Tag: vs.

Greenhouse Growing: on a bench vs on the floor?

Basically there are various differences between growing on a greenhouse bench vs growing on the floor itself.

There are basically 3 things: one is drainage.

On the bench you get good drainage out of the plant material.

When you water the top, the water can run out of the bottom of the container.

On the floor it's tend to be more restricted so crops on the floor tend to stay wetter longer.

Second thing is temperature.

On a bench you can have the air actually go under the bench so it can warm the growing media up.

When it's on the floor, it tends to be colder especially in the winter months the growing media temperatures are colder.

So again you don't get that water usage it's easier to get root disease development.

Third thing that could be an issue with growing on the floor is sometimes you get imperfections in the floor itself, so you can get pockets of water that can wick water back up into the growing media which again adds to thing staying too wet.

Overall I would say that growing on a bench is better because you get better airflow, you can get the temperature warmer right next to the root system and it'll help dry out your growing media.

Source: Youtube

Renting vs. Buying a home | Housing | Finance & Capital Markets | Khan Academy

Welcome back.

I'm now going to take a slighttangent and cover a topic that, I think, this is probablythe single most important video that reallyanyone can watch.

I go to all of these partieswhere I go see family.

And my wife and I right now,we live in Northern California.

And we're renting.

And I like to pointout, by choice.

And I have family members,why don't you buy? You're at that stage inlife, that's a major milestone, all of this.

There's a lot of pressureto buy.

And when I tell friends,I tell them I'm not going to buy.

Because I think I'm prettyconvinced, almost 100% convinced, that housing pricesare going to revert back.

And I'm going to do a bunchof presentations to justify why they will.

But then my friends, they'lljust throw out the statement that I hear from them, thatyou hear from real estate agents, because obviouslythey want you to buy.

Well, isn't buying alwaysbetter than renting? And I think that kind of commonwisdom comes out of the notion of, when you have amortgage or when you borrow money to live in a house, everymonth that money that you give to the bank is kindof going into savings.

That's the perception.

While when you rent,that money's just disappearing into a vacuum.

In this video I'm going to workthrough that assumption, and see if that actuallyis the case.

So let's say I have a choice.

Let's say there aretwo houses.

This is house number one.

And this is house number two.

And let's say that they'reidentical houses.

These are three bedroom, twobath, townhouses some place in Silicon Valley, whichis where I live.

And I want to live inone of these houses.

I'm indifferent as to whichhouse I live in, because they are identical.

So living in them is theidentical experience.

I can rent this housefor $3,000 a month.

Or I could buy this housefor $1 million.

And let's say that in my bankaccount right now, let's say I have $250,000 cash.

So let's see what happensin either scenario.

Let's see how much moneyis being burned.

So in this scenariowhat happens? I'm renting.

So in a given year, let's justsee how much money comes out of my pocket.

So in a given yearI pay $3,000.

$3,000 times 12 months,so I lose $36,000.

So I'll put a negativethere, because that's what I spend in rent.

$36,000 per year in rent.

And then of course Ihave that $250,000.

I'm going to put that into thebank, because I have nothing else to do with it.

I didn't buy a house with it.

And let's say that I can,in the bank, let's say I put it in a CD.

And I get 4% on that.

So let's see, 250, that'swhat? $10,000, I think.

That's 0.

04.

Right, I get $10,000 in interesta year on that.

So I get $10,000.

So plus $10,000 a yearin interest.

So out of my pocket, for theprivilege of living in this house, in Silicon Valley, withbeautiful weather, out of my pocket every yeargoes $26,000.

So that's scenario one.

So what happens if I give into the peer pressure of family, and realtors, and themortgage industry, and I buy this house for $1 million? Well I only have $250,000, whichis more, frankly, than most people who buy $1 millionhouses have.

But I have $250,000 cash.

So I need to borrow $750,000.

So I take out a mortgagefor $750,000.

And I'm going to do a slightsimplification.

And maybe in a futurepresentation, I'll do kind of a more complicated one.

In a lot of mortgages, when youpay your monthly payment, most of your monthly payment,at least initially, is the interest on the amount thatyou're borrowing.

And you pay a little bitextra on that, to bring this value down.

That's called payingoff the principal.

You can also take aninterest-only loan, but the component of the interestis the same.

