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tv   Lou Dobbs Tonight  FOX Business  May 6, 2017 3:00am-4:01am EDT

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i'm jamie colby. thanks for watching "strange inheritance." and remember -- you can't take it with you. thanks for being with us tonight. good night from new york. >> announcer: from the nasdaq in new york city, the new "wall street week." here is maria bartiromo. maria: i'm maria bartiromo. we are coming to you from the nasdaq in mid-town manhattan. we are in the heart of times square because my special guest is the cio of nasdaq, adena freedman. >> the u.s. economy adding 211,000 jobs while the unemployment rate dropped to 4.4%. strong jobs numbers increasing
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odd for a interest rate hike. strong earnings for amazon and facebook, sending all three major markets into positive territory for the week. other headlines grabbing attention, a healthcare victory in the house. congressional republicans are one step closer to repealing and replacing obamacare. it barely made it, a vote of 217 to -- to 213. now it moves to the senate where it faces a whole new set of challenges. but the president says he's confident republicans can come together to get it done. the spending bill through september includes $15 billion more for the pentagon and $1.5 billion for emergency border security.
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but it does not include money for border construction. netflix and google all surging to all-time highs. revenue growing by 49% in the first quarter. apple hitting a record high despite a surprise earnings miss. iphone sales drew disappointing revenue. maria: the market continues to rally. the nasdaq crossing the 6,000 mark. and a surge from technology titans like microsoft and facebook and apple. joining us, adena friedman, you were named ceo in january. i know you had a lot to think about. how important is it that nasdaq
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reached 6,000? >> it's always fun to see a milestone within the index. but we have to make sure the investors have a full set of information to base their investments on. i think the nasdaq reaching 6,000 is a mile marker. but it's a reflection of where people think the administration can take this in the next several months or years. maria: the nasdaq has a big plate of services for listed companies, for non-listed companies, and you are selling that data. we all know trading has been weak. we saw the financial services numbers. you mentioned in your quarter. even though you reached new heights in terms of the quarterly numbers. what's going on with trading? >> it was been an interesting juxtaposition between the performance in the market but
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still a low volatility environment. so it's been interesting to see what's been driving the mark totes new heights. it's been around policy decisions as opposed to fundamental purchase decisions of individual companies. the types of investors coming in and participating in the markets are more of the professional arena. it tends when you have fundamental investors you have a wide range of opinions. and that drives more volume in the mark the. maria: you have got to operate your business, and okay so we have a weak trading environment. you have got other levers to pull. you have got market data that you sell. i want to talk about block chain coming up later in the program. and of course there is the listing business. the new york stock exchange has been trying to eat your lunch and take market share for a long
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time. this last year has not been a great time for ipos. >> 75% of our revenue is in the non-transaction businesses. all the services we offer, our listings, and date and market technology business, in terms of the listings business was a challenging year in terms of the total number of companies. nasdaq from a competitive perspective did well. we had a 73% win rate overall. and 73% of tech companies came to nasdaq. before it was concerning that we had so few companies choosing to apartment markets in the united states. maria: what do you think that's about? you are seeing companies that want to deal with the red tape or quarterly earnings. they are saying i'll stay private a lot longer.
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>> there are a l of dynamics that contribute to that decision. we have 1,000 fewer companies in the public markets in the united states than we had even 11 years ago. second thing i would say is the jobs act did allow the ability for company to the say private longer. they could have 2,000 shareholders as a private company as opposed to before it was 500. and there is a lot of money that has come into the private space that gave them access to capital. being a public come tonight's a challenging road. you have to have a lot of discipline. you have to be ready for it. one of the things we have done is talk about what has become an impediment to the public market has been a ride range of things that have gone on in terms of
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taxes, lit takes, activism and market structure. public markets are not as attractive as they used to be. we believe there is change needed to make the companies feel confident and comfortable taming the public market. maria: that information you are selling has been vital. market data has become a big business for phoenix service -- for financial services companies. >> if you have transparency around pricing you have the ability to drive different investment strategies and investments in the market. market data is a huge enabler. and it has a lot of value. i rant data business for several years. we made sure weave tapped into the value of the data we have in our markets and maximizing the number of people in the
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marketplace that can sight and access it drive their stratees. but it's a very, very valuable part of the ecosystem. maria: on the listings part of the business, what are you doing to attract more companies. i was speak to analyst hospital said they didn't get the snap deal. that was a disappoint. are you reaching out to uber and the companies you expect to go public? >> we do a lot of outreach at every company potentially look at going public at some point. one of the areas we have been focused on is the fact that the companies are staying private longer. we have developed a nazdaq private market that allows them toy given vestors and employees to have liquidity for the ipo to
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manage their cap tables as they are moving themselves towards an ipo. and it allows us to develop a relationship with companies earlier on. maria: when we come back we'll talk about public versus private companies and the trump policies and what they mean. >> announcer: break up the banks. president trump says he's considering that idea. adena friedman reacts.
