← The David Greene Show
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- [00:00]
A
Welcome to Real Talk Real Estate, the show where we cover how to build wealth in real estate with no fluff, no bs, and no sales pitches. I'm David Green, and I've been doing this for over 10 years. I've seen the ups, the downs, and everything in between. This is the show where we pull back the curtain and show it to you, too. So if you want to build wealth through real estate or you just love learning about it, you found your home. What's going on, everyone? Welcome to Real Talk Real Estate. This is Mortgage Monday. I'm David Green, he's Christian Bashelder. And together we are the one brokerage. And we've got a loan update for everybody. For years, the one brokerage struggled not able to do commercial loans. Well, now we can. For a long time, we were unable to do HELOCs on investment properties. Well, that's not a problem. If you got an investment property, we can put a HELOC on it. We've always done DSCRs. We've always done conventional loans. Now we can do them pretty much everywhere. There's only a handful of states that we don't serve. But the one thing that we struggled with, actually maybe two, were jumbo loans and physician loans. And we are closing in on maybe the only two loan programs that we haven't had a really good answer for. Jumbos will be coming soon, but we've taken down physician loans. So here with me today is Christian Bashelder. I like to call him the Lone Ranger, to talk about what the loan program is, who it works for, who's technically considered a physician, and why you should come to us or send us referrals of any doctors you know. Christian, welcome to the show.
- [01:23]
B
Glad to be here. Yeah, we're excited about this one. Like David said, we've for a long time there's been very limited access that anybody but like a local bank or like a retail institution, like a Chase or something like that has had a very hard time competing in the medical professional space. And this is, you know, classic Dr. Program. You hear no down payment, no PMI structured very similar to like a VA loan, but specifically reserved for, instead of the VA being reserved for veterans, this is reserved for our doctors. Right. So I got a little kind of one pager that we gone through today. But super, super, super excited for this program because it's something we have not had for a while. And as the one, as David said, the one brokerage is always pushing, always forcing the envelope, you know, seeing if we can get the Programs that we don't have the strongest access to. And today is a fun day that we finally get to announce one that's been in the works for probably close to two years now developing this program for you guys.
- [02:15]
A
So one of the first things that I'm curious about is who qualifies as a physician. Do you want to start there or do you want me to let you kind of walk through your.
- [02:22]
B
Yeah, I got a list right here, so I'll just kind of go through them. Medical doctors or doctors of osteopathy. So MDs or DOs, dentists qualify. Both DDSs and DMDS. Doctors of pharmacy. So PharmD's count. Doctors of Veterinary Medicine. So veterinarians count. Doctors of Podiatric Medicine. So dpms. Certified registered Nurse Anesthetists. I think I'm saying that right. Those are CRNAs. And then also medical residents, fellows and interns qualify. So people who just finished medical school, you know, obviously we'd have to have income to line up. So usually we're actually doing one for a resident right now who got his first job offer letter for. Right, for being a doctor, but he's still a resident and we will close his loan while he's a resident. So super exciting.
- [03:09]
A
Okay, so I suppose physician assistants do not count. Nurses don't count. Just because you have a PhD, if you're that kind of a doctor, that doesn't count. This is a physician loan, not just a doctor, right?
- [03:21]
B
Correct. As it stands right now, always looking to expand things, but we got to start somewhere, right? That list that I just gave out that we'll, we'll post in the, in the, you know, the resources for this one as well. Or if you guys want to give us a call, we can always talk through it. But the ones that I listed there, there is technically a nurse on there. There's a CRNA on there. Nurse. Nurse, Anesthetist. I can't say that word. I don't know why.
- [03:44]
A
So these would be the people that assist the anesthesiologist with administering that keep you knocked out drugs.
- [03:49]
B
Yeah. And that's technically not a doctor. That's a certified registered nurse. So that is one of the. One of the non doctors, quote unquote, that we, we were able to sneak into the product.
- [03:58]
A
Bro, I had my bicep tendon re put back on. I had that surgery. And they got to knock you out for it. Yeah, anesthesia is way more unpleasant than it sounds like going under is obviously fine. I remember like telling the person, oh, I Think it's coming. Like I'm about to go out, but.
- [04:17]
B
And you can only get to seven, right?
