Speaker 1 0:03: Okay, continue. So no the obligation your property when you sell, it's really no one else's concern or business. Well, some of the things you might have heard is like a solar lease or solar obligation that the buyer would have to take over. These liens have to be paid off.
Sydney Bocik 0:25: So I felt like, I've, I don't know, just Realtors I talked to in the past who made comments like, you don't have a second mortgage or anything. Dude, you don't have like, a blah blah, and then, like, they'll say, like, good. When I say no, it simplifies it,
Speaker 1 0:45: no, what they're referring to is like a second lien on the property. That's not necessarily second mortgage. So again, the example is like a solar solar lease. It's an obligation on title that is generally passed on to the buyer as an obligation and or you have to pay it off. What they mean is, is there an obligation that will complicate from the buy side of the true cost your mortgage? It's, it's, is your responsibility?
Speaker 2 1:14: Got it? Okay, that makes sense. Yeah.
Speaker 1 1:18: Okay, so it's more like a mechanics lien. So, like, if you had a roof or something like that, that's really what they're they're trying to say the price and the cost to the buyer isn't the same as we expect. Or is there going to be hidden, hidden conversation your first and second mortgages?
Sydney Bocik 1:40: Okay? So if, if we're thinking about this from a Perlin perspective, would we where we talked about purchase and refinance, but where does this like key lock come into play? Then, because
Speaker 1 1:56: it's a refinance, it's basically one of the five reasons why people refinance would be to harvest equity is one of them, and the HELOC is, is that. So instead of refinancing, the first harvesting equity is a loan product, so it'd be under that same conversation of purposes. So again, lowering rate. This right to to create equitable so, to harvest equity, to take out cash. There are sometimes a variable rate to fix rate. So if we did the 10 year fix and it's currently adjusted, that's another reason, lower lower the term. So from a 30 year fix to a 15 year fix, or change the term or 15 year fix generally do 30 years to save money, but to lower the term. It's another reason for someone that's for they need to get out of debt and to lower their cost, and then the reverse mortgage is to actually to eliminate their monthly obligation, and harvest equity, is a combination of a couple of those things. So those are the reasons people would refinance their mortgages. Yeah, okay refinance for our conversations, to be able to provide that as a lead or a financial tool to solve a problem, to harvest equity, the answer would be yes. Is it a refinance? Technically, no, because we're not touching the first
Sydney Bocik 3:46: for like a me. Scenario, we could take this information and hand it to like a figure.
Speaker 1 3:55: Yes, the figure could facilitate this. Or a company that originates loans for figure, because figure now it's they're distributing through other wholesalers.
Speaker 1 4:17: Okay, so in this scenario, what we would like to do Sydney is kind of actually do the analysis like, All right, we're going to keep states, we're going to keep Tampa, we're going to pull out some cash, and this is going to be the cost and what the access to the cash would be. So there's a number right now, what you do with it? Second scenario, right? The second scenario is like, we're going to buy a property, we have this amount of cash, and now you move so we have this amount of rent cash flow, and then what can we afford? One we'll show you what you qualify for. But then, based upon what you told me, what our requirements on. On affordability, then we'll actually try to give you that visibility, right. $1,500 is the maximum you probably should get for your payment because utilities and other cost factors about $2,000 and that's kind of where we want to get you for cash flow, right? However, in the scenario, if I remember correctly, you probably want to, like, 22 to $2,300 if you needed to, as far as utilities, Mortgage Association, okay, so we'll go with that scenario two right. And then scenario three would be, well, scenario two would just purchase, also cash out and tell you what the difference from a line of credit? What's the difference from line of credit than a loan? Right if? Well, let's actually that's what we should do. So scenario one is taking a cash out if you're going to purchase something right away, we may want to look at a loan versus a line of credit. If there's a difference in interest rate or not, what a loan is is that your interest rate will be fixed. I know that's gonna be important for you to make sure that you would budget. Okay, the important doing a loan is is that your're taking all the cash at once, and the reasons why you would do that is because you're going to use the cash, in this case, a down payment. So loan, second loan would be a reference of regression, going to buy something, use it
Sydney Bocik 6:28: well, we said that I probably the other one doesn't fit my like cash flow needs or requirements, so we probably wouldn't buy anything right away.
