The Real Estate Happy Hour Show - Episode 61
Watch the Real Estate Happy Hour Show - Episode 61
The Happiest Show in all of Real Estate is on the air! It’s time for The Real Estate Happy Hour Happy Hour Show. On today’s show Collier Swecker & David Arnette are talking about the benefits of a 20% down payment on your home purchase, 10 habits of successful real estate investors and how young adults can start investing with little money. Join us every Thursday at 4pm for the live show on Facebook Live or watch or listen to the Real Estate Happy Hour on replay or listen to the podcast that can be found on Apple Podcasts, Google Podcasts, Stitcher, Spotify, and Tunein Radio.
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Collier: All right four o’ clock in Birmingham! It’s time for the Real Estate Happy hour!
David: We are back again, you knew we would be.
Collier: Hey, don’t worry.
David: Man, we are, I mean we’re an Internet sensation.
Collier: Absolutely, I mean.
David: How could we let our tremendous fan base down?
Collier: No, we can’t, I mean, just like Bob Marley didn’t want them down, we can’t let our fans down either.
David: We’ve got better following than a rainy day in the golf tournament.
Collier: That’s right big (inaudible), turn off the region traditions big, is one of the four majors on the single PJ Tour, about a mile away from here.
David: It’s going on right now.
David: (Inaudible), what’s going on right now?
Collier: Pepped during the rain away.
David: Yeah, probably, probably some beverages being had.
Collier: A lot of beverages, I went out yesterday to Pro and had a good time watching some of the celebrities and I was surprised I saw the lead singer of Widespread Panic Plane with Taylor Hicks.
Collier: He was out there, Clay Travis and let’s say Bo Jackson, you know everybody is out there, of course Nick Saban what now? ‘Cause he was rehab in that.
David: Oh, with the hip-hip.
Collier: But he was there.
David: That’s good man, so yeah hopefully they’ll have some decent weather this weekend, but right now is not looking so good, probably not much playing in the last few hours.
Collier: I don’t think so but, oh funny thing is, there’s a local agent here, Karen Charles that works with us and I thought that she was talking just about the game to play when she gets her family together and I told her that you’d be petrified.
David: What’s that?
Collier: It’s called exploding kittens.
David: No, nobody wants an Exploding kitten.
Collier: That’s what I figured, you would be really upset.
David: Yeah, so tell us about what’s the deal?
Collier: I have no idea, but I just heard the name of Exploding kittens and knew, ‘cause in case you didn’t know he is a, I was gonna say (inaudible), he loves cats.
David: We have two and they’re beautiful.
Collier: Yeah, they are.
David: And you love them.
Collier: Tell your dad “hello”.
David: Hey buddy.
Collier: Thanks Karen.
David: Thank you for joining.
Collier: But anyway, yes so, you love your cats as we always say.
David: Oh yeah, of course yeah.
Collier: You love them better than dogs.
David: Oh well, I mean I got one, that is my favorite right now so.
Collier: Wait on, what’s your cat’s name?
David: Moby and Reese.
Collier: Moby and Reese!
David: For those playing alone at home.
Collier: Yeah, but he does love them so, he claims that they love him, but yeah we had that story earlier this year where I told them, I had to tell them you know the story that came out, you know cats would actually try to kill you if they could, like they really don’t love you.
David: That’s all speculation.
Collier: Yeah, speculation but anyway, hey, had a story this week regarding real estate, is really interesting, here was the situation, I get an inspect, I’m the listing agent, I get a request for repairs from a selling agent and she says, I mean she’s calling me oh this is serious, they need a new roof all right, I know the roof is old you know, but never a leak, nothing, no issues that they had. So anyway, I went for ahead for down the roof and in time, your agents need to be known by the experts, if you’re the listing agent pour it on your expert, if you don’t know everything about that particular trade if you will. So hey, I’m not a roofer, so I pour it on a roofing buddy and he emails me or calls me right back and says hey man, you read the report didn’t you? and I said well, I just forward it to you, let me take a look, while you’re looking at it and I remember they had said this roof is the worst thing ever right? I read the report and it says roof condition: good, flashing old roof: good, now they have categories, good, satisfactory, unsatisfactory and just flat out awful, whatever right?
David: Flat out awful.
