah, a lot of his information is strong, but he's one of those guys who likes to show everybody how successful he's become, and that works for a lot of people.

Roland Daniels 7:03
The airplanes, the cars, the

Heidi Griffith 7:04
Rolexes. Yeah, I mean, we're seeing that Grant Cardone is making a lot of money. We don't even have to dig deeper to know that he's got a few dollars, or at least he appears to have a few dollars. He does, by the way, because we did do the research. He does have it. One of the things that he puts out to the public is that it's not a good investment to own the property you live in. His business model

Roland Daniels 7:31
can go a little bit deeper. Yeah,

Heidi Griffith 7:32
his business model is that of such that he gets investor money, so it could be your money or my money, right, but investor pool money, and he buys up real estate, primarily residential real estate, whether that be apartment buildings or condo complexes. He buys real estate,

Roland Daniels 7:52
yeah, through his syndication,

Heidi Griffith 7:53
through his syndication, and he's done extremely well with it, but again, I watch interview after interview, video after video, and he does stress that don't buy the house you live in. He makes it a point to say that it doesn't cash flow,

Roland Daniels 8:12
right?

Heidi Griffith 8:13
He makes it a point to say that you still have to pay taxes,

Roland Daniels 8:17
and why doesn't it cash flow? Because we're actually living in the property as a owner-occupied individual, right? That's why it doesn't, right? Because I

Heidi Griffith 8:26
mean, maybe you pay yourself, and then you can call it cash flow, but that's his mindset. And again, valid mindset for some people. I personally want to live in the property that I own. I think that that is a great stepping stool for those of us who want to become investors and own properties as investments,

Roland Daniels 8:46
right.

Heidi Griffith 8:47
What are your thoughts?

Roland Daniels 8:48
I agree. When it comes to owning a home, it gives you the ability, or at least the opportunity, to invest in maybe an investment property, maybe you want to invest in the market,

Heidi Griffith 9:02
right? Right, and owning your own home can be that stepping stool, because as it builds equity, you can actually use that equity and

Roland Daniels 9:10
pull the money out

Heidi Griffith 9:11
for the next step.

Roland Daniels 9:12
You're right, a lot of the smaller investors, that's how they start out with is the BER method, where they buy rehab and pull the money out and repeat and rent and do it again and again and again.

Heidi Griffith 9:26
I mean, it all makes sense, right? To some people, maybe that doesn't make sense to other people. Maybe people don't want to be investors, maybe they want to be investors and they don't want to own their primary residence. That's all good, but just remember a lot of these folks that are giving us information, so I'll use the example I just said, right? Rent where you live, buy investments, but he's building wealth through ownership.

Roland Daniels 9:50
Ownership, he's making money

Heidi Griffith 9:51
through ownership.

Roland Daniels 9:53
Yes, he is,

Heidi Griffith 9:53
and he's raising money to buy more

Roland Daniels 9:56
every day.

Heidi Griffith 9:57
Ownership, right? I'm not an. Tie this guy at

Roland Daniels 10:01
all, no.

Heidi Griffith 10:02
But what's the incentive? What's the incentive? Follow the money. Who does it benefit?

Roland Daniels 10:08
Grant Cardone.

Heidi Griffith 10:09
In this situation, it does. It

Roland Daniels 10:11
does.

Heidi Griffith 10:11
Again, and I'm not even against the dude, but these are the facts, right? These are the facts. When somebody gives you financial advice, should we look at how they made their money,

Roland Daniels 10:21
of course. We should, that gives us an indication, or a peek inside of their psychology of

Heidi Griffith 10:29
it. I agree. And then I dug a little deeper, because you know that's how I roll, and I really wanted to see who was out there giving advice, who are they giving advice to, and what is that advice, and I came across this young guy named Caleb Hammer. You might not have heard of him, kind of. He's kind of touted as a well, he's a YouTuber. He makes the bulk of his money from YouTube, right?

Roland Daniels 10:55
He does.

Heidi Griffith 10:55
You actually recently looked up his stats. He's making buku bucks, millions upon millions on YouTube, right, and he is kind of touted as the young Dave Ramsey,

Roland Daniels 11:07
right, the modern day, the modern

Heidi Griffith 11:09
day Dave Ramsey, and you know the majority of us know who Dave Ramsey is. Some people live baby

Roland Daniels 11:14
steps,

Heidi Griffith 11:15
live by his words, other people, you know, Dave Ramsey has this place in the world. I don't know if Dave Ramsey's method is is realistic for the masses, for the every day, for

Roland Daniels 11:29
everybody, but it does help some people,

Heidi Griffith 11:33
some people,

Roland Daniels 11:33
yes,

Heidi Griffith 11:34
but just a select few,

Roland Daniels 11:35
right?

