Bringing Hope to India’s Most Vulnerable with David Harms

This faith and finance podcast is underwritten in part by India Partners. Again, rescue a girl today at IndiaPartners.org. Our guest, David Harms, has devoted nearly a decade of ministry to the work of India Partners, advocating for the rights of women and children, and helping rescue them from exploitation and abuse. The ministry, India Partners, an underwriter of this program, has been rescuing victims of human trafficking for over 40 years. Incredible work, David.

Great to have you here. Well, thank you for the opportunity to shed light on a pretty horrific problem, but at the same time, we want to make sure that as we talk about this, we let everybody know how much there is hope in Jesus and the rescue of these girls. Well said, sir. This may be difficult to hear, but can you give us an idea of the conditions impoverished women and children are facing in India?

Sure. Well, let's just start with the simple fact that there are girls and they're as young as eight, so let that sink in. They're as young as eight, and they're trafficked. They're sold into the red light districts of India, where they are subjected to horrific conditions. This is basically a slum.

I wouldn't even say a glorified slum. It's dirty, it's filthy, there's open sewage, and yet these red light districts in India, in Mumbai especially, there are these areas that we work where there are hundreds, if not thousands, of women that are in this trade, and many of them are girls, as I said, as young as eight. And once they're into the system, after they're sold into this work, especially in like the first month that they're there, they will see upwards of 25 to 30 men a day.

A day. And that is for the sole purpose of breaking their spirits so that they don't want to leave, because then the owners start to inject in them messages that say this is who you are now. You're broken, you are impure, you'll never be able to go back home to your parents, you'll never get married. I mean, all these messages are horrible, and yet as they are subjected to this every day, it just turns them into the situation where they give up, which is what the owner wants. And every day, these girls are subjected to this, and this is why at India Partners, we enter into those scenarios, rescue them, and operate safe houses way outside where these areas are, and this is where the love of Jesus comes pouring into them. And this is what people support when they support India Partners.

Yeah, take that a step further. How is India Partners working to alleviate this suffering, David? Well, it starts with just the rescue, number one. And then number two, the safe houses that we operate are where they get the message of Jesus to heal. We can rescue them for sure. That's part of the solution. But what we want to do is get them to understand more and more their standing in Christ and the adoption they have as a child of God.

And this is where the hard work comes in. But what we do is we have these safe houses where every need is met. They get full room and board, they get private Christian education, they get extra tutoring because they almost always come in illiterate. They get medical attention, and believe me, after seeing 25 to 30 men a day, they're going to need medical attention. They have Bible studies.

They have all these things. They have trauma counseling twice a week. Every girl in the safe house has trauma counseling, once individually and once as a group, because that's where the real work begins. And so the end result is these girls, over time, start to understand who they are in Christ. And healing and transformation is just what happens with India Partners in these safe houses. Folks, as you know, we talk a lot about our role in managing God's money as stewards. And part of that is to give generously and to give to those causes on the heart of God.

Clearly, this is one of those. And so we're so thankful to partner with India Partners. Over the next several months, you're going to hear a lot more about it. But David, in our short time here today, let's finish with an opportunity for our folks to partner with you.

Where do they go? Yeah, the website that they can get more information and give would be IndiaPartners.org slash faith. IndiaPartners.org slash faith. For every $8.89, you underwrite their care for a day.

So multiply that out and be as generous as you can. But IndiaPartners.org slash faith. Folks, what an opportunity to be the hands and feet of Jesus through your giving.

IndiaPartners.org slash faith to learn more and give. David, thanks for stopping by. It's a pleasure. Thank you. Folks, back with your questions after this. 800-525-7000.

Stick around. JoinChristiancommunity.com. Membership eligibility required. Each account is insured up to $250,000.

This institution is not federally insured. An eight-year-old girl should never be exploited or abused because God's children are not for sale. But in India alone, half a million girls are trafficked and abused each day.

I know that if I'd stayed in the slums, my life would have been wasted. Action must be taken now. This is the mission of India Partners, to rescue girls from abuse, provide healing in a safe house, and make sure they are never sold again. Rescue a girl today at IndiaPartners.org slash faith. Well, thanks for joining us today on Faith in Finance.

I'm Rob West. All right, we're ready to turn the corner today. We're going to spend the remainder of the broadcast taking your calls and questions on anything financial. We want to help you tackle those things in your financial life you're thinking about, praying about.

