Episode Transcript
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(00:00):
The following is a paid commercial programon ninety four three WSC. The views
expressed by the host of this programdo not necessarily reflect the views of iHeartMedia
ninety four three WSC, it's advertiser, sponsors or management. This is The
Real Estate Show with Rick Willis.I show about home sales, mortgage issues,
investing at everything about the American dreamand I mean to want. That's
(00:22):
someone who enjoys radio and really enjoysyour program. And now The Real Estate
Show with Rick Willis on ninety fourthree t SC. Hello Charleston, Welcome,
Welcome to the Rick Willis Real EstateShow. Well, folks, we've
been on the air now for twentyplus years and it's a pleasure to have
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you listening today. Always there arepeople that catch the show for the first
time, and we have people thathave been listening for almost two decades to
the show. So regardless of whetheryou're new or have been listing ongoing,
there's probably something here for you ifyou're interested in real estate. And I'm
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going to have some things to saytoday about residential real estate, commercial real
estate, vacant land, and investmentproperty. So if you have an interest
in any of those things stick aroundand we'll talk about something that you have
an interest in well. As ofthis morning in the local area, there
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are two thousand and three hundred andseven active residential listings. Now I've been
saying from week to week that there'sbeen a shortage of listings. There's still
a shortage of listings. According tothe experts, the norm should be about
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six thousand active listings. That wouldput a balance on the market conditions.
You see, when there's a shortageof listings, it's a seller's market,
and when there's an abundance of listingsout there, it's a buyer's market.
So the balance point would be aroundsix thousand, and I mentioned we have
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two thousand, three hundred and sevenas of this morning, which means it
is still a seller's market. Iam a realtor that will both list property
for sale on behalf of people thatwant to sell, as well as work
with buyers, and I have foundthat it is still a brisk market out
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there, as all of you knowthat are listening. The interest rates went
from two and a half to threeand a half percent for a number of
years now over six percent, andthat caused a dramatic slowdown of people that
we're looking to buy, kind ofa shock factor, if you will.
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But I believe that the shock isnow over. I believe that those people
that are looking to buy actually believethat the rates are not going to decline
anytime soon. And I believe thepeople that are looking to buy also believe
that prices are not going to declineon the properties that are out there for
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sale. As a matter of fact, they continue to climb, and they
continue to climb nationwide. I havea number of things that get sent to
me online from many different sources,and I had something that showed up on
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my inbox this morning and the headlinesaid home prices in these five counties grew
the most since last year. Nowthis is a national publication, so it's
not just talking about Charleston, butthese five counties grew the most since last
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year. And if you can believethis, the number one county and growth
increase median sales price year over yearwas Saint Louis, Missouri nineteen percent.
These were the top five counties yearover year. And then there was Broward
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County, Florida, which is aFort Lauderdale market seven percent, Miami Dade
County, Florida seven percent, FultonCounty, Georgia, which is Atlanta six
percent, Palm Beach County, Floridafor excuse me six percent, that's West
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Palm Beach. Now those are yearover year, that are counties, and
those were the top five. Nowthat being said, home prices across the
US had the highest quarter to quartergain since two thousand and fifteen, as
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potential homebuyers are getting pushed out ofan increasingly expensive market. Now, those
two things are not related, butthey're in the same article, in that
there are counties that are gaining rapidlyin the short term and there are counties
that are gaining all over the USin the long term. The median single
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family home of value rose ten pointtwo percent from the first to the second
quarter of two thousand and twenty three, and again I'm speaking about the entire
US. First quarter of two thousandand twenty three to the second rose ten
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point two percent. Median single familyhome I guess quarterly increase in almost the
past decade. Median home price infive hundred and sixty five of five hundred
and seventy four counties analyzed in thereport were less affordable than the prior quarters,
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more than double the number of countiesthat were unaffordable two years ago before
the mortgage rates went up. Thismeans that only two percent of counties examined
were more affordable than their historic averages. Now, let me slow down here
a minute, because I want thisto sink in. I've always maintained that
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here in the greater Charleston, SouthCarolina area, that we were in a
very fortunate place to have people wantingto relocate, both retirees, students,
people that are going to be workinghere, corporations. So we've always talked
every time I'm on the air thatyou South Carolina and particularly the Low Country
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is kind of insulated from what's happeningin the whole US. But here I'm
reading an article that talks about theentire US marketplace less affordable than the prior
quarters. Now it goes on tosay that, yeah, buyers are feeling
the pinch, but no longer arethey sitting on the sidelines waiting. Now,
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assuming that more and more buyers aregoing to be jumping into the pool
of buying and not waiting for pricesto come down or waiting for interest rates
to come down, what is thatgoing to do to the law of supply
and demand. Well, I don'tsee it having any impact on people putting
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their homes on the market. Imean people that are going to sell are
going to sell, and people thatare going to be buying, which is
probably going to increase now as peoplerealize the prices aren't going to decline in
the interest rates aren't going to declineanytime in the near future, are going
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to be jumping back in. AndI can tell you from personal experience that
somebody who's worked with a lot ofinvestors in the past, once these interest
rates started shooting up, they reallypulled back and said, well, no,
the numbers don't work anymore the waythey used to work. I can't
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get the cash flow. But here'smy real belief. My belief is,
you know, the very same peoplethat pulled back and said, no,
I'm not going to be buying,I'm going to wait for prices to decline
or interest rates to decline. Ibelieve, in addition to home buyers homeowner
occupants, I believe the investors willbe coming back into the market. In
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fact, I'm arting to see itright now, come back into the market
that they still realize that the realestate segment of the market is a safer
segment to have their money than thestock market. So for people that have
historically been focused on the stock market, even though overall a year to date
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the stock market is up, there'sstill a rather great possibility of volatility of
going up and down. Looking inthe long term, folks, when we
talk investment, we can't just bethinking of what's happening this week, this
month to the dal Jones Industrial Averageor NASDAK. You've got to be thinking
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long term. And if you area long term thinker, which is how
you should be looking at your fouroh one k or ira, you're going
to realize that even though it's upthis year, the right place to have
your money for safety, security,growth and income is investment grade real estate.
