Real Estate Trends Part One

Episode Transcript

Speaker 1 (00:00):
And welcome to Cindy Stumpo Toughest Nails on wb Z,
and I'm in the studio tonight. We have a different
co host. What's your name?

Speaker 2 (00:09):
My name is Jesse Foster, Jesse Foster, and we have
my Yes, there is a relation I can tell.

Speaker 1 (00:18):
And what do you think the relationship is?

Speaker 3 (00:20):
Daughter?

Speaker 1 (00:21):
Wife wife?

Speaker 3 (00:23):
Oh?

Speaker 2 (00:23):
My god, he wishes raised daughter. Yes, I am one
of his.

Speaker 4 (00:27):
Dam It.

Speaker 1 (00:28):
Sammy is not in the studio tonight because she's in Florida.
And we have Mike Crucci and we have who again,
Jesse Foster. I just want to make sure we heard that,
Jesse Foster, and you again asked what me?

Speaker 4 (00:42):
No?

Speaker 1 (00:42):
If that was Ray's daughter, raised daughter? Yes, that's raised,
beautiful daughter. Okay, now that we clarify that, who are
you mister Crucci.

Speaker 3 (00:49):
Michael Caruccie, Southby's, gibson Sotherby's and Greater.

Speaker 1 (00:52):
Boston and my personal friend.

Speaker 3 (00:55):
And Cindy's personal friend for life?

Speaker 1 (00:57):
Okay? Are we are we ready to debate?

Speaker 3 (01:00):
I think we are ready to discuss topics?

Speaker 1 (01:03):
Okay, well we can have an adult conversation. That would
be very boring.

Speaker 3 (01:07):
There has to be an adult in a room in
order to do that.

Speaker 1 (01:09):
That would be true. And right now, I'm not an adults,
so I'm gonna be a child. All right, let's talk.
Let's talk about this market. Okay, let's talk about this
market in Massachusetts, which is the real estate market. And
when we talk about the real estate market, folks, we
are talking. Real estate is a funny word. It's a
big umbrella.

Speaker 4 (01:28):
Right.

Speaker 1 (01:29):
You ever hear people say, well, I'm in real estate,
Well what do you do all the time? Okay? Are
you a developer? You're a builder, You're a broker, you
in the mortgage industry? We can keep going right, Some
will say all of the above, correct, and I just go, okay,
well tell me what you're a master of and a
maven of like master of everything, raven of nothing. So
real estate's a broad market. You are a real estate broker,

(01:52):
bye bye. You've got into a bit of development through
the years, but your main is what residential okay broken.

Speaker 3 (02:02):
Cuxury residential on the brokerage.

Speaker 1 (02:03):
Side, and I you're on the brokerage side, and I am.

Speaker 3 (02:06):
What developer and builder?

Speaker 1 (02:08):
There you go. So together, we come together, and we
work together, and let's talk about mass and then we
can talk about the country because you talk to other
people throughout the country obviously with your company, right you guys, Okay,
and I talk to developers that do ultra high end,
middle end and the track homes throughout the country thanks

(02:31):
to social media and thanks to social audio. Right, So
let's talk about maths and then we can talk about
the rest of the country. Where do you feel the
market is right now as we're standing today today flat?
So we're going to call the market flat? What's flat?
In your opinion?

Speaker 3 (02:52):
Absorption rates are increasing, inventory is increasing, and we are
probably going from a seller's market to a buyer's market.

Speaker 1 (03:04):
Okay, why do you think that happened?

Speaker 3 (03:08):
Oh? I think it's the perfect storm.

Speaker 1 (03:10):
So let let let let let's let's establish here we're
in twenty twenty five, right and Okay, I'm gonna let
you finish, go ahead.

Speaker 3 (03:19):
I'm I think again different, there's different geographical pockets of
the market, and then there is different pricing pockets of
the market, and I think some of them are affected
more than others in this particular market.

Speaker 1 (03:38):
But when you see Massachusetts, Massachusetts, which is a strong state.
Boston is a strong city between schools, relocated schools, hospital lifestyle.

Speaker 3 (03:48):
All that right, very diversified.

Speaker 1 (03:51):
Okay, we always have been so now you see we
were talking to three years ago. Three years ago we
don't have enough house housing.

Speaker 3 (04:02):
Well, we still don't have enough. In general, we still
don't have enough.

Speaker 1 (04:05):
Housing, thank you, But right now we do different pockets.

Speaker 3 (04:10):
We certainly do not have enough affordable housing. We certainly
do not have enough market rate housing. Okay, I think we.

Speaker 1 (04:16):
Have affordable it's a different story, okay. And there's reasons
why affordable so hard. And I can get into that
being a developer and a builder, right, how do you
want me to build?

Speaker 3 (04:29):
Afford construction costs?

Speaker 1 (04:30):
Correct? No, it's not just construction costs. Wine cost construction costs, okay.
Wine is the cost of money.

Speaker 3 (04:35):
Tax credits, cost of money, cost.

Speaker 1 (04:38):
Of money on material, and the biggest one is skilled labor.
You don't have enough skilled labor to go around. You
don't have enough skilled labor. The average contractor is fifty
years old, the average plumber, the average electrician is in
their forties.

