Navy Veteran To Mortgage Mentor: Ed Parcaut's Path To Financial Freedom (Episode 18)

Frank Hereda (00:01.326) Welcome everybody to another episode of focused free fit. I'm your favorite business coach, coach Frank. And today we have a special guest, Ed Parco. Ed, how you doing? I'm doing great. It's good to have you on. I'm excited for the conversation today. But instead of me going down the road and telling everyone who you are, why don't you start and tell us a little bit about yourself? EdParcaut.com (00:01.542) Welcome everybody to another episode of focused free fit. I'm your favorite business coach, coach Frank. And today we have a special guest, Ed Parco. Ed, how you doing? I'm doing great. How you doing? I'm doing great. It's good to have you on. I'm excited for the conversation today. But instead of me going down the road and telling everyone who you are, why don't you start and tell us a little bit about yourself? Frank Hereda (00:28.974) I always like to find out early years about where everybody started out and where they grew up and family life. So why don't we just hear a little bit about you and tell us that and then we'll go, we'll take a deep dive. EdParcaut.com (00:29.254) I always like to find out early years about where everybody started out and where they grew up and family life. So why don't we just hear a little bit about you and tell us that and then we'll go, we'll take a deep dive. All right. Sounds good. We'll go all the way back. All right. So my dad was an Air Force veteran and he died of Harry cell leukemia when I was 12, Agent Orange. So I went from the good side of town to dirt road poor after that because we were on barely social security. And at that time, The government said Agent Orange did not cause that. They didn't cause anything. And so they're in denial back then. And so I grew up in Turlock. That's where we actually ended up. I went back and forth between Colorado before my dad passed away. He went to wherever the next advancement was through Ma Bill. That was when they had the phone companies were all together and then they were broke apart back in the day. A lot of people don't realize that and remember that they're not old enough. I only remember from the stories. Frank Hereda (01:24.494) Yeah. EdParcaut.com (01:27.43) And so we ended up in Turlock, California. My grandparents owned a dairy in Helmar. And so after my dad died, I'd work out there during the summer, I'd work out there on the weekends, and I used to ride my bike. And that's how I got into cycling. Because it wasn't like right next door, it was miles and miles away. So and so that I learned that I did not want to be a milker when I grew up. So that's why I joined the Navy to see the world. I got to see North County, San Diego, I got I got to Camp Pendleton at the hospital there the That's where I ended up, which is a Navy hospital on a Marine base. Cause a lot of people don't realize the Marines are a department of the Navy. And the first so many years I was in, I didn't even work wards or what I was supposed to do. I was working down in a mobilization and planning place where it had to do with readiness teams and all that. And then when it was time for me to get out of that part, I was supposed to go to a ship or especially school. So I went to a specialty school that was not on a ship, which was physical therapy. And during that period of time, I started going to school, got my bachelor's, I was working on my master's and then I got out and I finished my master's when I got out. So I use the Navy for what it's supposed to be used for. Yes, you go in there, but you're supposed to get some type of career or some type of education out of it. And that's what I used it for. And I was still in San Diego and I did a bunch of different things for a while when I got out, but then ended up in the mortgage industry. Frank Hereda (02:42.222) Good for you. EdParcaut.com (02:50.662) because my neighbor had a mortgage company and the stuff I was doing was coming to an end. What I did was back then you couldn't have this is long time ago. In the early 90s, when you bought computers, they just came a certain way there was not like it like they have gaming computers now you they didn't have that you had to make your own. And so I created a system through the military exchange systems so that you could do that. Frank Hereda (03:08.398) Yeah. EdParcaut.com (03:15.142) And the company I worked for was my first mistake in business is taking a contract to a company that could not support that. And I learned a lot from that. And so then I ended up in the mortgage industry, which I like numbers, I didn't realize how much I do when it comes to money. And I was I'm able to explain to people how you can build personal wealth or home ownership by getting a mortgage and getting your first place and then figure out where you want to go from there. Frank Hereda (03:22.03) Hmm interesting Frank Hereda (03:42.19) That's a, there's a lot done. Yeah. There's a lot to unpack in that story. So I have some questions if you're willing to answer. so your dad died at 12, age and orange when you were 12. So yeah, yeah. my dad was in the military as well in Vietnam and that was a common issue. Obviously. I think it's interesting though. how. EdParcaut.com (03:42.278) I know it gave a lot there, huh? Yeah, there's a lot to unpack in that story. So I have some questions if you're willing to answer. Sure. so your dad died at 12. I w when I was 12, yeah. When you were 12. So yeah. my dad was in the military as well in Vietnam and that was a common issue. Obviously. I think it's interesting though. how, how difficult was it for you at that age? What did you learn? Frank Hereda (04:08.398) How difficult was it for you at that age? What did you learn when that took place? I thought it was interesting though that you joined the Navy, which is amazing. I think anybody that does that, I think it's a very selfless act to join the military and serve the country. But I think it's interesting that you did it knowing that, did you think much about how, you know, what he went through caused what he had and it's still something you chose to do? I think that's pretty amazing. EdParcaut.com (04:11.526) that took place. I thought it was interesting, though, that you joined the Navy, which is amazing. I think anybody that does that, I think it's a very selfless act to join the military and serve the country. But I think it's interesting that you did it, knowing that did you think much about how you know what he went through caused what he had and it's still something you chose to do? I think that's that's pretty. Yeah. Well, what happened was is so he was a mechanic on airplanes. And when he was in Vietnam, he worked every day. So that because it was a period of time, however many days you worked is how soon you could get out of there. So you worked every day so he could be out there within 10 months. But he worked on the planes that actually dropped Agent Orange and what people don't realize Agent Orange, it either killed you or didn't. It was they and they used to spray it on army people in the middle of fields like in Georgia and stuff like that and say, see, there's no problem with it. And all that, you know, they're all gone. I mean, Frank Hereda (04:48.142) Gotcha. Frank Hereda (05:06.478) Yeah. EdParcaut.com (05:06.598) My uncle's still here. He was in the Air Force at the same time, but he wasn't in that same situation. Yeah. I mean, I joined it because I thought I wanted to go in the medical field. And then I was a corpsman. I realized that's not what I wanted to do. So it saved me because I talked to so many different people who had been in the medical field and, you know, became doctors. And then like, I hate it. I don't want to do this or this or that. So, and if I would have known now what, you know, what I should have known then, I would have became a nurse. Frank Hereda (05:12.686) Yeah. So interesting. Frank Hereda (05:20.654) Gotcha. Frank Hereda (05:25.646) Ugh. EdParcaut.com (05:35.558) and then did this stuff on the side because my wife's a nurse at Kaiser and they make a lot of money, especially here in California. We're such a shortage too. I mean, yeah. What's what was your master's in international business and marketing? So I had to dual emphasis. My first, my bachelor's was just marketing. And then I had dual emphasis as marketing and international business. Cause you know, you never know what you want to do at that time. No, that's a great degree. Yeah. And so I ended up, you know, when I got in back in the, so I got in the mortgage industry for a couple of years. Frank Hereda (05:37.518) Gotcha. Frank Hereda (05:41.582) we're such a shortage too. I mean, what's, what was your master's in? Frank Hereda (05:49.294) Okay. Frank Hereda (05:57.966) No, that's a great degree. EdParcaut.com (06:05.414) And I created postcards and created direct mail. And me, myself and that person, we had a falling out. And so I got out of that business and I got into, I think it was Blue Cross or Blue Shield that's in Thousand Oaks, I can't remember, worked inside sales for people for businesses and getting insurance and all that different things, taking the calls by the phone. And that's when I started listening to what people were saying on the phone, their tones, their inflections and their voices. I could hear the background, I would learn to connect with them. And I only did it for about six months. And then I was called the guy I worked for. What happened was, my wife was his sister -in -law. So it was a family thing that happened. And he's like, dude, you got to get back down here. We're killing it. And so I got back in the mortgage industry, come to find out he was using my same postcard I had created two years prior to still get all the business in. And I'm like, okay, this is horrible now. Let me fix it. And we went from, we had about six loan officers at the time. We blew up to 26 loan officers and had 30 processors. That was a huge thing. We were doing 120 million a month when 120 million was nothing, but I mean, was huge. What year was this? This was 80. This was 96. Okay. So I was one of the people who created Frank Hereda (07:20.11) What year is this? Frank Hereda (07:25.678) Okay. EdParcaut.com (07:28.87) the direct mail stuff that was off the charts. So we had, we ended up creating a call center inside of our mortgage company before there was a thing as call centers. And we created it so much that to keep the people there, we would play video games on the computer networked, which was unheard of back