CHRIS X: We’ve got some fine guests lined up for you today. Today we’ve got Roger Salinas with Zeus Mortgage. Later on in the program we will speak with Chad Scroggins with Sensible Home Solutions, and we’ll even check with O’Connor & Associates talking a little bit about property taxes and protesting those property values.
You need to be careful and make sure you’re not overpaying for your property. It is a very important thing to not overpay for your property especially if you want to be a real estate investor. It’s all about cash flow and the equity capture and a whole lot of other things. All right.
Good afternoon, Roger, and welcome to the Lifestyles Unlimited Real Estate Investor Radio Show.
ROGER: Hey, Chris. How’s it going, man?
CHRIS X: It’s going very good. Good to see you and glad to have you back on the program. I saw you earlier this week in the office. And before we even get started, you’ve got to tell me, I know you had a big charity event, which is why you weren’t at our case study last night. How’d things go?
ROGER: Man, it was incredible. It was at the House of Blues. We had about 400 people at the event. We raised nearly $40,000. Fox News was there. They did interviews. They aired our event last night and again this morning.
As a result of the money we were able to raise, we’ve identified seven families who today are going to be the recipients of the money that we raised last night—a 100-percent-transparent every dollar that was raised and donated—including you, Lifestyles—so thank you very much for your very generous donation.
We’re giving that away today in the form of services and gifts—no actual cash. So it was great. Thank you for asking.
CHRIS X: Well, thank you. I’m glad we were able to be a part of it. I know the generous donation didn’t come directly from me. It was from Lifestyles Unlimited, so we’ve got to thank Del and Steve for that and of course Natalie. So I’m glad we could be a part of it. It’s a shame we couldn’t be a part of it last night because, again, I was at the case study working last night. But I’m glad you had a fantastic turn out.
We wanted to mention that. I know you guys do a lot of stuff for the community. Glad to see you helping out these people. It’s awesome stuff. Tell you what let’s get right to it.
Let’s talk about first and foremost tell us exactly what you guys do. You guys are a mortgage lender, correct?
ROGER: Yes, we’re both a banker and a broker. So we lend some of our money, and if I can get you a better deal somewhere else, we definitely broker the deal out. But we work with every type of financing there is mostly for real estate—be it your single-family—you know these commercial loans are getting a little tougher to do because there’s some commercial bubble so the down payment is getting greater, so we’re staying away from commercial as far as multi-family’s concerned.
But we’re definitely doing single-family, one to four. And people are refinancing like crazy right now because rates are at less than 5 percent again. We’re all over that.
CHRIS X: Well, let’s do that. Let’s talk about some of the programs you guys are offering right now for not only members of Lifestyles Unlimited but anyone listening to the program. You guys work with everyone. Let’s talk about some of those programs. What do you guys have available right now?
ROGER: Sure. So investors we have what we like to call the Zeus Combo. Zeus Combo consists of—really what it is it’s a hard-money loan initially, so we’re able to get someone into a property with little to nothing out-of-pocket.
On the acquisition, if the deal is right, we will lend up to 65 percent of the appraised value. And if the deal’s right, people can get into a home like I said for little to nothing out-of-pocket. And then once the rehab is complete, we’ll immediately turn around and refinance them out. We’ll roll in the closing costs to minimize the money that people spend to buy real estate.
A traditional/conventional loan of a $100,000 house can cost $40,000 out-of-pocket depending on the rehab that it needs with 20, 25 percent down plus the rehab plus your closing costs. With our investor combo we can get down to 10 is about the going cost of those these days.
CHRIS X: And when you’re doing a—when you talk about the little to no money down out-of-pocket, what sort of house does it have to be to qualify for this type of lending? Does it—obviously it needs some sort of a rehab and a make-ready, but is there any strict perimeters that it falls in?
ROGER: Well, there are only four reasons why someone would fall into this program. The first reason is because traditional/conventional financing will not lend if the rehab is too much.
The second reason is if someone needs to close really fast. Say your neighbor’s foreclosing and you need money by the first Tuesday of the month, or he’s getting foreclosed—well, traditional/conventional financing can’t close that loan fast enough. We can ‘cause it’s our money.
Third reason is that someone doesn’t qualify for traditional/conventional financing. They need to get a cosigner, they need to get a partner, they need something else that would be a third reason.
And then the fourth reason is the one that I said earlier is, “Look, I’ve only got $50,000-$60,000 to invest. How many houses can I buy with this much money?” So if you find the right deals—and all it takes is one, Chris. All it takes is one good deal for it for someone to become a successful investor, and then it takes one bad deal for people to stop investing.
So we want to make sure we put them on the path of successful investing so that they become successful investors and we can all be happy together make money together.
CHRIS X: Absolutely. It’s the abundance mentality as we’ve talked about here. There is more than enough to go around. You want to do what’s best for other people. If you help enough other people get what they want in turn in life you can have everything you want.
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