November 17, 2023 • 42 mins
Ever wondered why women seem to pay more for real estate? Our guest today is Rosemary Medel, an urban planner and realtor with 30 years of experience, and she's got some insider tips on how to avoid falling into that trap. She shares strategies for navigating city hall, unearthing the true value of a property beyond its 'curb appeal', and making the most of your partnership with a realtor. Rosemary's advice can help make your next real estate transaction a success, whether you're a first-time buyer or a seasoned investor.
Negotiations and permit verification can make or break a real estate deal. Rosemary lends her expertise to these complex aspects, stressing the importance of operating with integrity and full transparency. She also highlights the necessity of due diligence, ensuring that you're aware of potential future costs and the benefits your property can reap from the city. Her insights are designed to equip you with the knowledge you need to stay ahead in the tricky world of real estate transactions.
Lastly, we delve into a topic close to Rosemary's heart - the impact of homelessness on California's real estate scene. She talks candidly about the state's pros and cons, from the flourishing job market to the pressing homelessness issue. As an urban planner, she encourages listeners to voice their concerns and actively participate in community issues. To wrap up, Rosemary offers a masterclass on analyzing neighborhoods from an urban planner's perspective, promising to add another tool to your real estate arsenal. Trust us, this is an episode you can't afford to miss.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Hey guys, welcome back to another episode of
Latinos in Real Estate InvestingPodcasts, where individuals
just like you come to learn howto create wealth through real
estate investing,entrepreneurship and business
ownership.
Today's guest is RosemaryMedell.
Rosemary offers women theopportunity to learn residential
(00:20):
due diligence to save time andmoney when purchasing their
dream home.
She combines 30 years as anurban planner with land use and
development expertise, includingbeing a realtor.
She teaches women how tonavigate city hall in order to
verify what they are purchasing.
Rosemary teaches how todetermine true value of a
(00:42):
property while collaboratingwith their realtor,
renegotiating the deal or walkaway from the table.
Rosemary, welcome to Latinos inReal Estate Investing.
Speaker 2 (00:55):
Oh, martin, thank you so much.
I'm so glad to be here and havethis opportunity to share the
results of a study that wasreleased by Yale University in
2020, in January of 2020.
And they determined that womenare paying 2% more than men when
(01:16):
it comes to purchasing realestate, or they are more likely
to give a discount when sellingreal estate.
And I've read the study andit's not that women cannot
negotiate well, but I believe,based on my expertise, it's that
women do not know how todetermine the value of a
(01:38):
property.
So, unfortunately, some of themistakes that are being created
when women initially tour aproperty is they look at can I
afford it?
Yes, if the price iscommensurate with what they can
finance, sure, but if you'refalling in love with curb appeal
(02:01):
, curb appeal is just thedressing on a window, whether or
not you like what it looks like.
The second is looking at thestructure itself, the interior.
Are you falling in love withdecor, but you're missing all
the small components.
(02:23):
And then the third is notfollowing up with the
disclosures that are being givento you If your deal is accepted
.
You're not following up withthe home inspection or you're
even bypassing the homeinspection.
We saw that a lot in 2021 and22, when it was truly a buyer's
(02:44):
market and you just wanted toget the deal accepted because
the interest rates were so great, but you were missing the fine
details of what it couldpotentially cost you.
Because you were missing andnot following up on your due
diligence all those disclosuresthat are being provided to you
(03:06):
by the seller's agent.
So those things are huge and,because of my experience in the
past 30 years and seeing whatwomen have endured, or their
intimidation about going intocity hall and anyone, if you're
buying home for the first time,you're probably asking yourself
(03:29):
why do I need to go into cityhall?
My realtor is the one that'stelling me everything I need to
know, but, in actuality, you'reresponsible for following up
with your due diligence.
Speaker 1 (03:40):
So I'm really glad that you got a niche and you
like to work with women, and Ijust want to make sure that the
listeners know that these thingsalso apply to males.
So, gentlemen, stay with usbecause she's going to share
some information that you canalso utilize to your advantage.
But I want to ask you aquestion.
(04:02):
You came in with the statementof a study was done that women
historically pay 2% more thantheir male counterpart as it
pertains to real estate.
Can you be more specific onthat?
Can you say that?
We talked about off air alittle bit, the three common
(04:24):
mistakes and I think you kind oftouched on it three mistakes
that people make when,specifically, you mentioned
women.
Women make when they'repurchasing a home.
Tell me about this study.
Why does the study say thatwomen are paying 2% more than
males in transactions?
Speaker 2 (04:39):
So the Yale Business School released the study and
they were talking about what arethe factors that are considered
when women are looking at thepurchasing of property,
especially for the first timeYou're a novice.
Certainly the number onefactors could you afford this
home?
And then the second things, theother things that women
(05:01):
typically are burdened with orchoose are they're going to be a
single mom, so they have toconsider school districts.
The factor for women is safety.
Does the home have fencing?
Does the home have all thesedifferent things that a woman
(05:23):
would not choose to install orwants to reduce the cost of
ownership?
Another thing is close tofamily or services, because the
male counterpart they typicallyknow how to repair things on
their own, so they're alreadysaving money.
(05:44):
They're more willing to notworry about the school district
that they're in unless they're atrue investor and they realize
that's an important factor.
I'm going to flip this property.
That's a selling point for me.
So their motivation is different.
Whereas a woman may want tohave a home that already has all
(06:06):
these improvements move inready if you will.
I don't want to paint, I don'twant to have to replace flooring
, I don't want to do all thesethings and they have this
checklist that they are paying apremium for, whereas the male
counterpart is not as worriedabout that because they are more
(06:28):
comfortable moving into afixer-upper.
Do that over time or take thatas an investment, do it quickly
and sell.
So women look at a purchase asa long-term investment.
Unless you're a single womanand you have no children, then,
yes, you can not be asparticular, but look at the
(06:51):
property more as an investment.
And let's face it, more andmore women are learning how to
make home improvementsthemselves, so that's saving
them money when they go to sell.
The study also showed thatwomen will concede some of the
deal because, by nature, justmuch more compassionate, they
(07:17):
want to get sold.
If they're selling to a family,they're empathetic.
Get all these factors thatwomen that are wonderful
qualities to have sometimes arenot as good in business, right.
So if we looked at a realestate transaction as a business
(07:38):
venture rather than setting upa home, right, especially when
you go to sell, then you startto realize, okay, I need to
collaborate more with my realtorand know what I will concede
and a deal or reduce and what Iwill not, and this is the price
(08:02):
point that I need to come out ofthis deal.
With the same token, if you'relooking at a property and you
start following up on the homeinspection right Now, we know
with the home inspection youcan't open up walls, so you
can't verify.
Well, the plumbing was replaced,was re-piped, four years ago
(08:23):
and that's a disclosure, okay.
But do you know how to verifythat?
By going to a buildingdepartment at City Hall, right?
So those are the things thatand it takes time to do that you
have to.
It's gonna cost you.
There's a dollar pointassociated with it because you
(08:44):
have to take time off of work todo that.
So if you do go to City Hall,you wanna make sure that you are
being as efficient as possibleand know which departments to go
to have all your disclosuresand then know the impact of what
you find out, right.
So you're either going to moveforward with the deal or you
(09:04):
realize mechanical, electricalplumbing, there's some issues.
This is gonna cost me thousandsof dollars.
I need to walk away.
I don't care if it's beautifulhome.
The reality of it is it's not agood deal.
Speaker 1 (09:18):
So a couple of things because I'm a bit confusing
your statements.
So at the beginning you said,hey, a woman would pay more
because of safety, maybe thepaint and things of that nature,
which makes sense.
But then I guess the studyimplies that the women buying
those properties are singlewomen, because if there is a, I
(09:38):
guess some type of a male or ahusband in the picture would it
be the same perception.
