October 24, 2024 • 20 mins
Unlock the secrets to mastering today's real estate market as we dive into the bustling world of property investment and homeownership. From Jerome Powell's pivotal 50 basis point rate cut igniting a refinancing frenzy, to the resurgence of bidding wars akin to the post-COVID era, we navigate these shifting sands with you. We examine the necessity of strategic timing in home buying decisions, urging potential buyers to act swiftly and wisely in this fast-changing landscape. Experience the thrill of our new office opening, a symbol of the return to essential face-to-face interactions in the real estate and mortgage sectors, and learn how to stay informed and proactive amidst these developments.
Embark on a journey through the evolving rules of real estate, where sellers now bear the responsibility of paying buyer's brokerage fees, shaking up the industry standards. P. Diddy's eye-catching $61 million mansion sale serves as a testament to the lucrative potential of real estate appreciation. We also spotlight the crucial distinctions between fleeting indulgences and the enduring benefits of homeownership, emphasizing the importance of stable, long-term investments over temporary luxuries. Discover the array of grants available for first-time homebuyers, and let us guide you on your path to securing your dream home. Engage, subscribe, and continue this adventure with us as we provide invaluable insights and support in your real estate endeavors.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:09):
let's get it.
Guys, welcome to suit up withbuys podcast.
I'm extremely excited.
As you see, we had a new place,yeah, a new location.
We have our new office.
We're extremely excited andcontinue doing this podcast to
help others out there, out there, and we're here for you guys.
Let's go, angelo let's go.
Speaker 2 (00:30):
But yeah, that's why we've been, uh, you know you
haven't seen a video from usfrom a little bit because, uh,
we've been transitioning into anew office here.
So if any of you are wanting to, you know, ask any questions in
person and whatnot, we'lldefinitely uh, let you know
where our office is located here, guys.
Speaker 1 (00:48):
Now we got an office.
You know, I know we've beenused to for the zoom for such a
long time with this covid, butI've been seeing that people
want to meet in person again,angela they do, they do we got
to bring it back, guys.
Speaker 2 (01:00):
We have to angela exactly, especially with all the
new role changes that arecoming into effect, which we'll
touch on later on in the podcast.
But yeah, it's very importantto have a physical office, you
know.
Speaker 1 (01:11):
Yeah, we have a physical office.
We're here for you guys.
Any questions of real estate,we're here.
Mortgage and real estate we'rehere for you guys.
So, angela, talk to me.
Speaker 2 (01:20):
Let's get on with the market so right now with the
market, it's actually getting alittle bit interesting just
because of the fact that, uh,jerome powell has announced that
there's a rate cut by 50 basispoints.
Um, you guys are not going tosee it.
That's just yet.
It still has to go through awhole process, lending
atmosphere.
But, um, yeah, people aregetting excited.
You know, traction is pickingup, a lot of people are starting
(01:42):
to refinancing and there's beenan uptick of 20% and
refinancing.
So all those lenders are goingto be very happy because now
they're going to be able to helpa lot more people with their
refinancing.
And all of that, whateverpercentage you were locked in at
before right, if you see thatit's 2% or higher of a
(02:04):
difference in your currentinterest rate compared to the
one being offered now, youshould definitely take part in
refinancing, because that'swhere it makes sense.
Speaker 1 (02:15):
I'm with you, andrew, yeah.
Speaker 2 (02:16):
And from my personal experience, the market is
getting a little bit hotter justbecause of that news as well.
There's a little bit more homescoming into the market, more
uptick in sales and, yeah,people are getting excited you
definitely brought a strongpoint on the rates guys we
actually enter our point, ourfourth quarter.
Speaker 1 (02:33):
I'm finishing the year.
The good thing is that um ratesare going to drop, but it takes
a process not to happeninstantly, but it's going to
happen very soon.
So everyone think everyone iscalling Heidi, for instance,
heidi is our preferred lender,mortgage broker, so everyone is
calling Heidi to refinance,thinking like it's already five
and a half right.
But the reality is what youjust said, angelo it's going to
(02:56):
happen, right, the rates aregoing to go down, but it hasn't
gone down yet.
But, they already announced itfor sure that they're going to
bring it down.
Right, they re-announced it forsure that they're gonna.
They're gonna bring it down.
So everyone just get ready tocollect those documents and then
, once the race go down and goahead, do your refinance, start
buying.
But I am seeing something withthe buyers.
Um, do you guys remember whathappened when covid happened?
Race started droppingtremendously dramatically down
(03:19):
and what happened was that racedropped and what happened with
the buyer was that it was abidding war.
People were going crazy andI've been witnessing, we've been
listing properties that rightnow rates are estimated to go
down now and everyone's alreadygoing back out.
And we are seeing more buyersgoing out there right, the
market's getting better.
Prices are still high, butinventory is very low, and if
(03:43):
rates come in lower, inventoryis low.
It creates more bidding.
so if you're qualified, now gobuy yeah, absolutely you know
before you get stuck in thebidding war paying 50 to 100 000
more.
So the bidding wars werehappening when covid happened.
Right, hopefully doesn't gothat route, right?
Those are all predictions.
Right, hopefully it doesn't gothat.
But Definitely, guys, rates aregoing to go down.
(04:05):
Hasn't gone yet.
It's a process, like Andrewjust said.
Yeah, it's a process.
Speaker 2 (04:10):
Absolutely.
I mean always.
You know, before buying a home,just know that you should be
buying home because you need to,not because you want to.
Your family's expanding and allof that and you need a home.
Right now would probably be agood time, since rates are
starting to go down.