- [04:18]
A
Yeah, yeah, yeah. Coming back from it. Absolute hell, dude. I was so nauseous. They're like pushing you out the hospital as fast as they could get you out. Like, I threw up in the car on the way home probably four or five times. Like, it was brutal. So I. Getting that anesthesia right, is pretty important.
- [04:37]
B
Absolutely, yeah.
- [04:38]
A
And now people know that I puke in the car. So while we're on that topic, let's get into the. The actual benefits of the loan and how people take advantage of it.
- [04:46]
B
I actually have a note about this. If David pukes during your loan, you get a 5% discount. Oh, there you go.
- [04:51]
A
Yeah, man. There's a drinking game where every single time I puke hitting a speed bump on the way home, somebody takes a shot. This makes these podcasts a lot more fun to listen to.
- [05:00]
B
There you go. So, yeah, just going through the details. Our max loan amount on the doctor's loan program is all the way up to 2 million. So for doctors, this also solves a little bit of our jumbo issue. 2 million is larger than a lot of the county conform. Just about everybody. Every county conforming limit. So this expands into the jumbo territory, which is exciting. It allows for debt to income all the way up to 50%. So the most positive qualifying that we can, we have 15, 20, 25, and 30 year fixed terms. And we have adjustable rate terms, 5, 5 arms, 7 arms and 10 arms, where your rate is fixed for 5, 7 or 10 years. And then obviously we'll adjust after that. Arm's not right for everybody, but it's there if we need it. This can only be done on a primary residence. Okay, so this is an important topic if the doctor wants to put 0% down. Buying an investment property, no go. Right. It's got to be where you live. It can be done on a rate term refi as well. So if you're refinancing a loan that you got previously and this doctor's loan is of use to you, we can do it. The biggest thing about it is that our minimum down payment is. Is $0. So we can 100% finance the acquisition of the house with no down payment. And considering a lot of these loans that doctors are buying, sometimes 1.2, 1.5, $1.9 million houses, being able to buy a house of that, of that caliber and not put any down payment is a huge benefit. Of course, very similar to, you know, Traditionally, veterans have been the only people accessed across the board to a zero percent down program. Now we got doctors in the fold as well. No PMI even if you put 0% down. That's crazy.
- [06:33]
A
Can you explain what PMI is?
- [06:35]
B
Yeah, PMI is basically the tax you pay on any other loan product. If you put less than, less than 20% down on anything other than a VA loan or now or doctor's loan, you would have to pay PMI. And on a one to two million dollars purchase, I mean that could be 500 to 1,000 bucks a month. It could be a significant amount of PMI that just gets tacked right on top of your mortgage. That would break the deal for a lot of people. Right? 502,000 bucks a month is a lot of. We have completely eliminated it for Doctors. So no PMI, 100 loan to value,
- [07:04]
A
which means 0%, if you don't mind. Christian hates when I do this, but just shooting from the hip, okay, you're not being held accountable on a million dollar loan balance. What's an approximate amount of PMI that they might be saving?
- [07:17]
B
Yeah, 4 to 500 bucks. Easily. Yeah, easily 500 bucks on a million dollar purchase. Probably more in some cases. It depends on your credit. But easily 500 bucks. Absolutely.
- [07:27]
A
All right, keep going.