then. Yeah. And so they keep them in their seat because we knew, I knew when that postcard was going to hit at Frank Hereda (07:31.374) Gotcha. Frank Hereda (07:37.87) Wow. EdParcaut.com (07:53.478) and people would be getting the mail. And soon as they got it, we were getting calls. You start hearing ring, ring, ring, ring, ring, ring, ring. And then we'd be there for hours taking all those phone calls. So it was easy to keep people that, yeah, this is, you know, they don't do this for the people now. But back then that was how we kept it. And at that point, we were doing so much volume that like the top sales guy was making 600 grand a year. And this was in 95, 96. Yeah. Frank Hereda (08:02.158) That's so crazy. Frank Hereda (08:06.766) Yeah. Frank Hereda (08:16.91) That's 96, yeah. EdParcaut.com (08:19.174) And that ended up all the way, you know, and then we had a little drop in 97, then 98 happened again. It was a freaking crazy again. And so I've lived through so many refinance booms. But if you look at the mortgage industry in a whole over the last 25 years, there's only really been good 12 years, 12 to 15 years. The rest of it's been a really downtime, just like right now. Today is really bad if you're in the mortgage industry. Just because there's no... Frank Hereda (08:45.71) Been bad though, right? I mean, 2023 was probably pretty tough too, right? I mean... EdParcaut.com (08:47.43) 2023 was probably pretty tough too, right? Well, middle of 20. So for us, it hit us in California, October of 22. Okay. It's pretty much where it stopped. It's just like the bottom of 2008 hit us where I'm at in the December of 2008. Now that was really interesting because I can remember that time, 2005, it started to really, it was really like. Frank Hereda (08:51.886) middle. Frank Hereda (08:55.566) Okay, fair enough. Yeah. Frank Hereda (09:02.862) That's right. Now that was really interesting because I can remember that time, 2005, it started to really, it was really like between 2005 and six, really, it actually started to slow in Maryland where I was. And then I remember going to Charlotte, North Carolina and having a conversation with some people out there and selling in homes and things were like, nothing happened. And then. EdParcaut.com (09:15.878) between 2005 and six really, it actually started to slow in Maryland where I was. And then I remember going to Charlotte, North Carolina and having a conversation with some people out there and selling in homes and things were like, nothing happened. And then I went to Charlotte and then it was six months later, boom. So it was like, you could follow it around the country. It was really weird how people were like, I don't know what's going on up in Maryland, but down here in the Carolinas, things are great. And then it was like, six months later. I mean, it's still good in some places where people are moving to that have Frank Hereda (09:29.358) I went to Charlotte and then it was six months later, boom. So it was like, you could follow it around the country. It was really weird how people were like, I don't know what's going on up in Maryland, but down here in the Carolinas, things are great. And then it was like, six months later. EdParcaut.com (09:44.71) You know, Detroit's good, you know, if you can, you know, because they got houses you can still get for affordable. Us, our median just in Modesto is 430 ,000. And that's big for a lot of places, but in California in general, it's 900 ,000 is the median. I was just on a talking to someone who's in Canada. And it's interesting. Yeah, but they can port. Frank Hereda (09:44.75) yeah. Frank Hereda (10:01.294) Yeah. I was just on a, talking to someone who's in Canada and, it's, it's interesting. Same thing. Yeah, but. EdParcaut.com (10:13.414) Yeah, they can take them where they can move that mortgage with them. Yeah, it's still the minimum price though. I know I know I'm but I'm saying what because people are asking about rates and about assuming these mortgages. The only two loans are assumable or FHA and VA. The problem is Frank Hereda (10:17.422) Yeah, it's still the minimum price though. I mean, you're talking for Frank Hereda (10:26.318) Yeah. EdParcaut.com (10:30.982) we went up 66 % during that period of time. So most people are trying to sell their homes, there's $150 ,000 of equity, at least if not more than that, then they're like, well, just get another loan for it. Well, that makes no sense. You might as well just rewrite a new loan. And I say these low interest rates are abusive relationship. If you really look at it, you're stuck in this relationship with this mortgage, even though you need to do something else. And it's then you have to not look at that. Frank Hereda (10:43.982) That's right. Frank Hereda (10:49.806) Yeah. EdParcaut.com (10:59.334) my payment's so great and the rate's so great, you gotta do what's best for you. If that means you gotta sell that, rent that house and buy another one so that you can get your family and what you need to be, you gotta do it. You can't stay and, because it's gonna ruin relationships or ruin other things. That's why I call it abusive relationship, because it really is. I figured that's what you meant. The rate holding people hostage. Yeah, exactly. I know not everybody's gonna catch that so fast. Yeah, well, we're in the industry, so that's where I went right off the bat. Frank Hereda (11:03.31) Agreed. Frank Hereda (11:15.534) Yeah. I figured that's what you meant. Hold the rate holding people hostage. Yeah. yeah, well we're in the industry. So I, so that's where I went right off the bat. EdParcaut.com (11:28.102) And it's helped me sell by saying it's abusive relationship. People connect with understanding, relate while they should not, you know, cause. It's like a pattern interrupts. Yeah. Frank Hereda (11:32.782) Yeah. Yeah. It's like a pattern interrupt. So since we're on the topic, it wasn't what I wanted to talk about next, but we're talking about it. So let's talk about the mortgage industry for a little bit and just the real estate industry as well. So you talked, you know, I know you've, you've spent a lot of time on, I think you also have a book, right? Financial freedom building personal wealth, right? Okay. So. EdParcaut.com (11:41.254) So since we're on the topic, it wasn't what I wanted to talk about next, but we're talking about it. So let's talk about the mortgage industry for a little bit and just the real estate industry as well. So you talked, you know, I know you've, you've spent a lot of time on, I think you also have a book, right? Financial freedom, building personal wealth. Correct. Yeah. Okay. So building wealth right now, where does someone get started? I mean, if you're, if it's tough, especially first time home buyers have it the worst, right? Frank Hereda (12:01.102) building wealth right now, where does someone get started? I mean, if it's tough, especially first time home buyers have it the worst, right? Affordability is an issue. Where do you recommend they go? I mean, having the ability to do VA is great, but now we've got some things changing in the market. There's just a lot going on right now. EdParcaut.com (12:10.182) affordability is an issue. Where do you recommend they go? I mean, having the ability to do VA is great. But now we've got some things changing in the market. It's just a lot going on right now. Well, let's stay with the VA. The VA for veterans, you should be buying period because you don't have the your payment alone is going to be a couple hundred bucks cheaper than somebody with FHA or conventional because you don't have mortgage insurance. Frank Hereda (12:37.326) Absolutely. EdParcaut.com (12:39.334) And you don't have to put any money down and most of the time you don't you get your earnest money deposit back. You don't have to put anything down. So it just depends. So veterans should be picking up everything. But one of the things you should be looking at first, your first home should not be your final home. Your first home should be a duplex, triplex or fourplex. And well, okay. Grow up. I hate that term. Frank Hereda (12:48.654) Agreed. Frank Hereda (12:57.614) Like house hacking? Yeah. Well, that term, but you know what I mean. EdParcaut.com (13:02.982) I was dude, I was one of those hackers or crackers in the day. And that meant you breaking into places looking around and you're not the way they use the term. If you want something to go viral on tik tok, just put the word hack in it. Because I you know, that's my video 750 ,000 views on one of them is that hat and it was about buying a piece of property putting a manufactured home on it, but not on a permanent foundation. So all you have to do is pay property tax on the land, but not the value of the home. And it works here in California. Frank Hereda (13:05.998) Yeah, yeah. Frank Hereda (13:09.87) Yeah. EdParcaut.com (13:31.302) It's not going to work everywhere in the United States. But and then people like that's insurance. That's tax fraud. That's I'm like, no, it's not. And then I told them to do then right before you sell it, put a permanent foundation underneath it for about five grand, you know, depending on where you're at, could be 10 grand, whatever it works. And and then you can sell as real property. And everybody's like, it's and it's a great idea. It's not going to work everywhere. And it's not going to work for everybody. But three quarters of the people that work for. So. Frank Hereda (13:48.206) Yeah. Frank Hereda (13:59.246) That's right. EdParcaut.com (13:59.974) And that's true. And that's how the whole hacking. But what I'm talking about is I've always been where your first home has to be that because you can only if you go conventional, it's only 5 % down now for that because they just changed it. It used to be more than that. Problem with FHA three and a half percent down the rents, you can't really use all the rents exactly the same way. But in VA, you can't use any of the rents. So you have to qualify for the whole thing. Frank Hereda (14:28.59) Yeah. Yeah. EdParcaut.com (14:30.246) And the reason is because a veteran can only buy a house with another veteran or their significant other. So when you can't use those rents, because then you're technically, you know, you're like, it doesn't work. And there are people out there who says you can buy a home with a veteran and somebody else you can but the problem is that other half of that mortgage or that price point that other person has to put down 12%. So why even go FHA then don't even use your VA at that time or just go get married. Frank