Essentially, when you take atraditional mortgage, kind of a 30-year fixed, every monthyou're paying a little bit more than the interest, justto take down the balance.

But for the simplicity of thisargument, I'm just going to say that we're doing aninterest-only mortgage.

And then maybe with anyextra savings, I can pay down the principal.

And that's the same notion.

And right now, if I do 25%down, and I'm buying a $1 million house, I'll have totake a $750,000 mortgage.

I don't know what agood rate is, 6%? So let's say at 6% interest.

Soto live in this house, how much am I paying justin interest? Well I'm paying $750,000times 6% a year.

So $750,000 times 0.

06 is equalto $45,000 in interest.

That's coming outof my pocket.

And of course, on a monthlybasis, that means in interest per month, I'm paying,just to get an idea.

I'm paying about $3,700, $3,800in interest a month.

My mortgage actually might besomething like $4,000 a month.

So I pay the interest.

And thenI pay a little bit to chip away at the wholevalue of the loan.

It takes 30 years to chipaway at the whole thing.

And over time, the interestcomponent becomes less, and the principal becomes more.

But for simplicity, this is theinterest that I'm paying.

$45,000 a year.

And then of course at a party,when I start to explain this, it's like, ah-ha.

But interest on a mortgageis tax deductible.

And what tax deductible means,is that this amount of money that I spend on intereston my mortgage, I can deduct from my taxes.

I can tell the IRS thatI make $45,000 less than I actually did.

So if I'm getting taxed at,let's say 30%, what is the actual cash savings? Well I'll save 30% of this.

I'll have to pay $15,000less in taxes.

How does that work? Well, think about it.

Let's say I earned $100,000in a year.

And I normally haveto pay 30%.

So I normally pay $30,000in taxes.

Right? This is, if I didn'thave this great tax shelter with this house.

Now I have this interestdeduction.

So now I tell the IRSthat I'm actually making $55,000 a year.

And let's say my taxrate is still 30%.

it actually will probably godown since I'm — but let's, just for simplicity, assume mytax rate is still $30,000.

So now I'm going to pay $16,500in taxes to the IRS.

So how much did Isave in taxes? So I saved $13,500 from taxes,from being able to deduct this $45,000 from my income.

So let's say tax savings,plus $13,500.

Now what else goes intothis equation? Do I get any intereston my $250,000? Well, no.

I had to use that as part of thedown payment on my house.

So I'm not gettinginterest there.

But what I do have todo is, I have to pay taxes on my property.

In California, out here we haveto pay 1.

25% in taxes, of the value of the house.

So what's 1.

25%? So, taxes, this isproperty tax.

And that's actually taxdeductible too, so it actually becomes more like 0.

75% or 1%.

So let's just say 1% justfor simplicity.

Property taxes.

So 1% times $1 million.

That equals what? 1% of $1 million isanother $10,000 a year in property taxes.

And notice, I'm not talkingabout what percent of my mortgage goes topay principal.

I'm just talking about moneythat's being burned by owning this house.

So what is the net effect? I have a $13,500 tax savings.

I have to pay $10,000 –actually I have to pay a little bit more than that, butwe're getting a little bit of income tax savings onthe deduction on the property taxes.

And then I actually have to paythe $45,000 of interest that just goes out the door.

So I'm paying $41,500.

Notice, none of this $41,500is building equity.

None of it is getting saved.

This is money that isjust being burned.

So this is a completelycomparable value to this $26,000.

So in this example — thisexample is not that far off from real values.

Out here in the Bay area, I canrent a $1 million house for about $3,000.

But in this situation I amburning, every year $41,500, where I could just rent the samehouse for $26,000 out of my pocket, when I adjustfor everything.

And then people a couple ofyears ago said, oh, but houses appreciate.

And that's what wouldmake it up.

But now you know, very recently– we know that that's not the case.

And in the next video, I'lldelve into this, and a little bit more.

I'll see you soon.

Source: Youtube

Planning to buy a house? Think again! Buy Vs Rent Analysis

To rent or to buy a house is a dilemma mostpeople face.

Let's try to address this from a purely financial point of view.

Meet Joe and Alice.

Joe wants to rent a house while Alice is thinking of buying one.

Image we have 2 similar houses available — one for renting and the other for buying.

Joehas to pay a thousand dollars a month to rent the house.

Alice, on the other hand, needsat least 300 thousand dollars to buy the house.