I'm just curious, because youknow of what you just said about
the study.
I agree with the statement ofthe, because I have a wife, so I
know how she's wired, so I doagree with and she's my realtor
(10:02):
too.
So she plays buyers or write aletter and she's like let's sell
this one to this family.
Because I'm like, babe, I don'twanna see that.
Don't show me the letters, justshow me the numbers, just show
me the persona, don't show methat.
I don't wanna see it.
You don't want the emotionalpart of it too.
Don't show me that.
(10:22):
Like, I just wanna know whatyou know.
I could think of a story of afamily that they were moving,
they were military and theywrote me a letter.
They were a property we wereflipping last year.
They wrote me a letter in early22, when the market was still
hot.
As you showed me this letter,my babe, just, can they close?
What's the financing we have tocommit the letter I would like?
(10:43):
This is great, all businessright.
I got a lot of dough, so I getit.
Let me ask you this question,though you mentioned about the
plumbing and the things going tocity hall.
Sometimes a seller would fix apipe themselves, right, they
might fix something themselvesand they don't necessarily go
get a permit, right.
You know, I know some citiesare real sticklers about that.
(11:06):
You got to fix this leaky sink,to fix a thing.
Come on, you gotta be kiddingme.
I live here.
I'm not gonna go there and payyou $60, so I could go buy a
piece of plastic and Home Depotand put it in.
Some cities are just ridiculous.
So let's just say that ahomeowner is honest.
They're not as person andthey're like yeah, we replaced,
we put pecs here, we put pecsand we went from the basement up
(11:28):
, but you can't verify.
What advice are you giving to abuyer that can't verify that
kind of stuff in that duediligence, in terms of as it
pertains to the city?
Speaker 2 (11:39):
You know you're going to be required to have
homeowners insurance and we knowthat insurance companies are
very good at verifying what'sgonna be covered and what's not.
So let's just say someone says,well, I upgraded the electrical
on the house, so are this room?
It's like okay, did you do itwith a licensed electrician?
(12:04):
Right Now that starts to kindof back you up, that you hired
the appropriate person.
Not I did it myself, because Iwatched a video on YouTube and
it's so easy and I saved myself$3,000.
That's wonderful, but now I'mgonna take on the risk.
So that's where you need to becareful.
(12:26):
You could say, okay, you didthat, but I need you, seller, to
bring in an electrician just toverify your work.
And that electrician islicensed.
That proves that they have theappropriate credentials to do
(12:47):
the work or to evaluate the workthat was done.
And that starts to reassure youthat, okay, this is paperwork
that I can show the insurancecompany to make sure if there is
a fire or something, a hazardthat occurs in the future, I can
demonstrate that I dideverything that was possible to
(13:12):
make sure that the work was doneproperly.
And, yes, you should be able tocover my claim should something
happen.
So in homeownership or inpurchasing in any deal, as you
know, you're trying to reducethat level of risk, and
electrical is a big ticket item,right, it's always about health
(13:35):
and safety.
Building departments across thenation.
They will fight tooth and nailbecause if they sign off on a
plan, they are putting the cityat risk.
So that's why there is such apush to what things are you
going to get permitted and whatthings are not?
(13:55):
Certainly, replacing a sink,faucets, a simple plumbing yes,
probably you could do ityourself.
But if you're replacing a mainline or if you're doing
connections that touch the sewerline, now you need to get the
experts in there, because it'snot about saving money, it's
(14:19):
about protecting your investment.
And when you go to purchase,then that's the whole reason.
What are the disclosures?
What have you done?
What can I verify to reduce myrisk?
Because I'm putting, I'm makingthis major purchase.
People wouldn't spend that kindof money.
(14:40):
Probably the only time would bepurchasing a home.
Right, so you need to protectthat huge investment and you
always need to maintain healthand safety.
Speaker 1 (14:50):
Do you think that there is a gender gap as it
pertains to real estate andtransaction and transacting in
real estate?
Speaker 2 (14:58):
Yeah, and that's what the Yale study did speak to.
There is that gender gapbecause of what motivates the
female buyer as opposed to themale buyer.
So, as I stated, female buyerslike you alluded to that.
Your wife, even being aprofessional realtor, knows that
the importance of somebody sentyou a letter.
(15:21):
Now they're making you a partof the emotional part of the
transaction, right, cause wefall in love with stories.
Oh, I don't know it really it'sthis young family and if you
just are looking at paperworkthen, like you said, I'm looking
.
Can they close, can they retainthis property, especially if
(15:45):
you're holding back a note, allthese things?
And we know that sometimes if awoman's going to purchase and
her name is on that, would shebe more likely to get as good a
deal if it was a male?
On that, possibly, but itreally depends on how good a
(16:06):
business awareness of the buyerhas, regardless if they're male
or female, right?
So?
And that's where you can startto negotiate a better deal once
you can verify true value,because you can call them on
(16:26):
that right.
Yes, you did an upgrade, but youknow what.
I went to City Hall and I canverify the permits that you said
.
So now you want me to assumemore risk because you want me to
take your word for it that itwas all done and you have added
a value to it.
However, my insurance companydoes not care that you did that
(16:47):
upgrade because I can't verifyit with permits the city someone
could complain anythingexterior additions done by a
owner without permits, you knowthe city could have you demo it
because it doesn't comply withcode.
So those are all the thingsthat female buyers as well as
(17:10):
male buyers need to be aware of,what they're purchasing right
and they anticipate.
Could I take this financial hitif I had to remove it or repair
it or have it done properly bythe licensed professionals?
Speaker 1 (17:29):
From a real tourist perspective.
I want to get, from yourperspective, right.
So when you encounter thesekinds of things and you're
negotiating in this kind of way,like hey, you did this and
you're saying did this, butthere's no permits or we can't
verify it, what is thatexperience like in that
negotiation?
I'm just curious with anexperience, let's just say, with
(17:50):
a flipper, because I'm hearingyou and I'm kind of putting
myself on the seller sidebecause I sell out properties
and I will tell you, if I get aseller it's like, hey, this is,
I'm gonna say, just buy, justnext.
Right To me, it's just an asset, right To me.
It's just, I don't get enamoredwith houses, they're just to me,
(18:13):
I buy them, I fix them, I sellthem, I buy them, I fix them, I
rent them.
I buy them, rent them for fiveyears, two years, three years,
and then sell them, Like I just,I'm just, I'm just transacting
all the time.
So I'm just curious what yourexperience is like.
What is that like on that sidewhen you're telling a seller,
hey, man, you didn't do thisthis way and you know what is
(18:39):
the typical response that youget from a seller?
Speaker 2 (18:42):
They were were certainly would say.
You know it depends theintegrity of the individual and
at some point you need toprovide full disclosures.
We know in real estate, failureto do that we'll get you in a
lawsuit, right?
So we are in the business asfiduciaries to represent our
(19:03):
client well and then to alsowork in integrity with who's
going to purchase it, hence thedisclosures.
So you give the disclosures.
No, the plumbing has not beenupdated since the time of
construction.
Well, how old is your home?
Well, it's 20 years old.
(19:24):
All, right, you buyer, you candetermine whether or not.
Can I live with that or do Ineed to add that as a future
cost Could be next year, couldbe in 10 more years, but that is
the risk of being a buyer.
So, making buyers moreintelligent about that risk
(19:44):
factor, right, creating thisawareness, it's all about that.
So I would tell my sellers it'slike you need to disclose to me
everything that you've done andwe have it on paper.
Nothing is being held back andthey can take your work for it.
(20:06):
They can go to city hall andverify what they can and then
they determine the buyer, thelevel of risk they're willing to
assume.
Right, so we know, the mostimportant thing is location.