Hereda (14:55.63) Yeah. Yeah, yeah, right. But but I think your point is well taken. Get into property, get into something and get started. EdParcaut.com (15:00.518) But but I think your point is well taken. Get into property, get into something and get started. Right? Talk to your parents and go, Hey, I want to buy this place. I have the down payment or whatever it works. And say, Hey, until help me qualify for this, you know, and help them get in, you know, because parents can help them do it to get into that property. And you can do still conventional. And they can be on there to help you as a non occupying co borrower. And you go tell them, okay, here's what I'm gonna do. we'll split the equity is going forward, we'll split whatever money we have extra after we pay, you know, we get the rents and we pay the mortgage. And then I'll eventually refinance you until then, you're in this with me. And most parents will go, that's really amazing that you thought of it all the way out like that. But we'll just help you. But most parents, you know, most kids don't think, hey, I should show all this. so that my parents understand that I really know what I'm getting into. I really want that. And they'd probably say, don't worry about it. We'll refinance it and you just get to keep it. But you should do something with somebody if you can get into something. Taking everything else into consideration. Let me add one more thing. You could buy a triplex with two other people. Each one of you have one of those as your own place. Frank Hereda (16:02.446) So taking, yeah, I agree. Taking everything else into consideration. You see this all the time. What's that? Yeah. EdParcaut.com (16:20.582) as a way to get into something because that will be cheaper than buying a single family home. Yeah. It's interesting. I wonder. Frank Hereda (16:22.478) Mm -hmm. Yeah. It's interesting. I wonder, you know, you, you come across people that are like, I did my first deal at 19. I did it at 20. I think a lot of it is, I'd love to hear your opinion. I think a lot of it is exposure. Most people just don't, when they're that age and they're younger years, they're just not on top of, I think they don't understand. Hopefully social media is helping that right now with people having access to more info. But when I, we didn't have social when I was, you know, in college and EdParcaut.com (16:31.334) You know, you come across people that are like, I did my first deal at 19, I did it at 20. I think a lot of it is, I'd love to hear your opinion, I think a lot of it is exposure. Most people just don't, when they're that age and they're younger years, they're just not on top of, I think they don't understand. Hopefully social media is helping that right now with people having access to more info. But when I, we didn't have social when I was in college and it took me a couple years and then I stumbled upon the industry and then I was like, Frank Hereda (16:54.798) It took me a couple of years and then I stumbled upon the industry and then I was like, and then I, my first real intro to all this was rich dad, poor dad, which changed everything for me. But, w you know, people have to, what would you recommend? Cause you see this every day with people trying to qualify. What do they need to be aware of? I know what I would tell somebody, but you're the expert. What would you tell someone? Hey, you really need to make sure these things are on top of before you go out and try and EdParcaut.com (17:00.262) And then I, my first real intro to all this was rich dad, poor dad, which changed everything for me. But, w you know, people have to, what would you recommend? Cause you see this every day with people trying to qualify. What do they need to be aware of? I know what I would tell somebody, but you're the expert. What would you tell someone, Hey, you really need to make sure these things are on top of before you go out and try and what do you need to, what should they be considering? Well, first thing I would tell them is have them talk to somebody like me first. Frank Hereda (17:24.174) What do you need to, what should they be considering? EdParcaut.com (17:30.214) don't take it upon yourself to whether or not you can do something, let somebody else look at your and then tell you how you need to do this. So and the reason I wrote my book, Financial Freedom, Building Personal Wealth or Home Ownership is because I wrote it the way I qualify somebody. And a friend of mine's dad was like, this is the first real estate book they talk about credit in the first chapter I said, because it's the most important thing today. It's it is everything today we're you know, in 2005, it wasn't we could do people at 560 or 570 and they'd still get a decent rate. But now you can't. And I don't care what people say where they can do VA or FHA that you can but why do you want to let's add a couple of secure credit cards add you on a couple of as authorized users on your parents stuff and your FICO score will be high enough to where you can go ahead and move forward. Because you want to get at least a 640 when you're doing FHA or VA to get a decent rate. While we're on the top. Frank Hereda (18:21.193) While we're on the topic, no, that's okay. No, it's fine. But while we're on the topic of credit, what are the determining facts, I think a lot of people don't know, and then also the weight of like trade lines or how fast you pay off. I did see something yesterday actually that I didn't know, which I thought, I didn't realize it carried as much weight as billing date versus due date and paying off your credit cards. Like paying them off every month is one thing. EdParcaut.com (18:22.79) I know I'm all over. I apologize. No, that's okay. No, it's fine. But while we're on the topic of credit, what are the determining facts? I think a lot of people don't know. And then also the weight of like trade lines or how fast you pay off. I heard, I did see something yesterday actually that I didn't know, which I was, I thought, I didn't realize it carried as much weight as billing date versus due date and paying off your credit cards. Like paying them off every month is one thing. Frank Hereda (18:50.286) But then I saw that they actually, it gives you a little bit better, carries more weight if you pay it by the bill date versus the due date. Did I see that right or wrong or do you know? EdParcaut.com (18:50.566) then I saw that they actually, it gives you a little bit better, carries more weight if you pay it by the bill date versus the due date. Do I see that right? Or do you know? I don't know. But I'll tell you this, if you pay it off before the actual due date, like you like you never, you know, like, before they create your statement, where like you put, you know, whatever, if you do that, then the credit card company will tell you say that you're an active, you won't even get in because you're not utilizing you're better off. Frank Hereda (19:03.95) Yeah. You never use it. Yeah. Frank Hereda (19:14.126) Yeah. EdParcaut.com (19:18.47) not paying the whole thing off and leaving a few bucks on there for the next month, and then go then paying the whole thing off. It's credit is very involved. But the most important thing is just pay your stuff on time. Keep your balances at 10%, which is very difficult. So I tell people every six months, ask for an increase in your balance. And then eventually, you'll get them to a certain point where you can do the 10%. And I tell people if you can't do 10%, because it's $1 ,000, I get that. Frank Hereda (19:22.574) Yeah. EdParcaut.com (19:46.758) then don't go over 30 % or you definitely don't want you once you get up to 80 90 % that is where you get on the negative credit from. Yeah, sure. So I mean, and, and history is the best. That's why I say get added on to your parents as an authorized user on a credit card they've had for a while that they still use but don't have a huge balance on because that history will trump any problems you have. And they're just so many little things you can do to get that score up to where a point where you can buy the house. Frank Hereda (19:53.806) Yeah, sure. EdParcaut.com (20:15.27) your parents don't have to give you the cards. They can take you off soon as you get the house and then you can build your credit again. But it's helped many people and that authorize user thing went away for a while, came back and it's probably going to be around for about another six to eight months until they change how we look at the FICO scores again. So back to step one, it was talk to someone like you totally agree. What else would someone do if they were, you know, come across this and let's say that they can't Frank Hereda (20:32.537) So back to step one, it was talk to someone like you. Totally agree. What else would someone do if they were, you know, come across this and let's say that they can't, they're not going to go buy a duplex cause they've got a family. So they're like, I'm not going to go buy a duplex so I can live in one side and rent out the other or they're not going to. So what's that? What's that? Well, I'm just saying most won't do that. I'm not saying they shouldn't. Yeah, I'm, I'm with you, but I'm just saying they won't do it. So. EdParcaut.com (20:43.014) they're not going to go buy a duplex because they've got a family. So they're like, I'm not going to go buy a duplex so I can live in one side and rent out the other. Why not? Where they live now. What's that? Where do they live now? Apartment? Well, I'm just saying I'm just saying, but they live in an apartment now. What's the difference? I'm with you, but I'm just saying they won't do it. So knowing that what then, you know, what's their next next best step? Say 20 % if they're not VA and they got to go. Frank Hereda (21:01.806) Knowing that, what then, what's their next best step? Save 20 % if they're not VA and they gotta go do conventional or 10 % or whatever? EdParcaut.com (21:10.694) you know, you can know because no, you don't want to save 3%. It's the first time homebuyers is 3 % conventional. Yeah, your first time. Yeah. And I'm just because if they're not the first time it's what happened in the last three years. What are you doing? Because then you'll be selling your house and then you know, you have money for a down payment. Yeah. No, my first thing is, talk to me, let me look at in this. Let me go through real quick. Talk to me. Let me look at your credit. Let me look at your income. And then let me look at your assets because the credit is the most important thing. Frank Hereda (21:17.102) Yeah, if