For the sake of simplicity let's assume thatAlice can get the mortgage for 6% interest rate – which is true in many developed countries.

And the loan she has taken is a repayment mortgage.

Which means her monthly mortgagepayment will include interest plus a small part of the principal amount.

Let's say sheis planning to pay back the loan in 30 years and she also needs to contribute about thousandfive hundred dollars towards maintenance.

We also assume that the property price goesup by 2 % a year.

You may noticed that in some parts the growth is much more than that.

But according to research over a large period of time, the rate is usually between 2 to3 percent.

If we use these assumptions, Alice will haveto pay about thousand five hundred dollars every months as repayment.

On top of thatshe also needs to pay for the house insurance.

Joe, on the other hand, pays 1000 dollarsas rent.

He also saves some amount of money in the bank.

For argument sake, let's considerthis amount to be the difference between the rent and Alice's repayment amount.

Since rentis likely to go up every year, we need to consider a 3% increase in rent every year.

Quite often, people decide to sell their old house and move to a new one.

In our case,let's say Alice wants to get a buy a bigger house in 10 years.

Considering the appreciation of the value of her house, her house will be worth around370,000 dollars.

Since she still owes money to the bank, she will be left with only 110,000dollars Joe on the other hand will have savings ofabout 130,000 after 10 years.

Which means he made 20,000 dollars more by renting.

Does this mean that renting is always better than buying?Not really! Let's consider the case of Bob, who also boughta similar house at the same time Alice bought hers.

But he bought the house in another partof the city.

And the house increased by 3% in value per year – that is an increase ofjust one percent than the house bought by Alice.

When he sells the house after the same10 years, he will make around 150,000 dollars.

He made 20,000 dollars more than Joe by buyingthe house! So if you ask me whether you should buy orrent, I would say it really depends on your situation.

There are certainly advantages and disadvantages to both.

If you rent you have more freedomto move to another location.

And if you buy you will have more freedom to modify yourhouse according to your taste.

You can also see that if you invest the moneyinstead of saving, it will also change the scenario.

Source: Youtube

Renting Vs. Homeownership: Which Is Better for YOU?

Hey! So is it better to rent, or is it betterto buy a home? That is the question that virtually everybody asks themselves at one point.

Well,guess what? We here at How To Adult have an answer for you, and that answer is.

It depends.

It depends on you.

It depends on things such as your desired lifestyle and your finances.

So here are a few things to consider to help you answer that question.

Part 1: Lifestyle.

So maybe you'll see yourselfreflected in some of these things.

Let's talk renter's lifestyle.

Renters tend to move aroundmore.

Renters are free to chase job opportunities in other cities or states.

They don't haveto spend their nights and weekends having to do maintenance work on their house or theirlawn, but they do tend to pay for that luxury in the form of, on average, higher monthlyhousing payments.

What about the homeowner's lifestyle? Well,homeowners tend to be more settled, like owning a house is typically thought of as puttingdown roots.

Transaction costs of buying and selling a home are high.

So it's not a goodidea to do it often.

In fact, the average house needs five years of appreciation toearn out the closing and selling costs.

At the same time, that stability can be reallynice for people with kids or with pets or people who need that sense of consistencyin their lives.

As long as they're not breaking any rules or laws, homeowners are free torenovate or upgrade their house, which is something that, in general, renters are notable to do.

So if you're someone that really likes to make a place your own, then, like,owning a home might be for you.

(P.

S.

Let me know in the comments, does anybodyelse watch Rehab Addict? I know it started in, like, 2009, but, guess what? I just startedwatching Modern Family.

I'm usually about five to six years behind the curve.

I'm notgoing to do an impression right now, but I could.

You better believe I could.

) On the other hand, if spending your weekendspainting a fence or whatever, if that sounds like torture to you, then you've got threeoptions.

One, hire that work out.

Two, just plan on continuing to rent.

Or three, becomeTom Sawyer, which is what I'm doing.

Part 2: Finances.

Renters typically have highermonthly housing payments, but they don't usually have any other out-of-pocket maintenance costs.

And some of those costs can get really big, really fast.

Really big, really fast.

Oncea renter signs a lease, their monthly payments are locked in, so you don't have to have,like, big emergency maintenance funds if you are a renter.