Heidi Griffith 11:36
And when you go by those rules, you have to be really diligent,

Roland Daniels 11:42
you do right. Absolutely. So,

Heidi Griffith 11:43
this guy, Caleb Hammer, I caught an interview he actually did with Joe Rogan.

Roland Daniels 11:48
Okay,

Heidi Griffith 11:48
and he, his quote was, 'The American dream isn't owning a home anymore.

Roland Daniels 11:54
I don't know if I agree with that. That's

Heidi Griffith 11:55
what he said. He said, 'It's the freedom of renting. And then he finished that, that blurb with math is math, so basically he was saying it doesn't pencil out, it doesn't make sense. Do you agree? It

Roland Daniels 12:06
can agree, I can agree and disagree, depending. We're gonna put it out there. It all depends.

Heidi Griffith 12:13
It does. It does, because I really believe math is, or excuse me, housing is far more than just numbers.

Roland Daniels 12:18
It is definitely

Heidi Griffith 12:20
right. It's stability,

Roland Daniels 12:22
security,

Heidi Griffith 12:22
yeah. Your family, I mean, your family's got a place that's yours, it's control, it's, you know, you want to paint a wall, and you paint the dang wall whatever color you want it to be, right. A lot of landlords aren't going to allow that, and if they do allow, because I know that there are many landlords who have actually become more lenient in what they let you do in their properties now, but even if they let you do that, and even if they tell you you don't have to put it back, because a lot of them, I watched my girlfriend, she was renting a property, she painted a wall with a vaulted ceiling, and it was fun when she was doing it, because it's what she wanted when she had to move, she had to paint that same wall back to what it was that wasn't nearly as fun, and now you've got to spend not money on one can of paint, but now you've got to spend money on two cans of paint, multiple, and so it's a thing, it's a thing, and I really believe there's a big difference in math and house. Now, the numbers, yeah, they have to make sense.

Roland Daniels 13:18
Well, the math is the math, that is correct. Numbers don't lie.

Heidi Griffith 13:21
Well, numbers don't lie, but are numbers the only thing that we absolutely not

Heidi Griffith 13:27
well, and again depends on the person, right?

Roland Daniels 13:30
Yep,

Heidi Griffith 13:31
I think that's the big difference. If you have any questions about anything that we talk about today, or you've got an opinion, please feel free to reach out. Our number is 70254004 oh 25400420 again for 702-540-0420 So I think that when we talk about believing what other people say, kind of figuring out what's right for us, do we buy a house, do we buy another house. Do we have a house now, and do we sell it? Whatever those things look like, a lot of the stuff that I'm personally seeing is starting to boil down to believing in what you can do. I think that as prices continue to rise, I think that rates staying where they're at versus what we saw,

Roland Daniels 14:23
right, is making things a little bit tougher, right.

Heidi Griffith 14:26
Well, it's more difficult, and more and more people are saying that now's not a good time to buy, whether it's now, now is not the good time, or never a good time. The concept continues to come around and be present,

Roland Daniels 14:43
right? Maybe sometimes that may be the easiest thing to say, because they've been saying it for a long time.

Heidi Griffith 14:50
Well, they have. I mean, I know in my real estate career, I've heard it more than not, bubbles gonna burst, it's not a good time, but now. When we start hearing people say don't buy your primary residence, it starts to really make me scratch my head, because as we sit here in the Las Vegas Valley, I was born here, you were born here, born, you know, our folks both bought homes, their first homes, I think your parents bought in the 60s, my parents bought in the early 70s,

Roland Daniels 15:20

Heidi Griffith 15:21
and my parents bought in 19 nine. I'm going to assume it was probably right about 1971 Things were different,

Roland Daniels 15:29
they were

Heidi Griffith 15:30
wages were different, prices were different,

Roland Daniels 15:32
prices were like anywhere between 20 and 30,000 Yeah, and so rich neighborhoods,

Heidi Griffith 15:37
it's not easy to say we have to do like our parents did, but I think the same goal, or the same mindset, or at least the same thought process should happen, not for everybody. Again, this isn't me. Oh, you have to buy a house, because that's the only way to move forward, but I think that the dream of home ownership is still alive. I think

Roland Daniels 15:59
people

Heidi Griffith 16:00
have just heard so much static out there,

Roland Daniels 16:04
so much information is being put in front of us daily, 24/7 It's a lot,

Heidi Griffith 16:10
it is, it's a lot, but all of that, that it's, it's taking people who might have actually wanted to buy, and maybe they're telling themselves, well, it's just not my cards moving on

Roland Daniels 16:22
right, or it's still not the right time to buy, because even back before, let's say, let's go back to 2018 when home prices were under 300,000 they sure were, interest rates were anywhere between four and 5% all day long, and people were still telling me, I'm waiting for rates, I remember waiting for home prices to drop is going to crash again. Well, everything is pretty much doubled since then.

