Alex:. Friends and family. It's your friend, Alex Ortiz from Sunset Homes Real Estate. Once again, some more finance information with Gordon Cooper, from New American Funding. Say Hi Gordon.
Gordon:. Hello everybody.
Alex:. Here we go. So today's topic, we're going to be talking about uh, owning rental property. Is that correct?
Gordon:. That's right.
Alex:. All right, so you've brought up some three points, that I thought that were really great to hear and you've talked about wealth and using real estate as you know, part of that.
Gordon:. Yeah, the three parts there, one stocks, bonds. And the third one we were going to talk to you about is real estate. And we believe real estate as rental property, is one way to building that well.
Alex:. Now, there are a few different types of uh, owning rental property. You can flat out just purchase rental property and start renting it out. Um, but there's another way that you, if you're already an existing homeowner, and let's say you want it to move somewhere else, uh, it would probably be beneficial depending on how long you've owned the house, I would assume. um, to rent that house out and buy the next house. Is that correct?
Gordon:. That's very possible. You could easily turn your current house rented out. That'll create continuous incomes and let somebody else make that mortgage payment. You then go buy another house and with a small down payment, you can move into that property. and have, uh, yourself two homes and continued to create the wealth. The third way we were talking.
Alex:. so as you purchase your new home, someone else's paying off the existing home, paying off your, basically putting money in your own bank account. Essentially That's the way I view owning a home. it's saving a, essentially a savings account.
Gordon:. Right. And the appreciation, if you've seen what's going on with property, you can have $100,000, even if it's 10 years from now, that's a $100,000 more that you created because you took the right steps.
Alex:. You probably wouldn't have made that money elsewhere. I mean that's, that's a pretty good chunk of change for just the average person, right? It's not like I would say investment savvy.
Gordon:. That's right. Just look at your furrow long cane. You can decide what's going on, but what else do you have working for you besides yourself.
Alex:. So there we go. I mean, are there any other steps that you would recommend in terms of a rental property? Um, in terms of financing or anything like that?
Gordon:. In terms of financing, biggest thing about that is you just have to be able to have some down payment. If you're going to start with your first house as a rental property. so savings, savings, savings, then you're going to invest that money into a property that will give you a rate of return that's going to be way better than the bank.
Alex:. Now, let me ask a question. Do you think that it would be okay to use a little bit of your, like let's say you're a little bit of your equity on your current home to purchase the next home?
Gordon:. that's possible. but you really have to crunch the numbers to make sure you're making the right decisions because your home is your home and you want to make sure you're staying in your home.
Alex:. That's right. You don't want to like mess with basically you don't want to use your, uh, your house as a piggy bank. Is that what [unintelligible]
Gordon:. I don't really recommend that.
Alex:. Okay. Some good honest information. Maybe that's a good information right there. So once again, fam, uh, this video was basically on, uh, owning a rental property. If you're currently owning a home, um, and let's say you lived there for quite a long time and you're ready to move, but you don't want to give up that house, there is a possibility for you to be able to keep that house rented out. Have someone else either, uh, pay that mortgage off or continue, you know, paying into your own bank account and then purchasing another home. Is that correct?
Alex:. All right guys. Well, my name is Alex Ortiz from Sunset Homes Real Estate. This is Gordon Cooper, from New American Funding. If you have questions regarding finance, call this guy, or just call your trusted lender. I like this guy, because I know him and I've worked with them for quite awhile. Um, but, uh, anything else you want to say?
Gordon:. Oh, let's make the phone call.
Alex:. All right. Have a good day. Information is down below. Take care. Bye.