When we mentioned like therates and stuff, I know me and
chris right we were hitting upheidi and saying, oh, what are
(04:33):
the new rights like?
Speaker 1 (04:35):
how can I get?
I had already past clientsreach out to me um heidi,
especially letting us know like,hey, I'm ready to refinance.
Is it five, five and a quarter,five and a half?
You know it's in the process,right, it's not happening now,
but, as all the feds mention it,it's in the process, right, not
happening now, but some of thefeds mention it, it's in the
process right now exactlybecause we thought it would just
take an effect immediately,right.
Speaker 2 (04:54):
We were like, oh right there.
Speaker 1 (04:55):
And then, like I'll be honest, I was on the same
page with you guys because I wasalready telling my wife it's
race went down right really well, let's buy a property.
I was already telling heidibecause you know I always tell
heidi like we got, you gottacontinue property.
Just like how we tell you guysto buy property.
We also put it in our life Likewe also need to be buying
properties too.
It's such a huge benefit to bea property owner and also
(05:16):
creating a portfolio for yourfamily.
Speaker 2 (05:18):
Right For future generations to.
You know, thrive on that,because you're going to have
income coming from that.
And you're actively just like,well, you're just passively
getting that income I.
And you're actively just like,well, you're just passively
getting that income I think mostimportant, today's price is,
not tomorrow's price.
Speaker 1 (05:32):
And if you sit and think on that like we buy the
property today for $500,000.
You don't know what's going tobe 10 years down the line, what
it's going to be worth.
You might see it so much today,but 10 years from now what is
$500,000?
We don't know.
The more years pass, the morevalue the properties get and
more expensive they get.
Yeah, buying property is hugeand I always highly recommend to
(05:54):
always buy a property.
Instead of buying cars, havingcredit card debts, go buy a
property that's my, that's myopinion on this absolutely.
Speaker 2 (06:01):
I mean the home prices, basically appraise, like
for such higher amounts duringa longer period of time, like
their appreciation is just crazywhere when you say like get a
car, like don't get a car, a caras soon as you buy a car and
brand new it's alreadydepreciated like 10 or something
like that I definitely want toshare some one of our past
(06:22):
clients.
Speaker 1 (06:23):
We sold him a house about a year and a half, if I'm
not mistaking.
The rates when we sold it, thehouse were like I think, about
seven.
Right now he's calling heidi torefinance and guess what?
His house value just went upabout about seventy thousand
dollars.
Now he's refinancing withseventy seventy thousand dollars
of equity in his property.
So you see, even if rates arehigh or low, always, always, go
(06:47):
buy a house.
Rates wereates were high, hetook advantage, he still bought
the property and now he'ssitting on $70,000 equity on his
property.
Speaker 2 (06:54):
Right and appreciated equity.
Appreciated equity yeah.
Speaker 1 (06:57):
You see what's the benefits of still buying with a
higher interest rate?
The property still goes up andback, so it's a win-win for
everyone and anything.
Yeah, that's my opinion on that.
Speaker 2 (07:07):
I completely agree.
I mean, it's one of thoseproperties where you can't go
wrong buying it right, Unlessyou don't know what you're
getting into.
That's why it's alwaysimportant to discuss with your
agent, like all the ins and outs.
If you do have any questions,reach out to your agent and see,
I'm your agent.
Speaker 1 (07:23):
Call me guys At all times.
Alex is your agent.
Speaker 2 (07:27):
Or Chris or myself, whoever you feel comfortable
with, or your local real estateagent.
But yeah, just make sure thatyou're prepared for that.
There are a lot of things thatcomes with home ownership and
you have to be prepared for that, but other than that, it's
something truly special to ownsomething of your own, you know,
like a property of your ownwhere you're not being washed
over a landlord or anything likethat.
(07:48):
You could just like customizethe home how you want within
reason.
Speaker 1 (07:53):
I will always say this to everyone always speak to
two to three professionalrealtors before you hire one
don't just go to the first road.
So we all offer differentservices, we all have different
opinions and wherever you feelcomfortable with hire, but speak
to at least two to threeprofessionals realtors, right,
because everyone does differentservices.
So if you want to get the bestservice, talk to two to three
(08:16):
and see who you feel morecomfortable with and who you've
got a connection with, whichrealtor.
But definitely pick and choosea realtor that you feel more
comfortable with.
Speak to two to three people atleast.
Speaker 2 (08:25):
Yeah, absolutely, and since we last did a podcast,
new rules have been implemented.
Speaker 1 (08:32):
Oh, real estate industry had changed a lot
dramatically.
I mean, it's a lot of thingsgoing on with the buyers, right.
Speaker 2 (08:37):
Exactly Buyers, specifically Buyers you're going
to have a different way ofdoing things right.
Previously, agents were allowedto show you homes without you
having signed anything right.
But now that the new rules arein play, with the NIR settlement
and stuff, you are going to beasked by your agent right to
(09:01):
sign a buyer agency agreementwhich states that you know
they're going to be representingyou and it's going to outline
also like the commissionstructure.
That's going to be the normalpractice going forward.
Essentially, how it's going towork is that you're going to
sign that it's going to makeclear how much your agent is
charging you.
But, honestly, that charge canalso be it can be transferred to
(09:22):
the, to the seller.
So the seller pays it, not thebuyer, which is a seller
concession, correct Sellerconcession or just the seller
pays it directly, right, there'sthree ways how your agent is
going to be paid now, and it'sgoing to be either the seller
pays it directly, which thenthere's no problem, it's just
like the seller paying it.