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♪and i ♪i will always love you, i ♪i will always love you ♪i hope life treats you kind ♪and i hope you have all you've dreamed of♪ ♪and i wish you joy and happiness♪ ♪but above all this i wish you love♪
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♪and i will always love you ♪i will always love you, i ♪will always love you ♪i, i will always love you, i...♪ >> through tax regulation and trade we think we can get 3% sustained growth and that creates lots of opportunities for americans.
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maria: that's treasury secretary steven mnuchin telling me this week that the trump tax plan will ignite the economy. that plan will likely impact companies small and big and prompt some like apple to bring money back from overseas. i'm here with adena friedman. >> we are a supporter of lowering corporate income tax and managing through the repatriation of cash for companies. that will give them more ammunition to grow their businesses and expand what they do. but in addition to the corporate tax issues. we see specific areas of tax reform we would like to see in small businesses to give them bert access to deductions and tax breaks associated with being
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a public company. a lot of small businesses have deductions that only help them as private companies. in addition to providing investors bert ability to manage their investments without heavy taxation. in terms of deduct buil deductef deductibility. and creating an investment account that does not subject them to capital gains tax. we have a lot in our blueprint that we think will be beneficial to the markets. maria: i want to walk through the blueprint. you are one of the leaders in the global market. so t onus is on u couple with recommendations and ideas. >> nasdaq plays a special role in the u.s. economy. it's something we take seriously
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and we are passionate about it. it's one of the main reasons i have been here for 20 years. the passion about how important the capital markets are for growth and job creation in the united states. the lower number of public companies, the fact that companies are want to go stay public longer and avoid the public markets longer has made it sit down and think what needs to change to make the capital markets more vibrant for companies. tax reform and litigation reform, look at regulations and disclosure obligations. politically motivated disclose ours for public company? why? proxy perform.
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if a company wants to -- if an investor wants to have a say in a company should they only have to own $2,000 in the stock or have a substantial ownership in the stock. look at one size fits all model whether you are am or google or a $150 million company. we think there is a need for a didn't structure for smaller companies. we want it to be a dialogue. we think there are certain things that can happen now. and other things where we'll even gang with the industry to make them happen. maria: your recommendations and idea are important for the u.s. market and the global markets. in terms of the tax plan coming out of the trump administration. a 50% rate for a business seems like a big deal to me.
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these companies were paying 39.6%. even at 15% or 20% corporate tax rate down from 35%. do you think this will and catalyst for these companies to use that money to create jobs and invest in their businesses? >> i wholeheartedly agree with that. if you think of where job creation has come from, it's been small to medium-size companies that have grown and created jobs for people all over the country. they are the underpinning of our economy. that's why we have been so successful because we create such a good ecosystem. but if you tax them heavily, you are draining cash out of their coffers for them to invest in their business.
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maria: what secretary mnuchin was talking about was the potential for a 10% rate for repatriation. if you are talking about a company bringing trillions of dollars over here. that's got to be a big encouragement to bring the money back. >> we have to realize we are incredibly fortunate as an economy that we are the place the whole world goes to to look at as the beacon of great capitol markets and -- capital markets and a great economy. but we tax our companies more than any other country in the world. over time that will make it so we diminish our role in the global economy. all of these things are important. maria: we'll take a quick break. adena continues with us as she talks about her vision for the company. stay with us.
