He Approves Poor People for a Mortgage - Eli Sklar

[applause] [music] Welcome back to another episode of the Clappy and Frank show. We have with us today the one and only Ellieclar. I got a phone call from my friend Sershkup. He's like, Izzy, you have to have on this guy. He's not the he's not just the biggest mortgage broker in the world. Residential. He says he really specialized in residential. He's like he's just a character. And just over a few phone calls today, this guy is great. I already know this personality is something special. I always wanted to have on a mortgage broker and this guy has a lot going. Tell us >> he get you approved, Zombie. >> I think I think he could get a ham sandwich approved. [laughter] >> I always say I could get anything approved as long as there's a heartbeat and a desire. >> Ellie, how does a nice Jewish boy like yourself get into this rough, tough, cutthroat, crazy business of mortgages? >> It's a great question. When I was in high school, um I used to do bar mitzvah dancing. Even they around the same age as me. I used to do tutoring. Whatever it was, I just made sure to be always busy and also just make as much money as possible no matter what. So whatever the situation was and thank God I was in college, I was in yeshiva Turo College. I call for champions because because everyone who leaves there is a champion. the special management degree, Rabbi Stern, you know, for the finance mana man management on Abony J a A+. I was a A+ student and when I was finishing then my wife and I were expecting twins. We didn't tell anyone except my mom and she told everyone that we were expecting twins and it was a very exciting time and at the end of our I was interning in a bank because I knew the vice president and I was in yeshiva. >> You did his baroa dance >> probably exotic dancing for his kids. Yeah, my dad used to call that and it was uh basically I was I was ending the internship in the summer 2022 and I decided I mean I my wife and I were expecting in the next month or two and basically we need I need to get a job. So they offered me they said come into the office. I was thinking maybe financial advisement, maybe insurance, maybe whatever it was something in sales, something in finance. I once even thought about doing like fundraising for Yeshivos. Thank god that didn't work out. These people called me up. Not easy. Anyways, I was I was basically didn't have a regular job salary situation, but they said you could be in mortgages and you can get I don't know maybe $200 a week for commute. I was commuting from the five towns to Tene, which is like an hour and a half each way or so, give or take, when you leave. And I was like, okay, where do I sign? I mean, they they said basically you can make around $4 or $5,000 alone. And if you want to make $50,000 and back then that was like solid salary, you know, accountants make that. So it's cool. So you make $50,000 is 2022. Where do I sign? If I could do one loan a month, we're good to go. If not >> in 2022. >> Yeah. >> You said you started doing >> I'm sorry. 20 202 2012. >> 2012. Not not four years ago. >> No, I looked you up a little bit online. 2012 was when the number start making >> Yeah. 2012. >> 2022 was like, you know, time flies. You're having fun. Exactly. So, you graduated Turo College. >> Turo College. >> You didn't know if you were going to fund raise for Yeshiva or go into financial advisory and you ended up getting like a little bit like a draw $200 a week to commute. So, you decided I'll give it a chance with mortgages. >> Exactly. And you know those those those nurses my right when I June June 28th they were born. So, I just had started my job and I just became licensed and lo and behold, we had two nurses sitting in our in our apartment on a daily basis and the bills kept going. But I remember time and time again, it was a struggle starting out calling friends, family, anyone that you know, just like, "Hey, can you give me a chance? Real estate agents who know the family, can you give me a chance?" And it wasn't really begging. It was trying to bring value and seeing what I could do for them and then if it made sense whether refinancing or just helping out people. So that was really good. And then >> so that motivated you. >> That motivated me and but it was not easy. I mean I remember it was a struggle. I remember it was Ro right before Roshashana. It was probably that year in 2012 12 that I called my Rebby. I said Revie I don't know if I could do this. you know, it's like 3, four months in. I don't I'm all commission basic. This all commission and you know, some deals you put in, but then it doesn't close for whatever reason. I don't know. Maybe I should just go into accounting. My mom is an accountant and maybe my father was involved with management. Maybe I should just do that. Just take the easier cell. He's like, Ellie, this is what this story. He's like, your Russashana is going to be completely different than anyone else's Russ. Everyone's Rashana. He's like, "I got I make whatever is 100 grand. Make my 2% increase, $2,000 extra. I know what I'm going to get. I don't have to darnosa." She's like, "You you're every single day is a real is a real fight. And if you don't get the sale, you're going to be dobbing even harder." And I was like, "That seems very weird. I have to like really really struggle to do it in." Flip flip ahead in multiple years. There were times of real plenty, you know, when when it comes to mortgages, if on average back then the average commission was 5,000, I was doing one or two loans a month and then it just kind of doubled and tripled and it was like, okay, but it's not, as you know, I've heard I've heard you talk about the the the the regular Jewish life is not easy. Just because you make two, three, $400,000, you're not chilling. Especially if you're W2. We're W2. I buy 50%. It's been nice [laughter] and most and whenever you work for a bank is really W2. So it's you have to make double whatever whatever that khish is right now. Barm at my own situation it could be 1099 it's a little bit yeah a little bit more exciting with uh with the paychecks but the point is is like it was a struggle but I remember that struggle was real and it was felt like really like in my heart like oh my god what am I going to do? But it always worked out. And you know, it's very interesting because we had out maybe about 60 guests and I don't remember anybody else saying that they have twins. Although my partner in cry has twins. I never spoke to them once in my life about the experience which is mean to me. >> I have four children. Can I you have four children? Can I you have five children? out of her and I know just having one at a time going to the hospital having somebody babysit the other kids come back at night spend time with my wife go pick her up have four boys always a bris and then the pab and then the whole nine yards or sending her to a just a lot of drama and then the baby staying up all night and my wife saying could you make a bottle I made my sweep three in the morning for me put four scoops of this instead and she's going to nurse and she's going to this but she's going to nurse and pump and the whole shebang whatever I never in my life even dreamt I mean it's double the double the masle beautiful Hashem's gift but your first two were twins >> what's the experience from going >> what's the experience of going like being single then married and then all of a sudden overnight the family doubles in size two babies screeching >> it's totally wild my one of my once said that Ellie everything you do is not normal you don't know how to be normal he's like yeah we had children you know bar like n and a half months into getting married we got married September 15. By June 28th, we had twins, a boy and a girl. Like we got good to go. You know, we got the we got the bris, we got the kiddish, we got whatever every every situation you're you're good. And thank God, you know, in my life, whether it be the house that I have and like the situation that I'm in, we're very blessed. So every every time that that the the the uneasiness comes, but it also comes with like great great expanse and excitement. Um, how did I do it? We just whatever my wife said, you know, we got to get another nurse. We had the nurse. I don't know how long, two years, six years, I don't even remember. And I just like trying to get those bills done. She has no idea about finance, thank God, because otherwise she would probably have to not have that. Uh but we um she we always we had a lot of a lot of support from the family, a lot of uh a lot of love from the community. And um that's physically we just we just did it. We just made it happen. When I remember going I was in the hospital and they're like how the feedings you have to do every half hour and it's like okay, you have two. So I used to call my tag team champions where basically you would feed them. One would go to sleep then the other one's like here your your turn to wake up and so it was always exciting like no nurses. Yeah we got time alone and it was just like a tag team champions ready to go ready to it was it was good. Thank God. My wife, it was really exciting actually because my wife was on bed rest for I don't know a month or two because I remember we had a book day trip to Hawaii and we're like all these islands every single island that and the islands that people knew didn't know about we had planned with this lady Randy and we planned it for a month and I was so involved. My wife is not involved so much in the like the party planning but I was involved and I was like every single detail to the tea. >> Randy Randy is a girl's name or a boy's name. >> I don't know. She's in between actually. [laughter] >> I thought I knew guy's name. Randy, I'm all confused now. >> Yeah. Yeah. Yeah. Even then it was a question. >> Then she was pregnant. >> Well, she was pregnant. I remember booking it and we had everything planned and like between her assistant job as a in a teacher and my my job, we're going to take a nice 3-w week situation. And then I had to call Randy. We had like the doctors know it was like certain complications. The twins, you know, sometimes it's not so easy. Called up Randy. I'm like, "Listen, I'm so sorry. Uh, you know, I I" She's like, "You're lying." She she could not believe that I was cancelling this ultimate mega trip and it's like maybe it was like her her her salary for the year. I have no idea. You know, down south, you know, 10 grand goes a long way. So, I don't know. It was just like a big thing. And and she basically was didn't believe me. She's like, I need a doctor's note. No money. I'm like, what do you mean? Oh my gosh. Yeah. So, >> she took a year's mortgage broker at the time. At that time it was just a year like um it was my kids were born basically a year within getting married. So it was it was kind of like a year it was like within the within it was about six months in you know >> you had enough money you did enough sales to get their wedding. >> Yeah. You know you save up you know you have thank god but people give nice donations for the wedding. Some people use it for their their rent some people use it for shadels. Some people use it for I don't know. I had I was a youth director at the time in in uh in Woodmir. I was I made some money from that. that I also made from from being in mortgages and just being a cool guy. It's just people just gave me money. It was great. >> How do I what are you saying for that to be a cool guy? Just people throw money. >> I'll shoot I'll teach you after, you know. >> So, it's interesting. You start off in mortgages and you feel like you're the yeshiva fundraiser. You're calling up all your friends and begging them to become your clients. You're calling up all your relatives. You're calling up people that do real estate and say, "How could I?" And I know I had a relative that one time went into mortgages. He doesn't do it now. I think he he he's doing very well. and something else he did, but he tried it out of mortgages for a few months. And I remember him calling me up and saying, "Hey, Izzy, could you help me out? Get friends, get real with us." And you know, I I called up a few friends and I said, "Could you give this guy a chance?" And a lot of them were saying like, you know, I deal with my guys. I want to be loyal to them. They're going to find out I'm using somebody else. In every market, you have to have like a break-in period where like people will give you a chance. So, I'm saying is you had like a little regrets. Now my question is how do you know in your experience when you're not good at something or it's just going to take more time for you to develop your skill in that? >> Such a good question. I'd say that the my outlook when it comes to fundraising I think as I'm not a fundraiser but my out the outlook that I have money >> yeah I'm I'm a recipient of the of the people that that do fundraising. the what I what I would say is that when I look at people and I look at what I what I could do for them when I come to you and you came to me if it's a value value it's a mutually beneficial relationship it doesn't feel like I'm I'm trying to take money out your pocket so when I ever look at a real estate agent people may think I have 100 200 300 thousand people that I work I go very deep and I see okay what can I bring value now obviously communications without any doubt you have to be able communicate. You have to be real. You could be you could help them sell more. I sometimes knocked on doors for people. I've had people that I spoke to for whatever um cold calling that services that I'm I'm utilizing and there was a opportunity for for sale by owner. I'm like, "Hey, speak to this real estate agent." I try to create value for them where they put money in their pocket rather than just looking like a a a transactional type of thing. If they look at it that I'm just I'm just gonna here give me give me give me they're gonna it's going to be harder. But if I look at it, it's not like a a framing a change that I do in myself. I just in my heart I don't like to take. So I figure out ways, okay, how am I not going to take? How am I going to bring value? So there's different ways you could you can bring value by paying for their open houses and giving them like nice sushi. I used to call myself a caterer because I used to do open houses every Sunday and you know and feed a lot of yaden and non people. Some people I love when they come in like their their purses and they're like you know they like slide it under there. I'm like you take the whole thing. You don't have to like worry. I remember one time there's like a nice couple. They literally took a whole pizza pie and like they they came to the house. They didn't even ask my name. Like they took a whole pizza pie. I'm like that was 50 bucks. So what are you doing? >> Just took it. >> You didn't say anything? >> No, I didn't say anything. What do I >> want to say? >> They usually don't get eaten anyways, so I might as well may as well get it. >> So, they took a pie of pizza to go and didn't even ask you your name at an open house. Ah, [laughter] >> the other thing >> you still kept serving pizza, right? >> Um 100%. I'll I'll provide any food. Chinese sushi. >> You're hungry, you see a listing, right? Ellieclar, your name's on usually or it's not? >> Yeah, it's usually. >> Well, your name is the listing agent and >> No, no, not listing agent. I provide it for the listing agents usually. Oh, so if you name your honors, you wouldn't know if it's the the Ellis car pizza sushi dress. >> Yeah, that's true. The other big I would say another big yode what a big foundational thing that I that I basically go based on is that this one idea that that I got from a coach uh Big Joe and it was it was a very expensive program. It was maybe even $10,000 a month. I don't even remember. And I I remember it being so exorbitant but it was worth every penny because of this one thing. I'm giving you the the cliff cliff notes for something that cost me a lot of money. The the big the big foundational thing that he says is that everyone does business with family. End of the day, you give it to family. Now, why? Because you have to. You can't not give it to family. Your brothers and mortgage is like what you what are you doing? You're giving to somebody else. Now, if he doesn't come through, if there for whatever reason is like maybe you never talked to him, but that's not that's not a normal situation. normal situation is you do business with family. But the question is so how do I become like family? So if you become like family, so there's different ways to become like family. So obviously you you sit down with family. You have time you spend time talking. The best clients that I've ever had, the most repetitive clients were the people that I sat down with that I