tv Lou Dobbs Tonight FOX Business December 15, 2018 10:00am-11:00am EST
thank you for joining us. we'll be back next week with another deep dive behind the news here ott on "wall street journal" at large. i hope you'll join us. ♪ ♪ >> i'm bob massi. for 34 years, i've been practicing law and living in las vegas, the center of the recent real-estate crisis. lives were destroyed from coast to coast as the economy tanked. now, well, it's a different story. the american dream is back, and nowhere is that more clear than the sunshine state of florida. so we headed from the strip to the beach to showyou how to live the american dream. i'm gonna meet real people who are facing serious problems, take you behind the gates of properties you have to see to believe, and give you the tips that everyone needs to navigate the new landscape, because information is power, and the property man has got you covered. [ woman vocalizing ]
thanks for joining us. i'm bob massi. [ whistle blows ] lou holtz can be summed up in one word -- a legend. he's best known for his time as coach of notre dame. but he actually brought six different college football programs to bowl games before being inducted into the college football hall of fame. coach holtz and beth, his wife of 54 years, live in lake nona, a section of orlando. one night in june, coach holtz and beth came home late. >> i went up to my office on the second floor. it was very hot. i told my wife, "the air conditioning must be broken." she said, "it can't be, but i'll call on monday." this was saturday night. so, because it was so hot, we went to bed downstairs, where the air conditioning worked. >> at 2:30 in the morning, out of a dead sleep, they woke to smoke alarms sounding and their 11,000-square-foot home fully engulfed in flames. >> we go outside and i look up and i see the flames shooting up. and, you know, you're in a state of shock. you can't believe it. and you're there with your wife at 2:30 in the morning
and just see everything you have. and your mind starts going through everything you're gonna lose, initially. and it's something you never thought would happen. that happens to somebody else. i read it. but it doesn't happen to me. >> a lightning strike had caused the fire, which destroyed their home and many irreplaceable items of memorabilia. >> we had two sections of a house connected by a hallway of trophy cases and memorabilia. the house where we lived, the 6,000-square-- it was completely destroyed. >> you know, when you see the damage that this fire has done to this home -- look at the extent of the devastation of this area. this was the kitchen area. obviously, the roof is gone, burned. i can't even imagine what the inferno was like when they walked outside. >> it first started upstairs where -- everything i had was in my office -- my wallet, my money, my credit cards, my license, all financial records. all the family pictures are gone, pictures with five different presidents, two popes,
pictures with them. you just think about everything you have is gone. >> the coach and beth thanked god they made it out alive. >> what i was grateful for -- no firemen were injured because it was a big fire. but you're sitting there, and you're just saying, "i can't believe this is happening." and you're depressed. we made a decision that till 8:00 monday morning, we will feel sorry for ourselves. but 8:00 monday morning, that's over. >> that's it. >> we're gonna look forward and see what we have to do. what's important now? your house burned down. you lost everything. what's important now? >> they hired ray altieri, a public insurance adjuster. that's someone who works on behalf of the policy holder in appraising and negotiating the insurance settlement. >> we've lost the entire second level above the kitchen. what we had upstairs were rooms that included lou's nest, as it was called,
where he could be alone and just relax. we also lost a large family/game-room area up there that was actually collapsed into the kitchen. we get hired to work the insurance claim from the perspective of the policyholder. therefore, we become their advocate in the process and work with the insurance companies, adjusters, and representatives to fine-tune the exact amount of damages and work towards an amicable resolution for settlement. >> sadly, coach holtz is not alone. there are about 370,000 house fires every year in the united states, which causes $7 billion in damage. many of those are due to lightning strikes. and in florida, well, they're a huge problem. the state has 1.2 million lightning strikes every year. that's 200,000 more than any other state. >> most people think, "certainly, i wouldn't lose my entire building. i wouldn't lose my entire home." but as you can see, this happens every day. i've been doing this 35 years.
and this is a very common occurrence, unfortunately. >> i think how fortunate we are and how blessed my wife and i are to have as many friends as we've had have come to our aid, to have the resources to rebuild. people don't have any idea how difficult it is, trying to replace everything. and where do you go? what are you gonna -- those are the people i feel sorry for. >> so you need to protect yourself before a tragedy strikes. when we come back, i'll tell you what coach holtz wants you to learn from his tragedy and the critical things you need to know right now to protect your property and your family. [ woman vocalizing ] you ok there, kurt? we're about to move. karate helps... relieve some of the house-buying... stress. at least you don't have to worry about homeowners insurance. call geico. geico... helps with... homeowners insurance?