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>> announcer: adena friedman's nasdaq career began over 20 years ago. what will the most powerful woman on wall street do to move? liberty mutual stood with us when a fire destroyed everything in our living room. we replaced it all without touching our savings. yeah, our insurance won't do that. no. you can leave worry behind when liberty stands with you™. liberty mutual insurance
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maria: welcome back to "wall street week." here at nasdaq headquarters. we are here with adena friedman, she is ceo of nasdaq. you have been at nasdaq for 0 years. let me ask you about the fastest growing area of your business, market technology grew 18%. what's driving the growth?
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>> that dovetails nicely into look at strategy of nasdaq. not only do we provide the technology that serves our own markets here and in the nordic, but wheat provide technology to 90 markets around the world. and we are the number one provider of trade surveillance technology around the world, what we are the market infrastructure player. we are the premiere infrastructure player for the capital market. every market is looking to become more advanced. they are look at shoring up their post-trade capabilities, they are look at developing out of market data business and index business. they want to make sure they have the best protocols to bring in international investment. and they are look at infrastructure and what they
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should grow in-house and what they should look for partners to build for them. demand is terrific. it does dovetail into our strategy as well. maria: how does your strategy differ from your predecessor? >> it's a natural extension and expansion of the strategy we had, to be a critical infrastructure market provider to the world. whether it's here or in the nordic countries. and we look at how we can serve the markets worldwide with our technology and expertise and date and transparency. it allows us to play a critical role in every economy as they are growing and expanding and making sure their capital markets are advanced. maria: you are selling this technology to even competitors. >> we are. we believe we can be a great
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competitor in the states but we also are making sure we provide the technology to whoever thinks they can benefit from it. generally speaking the vast majority of the ex chaiks that use our technology are not competitors. we don't see ourselves competing with other markets. they have their own ecosystem and way of doing business. but there are interesting circumstances where we do provide the technology to a competitor. maria: in terms of growth, is that where the growth comes from at nasdaq? how do you squeeze out more growth at this company? >> we see it coming from multiple parts of our business. we see more growth in the non-transaction businesses. we talked about the yantsed in the transaction businesses. he can wits and options mark -- the equities and options markets
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are low volume. despite the fact that our market share continues to grow. maria: thanks so as much for joining us. adena friedman. "wall street week" comes right back. stay with us. whaaaat?!ortgage offer from the bank today. you never just get one offer.
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♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ of every person in every community. ♪ because change doesn't happen alone. ♪ hope isn't a one man band. ♪ and there's no such thing as self taught ♪ or self made. ♪ we have one life. ♪ to live better, ♪ we must ♪ live ♪ united. ♪
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maria: let's take a look at the big week ahead. some events that could impact your money. the nfib survey, initial claims, retail sales, consumer sentiment and biz inventories. major companies reporting earnings. herks rtz, disney, snap, mails why i, macy'sand jc penney.
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i'll see you sunday morning at 10:00 a.m. eastern. >> i'm bob massi. for 35 years, i've been practicing law and living in las vegas, ground zero for the american real-estate crisis. but it wasn't just vegas that was hit hard. lives were destroyed from coast to coast as the economy tanked. now it's a different story. the american dream is back. and nowhere is that more clear than the grand canyon state of arizona. so we headed from the strip to the desert to show you how to explore the new landscape and live the american dream. i'm gonna help real people who are facing some major problems, explain the bold plans that are changing how americans live, and take you behind the gates of properties you have to see to believe. at the end of the show, i'll give you critical tips
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you need to know in the massi memo because information is power. and the property man has got you covered. [ woman vocalizing ] thanks for joining us. i'm bob massi. there comes a time when most people wanna change something about their home. it could be before you even move in or years down the line. but remodeling your home can either add tremendous value or turn into a major nightmare. it's critical to do it right. well, mike christensen, he runs peak one builders and restoration, a veteran-owned and operated general contracting company. >> a lot of the remodeling is high performance, energy efficiency, reducing costs. >> i asked him to bring me by a few of his homes. so, mike, you're going to show me actually two homes. one you're working on now, that actually has been gutted out. and then another home that's already finished. >> yep, two different stages. so we've got, uh, basically,