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Yep, you're going to have toput more down payment down to get
your cash flow, or you're goingto have to buy a different price point
or even possibly a different geographical locationor type of property. But it's still
out there. And if you wantto have that conversation with me about buying
a primary home or an investment property, reach out to me. I want
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you to call me directly, andif you don't get me, leave me
a very specific message about getting backto you so we can meet. My
phone number for you to reach outto me is eight four three three two
seven three zero one seven. Emailme please, and this is going to
be a different email address than I'vegiven you in the past. Our Willis
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team at gmail dot com. Theletter R Willis WI L L I S
team to E A M at gmaildot com and let's pick a time we
can meet, we can chat,and I can educate you about what might
be in your self serving financial bestinterest. Folks will be right back after
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this break. If you have realestate questions, or if you need a
market analysis on your property, callRick right now at eight four three three
two seven three zero one seven,or you can email limitt Rick at Rickwillis
dot com. Check out Rick's bioand access all properties on the MLS at
Rickwillis dot com. Welcome back,Welcome back, Charleston, Welcome back to
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the second segment of today's Rickwillis RealEstate Show. Well, some of you
know that occasionally I put a tapein of a previous show. That's what
happened last Saturday. I had theopportunity of traveling to the state of Florida
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Orlando. I should have flown,but I drove long drive. You remember
all the thunderstorms we had here,Well I had those all the way down
to Orlando, Florida last week andwasn't very much fun. But I got
a chance to see my grandson ofeleven and a half years old, playing
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in a basketball tournament. My daughtermarried a gentleman that lived in southern California,
Los Angeles area. That's where shelives, That's where my grandson lives.
And although I do get out toCalifornia to see them a couple of
times a year, I wanted tosee my grandson in a real basketball tournament.
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There were over two hundred different teamsplaying in Orlando. Now, these
are not school teams, which iswhat we tend to think of when we
think of a basketball game for peopleof eleven years old. This is a
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regional team and they try to pickthe best players from the area and certain
age groups. And he's in thefifth grade, so this was a fifth
grade tournament. And I could notbelieve how good fifth graders can play basketball.
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And they even had third graders playingbasketball in a league in a tournament
where again it's from a geographical areaand they go all the way up to
age eighteen. But boy was itsomething to watch. There were twenty different
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teams in his bracket, and mygrandson named Wyatt. His team came in
fifth, and it was a pleasureto see the good, the bad,
and the ugly. So when you'relooking at fifth graders, they're still learning
the game, of course, butman, they've got kids that can dribble
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and shoot three point shots. Andanyway, long story short, I had
a tape in last week and thisweek you're hearing me live. But I
guess you never know, the sameshow could come back at a future date,
right, and you wouldn't know ifit was live or not. Anyway,
that being said, we've talked aboutthe status of the market. I
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believe the market in the greater Charlestonarea is going to keep on strong.
I see no indications that things arebacking off. I see people constantly relocating
here. I see young people thathad been sitting on the sidelines deciding it's
time to jump in. And asa matter of fact, I helped a
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buyer purchased this past week who hada real struggle. We had been looking
for quite a while and finally hefound the right home and put it under
contract. Multiple offers on the respectiveproperty way out in the country. You
ever heard of a place called Utahville, Well, it's up near the lakes
and actually in Orangeburg County. Butthat being said, he got a really,
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really nice single family home under contract, twenty four hundred square feet about
three hundred thousand dollars and he's onhis way. And what surprised me was
of the multiple offers, his offerwas contingent on the sale of his home,
which I now have listed. Butyou know, I thought, gee,
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with multiple offers and his contract contingenton the sale, that they wouldn't
be selecting his But his price pointwas such that they did go with it,
and we're happy anyhow. That beingsaid, the market is strong,
the market is good. My ownbelief is we're going to be seeing three
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to five percent appreciation on Charleston areareal estate this coming year. And it's
there right now. And again itdepends on the area, the type of
property, the price point that you'relooking in. But don't sit on the
sidelines. Get yourself a preapproval letter, get yourself a relationship with a buyer's
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agent and start looking at listings ona daily basis. I have a listing
in Somerville that I had someone driveby and see the sign on yesterday,
And after they asked a number ofquestions and I answered the questions, they
discovered that that property really was notthe right one for them. And I
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asked them, I said, bythe way, do you have a relationship
with a real estate agent that issending you listings on a daily basis.
The answer was no. I said, well, I'd be glad to provide
that information for you if you like, but if you're serious about buying,
you do want to know what iscoming on the market on a daily basis.