Speaker 3 (04:54):
And young people aren't getting in the trades.

Speaker 1 (04:58):
We lost ten plus of people gains the trades.

Speaker 3 (05:01):
Why is that?

Speaker 1 (05:03):
Because every parent want their kids to become the next doctor, accountant,
and lawyer.

Speaker 3 (05:07):
They realized that plumbers make more than doctors.

Speaker 1 (05:09):
I've been screaming it for fourteen.

Speaker 3 (05:11):
Years, masons. I thought I wanted my children to be
doctors and lawyers. I want them to be a mason.

Speaker 1 (05:16):
Okay, there you go, because you know what you're paying for.
Masonry work great, and it's scary. So for let's say,
fourteen years, what program haven't I been on? Even have
my own TV show, have a national radio show, and
fourteen years have been pushing kids to get into the trades,
speaking at schools, Good Morning America, Harry Kannick, you name it?

(05:38):
What the show?

Speaker 3 (05:39):
To anybody that went worth? How much is it?

Speaker 1 (05:42):
What's been a complete letdown with me as far as
I'm concerned.

Speaker 3 (05:45):
Yes, yes they have that day you'd be looking for.

Speaker 1 (05:48):
You would think that. I have called them multiple times,
and the leaders are always changing and the presence always changing. Okay,
the only one that should be walking in that school
and saying okay to those students. See, they want to
teach a certain way these schools, and they don't want
to teach reality. Right. I can go on social media

(06:10):
and teach reality about this business faster than I can
teach those students. They want to put these kids to
sleep and make it too traditional, meaning okay, you put
your arm with your shoulder, and then you put your elbow,
and then you put your wrist and then you get
your hand in your five fingers. Kids don't have the
attention span. So kids that want to learn the trades

(06:32):
they learn by doing, not by reading. They have a
different set of brains that they work with. Right. There
are kids that are great students and they read, read,
re reread, and they're great. They comprehend, they go, they
take their tests. They're pure academians, or they're just really
high honors or just really good students. I had a

(06:53):
brother like that. He was the high honors and I'm
the kids chasing seas right today. If we were live though,
but if he was still alive today, we look back.
Unless he became that criminal attorney that he wanted to be,
then maybe maybe he would be making more money than me.
If he became just a normal lawyer with all his degrees, financially,

(07:17):
I would have done better than him. Follow me. So
for fourteen years, parents have heard me say over and
over again, my plumbers, my electricians, my hvac guys make
more than the average problemmer, average electrician, average HVAC guy. Right,
one air in and one air out. Because there was
a stigma all these years. So as much as Mike

(07:40):
Rowe has run, Mike Holmes has run, and myself all
reality people to try to get kids in the trades,
we were not making a difference enough. It is sexy enough,
just not to the parents. Okay, So when my mom
and dad had to say at twenty three, when I
was twenty three, twenty four, oh, my daughter is a builder,
and they would look at my parents like, excuse me,

(08:01):
you mean your son in law? No, actually my daughter
and was very proud to say that, right, and my
parents took a lot of crap on that that doesn't
make sense. That's a not a good job for a girl.
Why you were allowing her to do this type of work? Yeah,
go ahead, tell my mom and dad whys right? The
whyse lasted about three seconds, right, But for other parents

(08:23):
they would probably get, oh my god, why is miss
Jesse Foster asking me, Miss Citney Stumple, why I'm allowing
my daughter to be a builder, Because I'm gonna be
able to handle her. When she asked me that question.
I think for a lot of parents they can't, and
they would feel like their kids are not hold that thought.
I'm holding my own thought. I'm Sidney stump and you're
listening Toughest Nails on WBZ. Will be right back and

(08:45):
welcome back to Toughes's Nails on WBZ. And I'm Sidney
STUMPO and I'm here with who.

Speaker 2 (08:50):
With Jesse Foster and Michael Curacie.

Speaker 1 (08:53):
Okay, Mike, can you speak louder so?

Speaker 3 (08:55):
I can?

Speaker 1 (08:56):
I want you to. I want you really flex. Okay,
got it all right? Good because I don't need you
to put my listeners to sleep, either one of you. Okay,
I'm sorry, it's already a late say night. I know
you're all exhausted here. Okay, I get it all right.
So we were just talking about trades and the problem. Right,
we have a slow down in real estate. I'm going

(09:16):
to tie this whole knot together and let's see if
we see it the same way. Okay, let's go back.
We know we have a shortage of skilled labor. We
knew that through COVID we had a shortage of houses, right, correct? Okay,
did you know that in eight, nine, ten and eleven
that we were going to have a shortage of the
housing market. Did you ever think that would happen from

(09:40):
the market from eight nine ten eleven, when eight nine
ten eleven hit up and the building had stopped across
the country, did you not think that that would not
catch up on us at some point?

Speaker 3 (09:53):
I think eventually, of course, it was inevitable.

