WEBVTT 00:00:01.000 --> 00:00:04.379 There is a crisis going on in America currently, 00:00:04.540 --> 00:00:07.459 a crisis that affects millions of people and 00:00:07.459 --> 00:00:10.880 one that real estate agents might play a role 00:00:10.880 --> 00:00:13.839 in solving or mediating, but you're not going 00:00:13.839 --> 00:00:16.000 to hear it from your normal real estate agent 00:00:16.000 --> 00:00:18.339 at all. And this crisis that I'm talking about 00:00:18.339 --> 00:00:22.179 has nothing to do with the Middle East or debt 00:00:22.179 --> 00:00:25.460 spiral or anything. It has to do with retirement 00:00:25.460 --> 00:00:29.039 and how people don't have anything saved for 00:00:29.039 --> 00:00:32.729 retirement. And this is a big, big problem as 00:00:32.729 --> 00:00:35.570 more and more boomers reach retirement age. Gen 00:00:35.570 --> 00:00:39.009 X is up next for retirement. And the average 00:00:39.009 --> 00:00:43.090 retirement savings is like $100 ,000. And that 00:00:43.090 --> 00:00:45.469 is pretty good. And most people don't have two 00:00:45.469 --> 00:00:47.750 nickels to rub together in retirement other than 00:00:47.750 --> 00:00:52.049 the equity in their home. And so there are tons 00:00:52.049 --> 00:00:55.409 of people sitting on a lot of equity. And it's 00:00:55.409 --> 00:00:58.030 really become the default retirement savings 00:00:58.030 --> 00:01:01.570 plan for... Americans because they don't have 00:01:01.570 --> 00:01:04.150 anything else saved. And we can talk about the 00:01:04.150 --> 00:01:06.390 reasons for that. They're complicated. There's 00:01:06.390 --> 00:01:10.189 a myriad of reasons. But the fact is people are 00:01:10.189 --> 00:01:13.069 relying for the sale of their home a lot of times 00:01:13.069 --> 00:01:18.090 to provide for them in retirement. And so where 00:01:18.090 --> 00:01:21.189 does that leave us as real estate agents serving 00:01:21.189 --> 00:01:24.409 a population of people that are in this position 00:01:24.409 --> 00:01:26.969 where all their equity is trapped? And it's not 00:01:26.969 --> 00:01:29.790 just people looking to retire. It's a lot of 00:01:29.790 --> 00:01:32.530 people's wealth is in real estate. It's in the 00:01:32.530 --> 00:01:35.849 equity in their homes. And so what I'm going 00:01:35.849 --> 00:01:38.340 to speak about today. with this retirement crisis 00:01:38.340 --> 00:01:42.340 is for people that own their homes outright and 00:01:42.340 --> 00:01:45.939 what they can do to secure monthly income in 00:01:45.939 --> 00:01:48.799 uncertain times. And what we don't often talk 00:01:48.799 --> 00:01:50.859 about, especially as real estate agents, because 00:01:50.859 --> 00:01:53.900 most real estate agents have no idea about how 00:01:53.900 --> 00:01:57.239 to do this or anything about it, is that when 00:01:57.239 --> 00:02:00.099 you own your home outright, like many people 00:02:00.099 --> 00:02:02.780 do, especially people getting ready to retire, 00:02:02.920 --> 00:02:04.359 they might have lived there for quite a long 00:02:04.359 --> 00:02:07.840 time, have tons of equity. and are looking to 00:02:07.840 --> 00:02:11.000 downsize or looking to fund their retirement 00:02:11.000 --> 00:02:14.740 lifestyle in some ways. And so what they typically 00:02:14.740 --> 00:02:17.639 do and what real estate agents tell them to do 00:02:17.639 --> 00:02:20.139 is to put their home on the market and sell it 00:02:20.139 --> 00:02:22.879 and cash out and collect their equity and go 00:02:22.879 --> 00:02:24.180 about their business. And that's sort of their 00:02:24.180 --> 00:02:27.699 retirement income. But here's where it gets a 00:02:27.699 --> 00:02:30.460 little more complicated because there's other 00:02:30.460 --> 00:02:35.509 ways to access that equity that. can be more 00:02:35.509 --> 00:02:37.849 beneficial, potentially more beneficial to a 00:02:37.849 --> 00:02:41.310 seller and provide them with more specific, consistent 00:02:41.310 --> 00:02:45.229 income. And I'm talking about seller financing. 