Episode•April 21, 2022•27 min

Leveraging NACA: Real Estate Investment Tips from Mark Jones II | Ep. 98

In this episode of Money Talk with Tiff, host Tiffany Grant speaks with Mark Jones II, a real estate investor and founder of "Livin Rent Free." Mark shares insights about the Neighborhood Assistance Corporation of America (NACA), a platform offering zero money down and zero closing costs mortgages. He explains the eligibility criteria and discusses the opportunities and challenges of the NACA program. Mark also delves into the concept of house hacking and the potential of using section 8 vouchers to pay for mortgages. If you're looking to delve into real estate investment and learn about unique financing options, this episode is a must-listen! About Our Guest Mark Jones II is a Los Angeles native. Growing up in Los Angeles, Mark was inspired by the real estate developer Rick Caruso of Caruso Affiliates and his developments The Grove and The Americana. As a child, seeing huge Caruso® real estate developments spring up inspired him to create something of his own. In a way it empowered Mark. He asked himself, “If other people could create something beautiful in real estate that brought such beauty and enjoyment into the lives of others, why couldn’t I?” Connect with Mark Instagram: https://www.instagram.com/livinrentfree/ YouTube: https://www.youtube.com/@livinrentfree TikTok: https://www.tiktok.com/@livinrentfree_ Connect with Tiffany Facebook: Money Talk With Tiff Twitter: @moneytalkwitht Instagram: @moneytalkwitht LinkedIn: Tiffany Grant Timestamps [00:00] NACA protects homeowners from predatory lending practices. [03:17] Man sued banks, funds NACA program for mortgages. [08:56] Real estate options depend on income level. [10:08] Gentrification brings investment opportunities in evolving neighborhoods. [13:35] NACA program offers unique options, some limitations. [17:13] Took a risk, profited big in LA. [23:29] House hacking: live in part, rent out rest. Key Topics NACA Program: Zero Down Payment and Closing Costs Real Estate Investing: Multifamily House Hacking Strategy Section 8 Vouchers: Potential for Home Purchase Community Development: Advocacy for Homeownership Financial Literacy: Wealth Building through Real Estate Eligibility and Criteria: Qualifications and Caveats Flexibility and Options: Lower Interest Rates and Rehab Financing Additional Links & Resources Home | NACA Support this Podcast Copyright 2024 Tiffany Grant This podcast uses the following third-party services for analysis: Podcorn - https://podcorn.com/privacy OP3 - https://op3.dev/privacy

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Key Takeaways

NACA offers zero-down, zero-closing-cost mortgages with no minimum credit score or upper income limit

Funded by billions recovered from banks via predatory-lending lawsuits

Interest rates often 0.5–1 % lower than FHA/VA/conventional loans

Rehab costs can be financed and the rate bought down so monthly payment stays the same

Priority-member status gives the lowest rates and lets you buy anywhere

Earn ≤ 100 % of county median income → priority member

Non-priority buyers must purchase in neighborhoods ≤ 80 % of median income to qualify for priority pricing

Gentrifying areas often still qualify because median income lags visible change

House hacking with 1-4 unit properties eliminates your largest monthly expense

Live in one unit, rent the others; rent can cover 100 % of mortgage

Airbnb or travel-nurse tenants can supercharge cash flow

Even 12–24 months of house hacking can accelerate wealth building

Section 8 vouchers can theoretically be used to purchase a home via NACA

Program exists but is extremely selective—only a few hundred approvals nationwide each year

NACA counselors will advocate for applicants on the voucher-to-purchase track

Buying a multifamily lets voucher holders collect rent from other units to build equity

NACA requires owner-occupancy for the life of the loan, but equity can unlock future options

Refinance later to convert the property into a pure rental

No “NACA police,” yet fraud is strongly discouraged

Strategic house-hackers plan an exit via refinance once equity is built

Intro

Tiffany Grant interviews real-estate investor Mark Jones II about the little-known NACA mortgage program that can get qualified buyers into multifamily properties with nothing down.

Los Angeles native and founder of Livin Rent Free; inspired by developer Rick Caruso; teaches house-hacking and creative financing nationwide.

Leveraging NACA: Real Estate Investment Tips from Mark Jones II | Ep. 98

Key Takeaways

Intro

– What Is NACA?

– Eligibility & Trade-Offs

– Gentrification Arbitrage

– Program Perks & Limitations

– Risk-Reward House Hack in LA

– Section 8 Voucher to Purchase

– House-Hacking Strategy

Resources

Topics