your first time, sure. Frank Hereda (21:24.27) Yeah. Have some equity. Yeah. EdParcaut.com (21:40.422) If you don't have the income, then I'm going to tell you go get a better job. Because you need to, you know, maybe you have been at the same job forever, and you haven't looked to see what other jobs are out there. And if you look for another job, it used to be you get about 12 to 14 % increase in your income. And if you stay at the other job after that, you get maybe a 7%. But you have to do what's best for you, not what's best for your employer. And that's what most people do anyway, these days. But so look at those two things. Frank Hereda (22:04.974) Yeah, I agree. EdParcaut.com (22:07.974) And then the asset is how much you have for a down payment. Well, that's can you can get that from parent, you know, other people as gifts, other things, there's many different ways to get that. But let's get the credit in place. But what you said, well, people won't get into a duplex, triplex or fourplex. Most people won't do that. Most people just want to place a lib. But if you can get into one of those, and those people are paying you 1500 a month offset that $3 ,000 payment or $4 ,200 payment, because right now a $400 ,000 home is going to cost you 3 ,100 a month. which used to be a $700 ,000 home back in a long time ago, but you can't look at those things. During the pandemic, we thought we were all gonna die and they shut down the country, so we were in a huge recession. And that's why rates went down. We're never gonna see that huge recession again, unless they shut the country down, we have another pandemic. Yeah, that was crazy and unforeseen. I mean, you couldn't foresee that coming. Well, some people say they could. Frank Hereda (22:58.894) Yeah. Yeah. That was crazy. And unforeseen. I mean, you couldn't foresee that coming. EdParcaut.com (23:09.158) But I look at - I'd like to know who they are so I can find out what's coming next. Yeah. Well, yeah. Well, I, and you know, when we were doing all those refinances, right, the first three months of that pandemic, we couldn't get anything done. People were losing millions and millions of dollars on their lines. And then we finally got it. And then I was like, my God, we're going to take all these existing homes and then turn it into where it's no, it's not 85 % of the market to maybe 40. Frank Hereda (23:09.649) I'd like to meet them. I'd like to know who they are so I can find out what's coming next. EdParcaut.com (23:34.918) 3540 and then ended up being that right now we only do between 30 and 35 % of existing home sales and it's only death divorces and job transfers and even the job transfers people aren't going because of this rate thing. And you get and you got to do what's best for you. So forget the rates just keep moving you because eventually we'll get back. Prior to the pandemic, the lowest rate I was able to get somebody was three and a quarter, which is not bad. But I started in the business at nine. No six isn't bad. Frank Hereda (23:52.75) Yeah. Frank Hereda (24:00.334) No, it's not bad. Six isn't bad. No, six isn't bad. Do you really think that rates are going back anywhere below four again? I don't. I'm not even in your business and I know that they're not going below four. EdParcaut.com (24:05.062) Do you really think that rates are going back anywhere below four again? I know, no, I'm not even in your business. And I know that I've gone below four. No, not unless we have a huge recession, but with the amount of spending we're doing, we're never going to get this fixed. We're going to be here for a very long time. No, they've got some other issues they've got to fix without a doubt. I just, the easiest way I say to explain it. So what the fed's trying to do, it's like a family on a budget. Frank Hereda (24:19.854) no, they've got some other issues they've got to fix without a doubt. EdParcaut.com (24:31.558) And the mom and dad say we're putting a budget together, but only mom's on the budget and dad's not on the budget. He's spending it doesn't work. That's exactly what's happening with the Fed and this current administration. The Fed's saying we need to stop spending money and they're saying, no, we got to spend it because once we spend it, they can't get these programs back. We can't they can't get rid of them. Man, there's a there's a there's a long rabbit hole. I'd love to go down. I won't do it because it'll go down politics and all this other stuff. Well, politics is in everything. I do talk radio. Frank Hereda (24:48.75) Yeah. Man, there's a long rabbit hole I'd love to go down. I won't do it because it'll go down politics and all this other stuff, but. I know. EdParcaut.com (25:01.094) about mortgage and finance, but half the time we're talking about how the politics has messed this up. When President Biden signed that thing to get rid of the pipeline, I was like, my God, we're gonna have inflation. We're gonna have that's the start that was that was it. That was the day that it started this. And everybody's like, what are you talking about? I go because everybody had no idea what inflation was because it had been 42 years prior to that, that we had inflation and you had to be, you know, 55 or older to understand what inflation was. Frank Hereda (25:28.526) Yeah. EdParcaut.com (25:29.126) And that's why the last election, it didn't come into play at all. But now it's huge because it finally affected everybody. Absolutely. I'm interested to know what you think. Really doesn't matter what we think. But what you but since we're in the industry, I'm curious to know what your thoughts are on the next one to three years, because I feel like this is the next one to three years. Am I wrong? Frank Hereda (25:33.102) Yeah. Frank Hereda (25:36.59) Absolutely. I'm interested to know, what you think really doesn't matter what we think, but what you, but since we're in the industry and I'm curious to know what your thoughts are on the next one to three years, because I feel like this is the next one to three years. Am I wrong? What are your thoughts? The next next three to five, maybe even, but I'm thinking like rates pace of like real estate sales. EdParcaut.com (25:53.35) What do you mean? What is the next one to three years? Next three to five, maybe even but I'm thinking like rates pace of like real estate sales. Well, the one for we're not going to see any increase in real estate sales. Yeah, because we are so short on homes everywhere. You know, I'm just going to example I'm in California. California is supposed to build 250 ,000 homes a year just to stay with population growth. I'm not talking The people can you know, and this is political, but coming across our border looking for a place that's not what I'm talking about. I'm just talking about family creation. We were only building 120 ,000 homes for the past decade, a year and last year, we only that's a big part of what hurt us. Yeah. And we only built 70 ,000 last year. Okay. Well, if you if that's the case, then there's not enough homes and people are fighting for the same homes. We were Frank Hereda (26:28.718) Yeah. Yep. Frank Hereda (26:36.718) That's what really, that's a big part of what hurt us. Frank Hereda (26:49.262) Absolutely. EdParcaut.com (26:50.374) You know, they say four million, I say we're more like 18 million homes short nationwide in California alone. I know we're short three million homes. It's a lot. Yeah. So you can't that's 25 years of building. Yeah. So the question is, so everybody left the trade after 2000. Whatever you want to call the GFC 8910. Everybody left the trades. So then that and plus the builders just took a break, right? They slowed down so Frank Hereda (26:58.254) It's a lot. Frank Hereda (27:02.478) Yeah. Well, everybody left the trade after 2000, whatever you want to call it, the GFC eight, nine, 10, everybody left the trades. So then that, and plus the builders just took a break, right? They slowed down. So we had a huge dip in production. EdParcaut.com (27:17.382) Well, huge dip in production. Well, yeah, because if you look at the NHAB or whatever their index is called, yeah, it's that when it's under 50, they're like, no, we're not building. They needed above that. And even hired for them to go, okay, this makes sense. We're building, we're going to sell them. It's at like 43 right now. And they're not there. We can't break ground. So the two things happen, we're not getting building more homes. There is one thing that is a potential savior in all this. Frank Hereda (27:22.862) and AHB. Frank Hereda (27:28.302) Yeah. EdParcaut.com (27:46.854) which is there's different companies out there who are starting to build homes and factories. And I'm talking to a stick belt home, which is called modular, where they built, cause everything's a box. So they build the whole home. There's three shifts a day, 24 hours a day. They can pop out six homes a week. That is unheard of compared to building. So when all these places eventually get online and more of them are done and it's done in factories, then we might get caught up in half the time it would normally have took us. But that's the only thing and but that's still 10 to 15 years away. So the question over the next for me, I don't see house increases of cells because we don't have that many homes to sell. The only reason we have homes to sell back during 20 from the pandemic through was because people left California who had homes. And those homes were being able to be sold to somebody else who lived here. Right now people are leaving California, unless the movie stars in LA and stuff. don't have homes to sell. And the people down there who have those million dollar mansions, they can't sell them. They can't even give them away. Frank Hereda (28:46.158) No, they're staying. Yeah. Frank Hereda (28:55.15) Yeah. It's a, it's a really interesting, if you look at, I mean, I spend a lot of time charting where people are moving to, where they're moving from and the migration patterns in the U S it's really interesting. Really interesting. EdParcaut.com (28:56.486) It's a really interesting, if you look at, I mean, I spend a lot of time charting where people are moving to, where they're moving from and the migration patterns in the U .S. It's really interesting. Really interesting. Yeah. And people ask me why I don't leave California because you guys have this thing that I don't like that's called humidity and weather. Two things. Come to South Carolina. We'll take care of you. Yeah, I've been there. My son graduated boot camp in South Carolina. Frank Hereda (29:15.054) Well, come to, come to South Carolina. We'll take care of you. It's only 90, 98 right now. Yeah. Yeah, that's right. I forgot. Okay. EdParcaut.com (29:22.598) Yeah, yeah. And North, I think it was North Carolina, whatever. Yeah, North Carolina. I think it was. Yeah, we're right by the border. I'm just saying it was and when we were there during the summer, it was 95. And then it rained. And I've never been in a place where I couldn't breathe before. Yeah. I've been at all the places I've been in Texas, I've been everywhere, Florida everywhere, because I was in the Navy. And I had to go to different places for certain things. And I was like, okay. Frank Hereda (29:26.286) And they, well, you're, yeah, we're right by the border. So you're, you're pretty close. Frank Hereda (29:37.186) Yeah, that's funny. EdParcaut.com (29:49.062) Modesto, yeah, we get hot. This is actually we are being warned that we might get 120 in a week, which is unheard of. We've never been there before. And that constant breeze. That's the difference. Yeah, we get it off that we got off the coast. So we're in we're inland about an hour or something. But we still get in the evening if we'll get 105 overnight, we'll get down to 67 where you guys don't get that you guys stay within the same degrees. Yeah. Frank Hereda (29:58.51) But you guys have that constant breeze. That's the difference between where you are and where I'm at. Yeah. Frank Hereda (30:16.654) I'm S I can see the ocean from right my office right here and it's 105 this week and tonight it'll be 85 88. Like, you know, we won't get that even though we're by the coast. I mean, it's a little breezier at night, but yes, very. EdParcaut.com (30:18.694) I can see the ocean from my office right here. And it's 105 this week. And tonight it'll be 85, 88. Like, you know, we won't get that even though we're by the coast. Yeah, but you got warm water. Yes, we have our actual water is cool. It's like usually 65 degrees, but it's actually cooler than that right now. It's in like the 50s is like the coolest it's ever been. So air across that through the Delta comes through here, we dock down the temperatures. Like yesterday we were 97 and by 830 we were probably 71. That's now that's a great temperature. Yeah, if I was in back in San Diego where I used to live on the coast and the ocean side in that area, I was always 70 degrees. Yeah. So yeah, that's nice though. Yeah. That's why people come. We have people coming back to California from Texas and other places. Frank Hereda (30:53.166) And that's a great temperature. Frank Hereda (31:01.934) Yeah. Yeah, yeah. That's nice, though. EdParcaut.com (31:13.158) because of the weather. And another problem with like places like Florida is the average insurance is 14 grand a year. The problem with Texas if you own a home people don't realize is your property tax is 3 % of the value of your home. And then you can go up 10 % of whatever the value of that home goes up each year. So if your house went up 100 ,000, your tax base would go up 10 grand. And their tax doubles every 10 years. And people are like, what? And if you own non residential, which is for like investment properties there, your tax goes up, whatever that value that home goes up, it has never been an issue until this last major move from California and other places to Texas, and their and their values have doubled. So people's taxes have doubled. That's a lot for taxes in California, we have a prop 13. which means they can only max whatever the value of our home goes up a year, max increase 3 % of that. Yeah. Well, you got there's pros and cons. Well, I'm just saying, but yeah, so we have the weather. We have protection of taxes. Yes, we have the other stuff with the idiots here at politics, but that's again, it changed when Arnold got in, right? Even though he he's the one who messed up our politics. People don't realize what he Frank Hereda (32:14.99) Yeah. Well, you got, there's pros and cons to everywhere. We could, yeah. Frank Hereda (32:31.438) Yeah. Frank Hereda (32:35.214) It's messed, it's so messed up. It's. EdParcaut.com (32:37.446) Well, what happened was he was trying to keep Republicans in power. So they put this ballot on that said only the top two people, not the top two parties need to be on the ballot. So in a lot of areas, the top two people are always going to be Democrats. Instead of having one Democrat and a Republican and fighting actually maybe change things. And that's what messed up the politics in California. However, people are really fed up. People are tired of it. So we get called Northeast. Frank Hereda (32:54.286) Interesting. Gotcha. Frank Hereda (33:02.574) I, we get called Northeast and California. We get calls all the time. People move in here. well that too. Yeah. Yeah. If I have a buddy who left California, what's the, the, I don't know if it's a law that got passed, but he left and then they tried to come after him for more taxes. Once he left California after he left. EdParcaut.com (33:06.726) California we get calls all the time but when you have 40 million people in California you know it's gonna take a long time for everybody get out I have a buddy who left California what's the I don't know if it's a law that got passed but he left and then they tried to come after him for more taxes once he left California after he left right Frank Hereda (33:33.326) I don't know what that's, yeah. Yeah. It was pretty crazy. but anyway, pros and cons to everywhere to be honest. So. EdParcaut.com (33:33.446) I don't know what law that is. I've heard of that, but I've never seen it. So yeah, it was pretty crazy. but anyway, pros and cons to everywhere, to be honest. So I know, but if you're miserable all day because of the heat, it's in humidity, it's still miserable. Yeah, for sure. You got to, and I think everybody's, you know, everybody's going to go where they want to go. There's nothing wrong with that. Nope. I don't know. That's why some of the places where you like, where you're at, that's when people go there during the winter. Frank Hereda (33:50.446) Yeah, for sure. You got to, and I think everybody's, you know, everybody's going to go where they want to go. There's nothing wrong with that, but it's just. EdParcaut.com (34:03.686) or sometimes and you know, people have two houses. You know, people live in Arizona also have a house somewhere else in the mountains so they can get away during the summer when it's 120. Yeah. That's why we actually, you know, spend time in the mountains. Like, you know, in the winter we'll go up to the mountains or even like this time of year and you come back, you know, people to the beach during the fall and whatever. So yeah, during this time of year, it definitely gets hot. Well, it's like us. We'll be at our cabin this weekend during this hot. Frank Hereda (34:04.366) Absolutely. Yeah. Frank Hereda (34:13.762) Yeah, that's why we, we actually, you know, spend time in the mountains, like, you know, in the winter we'll go up to the mountains or even like this time of year and you come back, you know, people to the beach, during the fall and whatever. So, but yeah, during this time of year, it definitely gets hot for sure. EdParcaut.com (34:32.198) And you know, and when I bought the cab and it didn't have air conditioning, but I put it in because our heater went out and I told him, plummet for the next year I put it in my wife like made fun of me. But now she loves it because there's two months that is pretty warm. I mean, warm is 80. But you know, it's comfortable in a house at 71 to 7580 you start getting a little sticky and you're like, yeah, it's a it is a beautiful state though. I'll give you that. All right, we can move on. We can stop talking about the state and how great because we'll have all you guys come back and we can't fight. Frank Hereda (34:46.83) Yeah. Frank Hereda (34:53.678) It is a beautiful state, though. I'll give you that. California is gorgeous. EdParcaut.com (35:01.478) with you guys coming back. Well, it is pretty though. Yeah. so, okay, let's go back to building wealth. So we're talking about building wealth. You know, there's a lot of different strategies out there. I see all these different people talking about different ways and I don't think there's a right or wrong way. I think there's some better ways and then based on the times, how much do you think, multifamily office, you know, the commercial market is, is going to have a tough time here over the next year. Frank Hereda (35:03.082) Well, it is pretty though. so, okay. Let's go back to building wealth. So we're talking about building wealth. You know, there's a lot of different strategies out there. I see all these different people talking about different ways and I don't think there's a right or wrong way. I think there's some better ways. And then based on the times, how much do you think, multifamily office, you know, the commercial market is, is going to have a tough time here over the next year already kind of started, but EdParcaut.com (35:30.79) already kind of started, but mostly over the next year in certain sectors, and certain locations to certain locations. Absolutely. And then depends on what type because the other thing like California, what we're having problems with is they raise the minimum wage. And so like Rubio fish tacos just closed up 48 locations, you never get somebody else to take over that location. You have all these other places are closing up McDonald's and other stuff, you'll never get somebody else take over McDonald's place, you know, and so and that will eventually get fixed. Frank Hereda (35:32.014) mostly over the next year in certain sectors, not all sectors, in certain locations, absolutely. Yep. Frank Hereda (35:50.094) I saw that. EdParcaut.com (36:00.262) But it's, but you have that issue. So commercial, like San Francisco, beautiful place, horrible. Now people are, they're given trying to give away condos that used to be 1 .6 million. They're trying to give away for 900 ,000. So if you want a good investment, I would tell you to go to San Francisco and buy these condos and just live in them and sit there. Cause in about five years, it's going to be totally different because all these politicians are changing and people are bringing back law and order to make the end change in things. And that's what's happening. You're going to see this. Frank Hereda (36:18.51) and wait. EdParcaut.com (36:30.118) It's happened before this we're right now. And I know we're not political, but this election is we have two choices. We either change because the current