Matt Porcaro
speaker
689 appearances
2 recordings
1 series
first heard Nov 2024
last heard 1 May
Matt Porcaro’s voice in public audio — every appearance, attributed to the second.
Trend
recordings per month · last 12 monthsRecordings per month over the last 12 months — 1 in all, peaking in May 2026 with 1.
Appearances
is massive, so when you do that, you've accomplished yourself, you've proven yourself that you can do it, and then you just ride that wave and that momentum, and that was the beauty of this.
The guidelines are very black and white. I mean, you know, at the end of the day, to answer a bunch of the questions, right? First off, it is based off of national and local loan limits for Fannie Mae FHA, right? So those you can Google, you look up FHA loan limits or Fannie Mae loan limits in Scottsdale or in Arizona, wherever you are looking to move, and you'll see that they're there.
Now you'll be surprised, often people are very surprised that it's a lot higher than you think.
for example you know in in where i'm at in new york a single family home the fha loan limit i think is like 1.4 million or something right now so respect so there is a there is a baseline obviously you're looking you're looking at some some sweet pads yeah but remember that's the loan limit now what's not to say that you you being a great deal finder yourself you find a deal that you know the arv is going to be 2.4 but you picked it up for 1.4 or one or a hundred
Or I mean, a million and you're putting 400 grand into it, it's going to be worth two and change.
And so long as you qualify for it is the big thing too. And then again, if you're going into the new residence, they're going to ask you and you plan to keep your Miami residence, they're just going to say, okay, what are you doing with the Miami residence?
are you renting it out what are you like if you're if you're covering or if you could afford both that's that's doable too it is a dock loan right so they are looking at your income sure and your debts and what that dti ratio is they look at a 50 percent debt to income ratio. That's really what they judge you off of. So that's your maximum, right?
So whatever your income is versus your debts, you want to be, your gross income needs to be 50%.
So there's a couple of different loan products that exist and they have different requirements. FHA is the stricter one. Sure. Fannie Mae has a product called the homestyle. I'm actually doing it on my own home right now. So I practice what I preach, man. We use a homestyle loan. We're renovating our own house. That's another example. We picked it up for six fifteen.
We're putting about two, three, two, three hundred into it. But it's going to be worth like one three when we're done. So we're building almost a half a million in equity.
Great question, great question. FHA, the 203k FHA is a little more strict. They're not really that strict. really just has to be integral to the house itself. So it needs to be, you know, you could renovate, you could get nice finishes, you could get like... So I could have a pool and I could redo a pool. You could redo a pool. Add the pool.
Now, the homestyle loan, which is Fannie Mae's product, which is the conventional product, is a lot more flexible. You can build a pool, a pool house, a basketball court, whatever. It kind of just gives you carte blanche. Now, they will... So obviously, there's the loan limit. But what they really look at for your average buyer is they look at what the ARV of the property is going to be.
And they give you up to 100% of that on the home style. On the FHA 203k, this is pretty wild. They'll finance 110% of the ARV. So they'll actually let you over leverage it by 10%. Obviously not something I am a big fan of as a real estate investor.
Yeah, you do, but I think the reason that FHA probably does it is because, again, they know that you're renovating it for your own home, and they probably, again, it's the owner occupancy, so they're assuming you're going to be there for a little while, so if you're willing to over-leverage it. If you're there in 10 years, the appreciation is going to make up for it and you'll be fine.
We can't trip and fall into a house anymore like we could, like society could 60 years ago, right? Or in 2005. Yeah, right.
And to that point, Ray, like, you talk about, like, the assets versus liabilities, and there's that, like, common thing that Robert Kiyosaki said is, like, you know, your own home is a liability. It's not an asset. It's other homes that become assets. Your rental properties are assets.
But your own home is a liability because typically for most people, their own home is they go in and they spend a ton of money to, you know, maintain it and landscape it and repair it and, like, Over the course of 30 years, it's not a true investment. You're not making money on it. Now, like appreciation will go up.
But again, I think his point is when you add up all the expenses and you add up like the interest that you pay over it on 30 years, you ever look at it. You know what? Obviously, a truth in lending statement is right. So when you when you take out a 30 year mortgage on a five hundred thousand dollar property over the course of 30 years, you're actually paying over double. of that 500 grand.
So in what universe is that a good investment? Right. You paid a million dollars to make 500,000. Right. Right. Now, of course it'll appreciate a little bit, but okay, maybe you break even with this method with building, you know, again, it's, it's value add investing, right? It's the BRRRR strategy.
It's a way to force yourself into some equity and basically just like press the fast forward button on the process. And that gives you that leverage and that creates it into a true, a true investment.
Showing 621–640 of 689 · page 32 of 35
← Previous
Next →