- [07:29]
B
Perfect. So we did mention that we allow this for, for residents, fellows and interns. So in a lot of situations, probably 90 of them in America, there's going to be the student loan conversation, right. If you're a doctor, very likely that you got student loans to get there, right. Unless maybe you come for money or you got some crazy scholarships. Right? And we have an exclusion option for student loans. So I'll just read this out. Residents slash fellows qualifying on residency income can exclude their future student loan payments from their debt to income. So if you got a couple thousand bucks a month in student loan payments, we do not have to count that against your debt while you're a student, resident or fellow. Resident, fellow or intern. I'm sorry. So that could be the qualifying difference on a lot of doctors. And then obviously, you know, the. Just so you guys understand why a bank would do this, they know the doctor income is coming and the student loans are going to be a very minimal impact once you're making 3, 4, 5, $600,000 a year. Right. So banks are okay, getting ahead of schedule with you. We also allow for those students, fellows and interns, we allow for the acceptance of future income. So if you have a contract that says you're starting, we're recording this in April. If you have a contract that says you're starting in July, most banks would not be able to buy, help you buy and finance your loan until you've started that job and received your first pay stub. It's a very common requirement. We can look forward to that income within 150 days of our closing date. So that's what 150 days is almost a little bit shorter. It's about five months, right? We can look forward five months to your next employment contract. Now you have to have an employment contract, of course, but we can qualify you using that income before you have started working. That's huge for a doctor who, I'm talking to a guy right now, he did his medical school in Colorado. He's buying in Wisconsin, I believe is where he got offered the job. We're qualifying him. He doesn't start until August. We're doing his loan right now. It'll probably close this week. And he's got obviously going to have to move to Wisconsin and he wants to have his house lined up by the time his job employment takes place in August. We're getting him the loan before he's moved and started that work in Wisconsin. So. So pretty cool, right? A lot of doctors, if we got any doctors watching this, you guys know you graduate your medical school, you put out your applications and you probably don't get hired in your first choice. The story with most doctors, you kind of have to go across the country to find the job, right. And being able to qualify with that income before you've actually made that move. So you have that confidence and that stability, knowing where you're moving into with your mortgage already set, with your deals already done. It's a huge, you know, weight off your shoulders when you're also considering starting a new profession. Right. That's a big deal without a mortgage included. Right. And you don't have to go move somewhere and rent for six months to, you know, season your, your, your doctor's income. We go down to a minimum of 680. FICO score on these, so can't do it. Less than 680. We want, you know, the standard stuff. No bankruptcies in the last four years. You know, pretty, pretty easy stuff like that. We also don't require any reserves. Okay. As long as you're putting 5% down. If you put less than 5% down, we have a little bit of reserve requirement between three and six months of what your mortgage payment's going to be because they want to make sure you have enough money to pay that first mortgage. But that's, that's kind of the cliff notes of the product. We're super excited for it. Like I said, it's something that we've already funded. Well, I guess we just rolled this out a couple weeks ago. So we're in the process of funding two of them right now and we'd like to fund more of them. It's a great product that allows doctors to hold on to that money to get their, their career started. Or even if you're a doctor with your career full enforce limiting your down payment, giving you good interest rates and waiving that PMI so that you can keep that money for other investments is what this, this product's intended to do. So if you're one of those list of doctors, MDs, DOs, DDs, DMDS, pharma doctors, veterinaries, veterinarians, DPMs, which is put doctor of podiat, podiatric medicine, CRNAs and residents, fellows and interns. If you are on that list and you're looking for a loan and you've been quoted 10%, 20% down, 25% down in a lot of cases you got PMI included there. Give us a call, we have a better option for you. Objectively speaking, this is going to be a product that we're going to be doing a lot of and we're really proud to be able to offer it to our doctors clients.
- [11:44]
A
Now, I know we mentioned no down. That's a big one. No, PMI is another big one. Is there any. Oh, there's also some flexibility as far as the amortization rates and ARMs. But did we say anything about if it's a better interest rate or anything along those lines?
- [12:00]
B
Yeah, good question. It's. I priced one out yesterday. It's comparable to the conventional loan, but it's comparable when you put 20 down. Yeah, so you're getting comparable rates at 0% down, you may have depending on where your credit line's in. Like if you're at 685, I shared 680s, our minimum, you'll have higher than the standard conventional loan for sure. But the offset of having no pmi. Remember guys, PMI is like an added addition to your interest rate, right? So if you're paying a thousand bucks in interest a month, but you have a 500amonth PMI, you can essentially consider your, your interest 1500amonth. Right. Because that PMI is just added onto your loan. It's extra money that you pay every month. Right. So even if the rate's a touch higher if it slides above the 30 year fixed for other loan products. The waiving of that PMI makes the difference. Right. That's a huge swing, especially with these larger purchase prices. The doctors are usually, you know, looking 1 to 2 million dollar range to get into a starter house. And a lot of you know, what doctors have decided to be their style of living. Right. Your PMI is significant. So rate is less impactful. When you're talking about PMI being waived 100%. Not that rate's not important, but the savings here comes from the pmi.
