FREE RENOVATION MONEY YOUR CLIENTS DON'T KNOW ABOUT 💰

Welcome to my Monday Market Update for 
the week of August 9th with Nikki Erickson 
from Kevnik Mortgage!

This week we have two really important 
topics that come up more than most 
agents realize — family home purchases 
and renovation funding options your 
clients probably do not know exist.

This week we are covering:
✅ Interest rate update — volatility 
   is settling and we are sitting 
   in the mid to high sixes
✅ Family home purchases — what agents 
   need to know and what clients need 
   to have in place before closing
✅ Why you should always treat a family 
   real estate transaction like a 
   business not a family deal
✅ The questions every family needs 
   to answer before purchasing together — 
   equity splits decision making 
   and what happens if someone 
   wants out
✅ City and county renovation grants — 
   free money most agents and 
   homeowners have no idea exists
✅ How to find renovation grants in 
   your area — it is easier than 
   you think
✅ HELOC vs cash out refi vs renovation 
   loan — which one is right for 
   your client and when
✅ The hidden benefit of a renovation 
   loan over a HELOC that nobody 
   talks about
✅ Hard money loans for flips — 
   what they are and when to use them

If you have clients sitting on equity 
or thinking about renovating or 
purchasing a home with family members 
this episode is required watching 
before that conversation happens.

This is the kind of information nobody 
teaches real estate agents. And knowing 
it will make you a better advocate for 
your clients and a more professional 
agent in every single transaction.

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📞 Connect with Nikki Erickson at Kevnik Mortgage:
📱 Call or Text: 952-484-1584
📧 Email: nikki@kevnikgroup.com
📘 Facebook | TikTok | Instagram: 
   @mortgagesfrommntoaz

00:00 Introduction – Market Update Week 
      of August 11th
00:30 Interest Rate Update – Volatility 
      Settling Into Mid to High Sixes
01:30 Family Home Purchases – What Every 
      Agent Needs to Know
03:00 Treat It Like a Business Not a 
      Family Transaction
04:30 What Happens When Emotions and 
      Equity Collide
06:00 City and County Renovation Grants – 
      Free Money Most People Do Not Know About
08:00 HELOC vs Cash Out Refi vs Renovation 
      Loan – Which Is Right for Your Client
09:30 The Hidden Benefit of a Renovation 
      Loan Over a HELOC
10:30 How to Reach Nikki & Closing

#realestate #lender  #mortgagerates

Transcript

SPEAKER_01 0:35

All right. It's the week of August 9th. Nikki.

