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These Gurus Taught Me Mortgage Fraud - YouTube
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in this video you're going to learn
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about mortgage fraud credit personal
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finance and why you need to be aware of
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who you follow on social media we have
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Rafael vargason bandman Kevo who are a
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match made in heaven Raphael left the
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real estate game to begin promoting
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every get rich easy scheme on social
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media which is perfect for teaming up
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with Kevo whose audience wants quick
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riches at any cost these two guys have
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large personal Brands and make a lot of
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money they are very influential on their
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followers as you'll see in this video
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there's a lot of flaws in the promotion
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of their knowledge why is credit so
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important even if you're a real estate
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or it doesn't matter which you win why
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is credit so important I do like that
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Kevo is helping people improve their
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credit an example of why good credit
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saves you a lot of money is when we look
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at a 300 000 mortgage the difference
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between three percent interest rate and
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four percent interest rate is around
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fifty thousand dollars for the entirety
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of a 30-year loan credit is so important
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because uh the whole goal to real estate
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is not really using your cash Kevo
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contradicts himself in in the same
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sentence he says credit is important
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because in real estate you want to use
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other people's money credit is
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irrelevant if you're using other
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people's money to finance your purchases
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this is commonly referred to as raising
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private money Kevo is just regurgitating
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random buzzwords he's heard from gurus
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like Grant Cardone but has no idea what
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he's talking about with real estate you
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want to basically take the percentages
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that real estate offers like as far as
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Banks so for instance let's say if you
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have a credit score of 800 with a
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hundred thousand dollar credit limit
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100K credit limit will either be
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business credit or personal credit
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business credit will not be evaluated or
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will not show up when the lenders pull
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your credit if you're qualifying for a
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loan on a primary residence with
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personal credit the credit limits will
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show up on your credit report and
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lenders will calculate the minimum
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monthly payment if you were to use all a
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hundred thousand dollars of credit at
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one time because lenders are always
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evaluating their downside risk if you
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spend all the money available to you
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you're going to need to qualify for the
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loan if you spent the full a hundred
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thousand dollars of credit the the
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credit card's minimum monthly payment
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will be calculated as debt credit cards
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will generally have a one to three
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percent monthly minimum on credit usage
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so that could be one thousand to three
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thousand dollars per month added to your
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debt to income ratio good luck
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qualifying with that debt on your DTI
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you want to basically take the three
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percent to ten percent that you put down
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on a home and own a home off that small
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percentage while you're paying notes
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there are conventional loan financing
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products for three five and ten percent
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down he's correct these loans are
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generally for first-time home buyers and
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allow for a debt to income ratio of
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about 43 percent in his example of
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someone who has high credit limits
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they're going to need a very high income
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to qualify for a mortgage with that low
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of a down payment lending has begun
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restricting a bit lenders are a lot more
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difficult on qualifications right now
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than they were in years past qualifying
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is not as easy as these two make it seem
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that's why real estate agents be so
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thirsty for people to buy homes because
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even if you put down that 10 in that
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five percent the banks are still going
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to pay them for that home with your
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percentage down you just will owe the
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banks agents do provide a lot of value
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and a transaction because most
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homeowners have no idea how to Value
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their property Zillow is not a good
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resource they also rarely know what
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needs to be done in order to get the
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house sold what to price the house at
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how to negotiate or how to deal with any
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disclosures the good thing about having
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a real estate agent is they'll protect
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you from the advice you're about to hear
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so if you put three percent down on one
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building and you still have all that 300
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400 000 left over you can take another
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three percent three percent three
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percent times fifty and you own 50 new
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units you get it I love kevo's face at
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the end as if he's saying something wise
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and you own 50 new units you get it
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that's mortgage fraud Kevo what makes
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this even worse is Raphael knows real
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estate investing and financing but
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didn't jump in because he cares more
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about these get rich easy conversations
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than actually helping consumers whenever
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you put three to ten percent down on a
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house the requirements are that you live
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in the house for at least one year as
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your primary residence if you are trying
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to game the system and acquire
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investment properties with three to ten
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percent down then you will be found very
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quickly you wouldn't even be able to get
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away with it Kevo clearly has a ton of
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experience working with mortgage lenders
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when you apply for a mortgage the lender
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is going to analyze all of the debt
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reporting on your personal credit they
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will see that you have a current loan of
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90 to 97 LTV and the loan was obtained
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within the past year they will not
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approve you for a new loan this scenario