Another way the seller can payit somewhat is through seller
(09:43):
concessions, but you have tomake sure that the value, the
appraised value, meets the offerthat you're submitting, because
, like, yeah, you're submittingan offer with the compensation
included in there.
If, let's say, you'resubmitting 730, right, 730,000
for a property and it includesthe commission there to be paid
(10:06):
out through seller concessions,then that means when the bank
appraises that property, it hasto come in at $730 or above so
they're able to essentiallycover the compensation within
that loan.
Now, the third way that theagent can be paid is basically
that the buyer pays out ofpocket.
Essentially, and most of thetime it's going to be probably
(10:32):
the seller's going to pay thewhole thing or a big portion of
it.
At least, that's what we'reseeing right now.
Just have that in mind.
Right, your agent is going todiscuss that with you, basically
outlining those three methodsof how they're going to get paid
, because it's very important,right?
No one works for free.
You got to put money, you gotto put food on the table for
your family and whatnot.
Yeah, just know that that'ssomething that's implemented now
(10:53):
In our brokerage.
Right, we have to do threedocuments.
So you're going to be hit withthree things at once, and that's
going to be the buyer brokerageagreement agency disclosure,
which outlines our obligation toyou.
Buyer brokerage agreementagency disclosure, which
outlines our obligation to you.
And the third one would be theanti-discrimination, your right
to not be discriminated against,and whatnot.
(11:14):
So, yeah, those are the threeforms for sellers.
What has changed, do you know?
Speaker 1 (11:18):
august 17.
This it went in effect forbuyers.
So I'm I'm actually excitedabout it.
Why?
Because everything will be nowstructured.
Now you will know exactly forthe seller and the buyer will
know exactly where thecommissions are going, who's
getting paid, how much eachperson in the transaction, each
realtor, is getting paid.
So now it's more professional.
(11:39):
In my opinion, it's moreprofessional and beneficial to
the buyers and the sellers.
Speaker 2 (11:43):
Everything is in writing now.
Speaker 1 (11:45):
It's extremely more professional and it's more
straightforward to what we'redoing On the seller.
So now sellers have the optionof paying buyer commission or
not.
That's what changed for thesellers?
It's beneficial for the sellersbecause some sellers are going
to offer and some sellers arenot.
Sellers are not obligated tooffer buyer commission right,
only for their listing agent.
(12:07):
They will be paying for theirservice, so they have the option
.
It's going to be more sellerconcession than anything my
opinion, but we'll see whathappens.
Right, it just went into effectthe first year.
In my opinion, it's going to bea roller coaster, right, it's a
lot of.
It's huge in this industry,right, been like this for years
that the seller pays for it.
It's going to be a rollercoaster.
Stay tuned.
It's going to be a whole year.
I'll give at least a year ormore for everyone to basically
(12:30):
get used to it.
Right, it takes time for peopleto get used to right.
When right when gas prices wentup, everyone was panicking.
You wasn't even seeing trafficand then within two, three weeks
, you started seeing traffic.
So it's about we getting usedto it, but it's going to take
time for everyone to adjust toit.
Speaker 2 (12:46):
Yeah, absolutely, because now a lot of agents are
basically calling other agentsto see how the seller wants to
move forward.
Are they giving compensation oranything like that?
And I know you've been on theother end where you're being
called so many times to say, hey, are you guys giving
compensation?
Because I want to see if thatfactors into the offer and all
(13:09):
of that and yeah, so my roots isout there.
Speaker 1 (13:12):
I love you guys, but I prefer text or email.
So many calls coming in at once, right, but this is an nar
started.
Right, we've got to follow thelaws and the rules understand it
.
Speaker 2 (13:23):
But I'm more with the texting and the emailing and,
of course, reaching out to myteam yeah, and if any other
realtor is watching right, how Ithink our team wanted
structured is that you can justput the compensation, whatever
the compensation structureyou're you're putting together
in in the offer sheet itselfyeah in the writing yeah because
(13:43):
then we we both have it inwriting and, uh, so like in the
additional terms of your offersheet, you could just put we
want the seller to compensatefor the buyers.
Um, buyers brokerage free, orsomething like that yeah, that's
the as you guys put in.
Speaker 1 (13:57):
I think it's the best way to do like that.
Like when you agent submitoffers, just put it right right
in your offer.
So your offer sheet would sayyour compensation as well, so
seller could see it.
Speaker 2 (14:07):
Which is great about it now is that when we receive
offers now, the seller can signit also the offers that we
receive right and uh, everythingis going to be basically uh,
given to the, to the seller, andif the numbers make sense, the
seller will go with it, nomatter if it's compensation or
not.
It's all numbers game.
If you submit a strong offerand uh, you're um, you're
(14:29):
wanting to get a commission ofwhat?
X percent?
Right, if the numbers makesense, you're always going to
get the deal, no matter what.
Speaker 1 (14:38):
I agree with you, angela 100%.
Speaker 2 (14:40):
That covers pretty much like the new roles that
came into play.
I think something that you knowhas been circling the news a
lot is this whole P Diddy thingright.
Speaker 1 (14:50):
P.
Speaker 2 (14:50):
Diddy, and the reason why we bring it up is because
he has a mansion that he'sselling right for $61 million,
and when we saw that, we're likewow.
Speaker 1 (15:01):
Where's this mansion at?
Speaker 2 (15:02):
I believe it's in.
Speaker 1 (15:03):
Los Angeles, I saw.
Speaker 2 (15:05):
Yes, in Los Angeles, some exact location, but I
believe he's selling it for $61million.