Speaker 1 (09:55):
Okay, But when I went on Bloomberg Radio when they
came to South Station in twenty eleven. I don't know
if you remember that Bloomberg Radio came into Boston. We
can go on the internet. It was the fourth quarter
of twenty eleven. And I said to that reporter, two
of them, and they went right over their heads, what's
gonna happen because of eight nine ten eleven? When the
fourth quarter of eleven we have been building what we've

(10:18):
been building for four years. Don't you think that's going
to catch up on us? They looked at me like
I had fifty heads in that interview, right, They're like, uh,
we're not we don't know what you're saying, Cindy. I said, okay,
let's jump off that one. Let's talk about skilled labor
that no one can deny in this. All this stuff's
on the internet, Bloomberg Radio and HGTV. Right, it's all

(10:40):
up there called all these calls. No one was listening
to me. I'm like the little nudge going up and down. Hey, hey,
look at me. Why is anybody listening to me? You're
all listening to these people that go to Harvard and
Yale and Brown, but nobody's listening.

Speaker 3 (10:54):
No common sense.

Speaker 1 (10:55):
Exactly, Thank you, Michael. That's what it came down to
with me was calm sense. I could figure this out. Okay, jump,
how many years do you think we had a bullish
real estate market when your sales were insane? From what
year to what year?

Speaker 3 (11:11):
Well, they typically run in seven year.

Speaker 5 (11:13):
Cycles exactly, but what happened was eleven years.

Speaker 1 (11:18):
Okay, all right, so let's do the numbers right. And
you said it right on, dead on. I always say this,
it's cycles, seven years.

Speaker 3 (11:26):
Off everything cycles.

Speaker 1 (11:27):
That's the history. We can only go by history, right,
We can't see the future. So if you said the
numbers right, oh, eight, nine, ten, eleven was a bad year. Twelve,
we started to come out of it, right, we did.
We did a mess CALLI started to come out of it.
Every state went a little different. Floridas took like till thirteen,

(11:48):
but they came out of it right and fast and furious,
and we all came up fast and furious. Once twenty
twelve hit. It was the pedalty metal and there you go.
You have your eleven years, like you just said, from
twelve twenty twelve to twenty twenty three. Right, what happened
in twenty three to slow us down?

Speaker 3 (12:09):
Interestrates?

Speaker 1 (12:09):
Bingo? All right, so let's put that aside. Interest rates
started to climb on us. Right. What was happening on
fourth quarter twenty nineteen? Do you remember too far back?
What COVID? Nope, we hadn't hit COVID yet. Hear me
out from it. The fourth quarter twenty nineteen we slowed down.

(12:31):
We started to feel the slow down. I remember my
buddy Rossy had a house in Wellesley. Wasn't selling. Another
buddy their house wasn't selling. Things were taking longer to sell.
Tried to think about that, Michael twenty nineteen started to
slow down, which what he gave you?

Speaker 2 (12:50):
What was this a seven year cycle?

Speaker 1 (12:56):
That if fourth quarter twenty nineteen slowed down, that would
have gave you seven almost eight year cycle, But it
would be perfectly seven years because thirteen, fourteen, fifteen, sixteen, seventeen,
eighteen nine, we're here strong years. We were starting to
build again. Nineteen we slowed down. What happened twenty twenty

(13:17):
correct what everybody do.

Speaker 3 (13:20):
Well, everyone thought was the end of the world panic.

Speaker 1 (13:23):
So everything's going to die, so get let me make
this very clear.

Speaker 3 (13:26):
But it didn't.

Speaker 1 (13:27):
But hold on, think about this for a minute. Let's
think how crazy our thoughts were. We're all going to die.
Let's go buy houses in the burbs. Come on, think
about this. I don't know if we'd die, but honey.

Speaker 3 (13:41):
We need your more sit pricing, I mean home selling
for million dollars over ESK because you can't get now, okay,
we can't get out of them now, okay.

Speaker 1 (13:49):
So we went to the burbs, right, and then we
had the Boston loop like it just died.

Speaker 3 (13:56):
The buying opportunities in Boston in two twenty, in twenty
twenty one, even in twenty two two, the buying opportunity,
and then twenty three, because nobody was buying, I put
clients in.

Speaker 1 (14:12):
It was called what Sammy called it, the COVID Boston
Boston COVID discounted something So my point is we would
have been right on our cycles. But COVID hit up
and all money did was transfer from the city to
the burbs. It's not like all this money magically appeared.
And what was the other thing that happened that made

(14:34):
people go, oh, I can sell my home in Boston
because it moved to the burbs. Because why, well you
interest rates and go exactly from home. That Put that
aside for a minute. Put that aside. The point is
when you're talking about real estate, they were coming out
of five six percent mortgages and seven and went down.

(14:58):
So they're paying much more money for homes they're buying,
but they made up on the interest rate. Yeah, you
see where I'm going here.

Speaker 3 (15:06):
Well, if you do the math between the three percent
and a six percent, your buying power.

Speaker 1 (15:09):
Is two x being gone.

Speaker 3 (15:11):
You're buying power is two x being go. What a
lot of people don't talk about is that the correlation
of the rise and property values versus the drop in
interest rates, because they are correlated and people don't like
to look at that.