If you perhaps don't know the best next step, we certainly can wrestle through those with you. We'll do that when you call 800-525-7000. We've got lines open and we're ready for you.

800-525-7000. You can call right now. Let's dive in today. We'll begin in Chicago. Hi, Tina. Go right ahead. Hello.

Thank you for taking my call. We are getting ready to purchase a new home. My question is about capital gains. My husband and I bought the home over 30 years ago. We bought it at a sheriff's sale before sheriff's sales or even a known thing, and so we got it at 100,000. It is now worth roughly 500 to 550, and we owe no debt. We have no mortgage or anything, so I'm just wanting to make sure are we going to be getting hit with any capital gains. We are buying a new home, but it's going to be, we're downsizing, and the new home is at 450.

Okay. Yeah, so what you do with the money after you sell it has no bearing on it, and whether or not there was a mortgage has no bearing. It's all related to the capital gain, meaning the gain from the original purchase price to the selling price, and so you're able to subtract that original purchase price from your selling price, and then you would also subtract out any improvements you made. Not maintenance, replacing a roof at the end of its life, but things that enhances the value of the property, but if you've lived there two out of the last five years, so from the date of the sale back five years, if you lived in that as your primary residence for two of those five years, and you're married filing jointly in terms of a tax status, then you can exclude a half a million dollars of gain from the capital gains that you would owe on it.

So in your example, if you're selling it for, you know, anything less than $600,000 because you have a $100,000 basis and you get a half a million dollars of gain excluded, assuming you're married filing jointly and you've lived there two out of the last five years, then you would have no capital gain. Does that make sense? Yeah, yes it does. I just wanted to make sure I was looking at it properly, and since we're buying something at less price. So as far as improvements, as you said, so normal every house has a roof, every house has windows, those kind of improvements don't vary, but we really don't have to worry about it then because we're within that range, or do I need to dig out the records from the patio addition, the sunroom addition, and stuff like that? It doesn't sound like you do. So just to be clear, you did live there two out of the last five years as your primary residence, not a second home or anything like that, correct?

We have been here over 30 years and the basement looks like it. Okay, got it. All right, and your tax status is married filing jointly, correct? Correct, yeah. So as long as you, I mean, if you paid $100,000 for it, as long as you sell that property for less than $600,000, you have no capital gain. Now, if the selling price were to go above that, then we may want to do some math on, okay, what are the fees that were involved in the transaction, or were any of those improvements that you made, and you'd talk to your CPA about this, classified as truly improvements and not maintenance, and, you know, you all could justify a case for that, but it doesn't sound like it's necessary because the selling price is less than $600,000. Yeah, at this time, that's what we're anticipating. But again, in our market, in our zip code, there is absolutely not one house on the market. So it's going to be interesting to see what it ends up at.

Yeah, and maybe they bid you up, that'd be great. And if it gets above 600,000, then at that point, you could get with your CPA and say, okay, what else can I add to this cost basis? Let's look at the fees involved in the sale of the property. Let's look at our list of improvements over the last 30 years.

And you tell us, will any of these actually be applied to our cost basis as improvements? And then you all could figure out whether or not you get that up above 600,000. But if you don't sell it for more than 600, you're probably in good shape. Great. All right. Thank you very much. All right. God bless you. Thanks for calling today. Let's go to Benel in Illinois. Go ahead. My question is, how do you determine whether a reverse mortgage would be beneficial?

Ah, yes. So you know, when we think about reverse mortgages, and these have historically gotten a bad rap, I think they are a legitimate planning tool to be considered. They're not for everyone. But if you have at least 50% equity in the home, you're 62 years of age or older, you're sitting on a massive asset. If you have a conviction to get out of debt and stay there, I think that's great. I wouldn't even consider taking out a loan reverse or otherwise. But if you don't have the assets you need to, you know, cover your expenses, and or you have quite a bit equity in the house, don't intend to move, or perhaps you have certain projects or renovations you want to do. And by taking a conventional mortgage, and then therefore having a payment that would, you know, create a squeeze on perhaps an already limited income. I think that's where reverse mortgage can shine. The benefits of the reverse mortgage are at least today's variety of a heck on the home equity conversion mortgages.

In terms of the kind of debt it is, it's non recourse. And what that simply means is the only thing that is guaranteeing that loan is the value of the home. And so regardless of what the value of the home does, you'll never owe more than the house is worth, which just simply means that, you know, if for some reason, the house lost value, and they paid you an income stream and you live to 120, you know, the government would step in and make up the difference between the mortgage balance and the value of the home when it's sold.