Okay, and I think he bought itfor like $34 million.
$34 million, let me see it was.
I believe it was 39 million, 39million, and he's selling it
for how much?
He's selling it for 61.
So a total profit of 32.
Speaker 1 (15:24):
What year he bought it, on what year?
Speaker 2 (15:25):
He bought it in 2014.
Speaker 1 (15:27):
Wow, so he got exactly 10 years with it, yeah,
and now he's making.
How much in profit 32 million,million.
You hear that Literally he'sgetting almost 100% profit out
of it.
Speaker 2 (15:39):
Yeah, that's amazing guys, that's incredible.
We should buy it.
Speaker 1 (15:43):
Oh my God.
I mean he's selling it at theright time, right?
Oh, you know he's going to havea lot of legal fees.
Oh yes, he's selling it at theright time, but the best example
of it is that look how much youbought it for and look how much
you're selling it for.
Guys, right, and that's for allof us.
You know everyone that ownsreal estate, everyone that
creates their portfolio.
You're always sitting on equityas the years go by.
In real estate, it's really nolosing market.
(16:06):
Go shift could go down, butit's gonna go right back up.
Guys, in real estate, I feellike it's more win to anything,
right, but of course, in realestate it's a roller coaster.
You know, like any otherbusiness, you got your ups and
down right when you're doingyour rentals right with your
tenants, they got ups and down,but I'm gonna say it's more
beneficial than anything andthat's just like one example of
appreciation going crazy upright that's crazy yeah, like my
(16:29):
friend, for example, who livedin the south bronze, his grandma
bought a property back in theday for like around I want to
say like 300 something thousand,and now it's worth over 829,000
.
Appreciation is always wins onit.
Speaker 2 (16:44):
Yeah.
Speaker 1 (16:45):
Instead of renting.
It's always appreciation andowning a property so much
beneficial.
But wow, emily, puff Daddy isPuff Daddy, sean Daddy I don't
even know what name he has.
Speaker 2 (16:56):
He has like 10 names, sean Combs or something, sean
Combs, you know all those things, but that has been going
Through my social media All thetime so many articles About new
things coming in and also thatthing Correlated with Eric Adams
.
Speaker 1 (17:09):
Another thing with the mayor.
But I would say, like, I'll behonest here, I'm so against
doing wrong.
Justice for those people, ifit's true and they prove him
guilty because he's not guiltyyet right, they got to prove him
.
But I'm so strong on doing theright things, I'm so strong on
karma.
Right, you always got to do theright thing.
That's right.
In our business.
I always tell my team andmyself we always got to do right
(17:31):
for our clients.
It's going to come right back.
I know he was probably therichest guy, he's one of the
richest guys and he's out there.
But when you're doing wrong,you're consequencing.
Regardless of who you are,you're going to pay for your
consequence.
I hope that whatever ishappening with him, you know
it's for the right, you know andfor the community, and you know
and I appreciate the justicethat's protecting the community.
(17:52):
If all this um stations is true, right, we don't know right,
this is a case that's going togo for a while.
I am interested to see how itends.
Right, because you candefinitely see that he felt like
he was on top of the world.
Speaker 2 (18:05):
Right.
Speaker 1 (18:05):
Right and his actions speak for itself.
You know, growing up I heard alot of stories about it, but you
know now we see it going intofederal justice system, so it's
going to get interesting.
I think that's going to be along ride for him.
Right, because you know he'sgoing to come in with his legal
team very strongly and I knowthe feds are going to come in
(18:32):
with their legal, which we leaveit to them to handle.
Right, right, always do theright thing.
Guys.
Try your best to always do theright.
They never do wrong to others.
What you want and like to bedone to yourself.
Always do right to others, andthat's one thing that we're
strong about is always doingright to others because we want
the right.
We want to always do the rightfor others, yeah absolutely,
absolutely.
Speaker 2 (18:45):
I mean with all of our clients.
I think we put doing right bythem at the priority, also
because we have fiduciary dutyto hold their best interest at
hand, and when you do such agreat job, we get a lot of
referrals because of that.
Speaker 1 (19:00):
Yeah, we get a lot of referrals.
I mean, business right now isbooming.
It's all referrals.
Pretty much, to be honest withyou guys, it's mostly referrals.
We have a great team of guys.
Also, heidi is our mortgagebroker, which is my wife.
Heidi she's with Gold Rascal.
She's available.
She answers any questions youmay have or you want to prepare
yourself within a year to buy ahouse.
She also goes and helps themout, guiding to get the
(19:24):
pre-approval and get qualifiedthe best way.
Even if you're preparingyourself, we're there for you.
Any questions you might have,reach out to Heidi for the
mortgages.
We are the realtors, the realestate broker.
I'm the real estate broker,we're realtors here.
Any questions you guys may have, we're here for you.
Please don't hesitate.
I know a lot of people arenervous or scared to reach out
to us.
Reach out to us.
(19:44):
I promise you we're going togive you guys great information
and yeah, we also guys.
Very soon we're going to startpreparing buyers on seminars
once a month at our office.
We're going to be doing aninvitation to everyone to come
out, get some information.
We'll have food, drinks.
We'll make it very fun for youguys.
But more than anything, we wantto get the message out there is
(20:06):
buy a house, guys.
It's so much beneficial to it.
I won't stop saying it becauseit's more beneficial than
anything.
Right, instead of going buyinga car of the year, instead of
filling up your credit cards,buy a house for your family.
Create those dreams for yourfamily.
That's more important thananything right.