Collier: So, I called the agent and said what in the world? You came asking for a new roof, did you look at it? Well no I didn’t, all I did was read the summary and then my clients told me what to do and I was thinking, what in the world are we doing? We’re asking for stuff, this is all serious and then comes down to the fact that the buyers of this property had gotten taken for a new roof on their property. So, their reaction was I’m gonna get a roof for my new house, even though I don’t need it, right? The point in the story is make sure you read it, this is just ridiculous right? You see it all time with these agents, some of them are just lazy.
David: That’s something I mean, I don’t say there.
Collier: I mean, I’m just saying is just amazing.
David: Says that nobody was reading the report.
Collier: That’s right, I mean hey, but anyway so we got all that straight down, but anyway tell me about interest rates this week.
David: Interest rates right now, take down not much change, 36-year fix, 4.1 percent, 15-year, 3.57.
Collier: Wow, that’s low.
David: Not much has changed over the last couple of days, but over the last couple of months they have been trickling down, funny thing, funny story is I did have a client that I hadn’t talked to in a while, he was comparing my quote from 2 months ago to a new quote that he got from another lender, guys look, if you’re shopping for a mortgage rate move all the time.
Collier: (Inaudible), let’s go back to get by understanding what happened two months ago, this is, what is this? May? So, we’re going before spring break.
David: Middle march you know, it was my estimate of these companies to, so I end up going to another lender ‘cause he thought he was saving some money, when the only thing that happened was the rates changed. Rates went down and so he thought the (inaudible), was better, of course it was better, because you know.
Collier: Soft, got better.
David: Yeah, let’s like look at the price of the stock 2 months ago and today and he got well, which one I’m gonna decide?
Collier: Yeah, you mean is lower today.
David: Yeah so, listen Tim, for you guys to play it at home if you wanna shop the mortgage, make sure you compare on the same day at estimates.
Collier: One thing you can do, is just call them and say, hey man, I know you got everything, I know the conditions in your letter that you got 2 months ago but you would have gladly given them updated interest rates, right?
Collier: I mean, that’s a big one and they call themselves potentially (inaudible), to close easily because look, we’re not an informant, we’re not about (inaudible), general, we’re not in it, push out the one of us, but I will say best of the best ability to close in town with you guys.
David: Oh, we yeah, I mean, we’re the best and numbers show it you know, so you, we won’t stay in that too long, but anyway next best thing benefits of on the 20 percent down payment, right?
Collier: Well, everybody talks about it all the time, right? I mean, shut down your throat by your grandparents you got that 20 percent down by giving you a loan, now that’s not true, that’s what they say.
Collier: But there are some real benefits you guys, well you being in the industry gives them.
David: Yeah, there are some real benefits now, this first one is funny because you know, when I was looking through it, when you said this over to me interest rates will be lower, that is actually not the case. It’s funny that in the last year too, interest rates are getting a little bit better with mortgage insurance at 15, 10 percent down, 15 percent down, the loans have mortgage insurance, so what does that mean? That means that there is a default then, the lender has somebody else taking part of the loss.
Collier: So, what you’re saying is that 95 percent loan is the main difference, not the interest rates and as much as it is that (inaudible), is being paid if I get a 95 percent loan.
David: There is sometimes, where you would actually get a better rate on a 95 percent loan than an 80 percent loan.
Collier: And to all make it, some of that difference to the PMI, correct?
David: Who is making that difference?
Collier: In other words, the interest rates are saying, but I have it now at own PMI, so if it was what you’re saying that the (inaudible).
David: I used some at my interest rates just to straight up (inaudible), at 95 percent yeah, you pay mortgage insurance at 80 percent you’re not, but if your rate is 4.25 on the 95, 4.375 on the 80, yet the rates are a little bit better. Now I mean look, I’m just telling you that you know sometimes, the pricing models favor the loans with mortgage insurance on there, so anyway next one is you’ll end up paying less for your home, right?
David: ‘Cause it’s true, if you have the mortgage insurance over time, you’re gonna pay more.
Collier: For the house and I will pay more interests.
David: Yes, yeah.
Collier: Right? So makes sense to me.
David: Because you’re paying interest on a larger amount.
Collier: Tell us real quick, because I’ve always found it fascinating, it’s funny when I find it fascinating, but you’ve been a real proponent or is saying 20 percent down or is 5 percent generally or whatever you’re comfortable with obviously, but you believe that the consumer is better off holding their own money than giving it to the lender or to the transactions. You still maintain that? In other words, you’re not gonna make much of a difference, if you make 5 or 10 or 10 to 15, you might as well go into 20 or you should go back to that 5 in the many cases.
