Money Making Conversations Master ClassFinancial Tips: She's an independent mortgage broker focusing on accountability, consistency, and her innovative tools.
Two-time Emmy and Three-time NAACP Image Award-winning, television Executive Producer Rushion McDonald interviewed Latrease Price Gistard.
I began my finance career in 1999, working in investment operations and accounting for 14 years. In 2013, I transitioned into retail auto finance as an independent Texas auto dealer and Finance Manager. Shortly thereafter, I earned my Residential Mortgage Loan Originator license in 2018. I worked as a Mortgage Loan Originator until December 2022. In February 2023, I took the next step in my career by opening my independent mortgage brokerage, ACI Mortgage, LLC, where I serve as an Independent Mortgage Broker.
Company Description *
ACI Mortgage, LLC is an independent mortgage broker committed to delivering exceptional service through a focus on accountability, consistency, and innovative tools and resources. Understanding that the home purchase process involves not only finding the perfect home but also securing the right mortgage, ACI Mortgage, LLC strives to make the mortgage process personalized, efficient, and timely. By building strong relationships and keeping clients' needs at the forefront, ACI Mortgage, LLC ensures a smooth and seamless experience every step of the way.
#STRAW
#BEST
#SHMS
Welcome to the show.
I'm Rashaan McDonald, the host of Money Making Conversations Masterclass, where we encourage people to stop reading other people's success stories and.
Start planning their own. Listen up as.
I interview entrepreneurs from around the country, talk to celebrities and ask them how they are running their companies, and speak with dog profits who are making a difference in their local communities. Now, sit back and listen as we unlock the secrets to their success on Money Making Conversations Masterclass. Hi, I'm Rashaan McDonald, a host this weekly Money Making Conversations Masterclass show. The interviews and information that this show provides offer everyone. It's time to stop reading other people's success stories and start living your own. If you want to be a guesst on my show, please visit my website, Moneymakingconversation dot com and click the b a guest button. My guest is an independent mortgage broker. She's committed to delivering exceptionals service. Do a focus on accountability and securing the right mortgage for your home. They'll ensure a smooth and seamless home buying process. Please work with the Money Making Conversations Masterclass Latree's price get stalled. You know French that gestalled. You got to got to put that gets stared. From Houston, Texas the tree, So you know down there y'all do all the San Antonio people listalled.
How you doing, my friend Letree, How you doing?
I'm doing great? How are you doing?
Finance? What's your what's your background? When you start talking about you know, mortgage brokering and brokery and accountability and finance. Give us a little history on you before we get started and get deep into this interview.
Well, I am originally from San Antonio, Texas, and I have a bachelor's degree in finance, and I've been in finance since nineteen ninety nine. Where I originally started out working in investment operations, which consists of like settlements operations and and investment accounting. And then like around twenty twelve or so, I moved over to doing auto of financing. My husband and I we opened up a car dealership and I was part owner and also our finance manager, where I helped customers get financing for their cars. We focused a lot on first time buyers and just pretty much took care of them to make sure that they were not being taken advantage of and getting good interest rates and good payments that they could maintain because a lot of the customers were like your college students and first time buyers who had just who had just actually just graduated from college.
And then right in the middle of all that, you know, well.
At the time, there was a lot of favor with auto lending and so forth, and so a lot of that changed, unfortunately, And so then I started looking into mortgage financing just to kind of like compliment what I was already doing. And that's pretty much how I ended up in mortgages. I started well, I obtained my license in twenty eighteen, and then in twenty twenty two I decided to go ahead and take the leap and become an independent mortgage broker where I.
Have my Well, I don't think you just took a leap. You're a planner.
You're a planner now because you're dealing with numbers, so you already know about taxes, you already know about understanding the you know that profit margin that you have to achieve now. As in the car industry, first of all, are rarely meet a person of color who said they went in the car dealership. You know, you re meet car sellers, of car mechanics, of people of color. How did y'all get into the auto industry from a dealership standpoint?