Speaker 2 (20:21):
I mean, yeah, I have no nothing else to add to that.
I think, um, yeah, just uh,take advantage of the
opportunities you're given.
Speaker 1 (20:29):
And one last thing I just want to share with you.
Heidi had mentioned to me, tous, that they are offering a lot
of grants for first time.
Buyer, reach out to Heidi.
There's tons of grants she'soffering and yet we're here for
you guys.
I just want to end it with this.
This is Sudo with Buys Podcast.
We're here for you guys Like,subscribe, ask questions, and
we're here for you guys.
All right, thank you guys.
Speaker 2 (20:51):
Bye guys.
let's get it.
Guys, welcome to suit up withbuys podcast.
I'm extremely excited.
As you see, we had a new place,yeah, a new location.
We have our new office.
We're extremely excited andcontinue doing this podcast to
help others out there, out there, and we're here for you guys.
Let's go, angelo let's go.
Speaker 2 (00:30):
But yeah, that's why we've been, uh, you know you
haven't seen a video from usfrom a little bit because, uh,
we've been transitioning into anew office here.
So if any of you are wanting to, you know, ask any questions in
person and whatnot, we'lldefinitely uh, let you know
where our office is located here, guys.
Speaker 1 (00:48):
Now we got an office.
You know, I know we've beenused to for the zoom for such a
long time with this covid, butI've been seeing that people
want to meet in person again,angela they do, they do we got
to bring it back, guys.
Speaker 2 (01:00):
We have to angela exactly, especially with all the
new role changes that arecoming into effect, which we'll
touch on later on in the podcast.
But yeah, it's very importantto have a physical office, you
know.
Speaker 1 (01:11):
Yeah, we have a physical office.
We're here for you guys.
Any questions of real estate,we're here.
Mortgage and real estate we'rehere for you guys.
So, angela, talk to me.
Speaker 2 (01:20):
Let's get on with the market so right now with the
market, it's actually getting alittle bit interesting just
because of the fact that, uh,jerome powell has announced that
there's a rate cut by 50 basispoints.
Um, you guys are not going tosee it.
That's just yet.
It still has to go through awhole process, lending
atmosphere.
But, um, yeah, people aregetting excited.
You know, traction is pickingup, a lot of people are starting
(01:42):
to refinancing and there's beenan uptick of 20% and
refinancing.
So all those lenders are goingto be very happy because now
they're going to be able to helpa lot more people with their
refinancing.
And all of that, whateverpercentage you were locked in at
before right, if you see thatit's 2% or higher of a
(02:04):
difference in your currentinterest rate compared to the
one being offered now, youshould definitely take part in
refinancing, because that'swhere it makes sense.
Speaker 1 (02:15):
I'm with you, andrew, yeah.
Speaker 2 (02:16):
And from my personal experience, the market is
getting a little bit hotter justbecause of that news as well.
There's a little bit more homescoming into the market, more
uptick in sales and, yeah,people are getting excited you
definitely brought a strongpoint on the rates guys we
actually enter our point, ourfourth quarter.
Speaker 1 (02:33):
I'm finishing the year.
The good thing is that um ratesare going to drop, but it takes
a process not to happeninstantly, but it's going to
happen very soon.
So everyone think everyone iscalling Heidi, for instance,
heidi is our preferred lender,mortgage broker, so everyone is
calling Heidi to refinance,thinking like it's already five
and a half right.
But the reality is what youjust said, angelo it's going to
(02:56):
happen, right, the rates aregoing to go down, but it hasn't
gone down yet.
But, they already announced itfor sure that they're going to
bring it down.
Right, they re-announced it forsure that they're gonna.
They're gonna bring it down.
So everyone just get ready tocollect those documents and then
, once the race go down and goahead, do your refinance, start
buying.
But I am seeing something withthe buyers.
Um, do you guys remember whathappened when covid happened?
Race started droppingtremendously dramatically down
(03:19):
and what happened was that racedropped and what happened with
the buyer was that it was abidding war.
People were going crazy andI've been witnessing, we've been
listing properties that rightnow rates are estimated to go
down now and everyone's alreadygoing back out.
And we are seeing more buyersgoing out there right, the
market's getting better.
Prices are still high, butinventory is very low, and if
(03:43):
rates come in lower, inventoryis low.
It creates more bidding.
so if you're qualified, now gobuy yeah, absolutely you know
before you get stuck in thebidding war paying 50 to 100 000
more.
So the bidding wars werehappening when covid happened.
Right, hopefully doesn't gothat route, right?
Those are all predictions.
Right, hopefully it doesn't gothat.
But Definitely, guys, rates aregoing to go down.
(04:05):
Hasn't gone yet.
It's a process, like Andrewjust said.
Yeah, it's a process.
Speaker 2 (04:10):
Absolutely.
I mean always.
You know, before buying a home,just know that you should be
buying home because you need to,not because you want to.
Your family's expanding and allof that and you need a home.
Right now would probably be agood time, since rates are
starting to go down.
When we mentioned like therates and stuff, I know me and
chris right we were hitting upheidi and saying, oh, what are
(04:33):
the new rights like?
Speaker 1 (04:35):
how can I get?
I had already past clientsreach out to me um heidi,
especially letting us know like,hey, I'm ready to refinance.
Is it five, five and a quarter,five and a half?
You know it's in the process,right, it's not happening now,
but, as all the feds mention it,it's in the process, right, not
happening now, but some of thefeds mention it, it's in the
process right now exactlybecause we thought it would just
take an effect immediately,right.
Speaker 2 (04:54):
We were like, oh right there.
