>> GOOD EVENING AND WELCOME TO "BASIC BLACK."

WE ARE GLAD YOU'’RE WITH US THIS EVENING.

I'’M COHOST OF "MORNING EDITION" ON 89.

SEVEN.

TONIGHT, THE AFFORDABLE HOUSING LOTTERY.

WHAT YOU NEED TO KNOW BECAUSE -- LET'’S FACE IT, FINDING AN AFFORDABLE HOME IS A HOT TOPIC HERE IN BOSTON AND AROUND THE COUNTRY.

HOWEVER, MANY PEOPLE ARE TURNING TO AFFORDABLE HOUSING LOTTERIES.

DESPITE SOME OF THE RESTRICTIONS AND LOW INVENTORY, HOUSING LOTTERIES HAVE BECOME A PATHWAY TO HOMEOWNERSHIP AND GENERATIONAL WEALTH FOR FIRST-TIME HOMEBUYERS OF COLOR.

WHAT DO BLACK AND BROWN HOMEBUYERS NEED TO LEARN ABOUT THE AFFORDABLE HOMEBUYING PROCESS, AND WHAT OPTIONS ARE AVAILABLE WHEN IT COMES TO SECURING THEIR FIRST HOME?

JOINING US TO DISCUSS THIS THIS EVENING IS A FINANCIAL ANALYST AND HOMEBUYER EDUCATOR WITH FINANCIAL EDUCATION ASSOCIATES, A REALTOR WITH THUMBPRINT REALTY, AND ECONOMIC OPPORTUNITY DIRECTOR FOR THE SOMERVILLE COMMUNITY CORPORATION WHERE SHE OVERSEES THEIR FIRST-TIME HOMEBUYERS AND FINANCIAL LITERACY PROGRAMS, AND THE VICE PRESIDENT OF CORPORATE RESPONSIBILITY AT CHASE BANK.

THANK YOU ALL FOR BEING HERE THIS EVENING.

WELCOME.

TAYLOR, I'’M GOING TO BEGIN WITH YOU, JUST TO SORT OF PAINT THE PICTURE FOR US OF THE HOUSING MARKET RIGHT NOW BECAUSE WE ARE COMING OUT OF THE PANDEMIC.

A LOT WAS GOING ON IN TERMS OF BUYING AND SELLING.

WHERE ARE WE?

>> WE ARE LOW INVENTORY WITH A LOT OF DEMAND.

>> WHAT DOES THAT MEAN FOR AFFORDABLE HOUSING?

>> THAT'’S A GOOD QUESTION.

>> IS THERE ANY AFFORDABLE HOUSING, ESPECIALLY IN A PLACE LIKE AUSTIN -- BOSTON?

>> AFFORDABLE HOUSING IS VERY DIFFERENT FROM WHAT IS TYPICALLY ON THE MARKET.

I WANT TO SAY IT IS LIKE A SUBSECTION, AND WHAT YOU SEE AS FAR AS INVENTORY IS NOT NECESSARILY WHAT EVERYONE IS LOOKING FOR.

WHEN IT COMES SPECIFICALLY TO AFFORDABLES, THEY ARE FEW AND FAR BETWEEN.

THE LAST LOTTERY, THERE WAS ONE UNIT, BUT THEY RECEIVED 5000 APPLICANTS, SO THERE IS A NEED.

>> FROM WHAT I UNDERSTAND OF THAT LIST, THOSE ARE 5000 THAT ARE APPROVED FOR IT.

LET'’S SAY FOR INSTANCE, YOU ARE APPLYING FOR A THREE-BEDROOM, BUT IT'’S ONLY TWO PEOPLE IN THE HOUSEHOLD.

YOU WOULD NOT BE ELIGIBLE FOR THAT PROPERTY, SO THESE WERE 5000 ELIGIBLE APPLICANTS.

>> WOW.

WHEN WE SAY ELIGIBLE, WHAT DO WE MEAN?

WHAT QUALIFIES AS ELIGIBLE?

IF EITHER OF YOU WANT TO CHIME IN ON THAT AS WELL, YOU ARE WELCOME TO.

>> ELIGIBILITY SPECIFICALLY TO THAT POINT THAT I WAS SPEAKING TO IS HOUSEHOLD TIES.

HOUSEHOLD SIZE HAS TO MEET THE ROOM KIND, SO IF YOU HAVE THREE PEOPLE IN THE FAMILY, AND IT IS A MOM AND DAD, THE MOM -- THE DATA'’S NOT GOING TO SLEEP IN THE OTHER ROOM, THERE'’S ONE CHILD, YOUR ELIGIBLE FOR A TWO-BEDROOM.

