How to Buy a Home TODAY and Get a 20% DISCOUNT

0:00Are your ad campaigns lighting up the dashboard? But not the pipeline. That's bullspend. And marketers are calling it out in... dashboard confessions. My boss asked for results, so I opened my dashboard for the only positive sounding metric I had. Impressions. Cut the bullspend. See revenue? Not just reach. LinkedIn delivers the highest return on ad spend of major ad networks. Advertise on LinkedIn. Spend $250 on your first campaign and get a $25 credit. Go to LinkedIn.com slash campaign, turn sick edition supply. Alrighty folks, do you want your own housing crash? We'll get ready. We're going to go through some math, some numbers. So please get out a piece of paper because we're going to give you a lot of numbers, but it is imperative. And it is important that you understand this math because if you want a 20% discount on your next home purchase, I know exactly how you can do it. Math and mortgage guy, I sent you a task this morning about five and a half and eight percent.

1:03Sounds like you've done some homework for us, right? Right. Yeah, because that's the thing. People are up in arms about interest rates, interest rates are up down their sideways, but that's only part of the equation, right? The purchase price is another big part of it. And to your point, you know, payment is what matters to people. I know that you know that and investors and and older occupants alike, like they're trying to get to a certain payment that fits in the budget. And so yeah, the task you told me you said, Hey, let me know what a 400 K purchase looks like from a monthly payment perspective with a five and a half percent rate versus eight percent rate. Yeah. And the reason I wanted to do this is again, I want to push the idea of using this buyer's market to your advantage. And I figured back at five and a half percent, it was still very much a seller's market. It was a lot of competition. Inventory is low. So I want to go, Hey, let's if we could snap our fingers and make interest rates five

2:10and a half today with a fixed purchase price, the question was, what's the payment? So let's run that through that scenario first. So again, if if you could get a five and a half percent mortgage, what is the outcome of this decision? If you did 10% now in a $400,000 purchase and I did taxes and insurance that are, you know, California numbers, but for this example purpose, five and a half percent interest rate, $400,000 purchase, your monthly payment all in is about $2,600 a month. So let's set this up again, folks. I told you to get a piece of paper. So you're going to write down $400,000 purchase, which is today's price. You're going to assume 10% down, so $40,000. And you know, we're going to assume you had a five and a half percent mortgage. And the first number to write down in circle is $2,600. Because we know, at least I think we know, we can't get five and a half percent mortgages today. They're not available, right? They're they're they were yesterday.

3:10So we're trying to help you understand how you can get a great discount today. So there you go. So now we're going to fast forward and understand the problem. So same deal, 400K house, 10% down. And now we're going to assume in 8% mortgage. What is that payment, Matt? That payment is $3,200 a month. $600 more. Yeah, so circle that number two. So we've circled two numbers. $600 is what we want. What we're comfortable with. $3,200 is what we get today. That's a $600 delta. We are not happy. We are not participating. We don't qualify. Yada, yada, yada. Now the question is, because we are in a buyer's market, because it is Q4, because it is winter, because sellers are distressed, because this, that, the war, the other blah, blah, blah, blah. The question is, if I'm comfortable at $2,600. And not $3,200. And today's interest rate is 8%, not 5.5.

4:15How much house can I afford and have a $2600 payment? And that answer is $325,000 purchase price. So folks, congratulations. You just got a $75,000 discount. Now if you understand this math, you could actually use this when writing your offers. Now this is not going to work on first day listings. It's not going to work. It's not going to work every time. But if you can communicate to your real estate agent or the buyer's agent that you are qualified for $2,600 a month and you really like this house, but given today's interest rates, you can't afford it. And you can't afford this. You are at least giving the seller an option. Now in reality, what should happen is that seller should go, you know what? Instead of giving you $75,000 discount, what if I gave you $15,000 in rate buy down? So instead of paying 8%, maybe you're paying 7%.

5:18And then instead of giving you $75K off, maybe I'll sell it to you for $50. Again, this is all about negotiating to your $2600. The beauty about real estate investing, the beauty about working with math, the mortgage guy, is there's lots of ways to play with today's numbers to get you to a $2600 payment. So folks, get your head out of your ass. Use this buyer's market to your advantage, write dozens of offers, and go get your $2600 payment. Stop waiting on the sidelines. Because if you wait for rates to drop to 5.5, you're going to get run over. Don't get run over. This is actually a great lesson, Mike, in something that you know, you put it really well or this exercise hopefully helped people think about things differently. I try to get this point across a lot where no two deals are the same. Everyone's different. Everyone's got different motivations.

6:18And a few times that I can remember, somebody came to me really clear about, here's what I'm looking to do. And in one case, it was like an investment property. We need this thing. We need to do something with the mortgage that gets us a $3600 payment. No, you're a payment. That's the key to this negotiation. Yes. Right. And knowing that, I said, listen, go ask the seller for this price, but this amount of credit with that amount of credit, we're going to buy it down to 5.99% to get that payment. So as someone who's buying a home, you're going to live in, you should do the same thing. You should say, right. And that's the thing that gets me is people get so caught up in interest rate. Interest rate is just one of those things where, for whatever reason, people have been taught, above 7%, man, this is gnarly. I don't know if you've seen that thing going around where it says, nobody wants to borrow $400,000 at 8% after 10 years, you still owe $368,000 or whatever it is.

