Let's Think About It Podcast
Welcome to the Let's Think About It Podcast with Morice (Coach Mo) Mabry! Are you ready to break free from fear, doubt, and uncertainty to unlock your true potential? Join Coach Mo on a transformative journey as we tackle the barriers hindering your personal growth. In each episode, we engage in insightful conversations with certified coaches, career professionals, and thriving entrepreneurs. Together, we uncover practical strategies to overcome self-imposed limitations and cultivate resilience. Gain clarity, boost confidence, and thrive in the face of uncertainty. Coach Mo, an Associate Certified Coach (ACC) accredited by the International Coaching Federation (ICF) and a published author, serves as your guide on this empowering quest for self-discovery and growth. Through mindfulness and mindset mastery, we empower you to navigate the inner critic and life's challenges to seize opportunities for success. Tune in to the Let's Think About It Podcast to equip yourself with the tools and inspiration needed to embrace uncertainty, conquer fear, tame the inner critic, and chart a course towards personal fulfillment. Start your journey to greatness today!
Let's Think About It Podcast
Breaking Barriers to Homeownership with Gabriella Godde
Unlock the secrets to homeownership with Gabriella Godde, a powerhouse entrepreneur 💪 and mortgage industry expert 🏠 boasting over 27 years of experience. Ever wondered if you need a large down payment to own a home? Gabriella, who began her entrepreneurial journey at 14 with a pony ride business 🐴, shatters this myth and guides you through the accessible world of FHA loans and down payment assistance programs. Together, we unravel the financial tapestry 🧵 of buying a home and highlight the long-term benefits, such as building equity 📈 and gaining tax advantages 💰. Gabriella's insights are a goldmine 💡 for those navigating the labyrinthine process of purchasing property for the first time.
Transitioning from renting to owning, we examine the freedom that comes with homeownership, from tax perks 🧾 to the liberty of making property improvements 🛠️. Gabriella and I reflect on the 2008 housing crash 📉 and discuss the stricter lending standards now in place to safeguard potential buyers 🛡️. For those in the W-2 workforce looking to bolster their financial future, we present savvy strategies to convert homes into rental properties 🏘️. With Gabriella's seasoned perspective, you'll learn why partnering with an experienced lender 🤝 and a skilled real estate agent is crucial to mastering the home-buying process. Whether you're a prospective homeowner eager to seize the benefits of property investment 📊 or simply seeking personalized advice, Gabriella's expertise offers the clarity and encouragement you need to embark on your homeownership journey 🌟.
Welcome to the let's Think About it podcast, where we embark on a journey of thoughtfulness and personal growth. I'm your host, Coach Mo, and I'm here to guide you through thought-promoting discussions that will inspire you to unlock your full potential. In each episode, we'll explore a wide range of topics, from self-discovery and mindfulness to goal-setting and achieving success. Together, we'll challenge conventional thinking and dive deep into the realms of possibility. Whether you're looking to find clarity in your personal or professional life, or seeking strategies to overcome obstacles, this podcast is your go-to source for insightful conversations and practical advice. So find a comfortable spot, chill and let's embark on this journey of self-improvement together. Remember, the power of transformation lies within you, and together we'll uncover the tools and insights you need to make it happen. So let's dive in. Welcome to another episode of the let's Think About it podcast. I'm your host, Coach Mo, and I'm here with another amazing guest. Her name is Gabriela Gotti. Gabriela, how are you?
Speaker 2:I'm wonderful. Thank you for having me. Thank you so much.
Speaker 1:Absolutely, absolutely. So one of the first things I do with my guests is you got to tell us where you're checking in from.
Speaker 2:I am in beautiful California Los Angeles, california so I feel bad for everybody that are having the floods and the tornadoes and the hurricanes. I feel I'm praying for them, but we are over here where it's nice and sunny and no tornadoes or hurricanes.
Speaker 1:We do have a tendency to deal with the fire. We do have a tendency to deal with the fire.
Speaker 2:That's true.
Speaker 1:Yes, but we're good right now. On that, we're good.
Speaker 2:We're good right now.
Speaker 1:Yes, so tell us a little bit about yourself and your background.
Speaker 2:Okay, let's see. I was actually born in Mexico close to Guadalajara. I moved to California when I was two years old and I have been a entrepreneur all my life. I actually started working not working when I was 14, but then I also started my own little business when I was 14 years old I worked at. It was called Handsome Damn Pony Rides, and since I took care of all the ponies there was like 15 ponies. Since I took care of all the ponies every week for the weekends, I started my own pony riding lessons and I had to create my own contract at the age of 14 to have the parents sign it, so that way if anything happened to the kids when they were riding the ponies, I would be protected. So that was my first businesses at the age of 14.