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Well, make a long story short. These folks were for better or
for worse. I'm going to doit myself kind of people. Well,
we like to drive around and sometimeswe see a sign, and sometimes we
see a for sale by owner,and sometimes we do this. Sometimes we
do that. I said, well, you certainly can still do that,
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but wouldn't you like to at leastbe exposed to properties that are coming on
the market that you might not driveby. And they were very resistant and
I guess some people feel like theydon't want to be sold, and certainly
not my desire or impression that Iwanted to do that. Just inform them,
and if they chose to call meto be their buyer's agent, then
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so be it. But for thoseof you listening properly, are still selling
quickly and the ideal property for you, you want to see it first,
don't you. So if anybody that'slistening would like to receive daily updates of
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properties that could meet your criteria,please reach out to me. Let me
set you up on a daily search. And if you don't have a preapproval
letter yet, you need to getyourself one. And perhaps the best place
is not where you bank. That'show people typically think. You see where
you bank, you are not someonespecial when it comes to mortgage lending.
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They have their policies, there havetheir procedures, they have their loan programs.
And trust me when I say Idon't care where you bank. You
are not something special when it comesto getting a better interest rate or term
or loan program. Were at themercy of that respective bank or credit union.
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But I can put you in touchwith somebody that has access to fifty
six different lenders throughout the United States, many different loan programs, and it
can all be done with a phonecall. One phone call to my favorite
guy, Jason Rosenthal. And he'smy favorite guy because he gives the best
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service, has access to multiple differentlenders in different states, and in addition
to all that, he's very knowledgeableabout what it is that might be best
for you and very competitive on rates. But right over the telephone, he'll
ask you a few questions and youget a letter that said, based on
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your income, based on your creditrating, your credit report, and based
on other things that are going onin your financial life other debts that income
ratios, you can qualify for ahome loan up to blank amount. Now,
if you're listening to me and youdon't have that letter, you want
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to reach out to me so Ican give give you his contact info.
Plus, at the same time,set you up on an automated daily search.
Now you can actually go and setyourself up on a daily search.
Numerous websites. You can do that. Well, why should you call me,
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then answer? Because I know thearea so well, types of property
so well. I promise you I'llset you up with a better set of
criteria than you would on your own. So reach out to me Rick Willis
eight four three three two seven threezero one seven. Phone call is ideal
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for this really difficult to do withemail or texting, and we have a
conversation. I set you up onthe automated search. And if you're so
inclined to want me to represent youas your buyer's agent, and you do
want a realtor to be your buyer'sagent who's not the listing agent, then
we go take a look at theproperty. But at least you're prepared.
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You've got your pre approval letter upto the maximum amount you're qualified four and
you've also getting listings daily and Ipromise you I can get you into to
be the first one there if youreach out to me. So reach out
to me eight four three three twoseven three zero one seven. Email me
(21:36):
R Willis Team at gmail dot com. The letter R Willis WI L L
I S Team Team at gmail dotcom. Folks will be right back after
this break. If you have realestate questions or if you need a market
analysis on your property, call Rickright now at eight four three three two
seven three zero one seven. Oryou can email them Rickwillis dot com.
(22:02):
Check out Rick's bio and access allproperties on the MLS at Rickwillis dot com.
Welcome back, Welcome back, Charleston, Welcome back to the third segment
of today's Rick Willis Real Estate Show. Well, folks, for those of
you that don't know who I am, I am a local real estate broker.
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I relocated here to the Low Countrytwenty five years ago. I grew
up in the state of Maryland,raised my family outside of Baltimore in a
little place called Ellicott City, Maryland. I personally grew up about five miles
outside of Washington, DC, rightnear the University of Maryland College Park.
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Lived in the Annapolis area, livedin Ocean City, Maryland, and after
my kids left home, they wentto school in California and Florida to respectfully
and have their own families. Nowand at the time, I was traveling
the US training real estate agents fora living, I didn't need to live
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in the Maryland area anymore because Iwould get on airplanes and travel to some
other place to teach real estate agents. I decided that I liked warmer than
colder, so I wanted to movesouth. Checked out Virginia Beach, Wilmington,
North Carolina, Charleston, and hadthe intention of going to Jacksonville,
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but you know, too hot,too cold, just right. I got
as far as the Charleston area andsaid, Nope, this is perfect.
I don't need to go anywhere else. I got into the real estate business
here locally in two and two andhave had over a thousand transactions since that
time. And I can probably helpyou because I am on the radio show.
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I get calls from all over thearea. I've learned the entire Charleston
marketplace, and I've discovered that evenfor people that have grown up in the
area or lived here for decades,that I'm able to steer them towards some
places that they weren't quite knowledgeable about, didn't quite understand or know about.
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So if you're looking to buy anywherein a greater Charleston area, at very
least have a conversation with you.And if you're thinking of selling your property,
any kind of property, reach outto me. You want my opinion
of your value, you want toknow what I think is needed to get
(24:40):
your property sold, and you wantto hear about my negotiable commission rate.
If you're thinking of selling, youshouldn't be paying any more than you need
to to get your property sold.And sometimes it's an easy task to get
a property sold. Sometimes it's moredifficult, Sometimes more money needs to be
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spent, time spent than others.But you want to know what I know
about what it's going to take toget your property sold. So invite me
over to do a market analysis ofyour property. We'll chat about it,
and there's no cost and there's noobligation. So reach out to me.