broke bread with and and speak to on a on a regular basis because it's comfortable. They're not going to think of sending it to somebody else unless if you're a family. Now, some people feel more familiar if you're posting a lot and they see your face and they don't even know you at all, but they end up seeing like that you're like a familiar person. You're a superstar in the Jewish community. Like, I have I have familiarity because I've heard of you before. I've seen you before. I never seen you before. But like because of the social media, it becomes more like you know somebody. It could be a supermodel or somebody that you like familiar like have you see them like wow you see the superstar you see the basketball player you've ever met them LeBron James have you ever like you know s next to him no but he's a superstar and you everyone longs to be next to him so they create that certain vibe now so the idea is to create that in a in a nutshell and it's real it's not you're not looking to fake becoming uh friends with them you want to be like family and you go out together you spend time together and also you bring value to them. So, it's part of that same equation where you're like, hey, I could provide a drink, I could provide service, and I could provide friendship. And then then once you have that friendship, then it's a no-brainer. >> So, you're saying either take them out for dinner or uh put a lot of videos yourself and [clears throat] people feel like they know you. >> I think I think it's those are good good very good ideas. Yeah, >> you should do both. I mean, do both. >> Yeah. Listen, even my avatar, whatever it is, as long as as long as you're delivering the message, I think it's very important. There were periods per periods of time where I just took a social media diet like where I like I don't think this really works because I'm pushing out so much. There were a lot of times I remember during co I was very very successful. I was closing 50 loans a month. >> 50 loans a month. >> 50 loans a month and take off Sunday in Jaba. So you're closing like three a day. >> Correct. >> That was like Sunday too. >> Yeah. It was so so much. It was so much >> and there's a lot of paperwork. >> Yeah. So it was cra it was crazy. They I I was just moved to Lone Depot from Wells Fargo and it was it was probably perfect timing. Hashem couldn't have done it better. Why? Because Lone Depot was prior to them going public. So what happened was their investors, they wanted to really amplify their origination. They they hired me not thinking that I was going to produce a lot. But what happened was with their origination, their rates were half a percent cheaper and their technology was so much more advanced. >> A half of 1% cheaper. a half of one of 1%. So it was a half a percent cheaper. So let's say the rate the normal rate was 5% they were four and a half four and a half. >> So like they would go to any bank they were it was at that point it was 2.625 or some 2.5 but everyone was 3% or more. So >> I could wrap in all the closing costs every single thing lift the rate by an eighth and and and still and and also everything was so automated because appraisal waiverss were were very pronounced. It was it was basically they didn't allow people to go into people's houses during co they had to wear the mask and they weren't able to go in and so because they weren't able to go in they had to do these appraisal waiverss but it just everything was clickity clickity clicketity get the title get the closing and you' had deals close I had over 200 250 loans simmering constantly and just you think about those times what I take from that is that Hashem could take that make every single thing work out and you don't have to do anything There was not one thing I did more that I and I was that's what at that point I was like it doesn't make a difference if you post a thousand pictures and videos of yourself. Literally God could just go like ding and you're good and and it was crazy. Obviously you have to do your to do your thing and I believe in that very strongly. Uh but at the same time at the other side of the coin is like you really don't need to do anything. So it's uh it's it's it's it's an amazing >> you gotta do something. >> Yeah. You gotta do something and and you hope it all works out, but you got to do whatever whatever is in your mind. Whatever you could you could think that will help you obviously should do. And >> you mentioned you mentioned Wells Fargo, Loan Depot. I almost got confused with Suka Depot coming from Sukus. Um you've been to mult you've worked for multiple um loan companies and today banks loan company. Who do you work for today? So right now my my license I work where for is Go Rascal where my my company like licenses. I basically oper operate as like independent brokerage or independent um my own comp LLC but it's powered by Go Rascal. I don't use their processing or any of the other than my license with them. Good thing is that they're licensed in 50 states and they constantly get new relationship with banks. that allows me to continuously increase my my volume and the types of loans that I do based on their their underwriting their their backend office. But essentially, it's all my own origination and support from the back end. >> So, in a way, you're at an advantage that you're not representing just one exact company, your bank. You're representing how many banks are you getting loans from for homes? >> Over 100 loan lenders. >> Over a hundred different lenders. >> There's so many lenders right now. every single day you have new lenders that pop up in every single space and the the main thing is not the fact that they have so many lenders but the lenders that are able to close they have good rates and good programs. So there is times a a lot of times people don't qualify for specific types of bank loans. So there are times that I refer business to the banks. I will never I make sure for every single client I give it like almost like a shua dissa like this is I am recommending the most the best deal for you. I don't have I don't have >> I just want to explain because there's people that watch our show with two two screens open and they're googling words that we're saying. >> Yeah. >> Uhua means the uh strongest biblical oath. Oh yeah. Oath. Okay. Go on. So I basically my commitment is to the the borrowers and to the the clients. It's not to the banks. >> Yeah. No, the banks the banks generally the uh the banks pay me. It's not out of pocket. Uh >> but the main thing is to to to basically be a shot be a matchmaker for the client. Make sure that they're getting the best deal. When you work for the banks, you basically have to sell their programs. If they have a good program that fits your needs, great. >> This rates I know you know interest rate. What does the program mean? >> The 30-year fix. Let's say let's say you're you're you're a potential buyer, a first-time home buyer. Now, you could you have and you're but you're also a self-employed business owner. If I tell you the only type of loan that you can get is if you have certain amount of income listed on your tax return or you get a co-signer like a family member or friend to go on the loan with you and that's it. you either have to show $300,000 of net income for two years or peace you can't get anything or if you have somebody who's making $500,000 he could go on the loan and maybe that could work out but he'll have to be on the loan for the life of the loan unless you refinance or sell. So that's that's like here this is a deck of cards. This is what you're served. But if I tell if you come to a different person like myself, I'll give you those options. But hey, I don't want to you don't want to show income on your tax returns because the 11th commandment, thou shalt not pay taxes. Then you don't have to show any income. You don't have to get a co-signer. You get almost the same exact rate as as long as you show 12 months bank statements. And you show 12 months bank statements with cash flow. $20,000 of cash flow a month. Mazletov, you get a house with the same rate. So, if I came to you and said, "You only have the first and two options," you'd say, "Okay, I got to figure it out." But that's not doing the honest the best thing for it. Most of the time, people don't want to have other people responsible for the loan. God forbid someone has a a rainy day. >> Co-signers are last resorts. >> You're the last resort where your real friends are. So, you don't want to find us people. >> It's a lot of times sometimes it's easy. They're like, but most people don't want to have other people on the hook for, you know, god forbid certain things come up. So essentially, you're not doing the right service for the client if those are the first two the first two options. That's it. But most people would do that if you work for a bank. Either they're being compensated more for it or because they that's all they have. So they're not going to offer you something that's not on their their rolodex. But the question is much bigger. It's not only banks and mortgages, but now I have the same question with anything you buy in your life. Should you go to a Volvo dealer or a Nissan dealer? I mean, obviously, every car that we're going to tell people to get or lease or find is only going to be through wheels to lease because they represent all the car companies, but in general, when you go to anybody that only sells a particular product, so if a guy works for a particular bank that does mortgages or a guy that works for a certain car dealership, maybe if you tell him what your family's needs are for the car and his company doesn't sell that car, >> he'll push you. >> He'll push you. He'll force you into it. So, you're opening up a very big can of worms, which is a good can of worms, where if you go to I bought a lot of insurance from a guy that works only for one particular insurance company, but you're saying maybe there's a disadvantage because maybe if you go to a guy that's independent producer that could have looked at packages from all different >> brokerage. [laughter] >> I'm saying is that is that a general rule like if you deal with somebody >> I think different markets have different um different different things. Meaning insurance brokerage you can go to Geico, but guess what? Everyone likes Geico because they see all these ads with these little like the frog and the whatever that is. Gecko Geico Gecko and you think it's great because you see their their name up in lights all >> 15% can save you. I don't I don't even believe it's true. 15% >> but you see their name everywhere. So you assume that they're doing the the the insurance, but guess what? They're just brokers like everyone else. They actually have the same premium that everyone else can offer. The only thing that they could offer you is sometimes if you bundle certain insuranceances together, you may have a discounted rate. But that's the same thing if you go to Allstate or you go to, you know, a million different insurance companies. You can get bundles of X, Y, and Z. >> I had Geico, they were the cheapest. Then I got into an accident. They went up like crazy. Then after a few months, a friend said that it worked for All State. Hey, let me see your rate. And he said he gave me the same policy was way cheaper through All State. So I don't know if anybody is really always >> right. So, in insurance, I think it's it's it's important to to know where your market is. From my from my vantage point, when my promise is that I'm going to ultimately get you the best deal that works for you, then I think that you have to work with number one, the person who understands it because there are sometimes that I'll refer um deals specifically, the guy has x amount of money in his bank and he can make a relationship with a bank and his rate is going to be a half a percent cheaper. I'll refer them to that to that bank. typical commissions >> um in general the in the wholesale brokering because this is what I am I'm wholesale brokering so number one besides having I just give you a backdrop number one the reason why being at a wholesale brokerage is amazing is because of plethora of lenders that you can go to and fit every single client for the specific lender you're making and making sure that they're getting the best deal. Number two is that having the ability to price things within their the best pricing model. And how do you do that is through like something called wholesale. Most banks, most mortgage companies are something called mortgage banks. The companies I've worked for in the past either their retail, but basically they have you have to serve whatever products they have, but also their rates. You can't just go and give something off the rate sheet and just say I'm going to give you the rate that's off. You have to exactly what their rate is because they have a certain comp comp plan which means compensation per loan and they have to meet that certain they have a certain margin that they want to make. Sometimes they make exceptions but ultimately comes back to bite you and you have to lower your comp overall comp um in general >> usually a better price it comes down to your commissions. Well, yeah, that that for retail for sure. Now, obviously it works with the way banks make money is through the rate, but sometimes you just don't have the ability to sell. You can't sell below in a wholesale brokering because we're basically there's no re there's no middleman between the banks and the lender between like us and the borrower. There's there's no margin that the the company needs to make. Go Rascal is not taking like a margin of the loan that they want to make a 50% override to be able to to do the loan. Rather, they're just doing exactly what the raw pricing the lender is because I'm not a middleman. I'm not not closing in my name. I'm just doing whatever the wholesale the lender is is is is offering and not and I'm basically bundling it and and adding to it in order to make the money. >> You do wholesale and retail? Basically, B most of the business that I do is wholesale as and >> to other brokers >> to to the lenders between the lenders and the and the borrowers and we get paid from the lenders. It's the wholesaling. It's it's much it's uh it's not like wholesaling with housing and you're buying it low and selling high. You just have access to those wholesale channels. Most of the mortgage banks have those wholesale channels, but then they have to they have to create a market up in order to to make it and they have to have a specific markup in order to get those deals done as opposed to wholesale where we could basically be broad pricing and they and the clients can get it. So, it's bas it's it's a whole different model just not only in terms of like the ex the extent. >> Yeah. Ellie Ellie, how tricky has it become to get a mortgage on a property? I hear it's getting very tricky and much harder. I heard years ago anybody would just sign a few documents and say they make a million dollars a year and get a house for $700,000. >> No. >> No dou. Yeah. Right. >> What's going on? >> Happens to me nowadays. Um I say the number one the number one factor in getting a loan is is obviously is is being qualified. But the number two is is being motivated. I've never had a client that was motivated to close seriously that didn't close. So if a person wants to close, he will always close >> no matter regardless of their income. [laughter] >> Regardless of their income. Correct. Now you have to go >> regardless the lack of income. >> Oh, but they still have to be able to make their monthly payments and have a down payment. >> They have to feel comfortable that a lot of it is nowadays in self-employed individuals have a lot of lot of work, a lot of room to u to facilitate their own ability to get a mortgage. There's three different lenders, three different types of loans that a lot of self-employed people get nowadays. Number one is they if they're buying an investment property or they call it investment, they can use the rental income to support the mortgage. So, let's say uh you're buying a property family. >> No, by a single family, a condo. Usually, they want to show that you're not going to be living there. But let's assuming like you're you're buying it as an investment property. You don't have to show any tax returns. You show that you want to buy a place for a million dollar putting 20% down generally and you could afford $800,000 based on the rental income of the subject property. The rent for $6,000 with taxes, insurance, HOA, whatever, it covers it one to1 ratio $6,000 or or if let's say the payments on the mortgage are less, you're good to go. That's the easiest thing. People have a tremendous huge pool of investors in that space called it's called debt service ratio. They just based on it. Now you have to show