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a house that's pre-drywall. and, uh, it's still in the rough-in stage. and then we're gonna go to a finished home that is an energy-rated home. >> remodeling projects usually come about when someone wants to update or change the layout of a home. energy efficiency is not usually something they think about. >> we get asked the questions, you know, we're only doing a remodel. does it make sense to update the portion of the house in a high energy efficiency manner? we know that the rest of the house isn't being touched. and the answer is yes. >> what was this room? >> uh, this used to be part of the old bedroom that was here, a very small bedroom that we are now turning into a laundry room. >> anytime you change something in your home, it's an opportunity to update what you don't see. think about what's behind the walls. one of the things that always concerns me with remodels is the plumbing part. >> yes. >> i can't tell you how many times i've had people come to me where they come home and they did a remodel and there's, you know, the -- the wooden floor is ruined. some -- a pipe broke. >> yeah, so your general contractor should be running cameras down the drains to understand
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what he's dealing with before he gets into the -- the actual remodel. the more planning up front, the better of a streamline process and the better experience that that homeowner is gonna -- gonna have. >> you might be updating an outdated bathroom. what that means, well, you've got some outdated things like plumbing, ductwork band insulation. >> you'd be surprised at what we find when we ar drywall off. >> so, when you came in and you d the sheetrock taken off, you start looking up at this insulation. what are some things you noticed? >> uh, right away, we noticed that the insulation that was installed here clearly was a problem. because you've got gaps. uh, you shouldn't see any -- any space for air to escape up into the attic. because anytime you have that, you've got a, you know, energy loss. >> which costs the homeowner more money. >> a lot more money. >> particularly in the desert -- >> yes. >> in the summer. no question about that. insulation is one of the easiest yet most overlooked things to improve. you really need to understand how buildings work. as mike says, how a structure performs. >> building science is more looking at the entire envelope, the structure itself, and how it goes together and how it breathes and --
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and prevents air infiltration but also prevents heat loss and, um, losing your air conditioning out your windows or out your walls or out pipes that are going through the ceiling. when we talk about energy efficiency, the first thing we look at is how we, uh, seal those structures up. >> obviously, windows are as important as anything else. tell us about this window. >> windows play a very important role in the structure itself. >> this is thick, man! >> it's a -- it's a very well-built window. um, the thing that's important about this window is that the frame itself is what's called a thermally broken frame. and that means that the frame is actually split in two. there's an air gap in between that allows for, uh, less heat loss from the outside in. >> remodeling is a process that really requires planning and expertise. >> it's extremely important that the homeowner does their due diligence. >> this is not the time to call your cousin because he owns a couple drills and a saw and needs to make some money. and you can't just hire any contractor. >> really get involved with the contractor who's -- who has the experience, who's licensed, bonded and insured,
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and has the experience in -- in doing whole-house renovations or -- or whole-kitchen renovations. >> you gotta have a consultation to make sure they get your priorities straight. >> that's one of the initial things that we talk to our customers about, understanding what the wants versus needs are. >> one of the biggest concerns i've seen over the years are change orders on any type of project. if you're gonna ask that contractor to change something from the original architectural plans, make sure it's in writing. and make sure you know exactly how much it costs. on the peak one website, mike's got a list of questions that every homeowner should ask before signing anything. is the contractor licensed and insured and bonded? what other similar jobs have they done in the area? >> does he have experience doing these things while you're living in the house? because not everybody has the opportunity like this where there's nobody living in the house the entire time, so it makes it easier on everybody. >> now we're gonna go see another house that's finished. >> yes. >> that's energy-efficient. >> that's correct. >> let's go take a look at it.
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talk about remodel, by the way. these doors are pretty serious. beautiful room. >> yeah, it's a great entertaining area. because the kitchen's right off the great room. this is where people are gonna spend most of their time. >> one of the complaints that you hear a lot of times when you have high ceilings like this, how do you properly insulate? how do you balance the air conditioning? >> yeah, these rooms definitely become a challenging point to keeping the energy efficiency throughout the building itself. but this area is probably the most important part of the house. um, so we get back to the building envelope itself and trying to seal the entire building by spray foam insulation and then batt insulation put up against that. >> so, if it's done properly, it saves the homeowners money, number one. and, number two, there's an easier balance of ventilation in the house whether it be heat or whether it be air conditioning. >> absolutely. >> it's a beautiful remodel. up next on "the property man," most properties i visit, well, they're pretty easy to get to, but not this one.