>> WHEN IT COMES TO PEOPLE SEEKING AFFORDABLE HOUSING, EVERYONE IS SEEKING AFFORDABLE HOUSING RIGHT NOW BECAUSE IT IS SCARCE, RIGHT?

BUT HOW MANY PEOPLE ARE REALLY WANTING TO BE HOMEOWNERS RIGHT NOW?

>> YOU WOULD BE AMAZED.

I THINK THE IDEA OF OWNING A HOME IS GREATER THAN THE ACTUAL "I'’M GOING TO GO AND DO THIS."

WE HAVE PEOPLE WHO TAKE THE CLASSES.

I THINK AS PEOPLE NOWADAYS, YOU LOOK AT IT AS DO I REALLY WANT TO TAKE THIS LEAP INTO OWNING MY OWN HOME AND HAVING TO TAKE CARE OF ALL OF THIS, AND NOT TRULY UNDERSTANDING HOW MUCH OF AN ASSET IT IS.

AS WE CONTINUE TO TALK TO PEOPLE AND ENCOURAGE PEOPLE THROUGH YOUR CLASSES, EVEN THE PEOPLE WHO TAKE THE CLASSES, SAY YOU HAVE 30 PEOPLE IN THE CLASS, YOU MAY HAVE TWO THAT WILL CONTINUE ON WITH THIS PROCESS TO ACTIVELY LOOK.

>> I KNOW YOU TEACH FIRST-TIME HOMEOWNER CLASSES AS WELL.

ARE YOU SEEING A SIMILAR TREND?

>> I CERTAINLY AM.

WE DO 35 CLASSES EVERY SINGLE YEAR, AND OUR MOST RECENT STATS FROM 2022, OF ALL OF THOSE FOLKS THAT TOOK CLASSES, ONLY 47 ACTUALLY WENT FORWARD AND BOUGHT A HOUSE.

OUR CLASSES ARE FULL NOW.

WE ARE TALKING WHAT HE OR, SO THERE IS STILL A LOT OF DEMAND.

PEOPLE ARE STILL ASPIRING TO BE HOMEOWNERS, BUT THE REALITY OF MAKING THAT HAPPEN IS A LOT LESS.

>> EVIDENTLY SO.

OF COURSE, WE ARE OPERATING IN A REALLY COMPLEX ECONOMIC LANDSCAPE AT THIS MOMENT.

WE ARE TALKING ABOUT BANK FAILURES HAPPENING LEFT AND RIGHT, INFLATION, AND A LOOMING RECESSION.

HOW IS THAT IMPACTING THE HOUSING MARKET AND THE MOTIVATION FOR PEOPLE TO WANT TO BUY A HOME?

>> IT IS VERY SIMILAR.

WE STILL SEE A LOT OF PEOPLE COMING TO JUST INQUIRE FOR INFORMATION.

WHAT I THINK ABOUT THE BANKING INSTITUTIONS AND THINK ABOUT WHERE I WORK AT CHASE BANK, WE BECOME A HUB FOR RESOURCES.

IF IT'’S TOOLS, PRODUCTS AND SERVICES, OR JUST GETTING A CONNECTION WITH SOMEONE WHO CAN HELP THEM THROUGH THE PROCESS.

THAT FLOW OF PEOPLE COMING INTO THE DOORS, ASKING, INQUIRING, BECAUSE WE ALSO FOCUS ON EDUCATION AT CHASE BANK, PEOPLE ARE COMING, AND JUST LIKE IT IS VIRTUALLY, BEING PACKED, SOMETIMES OUR COMMUNITY CENTER IS PACKED, TYPICALLY WITH HOMEBUYER WORKSHOPS, WHICH WE DO IN COLLABORATION WITH A NUMBER OF DIFFERENT ORGANIZATIONS IN THE COMMUNITY.

>> I THINK PEOPLE ARE CURIOUS TO KNOW ABOUT THE IMPACT OF THE ECONOMY AND WHERE THEY KIND OF FIT IN THIS SITUATION AS THEY THINK ABOUT HOMEOWNERSHIP.

>> I THINK IT IS IMPORTANT TO KNOW BECAUSE EVERYONE IS SAYING THE SAME THING.

WE HAVE PACKED COURSES AND CLASSES, BUT YET PEOPLE ARE NOT BUYING.

I WANT TO BE CLEAR THAT IS IT'’S NOT BECAUSE PEOPLE DON'’T TO BUY.

IT IS BECAUSE THEY ARE NOT READY BECAUSE THEY GET INTO A CLASS OR COURSE AND LEARN THE STEPS THEY NEED TO TAKE AND LEARN THEY NEED TO BE APPROVED HOUR TO GET PREAPPROVAL, AND THEN IT IS LIKE, I HAVE A LONG WAY TO GO.