Well, actually, my husband he had his first car dealership in San Antonio in the early nineties and it went fairly well for him. He ventured off into doing some other things, into like promotions and so forth, and then around that time he decided to just go ahead and start to do the car dealership again. But he didn't want to do it the same way he did it before. He decided to do it differently this time. And it went very well for a while because it was around the time when Obama was, you know, issuing out all of the rescue money, and so the lending guidelines were very helpful for those who were having a difficult time, you know, at that particular time. And unfortunately they had to go back and tighten up those lending guidelines again and that changed the industry. And then COVID came right behind that and made it even more tighter.
So cool now you could have asked this one car, what about car dealerships? You know, you know, I've had a lot of used cars in my life and I've traded them in. Now should I have haggle to get the price down the trees? Because I always trade it in my used car, which would have been a better right that you way that you would have recommended, and just listening and people listening may follow your advice or they might do their own thing.
What would you suggest haggling a trade in and used car?
I think that you should do definitely negotiate and make sure that you get in the right deal. And you know, a lot of people they go to Kelly Bluebook to reference the value for their car, but I personally recommend you going to Nada dot com their powered by Geni Powers and associates now and they tend to give a better explanation of what the value is of your car because it gives it whether or not if it's in good condition or a bad condition, or if it's even in a syllable condition, and so you can kind of you can negotiate off of those numbers. A lot of times of dealerships they don't. They just assume that you don't really know what the value of your car is. And if you come in and you and you're educated and you can you know, discuss on those particular parameters. You could say, well, no, you know my car. You know, I just did this, this, and this to my car, so it's actually valued at this particular number, and this is what I would like to have because they're going to pay you what they're going to pay you and turn back around and sell it and make sure that they get.
Yeah, like anything, do your homework.
Yes, going there and have a stand a value stand on your vehicle before you start trying to ask somebody what they think is going to call yes them.
Because they're going to make sure they make their money.
Right.
Yeah, we're good.
Well, I brought you on the show to talk about being an independent mortgage broker. The word independent is powerful. Yes, you know, how are you an independent mortgage broker? First question? Secondly, why are you an independent mortgage broker?
Okay, I am an independent mortgage broker because I basically hold my own license as a broker. So I go out and I establish relationships with various lenders to provide different loan options to my borrowers. You know, I have lenders that will cater to individuals who may be self employed, who may have a difficult time getting approved. I also have lenders who cater to first time buyers. I have lenders that cater to those who may need help, you know, due to citizenship, you know issues and so forth.
I mean, there's all types of lenders out there.
And so as a broker, you serve as that advocate for your borrower to make sure that they're getting the right loan product and not necessarily just getting approved, but you know, do they have the right product that fits their particular needs and so forth.
Okay, so, but why.
Well, what made me become well decide to become a mortgage broker was I had actually been laid off at a company.
It was a builder.
It was like in late twenty twenty two, the interest rates has started to really go up, and so they had lost like sixty eight percent of their contracts due to borrowers falling out because they could no longer fit the home because they were in the middle of construction and so forth. And so I was faced with having to go and find something, find new employment and so forth. And so I just noticed that, you know, the commission negotiations just did not fit my needs. And so I'll just figure I might as well just go ahead and advocate for people like I do, and also keep my commissions at the same time.
There are certain things as you gain equity. That's the big thing. That's the goal in any house is to gain equity. Explain to us the value of mortgages when you hit a certain age and you have a certain equity in your house.
Okay, Well, I will say this due to the fact that a lot of people do not really have very much knowledge in reversed mortgages. The usage of them are only like about two to three percent of senior citizens, and it's typically in the age range like around seventy five and older. And that's typically when people will you know, will have enough equity in their home and or have exhausted their retirement funds and have high medical costs and so forth, and so it's just a way for them to be able to have tax free cash coming into their home. They can either take a lump sum amount, or they can get they could receive a monthly payment, or they can open up a line of credit where they just withdraw the money out every month. I feel like it is a good option for those, you know, for individuals that are in that particular age range who have a exhausted their retirement funds or have limited retirement funds. And you know, it's just unfortunate that people typically do not have enough education, you know, about them because what happens sometimes is is that you know, they'll take out the reverse mortgage and the family is unaware and when they passed away, they don't know that the debt is there. And so but what the family can do is if they want to keep the keep the home in the family, they can refinance it, you know, if they want to keep it, or they can just sell it to pay off the debt. Flowers while they're here. You know, they paid all the equity into the house, so.
