that'll do it for us right here on "wall street week." thanks so much for joining us. "property man" begins right now. ♪ >> 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 me. i'm bob massi. i got an e-mail from a woman with a fascinating story of how she navigated her way through the mortgage meltdown and financial crisis. but she's now got a dilemma and wants to know what her options are. now, lori's a single working mom living here in arizona. she bought her home in 2006, right at the peak of the market. 80 percent of the home was financed with an interest-only loan and a second mortgage covering the remaining 20 percent. >> and i did that because i was one of the people that felt that real estate is an investment. and i wanted to use the equity to make more in the market. >> remember, folks, that was 2006, a long time ago. property values had been skyrocketing.

and lori bet on that continuing, like many of us as americans. she thought that after a year or two, the house would have more equity and she could refinance it to a conventional mortgage. well, we all know what happened next, guys. >> i started to watch my neighbors lose their homes to foreclosure. i also watched the values plummeting. >> the home's value plummeted more than 30 percent. worse than that, when the economy tanked, lori found herself unemployed. she withdrew 401(k) funds and took loans from friends and family to help pay the bills. is credit important to you? >> uh, credit and credibility, my reputation, honorability. i was one of those people that, you know, used their retirement money to stay in a home because i signed up for the loan. and i was gonna make the payments. >> by 2009, she was working again but still struggling to keep her head above water. >> i made the decision to start -- start missing a few payments so i could get an audience.

>> did they tell you, "you gotta stop making payments"? >> it was kind of implied, "why should we work with you if you're continuing to make your payments?" i learned that a second lien holder can never move you out of your home because they're in the second lien position. and that was very powerful information. so i made a decision to go 90 on the second to let the lender, who held both the first and the second, know that i was serious. >> she was able to get a h.a.m.p. loan modification. >> i got a letter, unsolicited, offering to settle my second obligation for $15,000. >> and at that time, you owed how much? >> $153,000. >> but the house was still way underwater. by 2013, she was still in trouble, and the loan had been sold several times. >> so i applied for a couple of the newer programs and kept getting letters saying that my lender didn't participate. i knew that that was not the case. >> she didn't give up and, through pretty much sheer tenacity alone,

managed to get another loan modification, including a principal reduction. here's the key. lori did her homework and was persistent. she researched anything and everything she could about her situation, what was happening to her neighbors, and what options she had. basically, this single mom put on her gloves and beat the hell out of these lenders. >> exactly, that's it. >> i mean, for all intents and purposes, right? >> that's exactly what i did. >> if the home was sold presently, she could probably break even. >> this was an older home when i purchased it. it's starting to need upkeep. >> she feels it's a minimal investment, and fixing up the house could result in a great return on the investment. >> so these cabinets were already refinished. and so there's really no option now except to put new fronts on them. >> the problem? she's burned through all her money just saving the house. so she can't afford the renovations. so obviously -- >> as you can see, the pool -- the tile is starting to

come off and it needs to be refinished on the bottom. >> and some of the kool decking needs redone. >> yeah, kool decking needs to be refinished. >> one would figure you sort of put a number on this is what you think it's gonna cost to sort of do a simple freshen-up. >> yes. >> what do you figure that is? >> uh, between $30,000 and $50,000. >> do you have that money to do it? >> no. >> with her daughter going off to college soon, lori needs a way to pay for it. >> we'd like to stay until the home until she's ready to go to college. but for the right agreement, you know, i think we'd be willing to vacate the home and be happy that we have college money for her. >> lori wrote to me asking if i would recommend her offering the project up to an investor, someone who could finance the renovations. >> there are a lot of general contractors out there or investors that might be interested in, like, what we -- i would call a shared appreciation model where i'm willing to put

in a little bit of tlc and some sweat equity or financial equity into the home for a return on their investment. >> if i was an investor, my question to you would be, how long are you gonna keep this piece of property before you sell it? 'cause i'd like to know when i'm gonna get my money. >> well, you're a lawyer, bob. everything's negotiable. >> i'm a businessman first. now, there are a few options that she has. status quo, do nothing. she's gotten to the point where she has a little equity in the home already. based on the area she's in, it's most likely gonna go up slowly. she could find an investor, someone who will finance the renovation for a fixed percentage return on the investment. so you need to get a true value on this home. you've gotta get an appraiser to come in because what they'll do is they'll look at the things that need to be done. and then they say, "lori, it's not worth it for you." you gotta find the base of where you really stand as relates the value to the loan.