- [13:06]
A
All right, if people want to refer a doctor to you, if they are a physician listening to this and they want to inquire about it, where can they go?
- [13:14]
B
Yeah, the one brokerage.com is our website. You can DM me on Instagram at the one broker is my handle and obviously you can always shoot me an email. Christian. The1brokerage.com is where you just ping me directly and say, hey, got a doctor. If you're realtors guys and you're working with doctors clients and they're relocating to a new, new, new new location because of a career, you know, a new offer or change of position or whatever, this is a perfect product. It's literally built for that. It's the same way I would say if you're working with a veteran, like refer us. Veteran VAs have the cheat code. They have the best loans in the country and now doctors are right behind them.
- [13:49]
A
Right.
- [13:50]
B
VA loans are still lower interest rates. But if you, if you're a realtor, if you're a property manager, if you're an insurance agent quoting an insurance policy, let us know we would love to compete for that business. It's a really, really, really strong product that we're incredibly proud to offer.
- [14:04]
A
You know, I didn't ask you this, but is there any downside to using this product?
- [14:09]
B
I mean it's 0% down. No PMI? Not really. I mean even if your rate's slightly higher than what like an FHA loan would be, for example, like I said, FHA loan on a one and a half million dollar house would probably be like an eight or nine hundred a month pmi. No, I, I would not say there's a downside to this program.
- [14:26]
A
And the other thing that we didn't mention here is if you have PMI on an FHA loan, they call it mip, but it's the same thing. It never goes away. It does not matter how much you pay the loan down. It does not matter how much equity you build, it doesn't matter if you recast. You're paying it forever for as long as you have that note until you refinance.
- [14:42]
B
Exactly. Right.
- [14:43]
A
Yep. So PMI is a pretty big deal and so is putting nothing down. I love the idea you and I talked about on a previous show about put zero down and then put money into the house. Yeah, right. Build equity immediately. Buying it instead of putting it as the down payment. I think it's better for everyone. It's probably better for the lender because if they have to foreclose, they're getting to sell a remodeled house. It's easier to sell. It's better for you because you added equity. It's hard to see a situation and I guess it would be a turnkey house. It doesn't need anything put into it. But most of our people are a little more savvy than that. So good job. Exciting news about this. Oh, you know what we didn't talk about? If somebody wants to join the One Brokerage or they want to get their mortgage license, what advice do you have for someone who maybe has a W2 but they're like, you know what? I could do loans also. Is that possible to do at the One Brokerage? It is.
- [15:33]
B
Yeah, absolutely. If you're ever looking into a career in this industry, careers@the1brokerage.com you can email our intake email as well. Intake@the1brokerage.com. We'll put it all that in the comment the section below. But we're actively hiring right now. We need support. We got a lot of people, we need more. We got a lot of awesome clients. You guys listening? Who look for our loan products every day. We're actively hiring, looking to build people up. Whether you're experienced in the industry or you're looking to get into it. We're opening up in person locations. I'm sitting in one right now. This is offices in Woodland Hills, California. We have an office in Las Vegas and we're opening up brick and mortar locations, kind of satellite offices throughout the country as well. So if you are looking, you've always been interested, especially if you have a referral network, you know, if you know realtors, like if you grow up. We just onboard a guy yesterday, his dad's been a real estate agent for 40 years. It's such a non no brainer right to be a lender when you have an immediate cheat code of your dad's clients. Right. It's like, it's, it's literally like a hack Right. They're already talking to your dad about buying a house. Have him just reconnect them with you. We have incredible products, we have quick service, quick turn times, good rates. If, especially if you're coming from a sector where you feel like you would have an immediate referral network, we'd like to provide you the opportunity. Right. We got people making, making good money here. Right. And we want, we want to do a good job for our clients. And more important than the income, we want good people.
- [17:00]
A
Right.
- [17:00]
B
We want people that share David and mine's kind of moral compass, our integrity. Everything we do is driven with our integrity based approach. We have kind of that mantra in the company that, you know, the company's motto is leave people in a better financial position than when we bought, when we met them. Right. Not when we bought them, but before they bought. Right?
- [17:17]
A
Yeah.
- [17:18]
B
And we want, we, we want to do that for more people. So if you guys are in that position, reach out careers@the1brokerage.com is the best place to shoot that. Inquiry over.