Homeowners, meanwhile, do enjoy that lowermonthly payment, but they still have to deal with getting a new roof every ten years anda new water heater every seven years, and etc.

Renters may enjoy a locked-in monthlyrent payment for the one or two years that their lease runs, but homeowners tend to havea locked-in monthly mortgage payment that doesn't change for thirty years.

So, think about that for one second.

Imagineif you could freeze your rent so that it never goes up for the next thirty years, and thenafter those thirty years of paying rent have passed, they go away forever, and you havethis thing that is worth a lot of money.

That is the life of the homeowner.

Now it is at this point in the conversationthat many renters will bring up property taxes, specifically how they don't have to pay them.

That's true, but the landlord isn't just going to eat the cost.

Renters do pay property tax,maintenance, landscaping, it's just that all of those costs are built in to your monthlyrent.

Also, homeowners can think of their principalpayments going towards the mortgage every month as a kind of forced savings.

While rentersonly get shelter in return for their monthly payments, homeowners get shelter and buildequity.

Down the line, this equity can be tapped in the form of a home equity loan orline of credit, or can be returned to the homeowner when they sell the house to downsizeor move.

This "forced savings" is what many people refer to when they say a home is agreat investment.

So is being a homeowner always the right financialdecision? Not necessarily.

They usually have to save up a large down payment and that ismoney that is tied up in the house rather than working for them in, say, the stock market.

That's arguably what's called an opportunity cost, and it is something to consider.

So again, is it better to rent or buy? Thatis a question that can only be answered by you and your unique situation.

I hope that some of the points in this videowill help you make your own housing choice.

And if you do choose to buy, we're going tobe doing a "How to Buy a House" video in the future.

If you have any questions or tips,please let us know in the comments section below.

We would love to hear from you! AndI will see you guys soon! I love you, bye! Mwah!.

Source: Youtube

Affordable Housing Trends For 2016 – Rent vs. Own

>> Bob: WELCOME TO NORFOLKPERSPECTIVES CITY SLICE.

I'M BOB BATCHER.

WELL, IT'S THAT TIME WHERE YOU'RE KIND OF THINKING, WHAT'SMY FUTURE GOING TO BE WHEN IT COMES TO HOUSING.

SHOULD I RENT, SHOULD I BUY, CAN I AFFORD IT, CAN I AFFORD THERENT? WHAT SHOULD I BE DOING?I'M HEARING ALL KINDS OF THINGS.

WE HAVE TWO GUESTS ON TO SHEDSOME LIGHT ON YOUR FUTURE PLANNING.

HARVEY BILISOLY, REALTOR WITH THE REAL ESTATE GROUP, HOW YOUDOING? >> FINE.

THANK YOU, BOB.

>> Bob: AND JOE KERSEY, SENIORMORTGAGE BANKER WITH ATLANTIC BAY MORTGAGE GROUP.

BUY OR RENT, WHO WANTS TO ANSWER THAT ONE FIRST?>> SINCE JOE IS THE MORTGAGE BANKER, I'LL LET HIM OPEN WITHTHAT.

>> AT THIS POINT IN TIME, ITWOULD BE BUY.

WHEN DID YOU BUY YOUR FIRSTHOUSE? >> Bob: UNDER JIMMY CARTER'SPRESIDENCY IN 1980.

13% –>> SO OVER THE LAST 40 YEARS, THE AVERAGE RATE IS 8% ANDCURRENTLY WE'RE STILL SEEING RATES UNDER 4%, SO MAYBE THEYTICKED UP A QUARTER PERCENT IN THE LAST YEAR, THEY'RE STILLHISTORICALLY LOW, SO BY COMPARISON, WHEN YOU BOUGHT THATHOUSE BACK THEN, THE AMOUNT OF STWOUS FADE OVER THE LIFE –INTEREST YOU PAID OVER THE LIFE WOULD HAVE ALLOWED YOU TO BUYTWO OF THOSE HOUSES, WHEREAS NOW IT DEFINITELY MAKES A LOT MORESENSE TO TRY TO OWN A HOME.

THE AVERAGE RENT IN NORFOLK IS$1,071 A MONTH.

YOU COULD BUY A $100,000 HOME,YOUR PAYMENT WOULD BE AROUND 700 A MONTH.

