It's late, you're watching my youtube channel, you're fantasizing about real
estate, and you're thinking, I wonder if there's down payment assistance programs
when right on the TV you hear this jingle, down payment assistance could be
so awesome! Well guess what? today we're talking about downpayment assistance.
Does it really exist? Can you use it in the world of real estate? find out.
Down payment assistance. You know we live in a world right now where there's so
many banks that are competing for you. And you know what they're gonna want
some basic things. They're gonna want you to have some good credit. They're gonna
want you to have a two-year steady work history but if you do, they're gonna
start bringing all sorts of options to the table and I want to talk to you a
little bit about downpayment assistance. First of all, putting a down payment to
buy something is really cool the bank's willing to put up the rest of the money
and take a risk on you and I so that we can create wealth and real estate. Create
a heritage, create a legacy for the next generation. That's what I'm doing in real
estate and that's what you can do too. And so it's awesome that banks are out
there to help us out. So first of all, it's important to understand that your
state and our government on a federal level they have down payment assistance
programs and that comes from that very public sector but from the private
sector in the banking world, we also have banks and then I want to show you one of
my real cute tricks here on 401ks that most people don't know about.
First of all, governments more or less mandate a number of different programs
for first-time homebuyers. They're not really interested in helping investors
but they're super interested in helping people that are buying a home for the
first time. And remember, it doesn't mean that your own home you buy can't be an
investment. Your own home can. I think it should be an investment. You know if this
is one of the biggest mistakes that young people make these days. It's time
to buy a house and they're so sick and tired of having it worked at McDonald's
they now have their valuable piece of paper it's hanging on my wall that says
I've got a degree. I'm smart. So now it means that I can get hired and oh my
gosh I got paid forty thousand this year. You know, which is the national average
or fifty or I'm making seventy thousand dollars a year. And what's the first
thing we do? We get picky and say no more four hundred square foot hole in the
dumpy-dumpy ground apartments. I'm gonna buy myself a house. And what do we often
buy? We buy the nicest house that we can afford. And it feels great until you
realize that you just put a ball and chain on your hip with the 30-year
mortgage maybe a forty or mortgage something you're going to refinance 20
years later. You may never get the sucker paid off and you are in bondage to it.
So when you buy a house using these programs, use them to your
benefit. Buy a house with equity. You don't know what that means? Watch one of
my videos on equity so that you can know it's one of the most important parts of
being a real estate investor. You can get yourself a nice house but if you balance
it with having equity, guess what that means for you? it means that you've got
more options for your future. If I bought a house, for example this house has a
value of a hundred and fifty thousand dollars and I purchase it for a hundred
and twenty thousand. Well guess what? maybe it was a little shabby er than
something totally new that I could have gotten and maybe I put a little sweat
equity into it did a little paint job or whatever. But guess what? that thirty
thousand dollars means? Freedom. You lose your job six months later you're
struggling to afford the mortgage. Oh no you got to move out. Guess what you can
do? This equity now means you've got cash flow and when you rent it out or sell it and
what if you made twenty thousand dollars after your costs? twenty thousand dollars
guess what that does when you lose your job? All of a sudden, you've got even more money. So
be smart when you buy your homes. State government, banks, 401 case. First of
all governments and banks, they're really good at making sure that there are three
to five percent down payment programs. Governments have programs where
it can even be 0% if you qualify. Banks will always be at three to five percent
and then the state that you live in. If you just Google, you know, downpayment
assistant programs for Vermont, Utah, Texas. What you're gonna find is that
your state, they often offer incentives to help out. Why? because first of all
they're often getting federal funding or number two there might be areas or
counties that they want to grow or expand. You know, I live here in Utah and
at the point of the mountain which is this new metropolis that's booming, the
the state of Utah has has given out all of these business incentives so that now
people like Adobe and Google are coming and moving here in large corporations
because the states make more revenue and they can expand and build them right? So
they have more more revenue for their projects. So you should check out what
your state is local is providing and your banks that you
to, your loan officers, your lenders, they're gonna be aware of the government
programs that they can often help you out with. And then here's my little tip
and trick of the day. A lot of you are putting money in a 401k. We're not going
to talk about how much that is upsetting to me that you're locking up your money
and largely untouchable and that I think that it is a very financially unwise
decision. Even with the match I want my money today so it can work for me when?
Not in 30 years from now because my money is more valuable today. Let go of
the match but let's just say you have one of these 401ks. It's hard to
get your money out, you got to prove hardship often or you got to leave your
job. But 401ks have an exemption that say you can use up to ten thousand dollars
when purchasing a property. A lot of people don't know that so if you got
twenty thousand dollars in your 401k, talk to your HR director and ask them
hey I'm buying a house and in this case what is a three percent down payment on
a hundred and twenty plus thirty six hundred dollars. Let's say that you have
to pay some closing costs out, let's say that out-of-pocket it's gonna be five
grand, guess what? Your 401k that you've been putting money in just helped
you actually buy that house and fund your down payment. That's the cool little
caveat it gives them a little bit of redeeming value not much. Put it together
gives them a little bit. So friends, that's our video today on downpayment
assistance. Check with your local state, check with
your bank, and if you got a 401k, boom! You got a great solution there! If you've had
success in the world of getting downpayment assistance and other
programs or local community programs, share in your comments below. I think
it's gonna be super inspiring for all of us to have a chance to see your
experience out there in the game of real estate. Otherwise subscribe, we look
forward to your next video.