You know.
Okay, let me ask you this question. Write quickly tree.
I'm talking to the Tree's Price Get Started and independent mortgage broker based in Houston, Texas. Okay, you take out a lump sum? How does that work? How are you paying it back? If you have no money and you having financial issues and you do a lump sum or how exactly walk me through how a reverse mortgage works and how exactly.
Does it benefit?
Because if you if you take some money, they're going to want it back. So how are they making those payments back of the lump sum. Are the monthly songs that they're requesting.
Well, the beauty of it is there are no monthly payments going back to the institution. The data is paid off when the home is paid off, you know, like when the person passes away. The family can either refinance it into their name or they can sell the home.
Yeah.
I see what you're saying. So so let's use some numbers.
So if the house is two hundred and fifty thousand dollars, yes, then you can do a reverse mortgage own the equity or the value of the home.
The equity, that's what you're saying.
Yes, yes, and you would need fifty percent of equity in the home to be able to do it.
Okay, cool, So that means that you can do a reverse mortgage on one hundred and twenty five thousand dollars. Yes, if it's two hundred and fifty thousand dollars house, and then they receiving payments, they don't have to make any payments back.
But that's why you were saying, Rashan.
Generally people who do these reverse mortgages are in their seventies.
Yes, because it's not something you want to do in your fifties?
No, no, okay, cool, Now that I.
Have to be at least sixty two years old.
I'm just saying that typically most of the barbers in that range are around the seventy five ish range.
Right, so it has to be sixty two years old. So do you handle those type of situations there?
Do?
Okay?
How does one contact you? Or how does one do? You have a website? Let's start there. Let's start breaking down the lines of communication. If somebody wanted to are considering it, wanted to be educated about reverse mortgages, how did they reach out to you?
They can reach me by phone at three four six four seven six nine five five nine, or they can go to my website ACI Mortgage LLC dot com.
Okay, cool, Now on to the next point, zero down payment programs. Okay, I'm speaking to Lutreces Price gets started. What exactly is that zero down payment program?
Well, I have a I have a lender that is that that has that promotion at the at the present time. And what they do is they loan the amount that's needed for the down payment. It's it's up to like three percent of the loan. And what they do is they put the loan, they attach it to the actual mortgage itself, and then it is it is paid. It is paid off once the loan is either sold or either refinance, but up until then it is it is part of the part of the mortgage. But I also do have other down payment assistance programs that will give up to five percent of the value of the loan. So what happens is with some people they use like the three to three and a half percent that's required for the down payment and then the remaining of the five percent to pay off to help with the closing cost. And so that's pretty much where that assistant comes into play.
Please don't go anywhere. We'll be right back with more money Making Conversations Masterclass. Welcome back to the Money Making Conversations Masterclass, hosted by Rashan McDonald. Money Making Conversations Masterclass continues online at Moneymakingconversations dot com and follow money Making Conversations Masterclass on Facebook, Twitter, and Instagram.
You know, being an independent mortgage BROKERAM the big thing that scares people off is big numbers, percentages, fifteen thirty years mortgages would ever own it. Let's walk through the process of how you handle clients LaTrece when they come to you, the educational process. How does your business model for you work and how does it benefit the customers that come to you.
Well, the first thing that I ask each person when they called is if they've purchased a home before and how soon do they need to buy.
A home. And then I'll ask like key points like how long they've.
Been on their job, what their credit score is like, and what you know, do they have any money for down payment, you know, anything in savings And I just kind of like gauge off of what they tell me and just kind of like take it from there. But I do when I do offer the different type of loan products, I do explain like the difference between the you know, between each kind because you know, you you have fah A v A conventional and U S d A and and each one caters to a particular you know customer, you know, whereas you I have like f ah A you know, that's that's that's really more for like the customer who may need a lower down payment but also may have like a lower credit score than than the average, or have like a lot of open debt because that particular program allows for a higher dt I versus someone who could go conventional who may have like a higher credit score, but their down payment will start like around three percent and go up to like about five percent.