Heidi Griffith 16:45
Man, man, if my crystal ball wasn't broken,

Roland Daniels 16:50
where would we be?

Heidi Griffith 16:51
It's a great question, isn't it? But so let's talk about somebody I think that you're going to know who I'm talking about, but it's somebody that you worked with, you actually worked with her for a very long, I think it was several years,

Roland Daniels 17:05
several years. So, let's talk about a buyer that I personally know.

Heidi Griffith 17:09
Okay,

Roland Daniels 17:10
and you may remember her single mom, two kids, had some credit issues, and home ownership wasn't part of her goal at the time.

Heidi Griffith 17:22
Did you have that conversation with her?

Roland Daniels 17:25
I had that conversation with her about three years ago. Oh,

Heidi Griffith 17:27
okay.

Roland Daniels 17:29
So, during that time, after pulling credit, credit wasn't up to par, and she believed that home ownership wasn't.. I

Heidi Griffith 17:39
know who you're talking about. Yeah, I know she was adamant about I'm not going to own a home

Roland Daniels 17:43
because she had been renting for the last 30 years,

Heidi Griffith 17:45
right,

Roland Daniels 17:46
but somebody else bought a home and she saw

Heidi Griffith 17:51
that was a co-worker, right? It

Roland Daniels 17:52
was she saw the home, she.. I should have said she spoke to her, saw the excitement, and then she was like, well, if she can do it, I should be able to talk.

Heidi Griffith 18:03
I remember the conversation, because I had the conversation with her too, and she said that the person that she works with, that bought that, they actually used us as well, and she explained what had to happen, how little she was, because they used down payment assistance, right, and how little she came out of pocket with, and then she had her housewarming, I remember this one, and she had her housewarming party, and it really sparked something in her, and you know, whether it's, you know, keeping up with the Joneses, or what, she at that point was like, you know what, I have to do something

Roland Daniels 18:35
right, because now she's nearing retirement,

Heidi Griffith 18:37
right, and so you worked with her for a bit still, because you still had to get her where she needed to be.

Roland Daniels 18:42
I did,

Heidi Griffith 18:43
and she bought a house.

Roland Daniels 18:44
She actually bought a house.

Heidi Griffith 18:45
Did you happen before you came in today to write down the information?

Roland Daniels 18:49
I think I do have some of the information.

Heidi Griffith 18:51
Okay,

Roland Daniels 18:51
so we did work on her credit.

Heidi Griffith 18:53
Okay,

Roland Daniels 18:53
we sat down and we came up with a plan to actually start the process and a budget to start saving money on a daily basis, and

Heidi Griffith 19:03
did she do it?

Roland Daniels 19:04
She absolutely followed the steps. She

Heidi Griffith 19:06
did. She was prior to

Roland Daniels 19:07
she was just spending money when she wanted to.

Heidi Griffith 19:10
Party time,

Roland Daniels 19:11
party time.

Heidi Griffith 19:12
Yep.

Roland Daniels 19:13
Purchase price, if I remember, is around 375,000 So

Heidi Griffith 19:17
you got her credit up to par. She saved up some money, so she could use it towards the house,

Roland Daniels 19:22
and it did take a little while to get her credit and her savings up the park,

Heidi Griffith 19:26
right?

Roland Daniels 19:26
Probably about eight months, actually.

Heidi Griffith 19:28
Okay, okay, so she was starting at ground zero, and she worked her way up. So, how much did she pay for the house that she bought?

Roland Daniels 19:34
375,000 and if I remember,

Heidi Griffith 19:37
okay,

Roland Daniels 19:38
we were able to get what's called seller credit, and that was about 11,250 bucks.

Heidi Griffith 19:45
Okay,

Roland Daniels 19:46
and wait,

Heidi Griffith 19:47
hang on, let's go back to this. She got 11,250 bucks from the seller, so that's awesome, because that picked up a big portion of her

Roland Daniels 19:54
covered all of her closing costs. Okay, pretty much. And then we utilize one of the down. Payment assistance programs within Nevada Housing Division. Okay, so our down

Heidi Griffith 20:04
payment was taken care

Roland Daniels 20:04
of. Yes, if I remember, the appraisal was just over 600 bucks,

Heidi Griffith 20:09
that's about average. Yeah,

Roland Daniels 20:10
right. Inspection was just around $500

Heidi Griffith 20:13
that was for the home inspection,

Roland Daniels 20:14
right? She came to the closing table with $0

Heidi Griffith 20:20
I remember that, so yeah, say that again. She came to close, so she paid for her earnest money deposit. That's your good faith deposit, that actually takes the home off the market. You pay that prior to closing, that's at the very beginning. Once your offer is accepted, you have to deposit that at the title company.