Speaker 1 (15:23):
Okay, So here we are today, right and the market
has softened.

Speaker 3 (15:30):
Prices haven't dropped with the cost of money is doubled.

Speaker 1 (15:33):
And still going up and still going up. Okay, I
just got a letter from Peller that their price is
going up two percent at the end of next month.
Whatever you know, locking rates now because of terriffs. I'm like, okay,
can some explain to me? But I guess there must
be some parts of their windows systems that are made
overseas well.

Speaker 3 (15:53):
They're building them the prices into they're being conservative again.

Speaker 1 (15:57):
I will find out. I will ask them, right because
I ask always ask because not not just hell are
all the products that I use because I only use pillow.
But every time I get a price going up because gas,
and then when gas comes down, how come I don't
get a letter six months later going, oh your prices
are coming down. That never happens never. So what's going

(16:22):
to bring down pricing is the demand slowing down. Once
the demand slows down, pricing will come.

Speaker 3 (16:28):
That's what we're seeing here.

Speaker 1 (16:29):
Now, well you might be seeing that, but I'm not
seeing it in the figures in my material cost. What
I am seeing is this mic more guys need work.
Our phones are going down, not necessarily going up. So
here here lies the problem again at sea stumper development.

(16:51):
We're taking probably about fifty emails a month from sub correct.
I haven't seen that since wait nine, ten eleven. After that,
pretty much builders got smarter. I've always been a smart builder.
I've always had my team, you know that. So I
wasn't worried about losing guys, right, I only have to

(17:13):
worry about that my guy's aging. There's the difference, right,
And you can'tra places aging guys out with these new
guys coming in because they just don't have the experience.

Speaker 3 (17:23):
That's the bigger problem. I think.

Speaker 1 (17:25):
Okay, so we're going back now. We're going to go
back off by ninety five and go to eggs at
twelve because we jumped around a bit. I don't want
to confuse people. You've lost ten to twelve years of
kids getting into the trades. So I say this very respectfully.
The generation between that is standing right now, between the

(17:45):
ages of twenty eight and thirty eight are some of
the worst. The worst ten year generation I've seen. Terrible. Okay,
no offense because you're a phenom. So what used to
be the norm when a kid is like you, Jesse,
and I call you a kid because you're always gonna
be kidd and by the way in Boston. Mike's a

(18:06):
kid and I'm a kid.

Speaker 4 (18:07):
Right.

Speaker 1 (18:07):
People actually laugh when I go you know you're listen kid, right,
that's how you talk? Well, you mean I'm a kid.
I'm fifty years old, kid, you're a kid. Okay. My
father calls me a kid like they call him big kids.
They call.

Speaker 2 (18:19):
Yeah.

Speaker 1 (18:19):
It'll my mom and dad will be talking about their
friends and Bobby, you know that kid. I'll be like,
what kid? I think they were ready to talk about
a kid. You know the guy that's eighty four year
olds eighty four years old, mom, he's not a kid anymore. Yeah,
he's a kid. But so, folks that are listening, we
just use that word kids all the time. But okay,
let me hold that thought. Let's go off to break.
We'll be right back. I'm Sinny Stumple and you're listening

(18:40):
Tough His Nails on w BS and welcome back to
Toughest Nails on WBZ. And I'm Cindy and I'm here
with Jesse Foster.

Speaker 3 (18:46):
Michael Carucci.

Speaker 1 (18:47):
That would be Michael Carucci. Can you say like that?

Speaker 3 (18:51):
Michael Carucci, thank.

Speaker 1 (18:52):
You very much. What were you just saying? I heard
you talking behind my back a second ago. What you
were saying to Jesse, we have to hit the bullet points,
and we talked about you. Oh okay, I just want
to make sure. I just want to make sure you
want to hit your bulletin points on these subjects. Right, okay,
go ahead, Letesse ask you a question, even though I'm
actually not done debating you. What were just talking about?

Speaker 4 (19:13):
By the way, we're just talking about how much my
generation sucks at working?

Speaker 1 (19:15):
Well, oh yeah, why would I go after that subject?
So we'll finish this up. I say, you've lost ten
to twelve years of work is now? What you're seeing
now is the sixteen, seventeen, eighteen, nineteen twenty. They know
what they want, they're going for what they want, and
I see it on my job sites. I'll tell you why.
Let me just finish. We take twenty kids on between

(19:37):
the second week of May to the second week of June.
Last summer was the first time I went, what's going
on over here? These kids are moving, they're not on
their cell phones, Miss stumble, What do I do next minute? Now?
I will give you this. The girls were definitely better
than the boys. Yeah they were. And the shocking, shocking,

(19:58):
kind of what do you mean just everything? Really everything
everything else?

Speaker 3 (20:03):
So they got just now in perpetuity.

Speaker 1 (20:06):
They got what I was saying. They weren't physically as
strong as the boys, sure, but they would be like
they see my eyes. I get that look in my
eyes like I'm called crazed, crazed. And the girls, yeah,
the girls would say, miss Stump, why I have it
from here? Right? Okay? How do you have me here? Yeah?
Can you just pick up those studs and pick them

(20:28):
and bring them over there? Like she would? Just can
you just when she says clean up everything, she doesn't
mean surface clean, put the vacuum in the events, suckle
the vents like and when she says that this is
don't walk over things?