administration won't change. It's not like a Clinton administration where he saw, my God, I'm not doing right. I'm going to change and get everybody and work with everybody. That's not this administration. If we this is a Carter administration. So if we don't make a change, it's going to be 70s and 80s again. Frank Hereda (36:30.51) Absolutely. Frank Hereda (36:48.206) Yes. EdParcaut.com (36:56.23) And if you don't understand what I mean by that, go get the go rent the movie, the war 19%. Well, not only that, just how dirty and lawless and all the stuff that had happened like in New York and stuff. There was a movie called the Warriors. I don't know if you remember the Warriors. It was about a bunch of gangs in New York. They're coming together to work out a thing and one of some of the main guy gets killed and they blame it on the Warriors and they're chasing them all over. But the one of them Frank Hereda (36:59.31) 18 -19 % Frank Hereda (37:13.422) EdParcaut.com (37:24.23) forget the premise of a movie, but it's in New York. And you see how nasty the subway is. You see how, how many, you know, graffiti is everywhere and trash and horrible. And that's because there's so many people living on the street and so and we're, we're there. So we need to make the change and we need and unfortunately, we only have these two choices. But you got to do the best, you know, of the two choices. But if we don't make a change, they're going to continue to do this. Frank Hereda (37:40.462) I agree. EdParcaut.com (37:52.294) and it's going to get worse. And that's what the big problem I have when I talk politics, it affects you in real estate, it affects you in your job, it affects you everywhere until my wife really hated me talking about it. My son's in the army. And he's trying, you know, he wants to get it become a nurse and while he's in so he's going to take schooling. And they usually do tuition reimbursement. But right now, they can't afford to do tuition reimbursement. But we just sent another $80 billion to Ukraine. Why don't we focus on our veterans who support us and our military first? It's frustrating. It's so frustrating. And that's the problem we have. So that's, but we'll go back to what people should do. One, when my parents, I know I keep getting all over, but it's true. Yeah. But when I was a kid, when we moved back to California from Colorado before my dad passed, we owned 20 acres in, you know, and had, you know, Frank Hereda (38:26.35) It's frustrating. It's so frustrating. Frank Hereda (38:35.022) It's true though. Look, it's true. EdParcaut.com (38:46.726) yeah, the manufactured home on it, but still was 20 acres. When they moved back to California into Turlock, they couldn't own it couldn't afford to own. They could so we had to rent. That was in the 80s. California has always been tough to buy. Everywhere has been tough to buy. So how do you buy you figure a way out you figure this out. Whether it's with a couple different people, you pull your money together, buy a place, have a contract, whatever it is. figure ways on how to do it. Don't, you know, and be careful the stuff you hear out there. A lot of times people are talking these hacks you can do. Well, some of those hacks are illegal and they've been done before. And you just haven't understood that those people have actually some of those people been to jail. It's just been 40 years ago and 30 years ago and 20 years ago. They sound new to you and they're not new. They've been around. They just sound new. So you got to be really careful. Frank Hereda (39:22.67) Yeah. Yeah. Frank Hereda (39:37.358) Well, you have that experience and that wisdom because you've been around a little while. So, and I'm getting there, not quite, I don't know how old you are. I'm 47, but, well, you still, you look young. So, but it's interesting. Yeah, there you go. That's the key everybody. So staying hydrated is huge for sure. I, so I agree. I think you're where you're stumbling across that. I agree with is. EdParcaut.com (39:42.918) I'm not quite, I don't know how old you are, I'm 47. I'm more than that. Well, you look young, so. Yeah. I drink a lot of water. Yeah. Yeah, there you go. That's the key, everybody. It is. It actually is. Drink a lot of water because it gets all that. Staying hydrated. Yeah, it's huge. For sure. Yeah. So I agree. I think where you're stumbling across that I agree with is, hey, instead of figuring out why you can't, figure out how you can and just do it, take action. Frank Hereda (40:06.574) hey, instead of figuring out why you can't, figure out how you can and just do it, take action. And I think that's a big part of it. And even if you don't have to, I think it's better if you can stay local and you can stay where you know, but if you have to buy somewhere else because that's what gets you able to be able to do it, then that's what you should do. But figuring it out, I think you're right in having a plan of how you're gonna do that. EdParcaut.com (40:12.998) And I think that's a big part of it. And even if, if you don't have to, I think it's better if you can stay local and you can stay where you know, but if you have to buy somewhere else, because that's what is the ability gets you able to be able to do it, then that's what you should do. But figuring it out, I think you're right. And having a plan of how you're going to do that. Cause I mean, some people, it depends, you know, in California, you have to make a hundred where I, where I am not, you have to make at least 130 ,000 to buy a house. Not everybody does that. Starting to become the norm. Frank Hereda (40:40.718) starting to become the norm. EdParcaut.com (40:42.79) But there's still places like in Detroit and other places that are really nice little towns that's been around forever, they're still under 200 ,000. You know? Well, you also think about, you know, the lower you, if you buy in the lower price point or below the median in America, then it has less swings when the market does change. Right. And so. But it also has less jobs, has less other place. You know, there's a reason why the prices are still the prices there. Frank Hereda (40:53.614) Well, you also think about, you know, the lower you, if you buy in the lower price point or below the median in America, then it has less swings when the market does change. And so, you know, that's probably a That's right. EdParcaut.com (41:10.982) And unless you can, unless you're self -employed, you know, and doesn't matter where you work or you can tell it, but you know, a lot of people who left California because their job said, yeah, you can work anywhere. I now saying, okay, you're gonna come back or we're gonna, you know, you're gonna have to go find a new job. Yeah. I don't have all the answers. I don't have any answers usually, but I try. Well, hey, I mean, I don't think any, you know, you have more than most because you've got experience. And I think as Frank Hereda (41:26.862) Yeah. We've covered a lot of different. Well, hey, I mean, I don't think any, you know, you have more than most because you've got experience. And I think as I've been in this industry, 22, 23 years, and you've probably been in it more. So. EdParcaut.com (41:40.262) I've been in this industry 22, 23 years and you've probably been in it more. No, I'm about 24. I'm about 27. Okay, so you and I don't know and I feel like I know nothing because I'm constantly learning and new things every day. And so can I add to that? Well, here's the thing is if you don't like the way it is today in the mortgage industry, don't worry tomorrow it's going to change it's going to be worse. So everything and that's the thing is you I stopped trying to remember everything. Frank Hereda (41:46.67) Okay, so, and I don't know, and I feel like I know nothing, because I'm constantly learning and new things every day. EdParcaut.com (42:06.854) because it's changes so much. The only thing that doesn't change is a VA. I love VA because I'm a vet and I can do amazing. I can close a VA loan in nine days, which is unheard of for most people are purchased. Yeah, and I mean, any loan I can close in that but a VA loan that's huge. And it's just because I believe time kills all deals. There's no reason to write a contract for 30 days or 45 days, right? If for 21 days or less, let's get it closed and get everybody out. If you have to let them rent it back for a couple weeks to get out of there. Frank Hereda (42:18.126) Yeah. EdParcaut.com (42:36.358) because you never know what's going to happen. You know, I agree. The problem is most lenders can't do that. They can't get it done. Go to a broker. Yeah, well, even brokers sometimes. No, go to the I can give you some names of brokers are going to do and I can tell you who they need to use and they can get it done. People who've been doing it forever who know how to do so my whole thing in life was how do I make it faster and easier? And and we had that problem this time. Let's take that out. That never happens again. And let's keep moving forward. I mean, people are shocked how they go. How do you do it? Frank Hereda (42:38.702) I agree. The problem is most lenders can't do that. They can't get it done. Yeah, well, even brokers sometimes. So it's like Frank Hereda (42:52.078) And that's good. EdParcaut.com (43:06.549) Can't everybody do it? You know, but a lot of people aren't organized. That's exactly right. And it's, it's stuff that can easily be prevented that blows the deal at the last second. And it's something that wasn't uncovered or didn't, you know, take the time to get it right the first time. And that's usually what it is. Well, a lot of these big places don't really, they don't see word, you know, fully underwritten before you write a, you write your contract, which is the great way to do it. Yeah. Frank Hereda (43:11.15) That's exactly right. And it's stuff that can easily be prevented that blows a deal at the last second. And it's something that wasn't uncovered or didn't take the time to get it right the first time. And that's usually what it is. Frank Hereda (43:32.142) which is the great way to do it. EdParcaut.com (43:35.078) You have to be that way. That's a way that way we know there's no issue. There's not going to be a problem if the transaction doesn't go forward. It's because it's the property for some reason. It has nothing to do with you. And the other thing, if you are writing the contracts and you don't get your offer accepted on this contract, ask your agent to write it as a backup. Frank Hereda (43:35.31) That's the way to do it. Yeah. EdParcaut.com (43:56.23) do that all