Everyone kevin here. I think this it goes as a warning for everybody who has has a job and who's trying to build their wealth in the longer term have an art slash real estate post. Here. That's gotten some popularity came up and suggested and i thought hey let's respond to this since after all a real estate broker used to be a licensed lender.

And what i do has everything to do with helping people build their wealth. So let's take a listen here. I want to thank everyone for reading through this mess beforehand. Me and my partner bought a house about a month ago in texas.

I have to admit we were desperate to buy the house didn't consider our situation. We put 30 percent down mostly to reduce the payment as much as possible with a 4625 interest rate. Luckily enough we didn't over bid for the house. We just bid.

According to similar houses in the area this would be known as bidding. According to what the comps are which is obviously very very important and now the ugly part uh and they paid about 230 000. For the house by the way with a loan of 150 now the ugly part. My partner has their job their job has been slowing for a while now and now there are hints of layoffs in the near future for this person's partner and they themselves work in tech.

Making decent money to pay for the house until now that the industry is facing a tremendous slowdown. Maybe venture capital attack. Here also seeing a huge huge slowdown anyway. A lot of people have started to get laid off.

And i'm not precisely precisely. The most important individual here worst case scenario. We can both be unemployed in the near future. This is the solution that i'm thinking sell the house now for a huge loss and then pay even more in the tax season well first of all if you had a big loss you wouldn't pay more in the tax season.

But you'd definitely be limited in how much you could write off. But anyway. We would move into our old place. Which is a mobile house.

Which is more affordable. I've been looking for houses around the area that are still selling relatively fast. So they're kind of getting excited thinking oh. Well if homes are still selling let's let's just dump now quickly as i say i'm aware.

It will be a huge loss not a flipping situation here since the house is in good shape. Okay. Well. That's also a very important detail right there that we'll come back to that and i'm aware that the mortgage will not be happy.

How probably is it i will face a hard time getting a new loan in the future. We're both really depressed right now. There are a bunch of boxes that we need to stop unpacking and they're just sitting there we fought for a long time to get the house and now we're facing this challenge. I would appreciate any advice specifically from somebody who's been in the situation or professional in the field well we got the professional in the field situation.

But i've also been in a similar situation given that my first property that that i bought with my wife. We were barely able to afford the payment and we thought oh my gosh if one of ours just hours gets cut. We wouldn't be able to afford the property and so we actually came up with some logical solutions for this so we'll talk about those exactly let's just get get into some of those ideas. But i like to put numbers on the odds of both of you getting laid off let's start.

There. Let's say both of you have a 30 chance of being laid off well the beautiful thing that you can do is you can multiply that together and then you come up with a combined likelihood of only nine percent that both of you are going to get laid off so if you evaluate and play with numbers here you can probably see that for both of you to get laid off probably going to be pretty unlikely. But it could happen so what i like to do is just go to the worst case scenario and see what can we do to deal with it so let's think about this first of all let's make this clear the lender does not care. If you pay off your loan.

After a few months. Ideally six months that's usually the window in which they want to keep it because they want to be able to sell the loan to another party. But generally the lender makes money doing. What is known as making the loan to get points or to get some kind of spread in which that they make your loan at let's.

Say. 4625. Where you are and they sell it on the open market uh and they pick up points on the open market because. Maybe the open market has interest rates that are actually at 44.

At that time and that little difference. There is something that they can essentially get paid points for so either you pay points or the market pace points. The lender once they make the loan doesn't care this loan goes off into the mbs market. Which is the mortgage bond market and people don't care it's mortgage backed securities mbs uh the lenders really don't care if anything they want you to do another loan in the future.

So it's fine. They just want your business back you don't have to worry about that so don't don't let things that don't matter blur your decision making process here whatsoever like don't even think about taxes don't even think about the lender. Right now focus on what you have which first of all is a low odd of actually losing your job. So let's write that down or both of you losing your job.

So low odds of both uh both getting fired right. So let's put a little check mark. There uh there we go. But let's say uh right.

Now you're in a situation. Where you fear that this could happen do you ever think about how much information you have to give up when you sign up for a crypto exchange name birthday email phone number social driver license etc and i mean pretty soon they'll be asking you for your kidneys. And there's a lot of sensitive information and some of these companies have been going bk and you know what i could potentially leave them vulnerable. Even companies that don't go bk to cyber criminals.