YOU END UP WITH $70,000 OF EQUITY IN NET CASH AT THE END OFTEN YEARS VERSUS NOTHING AT THE END WITH THE RENTING, SO WHILEYOUR MONTHLY PAYMENT MIGHT BE A LITTLE CHEAPER ON THE RENT SIDE,THE FACT THAT YOU'RE BUILDING EQUITY AT THOSE LOW INTERESTRATES IS REALLY IS THE DRIVER OF THE HOME OWNERSHIP AND WHY YOUWANT TO TRY TO OWN VERSUS RENT.

>> Bob: CONVINCED ME.

>> LET ME PICK UP ON THAT.

THE DIFFERENCE BETWEEN RENTINGAND OWNING IS USUALLY 35% CHEAPER TO OWN IN THEMETROPOLITAN AREAS AND IN ALL 100 METROPOLITAN AREAS IN THEUNITED STATES, THE TOP 100, IT'S CHEAPER TO BUY THAN TO RENT.

SO WITH THE RATES AS JOE DESCRIBED, IT IS A GREAT TIMEAND WHAT WE'RE TRYING TO DO — GREAT TIME TO BUY AND WHAT WE'RETRYING TO DO IS EDUCATE BUYERS ON THE WAYS TO GO ABOUT FINDINGA HOME AND BUYING A HOME WITH THE RIGHT RATE AND SETTLING INTOTHE AMERICAN DREAM.

>> Bob: AND YOU MENTIONED THEAMERICAN DREAM AND THE REASON I BOUGHT THAT TOWNHOUSE WASBECAUSE I HAD GOTTEN MARRIED IN 1978, I WANTED TO GET A DOG, YOUONLY GET A DOG IF I — >> OWNED A PLACE.

>> Bob: HAD A FENCED-IN YARD AND MY DAD SAID GO FOR IT.

MY FIRST HOUSE PAYMENT I THINK WAS $561 A MORK NOT EVEN CLOSETO THAT NOW.

NOW AFTER WHATEVER WE WANT TOCALL IT, THE ECONOMIC BURP OR WHATEVER, THE MILLENNIALS AREMOVING AWAY FROM HOUSE PURCHASING AND GETTING INTOAPARTMENTS.

IT'S A LIFESTYLE.

>> IF YOU DON'T THINK YOU'RE GOING TO BE IN THE AREA MORETHAN FIVE YEARSING RENTING MIGHT NOT BE A BAD WAY TO GO.

>> Bob: WAIT A MINUTE, YOU'RE A MORTGAGE GUY.

>> I KNOW, BUT THERE'S A COST TO SELLING AND BUYING A PROPERTYAND YOU HAVE TO TAKE THAT INTO CONSIDERATION, BUT IF YOU THINKYOU'RE GOING TO BE HERE AT LEAST FIVE YEARS — HERE'S THE OTHERSTATISTIC, YOU SAID AFTER THE BURP.

THE PROBLEM IS RIGHT NOW RENTS ARE RISING A LOT FASTER THANANYTHING ELSE.

>> Bob: BECAUSE OF THE DEMANDFOR RENTAL.

>> EXACTLY.

SO IF YOU SAY, HEY, MY RENT'S FINE RIGHT NOW, IN TEN YEARSFROM NOW, IT JUST — YOU KNOW, 4% CLIP, YOUR RENT IS GOING TOOUTPACE THAT.

THAT'S AGAIN, THE OTHER REASONWITH THE INTEREST RATES AS LOW AS THEY ARE AND THE FACTS THATHOUSES ARE NOW STARTING TO APPRECIATE AGAIN.

WE BASICALLY HIT THE — YOU KNOW, THE PEAK OF THE MARKET WAS2006 IN TERMS OF HOUSE PRICES AND WE BOTTOMED OUT IN 2011,SOME SAY 2011 TO 2013, BUT AS THE AMOUNT OF FORECLOSURES ANDSHORT SALES BEGIN TO COME OUT OF THE MARKET, YOU SEE HOUSE PRICESRISE AGAIN AND THAT'S YET ANOTHER REASON TO WANT TO TAKETHE STEP INTO HOME OWNERSHIP.

>> Bob: OKAY, CRAZY IDEA.

BECAUSE I WAS A RENTER FOR 12 YEARS.

TOOK ADVANTAGE OF THE OBAMA PROGRAM BEING A FIRST-TIME HOMEBUYER, GOT INTO A NEW HOUSE OR A HOUSE.