Speaker 2:Going in the future, here now I've been in the mortgage industry for the last 27 years. I accidentally got into this industry. My brother-in-law asked me to be his assistant until he found an assistant, because when you're in this industry it is hard to find good quality people to work for you. It is a fast pace. Being in the mortgage industry it's fast paced. It's a lots of parts going on. You have the financial part, you have the credit part, you have the banking part. You have all different parts that go together with the mortgage. So I've been doing the mortgage for the last 27 years, very happy with it, very happy to educate buyers about home loans, building wealth with buying homes.
Speaker 1:That's awesome. First thing that just pops up is misconceptions about being a homeowner. Talk to my audience about some typical misconceptions that maybe clients had when they first came to you and you helped make that shift. What are some misconceptions out there?
Speaker 2:Sure One is that people think that you need a lot of money to put for the down payment to buy a house. But I believe that the best loan out there for first time homebuyers that is a W-2 earner. They have to be a W-2 earner in order to qualify for this loan. If they are not a W-2 earner, they have to have enough income on their tax returns and a lot of times self-employed people, they don't have enough income on the net income. Their gross income looks good but not their income. So the best loan out there, I believe, is the FHA 3.5, 3.5% down. So let's just say if someone was buying a $400,000 house, that 3.5% is $14,000. We could get the seller sometimes we negotiate for the seller to pay the closing costs. So all they're really walking in with is that 3.5% and then also an appraisal and a home inspection. So three different things that they're walking in with and now they're buying a house.
Speaker 2:The reason why I think that it's so important for some people to buy houses is because you're building equity as you have that home. So let's say you bought a house for $400,000. You kept that house for 10 years and now you made, let's say, $300,000 in equity. How that looks is let's say you've bought it for 400,000. You got your loan was at 97% loan to value because you put the 3.5% down. So now you have 300 and something thousand on your loan amount. Now let's forward to 10 years later and let's say now that home is worth 700,000. That means that person that owns that home just made 300,000. If they sold that property they would make around, let's say, 200 and something thousand. If they held onto that property they could pay off that property. It could go to their children in the future and give them that wealth for them to be having a cushion to start off.
Speaker 2:So that's one myth is that you don't need to have a lot of money down. Another myth is you don't need. Some people could buy a house with zero down. There's down payment assistance programs out there for someone to buy. There's the CalHFA California program. There's the grant programs that helps. They help with 5%. 3.5% is going for the down payment and the 2% is going for the closing costs and then we get the seller to pay the rest and someone could literally buy a house with just putting up money for appraisal. The appraisal is usually like $550. So that's another misconception.
Speaker 2:One more misconception is credit. So people probably know that when you take care of your credit, that's going to get you the best interest rate. So on this type of loan, the FHA loan, you want at least a 640 credit score. So you don't need that 700 credit score. You need a 640 credit score. So you don't need that 700 credit score. You need a 640 credit score. So you don't need perfect credit, but you do want to have great credit because therefore you're going to get the best interest rate with the 720 plus FICA scores.
Speaker 1:That's great insights. I'm going to take it here on this question too, because I think it's really relevant in the times that we are, particularly here in California, because prices is off the charts and it's tough with the amount of. Let's just say you're a single parent and you have one income and the apartments just to rent apartments can be extremely expensive. What would your recommendation be to help a person who's struggling right now to make rent, to try to make that transition to homeownership? What do you coach them on? How do you help them?
Speaker 2:I would suggest if they could buy units with that same FHA loan putting 3.5% down.
Speaker 2:And then let's say if it's four units and each unit is paying $2,000 a month, so that means you have $6,000 coming in. On the other three units, that $6,000 is going to help pay for that mortgage that you just got. And then let's say that left you with maybe a 1500 payment. So the best thing would be is to buy units with 3.5% down. Of course there's the caveat that loan officers have to know how to do that loan. So if you want a seasoned loan officer, you definitely want to utilize someone that knows how to do those loans. So that's one thing. Another thing would be is let's say they don't have a lot of money to put down but they are paying their rent every month.
Speaker 2:Let's say it's a single person with one child. I would suggest finding a family member or a good friend and you guys buy a house together. So now let's say that $500,000 house, let's say that payment's $3,000 a month. Each of you can pay the $1,500. Now you keep that home for five to 10 years. You're building that equity and when you go to sell that property then you split that equity and move, move on your way. So I think that's another way is to, if the sales prices are too high or the monthly payment is too high, to find a family member or a friend that you could purchase with.
Speaker 1:What are some advice that you provide for your clients? What's your forte? What's your go-to advisor for clients that you work with?