And so I guess to answer your.
Question, is score it permits their interest rate.
It is a very it's a very key component, you know, because we do have programs that will go as low as five five hundred credit score, but a course quite naturally those who are like I would say, like around seven to twenty and above will have your more favorable you know, interest rates.
Okay, let's talk to it, because there's a lot of people out there in that five hundred ranges probably listening to my show now. But you can still help people. Now that's a pretty low score. Now, that's a pretty low score out there trying to buy a home. How do you help somebody in that five hundred to six hundred credit score range get in the house, Because right now I think that's I think this be nearly impossible.
But you're saying you can make that happen.
Yes, The main thing with that particular group is that they're going to have to have a higher down payment. They're going to be the ones who's going to need that ten to twenty percent down in most cases, because those programs are not going to allow down payment assistance, and the interest rate is going to raise the payment, which is going to make the DTI heart to fit. So that particular group of people is going to really need that big down payment in order for that to work.
Okay, cool.
So that means that again, do you work with individuals latrees over a six month period or do you coach them along?
Somebody comes to.
You, say in January and they said, look this is where I stand them at five hundred, and you said, well, come back to me, do your homework. You get your credits trade by making consistent monthly payment. Let's see we can get that credit score up. Because right now, if you roll into a plan right now, your interest rate is going to be higher and your down.
Payment is going to be higher. Do you work with individuals like that.
Latre, Yes, I do.
I do offer the opportunity to consult while they get ready and so forth, and I do offer suggestions and so forth. Out to be very careful about, you know, credit counseling per se. But I do offer suggestions, and you know, go over there file and just give them what's called a what if scenario, and it is it is provided by the credit bureau, and not not the credit bureau, but but the credit reporting agencies that I use. They have a report called what if scenario and I go in and I'll put you know, like say that they paid these particular credit cards down or what have you, this is what it could possibly look like if they did this and so forth. And I would give that to them, and you know, we'll work over, you know, their plan over those months and so forth, and I will say about sixty percent of the people actually follow through, and really, do you know come back and say, okay, listen, it's.
All about follow through.
It's all about your dream, all about whether you want to make it happen. Yes, And that's really what we're talking about right now. Yes, making up, putting it, putting forth one hundred percent. Now in this world as being an independent mortgage broker, frustrates you about it? And what benefits do you feel you bring to the table?
Okay, I will say what frustrates me is, you know, basically what we just talk about just now is the customer that does not follow through or the customer that is not honest and forthcoming.
Do you ever get mad in the little tree?
Do you ever get mad if some of your customers come on that this is money making conversations?
Okay, somebody wasted your time for three or four months.
Now.
Yes, Basically, the reason she's an independent because a lot of traditional outlets won't even look at you, They won't.
Even walk in the front door.
She is giving you an opportunity because early in our conversation she spoke about she sets up relationships. She's kind of like, it's a lot of people out there, like independent insurance people. Well, you can come there and they can do insurance with anybody out there.
And that's what you're saying that you can do as an independent.
You not limited to one particular financial out correct.
Yes.
And now with that being said, do you have a place you'll go to outlet? You don't have to say the name, and why is that outlet that you go to you feel works for you the most in your independent platform and the type of customers that you bring to the table.
I'll be more than happy to say that my outlet would be you. Not at Wholesale Mortgage u w M. They are the number one wholesale lender in the you know, in the States, and they have a very.
Quick turnaround time.
My executive there is top notche The process is just it's just it's impeccable, you know, every time.
And what.
The customer that that I would take there is actually well I can't say the majority of them, but I would just say the customers that they cater to you are more of like, you know, your well your experienced buyers is where's your first time buyers. But a particular product that I like that they have there is there one time construction loan, Like say you want to buy land and build a house at the same time. Well, you know, traditionally you would have to finance both separately, but they will do the loan all in one, you know, And that's what That's one of the main things that I really like about them.
