Episode 56: Mortgage Lending: Investing Strategies for the COVID Market with Mortgage Lender Justin Brown

Written By Amanda Holland

If you're not sure how to start your investment journey right now, you need to hear this talk. COVID-19 has changed the game, but Justin Brown of New American Funding with 20 years in the mortgage industry and over 41.2K Followers on Instagram (@loansbyjb) he knows a thing a two. Just is here to teach you what investment options are available to break into Real Estate Investing.

““The wealth you create through real estate is just unmatched.”‘”
— Justin Brown
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Your Investment Options

In this episode, we welcomed back Justin Brown, an amazing preferred lender we love to work with over and over again.

Justin is amazing to work with and always lets clients know where they are in a transaction so there are no questions asked!

Should a landlord sell their property right now?

"So if there was ever a time to sell those properties, it, for me, it would have. During the eviction moratorium just kind of move that money around and go utilize it somewhere else. [...] So my opinion is no, I don't. Landlords are all of a sudden going to sell now that they're going to potentially make more money and be able to raise rents. But I do think you are going to see rents go up."

When is the best time to pull the trigger?

"You know, when, when the market's going down, everybody wants to wait for the bottom. When the market's going up, they want to wait for it to come back down. And along the way you get analysis paralysis, where people just never pull the trigger and they miss huge opportunities."


That's why it's important to have a conversation and look at your specific situation with a professional.


Buy a home or investment account?

For example,

"A thousand dollars a month into the market, and let's say you get a 10% return over 15 years, that turns into about 300 and something thousand dollars, which is great.[...] You can save a thousand a month and hope to make 10%. And it turns into 300 and something, but if you buy this house, you're going to have forced savings. And the equity and net worth you'll have in 15 years with the same extra payment, the same extra amount was actually going to be $770,000. And that's based on just a 4% appreciation on real estate, which is pretty conservative."

What is the one thing Justin Brown would recommend to someone thinking about buying but hesitate?

1.Remember that it's longterm

"You're not buying because of the hope of the equity you might gain over the next couple of years, because there are crashes, there are peaks and valleys, but those peaks keep getting higher and higher over time."

2. Make sure it's in your budget

"The rule of thumb is you want to still be able to save and invest 20% of your income every month. And that will set you up for success because that gives you breathing room. And if you're doing it long-term and you have breathing room, then you're in a good position to not have to worry about what the market does."

3. Make sure the numbers make sense

"When I'm buying rental properties, I like higher cap rates because then I'm, I'm, I'm more concerned with the cash flow than the appreciation when it comes to rentals. [...]It's all about making sure you're not going to be house poor, and I'm not strapped with my mortgage payment. I still have freedom and breathing room. So if somebody is looking at buying and that payment does put them in a position where they're strapped, then I wouldn't recommend it. "

4. Look at your options

"I would look at different markets. I would see if you have an opportunity to work remotely and then buy somewhere else. [...] If you're in a spot and it just doesn't make sense locally, then it's time to look at other options. Because again, it's all for your future. You know, when you really look at what's important later in life, it's having, you know, being able to retire, it's being able to live comfortably."


Here’s a little inspiration from Lori Alvarez

"Be willing to go out of your area, like stretch yourself, go to that place that you've always thought about going."

Tune in to hear the great answers to the following questions

  • How do out-of-state purchases look with a loan whether you're retiring, working remote, self-employed or...?

  • Buying a commercial investment property?

  • Are interest rates going to rise?

  • What does it look like to refinance right now?

  • "It's, it's all about using your money wisely, right. And moving it forward in such a way that makes great sense for you."

  • What inspired Justin to buy his first piece of real estate?

  • Do I have to be a landlord? Or hire a property manager?

Follow Justin Brown

Life is a journey! Real Estate is a journey! Be sure to follow @LoansByJB for great tips on saving, investing for your future, mortgages, or buying rental properties out of state.

He can be found on Instagram, YouTube, and TikTok @LoansByJB or his website at www.loansbyjb.com.

If you'd like to visit his office location he is found in Glendora, CA.

““The number one way to build wealth is through real estate because it’s a low barrier of entry.””
— Justin Brown

Check out these episodes:

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909.227.4196 | KW Realty, DRE 01794115 

Know someone interested in buying, selling, or investing in Real Estate?

Disclaimer: Please verify all information with the licensed professional of your choice.

Amanda Holland
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