00:02:45.990 --> 00:02:50.250 So I'm talking about you being the bank, you 00:02:50.250 --> 00:02:52.590 selling your home, but instead of just selling 00:02:52.590 --> 00:02:54.409 it back to the bank who's going to sell it to 00:02:54.409 --> 00:02:57.090 someone else, you are going to hold the note. 00:02:57.189 --> 00:02:59.469 You are going to collect payments with interest. 00:02:59.710 --> 00:03:01.909 You are going to be able to work out the terms 00:03:01.909 --> 00:03:04.460 you want. And then you are going to be able to 00:03:04.460 --> 00:03:08.580 collect a consistent monthly income from that. 00:03:08.639 --> 00:03:10.979 And no, you're not renting the place. You are 00:03:10.979 --> 00:03:14.939 collecting a mortgage payment. Now, for any realtor 00:03:14.939 --> 00:03:16.680 out there, when somebody comes to you, if you're 00:03:16.680 --> 00:03:18.340 a good realtor, my first question is going to 00:03:18.340 --> 00:03:19.979 be like, why are you selling? I don't think you 00:03:19.979 --> 00:03:22.240 should ever sell if you don't have to. Because 00:03:22.240 --> 00:03:24.400 what happens is, you know, people typically they 00:03:24.400 --> 00:03:26.379 pay, they play that sort of middle class trap 00:03:26.379 --> 00:03:29.039 where they build equity and then they pour all 00:03:29.039 --> 00:03:30.939 that equity back into a place where they got 00:03:30.939 --> 00:03:34.050 to spend a monthly. They upgrade their home and 00:03:34.050 --> 00:03:36.669 then they've lost all that equity. And now they 00:03:36.669 --> 00:03:39.430 are doing the same rat race again. They have 00:03:39.430 --> 00:03:42.009 the same giant payment and then they're just 00:03:42.009 --> 00:03:43.930 stuck. So all their equity is trapped again. 00:03:44.189 --> 00:03:47.310 But for people that own their own home, they 00:03:47.310 --> 00:03:49.770 have a lot of options because once you own your 00:03:49.770 --> 00:03:51.770 own home, you can kind of do what you want with 00:03:51.770 --> 00:03:53.949 it. You can sell it for magic beans. You can 00:03:53.949 --> 00:03:56.810 trade it for a Ferrari. You can do whatever you 00:03:56.810 --> 00:03:59.789 want with it once you own it. It's yours. And 00:03:59.789 --> 00:04:02.949 your average typical real estate. agent, buying 00:04:02.949 --> 00:04:05.349 and selling. And people too, owners of homes, 00:04:05.550 --> 00:04:08.189 buyers of homes, they only know one way to buy 00:04:08.189 --> 00:04:10.069 or sell a home and that's to get a buyer with 00:04:10.069 --> 00:04:12.909 an approval, pre -approval letter from a mortgage 00:04:12.909 --> 00:04:16.009 company, the bank, the bank, the bank does everything. 00:04:16.350 --> 00:04:18.470 And I think it's going to be a lot more empowering 00:04:18.470 --> 00:04:21.209 for some people in certain circumstances, especially 00:04:21.209 --> 00:04:23.470 if they own their home. I'm not talking about 00:04:23.470 --> 00:04:25.769 if you still have a mortgage and wraparounds 00:04:25.769 --> 00:04:28.910 and lease options and other ways to do owner 00:04:28.910 --> 00:04:31.769 financing. I'm just talking about... about straight 00:04:31.769 --> 00:04:34.709 seller financing where you own your home, and 00:04:34.709 --> 00:04:36.930 then you're going to sell it to somebody directly 00:04:36.930 --> 00:04:40.350 and collect those payments with interest, you 00:04:40.350 --> 00:04:42.889 are going to be the bank. That's what I'm talking 00:04:42.889 --> 00:04:47.410 about. Because let's say I'm looking to retire, 00:04:47.569 --> 00:04:50.350 and of course, to access that equity, I believe 00:04:50.350 --> 00:04:52.350 I need to just sell it back to the bank who's 00:04:52.350 --> 00:04:53.970 going to sell it to somebody else. I get a big 00:04:53.970 --> 00:04:56.490 old payment. I get a big old equity payment. 