Speaker 1 6:40: Again, my options is to help you understand the scenarios you gave me. And so the loan sounds like it may be something we need to go explore if you're going to buy right? So I don't want to say fixed rate, dollar amount, keep the budget a line of credit if we don't have something we're targeting to buy now, then we want to take the access to the equity when you're still occupying the property, and then you have the carrying cost of only what you cost and cover so the three to $5,000 to pay interest on that, and I can figure out the payment that's would be a new obligation that you could pay off at any time. You can create a zero balance, but you can pull out cash so that if the property is going to cost you money, or if your tenants do something, then you can have the property pay for itself. And that's what the line benefit is, okay. So that's that. And then if we were going to say all right now we have this line, we have this net dollars amount. Call it 114, government to do something. Then how much could you qualify for, based on HOAs and assume utilities like, what could you really qualify for, for payments? In this case, let's call it to 292 8290, and that should give you this number for these assumptions. And then when you find the real property, we're going to say, okay, association is different. Taxes may be the same, the insurance may be the same, but we have parking, so the cost that we assume for parking, we may have a little more comfort on being flexible there, but we'll have a framework for the purchase. And then when you were shopping, try to stay within that framework. Or if you super, super love it, then we could go back and try to figure out, can we do this? And say, if we have that second bedroom now, and we bought a home for 310 versus the 290 but has the second bedroom, and then you can rent it out for $700 then actually it's a cash flow might be even cheaper than what if you bought the single property you just have to decide that the tenant is part of the cost of that beautiful, beautiful property, Right? And kids, and then we've talked about your lifestyle, that you may want to move and travel a little bit, having the multiple bedrooms and multiple bathrooms, you may say, okay, great. It would be dangerous if I had one person, but if that two people, I wouldn't know that I could always cover one part of my obligation. But if I had two people, would be no brainer, and they could travel and, you know, build more real estate as an option, like you did in Tampa. So those are considerations that we may want to actually say, okay, David, one unit, this number, but if I have two bedrooms or two units, I can actually go much higher. Didn't want tenants, but really like that property. And now I just give you the options that you could do it, and that's all I'm here for. I'm just here to make sure that we walk through the process of what you can do and what you told me is important I remind you. But what about this? What about that? If you're cool with that, and we'll make sure that you at least have all the information. Okay? Okay? And then, then we have the departing residents. We have to talk about some of the concerns or risk of not being a non occupying landlord, right? Who's going to collect the checks? Who's going to fix the toilets? What's that number? So we should break that down as far as the math side of it, right? You live in Tampa.
Sydney Bocik 10:22: I have a property manager that I'm considering
Speaker 1 10:26: perfect, and so that's, again, part of the math that you want to share with me so that we can make sure that the cash flow works good based on what you told me is good is. And then let's talk about insurance and different insurances and floods, because we want to look at all the what if scenarios, right? So Florida, the main said, the most concern for me, for you, is kind of that that wipe out experience, what happens to the hurricanes? They'll miss you this time. What happens to you? And that's why they're taking the money out of the property, to me, is something for your serious consideration, that you've been lucky and you're lucky girls, hopefully it never, never runs out. But what if? That's what we want to cover the what if scenarios. Yeah. Okay, so what else? So when we circle back on the conversations. Let me know how you want me to present the numbers, or how you understand the options and how you would want me to move forward with you. Would you
Speaker 1 11:36: like us to get you pre qualified for the line of credit so we know how much access the equity you have and what the cost is?
Sydney Bocik 11:45: Well, I'm thinking of moving out of my house maybe in the next two months. So based on that timeline, how does that change?