>> THE PROCESS, RIGHT?

AS PART OF THAT EDUCATION, WE ARE TALKING ABOUT BUDGET, CREDIT.

IN SOME OF THOSE CLASSES, PEOPLE ARE LEARNING ABOUT TOOLS AND RESOURCES THAT CAN HELP THEM TO SET THEMSELVES UP FOR THAT PATH FOR THE FIRST TIME AT, LIKE, 45.

>> THERE'’S A WHOLE LOT OF STUFF CONTRIBUTING TO THE LACK OF THAT KNOWLEDGE.

SYSTEMIC STUFF.

WHAT ARE YOU HEARING FROM PEOPLE WHO ARE COMING TO YOUR CLASSES AND SAY, I'’M LOOKING AT THE HOUSING MARKET NOW, EVERYTHING IS REALLY EXPENSIVE, I DON'’T KNOW WHERE TO START, BUT I'’M COMING TO THE SOMERVILLE COMMUNITY CORPORATION BECAUSE THIS IS A PLACE THAT SHOULD BE ABLE TO HELP ME.

WHAT DOES NOT HELP LOOK LIKE?

QUICKLY HELP WITH OUR CLASSES IS HAVING EXPERTS IN THE FIELD YOU CAN ACTUALLY TALK TO.

WE HAVE A HOME INSPECTOR, THE ATTORNEY, THE REAL ESTATE PERSON, AND YOU GET TO ASK THOSE REAL-TIME QUESTIONS AT THE SAME TIME IN THE CLASS.

WE DO A SURVEY IN THE BEGINNING.

HOW COMFORTABLE ARE YOU BUYING A HOUSE, AND MOST PEOPLE I LIKE NOT AT ALL, BUT IN THE END, MOST PEOPLE ARE LIKE I FEEL LIKE I COULD DO THIS IN THE FUTURE.

THE INTERESTING THING IS WE ALSO ASK HOW SOON WERE YOU THINKING TO BUY.

AT THE END OF THE CLASS, A LOT OF PEOPLE ARE NOT THINKING ABOUT BUYING SOONER BUT ARE MORE COMFORTABLE WITH BUYING.

WHAT WE SEE IS PEOPLE SAYING I'’M NOT SURE I CAN DO THIS.

EVEN AFTER THE CLASSES, ONE OF THE ONE-ON-ONE COUNSELING THINGS WE DO IS IF YOU WANT TO CONTINUE THIS DISCUSSION, WE CAN CONTINUE TO HAVE THIS DISCUSSION.

WE CAN TALK ABOUT WHAT THESE THINGS ACTUALLY LOOK LIKE.

MOST OF THE TIME, THE NUMBERS NECESSARY FOR BUYING A HOME PEOPLE DON'’T WANT TO KNOW.

LIKE SOME OF US DON'’T WANT TO GET ON THE SCALE, BUT YOU NEED TO KNOW, HOW IN DEBT AM I REALLY ?

WHAT IS MY CREDIT SCORE REALLY?

YOU HAVE TO TAKE THE TIME AND HAVE A MOMENT OF YOURSELF AND SAY, I DON'’T KNOW WHAT IT IS, BUT I HAVE TO KNOW.

WHATEVER IT IS, I KIND OF COME ALONGSIDE AND SAY BUT WE CAN GET YOU THERE.

YOU HAVE TO BELIEVE IN YOU.

I ALWAYS TELL PEOPLE, YOU HAVE TO KNOW YOUR WHY.

WE'’LL PUSH YOU THROUGH, NO MATTER WHAT YOU COME AGAINST.

>> WHERE DUST SOMETHING LIKE HOUSING LOTTERY FIT INTO THIS LANDSCAPE AND MAYBE MAKE THIS REALITY MORE POSSIBLE FOR A LOT OF PEOPLE?

>> THE ISSUE WHEN WE TALK ABOUT HOUSING LOTTERIES IS THAT AS WE ALL KNOW, THERE WILL NEVER BE ENOUGH AFFORDABLE HOMES DEVELOPED OR REHABBED FOR ALL THEY NEED THAT IS THERE.

THEREFORE, THE ONLY FAIR WAY TO DISTRIBUTE THE FEW AFFORDABLE PROPERTIES OUT THERE ARE LOTTERY SYSTEMS.

CERTAINLY WHEN A DEVELOPER IS CREATING AN AFFORDABLE COMPLEX OR PROPERTY, THERE'’S A NUMBER OF THINGS THEY ARE LOOKING AT.

CERTAINLY THEY ARE LOOKING AT POTENTIALLY DEMOGRAPHICS.