ideally you have to have another property primary. >> Is it a legal loophole to say you're using it as an investment p property and use it as your res primary residential? >> It is it is a loophole and a lot of people do it. I don't I don't recommend it if you're not going to actually rent it out. So but there >> are renting it out to yourself, [laughter] >> right? Um that's number one. That's um I mean that's for really for investment properties, but whatever. >> So 20% down. You have 200k. you could get a million dollar home as long as the rental could technically pay the mortgage, you're good to go. >> And that's be like that's for investment properties really ideally. The other one which is easier um as for primary residence is something called a P&L loan, profit and loss. You could say that hey you have your CPA or account executive AE right that you're making a certain amount of income that could cover the mortgage which is crazy. Just one document not no bank statements or anything to support it. Sometimes you have to show two two months bank statements, but essentially you're basically have on paper a P&L, you know, it's basically called it it's just a letter, right? And it's no tax returns. You're just writing that you you made a certain amount of revenue minus expenses equals net income. Bada boom, bada boom, he got a loan. >> Could the accountant be on the line if anything could they sue him? I don't know. >> You know, that's [laughter] I don't know. Uh then the other was which was like we talked about a bank statement program which you show either 12 24 months of cash flow from the business. The banks could go up based on the top-of-the-line revenue. Let's say you make $100,000 a month in revenue. You have a you have an online Amazon business and you're selling who knows um hair supplies and you go and you you make $100,000. The bank at a minimum will if we have supported by a CBA letter will say at least 15% of that revenue is expenses. Now a lot of times >> well there's a trick for Amazon sellers. If PZ deals puts a lot of their links, then they know they know they're going to be making a lot of money. >> A lot of >> money. Exactly. Uh if you have PZ deals in there, you're going to make uh amplified revenue. >> Investing your links, right? >> Exactly. So you have you have 15% minimum expense ratio. So $100,000 now reduced to 85. Then the banks will go up to about 50% of that in debt. So that means you can get $40,000 or so in housing revolving credit debt on your which is a huge amount. Let's say for a million dollars it's $7,000. So you're talking about of you can get $3 million loan based on that type of you know that type of but again it's not net income meaning it's just really what the top of line revenue minus their small expense ratio. Regular expense ratio without a CB letter will be 50%. So let's say it's $50,000 the bank will give you almost up to $25,000 in debt that will allow you to cover a mortgage which is a huge mortgage. >> Will someone lend you the down payment on it? there's any banks or any companies or hard money. >> There are different types of loans like people talk people I get text all the time. Hey, uh they have this uh free housing um usually for any house that you want to even think about qualifying for you it will not you will not be able to get it. Why? Because it's made for people that that are like on welfare and they're people that are um you know they they don't have they don't make any money. They don't have any assets. um they have to be in a very specific region. And I also say the number two thing, nothing is free in life. They're giving it to you a loan. They're going to put a lean on your property. They're going to put on >> They say there are programs that will give you down payment on >> supposedly, but I've never seen it. I've done thousands of loans. I've never seen one of them pass. >> At least sadly, I still don't own a home. >> And I believe with I agree with you 1 million%. If I really really wanted to own a home and I would be as passionate as I am as about everything else that I'm passionate about, I probably would own two homes already. >> And people, my friends that all own homes and tons of homes, they all say, "If you really want it, you'll make it happen." But they also told me something else. It has to, it's always out of your comfort zone. Buying a property is always out of a comfort zone because if you're so professional and you look at the numbers and you're like, "Well, I'm only paying $4,000 in rent and the homes where I live, even a small starter home, are 1.4 four and you need to put down 400,000 and the mortgage is going to be 78 thou $7,000 a month and if you rent out the basement you're only going to get like 1,900. These are all numbers that I went through in my mind and then you have to come up every month with so much money and it's so uncomfortable and what happens if you have a bad month you know and you're going to owe so much people so many people money and it always scared me and I'm sure it scares a lot of other people. So the question is how uncomfortable should you let it be to when you just pull the plug and say I'm not doing it because I've never done it yet because I'm always scared. >> So there's two answers. Number one, I would f first focus on, okay, right now, what what are you paying in rent? Okay. Now, are you putting any of that money on top of the rent away for a rainy day or for maybe investment or a down payment? So, let's say a person's paying $3,500 a month in rent. >> Okay. >> But and that but he's also putting down an extra $3,000 for a rainy day fund or investment brokerage or maybe he's putting it for his down payment. So every month he's allocating six six $6,500 already. So now if the payment went up to seven or eight,000, it's only incrementally more. It's only a small amount more. Now may not be easy, but it's also okay. You make one more deal or you can kind of squeeze squeeze it, make it make certain expenses go down. I love when people they they go crazy about the the interest rate, but then their insurance is like 17 times the regular market price. like what happened to the interest rate all of a sudden? Or like you see that they're so tough about the monthly payments and you see them going out to do and salt every other night. They're spending $1,000 at dinner with all their friends. It's like okay, but what happened to not being able to afford the house? Is that where you live at Park? >> There's no social pressures. >> Exactly. Exactly. >> It's like you have a pizza store and a Chinese Exactly. >> Yeah. Stary. >> Then you get they get hit on the real estate taxes. What's real estate taxes? >> Well, I mean it's a lot actually. It's points to say Yeah. I mean, mine's probably 28. >> 28,000 just in taxes. You'll get it back. >> Yeah. You give it to the Highland Park High School for transitionals, whatever. >> You've had iPad Pros in some of these high schools now. >> So, but I like what he said. If anyone really wants to get a house, they'll get a house. >> Yeah. >> In New York City where they have to move to Kingston, Pennsylvania for you get a start for $250,000. >> I think everyone has to has to have the comfort. I don't think people should go into but there are different ways that I that I can lower the payments if someone qualifies for a traditional loan. I have ways of negotiating with the seller to get 3% lower than the the market rate in the first year second year 2% third year of 1%. So instead of the rates being in the mid7s you could be in the four four and a half% then becomes more affordable. A lot of times people focus on the rate become less emotional is a separate discussion but become less emotional about the rate but more the payments because there are loans that you could do interest only. It could be 30% less. You mentioned the number $7,000. There are ways that even with the same down payment you go for interest only and it's not like it used to be where the balloon payments everyone talked about. People went, you know, fear the like everyone's going to start tumbling down. It's like Twin Towers when the intereston payment it finishes. It's not true. They are 30-year fixed, then it's 10 years interest only, then afterwards it's 20-year fix. There's like zero risk and it helps people and cash flow wise. So, if most people in the finance industry love interest only because they create cash flow and they get the bonus, they could apply it to the principal. It's like a low interest credit card. Boom, boom, boom, you pay it off, you're happy again. So, the point is that you have to work within what what makes sense for you on a monthly basis. And then once you can figure that out and you can kind of squeeze it, you don't want to be too too much. I heard one time a guy, he just came in from Israel. He's just and he he was going to law school and he bought a fancy house in Lawrence and he told me this. He's like an attorney, but he before he was an attorney, before he was in financial adisement, uh, trust and estates, he he said to me that, "Hey, I didn't know what I was doing, but I said to God's going to provide whatever it is." And I do find it like I don't know how I'm making my payments, but God's like figuring it out. I don't know with all like the downturn postcoid when the rates went up shot up and there wasn't a cash flow situation got into different like the business funding a little bit got into got into a little uh it wasn't easy but at the end of the day you have that bill I actually regret one time when I when I thank you when I closed on the on my house on my my recent house I remember that I I was making a huge sum of money from from one of companies to sign on with them. And I said, >> "Huge sign on bonus. >> Huge." >> And I was like, "Wow, I I needed this money for construction." >> Instead of taking out, withholding, you know, on a 350,000 or 400, whatever it was with the proper taxes, I said, "Okay, listen. I'm going to make the money because I'm I'm cash flow. I'm making cash flow, but I need that money." If I really had proper faith in God, I would have said, "No, take out the w the withhold the right taxes and God's going to provide whatever is needed." And I always regret that. Meaning, if you could create that that need, you're going to get a God's going to come through. It's just it's just a reality. >> Not to be pessimistic, does it ever happen that you give somebody a loan and a mortgage and a few months later they literally cannot pay the mortgage and like they lose it or like >> I've had one time in my career where I was at Citizens Bank. I remember it vividly and they called me in like inspector like in investigator. They called me into like a random Dunkin Donuts in Borrow Park and he's like do you know this client? I'm like not really. [laughter] They're like well do you recognize these bank statements? I'm like looks like his name and he's like do you know there's fraud on it? I was like I don't know I'm not like an investigator. like I didn't know about. He's like it wasn't my fault at all, but the guy fictitiously was a and he said like the beginning balance and any balance didn't match from month to month. [laughter] >> Point is like the guy didn't pay the mortgage and they recaped. He didn't pay make the payments. He fictitiously showed that he had more assets and he never made a payment. They took back my commission. I was really upset that day and the guy who referred it I was like what are you doing? He didn't know either. And um >> and regardless today in New York especially, it's supposed to take five years to foreclose on a house, 10 years. So if you can't afford it, you're good for a while. No. >> Right. Right. >> He just loses his commission. >> Yeah. Exactly. >> I have family members that didn't pay mortgages 10, 15 years. >> Paperwork, please. Yeah. Lawyers, right? You could you could kick the kick the can down the road. >> Yeah. But you don't want to be in that situation. I think >> I'm just saying I think what >> meaning if you realize that that that if there's always a question I think anxiety you could ask your stuff okay if this doesn't work out what's going to happen you don't study for your test and you fail your house okay so what you're going to your average rate payment your average >> what does a foreclosure take five years in New York City >> it's a long time it's a very long it's a very long time >> but it's embarrassing and you're living with anxiety and you're getting statements every day in the mail you're getting calls from the bank I I I know people that are dealing with this. It's not fun. It's not fun. >> Yeah. You Some people are made for that. Some people are not. Some people just would rather the peace of mind of just not having to deal with it. I don't think people want to have that in their in there. But if you have that mindset, sure, go for it. Um it's it's it's just you don't want to go into something that's completely out of but there is a that is a good point of of anxiety. Be like, "Okay, if this doesn't work out, I this is a good point." I say, "If it doesn't work out, you're I always say you're married to the house. You date the rate. You're actually not married to the house. It's real estate. You can sell it in six months from now. There was no quam issue at whatsoever. It's not I've had somebody that that went into litigation on their down payment because they didn't want to go buy it and there was a whole problem. He should have just closed instead of going into litigation, flipped it maybe even for the same amount of money and he would have been m ahead of the game. >> He would have been ahead of the game >> instead of just okay, you can't afford it so let's let's argue about the down payment. >> I think >> so interesting. better buy it and then flip it and usually in New York it's worth more money anyways the next day. >> Yeah. What do you worry about 3% commission? You make sure that you you increase the sale price by that amount. So, but but one thing is >> another important point you're buying the house not as an investment. You're buying it to live in. So, you have to think about what is a comfort valuable to meaning it could be that's not worth it. Meaning, uh you don't have the money to put the down payment. Um so, therefore, it's it's just not reality. But there is a certain comfort of being able to own a home, being able to live it. You're be able to host. You can damage it. >> When you're paying 27,000 taxes a year, >> you own it. >> I mean, I I own paintings. I don't pay any 27,000 a year in taxes on paintings. >> I agree. But there is idea own it. >> Yeah. Listen, there's no no question about it. You could I know people that are renting for their whole life and people in like lower east side they don't they all rental buildings and they're all they're happier than most finding he probably didn't even own this house >> FDR drive yeah co-op maybe I don't know whatever the point is like >> everyone you could you could you can enjoy it but I do think that with comforting a comfort of a house number one number two it happens to be in terms of financing and a lot of people made their wealth in in owning homes So as you always as your appreciation of value in very good markets you end up giving you end up being able to create a whole wealth besides the money you're putting down for for your equity with with monthly principal and for the down payment you make a lot of times the values people have been able to cash out more than whatever they put in. Um and >> WT W2 non-B businessiness owners their best investment is their house. They don't anything else. So like for them we don't have any business opportunities per se you know >> yeah a lot of people are using their money for invest >> for their investments and >> and the most expensive item the average person in the world buys is their home >> unless you're like some Saudi billionaire that buys like a Gulfream plane for like $40 million. I mean the average person their home is the most important thing that they're going to ever own and the most expensive thing they're ever going to own. >> So a little bit of a crash course on mortgages. >> Yeah. couple. She's 22. He's 25. They're both in school. They're graduating. Maybe he's going to do a kyo. She's already working as a speech therapist because that's what everybody does. And they know they want to buy a home whether it's in Lakewood deal, Tom's River, Brooklyn, Flappish, Kylin Park. >> Let's A lot of people make a lot of mistakes and then they when they do want to buy the house, they jump in right away and they're like, "Oh, they find out about this ob this obstacle, that obstacle, their credit score." Yeah. >> Exactly. Their credit scores, their this, theirs. a little bit of a crash course to help our audience. What What should people be doing right now that they know they want to they they