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Meet kevin you'll get two weeks totally for free with aura. What's the first thing you should be doing well the first thing that you should really be doing before you start thinking about when you both lose your jobs is milk. The fact that you both still have your jobs and do what i've been preaching on this channel. Really forever.

But especially since november. When we had a euphoric bull market and then as that euphoric bull market ran away. I really amplified the messaging. Which is pay off your debts pay off any margin that you have credit cards car loans and start building a reserve make sure you reduce your expenses start saving more that sounds stupid.

But how much are you spending every single week going out to restaurants maybe limit that or you know what mix some tequila. If you're gonna go drinking in in uh. You know a bottle of coke or something or jack and coke and go to a restaurant with that stop overspending for alcohol at restaurants and stop going in the first place. You know if you can you know take take your drink.

And go hang out at the beach. But make sure to check local laws first. But anyway look you haven't lost your jobs. Yet so you're in a place.

Where you could still set yourself up for comfort. Now by making sure you minimize other payments that you have you know look at things like can you cut your tv bill your internet speeds do you really need the fastest in the world maybe if you do keep it fine. But does it really make a difference uh. How many cell phone services.

Do you have or or other subscriptions. Do you have that you can cut right start going through those start. There. I wouldn't be so worried right now about thinking just about that mortgage payment.

So we'll talk about that mortgage payment. Because when my wife and i bought our first home. We also considered worst case scenarios. But with logic and some planning.

We ended up finding some very useful ideas so our payment was about two thousand dollars per month. And we were making about two thousand dollars per month at the time and so what we realized is okay well if one of us had our hours get cut substantially. What we could do is we could a rent out rooms right. We had a three bedroom two bath and so we could rent two rooms probably for at least at the time six hundred seven hundred bucks apiece.

And that would make up more than half to almost 60 70 percent of the mortgage and the rest is probably just the almost the principal portion of the loan. Which is kind of just going into our for savings account. Why would we give up that for savings account. When we could just rent out rooms of four savings of owning real estate are one of the most wonderful things of owning real estate.

Now next that we could do is we could jump in and we could rent out the entire property and uh and probably rent it out for about two thousand dollars. Yeah. There'd be some incidentals right. We'd probably still be negative.

Because maybe we'd have repairs that would come up 100 200 bucks. But we could afford a slight negative. If we had to move out and just rent out the whole thing for say what our mortgages. The extra 200 or whatever we could pay we could cover that and we'd live with either friends hopefully for for a very large discount or just move back in with family just until we got back up on our feet.

And we could re you know we could return the favor to them in the future or whatever right. That's what friends and family are there for uh. So hopefully you have something you can lean on which according to your post. You do because you have a mobile home that you can move back into.

So you don't even have to worry so much about that and then the next thing that you could do is even if one of you loses a job. The first thing that you really should be considering is not oh no i'm a lame duck now and i'm going to sit here. And do nothing is you should get another job uh or or even get a better job. If you can yeah.

But even if you realistically had to get a worse job like you're all of a sudden mowing lawns or whatever. Which is not an insult to people in the landscaping business. I'm just saying like if you're going from tech or jobs that are paying you very very well and you feel like you're doing something that's beneath. You don't like there is a demand for people to work hard and get paid for good work out there.

So this is actually the time what i where i like to encourage people to double down on their skill sets start getting licenses uh get a real estate license you know get a mortgage license uh increase the if you're in tech. What can you do to learn another language that you might need for a job at you know different company that is hiring right now uh. You know you can look at companies that are hiring as well like for example american express as they're still hiring and so you wonder great are they maybe hiring some tech. Do they have offices out here in texas right these are all things that you could look for uh.

You know insight into and so that way you could start preparing. So i'm a big fan of get ready be proactive. Now. And i wouldn't make a rash decision and just go dump your property uh.

Because even if you sold it for ten thousand dollars less than what you paid for it after you're selling costs and moving costs. And everything you're still going to be down like 30 grand on this it's a terrible idea. You worked hard to save up that down payment of 30 80. Grand.

Don't uh don't don't blow. It up. So uh stay strong make the right decisions. Thank you everybody else for watching this.

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