WTC : 002 –  Debunking Credit Myths and Preparing for Real Estate Investment

In this episode of the Wartime CEO Podcast, Isaac Sandoval joined the show to share how to make wise and correct decisions to loans and mortgages for your future home. Isaac is an entrepreneur driven to help assist his clients to get the best possible deal and provide life-saving advices for people who wanted to go into real estate. Isaac started Guardian, which brings prospect clients and aspiring real-estate entrepreneur together to formulate the perfect right recipe for a wise decision-making and a correct showcase of achievements for your clients.

Isaac’s Real-Estate Journey

[03:23] When I was young, I was observing my father’s entrepreneurial journey. It’s fascinating to see how he talk to people and he would help me understand the things that I want to accomplish in life. He provides concrete answers and has always been receptive.

[04:45] I decided to get my real-estate license and started buying and selling real estate, providing advices to clients on their questions about their first dip to investing properties or buying their first home. 

The Truth and Myths about Credit Scores

[06:35] There are good and bad credit repair companies out there. When it comes to real-estate financing, the first step is to make sure that you credit score is at the best possible shape.  

[07:18] Look at your credit report and understand the positive and negative things and the immediate changes you can make to have a better credit score, credit limits and credit history.

[08:06] Many people think that you need a carry a balance on your credit card to increase your credit score which is not true. Your score is based on how you utilize your credit limit. If you made a habit of using less than 20% – 30% of your credit limit and pay before the next billing cycle, it is guaranteed for your credit score to go up.

[10:58] Going to 2021, it is scary that a majority of people does not have any savings. Few people have enough money saved or they have no financial advisor that can assist them to structure a budget for a down payment of a house. Having access to a high credit score and a good credit history will assist you to get better terms.

Advice for Clients

[12:46] Financially, you need to understand how your new purchase will affect your financial life in a monthly or yearly basis and how it will reflect your family’s way of living. You need to ask if your monthly payment will limit your ability to grow your business, how will it benefit you in the long term or will there be a potential for debt concerns.

[15:11] Aesthetically, you should know what features you need in a house, who will find you look for that “dream” house and how will you finance it. You need to look for a trustworthy and honest person where people can vouch for their exemplary performance either from your friends, family, or relatives.

[17:26] You hold an interview to the agent. Take a look at their credentials, past performance, and look for vouches from other clients not from your circle. At the end of the day, they are the people who will make sure that the deals will be at your best benefit and you are protected.

[18:53] Indicators of a red flag agents will be someone who is ill-prepared. They will not put their best efforts to showcase why you should be working with them. There are no brochures, video testimonials, statistics, unprepared for answering questions and are not eager to help you.

 

Brokerage, Mortgages and Banks

[20:55] Local independent brokerages are driven by the local agents who hold the keys to the market. They are the people who knows the ins and outs of a city. Even though nationwide brokerages can do the same, you find more of the local agents.

[22:00] Local mortgage company only deals with mortgages. Unlike banks that tend to have other services, a mortgage company is dedicated to write mortgages in the local market. Since they do it from start to finish, they are able to provide rates and terms that are more aggressive than your traditional banks.

Advice for aspiring Real-Estate Entrepreneurs

[26:22] Continue to keep tabs on your local community. Real-estate is a contact sport where you need to be involved to get the best possible deals. You need to know the ins and the outs to capitalize and understand the market. Build your network since networking is the most important to piece when it comes to real-estate investing.

[27:33] Be involved with your local real-estate investor groups. People who move assets, financial advisors and etc., these are the people that you want to have a connection with.

Guardian

[29:28] Aimed to better serve investors and help them mitigate risk while looking at new opportunities.

[30:31] To help investors become profitable not only by the tools provided by the company but also through the services offered. To provide consultation to investors that are facing challenges they have never seen before.

[31:17] We want to grow and scale with our clients and be a powerhouse.

Entrepreneurial Journey and Life-reflections

[33:20] It was difficult but it was a fun journey. I have grown to understand that things will not necessarily go to how you picture them and it positioned me to make better decisions in life. I am more confident and I can now see things that will work out and not.

[36: 01] You look for people who have experienced the things you wanted to avoid. The faster you experience the pain, the better you can look for ways to leverage that experience.

[39:37] 2020 helped me realize my achievements professionally. Now that I am detached from society due to the pandemic, it made me realize the importance of my personal development. Setting those goals and expectations to achieve those goals, there is no question whether or not you will commit to it.

[42:23] You can’t do everything by yourself. I have learned to take a step back and focus on things that I can do and designate the task I am having in trouble with, to somebody who is excellent at.

Key Quotes:

[10:37 – 10:42] – “Credit is the defining factor in the era that we lived in.”

[35:35 – 35:38] – “Your experience is what drives people’s choice.”