Then what are the values thatthis particular city brings to
(20:26):
this?
Property, services, parks,schools, access to
transportation, all these things?
That is up to the buyer to say.
Is this a good deal for me?
Right, then they run theirnumbers, but always we want to
operate in integrity and let ourclients, our sellers, know just
(20:51):
be honest with me, whateverthat is, because if I'm
representing you, I need to beable to disclose everything we
can and allow the buyer to maketheir choices based on their
level of risk.
Speaker 1 (21:07):
I'm curious.
I have a question for you.
On the due diligence side,right Probably advise your
client, your female counterpart,take a look.
They're saying this says thison the seller's disclosure on
the SDA, not the SDA seller'sdisclosure, whatever my wife
calls it something.
(21:29):
Yeah, that thing, it's sopainful for me because it takes
so, they're so long and they'reso, it's so tedious and I have a
lot of property.
So I don't know.
A lot of times I don't know andI don't remember.
So when we're buying a flip, webuy a fix, we fix it, boom,
contracts are in there, we'reout of there, and a lot of times
I don't know.
I really generally don't.
(21:49):
I don't know.
I fix, I put a new kitchen sink,I put a new sink, I put a new
counter, I put new floors, Ipaint it, I put new windows.
You could see it obvious.
But a lot of times I don't know.
So I'm curious to what happenswhen, like, out of 10 people
that go and check right, likesay, you got, you recommend, you
(22:10):
make a recommendation, hey, goto the city and just confirm
that indeed, this was done.
Just, I'm just curious, this isa curious number 10 people.
You go they say, hey, we didthis and they go to city hall.
People go to city hall.
How many, how much of?
What's the percentage?
In your opinion, from yourexperience, that can actually be
(22:31):
verified through permitting.
Speaker 2 (22:38):
At least 10 to 20% people because of the price
point that they're spending,especially in California.
They, you better know, and allthe time.
Speaker 1 (22:51):
So 10 to 20% have permits.
You can verify that they pulledthe permit.
That's what I'm asking.
Speaker 2 (22:58):
Oh yeah, I think.
Yes, it really depends on theage of the home.
So building departments retainbuilding plans and permits
probably for about 10, maybe 15years.
It really depends on how largethe cities are, and so you can
(23:22):
verify that there are some workthat can't be verified.
However, you can get an afterthe fact permit.
So, yes, you can do all that.
I would say the most importantthing is, if you're buying a
home because of it's squarefootage and there's been an
(23:45):
addition done that one, that one, that's the big one that adds
to the price point, right,you're paying for that square
footage, yeah, correct, and youbetter verify that that was done
with, because the city can makeyou demo it.
And now you've just paid aquarter of a million for that
huge addition and it's goneright.
(24:07):
And I don't know if you'veencountered it on the East Coast
.
I mean, you have structuresthat are certainly much older
than the West Coast, but thenon-conformity of setbacks,
those are things that get veryspecific, right.
But if you're flipping, you'reprobably not doing additions,
(24:31):
you're doing just aestheticimprovements, landscaping, paint
, you're in, you're out.
But for those that are makingmajor purchases or purchasing
for long-term, then that's wherethe due diligence gets critical
, because you could be on a halfacre lot and you have certain
(24:54):
setbacks and you go oh well,yeah, I want to add on to that
and I'm going to maintain thissetback.
Really, are you sure you coulddo that?
Because that is something thatyou want to do, but you better
verify it, because if you can't,that may cause you to walk away
from the table right, thatmakes sense.
Speaker 1 (25:12):
Yes, yes, that makes a lot of sense.
So you're in California rightnow, right?
Yes, you're in California,perfect.
This is my final question toyou what is the state of the
market in California and here inthe fall of 2023, as it
pertains just to the real estate?
How is the market?
How do you see it?
Are you seeing our pricesactually softening there?
Speaker 2 (25:35):
People still want to live in California.
We pay for our weather.
Speaker 1 (25:41):
You ain't not kidding .
I was just talking to someone.
They were like yeah, weCalifornia a great place and got
all these issues going on inCalifornia, but the weather is
great.
And we're like weather is great, but you're getting taxed.
You're going to kill the taxes,the weather is great.
Speaker 2 (25:57):
Well, but look what our taxes cover, right?
We have great infrastructure.
We have great roads, those costimprovements, the open spaces
that we value so much.
So, yes, so our propertiescontinue to go up?
Yep, they are.
They're slowly going back upand as soon as interest rates
(26:18):
change, it's going to go up evenfurther, right?
Right?
So Our state is so large youcan really pit your price point
of where you want to live, butthe job market is certainly
going to determine that.
So we're a commuter state,because you keep moving out to
the suburbs but you're workingin LA.
(26:40):
So that's the value that itbrings Our job economy, our
weather, our services.
You can be in the ocean in anhour, or you can be up in the
mountains in an hour, or surfingwhatever you want.
One of the most beautiful thingsabout our state is our
(27:02):
diversity in culture.
We have just like New York, Imean, just tremendous food
choices, and to hear justmultiple languages being spoken
is I love it.
That is really a benefit.
But certainly the housingchoices, yes, we still have a
(27:24):
shortage.
Our largest group still are thebaby boomers and we're not
selling our home.
So what is available?
So we look at and, as you know,the success of the city and its
growth is how many buildingpermits are being issued for new
construction.
So is that happening inCalifornia?
(27:46):
Yes, lots of homes are beingdeveloped in Lin, empire,
northern Cal, central California.
All of that is still happening.
So there is a demand for peopleto want to live in California,
to work in California.
And are people moving to otherstates?
(28:06):
Sure, there are.
It's always happening, right,and you should try it.
But if you own property inCalifornia and you want to try
living somewhere else, I tell myclients don't, sell, lease it,
try it out and then come backbecause you won't be able to
afford to buy into Californiaagain.
Right, if you own real estate.
Speaker 1 (28:27):
But I want to just talk about really quick, because
you just said all the wonderfulthings about California.
California is a wonderful state.
I don't disagree with you.
I agree with everything yousaid.
But what I have been seeing inmy experience in California that
you have a big problem withyour homeless issue and that
(28:48):
drags down.
That's big problem.
I'm speaking as an investor nowand that's a big problem.
Why would I take my money andinvest my money in real estate,
or even in anything, when youhave such a major homeless
problem and the government isdoing Jack's jitterly squat
(29:08):
about it and just like, whatabout the citizens, right?
So what impact is that havingon real estate, if any, from
your perspective as a realtor?
Speaker 2 (29:20):
Certainly we have a major problem all along the West
Coast because of the weather isso conducive to people sleeping
outside.
There are programs that arebeing implemented, certainly not
fast enough.
We have from the planning.
(29:41):
We provide affordable housingin development.
So we have inclusionary housingrequirements in various states
and various cities in Californiaand so, as development occurs,
we are getting people affordablehousing.
But it's not really addressingthe socialist issue of
(30:04):
homelessness, because we have avariety of factors.
Some is economic, some aremental, some are drug use.
So how do you address all ofthose all at once?
So, as a realtor, you can't.
The only way you could do it isyou people need to be involved
in their communities, in theircities, pressuring the decision
(30:30):
makers to what are you doing toaddress the homeless issue in
our city?
Right, you can't handle thewhole state because the problem
is too massive.
So every city has to take ontheir particular issues and that
responsibility.
Now I would advise my clients asyou invest in a city, then you
(30:54):
need to be truly invested inyour community.
You need to get involved andfind out what can you contribute
to your city, the expertisebeing involved in the public
hearing processes.
Let your voice be heard.
Now, what can be done?