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legit will never happen in the real
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world without seller financing even if
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Kevo misspoke and meant acquiring these
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loans after one year of living on the
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property attempting to acquire the
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second home will be very difficult since
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you'll have large amounts of debt on
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your credit report the current property
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and the desired property will both have
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higher interest rates a large monthly
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private mortgage insurance payment and
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both will count towards your debt given
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the borrower will still need to be under
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43 DTI they will need a reasonably High
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income to qualify for a second mortgage
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trying to do this a third time won't
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happen I hope everyone watching
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understands how easy it is to be a fake
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Guru you just make it sound so easy to
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acquire 50 new units if you follow my
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advice all you have to do is leave out
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any important detail about qualifying
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for loans so so that's how you were able
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to build like your Airbnb portfolio like
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Raphael was a legit wholesaler it
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disappoints me that he didn't step in
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and mention that what Kevo is promoting
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is not possible he used to coach real
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estate wholesaling before a falling out
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with the creators of the program and
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then he left the real estate game for
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good because selling get rich easy
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schemes is easier this Airbnb scheme is
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literally not possible you can't attain
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a mortgage with three percent down and
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use for Airbnb if Kevo is doing that
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some somehow then he's committing
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mortgage fraud and teaching you to do
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the same Kevo made his money scamming
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millions of dollars he isn't this huge
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influencer without the scamming to me
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scamming is theft he stole money and now
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presents himself as this investment Guru
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the reason why I care is because the
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people who follow him are looking for
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ways to advance in life and are being
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given the wrong information Kevo
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partners with people to hide his money
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and is why he probably does have a large
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Investment Portfolio maybe even a lot of
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airbnbs but it's all from scam money if
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you follow Kevo and haven't scammed for
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millions of dollars it's going to be
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difficult reaching his level following
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his advice on airbnbs will get you in
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trouble he was telling me like bro I'm
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getting airbnbs in this building so I
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can pay for my penthouse and I'm about
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to live it's funny all the hate I got
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when I just said that Kevo would help
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his audience a lot more if he was more
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transparent to the misinformed he gives
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off amazing advice but he doesn't give
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any good advice with real estate
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investing so like what does Grant
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Cardone talk about same thing you
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basically Yoli your home whole goal
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should be letting uh your liability your
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asset should pay for your liabilities
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basically you know what I'm saying so I
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feel like Kevo is reading off a script
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from a generic entrepreneur Business
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book why not just be smart so I figured
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let me go ahead and get an Airbnb first
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learn the building real well and then
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all the money that I'm making off the
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Airbnb Let It cover the penthouse you
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get what I'm saying what does that even
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mean he bought an Airbnb to understand a
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building if you're a real estate
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investor you do your due diligence
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before buying an investment property or
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getting a penthouse the fastest way to
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build your credit is knowing people who
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has high limit credit cards this is the
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I'm telling y'all a secret how them
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credit cards meaning if you know
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somebody who have a hundred thousand
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dollar two hundred thousand dollar three
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hundred thousand dollar credit card and
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they're willing to make you an
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authorized user on their credit card you
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inherit their limit Kevo is right the
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quickest way to boost your score is to
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become an authorized user on someone
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else's account Kevo is all about credit
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cards right well he doesn't explain that
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FICO 8 is the main score used for cred
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credit card lending lenders are able to
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see that your Boost in credit score
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comes from being an authorized user and
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will eliminate that boost from
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qualifications this practice is known as
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piggybacking and lenders have figured it
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out by now the purpose of a credit score
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is for lenders to have an idea on the
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risk of a borrower and How likely they
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are to pay back the debt since this
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conversation is about mortgages mortgage
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lenders will see someone's credit score
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being propped up by authorized user
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access and will want to know what is
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your credit score without the authorized
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user hack they want to evaluate your
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credit worthiness based on primary lines
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even though mortgage lending still
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relies on FICO 2 4 and 5 it's unlikely
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you'll be able to use this hack to beat
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the system piggybacking authorized user
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hack boosts your score quickly but
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doesn't help you attain any funding but
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I'm sure Kevo knows that because he's an
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expert what after two weeks experience
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is going to update your credit and then
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they're going to start recommending
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these cards as pre-approvals to your
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credit and then you will apply for the
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same credit card that you borrowed from
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your friend that hit 300 000 you're
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gonna get that credit card Credit Karma
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in any of these apps will recommend
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credit cards to you based on your score
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but that's their business model what
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matters most is when lenders run your
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credit and analyze your FICO 8 score and
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see that your personal credit is
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terrible without the authorized user