- [17:27]
A
Sweet. Another thing that somebody asked me today, so I was talking to a guy and he was actually a bartender at a BJ's and he said, I used to do mortgages. I got out of it when it became like subprime, all that grossness. Now I'm, you know, a bartender and it's good, but I want to make more money. He told me he doesn't have the time, he thinks to process loans and do his. He's good at finding clients because he talks to people that come in the bar all the time. But he thought he didn't have the time to do the loan job. Can you just talk a little bit about if somebody does come work with us, what type of support they get with processing, how much time per file they're actually going to be spending and if it's feasible to do this while having another job.
- [18:09]
B
It's very feasible. It's very feasible. I'll just answer unequivocally that we have full in house processing. So we have our processors employed, trained, guided and maintained by the one brokerage. They know our products, they know how to get stuff closed, they know how to communicate with clients. Well, our processing team is grade A. It's very good. Which just means that if you have the ability to generate business, that's 90 of the job. Right. Be able to represent your clients well, give them good advice, give them good guidance and then let us close the loan for you. Right. That's what we do. That's how we built the company. Obviously I produce myself and I got time to come host a podcast with David. I got time to go attend events and go to conferences and all that. That's because of the strength of our team behind me. I am not a one man shop. I wish I could take credit that I was. I am not by any means. And if you guys have worked with me to get your loan, you know that, you know that you talk to processors who are really good, they know their stuff, they get what they need, you know, and they get their loan close. Right. That's the most important thing.
- [19:11]
A
So a couple of hours per loan, is that safe to say? If somebody, if my cousin came to me and said, hey, David, I want to refinance my house, how much time would it take me to get up to speed on how to do that? And how much time would it take me to actually refinance and close their loan?
- [19:25]
B
Yeah, over, over the 30 days that is a typical escrow process to close a loan. Yeah. Few hours in, you have a few conversations. You lock the rate, you select the product, you make sure the borrower is comfortable with the terms that they're getting. You know, there's some learning you got to do. Don't get me wrong. Absolutely. We got to train you up and get you familiar with the product so you can have that confident conversation. But the actual closing of the loan let us take care of it. Our team knows how to do it better than I can, better than you can, better than David can. Our team's better at closing loans than anybody else, Right?
- [19:56]
A
Yeah, that's different. Most of the time when somebody gets their loan license, there's a lot they have to learn. When I first started this, we had loan officers had to be able to verify income, they had to be able to run credit reports, they had to be able to check taxes and look up schedule ease and all kinds of stuff. What am I missing here as far as like the actual X's and hours of doing a loan?
- [20:16]
B
Yeah. Credit, assets, liabilities, everything. Right. While it's, while it's important that you understand what happens, I compare it to plugging numbers into a calculator. A lot of times you should know what two plus two is. But let the calculator do its job. Right. Like you can type in, you know, 140 times 3,000. You know, you can plug that in the calculator. You don't have to know that multiplication table off your head. Right. The calculator in this example is our processors. Let them actually do the work of making sure your numbers add up and the math works. That's what we provide at the one Brokers. We have that incredible calculator behind us. You should still know what two plus two is, right?
- [20:55]
A
Yep, absolutely. I'm amazed at how we have so much support that we need someone who can basically help with the big stuff like choosing the rate, helping determine the closing costs, explaining the disclosures to the client. But they don't need to do all the stuff that people used to have to do. You're not going to be going through their employer's website helping find their pay stubs. Like all the stuff that took a long time, we've taken off people's plates. So if you've ever thought, hey, I think I could do that, but I don't have the time. The time is not the problem, I promise you. It's if you are willing to learn a new thing, if you're a person of integrity and if you're willing to hustle the hustlers that are out there that are taking good care of people, we want you come work with us. We'll help you make some extra income and get through this really rough economy. Christian, thanks for joining me. It was great hearing about that loan. I'm excited that we've got it, guys. If you want to get a hold of me, all you got to do is go to David Green24.com and use the chat feature. There you can get a hold of me directly and I'll get you put in touch with somebody on the one brokerage or anywhere else. Thanks for listening, everybody. Make sure you subscribe if you haven't already done so. And we will see you next week on Mortgage Monday.