Speaker 1 (04:55):
And then, like I'll be honest, I was on the same
page with you guys because I wasalready telling my wife it's
race went down right really well, let's buy a property.
I was already telling heidibecause you know I always tell
heidi like we got, you gottacontinue property.
Just like how we tell you guysto buy property.
We also put it in our life Likewe also need to be buying
properties too.
It's such a huge benefit to bea property owner and also
(05:16):
creating a portfolio for yourfamily.
Speaker 2 (05:18):
Right For future generations to.
You know, thrive on that,because you're going to have
income coming from that.
And you're actively just like,well, you're just passively
getting that income I.
And you're actively just like,well, you're just passively
getting that income I think mostimportant, today's price is,
not tomorrow's price.
Speaker 1 (05:32):
And if you sit and think on that like we buy the
property today for $500,000.
You don't know what's going tobe 10 years down the line, what
it's going to be worth.
You might see it so much today,but 10 years from now what is
$500,000?
We don't know.
The more years pass, the morevalue the properties get and
more expensive they get.
Yeah, buying property is hugeand I always highly recommend to
(05:54):
always buy a property.
Instead of buying cars, havingcredit card debts, go buy a
property that's my, that's myopinion on this absolutely.
Speaker 2 (06:01):
I mean the home prices, basically appraise, like
for such higher amounts duringa longer period of time, like
their appreciation is just crazywhere when you say like get a
car, like don't get a car, a caras soon as you buy a car and
brand new it's alreadydepreciated like 10 or something
like that I definitely want toshare some one of our past
(06:22):
clients.
Speaker 1 (06:23):
We sold him a house about a year and a half, if I'm
not mistaking.
The rates when we sold it, thehouse were like I think, about
seven.
Right now he's calling heidi torefinance and guess what?
His house value just went upabout about seventy thousand
dollars.
Now he's refinancing withseventy seventy thousand dollars
of equity in his property.
So you see, even if rates arehigh or low, always, always, go
(06:47):
buy a house.
Rates wereates were high, hetook advantage, he still bought
the property and now he'ssitting on $70,000 equity on his
property.
Speaker 2 (06:54):
Right and appreciated equity.
Appreciated equity yeah.
Speaker 1 (06:57):
You see what's the benefits of still buying with a
higher interest rate?
The property still goes up andback, so it's a win-win for
everyone and anything.
Yeah, that's my opinion on that.
Speaker 2 (07:07):
I completely agree.
I mean, it's one of thoseproperties where you can't go
wrong buying it right, Unlessyou don't know what you're
getting into.
That's why it's alwaysimportant to discuss with your
agent, like all the ins and outs.
If you do have any questions,reach out to your agent and see,
I'm your agent.
Speaker 1 (07:23):
Call me guys At all times.
Alex is your agent.
Speaker 2 (07:27):
Or Chris or myself, whoever you feel comfortable
with, or your local real estateagent.
But yeah, just make sure thatyou're prepared for that.
There are a lot of things thatcomes with home ownership and
you have to be prepared for that, but other than that, it's
something truly special to ownsomething of your own, you know,
like a property of your ownwhere you're not being washed
over a landlord or anything likethat.
(07:48):
You could just like customizethe home how you want within
reason.
Speaker 1 (07:53):
I will always say this to everyone always speak to
two to three professionalrealtors before you hire one
don't just go to the first road.
So we all offer differentservices, we all have different
opinions and wherever you feelcomfortable with hire, but speak
to at least two to threeprofessionals realtors, right,
because everyone does differentservices.
So if you want to get the bestservice, talk to two to three
(08:16):
and see who you feel morecomfortable with and who you've
got a connection with, whichrealtor.
But definitely pick and choosea realtor that you feel more
comfortable with.
Speak to two to three people atleast.
Speaker 2 (08:25):
Yeah, absolutely, and since we last did a podcast,
new rules have been implemented.
Speaker 1 (08:32):
Oh, real estate industry had changed a lot
dramatically.
I mean, it's a lot of thingsgoing on with the buyers, right.
Speaker 2 (08:37):
Exactly Buyers, specifically Buyers you're going
to have a different way ofdoing things right.
Previously, agents were allowedto show you homes without you
having signed anything right.
But now that the new rules arein play, with the NIR settlement
and stuff, you are going to beasked by your agent right to
(09:01):
sign a buyer agency agreementwhich states that you know
they're going to be representingyou and it's going to outline
also like the commissionstructure.
That's going to be the normalpractice going forward.
Essentially, how it's going towork is that you're going to
sign that it's going to makeclear how much your agent is
charging you.
But, honestly, that charge canalso be it can be transferred to
(09:22):
the, to the seller.
So the seller pays it, not thebuyer, which is a seller
concession, correct Sellerconcession or just the seller
pays it directly, right, there'sthree ways how your agent is
going to be paid now, and it'sgoing to be either the seller
pays it directly, which thenthere's no problem, it's just
like the seller paying it.
Another way the seller can payit somewhat is through seller
(09:43):
concessions, but you have tomake sure that the value, the
appraised value, meets the offerthat you're submitting, because
, like, yeah, you're submittingan offer with the compensation
included in there.
If, let's say, you'resubmitting 730, right, 730,000
for a property and it includesthe commission there to be paid
(10:06):
out through seller concessions,then that means when the bank
appraises that property, it hasto come in at $730 or above so
they're able to essentiallycover the compensation within
that loan.
Now, the third way that theagent can be paid is basically
that the buyer pays out ofpocket.