Speaker 3 (20:41):
Right.

Speaker 1 (20:41):
So, but again I still saw last summer was the
first time they saw our kids much much different, much different.

Speaker 3 (20:48):
Are you seeing children of the tradesmen getting into the
industry or less of it?

Speaker 1 (20:55):
Okay? So you know, look at my all my guys
kids are working with them right now, but a lot
of them to go to college right and now they're
back home working for their parents, for their father's companies HVAC.

Speaker 3 (21:09):
And the reason for that is I'm sure a combination
of things. Correct.

Speaker 1 (21:13):
No, some of them wish they didn't call opportunity. Someone
wish they didn't even bother wasting their time going off
to call college here. Yeah, actually only one out of
probably I see eight or nine of them out there. No,
maybe maybe weps like twelve or thirteen. Now that said,
it was so dumb for me to go to college
because the only thing I learned was how to do

(21:36):
my laundry and be independent.

Speaker 3 (21:37):
And I can and there you go.

Speaker 2 (21:40):
Especially, but again, am I good at that play it?

Speaker 1 (21:46):
If we have to spend one hundred and eighty thousand,
not a phase still in it? Okay, So if we
have to spend one hundred and eight thousand to teach
our kids how to do laundry and be independent, then
want we just throw them in another state, get them
an apartment, and say come, I can year from now
and let me know how life spend. Right. There's other
ways to do it. But my point is you are

(22:06):
getting a lot of kids in the trades now and
mechanics and everything that we do need because they're realizing
I don't have to go to college to make money.

Speaker 3 (22:16):
Imagine going to medical school spending all those years.

Speaker 1 (22:20):
Make all that money a year hold on while they're
working in emergency fellowship.

Speaker 3 (22:25):
I know firsthand what they make and it is insanely
low given and they're not.

Speaker 1 (22:30):
Sleeping nouch Jesse's business right there?

Speaker 3 (22:35):
Anyone else?

Speaker 2 (22:36):
Yes?

Speaker 4 (22:36):
Really, Yes, I'm with Johnson and Johnson right now devices
Robotic Assistant.

Speaker 3 (22:42):
Do you know J and J one of the few
companies that had a rule that no family member could
work for the company. What you know? Johnson and Johnson
are Johnson on Johnson.

Speaker 2 (22:51):
I feel like I know a lot of Johnson's, but
I don't think they're related to the.

Speaker 1 (22:53):
Fair Why is that?

Speaker 3 (22:55):
It was? It was a mister Johnson's stipulation. I used
to know the top weird Diana Foster used to run
the Nutrigena division, Jay and Jay and No, they can
sit on the board, but they cannot work for the company.

Speaker 1 (23:12):
Why was that ortism?

Speaker 2 (23:15):
Nepotism?

Speaker 3 (23:15):
They didn't want them the elder Johnson couple which one,
But I found it fascinating that they restricted family members
from getting in the business.

Speaker 1 (23:25):
Very strange.

Speaker 4 (23:26):
That is very strange, Like I feel like no one
does that anymore. I feel like everyone's just nepotism here.
We go like, come on in, I hope.

Speaker 3 (23:32):
You have stock options.

Speaker 1 (23:33):
Oh yeah, yes, she's not stupid little see, she's she's the.

Speaker 2 (23:37):
Age what's taking over the world.

Speaker 1 (23:39):
She's the one that's getting married. They bought a house
for us in Bedford.

Speaker 2 (23:44):
Tell me that ring. I haven't gotten a ring.

Speaker 1 (23:46):
Like, yeah, yeah, yeah, you like the guy'd be a
surprise him. I love him, I love her.

Speaker 2 (23:54):
And she even says it in front what's his name, James.

Speaker 3 (23:57):
And Cocalis Jamison put a ring on it.

Speaker 2 (24:00):
Trust me hear that.

Speaker 1 (24:01):
Okay, turn your head for a minute. Turn your head,
turn your head, turn your head. Beautiful. Yeah, yeah, gorgeous.

Speaker 2 (24:11):
You can say that to my face.

Speaker 1 (24:12):
No, we can't tell you because it's gonna be a surprise. Okay.
To get back to I ninety five, These kids coming
up now, the problem is developers my age don't have
ten years to wait to level them up. They got
to get leveled up, right, They got to pay their
dues out there, So they're still gonna be that ten
year gap correct, And I don't know if we'll catch

(24:35):
that gap up.

Speaker 3 (24:36):
I don't think John Fish saying what is he saying?

