Become A SoCal Investor for 35k Down??!@!?$
Well, hello, everybody, and welcome to another episode of Real Talk. My name is Stephen Meade with Domicile Real Estate, where we are on a mission to help California's renters become homeowners, you'll notice we're doing something a little bit different today. I figured since this is real talk, we should have a real background. So this is my actual office here in the background, if you look behind me, there's a my recognize there's a book about Cliff May on there, some of you know I'm a huge architecture fan, and I used to live in a Cliff May house. So this one is going to be a little bit different.
So this video today is sponsored by us, and we're actually doing a webinar, there's a link down below to where you can sign up for it. And it's free, it doesn't cost you money, you don't have to show up on camera, it's going to be about 30 minutes. So really something kind of being aware of your time. But we've had a lot of interest from people talking about investing in real estate, and a lot of this interest comes from younger people or people that are newer, to owning real property. So sometimes it's not always age, but experience. And, you know, they're interested in saying, How do I expand my real estate portfolio? How do I, you know, own something that is not just a place to live in? But also how do I own investment property?
And, you know, really, in California, there's a lot of things kind of stacked against you. Right? The the rate on investment property loans is huge, right? It's like a much higher rate, you need a big downpayment. I mean, there's there's just kind of a lot of these things that stack on top to keep you from doing that. But there is kind of a solution to this. And it's something we've been looking at for a while, and we've been kind of running the numbers on it. And this isn't an option for everybody. But I think this might be an option for a lot of people. And right now, FHA loans are incredibly favorable to low downpayment, people who want to buy a multi unit property, where they live in one of the units and rent out the other.
Obviously, the most common way to do this is with a duplex where you move into one of the units on the property or something like or maybe there's a front house and a back house. And this really gives people a taste of being a landlord of, of kind of owning that piece of investment property. And you know, you may have the ability to refinance that loan later. And you don't necessarily have to remain in that property forever living in one of the units. And this is really a great way to get your foot in the door, it's a great way to get started.
And so, you know, one of the key things is, you know, for example, right now, there is a duplex for sale in Long Beach, which is, which is where I am located, it's got a back house, it's a three bedroom, and then it's got sort of a little one bedroom, one bath apartment that's detached and separate. And that property is for sale for a million dollars. And right now, you can get 30 year fixed rate financing in the mid fives for that property, which really makes I mean, it's a huge deal, right?
Because it means that you are in a position of essentially, you know, doing what every investor wants, which is you're making money off of somebody else's money, right, you're making money off the bank's money, you're, you're able to qualify for something that is more expensive than you would otherwise be able to qualify on your own. And the reason you're able to do that is because that's a smaller unit, the rent actually counts towards your qualifications for the loan. And that's really sort of where the magic in this is. combined that with, you know, FHA recently reduced the mortgage insurance.
So this means that you can buy a property with three and a half percent down, you can buy a property where you live in one of the units and rent out the others and become an a property investor, with only three and a half percent down. So in that million dollar example, that's a $35,000 downpayment. Well, that's nothing to sneeze at, you know, that's much more accessible than the one at 25 or 30%. That is frequently required on multi unit property. So this is just something huge. And I think it's a strategy right?
One of the things we frequently talk about on this channel is this idea of delayed gratification of making good decisions now making long term decisions about your financial future. People who own the property they live in, have a net worth, that is 30 times greater. So it's not just like it's 20% More 30% More is 30 times greater than those who rent the property that they live in. If you take that one step further, the net worth of those who own investment property is even higher than that. Right.
And so I think if you're the kind of person in California, you're looking for that backdoor that loophole, right, that thing that's going to give you an edge, you know, for the next 10 years. And that's really what we're going to discuss in the webinar. So if this is something that you are interested in, and you do not have to be a first time homebuyer to qualify for this, the only requirement is that you live in one of the units when you purchase the property, we're going to actually go through the numbers on a webinar, real life examples, and we're going to take it out 10 years, and we're going to show you want your difference really a net worth is that 10 year point into the future, because I think that's really where the magic of this is, is it's it's not that, you know, someone else is going to pay your rent, and you're going to live rent free off of other people. I mean, that's not realistic numbers wise in California, but you can certainly be common and real estate investor with the same level of net monthly payment that you would have otherwise, just buying a property on your own. And I think to me, that's huge to be able to do that.
So if you're interested in this, if this sounds like something that you're interested in, I think this is really a way for people to get ahead. It doesn't require a huge downpayment. The credit qualifying is actually a little bit more lenient. On FHA loans, there's really a lot of things in your favor, and they recently reduced the mortgage insurance premiums and the rates are low on this. I mean, really, it's kind of the stars are sort of aligning for people as a way to help them get ahead.
And I think, you know, that's something that I've always thought about, right is that, you know, whether we like it or not in the direction that things are going, I feel like we're kind of at a moment in society where, you know, I don't know what the future is going to bring. But I think sort of relying on the government to help everybody I don't, I don't know if that's something that I would rely on. I think this is a way for people to really kind of take some action, and really affect their own futures.
And if that's something you're interested in, the signup is down below. We would love to help you with that. If you cannot wait for the webinar, and you want to talk to us about this. Now, definitely reach out and do that as well. As always questions and comments. We love those. Don't forget to like, subscribe and hit that notification bell. And of course, be sure to sign up for our free webinar. You do not have to show up on camera, I promise. It'll just be me. And again, it's going to be 30 minutes. We're not looking to make this kind of a long thing. I think most of you are pretty smart. And you can if you're watching these videos, you're definitely smart. And you can kind of grab the concepts quickly and figure out if this is something that really you want to kind of dive into and that might work for you. So anyhow, thanks so much for watching. Have a great day, everybody. And we'll see you again real soon.