Speaker 2:Advice. It all starts with credit. So you just want to keep your credit up. I do talk to so many people that the credit is not up to par, but you really want that credit up to par. You want to pay your credit cards on time, your car loan on time. You never want to be past a 30-day late. So that's a big ding on your credit. You also on credit, your credit balances, the high limit of what you can charge. Let's say it's $1,000. That's your max. You don't want to pay, you don't want to charge over $300. So that's 30%. So keep your credit cards at 30% and that'll keep your FICA score the highest possible.
Speaker 2:And then don't open too many credit cards. You just want, let's say, three. Three open trade lines is good, you don't want too many trade lines. And then, of course, paying them all on time.
Speaker 2:So one is credit, starting with credit. Two is keep yourself on a budget. Know what you are paying on your utilities your gas, your electric, your water, your rent and then you have your credit cards and just keep a budget of where your money is going. A lot of times we use our ATMs and we're just constantly just using that and it racks up very fast and so your money is going. A lot of times we use our ATMs and we're just constantly just using that and it racks up very fast and so your money is going to go very fast. So if you want to try to save money, you just have to keep that budget going.
Speaker 2:And then another thing is definitely get into the game of home ownership, because a lot of people think that's not the way to go, but that's actually building wealth if you are owning a home, and with that I say don't let fear get you. So have faith over fear. And the biggest risk is the biggest reward. And buying a house is on the bigger side of a risk. But you have to take that chance to get there, and I've helped so many people buy houses and now they're sitting pretty because they have that equity behind them.
Speaker 1:I think you said early on that you've been in the game for 27 years. Yeah, remember what you said.
Speaker 2:Yeah, yeah, 27 years.
Speaker 1:So you've seen a lot.
Speaker 2:Yes.
Speaker 1:What are some fears that people have when it comes to getting into this ownership, and how do you help them work through it?
Speaker 2:It is one of the biggest purchases that you are going to purchase. But if you don't purchase, what's happening is if you are paying rent every month, you are just throwing your money out the window. So the difference is if you have a mortgage and if you have, if you own a home, paying that mortgage is like putting money into a savings account for you, because it's building that equity. So in the future that is going to be money in your pocket. You don't see it right away, but in the future that's where that gain comes for building wealth for your own life. So it's a game changer and a lot of times people just think that because we're in the industry, we're trying to get people to buy. But it really is.
Speaker 2:We don't want. We don't want companies like black Iraq coming and buying up all the property in California or United States. We want people to know that we want to purchase this land ourselves. We don't want other companies we don't want like China, coming in and buying all the property that's in United States. We want to be able to be the owners of this land, and so I think it's important for homeowners or not homeowners I think it's important for people to know that we have to keep us strong by owning the land, if that makes sense.
Speaker 1:I'm going to go a little deeper on this because I think it's important. Let's just say I'm Bobby, joe Sam whatever. I've been renting for the last 20 years, and that's all I know. How do you help a person shift that mindset, though, is because that's all they know is just paying rent, and there's no plan of budget to move towards homeownership, and they don't know about the benefits of homeownership. They have a scarcity mindset. How do you help a client shift that, though? What's your insight value that you bring to help create those aha moments for your clients?
Speaker 2:I think it's showing them that once you see the building, the equity from that house, once again, if you're paying rent, your rent's not going anywhere, you're just living paycheck to paycheck and you're just getting that rent paid to, you're basically paying your landlord's mortgage for them. You're paying someone else's home for them. So if you could get that in your mind that you can be owning, you could be the owner of that home, but not only the owner of that home. But now you're building wealth. The benefits go way beyond just, but now you're building wealth. The benefits go way beyond just the equity that you're building. Now, when you file your taxes, you're actually not. The IRS is not taking as much taxes as they would if you were just renting. When you're renting you don't have any write-offs of owning the home. But when you do own a home, you're able to write off the property taxes. You're able to write off the mortgage interest, the hazard insurance. So that's all some stuff that gets written off of your property taxes. So there's another benefit to that homeowner. The other benefit as being a homeowner is you can make improvements to that house whenever you want. You can paint the house, you can redo the floors when you want to. You don't have to ask a landlord to agree to do that.
Speaker 2:So, as far as getting their fears away, I think I love educating buyers of what it is. I could only tell them as much as I can without being blue in the face of really what it is. But we're not here to be salesmen to get people to buy a home. We're here to educate you, to let you know that if you're not buying a home, you're missing the boat. The other thing that I wanted to tell you is back in 2008, when we had the crash in the homes. The only reason why we had the crash is because the lenders were providing 100% stated loans. What that means is you didn't have to qualify with your full income, you just stated what you made and now you bought a house with zero down. They were doing 100% financing. And after years of doing that type of loan, why in 2008, when the market turned, a lot of people couldn't continue paying their mortgage. So move forward to now 2024, whereas the lenders now are actually really giving loans out to people that do qualify.