Speaker 1 (24:40):
Same thing we're saying. But again, these commercial guys. Hey, guys,
if you listen, I'm calling the way it is. You've
been burning the subs and sinking the subs for years.
You found that you got a problem. Now see, you
can't sink the subs anymore. These guys made a living
out of sinking the subs, right, So all the big
GC firms did it all the time. They didn't pay
these guys. And when they didn't pay them, and they

(25:01):
dangled the carrot in front of their faces and said,
on the next job, exactly, I'm going to give you
another job. Cut your wreck back twenty five percent, thirty
percent eighteen nineteen twenty is. Hey, it's going in there big.
That's I laugh. Every day I worked as a sub
sea stumple. Waterproof and restoration masonry was subcontracts. As these

(25:22):
guys getting money, we had to fund you. We couldn't
wreck you for forty five days. We had already had
payroll out there, we'd already had material out there. We
have to be out on that job. Find Instagram exactly
forty five days, then can start wrecking you. And then
we're waiting thirty days and sixty days, in ninety days,
and next thing you know, we have one hunt twenty
eight coll a haircut. Okay, so these guys can't afford Hey,

(25:46):
you're the big boys. Why are the subs funding you? Guys?
My subs don't fund me. Ever, they need advances to
pay for materials. We pay it, we give it. But
you know, listen, the builders have learned the hot way.
Thank god, I've never learned that way. The respect fact
and the loyalty that and it wasn't that was smarter, Michael.
That's just me being loyal something you're born with. You

(26:08):
can't buy that, right, So I made that business as
loyal as I could. So again, we are seeing a
slow down in our market, and I think, question the
only thing that's going to make this market rock and
roll is the interestates must come down.

Speaker 3 (26:27):
I think that's just one fact that people do not
like uncertainty, especially at the luxury end.

Speaker 1 (26:33):
The luxury end is less uncertainty.

Speaker 3 (26:36):
Uncertainty tariff's what's one day the world's going to end
the next.

Speaker 1 (26:40):
Sight But let me stop you there, as Ray Foster says,
the world ends only one time, and we'll all be
dead to so we won't know, we'll we're not going
to end up in the breadline, Mic, No, and we're
not going to end up in the soup line.

Speaker 3 (26:53):
I agree, I agree.

Speaker 1 (26:54):
But what we're seeing now that is abnormal. What's abnormal?

Speaker 3 (26:59):
People waiting? They are there, but they're waiting on the
sidelines daily. Were they afraid the econ? Well again, this
is not interestraight sensitive, Cindy, this is stock market sensitive.

Speaker 1 (27:09):
Rockets at all time high as of two days ago, right,
but a two weeks ago it was what is if
you're going to be in the market, you got to know.

Speaker 3 (27:19):
Those types of flectuations.

Speaker 1 (27:21):
Say it was self induced, right, is that we.

Speaker 3 (27:23):
Were Those type of fluctuations are not welcomed. People like
a relative amount of certainty, good or bad uncertainty. People
don't react to it well, And that's what we're certainly
saying without.

Speaker 1 (27:37):
A Doulamas nineteen eighty seven, Black Monday eighty eight, a
nine to ninety called the recession. It was No, it wasn't.
Well technically it was not called a recession data wise,
technically a recessions two bad quarters, right yep, Okay, the
Black Monday was a seven market crashed that it came
right back crashed right, Well, I never got my money
back from Colin that I went down to zero and

(27:58):
lost everything, or twenty three is so long. Let me
tell you that wasn't fun. I wish I had never
done that, But that's okay. I was was eight, nine, ten,
eleven a recession? Yes, it was called the Great Recession? Right,
So uncertainty happens this time. They want to blame this
uncertainty on who's running in the country, right, yep. And

(28:20):
that's okay. We can do that too. I can play that.
I can play that game too. And we know, oh god,
here comes the clock in front of my face. All
that thought. You're listening to Cindy Stumpo Toughest Nails on WBZ,
and we'll be right back and welcome back to Tepa's
Nails on WBZ. And I'm Cindy Stumpo and I'm here
with Jesse Foster and Michael Carucci. Okay, go ahead, Michael.
What were you saying? Good volume that, Mike, uh we're

(28:44):
talking about Okay, the crash of ouration. We're talking about
eight and now we're here in twenty five, and.

Speaker 3 (28:51):
I think you're seeing a hesitation and a pause in
certain pockets of the market, especially the luxury market. I
will tell you if you look at single family homes
in the back baying Beacon Hill, they have not traded
all that well in the last twelve months. And a
lot of people can't figure out why.

Speaker 1 (29:12):
Okay, well, let's let's talk about that. We'll use Boston
as example, the back bay and people that don't live
in Boston, because remember we're in thirty eight states, so
you have to broaden your horizons.

Speaker 3 (29:22):
Which have a nice station.

Speaker 1 (29:23):
Sits there.

Speaker 3 (29:26):
Residential area of the city, Oh, Koston.

Speaker 1 (29:28):
So let me ask this question. How much they asking
a foot?

Speaker 3 (29:33):
Well, I have a few of them for sale, so
on average we're about nineteen hundred to twenty two hundred four.

Speaker 1 (29:39):
Okay, so let's take that number. These are not brand
new or brand new.

Speaker 3 (29:42):
You got ten million dollars for five thousand square foot.

Speaker 1 (29:45):
Home, okay, ten million dollars. What was the same units
selling for in nineteen that's my comparison. Que four million okay,
two thousand, ninety.