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but, considering there might be $125 million worth of gold buried there, it's probably worth the trip. [ woman vocalizing ]
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♪ >> thanks for joining us. i'm bob massi. if you're feeling adventurous and have a couple of extra million dollars handy, well, you could buy a piece of history in your very own gold mine buried under these mountains north of scottsdale, arizona. >> gold in the desert! they've struck it rich! the prospectors haven't found gold, but gold was here all the time. >> now, it's all for sale, including the rights to six patented gold claims located within it. i asked realtor preston westmorland to show me around. so, you know, this is quite a ride, my friend, to get up to this gold -- gold mine. >> oh, it's unbelievable. and what we're gonna see is the main discovery tunnel, where they tapped in on the vein, went all the way
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into the middle of the mountain. and they carved it out. let's take a look. let's do it. in 1874, a chance discovery here sparked a gold rush. and the gold hill mine was opened on this beautiful 117-acre property. fantastic. >> there, you see the main vein they tapped into, right there. the whole hill was claimed. and that's why they call it gold hill. but it was one of the most active mining areas in the state of arizona at that point. it's one of the more remote locations in scottsdale. there's no cell service. you can't see anything. it's like you're 100 miles from any major city, yet you're a couple of miles from luxury golf courses and people sipping pinot in a wine bar. >> walk through the nearby town of cave creek and you could still feel that gold rush vibe today. >> the ore, it was so rich, they took it out by burro to cave creek, then trucked it to prescott on a wagon. they went on a train to san francisco. and then they shipped it all the way to england for smelting. and they still make money on it.
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>> but, not long after the discovery came, a worldwide economic downturn. >> they canceled all the plants. so it became a very, very small worked mine. there were 14 guys and a blacksmith shop here. >> interest has been ignited a few more times over the decades, 1937 and again, 1963, when a geologist wrote that, if properly handled, it is destined to become one of the profitable mines of arizona. >> okay, we're gonna go inside now. but, before we go in, let's get some helmets on. >> all right. might be little falling rocks once in a while. >> there you go. never know. >> okay. >> and you see that these are where railroad ties used to be. and you see these little blue pieces? this is where the mining companies did assays. and they'd mark that with a location as they mapped the mine. >> one factor you have to look at is that the early miners got the easiest gold and the richest gold first.
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and anything else takes a lot more work. >> well, we're in the middle of the mountain, where, apparently, the early miners found unbelievable wealth of gold ore. this is, apparently, where they found the most gold. because they have hollowed out the mountain. you can't even see the top. and there's all kinds of tunnels that go off each side. a lot of this was dug out in the 1880s and 1890s, probably, all of it by hand. >> but, even though testing has estimated that there could be hundreds of thousands of tons of gold ore buried here, no actual mining has been done since the 1930s. >> it's amazing the work they did by hand back at the turn of the century. mine shut down about 1935. never been mined by modern, commercial standards. >> well, the price tag has come way down. but it's still going to be a bit out of reach for the average buyer. >> for 2.9 million, you get a whole gold mine. and i think the big question has always been, below this ore body,
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is there another ore body? and some of the geologists i've talked with seem to believe there is. but owning a gold mine has always -- comes with a lot of risk. and sometimes you get a nice reward. but it's the chance that you'd have to take. >> the land is zoned to allow the construction of one home per acre. >> normally, when you show a house as a realtor, you go in and you -- you hope that the toilets are flushed, there's no food on the sink. when i get a call to show the gold hill mine, you might make sure there's no rattlesnakes in the tunnel, the bobcats are not anywhere nearby, you don't run into mountain lions. and it's just a whole different, uh, realm of -- of real estate property. i -- it's quite exciting. i like it. >> amazingly enough, this isn't even the only gold mine preston has listed for sale. eighty miles west is octave, arizona, and the octave gold mine. >> was a party of men back in 1863. and they saw gold all over the rocks. and -- and the story is that one guy pried 300 ounces of gold
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in one day off the rocks. >> from 1895 until 1925, the 25 miles of tunnels at octave produced more gold than most mines in america. >> what my seller did was quite brilliant. he bought the entire octave vein from the bottom of the desert floor to the top of the mountain. >> more than 200,000 ounces of gold and 75,000 ounces of silver were pulled from the ground here. and there's likely to be much more still buried. it's one of arizona's most historic properties. and, for the right price, all 266 acres can be yours, along with its patented gold claims. two live-in caretakers protect the site and its minerals. and the land comes with an 1,100-square-foot home. >> it depends on power from wind generation and solar cells. there's a tv tower on the site. and the rental income from that produces enough to pay all the taxes. the road continues all the way to the top of the mine, where there's about a 300-foot cleared area. could be a helipad or a place
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for a -- a really neat house that borders a national forest. >> all that plus a gold mine. up next... did you know that you could actually buy a home using a reverse mortgage and never make a mortgage payment on it? i'm gonna tell you how. [ woman vocalizing ] danny trejo: let me tell you about the toughest guy on earth... he does the work of two jobs, but only gets paid for one. he's tough enough to feed the man that gave him a lifetime of nourishment. he has the crazy strength to lift the man that raised him up, without even flinching. that's right. no employee of the month bonus check here.