CRAZY IDEA, YOU KNOW, I'M TOWARD THE END OF MY CAREER TIME AND IWANT A LIFESTYLE CHANGE, SO MY HOUSE COULD BE A GOOD RENTALPROPERTY.

SO I HAVE THAT OPTION NOW,RIGHT? >> EXACTLY, AND THAT'S THE OTHERTHING.

IF YOU'RE ABLE TO LOCK INTO THAT30-YEAR FIXED RATE, THEN YOU'RE ABLE TO, DOWN THE FUTURE, LIKEYOU SAID, IF YOU DECIDE I'M GOING TO GO LIVE IN A CONDO NOWOR RENT, WHATEVER, YOU NOW HAVE THE ABILITY TO RENT YOUR HOUSEOUT AND NOT HAVE TO, YOU KNOW, HAVE SUCH A HIGH THRESHOLD INORDER FOR YOU TO BREAK EVEN OR MAKE A PROFIT EVERY MONTH.

>> Bob: HARVEY, IS HE MAKING YOU NERVOUS HERE?>> NO, HE'S NOT.

WE'VE BEEN WORKING TOGETHER AWHILE.

>> Bob: AS A REALTOR, HOW DO YOUPREPARE SOMEBODY FOR MAKING THAT DECISION TO BUY?LET'S TAKE SOMEBODY IN THE WORKFORCE LIKE A FIREFIGHTER ORA POLICE OFFICER.

>> THAT'S WHAT WE'RE ABOUT, OURWORKFORCE HOUSING INITIATIVE IS TO FIND HOMES THAT AREACCESSIBLE AND AFFORDABLE FOR PEOPLE WHO SERVE THE COMMUNITY,BUT CAN'T AFFORD TO LIVE IN THE COMMUNITY AND THERE'S A GREATNATIONAL CRISIS ABOUT PEOPLE WHO LIVE HERE, WORK HERE, MAKE$37,000 AS A STARTING FIREFIGHTER OR POLICE OFFICER,ABOUT 41,000 IN NORFOLK AS A TEACHER, WHERE CAN THEY GO, WHATDO THEY DO? YOU KNOW, BECAUSE THEY'RESERVING THE COMMUNITY, BUT AGAIN, THEY'RE FRIED OUT BY THEBURP — PRICED OUT BY THE PURPOSE AND THE SUBSEQUENT RAISEIN THE MARKET.

WHAT JOE AND I ARE DOING ISINVENTORYING HOMES.

I AS THE REALTOR, THROUGH THEMLS SYSTEM, WHICH ALLOWS ME TO FIND OUT THAT THERE ARE 232HOMES IN NORFOLK NOW FOR SALE IN THE PRICE RANGE OF 150 TO$200,000.

WHICH WE WOULD CALL, BOB,AFFORDABLE HOUSING OR WORKFORCE HOW LONG.

AND THAT — JUST THAT TERM, WORKFORCE HOUSING MEANS HOUSINGFOR PEOPLE LIKE FIREFIGHTERS, POLICE OFFICERS, TEACHERS, WHOARE ESSENTIAL TO THE COMMUNITY.

BUS DRIVERS, THE MAINTENANCEPEOPLE WHO WORK ON THOSE BUSES.

>> Bob: NOW, YOU'VE GOT A HOUSEAT $150,000.

AT THE GOING LOWEST INTERESTRATE OFF THE TOP OF YOUR HEAD — >> THOUSAND DOLLARS A MONTH.

>> Bob: SO YOU ENTER INTO IT AND BECAUSE YOU DIDN'T MAKE THAT CARPAYMENT, YOU DIDN'T DO THIS, DIDN'T DO THAT, IT ALL OF ASUDDEN CREEPS UP ON YOU, RIGHT? >> CORRECT.

>> Bob: BECAUSE THE INTEREST RATE IS DEPENDENT UPON –>> CREDIT SCORE.

I MEAN, THAT'S ONE OF THE THINGSWE WANT TO DO.

THERE'S A LOT OF PEOPLE WHO CANAFFORD — THEY NEVER MISS A RENT PAYMENT, BUT THEY CAN'T SEEM TOSAVE AND WE WANT TO EDUCATE THEM, THERE ARE PROGRAMS OUTTHERE.