SPEAKER_00 0:39

What you got? Yes. So we've had a good start to the week. We are still sitting in that mid to higher six range from a mortgage interest rate standpoint. A lot of that volatility has started to disappear, and we've kind of just got this even scale now. Hopefully we can see some improvement as the, you know, things come to an end from a summer standpoint. But right now we're sitting in that mid to high six range and, you know, just kind of going with that for now. Not much is happening from that standpoint. I did want to talk about a couple things today. First and foremost, um, when we talk about one of the things that has been brought up to me is when you have people or members of a family purchasing a home together or purchasing a family home and kind of what some of the logistics of that are. It's important to note that it's not necessarily a mortgage issue, but more of from a realtor's issue of letting your clients know that there are some fail-safes that they can put into place to make sure that the um ownership of the property is understood by all members of the family. And so, you know, a couple of things like it was brought to my attention that I have a client who owns a family home that was her grandparents' home. And she had started to do some renovation on this home. She purchased it four years ago, started to do some renovation on the home, and then um ran into some issues with the home, et cetera, and wasn't able to complete the renovation. Now she's going back to her family members and saying, okay, either we have to have some ownership interest, you know, on multiple family members, or we're going to have to sell this, or I'm going to have to sell this property. So she really wanted to get some advice and opportunity on what that looks like to have additional family members come into a contract or come into a purchase on a home, and also what that would look like if she took it on herself. And so it would brought up some interesting things. So there are opportunities if you have family members that are going to be purchasing a home, whether it's multiple children or you have parents and children, and you want something of more of like a business contract nature in order to be able to make sure that you understand the term the full terms of purchasing the home. Things to consider would be like what happens with the additional appreciation on the property? How does that equity get split when the home does sell? Who gets decision-making opportunity to sell or keep the home? What is, you know, is there an expectation of payback or um, you know, payback of certain equity that went into the home? Is there an expectation of, you know, who's going to share in the payments? What happens if a, you know, someone who has ownership passes away? What happens if they want to sell their, you know, portion of the home that they own? You know, things of that nature. How does that affect their ability to purchase a home in the future? These are all things that need to be taken care of when you have multi multiple members of a family purchasing a home together. This can all be done under trust, under an estate, with an attorney, things of that nature that are very familiar with how these family sales should work. And it's just an encouragement, and I was encouraging this client to just say, you know what, talk to your family, and then let's get with, you know, let's connect you with an attorney that can that has dealt with things like this before to make sure that you guys all consider everything that's happening here. And I was telling her to really treat this as more of a business ownership or business transaction than a family transaction. Because yes, there's some emotional things in family that needs to be considered and some generosities that can, you know, take place. But as you know, real estate agents and as mortgage originators or whatever that case is, it's important that they understand that if you're going to go into something with multiple family members and you don't think that there's gonna be any issues, obviously always know that there is. And so it's just a really interesting reminder, really interesting topic to think about, you know, as a as a real estate agent as well, and saying, okay, you know, open your eyes, let's be transparent and let's think about this the whole way through.

SPEAKER_01 4:28

Yeah, I can imagine. I mean, and and it always starts, I think, with the the right intention or the same end goal in mind, and often, if not always, along that road and along that process, there are major detours and like left-hand turds you did not see coming. And it's it's yeah, and so it's keeping it as much business as you can um versus like the family, because it yeah, it's hard. I mean, I have I have people, and I'm sure you do as well, or you have other agents that have um family members that just will not use family, or realtors that will not work with family just because it's not worth it, because we know what goes into it, we know the emotions, the ups and downs, the good news, bad news, indifferent, whatever they make of it. And it's just it's sometimes easier not to work with people you know exactly are gonna have to see across the table at a holiday. Um, it just can be really awkward.

SPEAKER_00 5:28

Yeah, it really can be. And you know, you want to, you know, especially everybody with a family, like you said, has the best of intentions, but that doesn't necessarily mean that it shouldn't be treated like a business, just to have those fail-safes in place because emotions can get involved. People's futures can change, they might need the equity out of the property, they might need to ask you for it. And it's like, what do we have in place to make sure that they can access it at any time? You know, things of that nature. And so it's it's a really interesting dynamic, especially when you get renovation funds involved. And that's kind of what the other topic I wanted to talk about was renovation funds for a property. So obviously, when you purchase a property, you can, and you, if you let's just say you wanted to flip the property, you can do use what's called hard money in order to do so. That'll give you the funds to renovate and things of that nature, and you can use that money to renovate a property. But it's important that real estate agents and also mortgage lenders understand that there's also money that's available, like through some cities, through some down payment assistance programs, through some grants and things of that nature that are put specifically there and designed for renovating certain types of houses in an area. So, for example, let's say you had a more historic home that was built in the 1900s, like let's say 1910 in the Minneapolis area, and you wanted money to renovate. The city of Minneapolis has funds set aside that will offer you grants or forgivable loans in order to do a certain portion of the renovation for those homes. And so it's just those those things that are keep in mind is that a lot of times cities or counties will have money set aside for renovation projects, whether it be for a newer home or an older home, that they want to see used in order to improve the neighborhoods and improve the community. There's always going to be community funds set aside. You can get those, you can get access to those by Googling. You can get access to those, you know, just by calling your city, going onto their website, things of that nature, and know that there are funds that you can be available. With that being said, from a purely mortgage lending standpoint, if those funds aren't available or they've already been used up for the year, we do have renovation loan options available for you for renovating your home, whether it be second mortgages, whether it be redoing your first mortgage and cashing out, whether it be, you know, doing a renovation loan based on the future value of the home. There's plenty of opportunity and the money is out there if you do want to do improvements on your home, um, you know, even post-purchasing. So just because you're purchasing a home, you don't necessarily need to have those renovation funds accounted for right away on purchase. They can be done if you've already owned the home, or you can contact the city afterwards as well.