Roland Daniels 20:36
And if I remember, that was at $4,000

Heidi Griffith 20:39
That makes sense for that price home, because it's usually about 1% of the sales price. So she paid her earnest money. She did her home inspection, so you've got to pay for your home inspection. It's not required, but there's something crazy wrong with the house. HVAC needs to be replaced. We're in the process of getting a new air conditioning unit right now.

Roland Daniels 20:58
Unfortunately,

Heidi Griffith 20:59
you could spend upwards of 10 to $20,000 on a new air conditioning unit. You want to make sure that the home is in the condition you need it to be, and if there's things that need to be repaired, that the seller works with you to take care of those things. So, her earnest money, her appraisal, the appraisals for the lender, right?

Roland Daniels 21:20
Yep,

Heidi Griffith 21:20
and her home inspection, those were the three things she paid before she closed, and she came to the closing table on closing day with no money,

Roland Daniels 21:29
with no money. She couldn't believe it. Actually,

Heidi Griffith 21:31
let's just stop and think about that for a second, because if I were to go rent a rental property right now, like everybody's telling everybody to do, you've got first month, you've got last month, you've got any security deposits, you've got pet deposits, you've got a pet, you've got, you know, these community maintenance deposits, key deposits, deposits coming out of your eyes. And then at that point, you got to save up to move,

Roland Daniels 21:56
you do absolutely,

Heidi Griffith 21:58
you got to save up to move. So I really think maybe people didn't want to stop owning Roland. I think they stopped believing that they could own. She didn't believe that she could own. She saw someone make it possible, someone who, you know, earned the same amount of money, lived the same kind of life, and bought a house, and she moved on. She's now a homeowner. She's been in her home, gosh darn, I bet close to a year,

Roland Daniels 22:21
yep, it will be a year,

Heidi Griffith 22:22
and all she's doing is building equity at this point.

Roland Daniels 22:25
Yes, she is.

Heidi Griffith 22:26
Um, it kind of brings my mind to when people believe that they can't do stuff, and the way the world as a whole is changing is that life has changed. It's not the 60s, 70s, 80s, nice, not even the 90s anymore. I hope that we all know that, and

Roland Daniels 22:45
26 and beyond, and

Heidi Griffith 22:46
everything, everything that we do every day looks different. I think we live in a subscription world. I mean, you know, it started with Red Box, right? You could order Red Box delivered to your house before they even had the machines, that's true. You've got Netflix, right? So we rent our movies, we rent our music. You have Spotify or Apple, or wherever you listen to your music. We've got app subscriptions, you know? You like this app, you've got to subscribe, and you pay x dollars a month or a year. Shoot, all of the marketing software and all of the software that we use, we pay monthly or yearly subscriptions for, we

Roland Daniels 23:23
do, and I think businesses have figured it out that they make more money on subscription services than a one-time, one-time heck fee,

Heidi Griffith 23:31
heck yeah, heck yeah. And has America quietly shifted from a nation of owners to a nation of subscribers?

Roland Daniels 23:38
That is a great question.

Heidi Griffith 23:40
Yeah, yeah. Growing up, you wanted to own your own stuff.

Roland Daniels 23:42
Yeah, we wanted our own car.

Heidi Griffith 23:44
You wanted your own house. Yes,

Heidi Griffith 23:46
you wanted to leave something behind. That was, you know, here I go with my air quotes again. That was the American dream, right, to have stuff so that we could leave them behind, not debt, not bills, assets.

Roland Daniels 23:58
Assets,

Heidi Griffith 23:59
you know, it's changed.

Roland Daniels 24:01
It definitely has changed,

Heidi Griffith 24:03
you know. And I understand, I'm not comparing today to 1971 when my parents bought their first house. I know that, I know that buying today is harder. I know that between prices and interest rates,

Roland Daniels 24:14
everything is more expensive,

Heidi Griffith 24:16
inflation. Well, yeah, heck yeah, you know, you went to the grocery store last month, and you bought the same exact items in your cart as you went to the store this month, and your grocery bill is $100 higher this month. We're all feeling it, I get it, but harder and impossible, in my opinion, are not the same thing.

