702: Seeing Greene: Do 40-Year Mortgages Ever Make Sense?
BiggerPockets Real Estate Podcast
BiggerPockets
4.8 • 16.5K Ratings
🗓️ 18 December 2022
⏱️ 46 minutes
🧾️ Download transcript
Summary
Renting vs. buying a home, forty-year mortgages, HELOCs, and relationships vs. real estate. There’s something for everyone on this episode of Seeing Greene, as David tackles questions that go far beyond just basic investing. And as the housing market continues to get even more confusing, homebuyers, landlords, and sellers are stuck with some serious debates that only an expert agent, mortgage broker, and investor like David can answer!
When choosing to rent vs. buy a home, David uses some geographic-specific data to decide which markets make more sense to own. Then, we have a question on how an interest-only mortgage works, and whether not paying into principal is a waste of time or a better option for cash-flow-strapped landlords. If you’re thinking of buying a property in all cash, David has some advice as to why now may not be the time to use loan-free dollars to get a better deal. Finally, David takes a more personal question from a listener, asking when to put real estate over relationships and why dating feels like a “waste of time” when trying to build wealth.
Want to ask David a question? If so, submit your question here so David can answer it on the next episode of Seeing Greene. Hop on the BiggerPockets forums and ask other investors their take, or follow David on Instagram to see when he’s going live so you can hop on a live Q&A and get your question answered on the spot!
In This Episode We Cover:
Buying vs. renting and when house hacking makes sense EVEN if you lose money every month
Using a HELOC (home equity line of credit) to buy your first rental and the dangers of doing so
Investing in your business vs. buying more real estate and when to do both
The “lease-back” agreement and why it’s a phenomenal way to get a tough deal done
Buying rentals in cash and why it may be a mistake as the markets shifts more to the buyers
Having a social life vs. investing and why so many investors find dating a waste of time
And So Much More!
Links from the Show
Find an Investor-Friendly Real Estate Agent
Listen to All Your Favorite BiggerPockets Podcasts in One Place
Learn About Real Estate, The Housing Market, and Money Management with The BiggerPockets Podcasts
Get More Deals Done with The BiggerPockets Investing Tools
Find a BiggerPockets Real Estate Meetup in Your Area
Renting vs. Buying a House: Which Makes More Sense in 2022?
The Pros and Cons of a Lease Forward (or Lease Back)
Should You Pay Cash for a House? Maybe Not—Here’s Why
Learn More About David’s Full Real Estate Team
Books Mentioned in the Show:
SOLD by David Greene
SKILL by David Greene
Click here to check the full show notes: https://www.biggerpockets.com/blog/real-estate-702
Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page!
See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
Transcript
Click on a timestamp to play from that location
| 0:00.0 | This is the Bigger Pockets Podcast Show, 702. |
| 0:04.6 | I'm not against using 40-year loans and I'm not against interest only periods. |
| 0:09.2 | There is a danger to 40-year loans and the last time we saw them was 2005-06 when the |
| 0:14.6 | market was red-high. |
| 0:16.3 | The reason that they introduced 40-year loans into the market was because you couldn't |
| 0:20.5 | afford the house at the price the seller wanted on a 30-year loan. |
| 0:24.4 | Which meant you couldn't afford the house. |
| 0:26.3 | So by making it a 40-year loan they could reduce your payments to the point that you |
| 0:29.7 | could now get free-approved. |
| 0:32.1 | That is dangerous because it allows you to pay more for a house than you really should |
| 0:35.6 | be paying. |
| 0:36.6 | What's going on everyone? |
| 0:37.6 | This is David Green, your host of The Bigger Pockets Real Estate Podcast. |
| 0:40.8 | Here today with a special edition seeing green episode. |
| 0:44.3 | What makes it special? |
| 0:45.3 | You ask? |
| 0:46.3 | Well, because it's a seeing green episode. |
| 0:48.1 | In these shows if you haven't listened to one before, we take questions from you, our |
| 0:52.0 | audience asking specific things about situations they're in or general questions about the market |
| 0:57.0 | and what's going on and I do my best to give them the most sound advice possible based |
| 1:01.5 | off of my experience in the portfolio properties that I own myself. |
| 1:04.8 | These are some of our most popular episodes so I really hope you like this one. |
... |
Please login to see the full transcript.
Disclaimer: The podcast and artwork embedded on this page are from BiggerPockets, and are the property of its owner and not affiliated with or endorsed by Tapesearch.
Generated transcripts are the property of BiggerPockets and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.
Copyright © Tapesearch 2025.