Essentially, and most of thetime it's going to be probably
(10:32):
the seller's going to pay thewhole thing or a big portion of
it.
At least, that's what we'reseeing right now.
Just have that in mind.
Right, your agent is going todiscuss that with you, basically
outlining those three methodsof how they're going to get paid
, because it's very important,right?
No one works for free.
You got to put money, you gotto put food on the table for
your family and whatnot.
Yeah, just know that that'ssomething that's implemented now
(10:53):
In our brokerage.
Right, we have to do threedocuments.
So you're going to be hit withthree things at once, and that's
going to be the buyer brokerageagreement agency disclosure,
which outlines our obligation toyou.
Buyer brokerage agreementagency disclosure, which
outlines our obligation to you.
And the third one would be theanti-discrimination, your right
to not be discriminated against,and whatnot.
(11:14):
So, yeah, those are the threeforms for sellers.
What has changed, do you know?
Speaker 1 (11:18):
august 17.
This it went in effect forbuyers.
So I'm I'm actually excitedabout it.
Why?
Because everything will be nowstructured.
Now you will know exactly forthe seller and the buyer will
know exactly where thecommissions are going, who's
getting paid, how much eachperson in the transaction, each
realtor, is getting paid.
So now it's more professional.
(11:39):
In my opinion, it's moreprofessional and beneficial to
the buyers and the sellers.
Speaker 2 (11:43):
Everything is in writing now.
Speaker 1 (11:45):
It's extremely more professional and it's more
straightforward to what we'redoing On the seller.
So now sellers have the optionof paying buyer commission or
not.
That's what changed for thesellers?
It's beneficial for the sellersbecause some sellers are going
to offer and some sellers arenot.
Sellers are not obligated tooffer buyer commission right,
only for their listing agent.
(12:07):
They will be paying for theirservice, so they have the option
.
It's going to be more sellerconcession than anything my
opinion, but we'll see whathappens.
Right, it just went into effectthe first year.
In my opinion, it's going to bea roller coaster, right, it's a
lot of.
It's huge in this industry,right, been like this for years
that the seller pays for it.
It's going to be a rollercoaster.
Stay tuned.
It's going to be a whole year.
I'll give at least a year ormore for everyone to basically
(12:30):
get used to it.
Right, it takes time for peopleto get used to right.
When right when gas prices wentup, everyone was panicking.
You wasn't even seeing trafficand then within two, three weeks
, you started seeing traffic.
So it's about we getting usedto it, but it's going to take
time for everyone to adjust toit.
Speaker 2 (12:46):
Yeah, absolutely, because now a lot of agents are
basically calling other agentsto see how the seller wants to
move forward.
Are they giving compensation oranything like that?
And I know you've been on theother end where you're being
called so many times to say, hey, are you guys giving
compensation?
Because I want to see if thatfactors into the offer and all
(13:09):
of that and yeah, so my roots isout there.
Speaker 1 (13:12):
I love you guys, but I prefer text or email.
So many calls coming in at once, right, but this is an nar
started.
Right, we've got to follow thelaws and the rules understand it
.
Speaker 2 (13:23):
But I'm more with the texting and the emailing and,
of course, reaching out to myteam yeah, and if any other
realtor is watching right, how Ithink our team wanted
structured is that you can justput the compensation, whatever
the compensation structureyou're you're putting together
in in the offer sheet itselfyeah in the writing yeah because
(13:43):
then we we both have it inwriting and, uh, so like in the
additional terms of your offersheet, you could just put we
want the seller to compensatefor the buyers.
Um, buyers brokerage free, orsomething like that yeah, that's
the as you guys put in.
Speaker 1 (13:57):
I think it's the best way to do like that.
Like when you agent submitoffers, just put it right right
in your offer.
So your offer sheet would sayyour compensation as well, so
seller could see it.
Speaker 2 (14:07):
Which is great about it now is that when we receive
offers now, the seller can signit also the offers that we
receive right and uh, everythingis going to be basically uh,
given to the, to the seller, andif the numbers make sense, the
seller will go with it, nomatter if it's compensation or
not.
It's all numbers game.
If you submit a strong offerand uh, you're um, you're
(14:29):
wanting to get a commission ofwhat?
X percent?
Right, if the numbers makesense, you're always going to
get the deal, no matter what.
Speaker 1 (14:38):
I agree with you, angela 100%.
Speaker 2 (14:40):
That covers pretty much like the new roles that
came into play.
I think something that you knowhas been circling the news a
lot is this whole P Diddy thingright.
Speaker 1 (14:50):
P.
Speaker 2 (14:50):
Diddy, and the reason why we bring it up is because
he has a mansion that he'sselling right for $61 million,
and when we saw that, we're likewow.
Speaker 1 (15:01):
Where's this mansion at?
Speaker 2 (15:02):
I believe it's in.
Speaker 1 (15:03):
Los Angeles, I saw.
Speaker 2 (15:05):
Yes, in Los Angeles, some exact location, but I
believe he's selling it for $61million.
Okay, and I think he bought itfor like $34 million.
$34 million, let me see it was.
I believe it was 39 million, 39million, and he's selling it
for how much?
He's selling it for 61.
So a total profit of 32.
Speaker 1 (15:24):
What year he bought it, on what year?
Speaker 2 (15:25):
He bought it in 2014.
Speaker 1 (15:27):
Wow, so he got exactly 10 years with it, yeah,
and now he's making.
How much in profit 32 million,million.
You hear that Literally he'sgetting almost 100% profit out
of it.
Speaker 2 (15:39):
Yeah, that's amazing guys, that's incredible.