David: Well, it just depends on your situation like how much cash you have available, how much other savings, you have an emergency fund, you have any retirement savings, things like that, so it really depends on that kind of stuff as to whether or not you should go 5, 10, 15, 20 percent down.
Collier: What if I have the money, let’s say it’s about 400,000 on house and I got more than a 100,000 to put down, I would need to put 20 percent down, need 80,000 is there any reason for me, if I have a 140 available for me not to put the 20 down, is there any financial reason to go 5, 10 instead.
David: Not really, I mean if I got that much cash to put down and you got other savings, you got an emergency fund and things like that then you’re gonna save all the expenses in mortgage insurance, so yeah I would probably go ahead and put the 20 percent down. Now, sometimes 25 percent down would get you better interest rates, so some people look at that but.
Collier: That’s a nugget.
David: Yeah, so definitely just depends on your situation.
Collier: Well, moving on to the third point here which is, you often will stand out in a competitive market, big time right?
David: Yeah, a lot of times I guess sellers would look over the different offers, now I think this would really come into place with the 20 percent down (inaudible), loan which they loan.
David: You know, they probably would rather take that one.
Collier: In a multi-offer situation we do look at that, we go all right, ‘cause all things are gonna be (inaudible), a lot of these and you go hold on a minute, this person can only afford 10 percent down, this person has cash available to them, that can put 20 percent down if there was, they were (inaudible), on which one to take, is just that one thing that can take.
David: Yeah, it’s just, it’s just more solid financial footing for some people with 20 percent down, obviously a lower down payment.
Collier: All right, number 4, you won’t have to pay PMI.
David: Yeah, private mortgage insurance, obviously we’ve talked about this in a couple other scenarios, but if you have more than 20 percent down you don’t have to pay the mortgage insurance either, you know we’re doing a lot of different things at mortgage insurance now like, lender pay mortgage insurance, which is built in (inaudible), the interest rates, finance mortgage insurance where you have a single premium or you just put a little bit more down finance, the rest is gonna pay it monthly.
Collier: Is that lender pay mortgage insurance? If I remember you saying this correctly, we were better off on that lender, am I? The lower the rates of interest rates are the better, you’re gonna be doing that right? Because to make it you’re all gonna bump (inaudible).
David: Yeah, you just bump the (inaudible), to pay for it, usually your better credit scores make better since.
David: ‘Cause the mortgage, all your mortgage insurance rates are based on your credit score so.
Collier: Interesting, now talk about PMI in terms of what’s the rule on dropping off, they are gonna, the 78 percent loan of (inaudible), is based on initially the original appraisal correct?
David: Yeah no, the original purchase price.
Collier: Purchase price, okay.
David: They’re gonna base all that offer, automatic cancelation is based on the purchase price, you can ask for it to be reviewed with the new value, but they’re gonna probably have to get an appraisal. Now, if you go through the whole refinance process then, definitely you can use the new.
Collier: I say you guys go through it and then you don’t do it, but you still have the appraisal.
David: Yeah, but if you just feel like your house went up in value, you wanna contact your bank and then say, I wanna ask for this to be removed and then you have to get an appraisal and that you know, that might be a little different situation, but automatic cancelation would go off your purchase price.
Collier: This was a question I would have as a consumer though. If you, some, I mean almost every lender, mortgage lender out there is selling to about 6 different banks and you start research my Bank of America, BB&T, Wells Fargo, those type (inaudible), should they call you at that moment even though you’re (inaudible), can you have any influence in that?
David: Influence over who is servicing the loan?
Collier: (Inaudible), over that 20 percent over going through, can you help them navigate through whether or not they have the 78 percent to drop PMI?
David: No, because that is going to be, obviously the automatic cancelation is a simple, simple formula, right? You go on the purchase price, there is no.
Collier: There is no intervening (inaudible).
David: There is no objective you know, there is no subjective or objective (inaudible).
Collier: ‘Cause you paid it down.
David: Yeah, because there’s a purchase price and there is your credit balance, that’s all that’s involved.
Collier: And so why do you see most people getting rid of it in the lowest 80’s? And the oh my gosh.
David: Oh no, if you want to get it you want to get that new value, right? ‘Cause I can’t influence the new value, so if you wanna have a new value considered then that is.
Collier: God, it wouldn’t maybe a good time for them to call you and you say hey, I know interest rates are down 3.5 owning the 15, ‘cause 5 years ago you weren’t making as much as now, but then you had a really good job, you made a lot of money and they called you and said hey, what are my refinance options?