THEY ARE POTENTIALLY LOOKING AT PEOPLE THAT ALREADY HAVE HOUSING VOUCHERS.

THEY ARE LOOKING FOR PEOPLE THAT ARE 55-PLUS.

WE HAVE HAD LOTTERIES WHERE PEOPLE WERE LOOKING FOR ARTIST COMMUNITIES.

THE BOTTOM LINE IS THAT THERE IS A TARGET AUDIENCE.

THERE IS A PROCESS, AND THE PROCESS FOR A LOT OF PEOPLE IS COMPLICATED.

WE ARE ASKING THEM TO COME UP WITH THREE YEARS'’ WORTH OF TAX RETURNS.

IF YOU ARE LOOKING AT AN ARTIST, OFTENTIMES THAT SCHEDULE C IS NOT VERY ROBUST BECAUSE THEY MADE A CHOICE TO MINIMIZE THEIR TAX OBLIGATION, WHICH IS CUTTING OFF THEIR NOSE TO SPITE THEIR FACE.

BUT THE BOTTOM LINE WITH THE LOTTERY PROCESS IS THAT YOU HAVE TO PROVIDE ALL THAT DATA.

MY FRIEND SAYS YOU CANNOT JUST PRETEND THAT LIFE IS GOOD.

LIFE IS NOT GOOD IN MANY SITUATIONS.

I WAS SHARING WHAT WE WERE CHATTING IN THE GREEN ROOM THAT I INITIALLY STARTED TEACHING FOR THE CITY OF BOSTON, CERTIFICATES WERE ONLY GOOD FOR A YEAR.

NOW THEY ARE GOOD FOR THREE YEARS, ACKNOWLEDGING THE FACT THAT PEOPLE HAVE THE DESIRE, BUT THEY NEED TO WORK THE PROCESS.

THEY NEED TO GO THROUGH THE STEPS.

THEY NEED TO SAVE MORE AGGRESSIVELY.

THEY NEED TO WORK ON THEIR CREDIT.

THEY NEED TO BE MINDFUL OF WHAT A CREDIT SCORE IS REALLY MEASURING, WHICH IS RISK.

HOW MUCH CHRIS CARR YOU BRING INTO TO THIS POTENTIAL LENDER'’S TABLE?

ALL OF THAT IS INCORPORATED IN THAT LOTTERY PROCESS BECAUSE MOST LOTTERIES, IF WE ARE TALKING HOMEOWNERSHIP NOT JUST MENTOS, YOU NEED TO BRING A PREAPPROVAL.

THE LENDER IS LOOKING AT HOW YOU HAVE PAID YOUR BILLS, DO YOU HAVE AN INCOME TO SUPPORT THIS IF YOU ARE THE LUCKY PERSON THAT IS TO BE CHOSEN?

WHAT IS GOING ON WITH YOUR SAVINGS?

DO YOU HAVE A 3%, 5%, 10% THAT YOU ARE GOING TO BE OBLIGATED TO PUT DOWN?

>> ARE THESE ALL THINGS PEOPLE NEED TO HAVE -- AT WHAT STAGE?

DO THEY NEED TO HAVE IT BEFORE THEY START TAKING THE COURSE?

>> IT IS NOT THAT THEY NEED TO HAVE IT IN PLACE BEFORE THEY TAKE THE COURSE, BUT THEY NEED TO HAVE IT IN PLACE BEFORE THEY ARE GOING TO BE IN THE POSITION TO BUY.

WHEN I TELL STUDENTS ALL THE TIME IS YOU ARE ASKING SOMEONE TO LEND YOU $300,000, $400,000 IN TODAY'’S MARKET.

IF YOU WERE SITTING ON THE OTHER CITED THE DESK, WOULD YOU LEND YOU MONEY RIGHT NOW?

>> AS SOMEONE WHO IS AT LEAST IN SOME CAPACITY, WHAT DO WE NEED TO LOOK FOR?

>> INCOME TO DEBT RATIO IS DEFINITELY WHAT PEOPLE ARE LOOKING AT, AND YOUR CREDIT SCORE IS A BIG PIECE OF IT.

AT JPMORGAN CHASE, WE HAVE WHAT IS CALLED CREDIT JOURNEY, WHICH IS A PHENOMENAL TOOL.

PEOPLE CAN START TO LOOK AT WHERE YOU STAND TODAY AND THE TOOLS AND RESOURCES I NEED TO HELP ME BUMP MYSELF UP IF I NEED TO.

WE ALL KNOW CREDIT SCORES AFFECT INTEREST RATES, SO HOW DO WE PREPARE PEOPLE WHO MAY NOT BE AT THE STARTING POINT?