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this guy--no, this warrior will always be by his father's side, even if his dad will hardly remember. good luck finding a gym to train for that. if this guy isn't the toughest guy on the planet, then i don't know who is! caregiving is tougher than tough. find the care guides you need at aarp.org/caregiving
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♪ >> welcome back. i'm bob massi, the property man. you know, we've talked on this program before about reverse mortgages and how they could be a good way to refinance for some homeowners who are over 62. now, there are people who are actually buying homes using reverse mortgages. so i called my good buddy, reverse mortgage expert josh shein, to help me explain how this works
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and introduce me to some folks who went through it. josh, how you doing, buddy? >> hey, bob. how are you? >> we meet again, huh? >> good to see you. >> good to see you, sir. >> we're gonna talk all about reverse mortgages. first, let's head in and meet a couple who used one to purchase their home. >> and it's a beautiful home. >> you're gonna love 'em. >> 'kay, let's do it. starla and carl kramer downsized last year after carl retired. starla has been a licensed realtor for over 25 years. >> i was at an open house. and a gentleman came in, was telling me about reverse mortgages. and i really wasn't familiar with the concept. and so we researched it, asked questions and decided to buy this little 1,841-square-foot home. >> they sold their 3,200-square-foot home for $500,000. they were able to put down $143,000 in cash. and they used a reverse mortgage for the rest, a single transaction with no payments. >> this allowed them to keep the rest of the money in their pocket, use that money for whatever else they wish.
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>> many people don't realize that, in 2009, hud introduced the hecm for purchase program to allow seniors to buy a new home. >> we kept the rest of the proceeds from the big home to invest in other things. >> so how does it work? well, it allows you to obtain a reverse mortgage with some of the proceeds from the sale of your previous home or from other savings and assets and buy your next home in a single transaction. >> this is a traditional loan. the difference is, instead of you balance going down and you making payments every month, the payments you would be making are being added to the balance. and the balance is going up a little bit every month. >> no matter how long you live in the home or what happens to its value, you only make one down payment, and that's it. for as long as they remain in the home, they will never have to make a payment. >> carl, we're sort of old-school. we pay your mortgage every month. this whole idea of "you mean we're not gonna have a payment?" how did you react to that initially? >> i didn't have a problem
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with not having a payment. >> exactly. >> that's just fine. >> we've had a mortgage for so many years. every month, on the 15th, a big chunk of cash would just automatically go out of our bank for auto-pay. and now on the 15th of the month, we kinda go, "wow, let's go to a movie!" you know. >> and what's nice is we've had some equity gain in the house in the last year. >> now, five years ago, ralph and mary, they did a reverse mortgage on their $550,000 home. >> and i thought, "wow, what a way to leverage your -- your money." >> parker turk was their mortgage broker. >> and it was during that process that we started to explain in the future how he could downsize using a reverse mortgage to purchase the next home. >> and that's when they came back to you, about a year and a half later? >> they sold their big, nice house, were able to, you know, recognize a really nice gain. >> i immediately called parker, and we initiated the sale of this home the same way. >> through the hecm for purchase program, they bought the new house with a reverse mortgage, keeping the leftover cash for their day-to-day expenses. >> if the market tanks, you're gonna lose the equity in your house. but even if you own
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your house and the market tanks, it's exactly the same thing. what you're doing is receiving your equity up front, which is, i think, a smart move, if you have a plan. >> so what are the rules? well, the youngest title holder must be 62 years or older. >> at that age, you'll be able to borrow approximately 50 to 52 percent of the value of your home. as your age goes up, your ability to borrow increases. someone who, for example, is in their mid to late 80s can t up to 6065, even 70 rcent. >> the home must be a primary residence. it has to be a single-family home, two- to four-unit home, or an fha-approved condo. the borrower must complete a hud-approved counseling session -- >> ensuring the borrower and consumer understands what they're going into, understands that they still own their home, understands that their balance is going up a little bit, and understands, most importantly, that they're responsible for paying taxes and insurance and maintaining the home. >> she would ask several different ways during the interview to make sure we were really clear on