00:04:57.699 --> 00:04:59.980 large and in charge. Well, for a lot of people, 00:05:00.060 --> 00:05:01.819 that might work out for them. That might be the 00:05:01.819 --> 00:05:03.660 choice they want to do. They might want to put 00:05:03.660 --> 00:05:05.319 it towards other things. They might have plans 00:05:05.319 --> 00:05:08.560 for that money. But what happens is, let's say 00:05:08.560 --> 00:05:11.240 all your equity, all your retirement is in your 00:05:11.240 --> 00:05:14.089 home. Which, without being too judgmental here, 00:05:14.290 --> 00:05:17.009 if all your retirement income is trapped in the 00:05:17.009 --> 00:05:19.170 equity of your home, you haven't done a great 00:05:19.170 --> 00:05:21.550 job saving. You have not been good with money. 00:05:21.670 --> 00:05:23.529 You have not managed your money well. That's 00:05:23.529 --> 00:05:25.370 why it's all in your home. You don't have anything 00:05:25.370 --> 00:05:27.529 else. So now what are you going to do with this 00:05:27.529 --> 00:05:31.550 windfall of equity that you get? I can tell you 00:05:31.550 --> 00:05:32.810 what you're going to do. Most likely, you're 00:05:32.810 --> 00:05:35.759 going to piss it away somehow. You know, one 00:05:35.759 --> 00:05:38.019 of your uncle Johnny is going to have a great 00:05:38.019 --> 00:05:40.360 idea of investing and you're going to give it 00:05:40.360 --> 00:05:42.540 to him or your kids are going to ask you for 00:05:42.540 --> 00:05:43.939 a loan. You're going to give it to them. You're 00:05:43.939 --> 00:05:48.019 going to see it again. And so having a big equity 00:05:48.019 --> 00:05:50.779 windfall in retirement for a lot of people, I 00:05:50.779 --> 00:05:53.680 don't see working out very well because you don't 00:05:53.680 --> 00:05:55.360 know what to do with it. You don't have the history 00:05:55.360 --> 00:05:57.699 of demonstrating that you know what to do with 00:05:57.699 --> 00:06:00.319 the windfall. It's like a lottery winner. Like 00:06:00.319 --> 00:06:04.550 most people that win the lottery go broke. Because 00:06:04.550 --> 00:06:06.730 they don't know what to do with a windfall. They 00:06:06.730 --> 00:06:10.470 have no idea what to do with this large amount 00:06:10.470 --> 00:06:14.250 of money. So if you are going to do seller financing, 00:06:14.629 --> 00:06:18.269 this provides you with a number of advantages. 00:06:18.730 --> 00:06:23.290 Is it simple? No, not necessarily. Is it as complicated 00:06:23.290 --> 00:06:26.490 as people may make it out to be? I also think 00:06:26.490 --> 00:06:29.540 no. So it involves a little more research. It 00:06:29.540 --> 00:06:31.480 involves a little more due diligence. It involves 00:06:31.480 --> 00:06:34.279 hiring a real estate attorney who specializes 00:06:34.279 --> 00:06:37.220 in these things. Disclaimer, I am not an attorney. 00:06:37.339 --> 00:06:39.980 I am a guy on the internet. My name is Doug Varinas, 00:06:40.160 --> 00:06:43.339 licensed real estate agent in Washington and 00:06:43.339 --> 00:06:46.319 Oregon. If we haven't met before, I am not an 00:06:46.319 --> 00:06:49.420 attorney. I'm a guy on YouTube. But if I'm looking 00:06:49.420 --> 00:06:51.879 to retire or I own my home in any way, even if 00:06:51.879 --> 00:06:53.560 I'm an investor, I think this is a really good 00:06:53.560 --> 00:06:56.680 exit strategy if you're looking for more consistency. 