they want to buy a home in the next two years? They're for sure going to want to buy a home. Um what should they be doing? And let's say that the price is one is going to be on average $1.2 million. >> Okay. Great, great question. I think everyone should be listening to this question because it's so basic and so real and it's like that's what what what people should be tuning in for right now. What do you want to do? So, what you [laughter] This is the most basic thing. What do you want to do? So I always this the how I introduce it is basically like just like the legs of a table. You have four legs or four pillars or things that the the house is is going to be standing on the foundation. >> Yeah. Everything comes down to uh so so it's the the credit. You have to make sure you have the credit score that meets the guidelines. >> The husband and the wife. >> Husband and the wife. >> Usually they're both on the mortgage, right? >> Where? Yeah, they're bring bringing in income usually. Yeah, exactly. We'll go into more details soon, but I talk about credit, the income, the source of income, the assets they're going to be using for down payment, closing costs, and something that's not really relevant, which is like the appraisal or collateral. Sometimes it is important because house sometimes houses are dilapidated and they don't conform to regular things. But the point is I'll go into each in detail. So, credit is a huge thing that a lot of times it impacts number one the interest rate and the types of programs. Nowadays, you can have programs with as low as 580 credit score with three and a half percent down. So, if as long as the income supports uh what whatever they're going for, they don't need to put down a large down payment and they could have low credit score. But most people want to have the optimal type of >> mill a million dollar house. What's the least you could put down? >> $35,000. >> You can get a house in a million for 35. >> That's a joke. Anybody can do that, >> right? So, you just have to show enough income. It's a it's obviously tax returns and and >> I don't know when I was looking at a 13 house. I mean the the the down payments I was looking at on traditional mortgages are between like 270 and 390 like crazy numbers. >> No. So nowadays you can go up to the maximum conforming limits which is 1.209 750 on a single family. So on and one you could put down as little as three and a half%. Now obviously if you put down a little bit you're going to have to pay a bigger mortgage and there's mortgage insurance if you put down less than 20%. The point is is that you have you could potentially put down very little and have very low credit scores. Most people want to have the best rate and the best pricing. So, a lot of times people look at as 20%. It's very very obvious. >> That's probably what I was that that's what I was looking at. Okay. >> Right. But it's a misnomer in the industry. Many of my clients of first-time home buyers especially 5% 10%. In this in competitive markets, sellers really want to see, okay, you have ability to close. Many times it has nothing to do with the type of loan. You can get 100% financing. I have physicians, they go 100% financing. You can get 120% financing. Nobody cares. As long as you close on the house, the sellers are happy. Nobody. They don't care how much. >> 120%. You're getting more money than the house. You got construction. >> Yeah. But they don't care. >> If the doctor's buying an office for themselves. >> Oh, I'm talking about a single family house. But the guy the guy's buying a house and he puts $1.5 million, 0% down, no mortgage insurance. The seller doesn't care as long as you can close on the loan. As long as you give the shorty to close, you're showing he's he's rocking and rolling. That's the main thing. So number one, we're talking about the million million two down payment and rate and credit score. Again, you can get this Federal Housing Administration loans, very low credit score and low down payment. Now, some people don't want to have that. Uh whether it be the sellers requiring more down payment or you just don't want your payments to be so high. So it'll range a little how much >> care FHA in general have certain house um health concerns or more more questions when it comes like if let's say the basement is not finished for FHA generally they will not allow the the house to close because of the unfinished basement it's up to the studs but conventional they don't care so there's FHA if there's a if someone's in Brooklyn and they have those bars by the windows those are you're not allowed to close with those FHA so where whereas uh convent not a lot of clothes with the bars on the window. >> I think with the bars there's always like a complication either take it off, take it down. It's it's got it's got to be able No, because they have to be able to get out now. It's a safety concern. >> Safety concern. >> So if you get robbed and murdered, as long as it's >> Yeah. Exactly. Exactly. >> You know, there's certain there's certain things railings like I've seen concerns about >> it's hard to get approved. was lower so it's hard to >> we work with it honestly if if usually it's going to come pick >> sellers market then they're not >> nowadays I think it's it changed a lot because of the rates >> he worked with it I'll send the cav for donation I'll take off the bar [laughter] >> exactly it always works out as long as you desire >> the fair yeah >> we can do the sponsors then >> so the sponsors are keeping us in so first of all the sponsors are so good sponsors are so good we couldn't even wait to get to the advertisements to talk about our friends from Oaken Oven Until Oak and Oven came around, I was literally only drinking selzer and water in my house. And I was like, I don't need I >> But you know what? This fills you up. It makes you feel good. It makes you happier. You eat less. >> The Okov and they're making such good drinks. They're all applebased, but they already have six flavors, and each one's better than the other one. the whole tish rate. All my guests that came over, we were giving them the crab apple, we were giving them the apple cider, we were giving them the white peach. And this one is actually a lot of people are into the orange juice. So this is apple citrus juice blended. All natural sugar, no added sugar, Canadian apples, delicious, delicious, no food coloring, nothing processed, all natural. And uh very, very, very delicious. strongly recommend everybody that goes to the grocery aisles, get the Oak oven. Another one of my favorite friends is from the uh CH Butcher. Crown Heights has a beautiful, beautiful sit-down fleek restaurant called CH Butcher and they have a meat store, you know, fresh meat, a butcher shop. Now besides that them being so fresh, so delicious, such a high standard of kashwas, the CHK, what interesting about them is they want to cover all the grounds. So what they do is they make these delicious built tongs and beef jerkys, also all natural. You have a 2-hour drive. Now, a lot of people have to drive. They have to commute to work. They're going to closings. They're meeting with banks. They want a snack. What do they fall for? Donuts, potato chips, all that. This stuff all natural protein, no sugars, all protein, low in cholesterol, low in sodium. Everything is cured, beautiful, natural. They have a gazillion flavors. And the amazing thing about their Brooklyn restaurant is you don't have to get a $300 parking ticket in Manhattan. Local CH Butcher on Troy Avenue. My friends at CH Butcher make sure that everything is healthy and delicious. And the is local. It's not a Argentinian, Brazilian flown and meet. It's all done locally and uh the very very high standards. Another one of our wonderful corporate sponsors is kadesh.com. People travel, they have a great aunt, a great uncle, a relative. Um and they don't know if they're always going to be able to say kadesh every day. Kadesh, it's a couple of dollars. You get a yard reminder every year. They have a rabbi saying kadesh three times a day. They mention the nishama kadesh.com. They could take care of everyday kadesh or once a year just on the yard site. They take care of it. [snorts] Also, my great friend Saul Hershk and my great friend um what's his what's his name? Izzy Herman. >> Herman. >> When you need a new car, always call wheels to lease. They give you the best pricing, the best vehicles, same day delivery, and guess what? Credit approvals. They get anybody approved for your home, you call Ellie. For your car, you call my friends at wheels to lease. And again, they still have the deal going on. Fully loaded Odyssey. $3.99 a month. You get that minivan. Kids going back to school now. You need that soccer mom minivan. You call my friends at wheels to lease. $3.99 a month. PZ deals. We all spent a lot of money over Yamiff. Everybody's ice is spended a full week of trips Monday through Friday. Everybody was spending thousands of dollars. The suka, the meat, the wine, the d. Everything was expensive. You need to buy something now. We're buckling down. We're buckling down. If it's not PZ deal approved, it's not happening. Let the family know this winter. We're going to save money. Everything we buy, we're using our friends at PZ Deals. Check it. It's on Android, Apple, desktop. PZ deals will make sure you get the best deals. Now, people buy homes, people buy investment properties, people buy garages, dealerships. You need good insurance. And again, like you said, you don't just want to have an insurance agency that focuses on one company and they try to package it to you no matter what that you need to buy their insurance. My friends at Brooklyn Brokerage, huge agency with a boutique feeling. All the workers are good people and they make sure you get the best rates. They go over your policies. Who do we spoke to today? A huge appliance store. We were speaking to them, a huge appliance store. And they're like, "No, everything we get is through Brooklyn brokerage." They said, "It used to be a different company. We want to get the white glove treatment. Everything is through my friends at Brooklyn." Next self.ai. My dear friends at next. I they put together beautiful beautiful things on >> Oh, the Messiah is not an ordinary righteous individual. He is the leader who guides the generation to live with responsibility and relationships before the creator. Yeah, that's what Msiah is all about. But I'm saying he has thousands of things onis and kaba and z and he very very um good stuff and uh elevates people. It's very important. So what is it? sponsor next. >> Next self.ai. So, a person wants to get approved for a mortgage. They think that they uh they have good income and their wife and them their themselves and their wife have a good job and that they have money put aside and they fill out the paperwork and then they get surprises. A lot of people they put it in and they think, "Oh, I had perfect credit. Everything's amazing." And all of a sudden you find out your credit, sir. I I was one time applying I was applying for a loan and I thought everything in life was perfect and a 900 credit I pay every single bill in the world. I never owe a single person in the world money and all of a sudden the guy calls me up. He's like what happened with you and Mazda? I'm like well what happened with me and Mazda? They're like something going on with Mazda. Turns out >> not a sponsor, >> huh? >> They're not a sponsor. >> Turns out I gave back a car lease like all my car leases. I think everything oh and they say oh there was a scratch, there was a dang, there was a this one of the key fobs wasn't working. My kid probably threw it out the window nine times. You and I probably put scotch tape. And then they called me good cop, bad cop. They're like, "Oh, it's $2,400 in damage." And oh, it's so expensive. And we had a whole fight for an hour and they called me back the next day again, the good cop, bad cup. And they settled for like 1,600 or whatever it was. I'm like, "Okay, beautiful. Here's my credit card." Those animals reported me to a credit agency saying that I didn't pay the bill in full. I'm like and back and forth screaming and yelling weeks, months. They sent me out paperwork. I paid the money. Now they said that it's paid in full. They're going to send it back to the credit agencies. I don't even know where it's holding. But it's such a hutbah. People that pay every single bill in their entire life and then all of a sudden they want to buy a house and they're finding out. Nonsense. And then I had a guy tell me, "Oh, credit repair agency. For $5,000 I can remove anything off your name." You know >> what's going on with with credit repair? >> Yeah. One of the big things when it comes to getting a mortgage, as we said, is the credit. Now, many people think they look on their Experian and they get the notices from Chase. They get notices from Capital One. They notic this from every single place. My score is 800. 8 like it's like congratulations, we never seen such a za with the highest credit score. They, you know, they send you like a great job and you think you're a rock star and then all of a sudden you see something different. So, not everyone has credit monitoring. I think number one if take away from this is that you should have credit monitoring because if something something does go uh sideways you should be able to address it right away because sometimes they're mistakes. Um but number number um yeah credit is very very important. Many people don't realize it and I just had a client I pre-approved them their credit expired by the time they were they found the house. We had to rerun it. All of a sudden student loan rate rates this was post in co everything was suspended. She didn't realize and they had like maybe 50 lates like listed on her credit. So, her score went from close to 800 to 600. And you're still qualified. But the point is like she had no uh like almost like what why would I do that wrong? What why did I do that? Meaning you have to we we're proactive in it and and we have to she should have realized and I should have said listen you got to be careful with your student loans. I don't know. Um >> don't go to college. Crazy. See [laughter] see what happens. You go to college. I got to go to the army. >> Guys in Lakewood don't have these problems or Crown Heights or Williamsburg, >> right? Yeah, exactly. It's true. >> This is a Remember I went to NYU graduate school. I was like, "Wow, was it worth $75,000 for an extra little paper on the wall?" You know, >> if you're in Highland Park or Tene, this is, you know, you don't show if you're going to go to college, right? >> True. True. [laughter] >> Yeah. I don't know how how many people get married. It's must be everyone's got goes to college, right? Point is is that credit is a very something you never realize. It could be a $12 collection bill from Verizon for not paying some some >> I once had this gym. I signed there for one month. It was like $8. I didn't know that. >> They lock you in. It makes hard to cancel and it came off my credit. I was like, "What's this credit score?" $8. >> $8. >> $8. Yeah. >> You said $12. >> Yeah. >> What are What could they report you for? Anything. >> Anything. It could be $1. >> And they report you to the credit bureaus and they go into collections bureaus. So, a lot of times, I mean, there's there's these credit credit repair companies that basically dispute uh information, but they do it in a certain way that >> service. Basically, I've I've I've sent so much so many deals to so many different credit repair companies. One guy last year from my my my referrals alone, he made over $150,000. So, very lucrative. >> Are you going to open your own uh >> I'm going to try I want to bring value. You know, they make they charge so much money and I think it's so so evil. I I always think it's it's really disgusting how much >> a little AI could get a lot of done work for the credit repair >> AI or people who knows in different places. >> How easy is it to dispute it? >> So it's very easy. They have to follow the the guidelines the FCCB I don't know the exact acronyms but they have to follow their exact guidelines but there's ways of once they dispute it and they have incorrect information they're required by law to remove it from that that exact line item from the credit report. So if somebody ever had with a lot of delinquencies, the whole line item would have to come off if it's a certain inaccurate information. So there's a lot of ways to get it off even if someone doesn't settle with the creditor. Like I had something that I had to pay Chase and it was um it was during that time where the rates went up and my accountant, everyone blames their accountant, the accountant told me just focus on your mortgage payment and then everything else you figure it out. I think I regret