THERE ARE PROGRAMS OUT THERETHAT GET YOU THAT GRANT MONEY YOU MAY NEED TO GET YOU INWITHOUT THE DOWN PAYMENT AND LET YOU START TO MAKE THE PAYMENT.

SO INSTEAD OF PAYING THE LANDLORD, IT'S REALLY A SAVINGSPLAN.

YOU SAID, HEY, MY RENT ASTHOUSAND DOLLARS A MONTH AND MY WIFE AND I HAVE A GOAL OFPUTTING $100 A MONTH INTO THE SAVINGS ACCOUNT.

WE DON'T HAVE THE SXOT TICK LOANS OUT THERE THAT ARENEGATIVE AMORTIZATION — >> THANK GOODNESS.

>> SO YOU'RE BASICALLY SAVING EVERY TIME YOU MAKE A MORTGAGEPAYMENT.

THAT'S THE BEAUTY, ALMOST LIKE A401(K) FOR CERTAIN PEOPLE.

TEN, 20 YEARS DOWN THE ROAD WHENTHEY GO TO SELL, THAT MONEY CAN FUND RETIREMENT, COLLEGEEDUCATION, AND THAT'S WHAT YOU'RE TRYING TO HELP BUILD ANDYOU HAVE A BETTER SENSE OF COMMUNITY WHEN YOU OWN VERSUSRENTING.

>> Bob: LET'S SAY SOMEBODY'SWATCHING THIS AND SAYING, YOU KNOW WHAT, WE JUST CAME OFF THEHOLIDAYS, WE HAVE ZERO MONEY, WE HAVE A LITTLE BIT OF DEBT, A LOTOF DEBT, WE HAVE OUR CAR PAYMENT, WE'RE MAKING OUR RENT,BUT WE'D LIKE TO BUY INTO THE AMERICAN DREAM.

WHAT DO THEY DO? >> JOE AND I ARE GOING TO STARTBEGINNING IN JANG HOLDING SEMINARS FOR SOME OF THEWORKFORCE EMPLOYEES.

WE'VE BEEN IN TOUCH WITH THEPUBLIC SCHOOLS, THE BENEVOLENT FRATERNAL ORDER OF POLICE, HRT.

OUR INTENT IS TO GO TO THEM, SHOW THEM THESE ARE THE STEPSYOU NEED, THE CREDIT COUNSELING, THE CREDIT IMPROVEMENT YOU NEEDTO MAKE FOR THE YEAR BEFORE YOU EVEN THINK ABOUT THIS ASINTENTLY AS YOU'RE THINKING ABOUT IT, BUT WHAT WE ARE TRYINGTO DO IS EDUCATE AND ASSIST BECAUSE IT IS A VERY TOUGH ROADTO GO WHEN YOU'RE — WHEN YOU'VE GOT THAT, BUT AS JOE SAYS, THEYMAKE THEIR PAYMENTS EVERY MONTH.

WHEN YOU DO THAT IN A HOME AND ILOVE HIS ANALOGY THAT IT'S A FORCED SAVINGS PLAN.

WHEN YOU BUY A HOME, YOU INVEST IN THAT HOME.

THE NEIGHBORS ARE HAPPIER THAT THAT HOME IS SOLD RATHER THANRENTED.

IT'S MORE PLACID FOR THECOMMUNITY AT LARGE.

>> Bob: SO SHOULD THEY CALLTHEIR FRIEND THE REALTOR AND START DRIVING AROUND OR SHOULDTHEY START SAVING FIRST? >> REALLY, WHAT THEY WANT TO DOIS DO A FINANCIAL CHECKUP.

I MEAN, YOU WANT TO SEE WHATTHEIR CREDIT IS.

>> Bob: NOW YOU'RE SOUNDING LIKEMY WIFE.

>> YEAH, I KNOW.

YOU WANT TO FIND OUT WHERE YOUR CREDIT IS, WE NEED TO LOOK ATYOUR DEBT-TO-INCOME RATIO, BECAUSE WE DON'T WANT YOU TO GETYOUR HOPES UP, HARVEY SHOWS YOU THE PERFECT HOME, BUT YOU CAN'TGET THE CREDIT.

JANUARY IS A PERFECT TIME.