Speaker 3 (29:58):
Million, and interest rates were half of one. Okay, it's
more than double your price and your cost of money
is doubled.

Speaker 1 (30:03):
Okay.

Speaker 3 (30:04):
So what you do is you just took you took
a market that was maybe twenty five percent of the
buyers to five percent of the ball.

Speaker 1 (30:13):
Do you think it's five years you should be making
six million dollars off your residential investment? Seriously, Well, let's
wake up here, folks.

Speaker 3 (30:23):
That's five million. They put a million or two into.

Speaker 1 (30:25):
Okase, what's seven million? You think you should be making
three million and five years off your single family residential home?
Developers don't make that? Do what you do? That new
mike counting money here? Okay again, when I buy, when
people do the maths, indeed, okay, when people buy a home,

(30:47):
think about this. Okay, he's busting Okay, he's got to
bust my balls.

Speaker 3 (30:50):
I don't have my wrong.

Speaker 1 (30:52):
Look, let's put you this way.

Speaker 2 (30:55):
Comment.

Speaker 1 (30:55):
This is why I do what I can't lay I left. Okay,
so it's worth it. Okay, he's got me laughing, So
she's get off my money. Okay, let's talk about your money. Listen,
here's the point. Mister and missus Jones are end users.
They are biotech people. There are doctors, they're lawyers. Whatever.
What makes them think they should be making three million

(31:17):
dollars as a profit margin in five years? Because they
saw their neighbors did Oh well, guess what. Too bad?
You're not your neighbor that's gone wake up. Low your
numbers and you'll sell your product. And you know what
the word is called that gets every troubling expectation. Reed, greed.

(31:38):
Stop being greedy. Take a million dollar profit, be happy
you just made a million dollars. Low your number from
ten million to eight and a half million, and maybe
you'll move your product and move on.

Speaker 4 (31:49):
There're still lunatics out there buying it at that price,
though they're ruining it for.

Speaker 3 (31:52):
Let me give you the good last ten days. Okay,
I won't mention particulars, but I have a single family home.
I'm asking nine to six for I've had two offers
in the last ten days and he were all about
the same eight one A two. Okay, Sella did not

(32:13):
take them.

Speaker 1 (32:13):
Okay.

Speaker 3 (32:14):
Selah called me yesterday and said, can you get them
up to eight?

Speaker 5 (32:17):
Five?

Speaker 1 (32:18):
No? I can't. Maybe I can't.

Speaker 3 (32:19):
I can't.

Speaker 1 (32:20):
But the point is here, go I called it. I
called what you're going to say before you said it? Right?
And I always say this to end users. People write checks.
If your numbers are point eight one a two, your
officer coming in, look, I ask twenty million. If all
my office are coming into the twelves.

Speaker 5 (32:37):
Well, guess what the market's in the twelves. The definition
of market rate is what a consumer is willing to
pay at any given point in time period, and it flectuates.

Speaker 1 (32:50):
So again, you got two offices in of eight, one,
e two. That's it.

Speaker 3 (32:57):
There was a home. There's a home. I'll tear you
off camera. They originally had it on for seventeen okay, beautiful,
now down to twelve a little under twelve. I brought
them ten three week clothes and they said, no, okay.

Speaker 1 (33:18):
And how long they own this hover?

Speaker 3 (33:21):
Seven years?

Speaker 1 (33:22):
Okay. So you have two sellers, one that doesn't have
to sell. They're not desperate, but they all say they're
not desperate.

Speaker 3 (33:30):
At some point in time.

Speaker 1 (33:33):
Either get it off your books.

Speaker 3 (33:36):
I mean, we're not talking about people that are having
problems paying the cable bill here, correct, But we're talking
about moving on from an asset class and redeploying equity. Oh,
I have one massive estate and I just realized the
debt on it is almost ten million dollars. Now that's
not a spot you want to be in.

Speaker 1 (33:58):
So the O ten million on it, asking how much eleven. Well,
too bad, you're coming out of pocket.

Speaker 3 (34:04):
They have to come out of pocket and they can't.

Speaker 1 (34:06):
Well then you, well, you refinance that house so many
times you're buried. Probably that's probably what happened, Mike, of
course it is. It's always what happens. Let's refinance, take
some money out, let's take home equity. Let's take a
second refinance. Refinance you got damn you paid the house
down for ten years. Next thing you know, you're refinancing it.

(34:27):
And okay, well we know we need money for kids,
call it, we need money for our kids college education.
Well you should have had a financial advisor that helped
you put money away for your kids college education years
ago when you had call it. You can call Ray
Foster for that one. Okay. But so we have people

(34:48):
that are hold James Ray Foster at Raymond James for
Ray Foster at Raymond James. And if you want to
reach them, go google Cindy Stumper when you'll get them
through me. Okay, let's go back. It's actually funny because
Way and I will get on social audio at times
we'll have some fun. And one guy said, like two
weeks ago, Wait, remember Cindy, no no, no way, he's

(35:11):
going he's on social Audia's Ray Foster. I'm on a
Cindy STUMPO. We're talking from two different devices, even though
we're in the same house. This guy has no idea.
He's on listening, right, He's like, you know, I'm agreen
with this Cindy Stump when I'm agreen with Ray Foster.
And then people so exactly, So two people in the
room said they're together, and the guy goes, way, they

(35:32):
are together, like together together, because he really said, wow,
maybe you two should meet in real life. Right, So
somebody said they're really together and like together together. Yeah,
like they're engaged. So the guy goes, what are you
getting married? Look at him? Right the summer, We're just
gonna We're just gonna walk. Why you keep taking me up?
By ninety five? They would go back off by ninety five,
All right, let's get back on. No, we'll stay on.