Roland Daniels 24:35
I agree,

Heidi Griffith 24:36
and I think one of the bigger reasons why homeownership matters isn't because we know people don't buy because they want to mow the lawn and fix a hot water heater.

Roland Daniels 24:45
I agree,

Heidi Griffith 24:46
I think that the majority of us still do want the stability of home ownership. We want the control of being able to do what we want, and we want to create something that's ours.

Roland Daniels 24:57
Well, we want to build wealth as well, we.

Heidi Griffith 25:00
To have something that grows in value, and again, I'm gonna bring it back to Grant Cardone. He's basically saying that, but he's saying don't do that with your primary residence, right? Not all of us have the luxury to rent and still buy an investment, because you still gotta pay the rent. Absolutely, you still gotta pay the rent. Many of us are struggling to scrape up enough just to buy a house or for a down payment, even if that down payment is three and a half percent. That's why we come here week after week, and we talk about the benefits and programs available to make home ownership more accessible. Average buyer, how long does it take to save for a down payment?

Roland Daniels 25:36
Seven and a half years. Okay,

Heidi Griffith 25:37
and the minimum down payment with FHA,

Roland Daniels 25:40
three and a half percent, if

Heidi Griffith 25:41
I go buy an investment property tomorrow. What's my minimum down payment?

Roland Daniels 25:45
20% usually. Sometimes you can get it cheaper.

Heidi Griffith 25:49
There's the difference.

Roland Daniels 25:50
It is.

Heidi Griffith 25:51
There's the difference. So, if I buy my primary residence and I want to be an investor, because that's great, we are all for investors. Are we for, you know, private equity coming in and buying up cities? No, I'm not personally. Maybe you have a different opinion than I do, but that's not my jam. I don't want to see us living in a world of corporate ownership.

Roland Daniels 26:13
Well, it takes away the ability for the locals to actually purchase properties, makes a little bit tougher, a little bit harder, a little bit less affordable, in my opinion. I

Heidi Griffith 26:24
think it makes it a lot more, not just a little, I think it makes a lot more hard, a lot harder than you know, just people buying houses, and that's even hard, because we watch it, and even without the investor influence, which our city has a big population. I think that investors purchase more than people know. Yeah, I think. Let me pull those stats really quick. Here we go. So, between 2009 2024 investors in the city, and these could be individual investors that could be like you and me buying a house, or they could be major corporations, which many of them were purchased, like Wall Street, private equity. They purchased 100,000 homes.

Roland Daniels 27:10
Can you imagine that? You said 100,000 not 1000 you said 100 Purchased

Heidi Griffith 27:16
100,000 homes in the greater Las Vegas Valley. Did that help prices? No,

Roland Daniels 27:21
no.

Heidi Griffith 27:22
Did that help for housing supply?

Roland Daniels 27:27
It did not.

Heidi Griffith 27:28
No, we still have the same housing supply. Did that make it harder for people, everyday people, you and me, to go compete with an all cash buyer who's willing to take a little bit in the front end,

Roland Daniels 27:43
right,

Heidi Griffith 27:43
to make it up when they sell the property. The last three transactions we closed were all owned by corporate entities.

Roland Daniels 27:50
Wow, they were

Heidi Griffith 27:52
all owned by, and that's, you know, again, I'm not against the free enterprise, I'm not

Roland Daniels 27:57
right,

Heidi Griffith 27:57
I'm just concerned that we as individuals, trying to get ahead, especially if we want to start doing some investing. I want us to be able to compete, and as values continue to rise, and home ownership gets farther and farther out of reach, we're going to be sitting. I mean, you take a look at Southern, you take a look at California as a whole, the major, you know, the major metropolitan areas in California, we all know the stories. This is not a dig about California. If I could afford to live there, I might just live there, because it's beautiful. It is, but you take a look at people that make six figures and they can't afford to buy homes in so many instances. Do we want that here? And is that happening here?

Roland Daniels 28:39
I think slowly but surely, it is happening. We are getting

Heidi Griffith 28:43
out priced, and as things as basketball comes in, we've got baseball, and we've got soccer, or excuse me, baseball and football, and basketball, maybe it comes hockey. We know that. Go Knights, go, sorry Knights. So sad, but there's these indicators that say prices, you know, unless something very traumatic happens, and I, you know, hope and pray that that's not the case. Then there we are.

Roland Daniels 29:08
We'll be back next Sunday morning at 7:30am right here on KU NV 91.5 Until then, believe in what's possible, even if you've been told that it's out of reach, and remember, stay true to yourself and your mind. Bye

Heidi Griffith 29:23
bye.

Transcribed by https://otter.ai