00:06:56.720 --> 00:06:58.600 in income every month instead of getting that 00:06:58.600 --> 00:07:02.180 windfall or 1031ing into another property. I 00:07:02.180 --> 00:07:03.819 think if you're an investor, you may have more 00:07:03.819 --> 00:07:06.060 practice with dealing with these large payments, 00:07:06.259 --> 00:07:08.279 large amounts of money, and you know how to allocate 00:07:08.279 --> 00:07:12.899 capital. But if you're a Joe Schmo retiree who's 00:07:12.899 --> 00:07:15.500 trapped in their home equity, that's your big 00:07:15.500 --> 00:07:19.069 nest egg, you're going to blow that. So I'm offering 00:07:19.069 --> 00:07:21.810 you a potential alternative. Again, consult with 00:07:21.810 --> 00:07:24.490 your people about this. But basically what seller 00:07:24.490 --> 00:07:27.430 financing is, is you own your home outright and 00:07:27.430 --> 00:07:29.509 you can do what you want with it. So you can 00:07:29.509 --> 00:07:31.589 put it on the market and you can use a real estate 00:07:31.589 --> 00:07:33.730 agent or you can not use a real estate agent. 00:07:33.810 --> 00:07:36.089 You can kind of give them a finder's fee because 00:07:36.089 --> 00:07:38.509 you can pay them a straight commission. There's 00:07:38.509 --> 00:07:41.009 a lot of ways to work that out. But ultimately, 00:07:41.089 --> 00:07:45.259 it would involve you selling your home. to somebody 00:07:45.259 --> 00:07:48.480 at a certain price, at a certain interest rate, 00:07:48.579 --> 00:07:51.699 and for a certain amount of time. Now, because 00:07:51.699 --> 00:07:54.180 you are in control of your home, there are a 00:07:54.180 --> 00:07:57.959 million ways to structure this sort of deal. 00:07:58.160 --> 00:08:00.720 So if you did need a certain amount of windfall, 00:08:00.819 --> 00:08:02.660 like if you're looking to downsize and you needed 00:08:02.660 --> 00:08:05.319 a down payment, well, part of the seller financing 00:08:05.319 --> 00:08:10.629 could be requiring a 10, 20... 30 % down payment 00:08:10.629 --> 00:08:12.769 from the person who's gonna purchase it from 00:08:12.769 --> 00:08:15.649 you. That could be certainly a portion of or 00:08:15.649 --> 00:08:17.529 a part of the deal that you could structure. 00:08:18.000 --> 00:08:20.459 in to make it worth your while to get some money 00:08:20.459 --> 00:08:22.420 up front to get you going in your next stage 00:08:22.420 --> 00:08:24.579 of life. And then you're collecting the monthly 00:08:24.579 --> 00:08:27.879 payments plus interest. So it works similar to 00:08:27.879 --> 00:08:30.579 a mortgage. You have a purchase price. A lot 00:08:30.579 --> 00:08:32.440 of people are looking for seller financing for 00:08:32.440 --> 00:08:35.720 whatever reason. They don't qualify for a traditional 00:08:35.720 --> 00:08:38.620 mortgage. Maybe they're contract workers. There 00:08:38.620 --> 00:08:41.490 could be any number of reasons. And or they're 00:08:41.490 --> 00:08:43.450 like me, where they just they don't want to pay 00:08:43.450 --> 00:08:46.350 a bank to purchase a home. Like as an investor, 00:08:46.470 --> 00:08:49.610 I like to get seller financing or some kind of 00:08:49.610 --> 00:08:52.529 alternate creative financing, they call it, so 00:08:52.529 --> 00:08:54.769 I can put less money into a deal or I can structure 00:08:54.769 --> 00:08:57.710 it the way I want it, especially in a higher 00:08:57.710 --> 00:09:00.529 interest rate environment like today. You can 00:09:00.529 --> 00:09:04.169 potentially get a higher purchase price for your 00:09:04.169 --> 00:09:06.889 home overall if you're willing to accept a lower 00:09:06.889 --> 00:09:10.269 down payment or lower interest rate, because 00:09:10.269 --> 00:09:13.490 those are really the three factors in this transaction. 