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that our equity would go down as years went on. >> one of the perceptions is that those who are concerned about leaving their children something, they feel that their kids basically will get nothing. >> as with any -- any mortgage you have, the bottom line is you look to sell the home. whatever you sell it for less the mortgage payoff, that difference, that equity is left to the family, left to the kids, left to the heirs. >> clients, when i try and explain the benefits of a reverse mortgage, they say, "oh, no, i think they come and take your house away." well, we've lived in our home free for 12 months now. and we haven't made a payment. and our home would sell for about 30,000 more than we paid for it. we'd get all that equity back. >> and it's a non-recourse loan, meaning that they cannot come after you personally for any of the debt. >> if the value does drop and the balance of the loan becomes higher than the home value, no one's ever responsible for paying the difference, not the homeowner and ultimately not the heirs down the road. >> and i've got much more on reverse mortgages
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coming up in the massi memo. [ woman vocalizing ]
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(basketball game and crowd sounds) ♪ if you talkin' they will hear you ♪ every single time... we're getting killed. yeah, well, kyle's not here. how come? kicked off the team. didn't tim tell you? kyle and some other kids got caught drinking beer in the park a couple of nights ago. really? yeah. zero tolerance-he's out for the season. c'mon, it's a first offense, right? that we know of. but why should that matter? he knew not to drink. i've made it clear to matt that's what we expect from him. what have you said to tim? um... nothing, really. you know, a lot of kids try it at this age, so-
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yeah, well, a lot of kids don't try it, too. i'm not saying that matt's going to be this perfect kid, but if i don't tell him what we expect and why he shouldn't drink, how's he gonna know? you think kids that age really listen? they'd never admit it, bill, but they hear more than you think. (announcer) talk. they hear you. for more information about talking with kids about underage drinking, visit underagedrinking.samhsa.gov.
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♪ >> time now for the massi memo. earlier, we met some couples who had actually purchased their home using reverse mortgages. they put down a large down payment and took out a loan for the rest of the purchase price and never have to make another payment again. this is important for you to understand.
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you, as the homeowner, continue to own and maintain the title of your home for as long as the property remains your primary residence. all too often, the optics and the perception of reverse mortgages are you give up your title. you do not. the question i get the most about reverse mortgage is, what about the fees? as with all loans, there are fees. and this is where you need to shop around and compare. there are mortgage insurance premiums. there's origination fees, servicing fees and other third-party charges. all too often, however, people spend the end of their lives with little or no cash flow and lots of equity in their homes that really does nothing for them. it's important to evaluate your individual situation and decide what is right for you. that's all the time we have today. as always, check out our website for more information -- foxnews.com/propertyman. and send us your property stories and questions
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at propertyman@foxnews.com. i'm bob massi. and i'll see you next week. [ woman vocalizing ] great, thank you very much. >> hire is lou dobbs -- here is lou dobbs. lou: good evening, president trump keeps winning and winning, and winning. trump administration today delivered more good news on the economy. 211,000 jobs added in april, unemployment rate, falling to a decade low 4.4%. that is just one of the many victories for president trump. who successful successfully lobbied house republicans to back and repeal and replace obamacare. and bipartisan support for a spending bill that keeps the government run through september.

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