that that that part of it. I mean, I could have worked it out beforehand and would have had not have to deal with it later on. But the point is like I wanted to get it off for certain licensing that I need to get. So, you just you pay to play and you have certain people who write the right dispute letters. It's you basically bure bureaucratic. They're working within the bureaucracy of of credit repair credit companies and he's able to get it off and like it never happened. In fact, I had a bunch of these delinquencies on Chase, American Express. I went to go apply. This is a great story. I went to go apply with American Express. I got approved for unlimited credit with like with platinum which is right after like there was delinquencies paid off completed boom >> they themselves today. >> Listen to the story. Listen to the story. You love this. >> At a certain point um I acrewed a certain amount of points and like I like not crunch but I I could have used like an extra extra extra couple dollars. So you know like the reb some extra dollars. >> The real estate tax bill came. >> Exactly. So, so all of a sudden I'm like, "Okay, I have like 400,000 uh point this and that. I want to sell it." Fine. I sold it. I gave the guy the login. He's like, "Uh, friend of mine." He logged in. He's like, "What do you mean? Everything's delinquent. There's no there's zero points. What are you talking about?" I'm like, "Oh." I gave him my old login. I gave him my new login. He's like, "Okay, we're good." But it's amazing within American Express, if you delete it. >> On the credit level, it's gone. But on the actual American Express level and they only underwrite according to the credit level. They don't underwrite. They didn't look back at their records to see if I was delinquent because if they did then they would have seen that is it's still there. So the point is is like there are ways to get rid of these line items um and have it not reported and and still get whatever you need. So >> how long does a clawback on the commission go for? >> Generally it's at 12 months. Um they in the banks right now it's six months. So if they foreclose in six months, you still get your commission. >> I mean, I don't know if you could foreclose in such a short period of time. >> I'm saying if they stop paying after 6 to 12 months, you're still that's fine. Yeah, you're fine. >> So you don't have to feel too bad if you So do you ever feel like tell a guy you they want to buy this $10 million house, but they can't afford the payments, but you could somehow >> find creative ways to for them to get financed. Would you still push? Would you tell them maybe you should go for the cheaper house or what's your [laughter] what's your >> Okay. The number one rule is that I've never pushed a loan for someone who didn't want it. So, if they want it and I'm like, you come to the doctor, right, and the guy has has a certain need, right? It gives you a certain blood blood sample and you read it and you're like, "Hey, in order to get you you want to you want to be uh you know, you need the testosterone, you want to see like you write, you go to the doctor. I'm the doctor when it comes to mortgages." You come to the doctor, I'm going to write this the right script for you to get the right solution. You tell me you don't want to handle it, then I'm not going to push it. um do I ever tell people that it's too much for them if they if they could let's say qualify let's say a lot of this is a very good problem to have but some people are overqualified so I I speak to them I'm like listen you can qualify for a $3 million house but like he's like I only want 1.5 >> I'm like okay you're overqualified >> so for him I'm not going to push him to get a $3 million property but you know you want people some people are responsible in life it's okay and but yeah I mean I won't I won't push it on them will I suggest something I I'll tell them that most of the time if they could qualify and it's a legitimate qualification then they can handle it. It's just a matter of whether what what priorities is for them. >> In your experience, what percent of the people borrow the down payment money versus do they actually have it? >> I think most first-time home buyers unless they have uh PhDs, you know, Papzdo, they generally will have some way of getting it of acrewing money if if they're if they're large down payments. A lot of times they're from gifts. Meaning most people >> from the family members. When I bought my first house, it wasn't a significant gift, but I got some money from my mom, some my parents, and then some money for my in-laws, and they put push it together. Um, you figure it out. I put down maybe 10% when I bought my first house. My second house I also put down but because I was doing a lot of construction. So a lot of times yeah if you can if you can put down a little and have extra money to either pay down credit card debt with a lot of people have or pay down or have money for a rainy day it's very important that you know people save up for three to six months of of housing payments so that you have some some uh cushion. So if there's a it's a rough month or the payments come intiff you need to pay extra stuff you have extra money to be able to handle. So the answer is that you want to make sure you have enough money, but on the other hand, you can put down a little money. Meaning, you can put down 5% and have extra money on on if you're responsible with your money and not spending it, then you can have the money on hand. I I recommend that a lot if you as long as you you feel comfortable with the monthly payments. So the answer is that a lot. It's hard to put a percentage. Yeah, most of people are borrowing to a certain extent for first- time >> guesstimate >> for my guesstimate and it depends on the level of their down payment. But if your person does like a very small down payment, likelihood is that he's not getting gift. >> If you don't mind, break me down this Helock, this HELAC situation, home equity, home equity line of credit or something. >> I heard I always hear people saying that people use it as a piggy bank and they're taking out too much money and they're going to be paying mortgages into their 90s and they think it's a joke and they're making fancy construction jobs and it's all helock money. >> Heloc stands for home equity line of credit. It's similar to a regular credit card. If you take out money from a credit card, it ain't free. >> In fact, you pay a lot of fees. you pay a lot of interest even if it's uh you get transfer credit this and that the end of the day banks are not programs they are they are in the market >> cards are unsecured >> correct so have to pay it technically there's no >> there's no ramifications >> I mean at the end of the day as you said it's very difficult to to foreclose and to enforce it that generally if you're going to pay it you're going to pay it if you're not going to pay it the point is is that >> when you say if you have this great startup idea and you swipe all your credit cards you're not going into debt jail in the USA. >> It's true. >> Okay. >> The It's true that unsecured loans are are very high risk and that's why they charge a a very high interest rate, but uh to home equity line credit are a little bit a little bit cheaper. It's secure. >> Take away your house. >> Right. Exactly. >> Right. Yeah. But it's it's definitely the interest rate is a lot lower. It's like you know let's say anywhere right now prime it's usually connected to prime. Prime right now went up to 7% from 6.75 is usually a margin above what prime is been depending on your loan to value but how much equity you have based a credit score and and things like that. So there are now AI helocks which give very quick approvals. They don't require appraisals a lot of time there. You're paying a premium. >> You do helocks? >> Yeah, I do a lot of helocks. >> Is helocks popular now? So why am I super >> The reason why it's so popular is because people have these 3% rates on their first mortgage and they don't want to get rid of that because it's such a good rate. If they were to go transfer right now to a 7% rate, they're losing out. But if they just have a small piece of the pie with a higher interest rate and it's a line of credit where you could pay down interest, it's a little bit it's uh number one, it's mentally it's you don't have to give up a good rate and to to still do your needs. But I do think that that people are >> people want extra money and they want to pull out equity, but they don't want to refinance the entire house because then you're paying a higher rate on the whole house. >> Well, yeah, exactly. But you have a lot of times you have to you have to look at the uh the blended rate they call it. You know, if your blended rate is above the market, above 7% because the line of credit is $800,000 and you're and your first mortgage is $200,000 with 3%. It's not worth necessarily paying 8 n 10% if your blended rate is higher than the market. But people are using the line of credit because of the equity buildup in their homes for for construction or other things for investment. Um, I've heard some people, financial advisors say you shouldn't use your home for other investment properties because if the investment doesn't pan out and you're left with the left with the bag, you know, it's it's not like free money. You're going to have to um, so at the end of the day, lines of credit are are facilities basic basically using the value of the home to be able to to utilize it for other things. And again, the main thing is that the banks are not kind, you know, they're not they're not doing kindness. they're going to make money off of you. Especially if you want easy easy dye, you're going to have pay a premium for it. But they're easier because they're interest only and they're they're um the idea is you're going to pay it off. That's the idea. Most people only pay interest and then have huge payments. Somebody's about to buy a house and the husband and wife could comfortably afford a house $1.4 million, but then if they pay $2.5 million, they could have a house with two tenants. Two tenants. like, "Oh, now my mortgage will technically be even lower because they're going to be paying part of the mortgage and then in 40 years from now when I'm not working anymore and I'll be collecting two rents of four or 5,000. Who knows how much money rent will be then?" That's my retirement fund. With all the trauma and horror I hear in New York, I in Florida, you don't pay for 30 days. A sheriff comes with a shotgun. In New York, I know stories three years later. So to do things, you know, you make a kay, you know, you like going all the way. Do you buy the little Nebach house, you know, 1,700 ft², 1.4, or do you get the house 4,000 square feet, 2.5 million? And this is a sha coming up every day. People have the sha, but [clears throat] like what happens if people don't pay rent? You know, what are you going to the sheriff's not coming? So, >> and do you have to like take the 2.5 house knowing that you could afford it, but who could really afford it? You are relying on the tenants. I'm just wondering >> you get this question a lot. >> I think first you have to break down what the payments are for a mortgage. So for for in this day and age, let's just assume it's around $700 at least for every hundred grand. So if you're talking about a $2 million mortgage, 7,000 $14,000 plus tax and insurance. Let's say it's a,000. >> Okay. So you have $15,000. Now you have to break down how much was your payment before? You mentioned the 1.4 putting down $400,000. So let's say it's $7,000. So, is that incremental additional $8,000, is that equivalent to the additional tenant that you're going to get? So, if it's not, you're end up paying a premium. So, if those two tenants are not if that additional if you had one tenant before and that additional tenant is not equivalent to the 8,000, you're paying a premium or on a so on a financial basis, it wouldn't make sense just to 2.5 to have an extra tenant. Uh, but if you feel comfortable with instead of paying $7,000, um, you're you're expecting to be able to handle 13 or 14 and you're like, "Okay, I have an extra credit because I have the tenant in there." So then you're okay. >> Question was, how real is it that in New York you or New Jersey, I don't know, in these communities where you'll get a tenant that's not going to pay that could really is that as a deciding factor to take get a house with extra income or not? Listen, I think uh I took the one of my advice when I went to NYU, I g I drove back one of the professors and he said I said, "What what do I do to get into real estate and this again this is like 2013 2013 and he said to me that you get in like what all the Israelis are doing, buy one or two families, you do a little work, either you rent it out or you sell. That's how a lot of people build build their wealth." Now, if they're worried about what the tenants are going to pay, they're never going to get into buying a house. >> So, there has to be you have to go with Dar Kav like what is I don't know if you have here but you have to be precautious. You have to be you have to be understanding. Don't learn from everyone. Learn from your friends. What what are people doing? If if you feel that you won't be able to handle the pressure because the tenant is not going to pay them pay the rent, then maybe it's not for you. But it's sometimes buying a single family is much less stressful, but you don't have that extra some you don't have that extra rental income. So >> yeah, I had an art gallery for a bunch of years rented and I subleased a bunch of the space and one day in my biggest tenant. >> I remember I remember >> for two years. >> I remember that terror. [laughter] >> That's why they say retail is one of the highest um mo most difficult things to get. >> Oh, thanks. You got to get to get financing because of the the amount of space that the tenant has to occupy. And if they don't if they default, then you're up the creek. So in other words, the larger the tenant, the larger the space, the more and the more money they're paying if they the higher risk. So when you have multif family, for example, and you have >> Have you ever invested in real estate or? >> Not really. Working on it. >> You just pocket the commission. That's it. >> Exactly. Exactly. >> Is now a good time to buy a house? >> I always say it's a good time to buy. [laughter] I I I think that like I said before, I think that you have to be real with what whatever your comfort is and you have to figure out what you can handle and what you what your family can handle and if it's uh if it's worth it. Again, it's not an investment. So, you can't just say, "Okay, what is my appreciation going to be on a year-over-year basis? 