00:09:13.649 --> 00:09:17.129 You have a purchase price, you have an agreed 00:09:17.129 --> 00:09:19.690 upon interest rate, and then you have the terms, 00:09:19.710 --> 00:09:22.029 like how long are you going to do it? How is 00:09:22.029 --> 00:09:27.080 it structured? A couple of options are the straight 00:09:27.080 --> 00:09:30.379 30 -year amortization schedule where you have 00:09:30.379 --> 00:09:32.779 an agreed upon price. And a lot of times you 00:09:32.779 --> 00:09:35.740 can command a premium for your home because you're 00:09:35.740 --> 00:09:37.919 offering the seller financing and because you're 00:09:37.919 --> 00:09:40.179 offering a lower interest rate as an incentive 00:09:40.179 --> 00:09:43.080 to that. buyer, you can ask for a higher purchase 00:09:43.080 --> 00:09:45.399 price. That's great. You don't have to go through 00:09:45.399 --> 00:09:48.299 this whole price reduction, paying all these 00:09:48.299 --> 00:09:52.639 fees. You can get that higher price point. And 00:09:52.639 --> 00:09:54.779 so that's going to be really advantageous for 00:09:54.779 --> 00:09:57.419 a seller. And again, you can capture the interest. 00:09:57.519 --> 00:09:59.919 So right now, interest rates are like 7 % or 00:09:59.919 --> 00:10:04.379 something. If you charged 5 .5%, 5%, you can 00:10:04.379 --> 00:10:06.919 hold on to that note and you collect that 5 % 00:10:06.919 --> 00:10:09.720 for 30 years or whatever. You can will that to 00:10:09.720 --> 00:10:12.110 your descendant. If you pass away and you're 00:10:12.110 --> 00:10:14.750 getting that consistent monthly. And so you are 00:10:14.750 --> 00:10:17.289 getting that consistent income and you're capturing 00:10:17.289 --> 00:10:19.830 that percentage. And if you know anything about 00:10:19.830 --> 00:10:22.029 an amortization schedule on a 30 year mortgage, 00:10:22.149 --> 00:10:24.889 like the first 10, even 15 years, the majority 00:10:24.889 --> 00:10:27.889 of the payment is interest. So in the event that 00:10:27.889 --> 00:10:32.429 your seller defaults, it returns back to you. 00:10:32.509 --> 00:10:37.149 You still own the property. And so this is going 00:10:37.149 --> 00:10:39.750 to be so you're going to be collecting that. 00:10:40.029 --> 00:10:44.610 consistent monthly income for the entire 30 years. 00:10:44.789 --> 00:10:46.990 Now, you can structure it different ways where 00:10:46.990 --> 00:10:51.669 you can capture those terms in the first year, 00:10:51.990 --> 00:10:55.370 two years, three years, five years. And then 00:10:55.370 --> 00:10:57.210 at the end of that, you can request that there 00:10:57.210 --> 00:10:59.870 be a balloon payment written into the agreement 00:10:59.870 --> 00:11:02.509 where you get the entirety of your equity paid 00:11:02.509 --> 00:11:07.200 out at the end of that. Period. So it basically 00:11:07.200 --> 00:11:09.120 would work the same way as a 30 year mortgage. 00:11:09.419 --> 00:11:12.799 They would pay you a down payment. You would 00:11:12.799 --> 00:11:16.200 collect the principal and interest. And then 00:11:16.200 --> 00:11:19.399 at the end of that defined period, they would 00:11:19.399 --> 00:11:22.139 either have to they would have to basically refinance 00:11:22.139 --> 00:11:25.419 or sell or something to get you your money. So 00:11:25.419 --> 00:11:29.080 you could structure it to where you have you're 00:11:29.080 --> 00:11:31.820 holding that note for a couple of years. And 00:11:31.820 --> 00:11:34.269 