(31:15):
When you move into a city andyou're seeing homelessness or
you're seeing debris or you'reseeing a person not taking care
of their property, you contactcode enforcement right, and they
need to know who you are,because the people in a
community and a city start todetermine the values of a city,
(31:40):
what we will tolerate, what wewill not tolerate, and you have
to constantly.
Your voice has to be heard bythe decision makers.
So is that a problem that willgo away soon?
No, are we doing things aboutit?
Yes, but it's an issue thatgoes way beyond real estate.
(32:02):
Our job, and we would tell ourclient, is how do I protect my
investment?
But it does impact.
I show me steps.
Speaker 1 (32:09):
Those ways beyond real estate, but it does impact
real estate to use.
You made a statement A ifyou're an investor, your voice
should be heard.
I agree with that.
Where I have big investments,my voice is heard.
I know the mayors, I know theplayers.
No, I know I schedule meetingswith mayors and meet with mayors
and city councils and all thatgood stuff.
However, before right, so if Iam the CEO of the state or I am
(32:36):
the CEO of a company and I wantto attract money there, right,
what is being done to attract?
Because if there is thisproblem and it's not being
addressed, I'm not going there.
I'm not taking.
This is just a reality of life,rosemary.
I'm not taking my capital there.
It sounds great Everything yousaid sounds great, but the truth
(32:58):
of the matter is I'm looking towhere can I deploy my capital
that don't have?
Am I going to deploy my capitalto the city that has this
problem, or am I going to deploymy capital to a city that
doesn't have this problem?
And the mere fact that I'mdeploying my capital to a city,
that is my value, because myvalue me deploying my capital
brings jobs and provides housingand provides and in my space I
(33:21):
like to play in the affordablehousing space, so I like to
create affordable living forpeople, because there's a crisis
in our country for that.
So why would I go and put mymoney there, versus some city
that doesn't have that issue orthat's dealing with the issue
head on or didn't let the issueget to that point?
So I'm talking about asituation where, hey, if I want
(33:43):
to take my money, why should I?
Why should I take my moneythere when you have this problem
?
And, yes, I could be part ofthe solution?
But I'm talking from a strictlylogical, as an entrepreneur, as
a businessman.
Hey, strictly logical, whyshould I take my money there and
then have to deal with that?
And I know what happens withthis.
(34:04):
Like, listen, we're both, weboth know what happens.
I invest my money in a city.
All of a sudden, there's ahomeless problem.
All of a sudden, do you look atSeattle?
Right, there's pockets inSeattle where it's just a, it's
a nightmare there.
All of a sudden, there's issueswith homelessness.
Guess what happens?
All of a sudden, the quality ofresonance that I can qualify
(34:25):
that want to move it.
I'm not gonna get the nurses,I'm not gonna get the working
class, I'm not gonna get the,the single working-class mom,
that professional, they're notgonna feel safe going there.
So the quality of my resonancegoes down, the value of my
property goes down.
I have to bring my rents downbecause I got to bring a
different type of tenant,different type of resident in
there.
So it creates a night, itcreates a, it creates a problem
and it does impact real estate.
(34:45):
It absolutely does like no onewants to come home and have to
feel unsafe Seeing a crazy localthere, you know, shooting up or
all drunk and people campingout in front of your house Like
it's embarrassing for me to belike hey Rose, come to my house
for dinner and you got to walkover caps and stuff like that.
Speaker 2 (35:06):
Yeah, you know what I mean.
Yeah, that's that's where.
I know exactly what you mean.
Sure, and that's you know, inyour conversations with city
officials, the decision-makersthey are.
If you're a large developer,they are courting you as well.
They want you to invest intheir city.
But part of that negotiation isWell, how can you assure me
(35:30):
Right, if I, especially you know, from ground up construction,
right part in California part ofyour fees are going Towards
those services, those emergencyservices, police, fire, all
those things.
It's like okay, I'm bringing inthis major investment, it's
going to address your housingrequirement numbers and this is
(35:53):
the value I bring.
I'm bringing more people to beable to utilize all your retail
services and I'm contributing alot.
What are you providing for me?
And that's part of thenegotiations that need to be
done.
Perhaps it's part of havingon-site security, someone at the
(36:13):
door, a doorman, you know.
All these things are on-siteparking to reduce the
requirement of having to walk,you know, a block or so to get
to your home.
One of the things that wecertainly require in California
is you have to have on-siteparking for your Development.
But if you start to get morepeople living there, then
(36:37):
certainly you're going to useall that parking.
Now you yeah, you have to parkon the street right.
So those are problems thatpeople are creating, but at the
time of the initial approvalthey are meeting the required
parking standards.
But yes, if you can see how itjust keeps more and more complex
, the issue gets.
Speaker 1 (36:56):
It gets complicated, yeah, it gets it does and
California solution such abeautiful state.
You know, I look at the city ofSan Diego.
I love that city.
Oh yeah, I went there in 2004and, man, I fell in love with
that city.
I did that drive, that therewas a drive.
You you see it in the moviesand you're driving by the ocean
and you see the ocean Right overthe mountain on one side and I
(37:20):
crossed over.
We crossed over to Mexico, mywife and I, when we were there
in 04.
It's such a beautiful city andI hear I have, I've seen videos
and I you can never believeEverything you see, but I've
seen videos and I spoken topeople.
They're like mad San Diego.
It's not that anymore with thishomeland, with some of the
homeless issues that's happeningthere.
Speaker 2 (37:40):
Yeah, like I said, the entire, you know, west Coast
is experiencing that Because ofits beauty, its weather, where
people you know they're probablydon't have a big homeless issue
in Minnesota because it's theweather is not, may not be
conducive.
Speaker 1 (37:57):
We have in New York City and New York the weather's
not conducive, right, so there'san issue that's a whole other
thing.
But, rose, yeah, thank you somuch.
It's been my pleasure to haveyou here on the show.
Thank you so much for coming on.
Oh, there it's us having this,this wonderful conversation
about your state and how peoplecan avoid Challenges.
(38:19):
We're about to go into theuntitled round where I'm gonna
ask you a series of questionsyou you can think, you can
justify If you want.
Whatever, however you want, besure they could be long,
whatever you want, are you readyto play?
Speaker 2 (38:29):
They're all play.
Speaker 1 (38:30):
Okay, real estate is Financial freedom.
My advice to all women isinvest your money.
I've always wanted to travel to.
Italy never underestimate thepower of Determination.
The market right now is stillexciting.
I think the president right nowis still exciting, family or
(38:55):
business.
Speaker 2 (38:56):
Ah, family yeah family Amelia.
Speaker 1 (39:00):
Amelia more time or more money, oh, oh, more time
wine or beer in California wine.
You got the great gossip, greatwinery.
Speaker 2 (39:11):
We have great wine.
Speaker 1 (39:13):
Book smart or street smart, both success or happiness
both.
Speaker 2 (39:21):
Happiness does make you feel successful, provided
that you are also doing booksmart and you're learning from
your street smarts.
There's always a A lesson right.
Sometimes you win, sometimesyou learn angry client or angry
angry co-worker.
Oh, co-worker.
Speaker 1 (39:45):
Thank you so much, rosemary.
If people want, thank you, butwhat did they get a hold of you?
Connect with you?
How can they find you?
Are you if you're on socialmedia?
Where can they find you?
Where can they get a hold ofyou?
Maybe they're looking to buy aproperty in California.
Talk to an agent, maybe learnmore from you.
How do they go about that?
Speaker 2 (40:02):
Yeah, absolutely.
They can certainly Go to mywebsite at rosemary medallcom.
I'm on Instagram, but they wantto connect with me because I've
created a masterclass that'llteach you how to Look at a
neighborhood and the way anurban planner would, so that
(40:23):
you're not missing.
So you great this Awarenessright now.