Okay, Well, that being said, let's continue with the show. Now,
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those of you that did hear theshow last week or even the week
before, you heard me speak aboutprivate mortgages, private mortgages where it's possible
for you to get anywhere from eightto twelve percent in a private mortgage.
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Now, why should you care abouta private mortgage? You see, you
would be the lender. I'm talkingto those of you that have money in
brokerage accounts. I'm speaking to thoseof you that have money in the stock
market. I'm speaking to those ofyou that have money in the bank at
anywhere from three to five percent.Wouldn't you like to get eight to twelve
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percent secured by a mortgage. Well, I developed that concept last week show
week before that show, which youcan hear. By the way, if
you go to my website, I'vegot a podcast that will allow you to
hear that again. Rick Willis dotcom, which is my website. And
(26:32):
I had two separate people call methat had an interest in hearing more information,
one of which committed to fifty thousanddollars mortgage on a property twelve percent
interest for about a three year payoff, where the person would make monthly payments
for three years at twelve percent interest. Now, most of you heard that
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and like the idea of eight totwelve percent, but you didn't call me.
Why wouldn't you at least call meto find out more about it if
you have a question or concern.You see, when you put your money
in the bank, it's not inthe bank. The bank is lending your
money out at a higher rate,which is why they can afford to pay
you the four to five percent thatthey pay you because they're lending your money
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out at a higher rate. So, since your money is not in the
bank anyway, it's being lent outby the bank at a higher rate,
why don't you consider putting your moneywhere the bank puts its money to pay
you the four to five so youcan get eight to twelve. Well,
again, I'm not going to developthat the way I did in my past
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two shows, but I just wantyou to be aware that that's available for
you, and you want to becalling me before there's a need. And
for some of you, you wantto be self directing your four oh one
K or IRA there. Yeah,make sure you understand that if you have
a four oh one k an iraa retirement program, that you can convert
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that from the custodian that you currentlyhave it with to what is called a
self directed IRA self directed for aone K and that's self directed four O
one K, which would be ina local bank. Could invest in a
mortgage. Now, these mortgages areusually anywhere from one to three years.
(28:30):
Short term mortgages could be up tofive years. I had another individual that
I placed alone for this past weekat for five years a certificate of deposit.
Well, it's probably safer than youhaving your money in the stock market
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with the volatility there. You wantcertainty instead of uncertainty. Invest in Charleston
area real estate or invest in aprivate mortgage. So anyway, I don't
want to be labor that, butI want you to reach out to me
and let's have a conversation about it. Let me know the amount of money
you'd like to have out, theminimum interest rate that would be acceptable for
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you, and I'll see if Ican make that happen on your behalf.
Okay, So in the beginning ofthe show today, I said I was
going to make some comments about differentkinds of real estate, and I'd like
to switch gears and do that rightnow. Basically, you've got four different
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types of property. You've got apersonal residence you can live in, You've
got vacant land, you've got commercialreal estate, and then you've got non
owner occupied property or investment property.And they all are a little different in
terms of what you should know aboutthem, how you go about buying them,
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what you need to look for inwhat is called due diligence, and
how you finance them. And Ican't give you an in depth scope of
that right here, but I cangive you an overview. So your personal
residence, don't assume that you knowwhat is best for you by way of
financing. You see someone like myself, who's been in the real estate business
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for decades and decades and decades,knows a lot about different types of financing.
I advertise that I can get youbelow market interest rate. That's right.
If you're a buyer, there's away to get you below market interest
rate. And it could be byway of knowing a certain lender who's got
(30:48):
access to a certain mortgage program.It could be by getting the seller to
pay some points so you can geta buy down. And it could be
by where the property is located orthe type of property that it is that
you might be eligible for another specialtype of financing. And you don't know
(31:14):
what I know about getting you belowmarket interest rate financing, so you might
want to give me a holler ora call and speak with me about that.
But there's different kinds of financing forresidential property that you own or occupy,
as different from land or commercial propertyor investment property. Land, for
(31:36):
example, you don't go to themortgage broker, and you may not even
go to your local bank because theymight not have an appetite for a vacant
land, a lot or acreage.It just might not be in their zone
of what they're looking for, soyou go to somewhere else. So when
it comes to land, I knowwhere to send you to get the right
(32:00):
kind of financing. And it's differentfor whether it's acreage out in the country
and how many acres it is versusa platted lot in a subdivision. You
want to make sure you go wheresomeone specializes in vacant land. And in
vacant land you don't get a thirtyyear fixed rate loan like you do on
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a single family home that you're goingto live in. The ground rules are
different. Land might be a tenor fifteen year amortization, or if you're
going to be building on it,it might be a one year term for
the land to be converted into aconstruction loan to be converted into a permanent
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financing. With one closing, differentways of approaching land. Whether you're going
to just hold it for a while, are you going to subdivide it,
are you going to build on it? And how soon are you going to
build on it? Commercial property nowcommercial property, and when I use the
term commercial, that could be anythingfrom an office building to a mobile home
(33:10):
park to you name it. Itcould be an industrial warehouse. Commercial could
be a shopping center. Commercial financingis different. Yet there are different lenders
that have an appetite for commercial loansand others that say, I'm sorry,
we don't even do commercial loans.So you don't start with your local bank.