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access then they will deny funding so
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now it's like a free 300 000 that's Kevo
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please stop with the nonsense lenders
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don't just hand out 300 000 of credit
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because you were an authorized user
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they're going to evaluate you on your
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primary lines if the highest credit
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limit you have on your personal primary
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lines is like five thousand dollars
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you're not all of a sudden getting a 300
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000 credit limit when people turn 18
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years old their parents put them on a
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five hundred thousand dollar credit card
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and they basically gave them a free five
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hundred thousand dollars you get this
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generational wealth but fairly confident
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generational wealth has nothing to do
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with credit cards and authorized user
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access you can also like you you don't
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have to find somebody you can actually
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buy these are so where can you buy this
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stuff so Tray Line supply
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tradelinesupply.com be really careful
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doing this as lenders are beginning to
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crack down on this practice this isn't a
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scam but there is a risk of trying to
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game the system you mix a Tray Line in
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the primary together
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you Unstoppable Kevo was right about
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this occasionally he knows what he's
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talking about I personally am very much
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against a lot of the lending practices
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in the financial sector so I'm all for
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helping consumers better their credit
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score and pay less interest on their
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loans how fast can you do that this
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takes two weeks that's crazy two weeks
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you can shoot up 200 300 that's called a
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credit the underlying problem is that a
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borrower still has their bad credit if
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they haven't cleaned out the reasons why
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their credit was poor in the first place
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then their new score is irrelevant
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because they aren't going to receive
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funding they should go through credit
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repair for a few months and then focus
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on building credit by traditional means
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a lot of people don't tell you this this
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is a very crazy secret you know what I
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mean because the old school way is just
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paying your bills on time Kevo is
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definitely right we are not taught
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anything about credit because the people
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teaching us growing up knew nothing
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about credit this is an industry I've
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been studying deeply for about eight
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months now and it's one of the most
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important aspects of our financial lives
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and yet very few people know more than
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the surface level concept of personal
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credit or business credit you're
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basically disputing this stuff that's on
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your credit because credit viewers make
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a lot of mistakes so when they make
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mistakes they deal with a whole lot of
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people you can send in these letters and
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if they don't get back into you in a
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certain time they legally have to remove
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this stuff off your credit Kevin was
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right about this if you ever see the
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credit repair businesses this is what
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they're doing I'm a real estate agent so
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it's likely that I'll start a credit
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repair business to assist home buyers
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with improving their credit so they can
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save tens of thousands of dollars on
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their mortgage sometime later this year
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it's a good business to start so if you
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have a three hundred thousand dollar
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credit card and you're not barely using
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it like except you're getting gas on it
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they're gonna send you a four and five
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hundred thousand dollar credit card
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because they want to keep trying to get
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you to use that credit because that's
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how they get paid this is false the only
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time your credit limits will be
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increased automatically is when you're
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routinely maxing the card and paying the
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balance off immediately if you're just
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using a card for gas there's no reason
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for the bank to increase your limit
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during times of Lending restriction
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banks have been known to actually reduce
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limits on cards that are seldomly used
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so check this out if you get a 200 000
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line of credit you can buy so much real
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estate imagine this if you buy Fix and
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Flip properties you're putting 10 down
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on a hard money loan on a 200 000 house
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that's 20 grand that's ten houses you
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got 200 000 in credit Rafael come on man
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this is what I hate about fake gurus
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they live in a reality in the clouds
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where they just forget that actual
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lending standards exist number one hard
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money lenders are going to want more
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than twenty thousand dollars down number
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two your debt to income will be insane
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if you go out and buy 10 properties with
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twenty thousand dollars down and no one
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will lend to you number three Raphael is
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explaining how to be a hundred percent
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leveraged on house flipping using a
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credit card and a loan is recipe for
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disaster if you aren't very experienced
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in what you're doing number four the
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borrower wouldn't have any working funds
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for the rehab this clip was the perfect
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summation of Raphael now ignore
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objective criteria for obtaining loans
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and hype people on what's not even
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possible I hope it's becoming obvious
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that it's way easier to be a fake Guru
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promoting get rich easy schemes than it
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is to be someone who's transparent if we
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ignore lending standards just go out and
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magically get five hundred thousand
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dollars of credit cards put the credit
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card funds in the crypto Market 10x your
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returns in two weeks because I know an
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expert who makes millions doing this
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then we'll all be millionaires next week
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it's easy to sell hype the moral of the
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story is be careful who you follow on
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social media thanks for watching
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