Collier: ‘Cause I have (inaudible), 4 and a half for the MI’s, would that make sense?
David: Yeah, most refinance options in this market you are looking shave in the turn, so cut down if you got 27, 26 years left and you wanna cut down to 20 or 15.
Collier: I’m, I’ve told you this before, you blessed our family, we gave you a set advice.
Collier: And I’m not kidding, 45,000 dollars or something like that over the time and that I’m telling you, I’m in the business every day and if he’s not giving us a set advice we would not have the ability to the next move.
David: The equity position (inaudible).
Collier: Yeah, because what do we do, he brought it to me because that’s what he does with his client and what you said to me was, ‘cause I won’t even know my radar, wouldn’t even know my radar! Just like is not on yours because that’s going on, I’ll do that next week right?
Collier: And so, so many times you hear that, ‘cause we hear some other industries, but if you’re mortgage guys, ‘cause they have so much going on now, but they’re calling you saying hey, I reviewed the file and I think this may help us, you may wanna listen because here is the thing, when we did it he said now listen, there’s gonna be a break-even point in about 18 months in other words, there are gonna be some extra fees (inaudible), but once we burn past 18 months the burn rate on the extra equity was double or more.
David: Yeah, the acceleration of the payments, do it (inaudible).
Collier: Yeah, I mean is a snowball.
David: Yeah, yeah.
Collier: It’s amazing.
David: But you know, you got to look at each situation, you got to look at each person’s situation, what they’re doing currently to see if it makes sense.
Collier: Right so, just to remind you (inaudible), we went from a 30 to a 20 then, he says hold on (inaudible), down again and we went to a 15, so each time we stayed at the exact same payment and quite frankly we could probably see that over the last (inaudible), re-finance after we’ve seen these rates go down, but you would have seen a similar drop and keep coming down, because remember you could have been close to 5 percent on the 30-year, but remember what he said that would be on a certain point in the last November, but now if you could afford to get into the 15-year in a 3 and a half, that’s a point and a half difference.
David: Yeah, absolutely.
David: Next is, 10 habits of successful real estate investors.
Collier: Yeah, you and I know there are good and bad, what got people in trouble I guess was in the last (inaudible), bust if you will, was bad habits and one thing is.
David: Well, I mean is just people getting too excited and pulling in too many properties, is you know just actually for you.
Collier: Yeah right, hey so, the first one is an obvious one, hey Tammy, good to see you!
David: All right, now we can get started.
Collier: All right we’ve been waiting here for.
David: Real Estate Happy Hour is on Thursday, we’re going!
Collier: Yeah, here we go, but make up plan, so many investors own the house because I wanna be like, I was watching TV at midnight and they said you can make millions selling real estate or buy and sale real estate, let’s just go do it.
David: Or infomercial or one of those recorded phone calls hey, this is coach Josh, I mean, these people call me all the time hey, this is coach Josh.
Collier: Coach Josh.
David: I’ll be in.
David: Birmingham, I don’t know what are you doing dude?
Collier: Yeah right, and when I come and with my friends there, I won’t be there, but anyway, make-up plan, one of the best things you can do, is kinda say is hey, here is all the money I have, do I have a plan, do I have a budget, do I have all those things and am I ready to do what I’m about to do and do I understand it? Because if you don’t understand it, you gotta go to the second thing, which is know the market.
David: Yeah you gotta know the market and I hear a lot of people and Tammy (inaudible) let’s say you know maybe this is not the best time or it is a great time for Real Estate investing you know, so It depends on what’s going on now, depends on the inventory. I mean are there a lot of great deals out there, I would say, right now maybe not because the inventory is so low, and houses are you know, people buyers are aggressive.
Collier: And not well there, here’s a problem and Tammy is here, she can (inaudible) in. The problem with a lot of these foreclosures are that usually they’re good investment opportunities, the government (inaudible) may and hood, are gonna exclude investors from even having the opportunity for what is it, 2, 3 weeks, which is bad quite frankly for the market, because the investors generally gonna make the house a lot nicer instead of giving (inaudible) the foreclosure that can barely afford it would not improve it, right? So.
David: The only problem with that though and I think the reasoning behind Hood and (inaudible) doing this is the investor concentration in any market is not good.
Collier: That’s true.
David: And that’s what really crashed the market. So that’s probably the reason why the (inaudible).
Collier: I get it, I get it, but still it just drives me bananas!