the time. You know, I don't write contracts, but I have my client's skill if you don't get it will get in there as a backup because you have a 5050 chance that first one's going to fall out. And if you wait, then you got compete with those other five offers or 10 offers are already there. I just had a kid call me he wanted to buy the house next door. He didn't even know if he could qualify love those people because they're always making $150 ,000 a year has money or a parent to give them money and a high FICO scores. The ones who think they can and they think they know everything are the ones who have no FICO score, no income, no this, you know, so, so I went through all that. And then I'm like, yeah, you qualify. they just accepted the offer. I was just told that, you know, from over the weekend, I'm like, okay, that's fine. No big deal. Let's write it as a backup. Do you have an agent? No, I go, let me get one. And they wrote it. And then a week later, he got into contract because that one fell out and we closed that transaction. And the same time that original offer was supposed to be closed in. Frank Hereda (44:52.334) Yeah, that's awesome. EdParcaut.com (44:52.582) So they were like, wow, that's amazing. And it's like, no, that's how it should be. So that's right. Yeah. That's awesome. I agree. That's how it is. That is how it should be. Underwriting in the beginning is the key. And for me, I don't even, you know, I can tell you by just looking at the numbers without even doing anything, whether or not you're going to be able to go forward on it. And what people don't understand with like VA, there is no debt to income ratio. It's off of the Frank Hereda (44:56.462) That's right. That's awesome. I agree. That's how it is. That is how it should be. And underwriting in the beginning is the key. EdParcaut.com (45:21.83) residual income. So I've had ratios, debt to income ratios at a 73, 83. And it was the residual income that allowed them to be able to buy that property. So people don't understand that. So only FHA and conventional have the debt to income ratios you have to worry about. VA doesn't have that. And the other thing is, I don't know if it's the same with you, but we have termites here. And so, yeah. Frank Hereda (45:42.062) Good point. Frank Hereda (45:49.166) Yeah, we have them here. EdParcaut.com (45:51.366) with with used to be that the veteran can only pay for the pest report, but he couldn't pay for the repairs. Well, that's changed. Now veterans can pay for all that but there is a short form that is in p3 whatever it's a it's a VA only form that just says there's no active pests. That's all we need is a pest report. That's a clearance. So I tell them if you find a pest company, they'll do the short form plus the regular pest so you know what's going on. Frank Hereda (46:11.886) Mm -hmm. EdParcaut.com (46:18.342) and just provide that short form to the lender for the pest report. Then that way if you guys are doing repairs, whatever, we don't care. We have the clearance already. Keep going what you're doing and we don't need to wait for that. So with because with us, we're in California, we're escrow state. But when we write, right, when you sign the loan documents with us, you just they can order the wire, which is unheard of in escrow state. They normally have like three days, they got to go back and do all the funding conditions. We have no funding conditions. Everything's done up front. And so we've you know, Frank Hereda (46:38.926) Mmm. Yeah. interesting. EdParcaut.com (46:48.23) You sign in close. We had one the other day, they signed at 1130 and it's still fun and recorded the same day. And that's like how Colorado is. You sign at the table and they go, here's your keys, go get in your house. You know, so we try to do the same thing because then it's over. I don't want people to sign and go, when we go to fun, when's it going to fun? That's right. Yeah. That's what happens here sometimes. Again, find better lenders. Yeah, right. So, Frank Hereda (46:55.822) That's nice. Frank Hereda (47:06.286) That's right. Yeah. And that's what happens here sometimes. yeah, right. So, we haven't really touched on this. Let's maybe touch on this for a couple of minutes before we finish. I want to know, entrepreneurship. We really haven't talked about it a lot. You've been in the business a long time. I've been in almost as long as you, what would you say are the secrets and the keys to someone who's going to get, you know, EdParcaut.com (47:16.55) We haven't really touched on this. Let's maybe touch on this for a couple minutes before we finish. I want to know entrepreneurship. We really haven't talked about it a lot. You've been in the business a long time. I've been in almost as long as you. What would you say are the secrets and the keys to someone who's going to get, you know, help them if they, if they get into mortgage or they get into just entrepreneurship or they get into real estate or whatever right now, what are the things, what are the tools? Let's call them tools. Frank Hereda (47:34.99) help them if they get into mortgage or they get into just entrepreneurship or they get into real estate or whatever right now. What are the things, what are the tools? Let's call them tools. What are the tools and what are the keys to making sure they understand before they get in the business that helped you be successful? Because you've been in a long time. EdParcaut.com (47:44.742) What are the tools and what are the keys to making sure they understand before they get in the business that helped you be successful? Because you've been in a long time. I know just because you've been in a long time doesn't mean you're successful. No, you just got it. But you got the question is right. Well, the question is, have you been in business? Have you been in this industry 30 years of being in this industry one year each time for 30 years? Right. And someone asked me the day, what would you tell somebody who's thinking about getting in the industry? I said, go get a different job. Frank Hereda (47:54.766) No, but you gotta be able to hang around for a while. Frank Hereda (48:05.134) That's fair point. Frank Hereda (48:12.942) Yeah, I know. EdParcaut.com (48:14.878) I say I'm not kidding because this industry I mean, until it's right now is not a good time. This is not like 2009 getting in where eventually you're going to have all these homes that are short sold and people can do loans on whatever word limited new home people don't want to work with people like us. They want to work with their in house so they can control it. So you only have existing home sales. Well, there's not a lot of existing home sales compared to where it used to be. So you really have to be really good at what you do. Frank Hereda (48:23.886) I know. Frank Hereda (48:34.286) Exactly. EdParcaut.com (48:43.846) And, and again, not everybody wants to work with you. I'm a vet. I'm very direct. I'll tell you the way it is whether you want to hear it or not. Well, that irritates some really young people sometimes. Like I just recently had somebody who says, well, we went with somebody else because we feel our personalities online. That's because they want to kiss your ass. I'm not going to kiss your ass. I'm going to tell you what you need to do so you can get in this house. And you're going to love the fact that you get in this house, but I'm not going to sugarcoat it. Frank Hereda (49:02.03) Yeah. Yeah. EdParcaut.com (49:11.782) And I'm not that person. I'm a direct. This is how we get through it. And this is why we get things done in nine days. I need this document. When can when you think you can get this to me? That's not like I'm trying to pressure. I'm just trying to understand. So why no word in the look for it? People don't do that. They like, OK, I need these documents. Did you get that? no, it's been a week. Maybe I should reach out to him. No, because you didn't set expectations from the beginning. Yeah, I think that's that's fair point. Frank Hereda (49:13.998) Yeah. Frank Hereda (49:34.574) Yeah, I think that's a fair point. What else? You're saying you would tell them to get out? Yeah, yeah. So what would, let's say they, not mortgage. EdParcaut.com (49:39.59) What else you're saying? Okay, let's go back to entrepreneurship. So there's a two thing different things. Well, yeah, well, I mean, what is the business? One thing I would tell people is there's so many different ways you can make money these days have multiple forms of income. passive income, own some real estate. Don't put everything in real estate. I mean, there's a lot of people are pushing to put everything in real estate. That's great. But you never know. You know, there's a lot of affiliate marketing. Frank Hereda (50:06.35) You never know. EdParcaut.com (50:08.742) You know, I do a lot of video, I do a lot of lies, I do a lot of cup. Well, I use a couple different software and you can make money by you know, when you do your video talk about what you're using and then you have the filling link and you get 40 % of it. And before you know it, you're making 10 grand a month by just affiliate stuff. There's so many different ways to do it. People like well, should I write a book? I don't know books very expensive that you could cost you anywhere from 20 to 40 ,000 depending on how you're doing it. And what do you make on them? Three bucks when you sell it on Amazon, it's the book is not Frank Hereda (50:38.35) That's not the moneymaker. EdParcaut.com (50:38.534) a moneymaker. It's a it's a it's just to tell people what you want to get out there. I use it to send to my clients so that they know who they're dealing with. So entrepreneurship, again, it depends on what you're trying to get. I do another podcast called besides helping the brave, which is for veterans on my radio show, which is called real estate jerky, we give you something to chew on. All these are put up as podcasts afterwards everywhere. So you can find them but I do one it's called inner Edison. Frank Hereda (50:47.278) Yeah, I agree. EdParcaut.com (51:04.774) which is your greatest accomplishments come from your greatest defeats. And I talk to business people all the time about their largest defeat, whatever that is. Like I talked to Brian Smith, who brought UGG to America. And during the process of doing that, cause I remember when I was in San Diego, when, and when he was first selling them everywhere and then all of a sudden they were in Costco and he had lost the company during that period of time and he had to get it back. And so he talked about that. So