Secondly, whatever equity remains in the home that you didn't pull out through the reverse mortgage is available for your heirs after the reverse mortgage is paid. So that's a great option. And, you know, it can be the difference between you being able to cover your bills in this season of life and not because you can get an income stream for the rest of your life. So I think for that reason, or for those reasons, I should say, you know, it is at least a tool to be considered alongside the other financial planning tools in this season of life.

But tell me what questions you have on that, Benel. We have a significant amount of equity, which is about probably about 50%. And our plans would be to move into a in-law apartment that a family member has for us because we'd be caring for their kids. So we wanted to know if we I'm assuming you just have taxes to pay and no mortgage. Is that correct? That is correct.

Yeah. So you would have to pay the property taxes and the insurance, you would never have a payment. And in terms of how you'd tap that equity, it would either be through a monthly income stream. So based on your age, and therefore your life expectancy and the amount of equity that you have, they would determine how much they would pay you every month. And then they'd pay that to you for the rest of your life. And that amount that they pay out to you plus interest in fees that accumulate over time would ultimately need to be paid back out of the sale of the home, either at your death or when you sold it. But there's never a payment there. So you can take it as an income stream, or you can take it as a line of credit, where essentially they'd give you a certain amount available to you. And if you didn't take it, it would actually increase every year. And then you could just tap it periodically when you need it.

But again, no payments required. I see. Okay.

Well, I think that pretty much answers my question. Yes, thank you so very much. You are welcome, Benel.

If you want to check into this a bit further, you can check out our friends, our partners at Movement Mortgage. We'd be happy to explain to you any questions you might have at movement.com slash faith. Also, if you hold the line, I'll send you a copy of a book called Understanding Reverse that I think will be a helpful resource to you as you explore this further.

So stay on the line, Benel. Our team will get your information. We'll get that in the mail to you.

Again, it's called Understanding Reverse. It'll be our gift to you. May the Lord bless you, sir. We'll look forward to having you back sometime in the near future.

Back with much more just after this. Stay with us. Faith and Finance is grateful for support from Soundmind Investing. For more than 30 years, they've offered financial wisdom for living well. SMI provides step-by-step guidance for do-it-yourself investors, from those just getting started to those getting ready for retirement. More information, including a short video webinar on profit and peace of mind, no matter what's happening in the market, is available at soundmindinvesting.org.

This is Faith and Finance. I'm Rob West. So glad to have you along with us today. The number to call today with your financial questions, 800-525-7000. All right, let's head back to the phones.

Crown Point, Indiana. Beatrice, thank you for calling. Go right ahead. Thank you all for taking my call.

I have a question. I own a condo that's free and clear, and I want to invest in investment property. But I've been told by two different bankers, where they're both trying to get me to take equity out of my condo, either do an ELOC and then along with a loan.

And it's not making sense to me. And they're also telling me I can't keep my condo if I'm purchasing investment property. So it's not making sense to me that they want me to take the equity out and do a loan.

Wouldn't it be best if I just did an FHA or a conventional loan? Yeah. Yeah. So talk to me about the investment property. How much are you looking to spend on that? A costume is 140,000 max.

Okay. And do you have some money? I know you have equity in your condo that you own free and clear, but do you have some money to put down on that property in cash? I do have some money to put down, but the property and look at that is actually what they say I qualify for. What I'm looking at is actually on the 105. That's what they say I qualify for, 140,000.

Okay, very good. So you're looking at buying a property, an investment property that you would purchase for 105,000. How much do you have to put down on that in cash?

Five to six thousand. I'm going five percent. Okay.

Yeah. I mean, that would not be my preference. And that's perhaps why they're asking to take the home equity loan. But I wouldn't I wouldn't do that because, you know, normally, I mean, even though you can get away with putting down five percent, you're going to have private mortgage insurance, which is an extra expense, probably about one percent of the mortgage. And, you know, you're just going to have a much bigger mortgage. And because it's, you know, rates are already high, but because this is not your primary residence, they're going to be even higher. So let's say you're getting a mortgage at eight percent and you got it.

Ninety five percent loan to value because you're only putting down five percent. It's going to make it difficult to cash flow this property just based on the rent. And what if we get into a recession and it's harder for you to come by a renter because, you know, maybe the recession is a little deeper than we expected. So, you know, I would really rather you wait at a minimum until you had 20%, which is going to be twenty eight thousand.

