Angela Yee Charlamagne, Seminoles, Five Percent discussed on The Breakfast Club
DJ envy Angela yee Charlamagne the guy we are the breakfast club yes a special guest in the building today a lot of people ask so many questions about real estate we do the seminar so much so I know lot of times people can't make it to the Seminoles won this other things to do so I want to have a a conversation on it will be break down a lot of the stuff that he and I can also see that will be joining us the second actually do so are we have a couple of people here I'll start with the credit guy Jose wanted to some of your name and your business yes I don't everybody Jose Rodriguez the credit dude I own clean say credit solutions in New Jersey okay then we have the the mortgage guy the money back yes Sir come on in the information Matt garland on the may be on compliance in the last number five eight seven zero zero better known as Angie to mortgage guy okay and we also have Sabine here this being is an attorney value when I tell them some information as well good morning everyone my name is Sabine Franco I am an attorney in the state of New York and New Jersey and my company's called Frankel offer okay so the way we do our seminars in a way we talk about real estate either season. the slide over. and the chair right here. he's on his way of me I went out before we got a. to make sure. second so we talk about real estate we always talk talk first with credit and even we first I work in a I know my could we shot right how is your credit my credit was fine. it was shot is what it is so bad you know what it was I think was maybe school loans it was you know it was it was doctor bills hospital bills I just didn't get the my god I'm late it was always a lot of money and I want to pay them so you can't just do that I figured that out yeah my. could it was cool because I had paid off my student loans and I did direct deposit direct payments so that was always on time and you know I have my car that I was doing my payments on and just things like that and I always wish or to even if I didn't have the money to pay something off the fall I always made payments right talk to people you cannot communicate does not pay something correct and that's what I do so the first thing I wanted to write well. now what's a good credit score and how do you keep your credit score high yeah so what's crazy is when they say what's a good credit score action depends on what you're buying because you know if you want to buy a house you can get one as low as five eighty which you don't want to have that score anything over seven hundred you're good you're gonna get and put in a position where you can pretty much get approved at the lowest interest rate but they won't really be any problems with you were there like all you have a six eighty well guess what we also need a cosigner all you have you have a six eight six twenty we need five thousand dollars that's a down so you have a seven hundred I say you're you're good you know I mean and and what a way to keep the high credit score is he bounces low that's why the biggest thing in lye Angela said is just make sure you pace of on time a lot of people forget all twenty five dollar bill and I get a lot of classic offer that to Peter twenty finally happened one credit card and that's probably the biggest thing why have claimed to have like a five thousand dollar payment but the people have the twenty five dollar payment they forget to just put it on auto pay and just always pay more than what you can cause majority clients that I have their credit scores a low because of their debt which means that the amount of balance as they have on their credit cards I live in ratio to their credit limits limit is ten thousand dollars but it's up to nine thousand that's right that's bad yeah yeah and I I always have to keep a ten percent a lot of people say thirty percent credit limit ratio I always say ten percent on there because you can get put in the best position possible to have the highest credit score so how do you get your credit score up let's say you know somebody out there listening right now they have a five fifteen or I have a six hundred what's the fastest quickest way to get their credit score up parts on a fast thing is when you look at it a lot of people use credit karma I wouldn't advocate for that I will probably try to get a mortgage report or try a crippled has all three because all the reports are sent different which is crazy I I don't know why there's three credit bureaus will look at your credit reports he does anything inaccurate but then also pay everything down I mean a lot of people don't have credit that's why they have a low credit score have at least five accounts I would say have a least five crowns when there is a mortgage on auto loans credit cards he bounces down and that's pretty much it and if you have those collections light and he had. you don't just have to go to collections ever now the thing is if you have a medical bill pay twenty five dollars a month and it prevents it from going on your credit report yeah let me ask you this what about if a having too much credit right like so you have to many credit cards only to to many land lines and too many accounts yeah does that negatively affect you it depends it is crazy because a lot of the answers in question depends if you're going for a mortgage the lender might tell you to close if you go for a car they don't care but as long as you do have like twenty credit cards as long as those balances are low the land is normally not gonna care as long as they're not maxed out there what about tree let us see a lot of people say yeah you you get a tree line and I get you credit up high right straight lines legal and now so here here's why I never have one. so here's why call your credit card company up and say Hey I'm going to sell my account to somebody else for a thousand dollars can I do that is that in the in the agreement and more than likely not going to say yes right did there's no where there is gonna be legal in there actually is cracking down with the Federal Trade Commission after just sue somebody for doing exactly that exact same thing was like six point one one dollar lawsuit so it's not legal so there's other ways of building credit maybe if you want to add your daughter or your son yeah that's fine add authorize use but don't buy it because it's not legal to add somebody ought to a credit card that you have no relationship with right so so the first step is easy just walked in Seattle use working out just want to see a lot. so that's the first that business fixing your credit making sure you credit it is right they want you get their credit right in this is all when you're trying to buy a home for yourself for investment properties what I'm talking about this what we talk about but in depth in a seminar that we come to financing yes all right so now I've got my credit score up to let's say a six twenty okay twenty his thank you to get your car can you get your credit report for you every year for everybody. an annual credit report dot com annual credit report dot com so now I got my credit score six twenties now want to buy this house okay I don't have much money to put down right the houses let's say a hundred thousand dollars okay how do I get this house to put in the least amount of money as possible listen a perfect program for someone in that situation is FHA loan right FHA allows you minimum credit score of five eighty and putting down three and a half percent as a down payment so in that example and be a hundred K. will cost you thirty five hundred as a down the line is no way I could buy a house not SO was five eighty let's say house would use a hundred thousand is around it and only have to put down thirty five hundred dollars correct three point five percent but don't forget to closing costs right so you close in Costa Jenny gonna be somewhere around five percent of the sales price so in this case you're going to come out of pocket around eighty five hundred dollars to buy a hundred thousand dollar house it's money that into your mortgage payments yes you can great question you you can roll in and only if the seller agrees to give you what's called the sellers concession and with FHA they allow the seller to pay at least up to six percent of the sales price so in that case of the closing costs of five percent you can't exceed the five percent but you have that six percent buffer just in case is a little bit more expensive and you can finance the bar will finance the closing costs and be part of a monthly payment now what about PMI if you do alone and you have to put in you only put down three and a half percent and you have to pay mortgage insurance yes you have to pay PMI on FHA loan even if you put down twenty percent which people don't realize so even if you go FHA you put down three and a half five ten whatever it is you want to have PMR four if it's less than ten percent the PMR for life alone if you put down ten percent or more it goes on it goes way year eleven of the law but what I tell people all the time is PMR is not the devil it gives you the opportunity to buy a home with put in less than twenty percent down so if your first time that you want to buy a kind of like what you did let's say it's a three family house right okay I can still get a three point five percent loan is that correct absolutely FHA gives you the ability to put down three and a half the same. whether you're buying the one family to family three family or for a family you can also buy mixed use property on for those who don't know what a mixed use property as is we have a commercial space and apartments on top of it so unless I I find a three family home for a hundred thousand dollars okay I have to live on one floor but I can read out the other two floors and get a three point five percent loan absolutely other two floors pretty much pay for my mortgage and I'm living rent free absolutely I mean we have plenty of case studies from from my seminars where people are buying homes and essentially looking for free I just close someone about two weeks ago she came to the the the queen seminar and she bought a property in Jersey a three family I mean a rental income on a three family was forty six hundred somewhere around there and she's living in the basement and converted the basement type two bedroom apartment so how mortgage payments only twenty eight hundred dollars so profit two.