I want to have that as my giftto your listeners, who are all,
I'm sure, just trying to getthat first property or their
10th, but then I believe it'llbe a value to them and, where
they can, I'll give you the link.
I'll give you the link and youcan put it on your show notes.
Speaker 1 (40:44):
Okay, so we'll make sure we put that on the show
notes.
Guys, make sure you guys lookat you, look that up on the show
notes and that's rosemarymedallcom and Connect with her.
You said you're on social media, you're an Instagram and I'm on
Instagram, facebook, linkedinokay, so you can look her up.
And rosemary, thank you so muchfor coming on the show really
(41:05):
Appreciate it was an honor tohave you.
Speaker 2 (41:07):
Thank you so much, really appreciate it you.
Hey guys, welcome back to another episode of
Latinos in Real Estate InvestingPodcasts, where individuals
just like you come to learn howto create wealth through real
estate investing,entrepreneurship and business
ownership.
Today's guest is RosemaryMedell.
Rosemary offers women theopportunity to learn residential
(00:20):
due diligence to save time andmoney when purchasing their
dream home.
She combines 30 years as anurban planner with land use and
development expertise, includingbeing a realtor.
She teaches women how tonavigate city hall in order to
verify what they are purchasing.
Rosemary teaches how todetermine true value of a
(00:42):
property while collaboratingwith their realtor,
renegotiating the deal or walkaway from the table.
Rosemary, welcome to Latinos inReal Estate Investing.
Speaker 2 (00:55):
Oh, martin, thank you so much.
I'm so glad to be here and havethis opportunity to share the
results of a study that wasreleased by Yale University in
2020, in January of 2020.
And they determined that womenare paying 2% more than men when
(01:16):
it comes to purchasing realestate, or they are more likely
to give a discount when sellingreal estate.
And I've read the study andit's not that women cannot
negotiate well, but I believe,based on my expertise, it's that
women do not know how todetermine the value of a
(01:38):
property.
So, unfortunately, some of themistakes that are being created
when women initially tour aproperty is they look at can I
afford it?
Yes, if the price iscommensurate with what they can
finance, sure, but if you'refalling in love with curb appeal
(02:01):
, curb appeal is just thedressing on a window, whether or
not you like what it looks like.
The second is looking at thestructure itself, the interior.
Are you falling in love withdecor, but you're missing all
the small components.
(02:23):
And then the third is notfollowing up with the
disclosures that are being givento you If your deal is accepted
.
You're not following up withthe home inspection or you're
even bypassing the homeinspection.
We saw that a lot in 2021 and22, when it was truly a buyer's
(02:44):
market and you just wanted toget the deal accepted because
the interest rates were so great, but you were missing the fine
details of what it couldpotentially cost you.
Because you were missing andnot following up on your due
diligence all those disclosuresthat are being provided to you
(03:06):
by the seller's agent.
So those things are huge and,because of my experience in the
past 30 years and seeing whatwomen have endured, or their
intimidation about going intocity hall and anyone, if you're
buying home for the first time,you're probably asking yourself
(03:29):
why do I need to go into cityhall?
My realtor is the one that'stelling me everything I need to
know, but, in actuality, you'reresponsible for following up
with your due diligence.
Speaker 1 (03:40):
So I'm really glad that you got a niche and you
like to work with women, and Ijust want to make sure that the
listeners know that these thingsalso apply to males.
So, gentlemen, stay with usbecause she's going to share
some information that you canalso utilize to your advantage.
But I want to ask you aquestion.
(04:02):
You came in with the statementof a study was done that women
historically pay 2% more thantheir male counterpart as it
pertains to real estate.
Can you be more specific onthat?
Can you say that?
We talked about off air alittle bit, the three common
(04:24):
mistakes and I think you kind oftouched on it three mistakes
that people make when,specifically, you mentioned
women.
Women make when they'repurchasing a home.
Tell me about this study.
Why does the study say thatwomen are paying 2% more than
males in transactions?
Speaker 2 (04:39):
So the Yale Business School released the study and
they were talking about what arethe factors that are considered
when women are looking at thepurchasing of property,
especially for the first timeYou're a novice.
Certainly the number onefactors could you afford this
home?
And then the second things, theother things that women
(05:01):
typically are burdened with orchoose are they're going to be a
single mom, so they have toconsider school districts.
The factor for women is safety.
Does the home have fencing?
Does the home have all thesedifferent things that a woman
(05:23):
would not choose to install orwants to reduce the cost of
ownership?
Another thing is close tofamily or services, because the
male counterpart they typicallyknow how to repair things on
their own, so they're alreadysaving money.
(05:44):
They're more willing to notworry about the school district
that they're in unless they're atrue investor and they realize
that's an important factor.
I'm going to flip this property.
That's a selling point for me.
So their motivation is different.
Whereas a woman may want tohave a home that already has all
(06:06):
these improvements move inready if you will.
I don't want to paint, I don'twant to have to replace flooring
, I don't want to do all thesethings and they have this
checklist that they are paying apremium for, whereas the male
counterpart is not as worriedabout that because they are more
(06:28):
comfortable moving into afixer-upper.
Do that over time or take thatas an investment, do it quickly
and sell.
So women look at a purchase asa long-term investment.
Unless you're a single womanand you have no children, then,
yes, you can not be asparticular, but look at the
(06:51):
property more as an investment.
And let's face it, more andmore women are learning how to
make home improvementsthemselves, so that's saving
them money when they go to sell.
The study also showed thatwomen will concede some of the
deal because, by nature, justmuch more compassionate, they
(07:17):
want to get sold.
If they're selling to a family,they're empathetic.
Get all these factors thatwomen that are wonderful
qualities to have sometimes arenot as good in business, right.
So if we looked at a realestate transaction as a business
(07:38):
venture rather than setting upa home, right, especially when
you go to sell, then you startto realize, okay, I need to
collaborate more with my realtorand know what I will concede
and a deal or reduce and what Iwill not, and this is the price
(08:02):
point that I need to come out ofthis deal.
With the same token, if you'relooking at a property and you
start following up on the homeinspection right Now, we know
with the home inspection youcan't open up walls, so you
can't verify.
Well, the plumbing was replaced,was re-piped, four years ago
(08:23):
and that's a disclosure, okay.
But do you know how to verifythat?
By going to a buildingdepartment at City Hall, right?
So those are the things thatand it takes time to do that you
have to.
It's gonna cost you.
There's a dollar pointassociated with it because you
(08:44):
have to take time off of work todo that.
So if you do go to City Hall,you wanna make sure that you are
being as efficient as possibleand know which departments to go
to have all your disclosuresand then know the impact of what
you find out, right.
So you're either going to moveforward with the deal or you
(09:04):
realize mechanical, electricalplumbing, there's some issues.
This is gonna cost me thousandsof dollars.
I need to walk away.
I don't care if it's beautifulhome.
The reality of it is it's not agood deal.
Speaker 1 (09:18):
So a couple of things because I'm a bit confusing
your statements.
So at the beginning you said,hey, a woman would pay more
because of safety, maybe thepaint and things of that nature,
which makes sense.
But then I guess the studyimplies that the women buying
those properties are singlewomen, because if there is a, I
(09:38):
guess some type of a male or ahusband in the picture would it
be the same perception.
I'm just curious, because youknow of what you just said about
the study.
I agree with the statement ofthe, because I have a wife, so I
know how she's wired, so I doagree with and she's my realtor
(10:02):
too.
So she plays buyers or write aletter and she's like let's sell
this one to this family.
Because I'm like, babe, I don'twanna see that.
Don't show me the letters, justshow me the numbers, just show
me the persona, don't show methat.
I don't wanna see it.
You don't want the emotionalpart of it too.
Don't show me that.
(10:22):
Like, I just wanna know whatyou know.