(33:37):
You start with finding a bank thatlikes and has an appetite for commercial
and by the way, they areoftentimes your smaller banks, your regional banks,
or just maybe one or two branchbanks. Commercial and a commercial bank
will keep a loan in what iscalled a portfolio status. They will lend
(34:02):
the money from assets that they havein the bank. And you're not going
to get a thirty year loan fixedrate loan here. Either. You might
get a ten to fifteen year fixedrate loan, but it's highly likely that
it's going to be a five yearterm where they can change the interest rate
(34:23):
at the end of five years.Based on the market conditions. Commercial down
payment, you're going to have anywherefrom twenty to thirty percent down Are you
going to own or occupy the commercialproperty or is it just a third party
investment for you. Vacant land goingto be anywhere from ten to twenty five
(34:47):
percent down payment. Personal residence financingcould be zero three. Different ways you
can buy residential property with zero downpayment. Work could be three percent,
three and a half percent, fivepercent, etc. What about investment property,
things that you're going to rent outto other people, Well, the
(35:12):
down payment could be anywhere from fifteento twenty five percent, depending upon is
it a single family residence, isit a multi family property? Is it
one unit, two units, threeunits, four units? What is it
exactly? And the interest rate isgoing to be more than a principal residence
too. Lots of different things.So folks reach out to me Rick Willis
(35:37):
if I can help you answer anyquestions about buying, selling, or investing.
I've done this a long time andI can help you. Call me
directly Rick Willis eight four three threetwo seven three zero one seven, Visit
my website Rickwillis dot com Rickwillis dotcom and reach out to me and let's
have a consultation. If you havereal estate questions or if you need a
(35:59):
market analysis on your property, callRick right now at eight four three three
two seven three zero one seven,or you can email them at Rick at
Rickwillis dot com. Check out Rick'sbio and access all properties on the MLS
at Rickwillis dot Com. Welcome back, Welcome by Charleston. Welcome back to
(36:20):
the final segment of today's Rickwillis RealEstate Show. Well, the last segment,
I was quickly trying to wind itup because I thought that my segments
were over for the day. Andwhen the last segment ended, my producer
reminded me that, oh, Ihad one more segment to go, and
(36:45):
I said to myself, that's agood thing, because I really didn't finish
what I wanted to finish with talkingabout different kinds of property. Well,
the previous segment we talked about residentialproperty, vacant land, commercial and residential
(37:06):
investment property. That the financing isdifferent, that the length of time that
you get a loan is different,that the interest rates are different, down
payments are different. And you don'twant to just approach where you bank,
which is the tendency, because hey, when you talk about lending money,
(37:30):
you think about going to your ownbank. Well, there are banks,
large banks, regional banks, smallbanks. There are credit unions, and
there are what are called mortgage brokers, and there are mortgage bankers. And
(37:52):
when you're in the business for awhile, you learn where to go for
what type of property and what typeof buyer and what type of use that
you have. It's different, andfolks, that's where the real estate agent
earns part of the fee that theyearn that you don't have to pay them
(38:15):
if you're the buyer. See,if you're a buyer, you don't pay
a real estate broker anything. Itis the real estate broker receives their compensation
by way of the seller who signsthe listing and agrees that the time they
sign a listing that the listing brokergets a portion of the commission and the
(38:37):
buyer's agent gets a portion of thecommission. So you, the buyer,
don't pay any money to the localrealtor unless you sign a document agreeing to
pay a certain amount towards the commissionof the agent representing you. So you
want a buyer's agent always to representyou. And I've always found it interest.
(39:00):
In the Greater Charleston area there's oversix thousand licensed real estate agents,
and I don't believe the average buyerreally understands the difference between their friend and
the business, the person they goto church with, and someone who has
done hundreds and hundreds, if notthousands, of transactions in their career.
(39:22):
It's something called experience, and youwant to make sure if you're listening and
you personally, your parents, yourson, your daughter is going to be
buying real estate, they work withsomebody who's extremely experienced in this business because
it will mean getting the house theywant or not getting the house. Yeah,
it's that significant, or getting thebest financing, or getting the seller
(39:45):
to do the repairs that are neededon behalf of you, the buyer or
your son or daughter, or parentor grandparent if you will, or grandchild.
The agent makes the difference. Socareful who you select to be your
buyer's agent. Make sure they've donethis hundreds of times and are good at
(40:08):
it. I mean, there's theknowledge part of being a realtor, and
then there's the skill part of beinga realtor negotiating, etc. The knowledge
of contracts and how to write them, the knowledge of financing. And then
(40:29):
you're going to have a home inspectiondone right, Well, why wouldn't you
in this day and age? Areyou going to do your own inspection?
You're going to get a license contractorare you going to get somebody who only
does home inspections? Do you knowwho the right company to do the home
inspection is do you know which onesare really nitpicky? Do you know the
(40:52):
agent that you work with, arethey going to be able to bring a
contractor out to the home and letyou know what it's going to cost to
fix certain deficiencies. So maybe maybethe agent that you work with should have
access to people that can help youwith regardless of the type of property.
(41:13):
You know, they can check thewell. If it doesn't have public water,
you can get somebody out there tocheck out the septic system, if
it doesn't have public sewer. Theycan verify the zoning and permitted uses.