Speaker 2:So we really look at their income, we look at their debt and we do a calculation. It's usually it's anywhere from 45 to 50 percent of their income is how we look to see if they could handle that mortgage payment. We don't want to give any loans out to anybody that can't afford it and that's why I said if you can't get into, if you can't, let's say, pay three thousand a month for a mortgage, find someone or buy units to do that with you and then that way in the future you could be making, let's say, $50,000 to $100,000 in the future. So the main thing is showing people that yes, it may be scary, but once you do it and what I could show them, example after example of people that I have helped get into homes and then be able to build that equity and let's say, take that equity and buy other homes as they through the years. As that goes on, it just keeps going.
Speaker 2:I also want to let people know that our W-2 earners they're like the. They don't even realize that they're the gold mine of what we look for for the mortgages, for the home loans. When someone has a W-2 income, they can get the FHA loan with the lease down, or even conventional with 3% down, either one, but they could do that every two years. They could buy a house every two years, owner occupied. They would live in that house for one year or two years, let's say. Then turn it into a rental property and then buy another house. So someone with a W-2 income earner can do that and build wealth if they really wanted to. So it's just another way of being able to have your job but then also build wealth on the side. It's basically making you money as you sleep.
Speaker 1:That's some great information. Hypothetically, I'm in the home purchase market, home buying market right now and I need to find a lender. Why would I go with Gabriela, opposed to the lenders?
Speaker 2:Perfect. That's an easy one, because I have 27 years past experience where I could help you, guide you, get you into the perfect loan program. It is one of the biggest purchases that you would be making, so you want someone on your side, an expert that is seasoned, that knows where to put you, what to do, how to put your loan together. What I tell people is a loan is like putting a puzzle together, and if you have one little piece out of place, that loan's not going to go forward. You also don't want to get the wrong program. You don't want to be put in the wrong program. You don't want to get the wrong program.
Speaker 2:So therefore, in the future, let's say someone puts you in a interest only or not, a 30-year fix. You always want a 30-year fix so that way that payment stays the same for 30 years. The only thing that changes on that 30 years is the property taxes. It goes up a little bit here and there and they always adjust it to adjust your monthly payment, but other than that, your principal interest is not going to change for that 30 years as long as you keep that same loan. So for me, it's basically having the expert behind them. I also believe that not only should you have a good lender behind you, you really need, in today's market, a really good real estate agent to find you the house to write the offer for you, to negotiate for you. So it's very important to have a good real estate agent working by your side as well.
Speaker 1:How do you collaborate with real estate agents and what's the value of having the good relationships, as a lender, with real estate agents?
Speaker 2:A real estate agent can tell if a lender is good or not. They're going to call when you put an offer in on the house. They're going to call the lender to ask them questions about you, the buyer Are you a good buyer? And if you don't know how to answer, then they're going to know that you're not a seasoned lender. A real estate agent can tell if a loan officer is seasoned and as you go through the years your name, my name, goes out there to the offers and so people get to know my name. But it's all about the communication.
Speaker 2:When the offer goes out, from day one you want to be talking to the listing agent. You want to be talking to the buyer's agent, letting them know I'm also helping the buyer's agent negotiate. I'm letting them know exactly how much they need for closing costs from the seller. So basically, the new law now for real estate agents is that the NAR settlement has made it where now the buyer has to sign a representation addendum for any real estate agent to show them a house and on that it's going to say is the buyer paying for that? Let's say, 2% to 3% to the seller, or are you asking the seller to pay for it.
Speaker 2:I still believe that, unless it's a seller's market which right now we're in a little bit of a seller's market but I still see buyers getting their closing costs paid for by sellers. It's not always going just one way, with the seller paying everything. If the buyer really wants that house, they might be paying 2% above the sales price to get it done. So just the knowledge of the lender and the realtor is very imperative when you're buying this big.
Speaker 1:When you look at the market today with interest buyer market, seller market you tell me what does that market look like today and why is it important more than ever to purchase a home now?
Speaker 2:Sure, Every time doing this for so long, every time I've asked someone when is the best time to purchase and for some reason, it just seems like it's always the best time to purchase because it's. If you're going to purchase a house and you're going to keep it for 10 years, then it's always the perfect time to purchase. If you're going to purchase a house and think that you're going to build equity within two years is not going to happen, Although it did happen for me. In 2020, I purchased a property for 550. And then in 2023, I sold it for $850,000. We remodeled it. So it just depends. But you have to know that market. You have to be with the experts for that to happen. Is that possible for you? Yes, but you have to know the markets.