4% is it going to work out? And how much I'm going to be able to cash out in year five?" you know, it's not it's not like something that you're that you're doing using the tools that are available such as like interest only and seeing if those payments make sense or the three-year buy down with some of our key lenders that have their interest rate lower by by 3% in the first year and and consequently different years. If that works for you, then I would say go for it because again, most of America became wealthy through the home ownership. people that bought 20 years ago when the rates were or 15 years ago when the rates were 8.75 they're sitting on gold mines you go everyone in Crown Heights when they bought at pennies and by 770 and and now nowadays they could cash out 2 million 3 million $4 million >> minimum >> exactly so you ask a question if you ask them back then what is it worth it they'll be like no it's we're in slums you know the rates are 10% um it it's always it has to it has to feel right and I think God God guides you. If you want it, then you'll make it happen. >> You mean rates are going up, down? >> Right now, in the short term, they're up, but I have still people buying. People are are in contract and people are taking money out that need to pay higher interest credit that they've taken out before. So, you know, people there's always life events. Are >> we in a buyer market or a sellers market right now? >> I would say it depends on the market, but I I would assume it's more of a buyer market now based on the >> in Brooklyn where like probably area by area, right? Every area is different. Yeah, for sure. >> Brooklyn is >> Brooklyn is buyers or sellers. >> I'm asking you. >> Depends where in Brooklyn. I think every single And it depends on the pricing. You know, if you overpric it, then it's going to be hard to sell. If you price it right, then >> I ask every business owner, would they want their kids to go in their footsteps and do the exact same career? Do you want your children doing mortgages? Because the hours probably are crazy. I mean, you work for yourself. You're independent contractor, >> right? But I mean, you don't want to say no to a client. So if they tell you, "Oh, I have this property." And they message you at 1 in the morning. I'm saying, "What do you what are your guidelines of how many hours a day you work, how far you travel to see your clients, how crazy do you go?" >> It's a great question. So I would love for my kids to to be learning all day and to to supporting uh and while they're supporting the Jewish people and others and and spreading the love rail on everybody and and all that good stuff. >> Um >> you can't wear it all day and wrap on film with everybody. You know, we have the Kabad guys do the fill in the push guys wearing. We can't We're trying to make a blend. >> I think I think if you're I think that it's so funny you mentioned about 1:00 in the morning. I think that every single client who needed me to be let's say jump through hoops and go answer the call right now never pan out. I don't know why it's like that. It's like because they don't care about your time. They never care about your time and they'll waste your time. I've had clients were like stop what you're doing right now. Send me the rate lock disclosure. I'm and like I do it 17 times. whatever he does like you jump how high you know I jump high and then how fast running running and and he goes dark and he never never responds after I was hurt and I'm like what I don't know what I did wrong you know up in the >> customers on clothes >> a lot of times yeah if they don't respect your time they will never respect it was it's time and time I don't know what it is I've done thousands of loans and I can tell you each time with these clients I'm like this is not going to pan out and I see it time and time again I have no idea why >> and you don't and you just don't stop you don't you just always you know you give finish that. You never you never say I'm not answering you guys call, you know. >> Yeah. >> Yeah. At this point, you develop some instinctual uh >> do you know who's serious? Who's >> there? There are times if I feel that they're not for real. I'll archive it, mute it, and then like when I get to it, there have been people asking me rates for the last 17 years. They haven't have never closed on a deal. Like, why are you care about >> closed on a deal with you or with anybody? >> One time like 12 years ago, I closed on a deal. But why are you ask me rates every single day if you're not like what how does it help? I I send them I send them like random links of [laughter] of rates to give them pleasure so they could >> Why don't they go to Google? Why does it call you? >> Maybe they're not. Maybe it's on this, you know, tag phone. Yeah. Yeah. Google's user chat GBT, you know, it's it's not it's not easy. [laughter] >> How much different are the rates that you're going to find on Google Chad GBT versus you? It's probably within range. >> They're they're they're u they're always like market data. So you have a market in the middle of boondocks. um, you know, South Dakota and you have people in Manhattan and so a lot of times there's unique programs specific to different niches. Now, when it comes to like Fanny May and Freddy Mack, they'll have averages. So, you never know. You have to really speak to um, a professional that sometimes there are banks that have niches and specific products that are able to give and it it really depends. But, it's a very good question. I do say like you look you could follow the rates based on the 10-year Treasury and your program. the 10-year Treasury yield is the biggest indicator for mortgage rates. So some uh mortgage Fanny May generally is like about 2 and a half% above the 10-year Treasury. So if you want to know what the 10ear Treasury is, if today is 5.3 and it's two and a half percent, you're talking about 7.6 and you look at Fanny May's website, it'll probably be right there. Now some people, some banks like what I make less than two and a half like that margin is is less than that. The spread is less. So therefore, I could offer 7% So therefore, it's a cheaper interest rate. It all depends on the lender and it depends on the program. So, but it's good to follow the data just like following your credit report and to make sure that there's no inconsistencies. But working with a professional is going to be in your best interest, I think, is the is the main thing. >> Do do banks like I see these people in food service and welfare and suddenly one day they buy a house? How does that work? Could you uh give some insight? There's no relevance between people's programs and being able to qualify for a mortgage. They could have zero income and get a beautiful mortgage. Again, a lot of the the loans that that are we're doing is the bank statement programs. Most of my deals in the last year or something called nonQM, non-qualified mortgage, meaning doesn't follow the regular Fanny May and Freddy Mack mortgage lending platform. Meaning it doesn't it's not based on their tax returns. It's based on the cash flow of the business. It could be a 1099 they get at the end of the year. they can get um different programs. So therefore, it's it's a lot of people who are on food stamps may have a successful business and therefore can get easy deals. You know, they're they're rock and rolling and therefore they won't show income and therefore they could qualify for the stamps. A lot of people do the stamps under their wife's name. I don't know what they do. >> What's the biggest loan you ever closed? Really? >> Um probably it's about $5 billion. It's it's honestly most of them 99% have been sub3 million. uh meeting I would love to do it's not necessarily you make more money with bigger loans normally make a percentage of the loan amount but certain banks cap it based on based on commission size unfortunately there's uh there there's there's caps on different things and most people who are in the bigger bigger luxury properties are not borrowing that much if they have they're borrowing such such a high level property they usually have large down payments >> so if a guy's buying a $70 million commercial property residential or a a All the if the transaction price for the property is $70 million, you're saying there's not $70 million being loan, a lot of the times it's billion dollar companies that are just paying it out cash. >> No. So for commercial, they'll try to maximize their their leverage and but and they do get a percentage of the loan, but a lot of times the broker the negotiating broker is not is not going to be a they're not going to be able to charge 1%. >> You're saying you can make more money doing a $5.2 million home traditional mortgage than doing a $70 million commercial property? Yeah, the possibilities are Is that why you would never board into the commercial market? >> The reason why I'm not in the commercial, I got involved a little bit, but even though I went I went to NYU and I was dealing a lot of my clients are real estate owners and they're self-employed, God just reminded me, keep in my lane. I I was working on $75 million deals. I had Lois, letter of intent signed. I had due diligence and for whatever reason, some certain variables that are without our control just pulled out. So, I just got reminded. I mean, I'll sprinkle a little bit, you know, effort over there. I sprinkle over there. The end of the day, we just got to keep in our and I and I saw from post like during the co when I was making so much money, you don't have to change lanes to be able to make money. You could do money in anything. You could sell airplanes or sell pennies. You can still make the same amount of money. >> In the beginning, in the beginning of the interview, you said that um people do business with family. So, you have to have your clients feel like you're their family, >> right? So 15 years later, are the majority of your clients from a yidden or do you have some? >> I think so. Either that or Oh, yes. I would say the most repeat clients are from the the referral partners that are that are that are most most similar to me. I've done I've gotten deals from the most secular from the most non-Jewish sources and those were one-offs. Like I would say that they I closed the deal and that was it. It wasn't a repetitive business. So I would say the the comfort and the the family feeling the repeat business. But on the other hand, like I would contradict myself because right now I'm pushing a lot with in the entire meta Instagram type of space where they have no connection to me other than my video and and a post. So I am tailoring I'm I'm actually exploring more more of those venues. But through that, like we talked about videos and and instructional stuff and and people feel comfortable and then and then getting connected to them. So the best type of business that you build organically is through the the family on a on a time to dayto-day basis. It's very hard to do that. There's only a certain amount of time in the day and you can't clone yourself. I would love to clone you, but I can't. You know, >> you said you've done thousands of closings. give us like one or two like crazy stories or like you were at the you were at the closing and the bank didn't backed out and or like or happy stories crazy stories like somebody was you met a closing and the person went into labor with triple you had twin like give me some any crazy stories. I had I started I just when I just started out I was working at Cross River Bank and I remember it was so hard to get the deal closed and I we finally got it cleared to close and he closed and the day of the closing they called the the employer because they were buying the loan. They closed the employer the employer said no he lost his job and he just started he just started that job like he lost his job like 30 days before. It was like a whole thing to make explanation of what he was doing. He went to school. He got his graduate degree and he finally got it. But he ended up having to f to to to buy the loan because at the end of the day he had the loan at the time of the closing within 12 hours. He lost it. But like and that was a crazy story. Um I've had I've done loans for uh MVP like superstar um players in in I can't say the name because the financial adviser said I can't, but I've done it for people. I never spoke to the client like it was just the financial adviser. And that year he became an MVP in like 2013 and I was I did the loan and I said because of me that that he became so successful. So >> he had a big house to go to every night. >> Yeah. Um other deals I mean >> any scandalous deals? >> Yeah. He said the guy took up the Dunkin Donuts and >> No, like fake income, fake jobs. How often does that come up? >> Very infrequently. >> People don't try to play those games. They >> I don't really I don't I do everything really honest. I don't I I don't really like doing with um with guys that don't that don't report or don't try to get out of it. Um it's it's very it's it's easy to to get into that train of thought, but honestly, it's just you want to sleep at night. So >> like the people you see go to jail for mortgage font. What is typically the type of >> they had something where they where people have like a certain LLC and then they backdate the LLC to be able to qualify for the for the mortgage because based on you need to have six months of seasoning but if you want to refinance a property you want to take money out the bank says hey you got to own the property for a certain amount of time. Now, it's very easy if you have an LLC, you could just write a previous date and a signature that states, okay, this was ownership is by X, Y, and Z, and therefore it has six months of seasoning. >> I think I watched a 60 Minutes or 2020 episode about a mortgage guy that went bad. And basically, he was saying that like he he like saw people going through the whole process of applying it and this and then he's like they're off by a few thousand dollars quarterly. So he just took a white out pen and he like filled in like one or two little discrepancies and they got approved and 99% of the time they're able to pay the mortgage and he gets his commission and then like the next time it happens he takes out his white out pen and fills it out and then it becomes just a trend of getting everybody approved and you getting you get you test then you get bigger and bigger you get more you know >> yeah it's it's uh >> once you go down that route it's over I mean every deal you sugar coat a little and >> right so people people um get a little too aggressive uh you Yeah, >> I'm massaging the numbers. >> Yeah, it's it's a big problem. I mean, people that do that, I think it's better to be safe than sorry. And I think that uh the end of the day, I tell this to people, if your occupancy is incorrect, you could literally go to jail. I don't want to go to jail. You don't want to go jail. >> What does that mean? It means if you're not occupied, are you serious? >> If let's say if I had somebody called me actually occupancy, >> if you have a building with 20 units and you say they're all rented and they're all not rented, >> right? A client actually somebody called me and I think it was in St. Louis and he told me a crazy story. He told me that when he bought the house, he needed to claim it as an investment property to qualify. We talked about at the beginning investment property. I said, "Did you ever um rent it out?" No. He's like, "I lived in it day one." Okay. I said, "What happened to your He was telling me about his mortgage issue. What happened to the mortgage?" "Well, I didn't pay the mortgage during COVID and this and that. I I haven't paid my mortgage for 12 months, but I wanted to pay it." I was like, "Okay, you're opening up a Pandora's box because you had clearly stated that you never moved into the house. You you moved in day one and you claimed it as I was like, I would." He's like, "Well, let me I'm going to go into court with them and dispute whether um you know, I owe them the money that you could do that, but you're basically putting yourself in the limelight of if you're going to if you're going to if someone's going to default, you got to be you have to be really really squeaky clean. Don't ever miss the payment. You know, >> why should the bank care if it's owner occupied versus an investment property? >> That's a good question. U the answer is because that's if they don't if they're only reason why they're qualified is because of the how they how they uh positioned it, then the only reason why they qualified is because they have rental income. If they didn't have rental income, they would not qualify. Why does VA care? Because the guy is defaulting right now and they want the house. >> It's high risk. It's higher risk when it's owner occupied or less risk. >> It is higher risk. usually it's priced higher um >> or so sometimes you would say that banks like it when you call it investment because they make more money but at the end of the day >> they don't because if the guy defaults then it's it's it's harder to um he's not going to be able to make the handle the payments if he doesn't have a rental income the only way he was paying the mortgage was because he was saying it was rental >> there's alleged rental income >> right so I said if people are going to do fraud you got to be careful >> or [laughter] they probably shouldn't do fraud right >> yeah probably. >> No. Um, income I think we talked about credit a lot which we people could work on. Income is is something that also could be worked on. We talked about different types of loans but people right now like let's say 20 25 you could really show higher stronger income if you needed to and qualified for a full doc loan. Now it may not be worth it but you should know the opportunities. Sometimes the certain loans you could do one year tax return instead of two which allows you to not need two two years to average but rather just one. So it's it's important >> if you're having a good strong year now you can copy and buy. >> Yeah. You have to pay taxes you know income tax. So you have to ask a question. You have to ask Shila >> appraisals. How does that come into play in who who appraises? The borrower the lender or >> the lend the lender always orders the appraisal. They have to we use it for certain approved uh approved companies. We do appraisal management companies. We don't technically allow us to we're not allowed to speak to the appraisers directly but uh we generally will use people that are familiar with the with the area and we have good companies that that are familiar that will use good people. In general they come in at purchase price if anyone needs you know certain purchase. If it's on a refinancing, it's a little bit harder, but you could speak to like the appraisal management and they could guide you >> work with the