They can let you know can youhave another dwelling unit on this same property?
What is it that you need tocheck out? An experienced agent in
(41:37):
the kind of property you want cantell you about that. I had an
offer come in on one of mylistings this morning. It was a commercially
zoned piece of property on Highway oneseventy six in Somerville. Well, they're
asking for a four month due diligenceperiod, four months to seller take the
(41:58):
property off the market, four monthsto check it out. I don't think
so, at least not for whatthey're proposing they want to take it off
the market for a thousand bucks ifthey don't go through with it for four
months off the market. Now Iknow my seller. My seller is not
going to agree to it, andI'm going to reinforce that. But what
(42:19):
we might do, we might say, Okay, we'll take a thousand fee
if you don't go forward with it, and give you thirty days due diligence,
and then if you want an additionalthirty days, maybe three thousand additional
dollars, all of which nonrefundable.And then if you want an additional thirty
(42:43):
days, maybe six thousand. Somaybe by the end of the ninety day
period they've got ten thousand dollars ofnonrefundable deposit put up, and if they
buy it, it goes towards purchasingthe property. But just a little creative
way of make sure that we're dealingwith somebody that doesn't just want to tie
the property up and prevent somebody elsefrom getting it. So little things that
(43:09):
make a difference. You want tomake sure you select a buyer's agent that
understands all of these nuances. Andby the way, most of you that
are listening if you're going to bebuying, we'll be buying a residential property
to live in or to rent out. And what you're going to find is
there's going to be issues with theproperty, probably, and it's customary that
(43:34):
we ask a seller to repair certainthings. And I have a question for
you. Do you think a sellerwould rather make a lot of repairs to
the property, or all things beingequal, would they like to just reduce
the price a certain amount and haveyou, the buyer do it, pay
(43:59):
some of your closing costs, andhave you the buyer, handle any and
all issues with the property. I'mgoing to say from experience, the answer
is yes. So when I havesomebody looking at a property and there's some
issues, I will get a contractorover there and go through the items that
(44:20):
are needed to be fixed and sayto you, the buyer, how about
if we just get a dollar amountcredit from the seller, either paid directly
to the contractor or a reduction ofprice or a credit towards closing costs,
(44:40):
and have you, the buyer,handle it rather than hoping the seller hires
the right people and fixes it theright way. Again, you must have
an experienced buyer's agent working with you. And by the way, if you're
a seller of our property, it'snot a bad thing sometimes to get what
(45:01):
is called a pre inspection where youbring in the home inspector instead of waiting
for the buyer to do it.Then you know what's wrong and what somebody's
going to find and you can eitherhave it fixed or prepare to have a
contractor come in and give you acredit or the amount of what it'll take
(45:22):
to fix it, which in turnyou can pass on to the respective buyer.
So long story short, whether you'relooking to buy a residence to live
in vacant land for investment or tohold, or to build a house on
commercial property that you're looking to buyor sell or investment property, you've got
(45:45):
to have an experienced buyer's agent ifyou're buying, an experienced listing agent if
you're selling, And folks, I'dlike to apply for that job. I
do this radio show one hour aweek and the rest of the time I
help people buy and sell real estate. Reach out to me if you are
someone you know is looking to buyor sell eight four three three two seven
(46:08):
three zero one seven, give mea holler. Email me R Willis Team
at gmail dot com. Visit mywebsite Rick at Rickwillis dot com or Rickwillis
dot com, I should say,is my website Rickwillis dot com. Folks,
have a great weekend, See youlater.
The following is a paid commercial programon ninety four three WSC. The views
expressed by the host of this programdo not necessarily reflect the views of iHeartMedia
ninety four three WSC, it's advertiser, sponsors or management. This is The
Real Estate Show with Rick Willis.I show about home sales, mortgage issues,
investing at everything about the American dreamand I mean to want. That's
(00:22):
someone who enjoys radio and really enjoysyour program. And now The Real Estate
Show with Rick Willis on ninety fourthree t SC. Hello Charleston, Welcome,
Welcome to the Rick Willis Real EstateShow. Well, folks, we've
been on the air now for twentyplus years and it's a pleasure to have
(00:44):
you listening today. Always there arepeople that catch the show for the first
time, and we have people thathave been listening for almost two decades to
the show. So regardless of whetheryou're new or have been listing ongoing,
there's probably something here for you ifyou're interested in real estate. And I'm
(01:07):
going to have some things to saytoday about residential real estate, commercial real
estate, vacant land, and investmentproperty. So if you have an interest
in any of those things stick aroundand we'll talk about something that you have
an interest in well. As ofthis morning in the local area, there
(01:30):
are two thousand and three hundred andseven active residential listings. Now I've been
saying from week to week that there'sbeen a shortage of listings. There's still
a shortage of listings. According tothe experts, the norm should be about
(01:51):
six thousand active listings. That wouldput a balance on the market conditions.
You see, when there's a shortageof listings, it's a seller's market,
and when there's an abundance of listingsout there, it's a buyer's market.
So the balance point would be aroundsix thousand, and I mentioned we have
(02:13):
two thousand, three hundred and sevenas of this morning, which means it
is still a seller's market. Iam a realtor that will both list property
for sale on behalf of people thatwant to sell, as well as work
with buyers, and I have foundthat it is still a brisk market out
(02:35):
there, as all of you knowthat are listening. The interest rates went
from two and a half to threeand a half percent for a number of
years now over six percent, andthat caused a dramatic slowdown of people that
we're looking to buy, kind ofa shock factor, if you will.