(35:53):
I've been the runaway bride for the last four years.
We can blame me four years.

Speaker 3 (35:56):
So I've been seven years.

Speaker 1 (35:58):
No, no way, And I go back to think he says eighteen.
I thought it was nineteen, but he said eighteen.

Speaker 5 (36:03):
It was a high school sweetheart, wasn't he Yeah, but
it really wasn't it was?

Speaker 3 (36:07):
It wasn't.

Speaker 4 (36:08):
No.

Speaker 3 (36:08):
Were you when he kissed him the first time?

Speaker 1 (36:10):
Oh god? I was probably thirteen fourteen. But the truth
is when he dumped me, oh.

Speaker 3 (36:16):
He dumped you.

Speaker 1 (36:16):
Oh yeah, it was eighteen heartbreaker, he told me.

Speaker 3 (36:21):
So that's why you tort you them all.

Speaker 1 (36:23):
Ye, he really said.

Speaker 2 (36:25):
It actually makes sense.

Speaker 1 (36:26):
He says, you know what, do you want to know
why I'm dumping you? I'm like, not really, because the
truth was I didn't want to break up with him
because I didn't have the heart to write, because I'd
rather you dump me then it's okay. Then I also
was pretty a girl thing is a pre I think
of stumping. I didn't here. I knew I did not
want to marry. So he did it to you before
you did it to him. I was I don't know

(36:46):
how to do that. I don't know how to fire people.
I have a big bark and no bite, right like,
you're fired, like Race says when Cindy said, you can bite, Oh,
I can stay up yep, yeah, I can take your eyebones.

Speaker 3 (36:58):
Then it's biting Cindy.

Speaker 1 (37:00):
And I feel bad afterwards. So yeah, and I apologize.
She addressed the wound. Yeah, I do. I clean it up.
But you asked the question, I'm giving you the answer.
So anyways, this guy said, so, wow, you guys are
a power couple. The truth is we deal in two
markets that we really are the if you think about it,

(37:22):
before technology, he's been in the he's been a either,
he's been a broker, financial advisor, wealth advisor. They've changed
their names a million times already, right, for thirty eight,
thirty nine years, however, and I've been in a developer
and builder for thirty seven. So right, so you put
two of us together in the same room.

Speaker 3 (37:45):
I started when I was ten.

Speaker 2 (37:46):
I was going to say.

Speaker 1 (37:49):
What No, I'm saying when you put two people like
that in the same room, Okay, you're going to for
a couple. You're in this guy's eyes, we were right.
Even though when Ray and I get home at night's
the last thing we're talking about, like, don't ask me
about my d And I'm not going to ask you
about your day because no one wants to relive that day. Okay, truthfully,
I don't want to relive it.

Speaker 4 (38:05):
Well you do, except you going like another room and
you just you talk on the phone. You're never stopped.

Speaker 1 (38:09):
You never see no, that's.

Speaker 2 (38:11):
Easy, ye.

Speaker 3 (38:13):
And then compare days.

Speaker 1 (38:14):
But you just asked me a question. Prayor yes, Ray
dump me. We moved on with our lives and we
were happy as can be. We should have never ended
up back together. I don't know how it happened. He
was too cold, I was too warm. They shake hands
over the in their fielding for kissing hig. I don't know.
This is Cindy Stump. When you listen Toughes's Nails on
w BZ News Radio ten thirty, he'll be right back

(38:36):
and welcome back to Toughest Nails on WBZ. And I'm
here with Jesse Foster and I'm here with Mike Cruise shy. Hey, Jesse,
take us out.

Speaker 4 (38:43):
I mean, I just Mike, you got to come back
next week because I'm so interested in actually finding out
this full story. I have not heard the story of
you my dad's break up, like how we came full
circle here? Will you please join us again?

Speaker 3 (38:57):
Absolutely?

Speaker 1 (38:57):
And you bring the real estate back in the game.

Speaker 3 (38:59):
Absolutely.

Speaker 1 (39:00):
Yes. Okay, that sounds like fun. So you don't know
the whole story. Bottom I'll bottom line you that your
dad and I should have never back together. Okay, that
was a freak accident. How that happened, should have never happened.
What No, we would have never made it. But anyways, people,
have a great, safe, wonderful weekend and we'll see you
next week with Jesse Foster, Mike Carucci, Carucci and Cindy

(39:20):
Stumpo every weekend. Have a great, safe weekend. This Cindy
Stumpo toughest Nails WBZ News Radio ten thirty