Now, you might say, well, Rob, I'm going to miss it. Well, I would rather you miss out on an investment opportunity than you get overextended and find yourself where you can't make the mortgage payment on the property because you can't get a tenant in there and you got a big mortgage. And let's say the housing market dips slightly, you could even be upside down where after expenses you're selling it for less than you bought it for if you had to get out of it, which is all the reasons why we want to put as much down as we can. I like 20% down on a primary residence. I like even more than that, 30% plus on an investment property. So I would probably hold off on this and do two things.

Number one, wait for interest rates to come down and number two, continue to build up your savings so that you can put down, you know, 20% or more. But how does that sound to you? Good. They owe me a 6.6% interest rate. And also suggested to what my roots were saying, I could live in the property for a year or two myself before even considering flipping it or renting it out. Because my thing is flipping, but she said, because I'm in Indiana, they'll allow you to live in a year and then flip it if you choose to flip.

Okay. But you still got the challenge that even regardless of how much they're willing to loan you, you're still going to add a pretty significant mortgage payment. Do you have the cash flow to support the mortgage payment? Oh, I have the cash flow. I'm literally debt-free other than a car note and $260 in my student loan. I don't have any other debt and I make about $67,000 a year. Okay. But why do you have only 5% to put down?

Where's that money been going? I mean, I can put down more. I didn't know if it would really make a difference in the mortgage. I can put down more than, yeah. Okay.

All right. And they're offering you that, Ray. I mean, rates are up at 7.1% right now. Are they quoting you this as it being your primary residence? Yes.

They said if I should take that out, I should have lived in there for that one year and considered that my primary residence. Yeah. Yeah.

So I didn't realize you were moving in. Okay. Well, I mean, I think the bottom line is, yeah, I mean, you got to go back to your budget, right?

I agree with you. I'd rather you not get the home equity loan on top of the conventional mortgage. So I would just get the conventional mortgage on the new property alone.

I'd put down as much as you can personally. I'd check your budget. It sounds like because you're living modestly and you're debt free, you could support the payment. But I double check that and make sure that you're not relying on a renter. It sounds like you're not because you're going to live in it, but just make sure you're playing out kind of the worst case scenario. And what if we get into a deeper recession here? But, you know, other than that, I think you're right on track.

And I would agree, I would not get the HELOC. So if we can help you further, don't hesitate to call Beatrice, but all the best to you in this new endeavor. Let's head to Virginia. Hi, Monte.

Go right ahead. Yes, sir. The question is, in the unavoidable situations where people divorce, if it's the opposite, where the husband stays at home and takes care of the kids 14 to 15 years, now the kids are all grown 33 up to 18 or other way around. But what is the obligation when somebody divorces, what is the obligation with spousal support and or I guess what you would call alimony when one of the other decides to divorce, but the person that was a stay at home person gave up all their assets in their era, and they have nothing to live on, especially if they had a disability. So how is that done? And what determines what the person that divorces, you know, has to pay the person that needs a spousal support or alimony?

How does that determine? Yeah, so spousal support, or as you said, also known as alimony is really calculated by the courts based on the income of both spouses. So a common method for calculating spousal support could be, you know, up to 40% of the paying spouse's net income.

And so that would, you know, typically be, you know, maybe a starting point. But ultimately, it would be based on need and what's called ability to pay. And it's more common with a long term marriage, those have been, you know, married 10 years or more, there's no set formula to determine that it's ultimately up to the court, just based on again, those incomes and ability to pay and need. So I think, you know, all of the things you're saying would weigh into that need factor, which is disabilities, not having resources today, because perhaps resources that were saved were used for as a part of the marriage for other things. And so the extent to which there's ongoing income, the court would factor that in, in determining that alimony, you know, ultimately, I think if you want to go beyond those general ideas, you'd need to talk to an attorney, I'm certainly not one, but ultimately, it would be up to the court.

But I think you connecting with a divorce attorney who could walk you through, based on your specific situation, what you might expect would be a next step to get a little more granular there, beyond just the basic but Monty, I hope that helps at least get your point in the right direction. We appreciate your call today. That's gonna do it for us today. I hope you found something encouraging and helpful today. A big thanks to my team. I certainly couldn't do it without them. Amy, Dan, Taylor, and Jim, may the Lord bless you. And I hope you'll come back and join us next time on Faith and Finance. We'll see you then. Faith and Finance is provided by Faith By and listeners like you.