THE AVERAGE PERSON DON'’T EVEN UNDERSTAND WHAT MAKES UP THE CREDIT SCORE, SO SOME OF THAT EDUCATION HAPPENS ONE-ON-ONE, WHICH ONE OF THE BEST TOOLS YOU CAN HAVE HIS MEETING WITH SOMEONE ONE-ON-ONE TO KIND OF UNDERSTAND IT, BUT ALSO TAKING A CLASS, BUT AGAIN, YOU'’RE TAKING A CLASS WITH 40 OTHER PEOPLE.

IT CAN BE OVERWHELMING EVEN IF YOU ARE HEARING THE INFORMATION, BUT THAT ONE-ON-ONE HELPS.

WITH THE JOURNEY, OUR BANKERS SIT DOWN WITH FOLKS AND HELP THEM UNDERSTAND HOW TO DO THIS AS PART OF THE PROCESS.

WHEN WE TALK ABOUT THIS TO PARENTS, WE TALK ABOUT THIS AS WE NEED TO ALSO START TO THINK ABOUT BUILDING YOUR TEAM.

PART OF THAT TEAM IS YOUR BANKER, YOUR LENDER.

>> WHERE DOES THAT BEGIN?

I'’M INTERESTED TO HEAR YOUR THOUGHTS ON THIS, TOO, TAYLOR, BECAUSE PEOPLE DON'’T REALLY KNOW IF THEY DON'’T KNOW EVERY HOUR MORTGAGE LENDER OR HOUSING INSPECTOR.

WHAT SHOULD THEY BE DOING?

>> I PRIDE MYSELF ON BEING A ONE-STOP SHOP, SO I WILL GIVE YOU THE OPTIONS.

CALL THESE THREE DIFFERENT LENDERS.

SEE WHO IS THE BEST FIT FOR YOUR PERSONALITY.

NOT ONLY YOUR PERSONALITY FOR WORKING WITH THEM, BUT TAKE A LOOK AT THEIR RATES.

ASK THEM QUESTIONS.

A LOT OF PEOPLE DON'’T HAVE A REAL ESTATE ATTORNEY, SO HERE'’S THREE DIFFERENT REAL ESTATE ATTORNEYS.

GIVE EACH OF THEM A CALL AND SEE WHO IS THE BEST FIT FOR YOU.

EVEN INSPECTORS, SO I GIVE PEOPLE OPTIONS FOR THEM TO CHOOSE, SO IT IS NOT ME JUST PUSHING SOMEONE ON THE, BUT FOR THEM TO FIND WHO THEY WANT TO WORK WITH THAT I HAVE WORKED WITH HIM IN THE PAST.

WE HAVE A RELATIONSHIP.

I KNOW I RATES.

I UNDERSTAND -- LIKE, THIS IS MY CLIENT.

IF SOMETHING HAPPENS, I CAN GO BACK AND STAND ON MY RELATIONSHIP AND SAY, HEY, WHY DID THIS HAPPEN THE WAY THAT IT DID?

SO IT IS DIFFERENT WHEN YOU DO BUSINESS WITH JUST ANYBODY VERSUS DOING BUSINESS WITH SOMEONE YOU HAVE A RELATIONSHIP WITH.

>> IT SOUNDS LIKE PART OF IT IS A TRUST BUILDING EXERCISE.

>> OF COURSE, YEAH.

>> BUT IF YOU DON'’T KNOW, EVEN IF YOU ARE GETTING CONFUSED, FINANCING ALL THE STUFF, IF THAT IS OVERWHELMING FOR YOU, HOW DO YOU ORIENT YOURSELF TO KNOW YOU'’RE MAKING THE RIGHT DECISION WITH WHO YOU WORK WITH?

>> IT IS ABOUT ASKING THE QUESTIONS.

A LOT OF US DID NOT HAVE THESE DINNERTIME CONVERSATIONS, SO I CANNOT TELL YOU HOW MANY CLIENTS THAT ARE OVER THE AGE OF 40 THAT ARE JUST NOW GETTING BASIC FINANCIAL LITERACY AND JUST NOW UNDERSTANDING, LIKE THAT I WAS GOING TO ASK HOW MANY TIMES HAVE YOU BEEN IN A CLASS AND SOMEONE IS LIKE, I HAVE NOT EVEN LOOK AT MY CREDIT SCORE.

I DON'’T EVEN KNOW WHAT MY CREDIT SCORE IS.

>> AT LEAST 50%.

>> IT IS SCARY.

IT IS DAUNTING, BUT I LOVE THAT ANALOGY.

YOU HAVE TO GET ON THE SCALE.

YOU HAVE TO KNOW WHAT THAT NUMBER IS.

>> ACCEPTANCE IS THE FIRST STEP.

>> YOU TALKED ABOUT TRUST.