YOU FILE TAXES AND GET THE REFUND, SO INSTEAD OF TAKING ATRIP OR — MAYBE ME TAKE THAT MONEY AND PAY OFF A CREDIT CARDAND NOW YOU CAN QUALIFY AND SO NOW INSTEAD OF A 600 CREDITSCORE, YOU HAVE A 650 CREDIT SCORE AND YOU MIGHT BE ELIGIBLEFOR OTHER PROGRAMS OUT THERE WITH A LOWER INTEREST RATE, SOIT'S A GOOD TIME TO PLAN WHERE YOU'RE GOING TO BE.

AGAIN, SOME OF THESE — IN ORDER TO GO FROM RENTING TO OWNING,SOMETIMES IT TAKES A YEAR, TWO YEARS OF, HEY, WE REALLY GOTTO — IT'S LIKE GETTING A BAD GRADE IN SCHOOL.

TO TRY TO GET YOUR AVERAGE BACK UP IS VERY DIFFICULT, SO WHENYOU ARE LATE ON A COUPLE CREDIT CARDS AND MAYBE BECAUSE OFMEDICAL REASONS OR WHATEVER THE CASE MAY BE, IT TAKES TIMESOMETIMES TO HEAL THOSE AND THAT'S WHAT WE WANT TO TRY TOHELP DO SO WE CAN GET YOU OUT OF RENTING AND INTO OWNING THATWAY.

>> Bob: YOU MENTIONED A YEAR.

THAT'S — WOW.

SO IF YOU'RE INTO AN APARTMENTAND YOU HAVE A LEASE OR SOMETHING LIKE THAT, THEN REALLYLOOK AT THAT FIRST? >> CERTAINLY LOOK AT THAT FIRST,BUT I THINK IT COMES DOWN TO GETTING SOME UNDERSTANDING OFWHAT THIS PROCESS IS AND YOU JUST DON'T GO BUY A HOUSE.

IT'S A LONG INVOLVED PROCESS AND WHEN YOUR CREDIT IS SHAKY ANDYOU'RE NOT SO SURE — YOU'RE NOT GOING TO PUT YOUR FOOT IN THEWATER AND AS JOE SAYS, A GOOD TIME TO DO THAT.

WHAT WE TRY TO DO IS COME IN, WHETHER IT'S A CHURCH GROUP OR ASCHOOL GROUP, WE WILL COME AND TALK TO YOU ABOUT HOW IT'S DONE.

JOE WITH HIS DEEP KNOWLEDGE OF THE MORTGAGE BUSINESS AND THEVHD AND SOME OF THE LOANS AVAILABLE AS WELL AS CREDITCLEAN-UP, AND ME WITH THE PROPERTIES BECAUSE I KNOW WHERETHE PROPERTIES ARE.

THIS IS PART OF OUR WORKFORCEPLAN, WE WANT TO INVENTORY THESE PROPERTIES SO PEOPLE CAN LOOK ATTHEM.

SO THEY'RE NOT HAVING TO DRIVE25 MILES OR 50 MILES TO THEIR SCHOOLS TO TEACH.

ONE BIG THING ABOUT WORKFORCE IS PROXIMITY TO THE JOB, AND INTHIS RESORT AREA, WE HAVE FROM WILLIAMSBURG DOWN THE OUTSTERBANKS, IT'S VERY — OUTER BANKS, IT'S VERY TOUGH TO FINDAFFORDABLE HOUSING THAT'S CLOSE BY WHERE YOU'RE EMPLOYED.

>> Bob: THE REAL LESSON LEARNED, IS DON'T LET THE EMOTIONS GET INTHE WAY, BUT GET WITH THE PROFESSIONALS.

>> AGREED.

IT'S A SCARY PROCESS, WE'VE ALLBOUGHT, SO IT'S NOT A WALK IN THE PARK, SO YES, WE'RE HERE TOGUIDE YOU AND ASSIST YOU.

>> Bob: IT'S KIND OF COOLBECAUSE IF YOU DO BUY, THEN YOU HAVE THE MAJOR DECISIONS, SHOULDWE CHANGE THE COLOR AND YOU CAN HAVE A DREAM.

AND CLEAN GUTTERS ON WEEKENDS! THANKS A LOT.

IT'S NOT THAT HARD.

IT'S A MATTER OF DOING YOURHOMEWORK AND GETTING WITH A FROERGE AND GETTING READY TOCLEAN GUTTERS.

THANK YOU FOR JOINING US.

Source: Youtube