And so just as a process and the loan products that they offer.
Cool.
As we close out the interview, I want to talk about the benefits of utilizing f h A two thousand and three is it two thousand and three K program two or three.
K that is that is a home innovation yes, and what people don't know is you can buy a fixer upper at the you know, and and finance the renovations as well as as the home within the the within that that one transaction, and that's that's where the f h A two or three K comes into play.
And it just it could be something as.
Low as as you know, replacing windows all the way up to remediating mold. It just depends on what the needs are for it, you know, for your project and so forth.
And so.
That particular problem when you stay that when you stay in the f h A and f stands for what.
Federal Housing.
That's I'm sorry, Federal Housing Association and that that's that's basically the the the government agency that monitors those particular types of loans and there and that's it's it's basically there to protect the lenders against the the you know, in case the bar defaults.
On the loan.
Okay, cool, okay cool.
And this particular program you telling me, a lot of people are not aware of it. And I always get mad when I hear that, and I said, mad, mad, but I guess frustrated mad because there's so many programs out there that are to benefit the buyer. But nobody knows because guess what, they're not promoted. So how does one find out by programs like this that can benefit them that somehow don't make it trickle down to the people that need them.
Well, I mean you would have to consult a mortgage broker, you know, because it's not you know, just everyday knowledge that is out there.
Now. Most people know about.
FACH loans, but they're not as well aware of the of the FAHA two or three K program that is there. A lot of times people think that they have to buy the house first and then finance the renovations and so forth.
But if this particular product, you can do both at the same time.
Wow, I knew nothing about it.
Again, Please give us a contact number, and if you have a website, please get a website number so we can reach out to you. Because being an independent broker, first of all, fearlessness. You seem to be a person. If someone wanted to do this for a living, if somebody wanted to step out on faith or just go for a leap, what steps would you tell people to make sure that you did that you will not do that would help them be successful as independent as an independent mortgage.
Broke things I would do.
You would not do because you made the mistakes to resond that was I can tell you right now. There were some things I did when I started my company and I hired people who were not qualified for the job. They were family, they were old friends, and I paid them checks. They were overpaid because I knew they needed to, you know, paid a certain amount of expenses for their family.
I didn't. I just had the bad business model.
Yes, and I would never do that again and so and it was a hard decision because it eventually it led to me laying these same people off that I was trying to support.
So those are bad business decision.
Now you became an independent mortgage broker, what did you do or would recommend so people would make the same mistakes that you did, because we all make mistakes when we start businesses.
I would say that I would have had more capital.
Before deciding to not move forward with with with other employment. And that's because what I had to do was, since I did not have as much capital, I had to kind of like do a lot of side gigs and so forth that took me away from my business and so forth, and so and then also to have a stronger pipeline. You know, even though I had been had been originating loans for as long as I had been, I don't feel like I had a full enough pipeline to really take off. So not having a capital and not having a full pipeline, that that kind of stagnated me. And it made a little bit more difficult to really you know, get going and so.
Forth and so. And then also the time frame.
It was during a time when interest rates were just out of control, and it made it really hard to get people, you know, approved and so forth. And so I would say to definitely look at the economic you know market at that particular time, make sure you have that strong, solid pipeline, and then have that capital so that you can focus more on the business versus you know, just just.
Going for it.
Cool.
Let's get that number out there one more time. The litree's price.
Okay is three four six four seven six nine five five nine. Website is ACI Mortgage LLC dot com.
For coming on Money Making Conversations Masterclass.
Thank you, thank you. I have a good one, Roshan.
This has been another edition of Money Making Conversation Masterclass posted by me Rashaun McDonald. Thank you to our guests on the show today and thank you. I was listening to your audience now. If you were to listen to any episode I want to be a guest on the show, Visit Moneymakingconversations dot com. Our social media handle is Moneymaking Conversation. Join us next week and remember to always leave with your gifts.
Keep winning.