been doing it for years. i'm calling geico right now. good idea! get to know geico. and see how easy homeowners and renters insurance can be. hi.i just wanted to tell you thdependability award for its midsize car-the chevy malibu. i forgot. chevy also won a j.d. power dependability award for its light-duty truck the chevy silverado. oh, and since the chevy equinox and traverse also won chevy is the only brand to earn the j.d. power dependability award across cars, trucks and suvs-three years in a row. phew. third time's the charm...
and in true lou holtz form, he kept everything in perspective. >> everything you have, from living, clothes, toothbrushes -- just everything is gone. >> gone. >> but we did not lose anything that could not be replaced. the only thing you can take to heaven with you are your children, so we didn't lose anything we were gonna take with us. >> so often, people think this can't happen to them. but it does happen. it happens to people like lou holtz and his wife. it happens to americans every single day, which is why it's so important to understand the type of insurance that you have to make sure you're covered for these type of devastating events. >> now, the insurance company -- and contrary to all the stories you hear about being negative -- has been more than fair with us. but they have been very thorough. >> i will speak for myself, even as a lawyer, have never sat down and really read my policy the way i should. >> [ laughs ] >> did you ever even look at
your policy before? >> never looked at the policy, didn't even know we had one, to be -- my wife handles all that. >> they hired ray altieri, a public insurance adjuster. >> it's one of the smartest things that we did. >> he was actually an advocate for you to make sure that whatever claims -- that if the insurance company pushed back, he would assist in resolving that. >> i wanted to remove all the pressure on my wife that i possibly could. we've been married 54 years, and she's just a great human being. and so because of that, we're in a position -- as i say, because of resources, we could do that. and money buys you time and convenience. buying -- paying this guy gives my wife the convenience to not have to deal with insurance. >> when you see this kind of devastation, the homeowner or the business owner would be extremely devastated and overwhelmed. there's no question about it. and mentally, i find it very hard to believe that they would be apt and capable to fully
represent their own position in the matter, so hiring experts to come in who take an objective look at things, who come from a perspective that, we want to make sure that the insurance policy that they bought works for them. >> there were so many different things that he brought to our attention. i thought, "wow. this is complicated." you know, i went to school to eat my lunch, no other basic reason, so trying to read that was above my head. >> insurance is personal protection if a loss occurs. your insurance agent is your key to understanding what you're buying. look at the house you're buying, the contents that make your home what it is. >> people tend to look at their insurance policy from a cost perspective instead of a recovery perspective. what you really want to know is that you got an insurance company and an insurance policy that is gonna help you fully recover, should you have a fire, should you have a flood, should you have a hurricane or a tornado hit. >> the only time you discover, generally, the exclusion is when something happens. in other words, in every
insurance policy, it's important you understand, before you buy that coverage, what is excluded. >> it's very important that your agent understands the true values of what your home is or what your business is. the inventory that you may have inside your home or your business should be truly understood and the values calculated. >> the thing i truly regret -- that we didn't get a video camera when we lived in the house. video every room of what you had. and we had about 11,000 square feet. and we didn't video. the biggest problem we have now, and time-consuming, is trying to reconstruct what you had in what room, what you lost, everything else. and if we had videotaped it, we'd have been able to do that. but that is something i urge everybody to do. in case of a theft, case of a fire... >> anything. >> ...anything, you have it. 'cause that is the biggest headache we have right now. >> i cannot stress this
enough -- take pictures and video of all the contents in your home and get appraisals on those special items. >> here's the other thing -- buy a fireproof safe. every time i need money, i had a special place for it. >> sure. >> all that's gone. all that's burned. and make sure your fire alarm is loud enough 'cause, the older you get, your hearing isn't quite as good. >> finally, shop the coverage, guys! it's a competitive market. and of course, probably the best advice anyone can get about anything -- try to think like coach lou holtz. >> and at '78, this is the not the challenge you want in life, to rebuild, but that's what it is, and that a situation we have, and these are the alternatives we have. and the best one is be positive about it and rebuild it. yeah, it's a catastrophe. but i think the attitude you have is so critical in how you handle it. oh, how blessed we were that we weren't injured and a firemen wasn't injured. and harvey mackay's a good
friend of mine, told me many years ago, "it isn't a loss unless you can't replace it." >> mmm. >> yeah, the memorabilia and the pictures with the popes and presidents and family, but we have our memories. i always said, "you gonna have three crises in your life every year." there's gonna three. i don't know what they're gonna be, but when i have a crisis, i'll say to my wife, "hey, good news -- we only have two more to go." >> what an amazing man. we could all learn a lot from lou holtz. and i've got more tips on how to protect your property when tragedy strikes in the massi memo at the end of the show. when we come back, something completely different. imagine never having to deal with checked-bag fees, security lines, and airport hassles. for some people, well, their neighborhood, it's its own airport, and their driveway is actually a runway. inside this unique community, when we return. [ woman vocalizing ] i don't know what's going on.