(02:59):
But I believe that the shock isnow over. I believe that those people
that are looking to buy actually believethat the rates are not going to decline
anytime soon. And I believe thepeople that are looking to buy also believe
that prices are not going to declineon the properties that are out there for
(03:21):
sale. As a matter of fact, they continue to climb, and they
continue to climb nationwide. I havea number of things that get sent to
me online from many different sources,and I had something that showed up on
(03:42):
my inbox this morning and the headlinesaid home prices in these five counties grew
the most since last year. Nowthis is a national publication, so it's
not just talking about Charleston, butthese five counties grew the most since last
(04:03):
year. And if you can believethis, the number one county and growth
increase median sales price year over yearwas Saint Louis, Missouri nineteen percent.
These were the top five counties yearover year. And then there was Broward
(04:26):
County, Florida, which is aFort Lauderdale market seven percent, Miami Dade
County, Florida seven percent, FultonCounty, Georgia, which is Atlanta six
percent, Palm Beach County, Floridafor excuse me six percent, that's West
(04:47):
Palm Beach. Now those are yearover year, that are counties, and
those were the top five. Nowthat being said, home prices across the
US had the highest quarter to quartergain since two thousand and fifteen, as
(05:09):
potential homebuyers are getting pushed out ofan increasingly expensive market. Now, those
two things are not related, butthey're in the same article, in that
there are counties that are gaining rapidlyin the short term and there are counties
that are gaining all over the USin the long term. The median single
(05:33):
family home of value rose ten pointtwo percent from the first to the second
quarter of two thousand and twenty three, and again I'm speaking about the entire
US. First quarter of two thousandand twenty three to the second rose ten
(05:55):
point two percent. Median single familyhome I guess quarterly increase in almost the
past decade. Median home price infive hundred and sixty five of five hundred
and seventy four counties analyzed in thereport were less affordable than the prior quarters,
(06:19):
more than double the number of countiesthat were unaffordable two years ago before
the mortgage rates went up. Thismeans that only two percent of counties examined
were more affordable than their historic averages. Now, let me slow down here
a minute, because I want thisto sink in. I've always maintained that
(06:41):
here in the greater Charleston, SouthCarolina area, that we were in a
very fortunate place to have people wantingto relocate, both retirees, students,
people that are going to be workinghere, corporations. So we've always talked
every time I'm on the air thatyou South Carolina and particularly the Low Country
(07:06):
is kind of insulated from what's happeningin the whole US. But here I'm
reading an article that talks about theentire US marketplace less affordable than the prior
quarters. Now it goes on tosay that, yeah, buyers are feeling
the pinch, but no longer arethey sitting on the sidelines waiting. Now,
(07:30):
assuming that more and more buyers aregoing to be jumping into the pool
of buying and not waiting for pricesto come down or waiting for interest rates
to come down, what is thatgoing to do to the law of supply
and demand. Well, I don'tsee it having any impact on people putting
(07:50):
their homes on the market. Imean people that are going to sell are
going to sell, and people thatare going to be buying, which is
probably going to increase now as peoplerealize the prices aren't going to decline in
the interest rates aren't going to declineanytime in the near future, are going
(08:11):
to be jumping back in. AndI can tell you from personal experience that
somebody who's worked with a lot ofinvestors in the past, once these interest
rates started shooting up, they reallypulled back and said, well, no,
the numbers don't work anymore the waythey used to work. I can't
(08:33):
get the cash flow. But here'smy real belief. My belief is,
you know, the very same peoplethat pulled back and said, no,
I'm not going to be buying,I'm going to wait for prices to decline
or interest rates to decline. Ibelieve, in addition to home buyers homeowner
occupants, I believe the investors willbe coming back into the market. In
(08:58):
fact, I'm arting to see itright now, come back into the market
that they still realize that the realestate segment of the market is a safer
segment to have their money than thestock market. So for people that have
historically been focused on the stock market, even though overall a year to date
(09:20):
the stock market is up, there'sstill a rather great possibility of volatility of
going up and down. Looking inthe long term, folks, when we
talk investment, we can't just bethinking of what's happening this week, this
month to the dal Jones Industrial Averageor NASDAK. You've got to be thinking
(09:43):
long term. And if you area long term thinker, which is how
you should be looking at your fouroh one k or ira, you're going
to realize that even though it's upthis year, the right place to have
your money for safety, security,growth and income is investment grade real estate.