SPEAKER_01 7:54

Yep. So for the people that are listening that are maybe sitting on potentially some equity or are looking at wanting to take out a grant or maybe a second loan or a HELOC. What would you say if someone's looking at a HELOC versus either redoing your first and cashing out or getting a second? What's your take?

SPEAKER_00 8:15

Sure. So it really depends on each individual situation. How much equity is in the home currently, and is that gonna be enough to do the renovations, or are you gonna need something that's based on the post-renovation value? Um, those are that's the major question to answer at first. Um, if you are gonna be doing something that is has you have equity in the home already, the home equity line of credit provides you flexibility in the idea that you only pay a make a payment on the balance of the the mortgage, and it gives you an opportunity to borrow and pay down and borrow again and pay down. It kind of works like a credit card in that way, like there's a line of credit and you can use it and reuse it, et cetera. And um it give it gives you a lot of flexibility from that standpoint. The downside to that is if you bring a contractor in, it's not regulated that, you know, as far as nobody's keeping track of whether the contractor is doing their work, nobody's keeping track of, you know, withholding any money for that contractor for the work that they have or have not done. Nobody's inspecting the property to make sure the work has done, was done right. Those things you will get with a renovation loan is that the title company and the lender, i.e. us, are gonna be sending inspectors out there to say, hey, yes, this work was done, and yes, it was done properly. So here's the remainder of the payment for the work that's already been done. So you don't have you have less liability from with the contractor from that standpoint. Whereas if you use a line of credit, that's all on you to control where that money goes and how you're gonna pay, et cetera.

SPEAKER_01 9:39

Yeah, nope, good point for sure. Yeah. Yeah. Lots to consider, lots of moving parts. And I think that's why, again, talking with you um on all the options, because a lot of a lot of people don't know that their cities have grants available or you know, the down payment assistance, or what does it look like redoing your first and cashing out versus maybe getting a second or a renovation loan? I mean, there's so many different products out there. Um you're the one that they need to talk to. So how do the they get a hold of you?

SPEAKER_00 10:13

Well, you can uh call or text me at 952-484-1584. You can email me at Kevnik or Nikki at Kevnik Group.com, or you can find me on uh Instagram, Facebook, TikTok at mortgages from MN to A Z.

SPEAKER_01 10:27

Yep. And I think just even when we started off where we're talking about, you know, a family and doing multiple different ownerships, or maybe you want to fix up your home, life shows up along the way in so many different ways. So it's really, really important to have someone like Nikki in your corner that can answer any questions. I know that a lot of my agents call you with just questions because I'm talking about you all the time. And you're a great asset and a great help. Um, and you're just there to even answer questions. And um, you've definitely earned earned all the business and more that you've gotten. So thank you so much for always continuing to be there. Show up to this call and show up for anyone that needs you at any time. You're absolutely, truly a godsend.

SPEAKER_00 11:10

Oh, I appreciate that. Yeah, no, I'm always here to help. And even if it doesn't end up in a transaction, it you know, advice is free.

SPEAKER_01 11:16

So you are yes, and it's amazing. So thank you so much. And anyone out there, if you have questions, if you have clients that have questions, if you're stuck, if you've been told no, Nikki loves the no, she'll find a yes. I guarantee it. If there is one that can be found in any corner of this whole we web that has been, you know, tangled up, she will untangle it and you will find it. So uh call her, reach out to her, uh, and she'll find a way. If there is one, that's for sure. Absolutely. Absolutely. Well, thanks so much. We'll see you next week, everyone. Have a great one and go sell something and give Nikki a call if you have questions. Absolutely. All right, bye, everyone. Bye-bye.