then after that. you're having a balloon payment 00:11:34.269 --> 00:11:37.490 to get all your money back. So in short, it's 00:11:37.490 --> 00:11:40.769 an option for people who want consistent income 00:11:40.769 --> 00:11:44.610 and to capture that monthly interest. Because 00:11:44.610 --> 00:11:47.070 when you just sell, you're giving that all back 00:11:47.070 --> 00:11:49.370 to the bank. You're losing it, especially when 00:11:49.370 --> 00:11:50.929 you own your home. You're giving it all right 00:11:50.929 --> 00:11:53.679 back to the bank. And unless you really need 00:11:53.679 --> 00:11:56.019 that windfall and you have a plan for it, a lot 00:11:56.019 --> 00:11:58.960 of times it might be more advantageous to, in 00:11:58.960 --> 00:12:01.639 fact, have a deal structured like this to where 00:12:01.639 --> 00:12:03.759 it guarantees you income. People are constantly 00:12:03.759 --> 00:12:05.980 talking about Social Security and Social Security 00:12:05.980 --> 00:12:08.159 is not going to be there. And people talk about 00:12:08.159 --> 00:12:11.539 consistency of payment and retirement from pensions 00:12:11.539 --> 00:12:14.519 or annuities or some kind of retirement advice 00:12:14.519 --> 00:12:16.559 that gives them consistent income that has a 00:12:16.559 --> 00:12:18.559 high value. But they don't think about their 00:12:18.559 --> 00:12:21.860 home that way. It doesn't occur to anybody and 00:12:21.860 --> 00:12:24.159 nobody is talking about it. Investors are talking 00:12:24.159 --> 00:12:26.759 about it, but real estate agents aren't talking 00:12:26.759 --> 00:12:28.519 about it. And I don't hear a lot of talk about 00:12:28.519 --> 00:12:31.059 that in the retirement community. Tell me if 00:12:31.059 --> 00:12:33.100 I'm wrong. If you have done seller financing 00:12:33.100 --> 00:12:36.120 on your home or you know someone who has, I would 00:12:36.120 --> 00:12:38.960 love to hear about it in the comments. If you 00:12:38.960 --> 00:12:41.700 want to do this or you have a desire to do this 00:12:41.700 --> 00:12:43.659 with your home, you're in the Vancouver area 00:12:43.659 --> 00:12:46.580 or not, I'd love to talk to you about doing that 00:12:46.580 --> 00:12:49.399 too. I would love to work on selling your home. 00:12:49.799 --> 00:12:52.279 this structure. I think it's really interesting 00:12:52.279 --> 00:12:56.200 because the world is moving towards decentralization 00:12:56.200 --> 00:12:59.899 and direct -to -consumer and getting rid of middlemen 00:12:59.899 --> 00:13:02.919 who don't provide value and for us to keep our 00:13:02.919 --> 00:13:05.639 assets. over the long term and not to just give 00:13:05.639 --> 00:13:09.039 them back to an institution like a bank, again, 00:13:09.139 --> 00:13:11.480 might work for somebody, works for a lot of people, 00:13:11.580 --> 00:13:13.659 but it might not work for everybody. And so, 00:13:13.679 --> 00:13:16.460 again, my name's Doug Varinas. I'm a real estate 00:13:16.460 --> 00:13:19.399 agent here in Vancouver, Washington, and licensed 00:13:19.399 --> 00:13:23.100 in Oregon. If you're thinking of buying... selling 00:13:23.100 --> 00:13:25.600 or investing, I'd love to hear from you and just 00:13:25.600 --> 00:13:28.700 have a conversation. 100 % no pressure. We can 00:13:28.700 --> 00:13:30.539 talk about real estate. That's what I love to 00:13:30.539 --> 00:13:32.679 do. And at the end, if you want to work with 00:13:32.679 --> 00:13:34.700 me, great. If you don't, that's great too. No 00:13:34.700 --> 00:13:37.779 worries. I hope this has been helpful. If it 00:13:37.779 --> 00:13:40.440 has, please do a like, a subscribe and a share 00:13:40.440 --> 00:13:43.580 because that helps me out. Please post any questions 00:13:43.580 --> 00:13:46.480 in the comments. But I think this is really interesting. 