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♪ >> when deciding where to live, many people want to be close to an airport. but what if your house is your airport? i want to take you inside of an neighborhood that is truly unique. >> the wellington aero club was designed from development in the late '70s to be an aeronautical community. >> located in the village of wellington, florida, and it is a private air-park community. the residents have planes in their garages, in their backyards, in their driveways. >> they may have a helicopter. they might have a floatplane or a seaplane. they could have a corporate jet or an ex-military aircraft. so you see a little bit of everything. >> parking your plane in your backyard is just the best thing i can think of. >> it really enables homeowners to capture what they're to do as aviators, and that is to walk
right out of their backdoor, right into their hangar, throw the bags in, and take off. >> and those backyard driveways, well, they back up to a 4,000-foot lighted runway that sits in the middle of the community. >> many private aeronautical communities are still grass runway. they don't allow the type of aircraft that we are able to land here. >> most of the other aero communities are in desolate areas. it's not where you're in the middle of what we have here. >> many of them are one strip, often grass, surrounded by maybe 20 or 30 houses. this is 275 houses. >> having a runway next to my house just makes flying that much easier, not having to drive, you know, 20, 30 minutes to an airport. >> very few people get to have a plane at all. but most people who have a plane have it at the airport, which is kind of like having a boat at the marina. you have to get all you stuff together, drive to the airport, unload it, put it in the plane. >> no matter where the home is located in the community, well, the runway provides quick and easy access for all.
>> this green grass strip here is a taxiway to accommodate just about any size airplane, all the way down to the runway. >> you literally could get in your plane, go to the runway, and leave, which is like getting in your car and driving to the supermarket. >> from here to nashville, tennessee, it's about a 4-hour flight. in the car, it's 14 hours. >> there are people in here who actually go to work every day by plane, by helicopter, instead of driving. >> i will go a week without driving sometimes. this morning, for example, i woke up at 7:00 a.m. took my kids to the bus stop. 15 minutes later, i was flying my way to stuart. >> yesterday, i brought my plane back from bend, oregon, and landed in my house yesterday at 5:00, put it away, and went and had dinner with the family. >> a trip to key west for three or four days is not a big deal. throw a couple bags in the front, two people, fly to key west. i can get there in less than an hour. it flies about 200 miles an hour, and it's got about an 800-mile range. >> this is a marchetti s-211, ex-military trainer jet.
it's an all-weather aircraft. it can fly day or night, any kind of weather. it cruises at about 375 miles per hour at 28,000 feet. this is like a whisper jet. you can't hear it come or go. so it's really neighborhood-friendly. it climbs quickly, it gets up away from the houses. >> the wellington aero club has over 96 pilots who live here in the community. currently right now, we have nearly 100 hangars, four under construction. >> all homes in the community -- well, they're covered by a homeowners association. and those fees cover maintenance for the paved runway, a pilot house, and common areas. an on-site aviation refueling facility is also available to all the residents. >> fuel hear is a whole lot less expensive than out at a commercial airport, so i always tend to fuel up here when we go and when we come back. >> it's a part of life that people don't even known exists. if you asked people in wellington, some of them don't even know the aero club is here.
>> one of the things we love about here is just the ability to go anywhere. i can grab one of my kids and head to orlando and go to the parks. >> don't have to stop at an airport and check luggage. >> there's no security lines at the airport. there's no getting in your car and showing up two hours early. you just get in your plane and you go. >> walk out the backdoor, go flying, and we're in the bahamas 45 minutes later. it's fantastic. >> you leave out of your house, and you're there, from your house. >> when security means just coffee and snacks for your kids. i mean, to be 20 minutes away from the keys, to just have the flexibility and say, "okay. we've having lunch today somewhere away from home," it is really amazing to have that opportunity. >> you're about to have lunch and you look at the plane and you look at the day and you say, "hey, you know what? let's do this in key west." and you jump in the plane, and you go to key west. >> out the kitchen door, i'm in key west in less than an hour. and it's easy. >> when the plane's 15 minutes away even, you won't do it.