I could think of a story of afamily that they were moving,
they were military and theywrote me a letter.
They were a property we wereflipping last year.
They wrote me a letter in early22, when the market was still
hot.
As you showed me this letter,my babe, just, can they close?
What's the financing we have tocommit the letter I would like?
(10:43):
This is great, all businessright.
I got a lot of dough, so I getit.
Let me ask you this question,though you mentioned about the
plumbing and the things going tocity hall.
Sometimes a seller would fix apipe themselves, right, they
might fix something themselvesand they don't necessarily go
get a permit, right.
You know, I know some citiesare real sticklers about that.
(11:06):
You got to fix this leaky sink,to fix a thing.
Come on, you gotta be kiddingme.
I live here.
I'm not gonna go there and payyou $60, so I could go buy a
piece of plastic and Home Depotand put it in.
Some cities are just ridiculous.
So let's just say that ahomeowner is honest.
They're not as person andthey're like yeah, we replaced,
we put pecs here, we put pecsand we went from the basement up
(11:28):
, but you can't verify.
What advice are you giving to abuyer that can't verify that
kind of stuff in that duediligence, in terms of as it
pertains to the city?
Speaker 2 (11:39):
You know you're going to be required to have
homeowners insurance and we knowthat insurance companies are
very good at verifying what'sgonna be covered and what's not.
So let's just say someone says,well, I upgraded the electrical
on the house, so are this room?
It's like okay, did you do itwith a licensed electrician?
(12:04):
Right Now that starts to kindof back you up, that you hired
the appropriate person.
Not I did it myself, because Iwatched a video on YouTube and
it's so easy and I saved myself$3,000.
That's wonderful, but now I'mgonna take on the risk.
So that's where you need to becareful.
(12:26):
You could say, okay, you didthat, but I need you, seller, to
bring in an electrician just toverify your work.
And that electrician islicensed.
That proves that they have theappropriate credentials to do
(12:47):
the work or to evaluate the workthat was done.
And that starts to reassure youthat, okay, this is paperwork
that I can show the insurancecompany to make sure if there is
a fire or something, a hazardthat occurs in the future, I can
demonstrate that I dideverything that was possible to
(13:12):
make sure that the work was doneproperly.
And, yes, you should be able tocover my claim should something
happen.
So in homeownership or inpurchasing in any deal, as you
know, you're trying to reducethat level of risk, and
electrical is a big ticket item,right, it's always about health
(13:35):
and safety.
Building departments across thenation.
They will fight tooth and nailbecause if they sign off on a
plan, they are putting the cityat risk.
So that's why there is such apush to what things are you
going to get permitted and whatthings are not?
(13:55):
Certainly, replacing a sink,faucets, a simple plumbing yes,
probably you could do ityourself.
But if you're replacing a mainline or if you're doing
connections that touch the sewerline, now you need to get the
experts in there, because it'snot about saving money, it's
(14:19):
about protecting your investment.
And when you go to purchase,then that's the whole reason.
What are the disclosures?
What have you done?
What can I verify to reduce myrisk?
Because I'm putting, I'm makingthis major purchase.
People wouldn't spend that kindof money.
(14:40):
Probably the only time would bepurchasing a home.
Right, so you need to protectthat huge investment and you
always need to maintain healthand safety.
Speaker 1 (14:50):
Do you think that there is a gender gap as it
pertains to real estate andtransaction and transacting in
real estate?
Speaker 2 (14:58):
Yeah, and that's what the Yale study did speak to.
There is that gender gapbecause of what motivates the
female buyer as opposed to themale buyer.
So, as I stated, female buyerslike you alluded to that.
Your wife, even being aprofessional realtor, knows that
the importance of somebody sentyou a letter.
(15:21):
Now they're making you a partof the emotional part of the
transaction, right, cause wefall in love with stories.
Oh, I don't know it really it'sthis young family and if you
just are looking at paperworkthen, like you said, I'm looking
.
Can they close, can they retainthis property, especially if
(15:45):
you're holding back a note, allthese things?
And we know that sometimes if awoman's going to purchase and
her name is on that, would shebe more likely to get as good a
deal if it was a male?
On that, possibly, but itreally depends on how good a
(16:06):
business awareness of the buyerhas, regardless if they're male
or female, right?
So?
And that's where you can startto negotiate a better deal once
you can verify true value,because you can call them on
(16:26):
that right.
Yes, you did an upgrade, but youknow what.
I went to City Hall and I canverify the permits that you said
.
So now you want me to assumemore risk because you want me to
take your word for it that itwas all done and you have added
a value to it.
However, my insurance companydoes not care that you did that
(16:47):
upgrade because I can't verifyit with permits the city someone
could complain anythingexterior additions done by a
owner without permits, you knowthe city could have you demo it
because it doesn't comply withcode.
So those are all the thingsthat female buyers as well as
(17:10):
male buyers need to be aware of,what they're purchasing right
and they anticipate.
Could I take this financial hitif I had to remove it or repair
it or have it done properly bythe licensed professionals?
Speaker 1 (17:29):
From a real tourist perspective.
I want to get, from yourperspective, right.
So when you encounter thesekinds of things and you're
negotiating in this kind of way,like hey, you did this and
you're saying did this, butthere's no permits or we can't
verify it, what is thatexperience like in that
negotiation?
I'm just curious with anexperience, let's just say, with
(17:50):
a flipper, because I'm hearingyou and I'm kind of putting
myself on the seller sidebecause I sell out properties
and I will tell you, if I get aseller it's like, hey, this is,
I'm gonna say, just buy, justnext.
Right To me, it's just an asset, right To me.
It's just, I don't get enamoredwith houses, they're just to me,
(18:13):
I buy them, I fix them, I sellthem, I buy them, I fix them, I
rent them.
I buy them, rent them for fiveyears, two years, three years,
and then sell them, Like I just,I'm just, I'm just transacting
all the time.
So I'm just curious what yourexperience is like.
What is that like on that sidewhen you're telling a seller,
hey, man, you didn't do thisthis way and you know what is
(18:39):
the typical response that youget from a seller?
Speaker 2 (18:42):
They were were certainly would say.
You know it depends theintegrity of the individual and
at some point you need toprovide full disclosures.
We know in real estate, failureto do that we'll get you in a
lawsuit, right?
So we are in the business asfiduciaries to represent our
(19:03):
client well and then to alsowork in integrity with who's
going to purchase it, hence thedisclosures.
So you give the disclosures.
No, the plumbing has not beenupdated since the time of
construction.
Well, how old is your home?
Well, it's 20 years old.
(19:24):
All, right, you buyer, you candetermine whether or not.
Can I live with that or do Ineed to add that as a future
cost Could be next year, couldbe in 10 more years, but that is
the risk of being a buyer.
So, making buyers moreintelligent about that risk
(19:44):
factor, right, creating thisawareness, it's all about that.
So I would tell my sellers it'slike you need to disclose to me
everything that you've done andwe have it on paper.
Nothing is being held back andthey can take your work for it.
(20:06):
They can go to city hall andverify what they can and then
they determine the buyer, thelevel of risk they're willing to
assume.
Right, so we know, the mostimportant thing is location.
Then what are the values thatthis particular city brings to
(20:26):
this?
Property, services, parks,schools, access to
transportation, all these things?
That is up to the buyer to say.
Is this a good deal for me?
Right, then they run theirnumbers, but always we want to
operate in integrity and let ourclients, our sellers, know just
(20:51):
be honest with me, whateverthat is, because if I'm
representing you, I need to beable to disclose everything we
can and allow the buyer to maketheir choices based on their
level of risk.
Speaker 1 (21:07):
I'm curious.
I have a question for you.
On the due diligence side,right Probably advise your
client, your female counterpart,take a look.