00:13:46.759 --> 00:13:48.700 Again, you're going to need a real estate attorney 00:13:48.700 --> 00:13:51.139 to help you drop this paperwork and to go over 00:13:51.139 --> 00:13:53.139 it. So that's going to be a fee for you. But 00:13:53.139 --> 00:13:54.980 a lot of times you can sell these directly to 00:13:54.980 --> 00:13:57.200 people. And, you know, there might be you might 00:13:57.200 --> 00:13:59.340 have to pay a real estate agent sort of a finder's 00:13:59.340 --> 00:14:01.980 fee or like a transaction fee for that to help 00:14:01.980 --> 00:14:03.720 you. You definitely have to pay for the attorney, 00:14:03.840 --> 00:14:06.580 but it's not as complicated. as it seems because 00:14:06.580 --> 00:14:10.440 like a mortgage, you know, it's pretty basic 00:14:10.440 --> 00:14:13.519 in the underlying structure of it. You just have 00:14:13.519 --> 00:14:16.340 to basically wrap your mind around like you are 00:14:16.340 --> 00:14:19.000 the bank. But once you do, I think you might 00:14:19.000 --> 00:14:21.860 start seeing how you can structure these deals 00:14:21.860 --> 00:14:24.139 very creatively to get everything you want. And 00:14:24.139 --> 00:14:26.320 it really makes it a win -win situation because 00:14:26.320 --> 00:14:28.620 recently I've been in a situation where I wanted 00:14:28.620 --> 00:14:31.179 to buy a house and I wasn't happy with the terms 00:14:31.179 --> 00:14:32.899 I got from the bank. I just didn't want to pay 00:14:32.899 --> 00:14:35.379 that. And it was a decent rate, actually. I can't 00:14:35.379 --> 00:14:37.220 complain. But then there was also all the other 00:14:37.220 --> 00:14:39.820 paperwork I had to go through. And I had recently 00:14:39.820 --> 00:14:42.679 done some financial stuff that they were like, 00:14:42.779 --> 00:14:44.539 whoa, what's that? Even though it wasn't really 00:14:44.539 --> 00:14:48.379 that big of a deal. And so the underwriting for 00:14:48.379 --> 00:14:49.980 these deals, you still want to make sure people 00:14:49.980 --> 00:14:52.279 are going to pay you back. But the worst case 00:14:52.279 --> 00:14:54.500 scenario is like you have to foreclose on them 00:14:54.500 --> 00:14:57.019 and maybe they damage your home. It's not without 00:14:57.019 --> 00:15:00.019 risk. But at the end of the day, you still own 00:15:00.019 --> 00:15:02.120 your home if they default and you just get it 00:15:02.120 --> 00:15:04.159 back and you have collected their down payment 00:15:04.159 --> 00:15:05.940 and all the payments up until that point that 00:15:05.940 --> 00:15:08.580 they default. So that's a powerful thing, too. 00:15:08.720 --> 00:15:11.639 And yes, it's an inconvenience. And yes, it wouldn't 00:15:11.639 --> 00:15:13.759 be fun to have to deal with that and pay the 00:15:13.759 --> 00:15:15.679 extra legal fees and stuff. But at the end of 00:15:15.679 --> 00:15:18.029 the day. you would be able to regain possession 00:15:18.029 --> 00:15:20.789 of your property and then sell it again. So I 00:15:20.789 --> 00:15:23.149 see this being incredibly advantageous for people 00:15:23.149 --> 00:15:26.330 who are looking to retire and don't necessarily 00:15:26.330 --> 00:15:30.549 need that windfall all at once. They might need 00:15:30.549 --> 00:15:32.409 a down payment's worth of windfall to get them 00:15:32.409 --> 00:15:34.110 going to the next stage, but then after that, 00:15:34.250 --> 00:15:35.610 they're going to get that consistent income. 00:15:36.090 --> 00:15:38.169 Again, hope you enjoyed this. I'll see you in 00:15:38.169 --> 00:15:38.649 the next episode.