investing in the right financing how do you get the right debt on a deal this is this is what this is what Ron calls the capital stack huh he's got all these big words for stuff but really this is about how to get the best financing you can get out of a deal financing works like this okay basically I mean unless you're buying a house if you look at the deal the house is when you're buying real estate which we don't consider real estate a house of actually real estate just so you know I wouldn't
consider a house any more real estate than that yada I looked at this weekend there was a big house there that house is probably 30 million bucks there's a there's a yacht next to it it's twenty six million dollars I wouldn't consider either one of them investments they're unnecessary you don't need them right okay but if you were out buying a house and I know some of you out there buying houses right now and you got a bunch equity tied up in your house Tabou you should not have that okay you're gonna you're looking at
one two three percent down payment right right one two three percent down payment yes zero to five zero two five percent you can buy a house today in America we're gonna get zero percent you shouldn't be buying a house if you're looking for zero percent right the only people that should get zero percent are people that can call the bank and say hey I 100 percent alone on my deal and they're like yeah sure whatever dude you got a bunch of money in the bank okay so I'm gonna just give you a fact here and
again the more I dig into this into this space particularly around us I keep asking my attorney to let non-accredited investors invest with this in Cardone capital more I dig into this thing and the more I find out how stacked the deck is against the little guy so hey anybody almost anybody with a credit score above right Francisco yeah he's from Venezuela but we're not gonna hold that against him he's got a pulse let's give him some money he works with Grant Cardone give him some more money okay so look how she can get like
a 1 to 3 percent down payment and that interest rate run you want to pull up what the rates are today on the house because they're gonna make it really appealing for you by the way and also I've read a read an article just three days ago Jared sent it to me about the 15-year mortgage all of you they're like I'll get a 15 year rather than a 30 year there's actually proof today that the 15-year mortgage is a loser when you mortgage a house for 15 years if you look at the 15 years and
what that investments work it's a loser for those of you buying houses I mean the main reason this is the losers because it doesn't pay you income right if the payments on that house are eight hundred a month or twenty-five hundred a month who's making so this money's gonna be four point six percent and this is very important when I'm telling you right here individual person can go get a loan today okay five percent down four point six percent interest principal and interest you can be paying principal and it's just also they're gonna add a
bunch of stuff one here they're gonna encourage you to do the five percent down and then they're gonna charge you a premium for doing that on top to four point six did they never tell you about what the PMI is that it's a mortgage insurance it's it's like buy some insurance cuz we're not sure that you're actually any good we think you're good we'll give you the loan now we're gonna force you we're gonna literally like for speed use some insurance remember a bank told me one day they're like hey you got to get a
loan the deal was like five million bucks it was an apartment deal he's like you need to get a loan you need to get insurance on the deal on yourself different than PMI they weren't worried about me not paying it they were worried about me dying they said we need we need to get you some more life insurance I said do you want me to buy life insurance you buy if I'm dying I don't eat it okay now the second thing that you could borrow money on is zero not not zero one to four units
okay and you're gonna get good terms right here too you could also do this with 5% down and probably 4.8% interest okay now let me show you what I'm get my data from this was sent to me this morning there's a capital Lert latest debt marketing information on terms and rates this market is focused on China these days I was doing some research about the Chinese and the Saudis coming to America I'm constantly researching a real estate game you guys are looking at flipping one deal and I'm trying to see how do I sell to
the Saudis why because the Saudis two hundred people got arrested over the weekend the Saudis are trying to get money out of Saudi into other places where they can store their cash and they're coming to America trust me so look today okay 10-year Treasury right here ten-year Treasuries two point nine percent okay when you go down here you'll start seeing interest rate loans multifamily loan programs okay five years seven year 10 year 55 to 80 percent leverage four point seven to five point one eight greater than five million dollars when I come back from break
this is not the money I don't know if you guys can see this you probably can't see it on your screen there maybe you can now okay I get these updates every day right now we're more money for what run what's the loan we're gonna get okay notice notice these guys have to put forty five percent down to get this money from these big deals okay notice this right here commercial loan programs four point seven five four point eight five four point nine five four point seven five all the way to five and a quarter
they give you this big spread you're like oh that's cool twenty points twenty points in a deal I'm fighting right now over point zero zero six points of a deal this is called a bit I'm fighting why because it's money now I know some of you right now as soon as I start talking about the money right here in the finance and your loss you're like I have no clue what we're talking about cuz you know what we're talking about right now we're talking about stuff that's made up they making stuff up on you guys
you figured out I got to figure out the price I got to figure out my down payment no you need to figure out what the money's coming from the biggest partner you have in a real estate deal is the bank and when I come back from break I'm gonna show you how to get money a lot cheaper than this and why it should matter to you [Music]