there's many different ways. So it's an excellent story. Yeah. Frank Hereda (51:30.766) It's a good story, by the way. EdParcaut.com (51:34.566) And so for entrepreneurship, if you want working for somebody else, you don't control yourself control your life. They control your life. Working for yourself. You control your life. However, it is stressful. My wife is a nurse at Kaiser. When she's off, she's off. I'm not off. You know, I set boundaries. I tell people I will take calls on Sunday. And I don't really take them on Saturdays. But occasionally there is you know, you have to deal when the work business is here, you take the business. Frank Hereda (51:46.83) It is. Frank Hereda (51:50.638) She's off. Frank Hereda (52:03.47) I think that's some of the biggest misconceptions is when you're really a true professional and you do have your own business, there really is no off. You do set boundaries, but I think that the freedom part is a little bit of a myth from the hour standpoint. It's on you. It's your responsibility. You're on 24 -7. EdParcaut.com (52:03.75) I think that's some of the biggest misconceptions is when you're really a true professional and you do have your own business, there really is no off. You do set boundaries. But I think that you know, the financial freedom part is a little bit of a myth from the hour standpoint. It's it's on you. It's your responsibility. You're you're on 24 sub. Right. However, you saying that I did interview a lady who works only four hours a week and she's making a lot of money. So again, it depends. Maybe it's not the mortgage. Frank Hereda (52:28.654) Sure. What's how you set it up? EdParcaut.com (52:31.846) Yeah, well, maybe it's not the mortgage industry, or being in the real estate industry is not this is not what we're talking about. You need to find what that is for you. You need to find out what works for you. You know, a lot of people go, what are you going to do for that? I'm going to be an influencer. I'm a frickin influencer. And I don't want to be an influencer. That's not why I did what I did. It just happens to be people liked what I did. And they started watching my stuff. Yes. And you start having people reach out to do these deals with Frank Hereda (52:37.07) Yeah. Yeah. Frank Hereda (52:46.51) hehe Frank Hereda (52:56.366) Yeah. EdParcaut.com (52:59.238) But they're not always great deals and you don't know what they're trying to do. So there's so many other things just what I would tell somebody if they really want to, you know, if they don't want to run their own business, but they want a really good career, become a nurse in California, you start off at 140 grand a year just out of nursing school. And before you know it, you're making $200 ,000 a year. I knew a nurse in the ER worked part time and he made to himself 400 grand that year. And that's because when you work part time, Frank Hereda (52:59.985) Frank Hereda (53:19.662) Love it. Frank Hereda (53:25.294) Crazy. Good for him. EdParcaut.com (53:28.07) They pull you in for other ships and it's double time, triple time. Frank Hereda (53:32.43) Love it. We need them. So it's an important job. EdParcaut.com (53:33.318) But I'm just saying but if again, have that while you're building something. Yeah, I agree. But I'm not trying to say not get into it. But I got into the business. I enjoy the business. The part that I don't enjoy is the business part of the stuff. And so you have to put people in place to handle that stuff for you. You need a you need an accountant. Yeah, you need a bookkeeper. You need everything that you don't like you need to have somebody else do. Frank Hereda (53:38.382) Yeah, I agree. Agreed. Frank Hereda (53:50.638) Well, the - That's right. Well, it's your strengths and weaknesses and you have to be able to have someone that can do those things. Frank Hereda (54:01.71) That's right. Well, and you made a good point. You have to consider what you're getting into. It's like college degree nowadays, right? You have to consider what am I going to make when I get out of school if you're going to go to college so that you can pay the bills with the salary you're going to make. If you can't, then you should probably rethink it. And it's the same type of thing. What am I getting into? What am I going to make? What's the market like right now in this industry? EdParcaut.com (54:01.766) What I like to do is talk to my clients. That's all I like to do. You made a good point. You have to consider what you're getting into. It's like college degree nowadays, right? You have to consider what am I going to make when I get out of school if you're going to go to college so that you can pay the bills with the salary you're going to make. If you can't, then you should probably rethink it. And it's the same type of thing. What am I getting into? What am I going to make? What's the market like right now in this industry? Same with when your kids get to a point where they're going to go to college. I had a lady who's a masseuse. She has $140 ,000 in student loan debt. because I want our kids going to college. Okay, that's on her. It's not on them. And she can't qualify for anything, you know, no matter what. So you have to be really careful. Do we really need so when you talked about their everybody left the trades, the trades here in California, we in where I live, we have a company that it's a trade place. And they're like, they'll get scholarships for females to get into trades. And then even if it's a in management, then your first star is 80 grand a year. But I mean, this the amount of money you can make in trades these it's there was a South Park episode where have you seen that one where? OK. So I don't want South Park, but I just saw this clip. Yeah. And that's what I'm sticking with anyway. And it was about the trade guys were making there were millionaires living in these living in these mansions because nobody could do trades anymore. Frank Hereda (55:06.126) No. Yeah. Yeah. Yeah. EdParcaut.com (55:22.054) so they could charge whatever they wanted to everybody. And so we're making so much money. And that's basically where it's at. A plumber, everybody who's in the business is in the late 40s, early 50s, and they're getting ready to retire. And that means you, you know, most plumbers, yeah, I know, but I'm just trying to be nice. But I'm just saying you can start in the business as a plumber $140 ,000 a year because of the fact that there's just so much work. And the people like what? Frank Hereda (55:24.43) Heheheheh Yeah. Frank Hereda (55:36.238) even older. Yeah. Frank Hereda (55:48.078) Yep, I think it's a great idea. EdParcaut.com (55:50.886) But nobody wants to work outside anymore. Everybody wants to be an influencer or a TikTok or YouTube channel person. That's great, but it's not going to work for everybody. But you need, you know, and one of the things that you could do is whatever your business is, start a channel, but just talk about what you're doing on there. And eventually over time, it might work for you, but don't count everything because there's a lot of people who do stupid stunts. And I say that within all reason, and they make a lot of money a year doing, you know, these videos. Frank Hereda (55:59.918) and greed. EdParcaut.com (56:19.942) But that's not what I want to do. I don't want to pop this stuff on my wife and throw stuff, you know, and that's not me. So I think you're right. I think documenting and building a channel where people are learning. That's that's what we do on our channel. And we get a lot of business from it, quite frankly. And courses create courses. And the best courses that work are teaching people the bare minimum, the most stuff that you think everybody should know. That's where they make the most money, because people don't know how to get those things. Frank Hereda (56:24.238) Yeah. Well, I think you're right. I think documenting and building a edgy, like a channel where people are learning. That's, that's what we do on our channel. And, and it, and we get a lot of business from it, quite frankly. So yeah, courses. Yeah. Frank Hereda (56:51.245) Agreed. Well, good conversation today. We, we went a lot of different ways, but, I appreciate it. I appreciate the time and you sharing the experience and answering the questions. we'll have to do it again in the future. Where can people find you? Where can they go? I know you, you know, w w what would you, where would you like them to go? EdParcaut.com (56:52.586) Well, good conversation today. We went a lot of different ways, but I appreciate it. I appreciate the time and you sharing the experience and answering the questions. We'll have to do it again in the future. Anytime. Where can people find you? Where can they go? I know you, you know, what would you, where would you like them to go? Well, I'm gonna tell everybody, if you're going to start something, you should be the same across every channel. I'm Ed Parko everywhere. And that's P -A -R -C -A -U -T. Frank Hereda (57:17.87) branding. EdParcaut.com (57:19.43) It's yeah, it's a French, but I'm on Instagram. I'm Ed Parco Facebook. I'm Ed Parco, except for my original Facebook was Edward Parco at the time, but everywhere else I'm Ed Parco .com and then, you know, you can just go to my website at parco .com. I have all most of my videos on there. I have all the information on how I do stuff. My books on there. You can go to Amazon to get my book and then please read review. But my, and again, I can't, I don't work in all States. Frank Hereda (57:27.854) All right. EdParcaut.com (57:46.278) But you can get my book and they'll help you through the process so that when you do sit with somebody, you'll know exactly what they're saying. It won't be new language to you. Like, what's a loan estimate? What's a CD? What's a closing disclosure? What do you need to know? Why you need to know this stuff? Because when we do our job, we try to cover everything, but there's a lot to cover. And I find by writing that book, I don't have to, you know, here's the book. And then when I say, okay, the loan estimates coming out, go to chapter five, read that first couple paragraphs, so you can understand what you're gonna look at. Frank Hereda (58:15.246) Love it. Love it. OK. Ed, thank you. Until next time, everybody, take care, and we'll catch you on the next episode. Bye, everybody. EdParcaut.com (58:17.03) Love it. OK. Ed, thank you. Thank you. Until next time, everybody take care, and we'll catch you on the next episode. Bye, everybody. Information: Ed's: https://www.edparcaut.com/ Frank's: https://linktr.ee/fhereda