We should buy it.
Speaker 1 (15:43):
Oh my God.
I mean he's selling it at theright time, right?
Oh, you know he's going to havea lot of legal fees.
Oh yes, he's selling it at theright time, but the best example
of it is that look how much youbought it for and look how much
you're selling it for.
Guys, right, and that's for allof us.
You know everyone that ownsreal estate, everyone that
creates their portfolio.
You're always sitting on equityas the years go by.
In real estate, it's really nolosing market.
(16:06):
Go shift could go down, butit's gonna go right back up.
Guys, in real estate, I feellike it's more win to anything,
right, but of course, in realestate it's a roller coaster.
You know, like any otherbusiness, you got your ups and
down right when you're doingyour rentals right with your
tenants, they got ups and down,but I'm gonna say it's more
beneficial than anything andthat's just like one example of
appreciation going crazy upright that's crazy yeah, like my
(16:29):
friend, for example, who livedin the south bronze, his grandma
bought a property back in theday for like around I want to
say like 300 something thousand,and now it's worth over 829,000
.
Appreciation is always wins onit.
Speaker 2 (16:44):
Yeah.
Speaker 1 (16:45):
Instead of renting.
It's always appreciation andowning a property so much
beneficial.
But wow, emily, puff Daddy isPuff Daddy, sean Daddy I don't
even know what name he has.
Speaker 2 (16:56):
He has like 10 names, sean Combs or something, sean
Combs, you know all those things, but that has been going
Through my social media All thetime so many articles About new
things coming in and also thatthing Correlated with Eric Adams
.
Speaker 1 (17:09):
Another thing with the mayor.
But I would say, like, I'll behonest here, I'm so against
doing wrong.
Justice for those people, ifit's true and they prove him
guilty because he's not guiltyyet right, they got to prove him
.
But I'm so strong on doing theright things, I'm so strong on
karma.
Right, you always got to do theright thing.
That's right.
In our business.
I always tell my team andmyself we always got to do right
(17:31):
for our clients.
It's going to come right back.
I know he was probably therichest guy, he's one of the
richest guys and he's out there.
But when you're doing wrong,you're consequencing.
Regardless of who you are,you're going to pay for your
consequence.
I hope that whatever ishappening with him, you know
it's for the right, you know andfor the community, and you know
and I appreciate the justicethat's protecting the community.
(17:52):
If all this um stations is true, right, we don't know right,
this is a case that's going togo for a while.
I am interested to see how itends.
Right, because you candefinitely see that he felt like
he was on top of the world.
Speaker 2 (18:05):
Right.
Speaker 1 (18:05):
Right and his actions speak for itself.
You know, growing up I heard alot of stories about it, but you
know now we see it going intofederal justice system, so it's
going to get interesting.
I think that's going to be along ride for him.
Right, because you know he'sgoing to come in with his legal
team very strongly and I knowthe feds are going to come in
(18:32):
with their legal, which we leaveit to them to handle.
Right, right, always do theright thing.
Guys.
Try your best to always do theright.
They never do wrong to others.
What you want and like to bedone to yourself.
Always do right to others, andthat's one thing that we're
strong about is always doingright to others because we want
the right.
We want to always do the rightfor others, yeah absolutely,
absolutely.
Speaker 2 (18:45):
I mean with all of our clients.
I think we put doing right bythem at the priority, also
because we have fiduciary dutyto hold their best interest at
hand, and when you do such agreat job, we get a lot of
referrals because of that.
Speaker 1 (19:00):
Yeah, we get a lot of referrals.
I mean, business right now isbooming.
It's all referrals.
Pretty much, to be honest withyou guys, it's mostly referrals.
We have a great team of guys.
Also, heidi is our mortgagebroker, which is my wife.
Heidi she's with Gold Rascal.
She's available.
She answers any questions youmay have or you want to prepare
yourself within a year to buy ahouse.
She also goes and helps themout, guiding to get the
(19:24):
pre-approval and get qualifiedthe best way.
Even if you're preparingyourself, we're there for you.
Any questions you might have,reach out to Heidi for the
mortgages.
We are the realtors, the realestate broker.
I'm the real estate broker,we're realtors here.
Any questions you guys may have, we're here for you.
Please don't hesitate.
I know a lot of people arenervous or scared to reach out
to us.
Reach out to us.
(19:44):
I promise you we're going togive you guys great information
and yeah, we also guys.
Very soon we're going to startpreparing buyers on seminars
once a month at our office.
We're going to be doing aninvitation to everyone to come
out, get some information.
We'll have food, drinks.
We'll make it very fun for youguys.
But more than anything, we wantto get the message out there is
(20:06):
buy a house, guys.
It's so much beneficial to it.
I won't stop saying it becauseit's more beneficial than
anything.
Right, instead of going buyinga car of the year, instead of
filling up your credit cards,buy a house for your family.
Create those dreams for yourfamily.
That's more important thananything right.
Speaker 2 (20:21):
I mean, yeah, I have no nothing else to add to that.
I think, um, yeah, just uh,take advantage of the
opportunities you're given.
Speaker 1 (20:29):
And one last thing I just want to share with you.
Heidi had mentioned to me, tous, that they are offering a lot
of grants for first time.
Buyer, reach out to Heidi.
There's tons of grants she'soffering and yet we're here for
you guys.
I just want to end it with this.
This is Sudo with Buys Podcast.
We're here for you guys Like,subscribe, ask questions, and
we're here for you guys.
All right, thank you guys.
Speaker 2 (20:51):
Bye guys.
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