she could find someone also to be a partner with her, meaning they basically put up the money, work out a deal once the house sells. this is where the big expense could be. but you bring the right professional in, they'll know how to do it the right way. she's even considered doing what's called a lease back, which by the way, i think may be a great idea. sell the home now to an investor, lease it back for a few years until her daughter goes to college, and then she moves out. it's a win-win for everybody. but most importantly, she has to get advice from experts. someone needs to come in and do an evaluation, the kind of value these improvements could add to the property. all of these options have risks, both for lori and the investor. but that risk has been minimized. you've had so much debt wiped out that for an investor, they're coming in at a time when this property's only gonna go up in value. >> right. >> so, i mean, the risk has really -- is gone.

>> exactly. >> this could only go up in value. >> exactly. >> so that's not a bad deal for an investor or a partner on this deal. but remember, it's gotta be sold at that point 'cause you're on the note. >> absolutely. >> you never want to transfer your property title to anybody because a lot of people who do that think that they're off the note. and they're not off the note. but, be that as it may, you've taught your daughter a great deal about business. and she should be proud of what her mother's done. now, we're gonna keep in touch with lori. and let you know how it all turns out in a future episode. up next, the millennial generation is the first to enter the real world since the housing market collapse changed how people think about home ownership. is it something that they worry about at all? i'm gonna go find out. [ woman vocalizing ] it's easy to think that all money managers are pretty much the same. but while some push high commission investment products, fisher investments avoids them.

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♪ >> welcome back. i'm bob massi, the property man. we've heard a lot of talk about millennials.

they're the first generation to enter the workforce after the real-estate crisis of 2008. so i hit the campus of arizona state university to see if property issues are even on the radar of today's college students. >> i know so many of my peers that graduate with, honestly, this worthless college degree. they go six figures into debt just to make 30k a year. >> any of the friends that you have going back home to live with mom and dad just because they're concerned, or they don't have the money? >> yeah. absolutely. it's statistically the most common place for someone six months after graduating is back at mom and dad's. >> i don't think it's, like, a fault against them. >> no. absolutely not. >> if that'll allow them to save up for owning a home, then why not? >> i'm not gonna be able to afford everything on my own. so i'll probably move back with my parents. >> i'm going back home because of financial reasons. >> so how 'bout you? >> i feel like going back home isn't something you should be ashamed of. it's a great opportunity to kind of launch yourself. >> i don't think that's just a trend because millennials are millennials. i think that has a lot to do with the fact that there is a lot

of student-loan debt out there. >> it really depends on the job situation. that's kind of my real concern right now. >> i am so much in debt. and i'm barely a freshman. it's just ridiculous. >> i know people that have actually dropped out of school or had to move to a community college 'cause they couldn't afford it. >> i'm in a lot of debt already. but, like, it's what i had to do. >> a lot of young people i talk to, they don't really know the first thing about buying a car, buying a home, renting an apartment. are there courses offered for you to learn these type of things? >> i honestly don't know. but if there is, i would be so open to take one. >> what about you? >> i think it's kind of crazy that we don't learn a single thing about developing credit or doing any of these important things like taxes. >> i think, if you look at, like, the 2008 financial crisis, people were lending, giving out loans to people who -- who could -- essentially couldn't pay back their loans and created this big bubble. >> did you happen to see the movie "the big short"? >> banks have conditioned us to trust them. what have we gotten from that? 25 percent interest rates on credit cards. they have screwed us on student loans that we can never get out from under. >> lenders, banks, wall street.