THINK ABOUT OUR CITY, PEOPLE GO OFF OF WORD-OF-MOUTH.

TO EVEN END UP IN A CLASS WITH LINDA OR RENEE, YOU HAVE TO TRUST SOMEONE ELSE WHO CAME BEFORE YOU EVEN SIT IN THAT CLASS TO GET THE INFORMATION.

THE TRUST STARTS WELL BEFORE YOU EVEN ENTER THE DOORS.

I WANT TO MENTION THAT BECAUSE I THINK THAT IS A GREAT POINT.

BUILDING THAT NETWORK IN ALL KINDS OF WAYS.

>> ONE OF THE THINGS WE PRIDE OURSELVES ON THAT FINANCIAL EDUCATION ASSOCIATES IS THAT WE ARE COMPLETELY UNBIASED.

MEANING WE ARE TRULY TRYING TO GET PEOPLE THE INFORMATION THEY NEED SO THAT THEY CAN MAKE GOOD DECISIONS WHEN THEY ARE SEEKING OUT A LENDER OR REALTOR OR HOME INSPECTOR.

CRITICALLY IMPORTANT FOR US TO NOT BE IN TOUCH OR PUT OURSELVES IN A POSITION WHERE I HAD A BAD EXPERIENCE AND A LENDER TOLD ME TO GO THERE.

>> IS THE HOUSING LAUNDRY -- I KNOW SOMERVILLE HAS THE PROCESS THROUGH THE COMMUNITY CORPORATION.

IS THAT SOMETHING GENERALLY THAT YOU ARE POINTING YOUR STUDENTS TO PURSUE OR IS IT SOMETHING THAT IS A LITTLE FRAUGHT BECAUSE OF ALL THE DIFFERENT DETAILS, THE FINE PRINT?

>> I WANT TO MAKE SURE MY STUDENTS UNDERSTAND THAT AN AFFORDABLE PROPERTY IS JUST THAT.

IT WILL REMAIN AFFORDABLE, SO THE BIG CONVERSATION IS JUST JUST LIKE ANYTHING, IT IS NOT FOR EVERYONE.

IS IT A GREAT SEGUE TO GET INTO HOMEOWNERSHIP AND UNDERSTAND AND YOU KNOW WHAT IT FEELS LIKE?

YES.

HOWEVER, IF YOU ARE THINKING I'’M GOING TO BUY THIS PROPERTY AND SELL IT IN FIVE YEARS AND I'’M GOING TO GAME, THAT IS NOT IT.

IT IS ZONED AS AN AFFORDABLE PROPERTY, AND THAT'’S NOT GOING TO CHANGE.

WHILE I THINK IT IS A GREAT OPPORTUNITY FOR PEOPLE TO GET ALL THEIR DUCKS IN A ROW ESSENTIALLY TO MAKE SURE YOU HAVE ALL THE INFORMATION THAT IS GOING TO BE ASKED FOR WITH A LOTTERY, I THINK IT IS GREAT, BUT IT IS NOT FOR EVERYBODY.

WE DO HAVE THE DISCUSSION.

I DO HAVE PEOPLE JUMPING IN SAYING I NEED TO TAKE THIS CLASS BECAUSE I'’M ENTERING THIS LOTTERY, AND IT IS LIKE OK, WE WILL GET YOU THE CERTIFICATE SO YOU HAVE IT, BUT I WOULD NOT SAY THAT -- I WOULD SAY MAYBE 30%.

YOU CAN TELL WHEN THE CLASS REGISTRATION JUMPS BECAUSE SOME REALTOR SAYS WE HAVE THIS REQUIREMENT.

THAT IS ALWAYS INTERESTING, BUT IT IS ALWAYS AN OPTION.

AS I GET AFFORDABLE PROPERTIES ANYWHERE IN MASSACHUSETTS, I WILL SEND THEM OUT TO ALL OF MY FORMER STUDENTS BECAUSE YOU NEVER KNOW.

I GOT ONE THE OTHER DAY, AND I DON'’T KNOW WHO LIVES THERE, BUT IT IS FIVE MINUTES OUT OF MY DAY.

FOR SOME HOMEOWNERS, WE DO TALK ABOUT WHAT IS NEEDED.

THE CITY OF SOMERVILLE IS AMAZING.

THE BIGGEST THING I ALWAYS TELL THEM IS LEAVE NOTHING BLANK.

DO NOT LEAVE ANYTHING BLANK.

BUT MEETINGS ARE ON THURSDAY NIGHTS WHERE YOU CAN ASK QUESTIONS, SO THEY REALLY ARE HELPFUL WITH IT.