They're saying this says thison the seller's disclosure on
the SDA, not the SDA seller'sdisclosure, whatever my wife
calls it something.
(21:29):
Yeah, that thing, it's sopainful for me because it takes
so, they're so long and they'reso, it's so tedious and I have a
lot of property.
So I don't know.
A lot of times I don't know andI don't remember.
So when we're buying a flip, webuy a fix, we fix it, boom,
contracts are in there, we'reout of there, and a lot of times
I don't know.
I really generally don't.
(21:49):
I don't know.
I fix, I put a new kitchen sink,I put a new sink, I put a new
counter, I put new floors, Ipaint it, I put new windows.
You could see it obvious.
But a lot of times I don't know.
So I'm curious to what happenswhen, like, out of 10 people
that go and check right, likesay, you got, you recommend, you
(22:10):
make a recommendation, hey, goto the city and just confirm
that indeed, this was done.
Just, I'm just curious, this isa curious number 10 people.
You go they say, hey, we didthis and they go to city hall.
People go to city hall.
How many, how much of?
What's the percentage?
In your opinion, from yourexperience, that can actually be
(22:31):
verified through permitting.
Speaker 2 (22:38):
At least 10 to 20% people because of the price
point that they're spending,especially in California.
They, you better know, and allthe time.
Speaker 1 (22:51):
So 10 to 20% have permits.
You can verify that they pulledthe permit.
That's what I'm asking.
Speaker 2 (22:58):
Oh yeah, I think.
Yes, it really depends on theage of the home.
So building departments retainbuilding plans and permits
probably for about 10, maybe 15years.
It really depends on how largethe cities are, and so you can
(23:22):
verify that there are some workthat can't be verified.
However, you can get an afterthe fact permit.
So, yes, you can do all that.
I would say the most importantthing is, if you're buying a
home because of it's squarefootage and there's been an
(23:45):
addition done that one, that one, that's the big one that adds
to the price point, right,you're paying for that square
footage, yeah, correct, and youbetter verify that that was done
with, because the city can makeyou demo it.
And now you've just paid aquarter of a million for that
huge addition and it's goneright.
(24:07):
And I don't know if you'veencountered it on the East Coast
.
I mean, you have structuresthat are certainly much older
than the West Coast, but thenon-conformity of setbacks,
those are things that get veryspecific, right.
But if you're flipping, you'reprobably not doing additions,
(24:31):
you're doing just aestheticimprovements, landscaping, paint
, you're in, you're out.
But for those that are makingmajor purchases or purchasing
for long-term, then that's wherethe due diligence gets critical
, because you could be on a halfacre lot and you have certain
(24:54):
setbacks and you go oh well,yeah, I want to add on to that
and I'm going to maintain thissetback.
Really, are you sure you coulddo that?
Because that is something thatyou want to do, but you better
verify it, because if you can't,that may cause you to walk away
from the table right, thatmakes sense.
Speaker 1 (25:12):
Yes, yes, that makes a lot of sense.
So you're in California rightnow, right?
Yes, you're in California,perfect.
This is my final question toyou what is the state of the
market in California and here inthe fall of 2023, as it
pertains just to the real estate?
How is the market?
How do you see it?
Are you seeing our pricesactually softening there?
Speaker 2 (25:35):
People still want to live in California.
We pay for our weather.
Speaker 1 (25:41):
You ain't not kidding .
I was just talking to someone.
They were like yeah, weCalifornia a great place and got
all these issues going on inCalifornia, but the weather is
great.
And we're like weather is great, but you're getting taxed.
You're going to kill the taxes,the weather is great.
Speaker 2 (25:57):
Well, but look what our taxes cover, right?
We have great infrastructure.
We have great roads, those costimprovements, the open spaces
that we value so much.
So, yes, so our propertiescontinue to go up?
Yep, they are.
They're slowly going back upand as soon as interest rates
(26:18):
change, it's going to go up evenfurther, right?
Right?
So Our state is so large youcan really pit your price point
of where you want to live, butthe job market is certainly
going to determine that.
So we're a commuter state,because you keep moving out to
the suburbs but you're workingin LA.
(26:40):
So that's the value that itbrings Our job economy, our
weather, our services.
You can be in the ocean in anhour, or you can be up in the
mountains in an hour, or surfingwhatever you want.
One of the most beautiful thingsabout our state is our
(27:02):
diversity in culture.
We have just like New York, Imean, just tremendous food
choices, and to hear justmultiple languages being spoken
is I love it.
That is really a benefit.
But certainly the housingchoices, yes, we still have a
(27:24):
shortage.
Our largest group still are thebaby boomers and we're not
selling our home.
So what is available?
So we look at and, as you know,the success of the city and its
growth is how many buildingpermits are being issued for new
construction.
So is that happening inCalifornia?
(27:46):
Yes, lots of homes are beingdeveloped in Lin, empire,
northern Cal, central California.
All of that is still happening.
So there is a demand for peopleto want to live in California,
to work in California.
And are people moving to otherstates?
(28:06):
Sure, there are.
It's always happening, right,and you should try it.
But if you own property inCalifornia and you want to try
living somewhere else, I tell myclients don't, sell, lease it,
try it out and then come backbecause you won't be able to
afford to buy into Californiaagain.
Right, if you own real estate.
Speaker 1 (28:27):
But I want to just talk about really quick, because
you just said all the wonderfulthings about California.
California is a wonderful state.
I don't disagree with you.
I agree with everything yousaid.
But what I have been seeing inmy experience in California that
you have a big problem withyour homeless issue and that
(28:48):
drags down.
That's big problem.
I'm speaking as an investor nowand that's a big problem.
Why would I take my money andinvest my money in real estate,
or even in anything, when youhave such a major homeless
problem and the government isdoing Jack's jitterly squat
(29:08):
about it and just like, whatabout the citizens, right?
So what impact is that havingon real estate, if any, from
your perspective as a realtor?
Speaker 2 (29:20):
Certainly we have a major problem all along the West
Coast because of the weather isso conducive to people sleeping
outside.
There are programs that arebeing implemented, certainly not
fast enough.
We have from the planning.
(29:41):
We provide affordable housingin development.
So we have inclusionary housingrequirements in various states
and various cities in Californiaand so, as development occurs,
we are getting people affordablehousing.
But it's not really addressingthe socialist issue of
(30:04):
homelessness, because we have avariety of factors.
Some is economic, some aremental, some are drug use.
So how do you address all ofthose all at once?
So, as a realtor, you can't.
The only way you could do it isyou people need to be involved
in their communities, in theircities, pressuring the decision
(30:30):
makers to what are you doing toaddress the homeless issue in
our city?
Right, you can't handle thewhole state because the problem
is too massive.
So every city has to take ontheir particular issues and that
responsibility.
Now I would advise my clients asyou invest in a city, then you
(30:54):
need to be truly invested inyour community.
You need to get involved andfind out what can you contribute
to your city, the expertisebeing involved in the public
hearing processes.
Let your voice be heard.
Now, what can be done?
(31:15):
When you move into a city andyou're seeing homelessness or
you're seeing debris or you'reseeing a person not taking care
of their property, you contactcode enforcement right, and they
need to know who you are,because the people in a
community and a city start todetermine the values of a city,
(31:40):
what we will tolerate, what wewill not tolerate, and you have
to constantly.
Your voice has to be heard bythe decision makers.
So is that a problem that willgo away soon?
No, are we doing things aboutit?
Yes, but it's an issue thatgoes way beyond real estate.
(32:02):
Our job, and we would tell ourclient, is how do I protect my
investment?
But it does impact.
I show me steps.
Speaker 1 (32:09):
Those ways beyond real estate, but it does impact
real estate to use.
You made a statement A ifyou're an investor, your voice
should be heard.
I agree with that.