appraisal, >> right? >> But most appraisals come, you can put in the data. You can just put on a website. What's this? >> Right. A lot we have these data you just like Zillow, you have appraisal valuation systems that you could put in. We have House Canary has it and there's a lot of different different uh systems. One of the things you talk about appraisals is like if you're buying a property multif family, two or three units, you could use 75% of like say the market rent if it's not rented out or the in place rent, whatever it is. So therefore, you could use that additional income to help support the loan. A lot of times in Brooklyn that helps us get get the loans. >> Could you speak on to fighting real estate taxes? I know that New York City is not a thing so much, but I know outside >> in Long Island, people who are are clergy are able to get um house the housing housing there's two there's taxes are comprised of of the county and like and the public school taxes which school taxes is the majority of the taxes which is a beautiful thing if they're a lot of times the Jewish communities they're not benefiting from the school per se they don't send their kids there so therefore why should they pay their taxes so they get the um the clergy discount every you have to There are attorneys that that focus in on that. >> I know my brother bought a house in West Hamstead and he said he had to either hire attorney did it himself to fight you have to fight the taxes every year or something like that. >> Yeah. Yeah. Yeah. >> Is that also in New Jersey or just Long Island then? >> Yeah. I don't I don't see in New Jersey but I would love that. >> In Crown Heights there's a huge scandal going on where people that have like big beautiful homes are paying like four five six $7,000 on property tax. people that have small condos that have like a 25 year tax abatement, they're paying like 15 $16,000 >> on their um property tax. >> How did that happen? >> I don't know. And a lot of the people literally can't afford it. >> Yeah. >> You know, there's like I think it's like the grandfather in type of situation in New York City where the numbers don't really have to >> the numbers make no sense. >> If you didn't renovate the whole thing, if you gutted it, it depends how much you renovate it. >> Yeah. One one of the things is I would say when it comes to qualifying or being able to handle the payments, banks will give you a lot of times up to 50% of what your income is. But financially, you probably shouldn't do that because what 50% means, let's say a person's making $10,000 a month. >> He has to certain amount of expenses for doctor expenses, clothing, family, clothing. Yeah. Food, >> tuition, whatever it is. So, you have to you have to realize at the end of the day how much you left with just because the bank >> 50 cents. >> Just because you're just because the bank will give you $5,000 of a mortgage payment doesn't mean that it shouldn't necessarily be the right the right move. Um I think a lot of people someone asked me recently how do people handle it if they're W2. I said don't be don't be W2. Meaning have a second job. You know this guy Gary Vaynerchuk, he's he'll he'll tell you >> reb keep the nine to five and do the five to nine meaning keep your your your the payroll strong. >> Dave Ramsey was telling everybody, "What do you mean you can't work more? Why are you on the phone? Why are you not delivering pizza, [laughter] >> right?" He's interesting. He's like, "Yeah, no should have a mortgage." And he has like he owns a mortgage company, you know. [laughter] >> Really? >> Great. >> Of course. Yeah, of course. >> If he would he doesn't understand the Gisha lifestyle. He doesn't understand the 25% % >> do big take consideration when dealing with from people that there's bigger expenses and if they deal with other families tuition >> that's that's the beautiful thing >> they don't >> no >> let's consider religious discrimination or something >> they don't cop it they don't cop it >> it gives them more flexibility because they don't have they don't take into consideration the tuition expense they have I normally tell people straight up if they have if they're making a certain level of income you usually can qualify for four or five times what you're making I mean it goes down to the breakdown of we call it debt to income but let's say someone's taking $20,000 a month or let's say $240,000 a year. The bank would normally you probably could get easily a million dollar loan because what happens is you take the $20,000 a month. The bank will give you let's say $8,000. Okay, $8,000 minus your credit expenses like car payments, minimum credit cards, things like that. Let's say it's another $2,000. You're left with we said $8,000 to 6,000. Um so therefore you have $6,000 to pay. That's about a million dollar mortgage, right? Depending on the rate. So essentially, you can get about four to four depending on your on on that that credit situation and someone didn't have $2,000 a month, only had $500, they can get a lot more. So it it so if you were to ask four or five times what you're making, now you could use a rental income from the second unit and you have a little bit more juice to play with >> because you talked to pre-approval. Preapproved, what does that mean? Does it does it go on the person? I know a lot in the hot market, the sellers have the upper hand. They don't want any mortgages. They want cash only. But I know there's non-approval status of a person, >> right? >> And he's preapproved. Is he really a pre-approved? Is that on the person or on the property? >> So, yeah, that's a great question. There's different levels of preapproval. Normally, it's a piece of paper you could use for the toilet paper. >> Oh, I thought you go to the bank, they look at all your paperwork, and they'll say that for a one family, you could get uh 1 million. For a two family, you get one five or something. >> So, really, it's really comp composition or compilation of the three things we talked about. Credit, income, assets. If they didn't verify that, then it means nothing. So you could just you could wave it all. You could you could go on who who who knows what you know google.com and you could ask for a pre-approval and they'll give it to you. You know what's your name chatbt and you could put it out you know it's not very difficult to do it but >> as a seller how would you know if someone's really approve >> so what I tell people is that you get the something called a US automated underwriting special which basically it's approved with Fanny May and Freddy Mack. You have basically a commitment letter in hand. The only thing you need is an appraisal, you know, and title. >> It's not it's not on a pre-approval. It's a commitment letter. >> It's like a commitment letter. But pre-approved means that the the bank underwriting reviewed the the income, the sources, they reviewed the assets, they reviewed the credit, and everything. >> You don't you make money. You don't you're not encouraged to write these pre-approval because you don't make any money. >> It's part of the It's part of the uh it's part of the onboarding or or you go through dating, you know, you got to get the first date before >> because you're not making money until you do the loan, right? So how long has that process taken? Is it worth it for you to give pe people pre official really authentic? >> That's a good question. I would say the the cycle on average probably is six months. You know it could be or it could be it could be even less. It's not like a cash advance that you know writing a qualification closing tomorrow. >> Are you interested in doing pre-approvals or not really? >> That's that my goal is to write let's say five pre-approvals a day because that what happens is it >> is and they're real pre-approvals. >> Real pre-approvals ones. You get their full credit. You get their full income. get assets. A lot of times you get gifts, so you don't necessarily have that, but you know the source of where it's going to come from, how much they're going to be getting, and that it's kind of buttoned up and they have it proven that they're going to get that. >> Whoever are collecting money to buy a house, they get a gathering from all their friends and relatives. They get >> they go fundraising. Yeah. >> Fund the quarter million dollars, right? >> So my friend was doing it to get a house. And he's telling me that it's not so simple because the banks get very nervous. Very good. Very good. So he's like we're send we're sending it to one of my brother-in-laws who he is the collector and then he's doing one big bank wire and we're getting a letter from the bank explaining so what's Fanny May Freddy M FHA they all require gifts to be from family in order to use it. So if it's income it's fine if it's like employment related but if like revenue in the business and you're using the business account but if it's if it's just coming from people they want to make sure that it's not a loan. Generally, random people are not writing checks without having to get paid back. Despite popular opinion, people are not going to get money from random people for $100,000 and have no repayment. So therefore, in order to absolve of that issue, they give it to um a somebody who's a family member and they know that's not going to be paid back. So that's that's that's what people do. Sometimes you can get employer to give a one-time um let's say housing moving type of you know onetime bonus and I've seen that works as long as it's really buttoned up but in general yeah it's very big people have said oh get it from this this 501c3 and the problem is no one owns a 501c3 so it can't even if you're related to that person it's you really have to you're not really able to show that he owns it because nobody really owns a 501c3 it's owned by the congregation >> by As a commission salesperson and your real estate tax is 28,000. I'm assuming your mortgage is I don't know 10 15,000. How do you survive the the the down months and the up months? Not the down months, not the up months. But I can't really uh you know how how does God survive it? You know, it's not my problem. Um how do we do it? It's it's it's really it's really crazy actually. You got multiple sources of income. You got to just keep pushing >> other stuff. all the business lending, you know, because of my relationships with a lot of different brokers. I help them with uh with relationship with the funding company, but I'm not really involved with that super super in like a very very high level. Uh but when when things are when things are tight, you just get scrappy. You get you figure out >> because you're somebody that's involved in real loans, kosher normal loans, home equity loans, homes, mortgages. What's your opinion of the cash advance business? >> I think it's a scam >> from A to Z. I think uh I think they take advantage. Someone asked me a question, how do people survive with 40% loans? I'm like, you don't even understand. They're not 40%, they're 200%. Because they're three months and you compound it by four four times. Three months is a year. So it's 40 times times four, it's 160%. And then they have all these fees and this and that. Is it a scam? You know, I always say that the muscle of someone who is a pizza store and and their their pizza oven breaks and $5,000. saving the guy by giving them $10,000 and they pay back they have to pay back 10 thou they they have to pay back an additional 10,000 so they borrow 10,000 they pay back 20 so now they they they survive but the question is how long can can they survive and it's really like drugs like how much drugs can a person take in to be able to and survive so it depends how quickly and how much they're taking so if they're taking it heavy every day acid is going to you know wear them down and it's not going to be good at the end of the day so some people could take it as infusions for their business longterm unless they pay it off somehow. I do that a lot now. Just uh somebody cash out $2 half million dollars to pay off five positions and to be able to pay pay off whatever they needed uh with the P&L program because their bank statements really were not good because they were defaulting. The point is like take out a good loan, nice 30-year fix and be able to start again. That's really a better path than taking out cash advance. Problem is people are desperate. People want to hit payroll. If they don't have payroll, then they're not going to be able to survive. Their their employees are just going to leave them. So they get a line of credit from bank could take two three four six right SBA loan takes a long time >> and probably the percentage of of people getting approved is probably like 1% like >> and also they're and and also SBA their rates are not like 11% and they take a lean on your on your house >> and it's floating right >> it's usually it's connected to prime two and a half% plus prime prime right now is eight is is you know 7% they're they're at 10% it's not like it's free money anyways the end of the day when you borrow money it costs it's it's and It puts a hamper on the business. So if you can't survive, got to squeeze and maybe cut down expenses. I wish I'm speaking to the to myself, but cut down expenses and then and try to it's just it's like a hustle like you want to 10x your business. So like they definitely got Grant Cardone like you could either take mahoot, you know, you could take out discounts 10% or you could try to focus on 10x your business. So a lot of people are entrepreneurial will generally on the offensive and try to take out money, be aggressive, be able to do it. Now, it's like it's always uh back and forth whether it's not it's a good thing, but it's uh you have to kind of you don't know and you got to take take tests and and see if you pass them. You know, it's it's hard to know what the right thing is. >> Is it is there less social pre pressure living in Highland Park versus the five towns? Is it easier to live there? Keeping up with the Jones is a little easier. >> Yeah, that's why I hang out in your all day with the boys and keep the pressure high. Um, is it? Yeah, it's lower pressure, but I create the own pressure myself. You know, you wake up in the morning feeling feeling good. You gota push. And >> you work in an office or you work at home? >> I have an office in in Lakewood. I have an office in my house. Um, I used to have an office in Lawrence, but when after, you know, commuting every single day, it's it's a lot, you know, with the I whenever depends on my meetings in the city, Brooklyn, I'm always open for satellite offices. You're hiring, are you hiring other brokers now? >> Um, we're working on that. Yeah, I'm working. I have somebody I have a whole team that I'm I'm like bringing on um to to help support support support me and um I would love to to expand that, you know, in other capacities. >> Can you talk about the sign up bonus? You mentioned before on the side, but what does it mean when you have a good booking business? the brokers know the brokers or banks know that you I don't know produced 20 million loans last year what will banks other banks now try to poach you try to get you what will they type of money they will they offer you and should someone expect >> oh that's a good question if someone closed let's say $75 million of business this is I don't know what the story is right now >> right >> because I'm not in that market but people they would give let's say the equivalent of 1% of your business let's say to to to it. It actually depends on the type of business like every single bank has different focus of what they want their core business to be whether it be conventional or jumbo. >> You said you work with he works with many banks. He works with many banks, right? So if one of the banks you're giving $10 million a year in loans, they know that you're probably going to 20 other banks and they would rather you only come to them. So do they ever say, "Hey, I want to spend send your entire family to Hawaii for a week." That's a good question. >> You'll increase the amount of loans that you give them. signing on bon if he moves let's say from citizen to wells Fargo what you said 1% of your business takes again it depends on what the core business they're looking for >> if somebody only works for citizen or wells Fargo what will they give them to leave >> let's say let's say uh Joe Rogan says clappy I want to hire you away from clappy frank [laughter] and the sign up bonus to join my network >> I keep declining it's gold you're saying I should pick up >> I'm I'm not saying anything so you're saying 1% of your last year's book of business >> it's not a book it's it's like it's the They're not buying that. It's not like you have to be here for a certain amount of time. They want to take you for, let's say, two years with a guarantee that