Speaker 2:Why is it the perfect time to buy now? There's a shortage of houses, so we don't see that there's going to be a drop in sales prices. The interest rates are a little higher, but we know that the interest rates are going to come down. So we say don't marry the interest rate, marry the house. That interest rate can always change in the future. We don't see that the sales prices are going to come down. We see that the sales prices are going to continue to go up because there is a shortage of houses and they haven't been building. So therefore, I don't think it's completely a seller's market, but I don't think it's a buyer's market. I think it's, in the middle of what's going on, Still the perfect time to buy.
Speaker 1:So what should a potential buyer be looking for as they go into the home buying market? What are some initial things that they should be thinking about going into a buying market? Sorry?
Speaker 2:Okay, so it's okay. So, basically, where do they live? Okay, where do they live? One, do they work remote or do they have to drive and or do they have to commute? So the commute you would want to see. If you do go into work, you would want to see, okay, how far away are you willing to drive to get to work? Are you willing an hour, are you two hours? So that would be one thing is to consider that. Then, two, how big is your family? Do you have a, you, your husband, your kids? So how many bedrooms do you need? Can the kids share a room? That kind of thing. So you just have to figure out what you can you get away with, what can you not.
Speaker 2:I believe that buying a single family is better than buying a manufacturer. Definitely no manufactured. So that, just to me, it just doesn't make sense. I just always have not gone manufactured, especially in a park. Manufactured in a park, you would need 10% down. But you're also, if you think about it, a manufactured home. What that means is you can move that home. Who wants to live in a home that you can move? It's like buying a trailer, buying a motorhome trailer. So definitely stay away from a mobile home.
Speaker 2:I think single family residents are great to buy. And then there's the condo. What you want to know about condos is condos. You would need to get a conventional loan, which is still doable, but your FICA score you want, instead of that 640 FICA score, you definitely want like a 680 to 700 FICA score because you're going to purchase with a conventional loan. It could be as little as 3% down, so that's okay, but that's for a condo.
Speaker 2:And then for the units up to four units, you could use the FHA loan, which I think is an excellent loan for the W-2 earners and for the single family residents, to do the FHA 3.5. So you could go one to four units. Fha loan I think is the best loan out there. People think it's for first-time home buyers only, but that is not true. So basically, let's just say someone that owns homes and they do not have an FHA loan right now, they could purchase with an FHA loan. So it's not just for first-time home buyers, it's just the seasoned buyers. They're going to buy with conventional 20% down, but sometimes you don't have that. So FHA is your go-to for the first-time homebuyer as we get ready to wrap up.
Speaker 1:how can my audience find you?
Speaker 2:I'm very easy to find. Just Google California Mortgage Girl or my name, Gabriella Goody, which is probably going to be somewhere wherever you post this and that's it. I'm on Instagram, YouTube, TikTok, Facebook, I have all. If you just Google California Mortgage Girl, I am everywhere. I've been doing social media for a long time.
Speaker 1:Okay, you shared a wealth of information just dropping nuggets left and right, and I really do appreciate that. Any lasting thoughts that you would like to share?
Speaker 2:Yeah, I just want to tell your audience that don't have any fear to purchase a house. If you would like to talk to me five minutes, I could tell you, without running your credit, as long as you're a W-2 earner. I could tell you how much you qualify for. I could tell you what that, to that day, that interest rate would be and what that monthly payment would be. So it's not something that's hidden for you. You guys would know exactly what to do, but we definitely have the expertise to help you and to get you into that home. And, once again, don't have fear, have faith, get a home so that way you have part of this wealth building.
Speaker 1:There it is, there it is. Thank you so much, thank you, thank you, thank you.
Speaker 2:Yes, thank you for having me on. I really appreciate you as well.
Speaker 1:Thank you for joining me in this episode of let's Think About it. Your time and attention are greatly appreciated. If you found value in today's discussion, I encourage you to subscribe on your favorite podcast platform. Remember, the journey of self-improvement is ongoing and I'm here to support you every step of the way. Connect with me on social media for updates and insights. You can find me on Instagram and Facebook, at Coach Mo, coaching or LinkedIn, at Maurice Mabry, or visit my website at mauricemabrycom for exclusive content. Until next time, keep reflecting, keep growing and, most importantly, keep believing in yourself. Remember, the most effective way to do it is to do it Together. We're making incredible strides toward a better and more empowered you, so thank you, and I'll see you in our next episode.