David: And Tammy says she makes fall for the good deals you know, that makes sense because that’s usually a slower time for a lot of buyers, right? So maybe there will be as active and so maybe a little more opportunity for investors to get in there.
Collier: Well, you know the next one’s quite frankly, maybe the most important because while your town and your city like Birmingham in general or all the suburbs it seems like a large area. The real estate community is fair always small and get around there then the next suggestion habit is be honest and if you start screwing people, you screw the painters, you screw the realtors, you screw anybody involved in the transaction, you lie to your lender, look, what’s gonna happen is not good the deals are not gonna come to you, our best ones, I mean our best investors obviously they’re the first ones were on the phone with saying hey ‘cause they’re honest, look there’s nothing wrong with being tough, I actually like someone this tough but honest.
David: Yeah, you got to figure out how to make money it is a business, but you know it’s a repetitive business, so if you do things in one transaction to upset a large group of people is not gonna be a whole lot of transactions behind it, I would assume.
Collier: And the other thing, we see a lot of these I will buy your house, ugly houses those type things, one of the things that we see between the good and bad guys around is the, the bad one will go up and not gonna think into the best interest of that seller, but if they’re not knowledgeable in the situation, don’t take advantage of them because karma is a real witch and it’ll come back at you.
David: Yeah, the next one runs is which develops a niche?
Collier: (Inaudible), which niche, anyway yeah, that I mean find an area, a niche in this situation can be anything, and could it be, I buy duplexes, I buy condos, I buy houses in Alabaster.
David: Or I just love doing a certain type of repair, like you know a lot of houses need flooring and paint and I you know, I identified those and I’m just making stuff up you know, maybe you have a certain special thing about a house, maybe you do kitchens, maybe you do master bath restores.
Collier: And that’s what that house needs.
Collier: Encourage referrals, let me say this, let the best ones come, listen, if you’re an investor out there, get to know every realtor, every lender, listen they hear it just like we do, from the investors ‘cause they help to finance a lot of this stuff. Anywhere, you can possibly get a referral, divorce attorneys, hey nobody knows better about divorce (inaudible).
David: Then, I see it on Facebook too, personal Facebook and talking about.
Collier: Hey (inaudible), know.
David: So that’s right, the next one is stay educated.
Collier: Yeah, educate yourself not only in the market about how the whole process of investment works, we talk about it at the end of every show at personal finance, what are you reading? And like, I hear people ask me all the time, since I was a tax attorney, hey I’m thinking about putting some real estate and the RNA. Hold on a minute, because if you’re not educated on what you have to do because is a big deal, don’t do it, right? See, you really got to, there is more to it than make say, I just make sure that you’re educated or the folks advising you are educated on it.
David: Yes absolutely, understand the risk obviously, you need to know what that is worth, the biggest place where you can lose money.
Collier: Theft, people steal from you, you are not there, and they’re gonna stay, what happens when they steal my will, insurance covers me if they steal my HVAC?
David: Yeah, it is great, I love hearing problems with businesses, I was talking to (inaudible), just the new answers you know, new things like he bought a cleaning company and he was telling me that they turn over their whole staff. They only have a staff like 15 people, but for the whole staff in 2 months and it cost 500 bucks on average, 500 bucks a person to train them.
Collier: You are kidding, really?
David: That’s funny and they had one.
Collier: To train hold on, you said to train each one.
Collier: Oh my, that’s (inaudible), grand, you must learn until you can earn, that’s right.
David: Yeah, but you know he had one that found workers (inaudible).
David: And they had like 13 cases of workers (inaudible), they were professional workers for filling.
Collier: Hey, I’m gonna join you, so I can file.
David: They you know, there’s nothing you can do about that, I just think those kind of details about businesses are interesting, which is the same thing here, you understand the risk, you’re gonna learn them, if you get the business right.
Collier: You’re gonna learn it, since this is where you’re having a fantastic insurance agent that you can trust, because a lot of the insurance agents haven’t been in the business for long or they haven’t seen the negative side, what you just talked about, you find it fascinating is that the good and the bad of having business. You need an insurance agent that has seen it ‘cause often times, takes years because you buy a policy before you start seeing problems and there is no better way to learn that with problems happening to your folks, but now the next one is invested and accounted, let me say the tax has changed, your first couple years of investment property get to an accountant to do your taxes, in those years because there’s something like clause spaces, there’s all these things that are rolling, make sure the value will be there no matter what it costs.
David: Absolutely, next thing is or last 2 are find help and build a network.