how do you view those institutions? >> they're trying to make a living. but it -- it's good for them if i go and do business with them. but i don't think it's good for me. >> so many were concerned and said they would never, ever sign a mortgage that would obligate them for 30 to 40 years. >> that's a trap they want you to get into. but then, when it comes down to it, two, three, four years down the road, are you ready to, you know, commit to that for another 25 years to fulfill the 30-year mortgage? >> if you're starting out with this much debt, the last thing you want is to, you know, get a mortgage and -- >> buy -- >> be put even more in debt. yeah. >> 30 years, that's a long time. >> some others said it's the american dream. >> i mean, i think, personally, too many people are renting and not owning. i think people need to take ownership and own several properties. >> i want to own. i don't want to lease. i don't want to rent. to me, i feel like owning a home. not owning, you know, is not, like, a proud moment. >> if you can actually live within your means, then i don't see it being a problem. i'm not afraid of having a 30-year mortgage. but i'd like to pay it off sooner than that. >> if you're trying to establish, like, long-term wealth,

you need to have -- you need to own your own assets. but it's also -- owning property is part of the american dream. >> and some that we interviewed, particularly one guy, said, at his age already, he sees it strictly as a business. >> i actually am about to buy a couple rental properties right now and become a landlord before my, uh, before my 23rd birthday. >> how many more years do you have to finish up? >> um, well, funny question. i'm supposed to graduate in may. but i'm actually failing school right now. >> now, the american dream of home ownership might be harder to obtain for today's young people. but hopefully, they have learned some of the sins of the past and will be better equipped to manage that in the future. still to come on "the property man," desert living gets a whole new definition. [ woman vocalizing ]

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♪

>> welcome back. i'm bob massi, the property man. earlier this season, we showed you taliesin west, where legendary architect frank lloyd wright established his school of architecture. now i want to show you a modern home designed by an architect who went through that school and brought wright's vision to life. >> the architect was a gentleman named bing hu. and he really did a great job with the design. >> i'm in the mirabel community in north scottsdale. and i asked realtor bob lomax to take me inside this stunning golf-course property. one thing that stands out right away are the doors and windows. each is a work of art that adds to the unique character of the home. this is unbelievable. >> yes. this door is really a statement for this home as you first arrive. there was a wooden door originally specced for this house. and the owner did not think that was gonna look good. so she contacted a company called art in metal.

and they came up with this design. the interesting part is this handle is exactly 5 feet tall. and there's quite a few things in this house that are that, uh, dimension as well because the home owner herself is actually 5 feet tall. all the furniture in here was custom made. the artwork is custom made. the home itself is 10,000 square feet, air-conditioned. it consists of five bedrooms, 10 bathrooms. it's got 11 fireplaces. and there's a media room. there's a game room. >> and of course, the state's known for copper. >> that's right. it's the copper state. >> so i'm looking at this bar, which is obviously all copper. >> lots of copper in this house, which is really a beautiful accent to this home. >> every light fixture was custom designed, as well as these beautiful cabinets, which were finished in a hot-rod shop to get the perfect detail. >> this wine cellar is kind of unique too, custom doors made for the wine cellar. it's a two-story wine cellar. what's neat about it is, different times of the day and night, the glass actually changes color depending on the sun when it's coming through it. there's 18 tvs in this home. but you can't see virtually any of them. they're all hidden. this painting on the wall

actually hides a tv. so with the touch of a button -- >> how unique is that? >> isn't that neat? >> we've done some things on panic rooms and secret rooms. >> yes. >> so this office is unique. show us this. >> it does have a secret room that was designed as a panic room. but i think the grandkids also love to use it for hide-and-seek. this is just a beautiful master bedroom. the two-story volume in this room, i think, is really impressive. >> and outside, there's what? is that a hot tub? >> yeah. there's a -- a main hot tub for the -- for the guests. but there's a private hot tube here for the owners and with its own fireplace as well. >> we talked about how the owner doesn't like to show tvs. >> that's right. he has a tv that's hidden behind this mirror here, so, when he's getting ready in the morning, he can keep track of things on fox news. >> you can't make this up. there are eight air-conditioning zones, 22 tvs, and 43 audio zones, all automated and controlled by a crestron system. >> you can literally control every aspect of the home with these screens, which are throughout the house. so if we i want to put down all the shades in the house, i can do it with the touch of one button.