Where I have big investments,my voice is heard.
I know the mayors, I know theplayers.
No, I know I schedule meetingswith mayors and meet with mayors
and city councils and all thatgood stuff.
However, before right, so if Iam the CEO of the state or I am
(32:36):
the CEO of a company and I wantto attract money there, right,
what is being done to attract?
Because if there is thisproblem and it's not being
addressed, I'm not going there.
I'm not taking.
This is just a reality of life,rosemary.
I'm not taking my capital there.
It sounds great Everything yousaid sounds great, but the truth
(32:58):
of the matter is I'm looking towhere can I deploy my capital
that don't have?
Am I going to deploy my capitalto the city that has this
problem, or am I going to deploymy capital to a city that
doesn't have this problem?
And the mere fact that I'mdeploying my capital to a city,
that is my value, because myvalue me deploying my capital
brings jobs and provides housingand provides and in my space I
(33:21):
like to play in the affordablehousing space, so I like to
create affordable living forpeople, because there's a crisis
in our country for that.
So why would I go and put mymoney there, versus some city
that doesn't have that issue orthat's dealing with the issue
head on or didn't let the issueget to that point?
So I'm talking about asituation where, hey, if I want
(33:43):
to take my money, why should I?
Why should I take my moneythere when you have this problem
?
And, yes, I could be part ofthe solution?
But I'm talking from a strictlylogical, as an entrepreneur, as
a businessman.
Hey, strictly logical, whyshould I take my money there and
then have to deal with that?
And I know what happens withthis.
(34:04):
Like, listen, we're both, weboth know what happens.
I invest my money in a city.
All of a sudden, there's ahomeless problem.
All of a sudden, do you look atSeattle?
Right, there's pockets inSeattle where it's just a, it's
a nightmare there.
All of a sudden, there's issueswith homelessness.
Guess what happens?
All of a sudden, the quality ofresonance that I can qualify
(34:25):
that want to move it.
I'm not gonna get the nurses,I'm not gonna get the working
class, I'm not gonna get the,the single working-class mom,
that professional, they're notgonna feel safe going there.
So the quality of my resonancegoes down, the value of my
property goes down.
I have to bring my rents downbecause I got to bring a
different type of tenant,different type of resident in
there.
So it creates a night, itcreates a, it creates a problem
and it does impact real estate.
(34:45):
It absolutely does like no onewants to come home and have to
feel unsafe Seeing a crazy localthere, you know, shooting up or
all drunk and people campingout in front of your house Like
it's embarrassing for me to belike hey Rose, come to my house
for dinner and you got to walkover caps and stuff like that.
Speaker 2 (35:06):
Yeah, you know what I mean.
Yeah, that's that's where.
I know exactly what you mean.
Sure, and that's you know, inyour conversations with city
officials, the decision-makersthey are.
If you're a large developer,they are courting you as well.
They want you to invest intheir city.
But part of that negotiation isWell, how can you assure me
(35:30):
Right, if I, especially you know, from ground up construction,
right part in California part ofyour fees are going Towards
those services, those emergencyservices, police, fire, all
those things.
It's like okay, I'm bringing inthis major investment, it's
going to address your housingrequirement numbers and this is
(35:53):
the value I bring.
I'm bringing more people to beable to utilize all your retail
services and I'm contributing alot.
What are you providing for me?
And that's part of thenegotiations that need to be
done.
Perhaps it's part of havingon-site security, someone at the
(36:13):
door, a doorman, you know.
All these things are on-siteparking to reduce the
requirement of having to walk,you know, a block or so to get
to your home.
One of the things that wecertainly require in California
is you have to have on-siteparking for your Development.
But if you start to get morepeople living there, then
(36:37):
certainly you're going to useall that parking.
Now you yeah, you have to parkon the street right.
So those are problems thatpeople are creating, but at the
time of the initial approvalthey are meeting the required
parking standards.
But yes, if you can see how itjust keeps more and more complex
, the issue gets.
Speaker 1 (36:56):
It gets complicated, yeah, it gets it does and
California solution such abeautiful state.
You know, I look at the city ofSan Diego.
I love that city.
Oh yeah, I went there in 2004and, man, I fell in love with
that city.
I did that drive, that therewas a drive.
You you see it in the moviesand you're driving by the ocean
and you see the ocean Right overthe mountain on one side and I
(37:20):
crossed over.
We crossed over to Mexico, mywife and I, when we were there
in 04.
It's such a beautiful city andI hear I have, I've seen videos
and I you can never believeEverything you see, but I've
seen videos and I spoken topeople.
They're like mad San Diego.
It's not that anymore with thishomeland, with some of the
homeless issues that's happeningthere.
Speaker 2 (37:40):
Yeah, like I said, the entire, you know, west Coast
is experiencing that Because ofits beauty, its weather, where
people you know they're probablydon't have a big homeless issue
in Minnesota because it's theweather is not, may not be
conducive.
Speaker 1 (37:57):
We have in New York City and New York the weather's
not conducive, right, so there'san issue that's a whole other
thing.
But, rose, yeah, thank you somuch.
It's been my pleasure to haveyou here on the show.
Thank you so much for coming on.
Oh, there it's us having this,this wonderful conversation
about your state and how peoplecan avoid Challenges.
(38:19):
We're about to go into theuntitled round where I'm gonna
ask you a series of questionsyou you can think, you can
justify If you want.
Whatever, however you want, besure they could be long,
whatever you want, are you readyto play?
Speaker 2 (38:29):
They're all play.
Speaker 1 (38:30):
Okay, real estate is Financial freedom.
My advice to all women isinvest your money.
I've always wanted to travel to.
Italy never underestimate thepower of Determination.
The market right now is stillexciting.
I think the president right nowis still exciting, family or
(38:55):
business.
Speaker 2 (38:56):
Ah, family yeah family Amelia.
Speaker 1 (39:00):
Amelia more time or more money, oh, oh, more time
wine or beer in California wine.
You got the great gossip, greatwinery.
Speaker 2 (39:11):
We have great wine.
Speaker 1 (39:13):
Book smart or street smart, both success or happiness
both.
Speaker 2 (39:21):
Happiness does make you feel successful, provided
that you are also doing booksmart and you're learning from
your street smarts.
There's always a A lesson right.
Sometimes you win, sometimesyou learn angry client or angry
angry co-worker.
Oh, co-worker.
Speaker 1 (39:45):
Thank you so much, rosemary.
If people want, thank you, butwhat did they get a hold of you?
Connect with you?
How can they find you?
Are you if you're on socialmedia?
Where can they find you?
Where can they get a hold ofyou?
Maybe they're looking to buy aproperty in California.
Talk to an agent, maybe learnmore from you.
How do they go about that?
Speaker 2 (40:02):
Yeah, absolutely.
They can certainly Go to mywebsite at rosemary medallcom.
I'm on Instagram, but they wantto connect with me because I've
created a masterclass that'llteach you how to Look at a
neighborhood and the way anurban planner would, so that
(40:23):
you're not missing.
So you great this Awarenessright now.
I want to have that as my giftto your listeners, who are all,
I'm sure, just trying to getthat first property or their
10th, but then I believe it'llbe a value to them and, where
they can, I'll give you the link.
I'll give you the link and youcan put it on your show notes.
Speaker 1 (40:44):
Okay, so we'll make sure we put that on the show
notes.
Guys, make sure you guys lookat you, look that up on the show
notes and that's rosemarymedallcom and Connect with her.
You said you're on social media, you're an Instagram and I'm on
Instagram, facebook, linkedinokay, so you can look her up.
And rosemary, thank you so muchfor coming on the show really
(41:05):
Appreciate it was an honor tohave you.
Speaker 2 (41:07):
Thank you so much, really appreciate it you.
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