Collier: Yeah, same thing, right? And who is gonna be my painter, now not only who’s gonna be my painter, who is gonna be my back painter ‘cause he may be busy, believe me, we got a lot of labor right now that is busy.
David: And who’s gonna see a hose? An opportunity to think about me, you know that’s your network.
Collier: Think about it, there are electricians in the houses, working on getting people ready, the home inspectors, those type of people quite frankly, investors in Birmingham, some of them are home inspectors, why? Because they’re going in these houses. They may know that (inaudible), in the community, the builder (inaudible), builds a good house, right? So, you never know where that network is gonna come from so, those are 10 habits to successful real estate investments.
David: Yeah so, the last thing we wanna do today is talk a little bit about personal finance, I found an article about 5 ways to start investing, so you know a lot of people put this off, a lot of younger people struggle figuring this out, so just wanna talk about this a little bit, it is so easy you know, just a little bit 50 bucks a month, but the key is to just start, the key is you develop good habits, regularly putting money away, things like that, so here is 5 ways to start investing, the cookie jar approach.
Collier: Well, it sounds easy.
David: It’s roll away cash you know, people save up change and things like that, but just roll away cash and find out how to let that accumulate.
Collier: Right, right, the best example’s you ever watch people you know, I had a friend one time that threw quarter pennies and listen to this, big (inaudible), and laugh at first and now like 3 years later I went back and this entire thing was full and all he was doing is everyday coming apparently, throwing whatever it is of loose change and you know my (inaudible), meh, he can’t make much money doing that, save much money, but I guarantee you he did because over time now he didn’t get interested on.
David: Right, and that’s one thing, somebody’s online banks tap you know 2 plus percent AP while saving, which is not awesome, but hey is a guarantee that next one is getting a robot advisor.
Collier: And you talked about this week, we had a discussion with a mutual acquaintance this week about personal finance, since you mentioned this.
David: Yeah, and there are some robot advisors you can put money with, and then look into this, see what the minimums are you know, you can kind of cater a portfolio and they will manage it for you, you know be in and out of trades, based on their decisions.
Collier: You said they’re, is there a human behind it setting the parameters? But the computer is going to try its darn best to keep your guidelines intact, how much, what percentage wage bonds to equities, to cash.
David: Yeah, a few of this well front, in one finance, betterment and swell is very interesting, swell, it’s socially responsible.
Collier: Responsible my AOC.
David: I don’t know, they got a 50-dollar minimum and no oil, no oil tobacco weapons or prior (inaudible), interesting.
Collier: Yeah and all the fun, I don’t know how, but this is not in there, they probably NJ.
David: Number 3 is your employers retirement plan, ok you can, you can just set off you know, 1 to 3 percent and sometimes your employer will match this, but just think about (inaudible), you’re not gonna notice that until it’s gone.
Collier: No, no, I told everybody last week that man, I switch to 10 percent from whatever that 6 percent, 7 percent, we didn’t notice the difference folks, because we weren’t seeing the money (inaudible), existed it’s all psychology in this process, I think, I know you, I mean a lot of it.
Collier: Although, from what I heard some builds the college for just what’s thinking, it’s real.
David: Yeah, it’s real, it’s true, number 4, I don’t really love this because it doesn’t give you a lot of details, about what to do, mutual investments, mutual funds you know, you gotta do some of your research right there.
Collier: But here, my guess is the 3 big discounters, Fidelity, Schwab, (inaudible), they can be your places to search this out.
David: Yeah, absolutely, yeah, number 5 is treasury securities, with treasury direct, I’m not sure what this is, I’m not familiar with it, it’s probably more of what they can survey, the investment that I’m interested in, is fixed income Government securities.
Collier: I mean, it sounds like the saving’s bonds (inaudible).
Collier: I remember getting those and you’d be like, what am I gonna do with this?”
David: Guaranteed income.
Collier: That means that I have to wait? There is my mom, she has to wait to Copenhagen bon voyage up there, in the wake-up Norwegian area.
Collier: Fewer, they’re going to Saint Petersburg, they’re on the high dollars cruise lines, as they like cruising different waters than you and me.
Collier: You know what I mean, we go with the people, we like being able to, anyway we will see you next Thursday, don’t forget about the podcast! It’s huge, it’s everywhere you can find great!
Collier: That’s right pod, anyway Google podcast, Apple podcast, Stitcher, all that great stuff, so anyway hope you have a great week!
David: Yeah, have a good time, we’ll see you on Thursday.
Collier: All right! See you later (inaudible), bye!