so the sink is actually automated also. you touch a button. >> market window at the kitchen, serve the drinks across and the food. >> absolutely. you can see that this real-- this whole house really opens out -- >> mm. >> to the outdoors. there's literally no houses that you can see from any room, except for way off in the distance. >> these doors, do they go back? >> they absolutely do. >> pretty fancy pocket doors. >> pretty fancy pocket doors. >> the backyard is -- wow. >> it's on three lots. so it's quite an expansive backyard. >> you know, there's no reason to leave the inside of the house. now that i'm at the outside of the house, there's no reason to leave the outside of the house. >> it's equally as beautiful, isn't it? >> look at that. >> there's just a lot of color in this yard, a great pool. there is a cabana bar with a restroom -- >> uh-huh. >> and a shower. >> the property actually sits on three combined lots surrounded by the seventh and eighth holes of mirabel golf course. mirabel is an exclusive golf club community in north scottsdale that really captures the best features of the area -- mountain and desert vistas, custom luxury homes,

and world-class golf. mirabel boasts a 38,000-square-foot desert lodge clubhouse that's a major draw. >> there's all the amenities in there you could ever want between the fitness center, the swimming pool, the tennis courts. there's a lot of outdoor living space in this home. almost everywhere you turn, there's another patio. and really accentuating the arizona lifestyle, which is a lot of outdoor living. it's got everything that people want as far as just beautiful finishes, great orientation, great backyard, all the amenities that you could want, lots of privacy, just expansive views. so it's got all the bases covered. >> up next, we're digging into the property man mailbag yet again so i can answer your property questions in the massi memo. stick around. [ woman vocalizing ] i count on my dell small business advisor

for tech advice. with one phone call, i get products that suit my needs and i get back to business. ♪ it's a highly contagious disease that can be really serious... especially for my precious new grandchild. it's whooping cough. every family member, including those around new babies, should talk to their doctor or pharmacist about getting vaccinated.

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and karla from california says... let's talk about h.a.r.p. 2. h.a.r.p. 2 was designed to improve the original h.a.r.p. that was passed back in '09. the whole concept behind h.a.r.p. was to help people who were staying current on their mortgage, and they were underwater, and it was a fannie and freddie loan. so if, in fact, you're current, if, in fact, it's a fannie or freddie loan, you may be able to qualify for h.a.r.p. 2, except it must be a loan prior to 2009. now, a lot of people e-mail me and ask, "well, why is 2009 the magical year?" the answer really makes no sense. but basically, they're saying, "people after 2009 knew

about the real-estate crisis, so we're not gonna give them a break." you should write to your congressman about that one, by the way. so try for h.a.r.p. 2. you may be eligible for that. now, listen. the other issue's even more difficult. if you're not eligible for h.a.r.p. 2 and if you're underwater, you want to keep your home, the only thing you would try is for a loan modification. if you have hardship, you may be able to go loan mod. and because you're behind in payments, you know, you may qualify. try that. the only other thing you could possibly do is look for a short sale and move on with your life because the longer you stay in that home, and if the value's not gonna come up, you're sort of stuck. and i'm sorry to tell you so many people in america still are in a situation where everything's upside down. that's all the time we have for today. be sure to send me your property stories, questions, or pictures of your property bloopers. send them to propertyman@foxnews.com. and don't forget to check us on facebook and twitter. there's also plenty more information

and videos on our website, foxnews.com/propertyman. i'll see you next week. [ woman vocalizing ] >> lou: good evening, everybody. it is a big week for president trump who is in new york city meeting with the world leaders for the 72nd united nation's general assembly. the summit trying to address challenges. chief among them is north korea and iran. this is the president's debut in the united nations. and an organization as he said was weak and hardly a friend to democracy. he was not wrong