7:23I've seen that. It's just people are taught that high interest rates are such a terrible thing. But through this exercise, like you've shown, don't focus on just one piece of the puzzle. Focus on what am I trying to get to from a payment perspective? And quite honestly, you and I both know if somebody goes out there and writes a deal at a big discount and gets a house for $325,000 that might have been a $400,000 house at some point in the last three years. And they have an 8% interest rate attached to it. The good news is the seller can ever come back and say, hey, rates are down. I want 400 now. You bought it at $325. Exactly. And then your taxes are set on that. You refriors from now to a $5.99. And now you're not just $2,600 that you signed up for because you got a discount on the price, but now you're $2,200, $2,300 a month. Exactly. No, rate and term reef.

8:23That's where this, people don't realize how magical and special the 30 year fixed rate that is on residential. It's a one way bet. If you lock in today at 8% and heaven forbid, they're 10% in three years, it doesn't matter. Your payment doesn't change. But if they're 8% today and in three years, they're 6%. Congratulations. Rate and term refi, your $2,600 goes to $2,300 and you win again. Quite the instrument. So yeah, it's not the perfect time for everybody to buy. And I've been getting a lot of heat about that. No, I disagree. No, it is the perfect time. This is the best time in the last 12 years to buy. If you know what payment you're comfortable with, this is the first buyer's market I have seen in 12 fucking years. People don't know how to use it to your advantage. Your sellers are motivated. Your sellers are freaking out. There's no competition. This is the best time to buy a home.

9:27If you do the work, you have a buy box, you know your numbers and you're willing to follow up and negotiate. Don't have that attitude, Matt. This is the best time to buy. Yep. I mean, you may be right. Yeah. And that's the thing. No, this is maybe. There's I am. Maybe they got to me. How the doomer's got to you. All the doomer's on YouTube just pounded me in the comments about how I'm such an idiot. And you know, I came back in town. I got a little cold or some head things or whatever. So I'm not in my right mind, Mike. Thanks for snapping me back into reality. No, again, I do think this is the best. And again, I don't want you in this example to go back to your piece of paper. I do not want you to have I do not want you to buy a 400 K house with an 8% mortgage and a $3200 payment. I want you to buy a 400 K house at 325 with an 8% mortgage and a $2,600 payment.

10:27We are solving for the payment. Price and interest rate are irrelevant. It's the payment that you're comfortable with is the payment that you get approved for when you get approved for a home, it's not because of the price or the rate. It is the payment. Let's solve for the payment you are comfortable with. Let's write dozens of offers. Let's find your motivated seller work with a professional mortgage broker because there's 17,000 different ways you can structure this thing to get to your 2600 dollar payment. Your chances in Q4 of 2026 have never been better to get that house with the right payment. It is a great time. Don't let the dooms. Right. I think you're right. Tomorrow is the first day of Q4. Q4 historically is always a great time to buy because the only people that are on the market. October to December. Technically to January 31st. I've done 80% of my transactions. Right. People who are listing them have to sell.

11:28It's not like tax on. I'm going to spruce it up and put it on the market the day after the Super Bowl. These are people that have to sell and I know it. You know it. Man, it is a tough time to be a seller. I would not want to be somebody who just, you know, take advantage of that. We've got to get this house sold because there are going to be a lot of discounts. There's going to be a lot of negotiating. Buyers are going to get some smoking deals. Folks, no, your number's for 2026. Know your numbers. Work with the mortgage professional mtmg.com. Figure out what you're comfortable with and write every offer to that payment. And don't be shy. Don't be afraid. Tell the agent. Tell them, I love the house. I can't afford it. But I can't afford this. Does your seller want to play ball or not? In some seller will say yes. It's a numbers game. It won't work the first time. It may not work the 17th time. But one time I did it a hundred times and it worked that hundred and first time.

12:28I love it. I love it. Yep. Connect with us mtmg.com. We're happy to talk through these scenarios and as team buyer, let's go out there and have an awesome cue for because to your point, Mike, there's plenty of opportunity out there. Yeah. Go get it. Best buyers market. I've seen in 12 years later. All right. Thanks, brother. Brussels clean up nicely at Sweet Green. Maple glazed, roasted and edges perfectly caramelized. Sweet Green's fall harvest is back on the menu and the season's most overlooked little green vegetable is dressed to be devoured. You know what to do? Order on the Sweet Green app. Nicky Glazer, this stunning tour. The thoughts of death I don't like to dwell on them for longer than like ten or fifteen hours a day. So... November 19th, Yama Vaugh Theater. No wonder women rush to have kids we're being trained for it since we were kids. They're like, here's a baby doll. There's an easy bake oven. I got one of those. I stuck my head in it. I was like, I want out of this narrative.

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