Speaker 1 11:52: Things? Really starts considering it now, because it could take 30 to 45 days, and we want to make sure that, again, on the line of credit, on the application, is important, that you are honest, as you always are, with the application, and so they the occupancy does not ask you for anything after you move. It's effectively when you when you are in the home, okay, there are other mortgages, like first mortgage. So if we bought a home in Denver, for example, and you told me that you're intending to occupy there is an intention that you will live that that home for a minimum of six months, like it's literally in the agreement that is your intentions to live there. It might be 12 months. We will clarify. But the line of credit, I don't believe that there's that language, so I just want to make sure we disclose that to you, so that you don't sign anything that you're uncomfortable with or phrase that untrue. Okay, so we'll go we have your information. Is this all right? This is so good and so current, blah, blah, blah. We validated, right? We serve permission to rerun your credit to make sure we get you that go through the process. Yep. Credit still amazing, wonderful, isn't it? Congratulations. Looks like you paid off your car. That's wonderful. You're doing great. You did great. Okay, wonderful. So what we could do is, here's the new checklist of what we need to get you the approval process, pesos, basically, blah, blah. Well, you've done this before. Here it is. Thank you so much for the information. You're so prepared as always, great. We'll go ahead and get this submitted to you, and so call it 72 hours. We should be able to get you and actually confirm everything with the valuation of the home, the what you have. And then from there, we'll go through the process. This property will need an appraisal from this type of loan process. So we'll walk through the well, we'll need to do the next couple weeks like we've done before. Okay, okay,
Speaker 2 14:03: anything else we could do? No, this is helpful. Okay.
Speaker 1 14:09: Again, I'm here 24 hours a day, so you just type in over anything you need.
Sydney Bocik 14:17: So you'll notify me the next time I need to do something. Now that I have profile.
Speaker 1 14:23: Yeah, so again, in this scenario, you will you've already applied for a line of credit. And so what we're doing, we're going to move forward with while the team member, I should reach out to you to making sure that they follow up on what you need and set up the appointment for the appraisal. We'll get that scheduled, and then if you didn't want to get pre approved for a purchase, we will go ahead and start that process after you complete your line of credit. Again. This is just educational purposes, right?
Sydney Bocik 14:56: So if we did move forward with the i. Who's going to reach out to me about the HELOC,
Speaker 1 15:07: yeah, so we referred you to figure and you're going to talk to the gym, and Jim's going to take care of the process for you, but we are your mortgage concierge for you. So again, if you have any questions, we can facilitate all the checklists and information, but we'll have a human well, those human people talk to you,
Sydney Bocik 15:29: so I upload everything into one user
Unknown Speaker 15:32: experience should be here, yeah, go.
Sydney Bocik 15:35: It'll go to them, and then everything from them will come back to me, into here. Yeah, we should
Speaker 1 15:40: have one centralized place for all your data and your documents and all our conversations. Should be here, okay, so that if Jim wants to communicate to you, we should have that same thread in the same process. Again, he's a human so, you know, he may make some mistakes, but we'll be here for you. And so we should have one digital experience
Sydney Bocik 16:02: so you can help me understand everything that Jim sends back.
Speaker 1 16:06: Yeah, if there's any questions that you feel more comfortable talking to me on Sunday night at 11 o'clock when you're watching the new girl, absolutely we'll be here for you.
Sydney Bocik 16:16: Okay, should I be freaked out that you knew that was my favorite show.
Unknown Speaker 16:23: Don't be freaked out. Just know we know you, Sydney,
Unknown Speaker 16:32: okay, that makes sense.
Speaker 1 16:37: So here's the contact information for Jim and his team, team member, Tanya, right? And they might get emails from them their old school, they actually have emails so that how to figure that out. That might be nice to have a unified communication through this. No so. But what we'll probably do is that you'll get emails directly from them as well, because that's how they communicate, but we watch that would be here, so making sure that we could answer your questions. If you have any questions about terms or terminologies or timeframes,
Sydney Bocik 17:19: lady, she's so cute, she's so tired later. That makes sense. I don't have any other questions, so it makes so I need so it makes most sense right now just to open the HELOC and maybe move out of my house. You think that's that makes the most sense. I like the emotional validation.
[Transcript continues with detailed HELOC mechanics, capital gains discussion, investment math, and product scoping through 1:25:26]