you're going to work there exclusively and they hope that you're going to make that money back. But again, it depends on their core business. Let's say um certain banks want just jumbo business, but your book of business you mentioned is different types. It's conventional. You know, they're going to see that on the record. Okay. This is not does not fit our >> for the people that that want you in their company. They can offer you 1% of your transactions >> probably. I don't know. nowadays is the market has completely changed. So, the landscape based on the the I don't think anyone's throwing out free money now. >> Do you think >> last time I checked? >> Do you think [laughter] they'll create a search engine like Kayak or Expedia to get a home loan? And just >> they do have they do have it, but it's uh if you if you fill your information out, I say you have to you have to change your phone number and change your social security and maybe even your blood type. >> Explain. >> You'll be telemarketing. But you have when you if you run your credit on any of these um search engines, you're going to have like maybe one or 100 or 200 loan officers calling you non-stop and texting until like you think that getting those raffles for the for the Rolex raffles are bad. You know, like >> there's no website yet that offers that to search loans for you. >> I don't think >> that's legit. You're saying it's all spammy >> regenerated platform. >> You never know because a lot of these You ever heard of teaser teaser rates? Yeah, >> a lot of them are they throw out like >> 0% interest like it doesn't it doesn't there's nothing it doesn't make sense right >> but people get triggered excited there are a lot of compliance things so they do like APR APR stands for annual percentage rate which is usually like >> a ton more than the actual note rate which means that you're basically paying a billion dollars to get that rate and like okay it's a slow rate it's a low rate but you're paying a huge premium usually they can't even write that loan because [clears throat] of the high cost so even if have a search engine, it's going to be very difficult for to see if it's the best deal for you. And a lot of times I had a client that did this old search engine was like, "Okay, we need this rate." He didn't end up qualifying. He ended up filing his tax returns. They had this that's a good story. He uh he filed he we had 24. It was great. And then all of a sudden, we're like, "Okay, coming to the deadline of 25. He's a he has he's approved. He's ready to close, but we need a 25 returns." He sent it in. He dropped his income by like $100,000. and and he wasn't able to qualify. But it was good because we said, "Okay, fine." We got a bank statement program. We could do his cash flow of his business and he'll be fine. We try to figure out co-signer like the end of the day didn't work with the full doc loan and we got we made it work with the bank statement. If you had went if they had gone to that online thing with the best rate, they would be like, "What are you talking about? You file your tax returns. Sorry." You know, >> mortgage is too complicated to do a little click click. It's not you're not booking a flight, >> right? Yeah. And even as as much as I said like I wouldn't take a phone call at one o'clock in the morning which I've done most people are not 9 to5 meaning you have to be available after uh regular time to be available to answer any questions and to um to get on phone calls whenever needed. So you're going to talk online robot you know it's not going to really help you. >> What's the lead time from someone picks up calls you they get a response of what they could be approved for? What's usually what should someone expect time? Um, that's a good question. It depends on how urgent it is and it depends on what they're looking for. If they're just like searching for random questions, they have something specific that they're >> If they're looking at specific property, how quickly could they get? >> It could take as little as 10 minutes and they >> 10 minutes you get approved >> everything. Yeah, it doesn't take long. >> $2 million. >> It doesn't It doesn't take long. It's just running like >> I waited longer online at the Sperm store today. [laughter] >> Like four people focus. You take enough aderal. You got you got you sit down for five minutes. Most of the time it's a phone call. I discuss exactly what they have money. Sometimes they don't know. So if we run the report, the credit takes 30 seconds for us to for us to get it once he has a name, social security number. >> In 10 minutes you get all the info. >> Again, it depends if the guy's organized, you know, then he has he has everything in >> closing time. What does it usually take to close on a house? >> Usually on a on a on a contract is usually around 60 days and in New York it's owner about which means that they have the seller could do 90 days. So >> how long does it take? title a week, two weeks. >> Somebody told me title insurance is the biggest scam since God created the world. Can you tell me about the title insurance thing? >> Title insurance is >> although we did speak to a guy that's big in title insurance and we do want him to come on the show big big personality and when he's on the show we'll discuss what's going on with title insurance. Is it a scam? >> The only reason >> tens of thousands of dollars for a few >> It's around $500 for every hundred grand in a purchase price of a $3 million house. >> Crazy. $15,000 just for premium >> sugar. >> What does it do? It they all they and the funny the funny thing you mentioned about scam is that they actually don't insure anything because they have insurance companies that insures them. If there's title, >> do you know what they do? Because if there was a question of the title, yeah, the name of who owns it. Then they go, okay, you claimed that it was okay. Do they go back to that guy? I've had one time in my career that they had some claim about a certain area of the property and they had to go back and forth. I don't even know. I think they settled at some point. So, no one takes any responsibility. So, what what are you paying for a mandated thing that all the states require? >> So, they probably have a great lobby. No, >> you know, that's like people pay mansion tax. You pay a mansion for a million dollars or more. Co-op, condo. What kind of mansion you buying for a million dollars in Crown Ice? >> Yeah. Shoe closets, >> maybe. So no, like it's just it's just free money to go to New York. >> I heard promoted they were doing a scam for a long time over a million you pay a certain thing. So everybody's paying like $9.99 like money under the table and all types of >> course people Yeah. But the other other side is like someone's like they're going to buy it for 1.2 but they're going to do $9.99 and the contract is save they think they're going to save like $50,000. I'm like do you know you're end up paying a huge difference in the only is 1% is of the total purchase [cough] price. So total purchase price is 1.2 until you're paying $12,000. >> How good is this stuff? Huh? >> Sick. [laughter] >> So 1.2. But if he has to pay down to $999, he's got to pay $21,000 out of pocket. Which is more, $12,000 or $200,000? 12 or 200? Would you rather pay another $188,000 so you can so so you could save 12,000? I mean, like it sounds like a great investment, huh? I mean, uh maybe I guess if you have like a 2% return, like you can't make any money, you know, you just want to throw money away. People don't realize they're like, "Oh, I thought it was $50,000 I'm saving." No, it's just 1%. So, >> but is that that man that mansion I say like you're giving it to New York. New York is like, "We have a house in New York. We're giving that." >> So, in general, banks are eager to give loans. What's is it like I like you, I do? It's What's that? They want to give loans, but they don't want to get burnt probably, >> right? I just saw a pullback recently, the secondary market not wanting to buy certain types of loans. People that are uh more high-risisk type of loans, they're not making as many exceptions. So, but I do see lenders are calling me every day. They want loans. They want loans. They want loans. They are there's so much money that the banks have on hand that they have to there's like a cost of not lending it out. Think about it. If they're getting money, they're paying somebody how much in your savings account for 0.01% 01% and they're lending it out at one at 2% then they're making money. So if they lend it out at seven or eight percent because the market they're making the whole spread so they're happy. It's just a matter of with the banks right now is a big problem is that they lock people in at 6.8 5% but the real market rate is 8%. So they lost that whole margin. It's not like they lost everything but if they're balance sheet let and there's they're making more of a spread they lost that spread. >> So they want to get loans at the new rate >> right? They want to they want to issue new loans at the at the current market rate. So having raised >> I'm hearing a lot that American families are competing to buy regular residential homes in residential communities with trillion dollar banks. These companies are coming and just buying out all the homes. So you go to a showing it's you, Mrs. Goldberg, Mrs. Freedberg, and then some like companies trading on the stock market and they're capping houses. You know why they're there's a big yes soda big foundation of >> Trump spoke about him stopping it although it's not capitalism >> I'll tell you why why is it so why do the big companies like residential so much because there's always a imbalance between population increase >> and housing supply if you think about it in Crown Heights there's way more population increase than the amount of houses are not being created in anywhere close to the the proportion of the if you go to the five towns today they're trying to create some condos some town houses but there's such such a big need that it will never satisfy the the need. So therefore even if the mark even if the rates are higher the market will demand the still a high price because of these these the population and and the economics of it cause the the the the actual pricing to continue to stay high. So that's the reason why the big companies like residential because they understand hey people want to have single family h homes and people are there's always a need for that when you have these multifamilies a lot of sometimes in the boonddocks they have a lot of rental vacancies because there are not like serious markets they're not A+ markets and there's not not every >> good jobs >> good jobs and so there's like a big problem but I would say in good good markets with people a single that's how people make money and people um want to have those types So in the market >> and those those funds they buy, they hold, they flip or they just hold in rent. >> They hold in rent time. Yeah. >> Again, a lot of a lot of companies they make money on the appreciation of value when they're going to cash out in five years. Um some of them, you know, if they put enough money down, you're going to make good money on hand on hand. You know, the the return is very high. >> What's happen you going to buy a house? You feel like you could >> I feel like I feel like I have more I definitely have much more confidence. You know, some papers. >> We're both renters. >> Some papers. So, we're asking our questions from like a real genuine uh pursuit of >> I'll tell you. Yeah. You're making a couple more guys like me. You're good to go. [laughter] [clears throat] >> It's really been an honor. How do people reach you? >> Privilege. Yeah. >> Email. You have an office number. >> Email, phone number. Uh or provider. >> If you call at 1:00 a.m., we know you're not serious. [laughter] If you call between 9 and 3, fine. Call 4:00. Say it's going to be quick. >> [laughter] >> Uh my cell phone is 516928593. Uh you could check me up online. Um I got a lot of Google reviews. Working on that. >> I know you're honest and I know you're the greatest because um my friend Saul Herska from Wheels says you're an upstanding guy and if he says it then that's the >> No, you never referred anyone to our show. He's the first that's the gold that's the certificate. That's the letter of intent. That's like the gold standard >> pre-approved. Salesk says he's a stand upstanding guy. It's also our Are you What are you mod five fiveish? >> I'm the I'm the sweet onion. I'm the sweet onion. The Vidalia. >> Well, you have the velvet yamaga. >> You live in Highland Highland Park. >> Full head of hair. [laughter] >> We're trying to We went to DRS. DRS is not Modox, right? >> Yeah. I don't I don't I wouldn't I wouldn't label myself as not not to take away from being people label. I'm kind of like, you know, the hybrid, I call it. >> Modocity. Yeah. I'm transitioning though [laughter] uh from you know depends on the minute of the day like in the morning I'll be on like a white shirt black pants depends on like the afternoon depends who I'm meeting with you know >> we went to a lakewood office >> stays on but you know maybe a t-shirt >> no names we went to a lakewood office a few weeks ago six seven guys came into the boardroom to meet with us all had white shirts and I don't know how to say this they seem like regular normal guys like talking >> one of them had Prada shoes like they were like with the nice cars like were they super kosher in And I was like, "Whatever." And I'm like, "Dude, like what's up?" I I couldn't control myself. I'm like, "Dude, what's up with the white shirts?" They all looked at me like, "Huh?" I was like, "What?" I was like, "What's with the white shirts?" Like in Crown Heights, all the shirts like blue shirts, purple shirts, yellow shirts. They're like, "You understand that our kids have to be in yeshiva? You're not getting your kids into yeshiva without a white shirt." And then one of them looked up and said, "Yeah, you could." And they all started laughing like, "That's shmecky yeshiva. I don't want to send my kids there." I didn't know the dress code like what is really black and white. It's not a joke. >> Yeah. Big time. I didn't know that. >> When I go when I when I go when I go when I go to the liquid, I wear like the mesh like most inappropriate white shirts, you know, like the holes in it, you know? >> You always wear you go to liquid, you wear you really switch a white shirt. >> I'm telling you, but like I wear the Polish shirt that's inappropriate, you know? >> It doesn't, but like a white shirt. >> No, I didn't know people have a uniform cuz they shave their beard. So for us, a beard, you know, >> for them for them, it's mutter. No problem. >> White shirt. No, the white shirt. >> White shirt is like you're showing that you're Jewish. It's >> like our beard is our white shirt. If you want your kid to get kicked out of you, put on a pink shirt, you know, and then the property tax is good. Your kids will be in public school. >> Someone nice. I remember when I was in seventh and eighth grade and how you had to be had to wear uniform and it was kind of nice waking up in the morning not have to decide what color you're going to do, you know, just straight up. >> What color? >> It was light blue or white and uh you know rush for sure white and dark pants. But you had you knew kind of what you're doing. You didn't have to >> think too much >> pink shirt with wine. >> So did you do high school DRS then you did yeshiva Israel for a year? Wilson two years and I was in Baltimore for you. He he flipped out. What is it? >> He said a hybrid, you know. >> He flipped out Aaron Feldman. >> Yeah. >> Frey. I know. I keep France. I keep tabs on these people. >> I drove him a couple times to >> Yeah. I was interested like public speaking talking about the fundraising. [laughter] >> He's a good speaker. No. >> We should bring him on the podcast. >> Yeah. The 911 shar. You listen to that one. It's a good I one time I wanted to ask him something and I went on to some like Baltimore phone book online and I put in friend he picked up the phone the first ring. >> Yeah. >> Like hello my friend. I was like oh >> it's amazing is that he only started going on I don't know Spotify or YouTube most recently because beforehand he was selling CDs and tapes of his sheer and only till like he he like was holding out all this time. [laughter] >> He was holding out until like maybe six months ago. >> He was holding out because even if you bought the tape you couldn't play it. There was no >> but at a certain point it's like you have to be available you know Torah anytime. >> Yeah. So >> very informative. Thank you so much for coming on the show. >> Okay. If you have any questions I'm available. All right. Some tacos. You going to buy a house? You have no choice.