>> IT SOUNDS LIKE THIS IS MAYBE A GOOD STARTING POINT, ESPECIALLY IF PEOPLE WANT TO BUILD GENERATIONAL WEALTH.

IF THEY GET THE EQUITY FROM WHEN IT IS TIME TO SELL THAT HOME AND THEY WANT TO GO BACK AND BUY SOMETHING ELSE -- >> THERE'’S NOT A WHOLE LOT OF EQUITY.

WE NEED TO CHAT ABOUT THE FACT THAT AFFORDABLE PROPERTIES COME WITH DEED RESTRICTIONS, MEANING THAT LITERALLY IN THE COVENANT -- THAT'’S ANOTHER WORD FOR DEED RESTRICTION -- THEY WILL TELL YOU HOW MUCH APPRECIATION YOU ARE GOING TO BE ABLE TO REALIZE FOR EVERY YEAR THAT YOU ARE LIVING IN THE PROPERTY.

I HAVE IN DOING THIS WORK LONG ENOUGH WHERE I HAVE SEEN THE APPRECIATION AT 2%, 3%, FIVE PERCENT.

>> YOU ARE SAYING THAT CAP IS AT 6%?

>> RIGHT NOW, YES.

>> THINK NUMBERS.

IF I SOLDIER THE PROPERTY FOR $100,000 AT AN AFFORDABLE PROPERTY, ONE OF THE THINGS YOU HAVE TO ACKNOWLEDGE IS THAT -- LET'’S SAY, THE FIVE CENT.

YOU LIVE IN IT FOR 10 YEARS, THAT MEANS YOU CAN EFFECTIVELY SELL IT FOR 150 THOUSAND DOLLARS, BUT YOU CANNOT SELL IT TO JOE BLOW DEVELOPER BECAUSE IT IS A DEED RESTRICTION.

YOU HAVE TO SELL IT TO ANOTHER FAMILY OR INDIVIDUAL THAT IS LOWER TO MODERATELY INCOME LIKE YOU.

WHEN I TALK TO MY STUDENTS, I TELL THEM, THEY DID NOT SELL IT TO YOU CHEAP BECAUSE THEY LOVE YOU.

THEY SOLD IT TO YOU CHEAP BECAUSE THEY ARE COMMITTED TO KEEPING LOW TO MODERATE INCOME FAMILIES IN THEIR CITY OR TOWN.

>> WHEN YOU THINK ABOUT FAMILIES, WHEN YOU ARE READY TO SELL, YOU CAN CHOOSE THE OFFER THAT YOU WANT TO CHOOSE.

IF THAT'’S A CHILD, A NIECE, NEPHEW, OR SOMEONE IN YOUR FAMILY, YOU COULD, LIKE -- AS FAR AS BUILDING GENERATIONAL WEALTH -- CONCRETE EXAMPLE, THERE WAS A RESALE ON THE MARKET RIGHT NOW.

IT WAS PURCHASED 20 YEARS AGO FOR $150,000 AND IS BEING SOLD RIGHT NOW FOR $293,000, SO SHE DOES HAVE SOME EQUITY THAT SHE, YOU KNOW, BUILT, BUT WHO SHE SELLS IT TO NOW GETS TO DO THE SAME PROCESS OVER.

IF SHE CHOSE TO SELL IT TO HER CHILD, WELL, SHE WENT OUT AND PURCHASED SOMETHING DIFFERENT, FOR ME, THAT IS ANOTHER FORM OF GENERATIONAL WEALTH, BUT IT IS AUTOMATICALLY 30-YEAR COVENANT, AND THEN WITH THE OPTION OF AN ADDITIONAL 20 YEARS.

THAT'’S 50 YEARS THAT THAT RESTRICTION WILL REMAIN ON THAT PROPERTY.

SO IT IS GOING BACK TO, LIKE, WHAT IS THEIR GOAL?

IS YOUR GOAL TO PURCHASE A PROPERTY AND STAY IN IT LONG-TERM?

TO SOME PEOPLE JUST WANT A HOUSE BECAUSE THEY HAVE BEEN LIVING IN AN APARTMENT THEIR WHOLE LIFE AND THEY DON'’T WANT TO MOVE.

THEY DON'’T WANT TO BE A LANDLORD.

YES, IT IS A GREAT OPTION, BUT ARE LOOKING TO BECOME AN INVESTOR AND YOU WANT MULTIPLE PROPERTIES, THIS MAY NOT BE THE BEST OPTION FOR YOU.