>> pulling up in the plane with your family after a family vacation. your kids all pile out. and you're in your backyard. and your dog comes running up to you. and everybody who comes out of the house. and the bags just go straight in the house. there's nothing like it. it's great. if you can do it, i can't think of a better way to live. >> it allows homeowners this extreme recreational use. and it also gives the community value. >> biggest benefit of wellington for us has been the community itself. >> there's a connectivity here that you don't get in most kind of neighborhoods where you might not know you neighbor on the other side of the community. but here, we're all connected by airplanes and the love of aviation. so you know a lot more people. it's a very social neighborhood. >> when i moved here, it was a grass runway, and jets were not permitted here. i spearheaded the change in the runway to pavement. >> that conversion has changed the profile of this entire community. property values have increased. this year alone, we've sold seven new homes. all of the new homes were all sold to, uh, aviation folks.
>> we love flying. we love our airplanes. and we love to socialize. and it's just -- the combination of that just makes this such a great place to live. >> i don't think it can get any better. >> up next, the massi memo, with information you can't afford to miss, so stick around. [ woman vocalizing ]
>> time now for the massi memo. we saw the tragedy that struck coach lou holtz and his wife when their house burned to the ground. but always, the coach, well, he wants us to learn from this. so, other than critical things like always making making sure you have working smoke detectors, what do you really need to know? well, let's take a hard look at your insurance policy. fires are generally covered. but make sure you check the policy for at least what is called an ho2 or a brand form coverage. have your agent preview and review with you the policy to understand all coverage because we as homeowners -- we generally never take the opportunity to read and understand the policy. and find out about the exclusions in the policy, particularly, of course, when a claim is gonna be made. now, make sure your property is maintained in a safe manner to avoid denial of your claim. why? because we as homeowners are supposed to maintain it so
that the insurance company can't say we were negligent in the way that it was maintained, causing the loss. as we discussed earlier, please video all the things in your house. and designate each room and the contents in that room for proof if there's ever a loss. it's very important. be sure to keep this footage somewhere else or locked in a fireproof and heatproof safe. any high-end items, jewelries, furs, antiques, and special heirlooms, you have to have special coverage. or you're gonna be limited to a certain amount, probably much less than its actual value. if you do have a loss, make a claim with your insurance company as soon as possible. don't wait because there's usually time limitations on when you need to make a claim. and also, look into possibly, if necessary, hiring a public insurance adjuster who works as your advocate if your loss is large. that's it for today. be sure to send me your questions or property stories at firstname.lastname@example.org.
and check out our website at foxnews.com/propertyman. i'm bob massi. i'll see you next week. [ woman vocalizing ] >> 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 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,
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 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 tear drywall off. >> so, when you came in and you had 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 -- 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, 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.
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.
♪ >> 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 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.
>> 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.
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, 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
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
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 ] but some give their clients cookie cutter portfolios. fisher investments tailors portfolios to your goals and needs. some only call when they have something to sell. fisher calls regularly so you stay informed. and while some advisors are happy to earn commissions whether you do well or not. fisher investments fees are structured so we do better when you do better. maybe that's why most of our clients come from other money managers.
♪ >> 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
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.
>> 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
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
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 get up to 60, 65, even 70 percent. >> 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
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
coming up in the massi memo. [ woman vocalizing ] (vo) 'twas the night before christmas and all through the house not a creature was stirring, but everywhere else... there are stores open late for shopping and fun as people seek gifts or even give some. not necessarily wrapped with paper and bows, but gifts of kind deeds, hard work and cold toes. there's magic in the air, on this day, at this time. the world's very much alive at 11:59.
♪ >> 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.
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 at email@example.com. i'm bob massi. and i'll see you next week. [ woman vocalizing ] thanks for joining us bulls & bears starts right now. david: hi everybody this is bulls & bears thanks for joining us i'm david asman joining me on the panel today lauren simonetti is here as well as danielle, gary kaltbaum in person in new york and adam lashinsky as well now take a look at this stocks slammed over reports of a deeper economic slow down in china, worse than economist economists predicted a slow down that the president says he should get credit for take a listen. president trump: but i will tell you this. china's economy, if it's in trouble, it's only in trouble because of me. that's the only reason it's in trouble because we've taken in $11 billion worth of taxes that i tax china.