>> THE OTHER THING WE NEED TO THINK ABOUT WHEN WE TALK ABOUT DEED RESTRICTIONS IS MANY TIMES PEOPLE ARE BUYING THEIR FIRST HOME THINKING THEY ARE CREATING A LEGACY, BUT THEY HAVE TO UNDERSTAND THAT THE INHERITANCE PIECE DOES NOT WORK BECAUSE IN ORDER FOR THEIR HEIRS TO TAP INTO THE RESOURCE, THE WELL THEY HAVE ACCUMULATED, IT CAN ONLY BE DONE BY SELLING TO ANOTHER FAMILY OR INDIVIDUAL IS LOWER TO MODERATELY INCOME TO.

DEED RESTRICTIONS ARE REAL.

I HAVE A SISTER-IN-LAW THAT LITERALLY WON LOTTERIES TWICE IN THE SOUTH AND DID NOT KNOW HOW EXPENSIVE IT WAS TO LIVE THERE AND SHE DID NOT TAKE EITHER ONE OF THE UNITS BECAUSE SHE WAS THAT UNCOMFORTABLE WITH DEED RESTRICTIONS.

>> MM.

>> AM ALSO CURIOUS, SOME OF THE AGREEMENTS, YOU SAY THE PROPERTY IS $400,000.

I KNOW IN A PLACE LIKE SOMERVILLE, IT IS REALISTIC, BUT THE PERCENTAGE OF ANNUAL MEDIAN INCOME YOU HAVE TO QUALIFY FOR DOES NOT ALWAYS MATCH UP.

YOU MIGHT BE QUALIFIED, BUT IS IT REALLY AFFORDABLE FOR YOU TO LIVE IN A PLACE LIKE THAT?

>> I LOOKED AT THE STATS FROM 2022.

I WOULD SAY OUR AVERAGE HOME BUYER PARTICIPANT CLASS, WE ARE TALKING ANYWHERE FROM 50% TO 80% OF THE INTERMEDIATE INCOME THEY BRING TO THE TABLE, AND THAT IS NOT GOING TO BUY A LOT.

IT'’S JUST NOT GOING TO BUY A LOT.

WE HAVE TO ACKNOWLEDGE THAT.

CERTAINLY, WE TELL PEOPLE THAT -- I MEAN, USADA WILL DO OUR LOAN OR BACK A LOAN WITH AN AMI AS LITTLE AS 30%, BUT THAT'’S LIKE FOR RURAL AMERICA.

THAT'’S NOT NEAR WHERE WE LIVE.

>> LISTEN, DOROTHY IS A LONG WAY FROM HOME.

WE ARE NOT IN KANSAS.

>> WHAT YOU CAN STILL GET A PROPERTY OR MORTGAGE PRODUCT FROM SOME ENTITY BACKING IT LIKE MASS HOUSING THAT GOES ALL THE WAY UP TO 135% OF YOUR -- OF AREA MEDIAN INCOME, AND HERE IN SUFFOLK COUNTY WHERE WE LIVE FOR A FAMILY OF FIVE, WE ARE TALKING 204 THAT'’S NOT CHUMP CHANGE, SO PEOPLE CAN QUALIFY ALONG THE AMI'’S DEPENDING ON THEIR PERSONAL SITUATION, BUT EVERY SINGLE LOTTERY PROGRAM HAS THEIR OWN CRITERIA FOR AMI, SO IT IS PART OF THE SHOPPING AN INDIVIDUAL OR FAMILY WOULD HAVE TO DO WHEN THEY ARE TRYING TO FIGURE OUT WHAT LOTTERY WORKS BEST FOR THEM OR MIGHT POTENTIALLY GIVE THEM THE OPPORTUNITY TO REALLY MOVE IN.

>> WOULD YOU SAY -- IN 20 SECONDS, WOULD YOU SAY THIS IS A FAIR OPPORTUNITY FOR PEOPLE WHO ARE LOOKING FOR A HOME?

>> FAIR -- I DON'’T WANT TO USE THAT WORD, BUT IT IS A REAL OPPORTUNITY.

AGAIN, LOW INVENTORY IS REAL, AND IT IS THE SAME SCENARIO WITH LOTTERY PROPERTIES.

>> WHAT IS YOUR TAKE ON IT?

>> I WOULD SAY THE SAME.

IT SEEMS AS THOUGH IN THE CITY OF SOMERVILLE, THE NUMBERS OF PEOPLE WHO ARE APPLYING ARE NOT AS HIGH AS I THOUGHT THEY WOULD BE, SO THERE IS A BIT MORE OF AN OPPORTUNITY, BUT, I MEAN -- >> GOTCHA.

THAT IS THE END OF OUR BROADCAST AND THE END OF OUR SHOW.

THANK YOU SO MUCH FOR JOINING US.

STAY WITH US AS WE CONTINUE THIS FASCINATING CONVERSATION ON OUR DIGITAL PLATFORMS, YOUTUBE AND FACEBOOK.

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