(10:05):
Yep, you're going to have toput more down payment down to get
your cash flow, or you're goingto have to buy a different price point
or even possibly a different geographical locationor type of property. But it's still
out there. And if you wantto have that conversation with me about buying
a primary home or an investment property, reach out to me. I want
(10:28):
you to call me directly, andif you don't get me, leave me
a very specific message about getting backto you so we can meet. My
phone number for you to reach outto me is eight four three three two
seven three zero one seven. Emailme please, and this is going to
be a different email address than I'vegiven you in the past. Our Willis
(10:50):
team at gmail dot com. Theletter R Willis WI L L I S
team to E A M at gmaildot com and let's pick a time we
can meet, we can chat,and I can educate you about what might
be in your self serving financial bestinterest. Folks will be right back after
(11:11):
this break. If you have realestate questions, or if you need a
market analysis on your property, callRick right now at eight four three three
two seven three zero one seven,or you can email limitt Rick at Rickwillis
dot com. Check out Rick's bioand access all properties on the MLS at
Rickwillis dot com. Welcome back,Welcome back, Charleston, Welcome back to
(11:33):
the second segment of today's Rickwillis RealEstate Show. Well, some of you
know that occasionally I put a tapein of a previous show. That's what
happened last Saturday. I had theopportunity of traveling to the state of Florida
(11:56):
Orlando. I should have flown,but I drove long drive. You remember
all the thunderstorms we had here,Well I had those all the way down
to Orlando, Florida last week andwasn't very much fun. But I got
a chance to see my grandson ofeleven and a half years old, playing
(12:16):
in a basketball tournament. My daughtermarried a gentleman that lived in southern California,
Los Angeles area. That's where shelives, That's where my grandson lives.
And although I do get out toCalifornia to see them a couple of
times a year, I wanted tosee my grandson in a real basketball tournament.
(12:37):
There were over two hundred different teamsplaying in Orlando. Now, these
are not school teams, which iswhat we tend to think of when we
think of a basketball game for peopleof eleven years old. This is a
(12:58):
regional team and they try to pickthe best players from the area and certain
age groups. And he's in thefifth grade, so this was a fifth
grade tournament. And I could notbelieve how good fifth graders can play basketball.
(13:20):
And they even had third graders playingbasketball in a league in a tournament
where again it's from a geographical areaand they go all the way up to
age eighteen. But boy was itsomething to watch. There were twenty different
(13:41):
teams in his bracket, and mygrandson named Wyatt. His team came in
fifth, and it was a pleasureto see the good, the bad,
and the ugly. So when you'relooking at fifth graders, they're still learning
the game, of course, butman, they've got kids that can dribble
(14:01):
and shoot three point shots. Andanyway, long story short, I had
a tape in last week and thisweek you're hearing me live. But I
guess you never know, the sameshow could come back at a future date,
right, and you wouldn't know ifit was live or not. Anyway,
that being said, we've talked aboutthe status of the market. I
(14:24):
believe the market in the greater Charlestonarea is going to keep on strong.
I see no indications that things arebacking off. I see people constantly relocating
here. I see young people thathad been sitting on the sidelines deciding it's
time to jump in. And asa matter of fact, I helped a
(14:48):
buyer purchased this past week who hada real struggle. We had been looking
for quite a while and finally hefound the right home and put it under
contract. Multiple offers on the respectiveproperty way out in the country. You
ever heard of a place called Utahville, Well, it's up near the lakes
and actually in Orangeburg County. Butthat being said, he got a really,
(15:13):
really nice single family home under contract, twenty four hundred square feet about
three hundred thousand dollars and he's onhis way. And what surprised me was
of the multiple offers, his offerwas contingent on the sale of his home,
which I now have listed. Butyou know, I thought, gee,
(15:35):
with multiple offers and his contract contingenton the sale, that they wouldn't
be selecting his But his price pointwas such that they did go with it,
and we're happy anyhow. That beingsaid, the market is strong,
the market is good. My ownbelief is we're going to be seeing three
(15:58):
to five percent appreciation on Charleston areareal estate this coming year. And it's
there right now. And again itdepends on the area, the type of
property, the price point that you'relooking in. But don't sit on the
sidelines. Get yourself a preapproval letter, get yourself a relationship with a buyer's
(16:21):
agent and start looking at listings ona daily basis. I have a listing
in Somerville that I had someone driveby and see the sign on yesterday,
And after they asked a number ofquestions and I answered the questions, they
discovered that that property really was notthe right one for them. And I
(16:47):
asked them, I said, bythe way, do you have a relationship
with a real estate agent that issending you listings on a daily basis.
The answer was no. I said, well, I'd be glad to provide
that information for you if you like, but if you're serious about buying,
you do want to know what iscoming on the market on a daily basis.
(17:12):
Well, make a long story short. These folks were for better or
for worse. I'm going to doit myself kind of people. Well,
we like to drive around and sometimeswe see a sign, and sometimes we
see a for sale by owner,and sometimes we do this. Sometimes we
do that. I said, well, you certainly can still do that,
(17:32):
but wouldn't you like to at leastbe exposed to properties that are coming on
the market that you might not driveby. And they were very resistant and
I guess some people feel like theydon't want to be sold, and certainly
not my desire or impression that Iwanted to do that. Just inform them,
and if they chose to call meto be their buyer's agent, then
(17:55):
so be it. But for thoseof you listening properly, are still selling
quickly and the ideal property for you, you want to see it first,
don't you. So if anybody that'slistening would like to receive daily updates of
(18:17):
properties that could meet your criteria,please reach out to me. Let me
set you up on a daily search. And if you don't have a preapproval
letter yet, you need to getyourself one. And perhaps the best place
is not where you bank. That'show people typically think. You see where
you bank, you are not someonespecial when it comes to mortgage lending.
(18:42):
They have their policies, there havetheir procedures, they have their loan programs.
And trust me when I say Idon't care where you bank. You
are not something special when it comesto getting a better interest rate or term
or loan program. Were at themercy of that respective bank or credit union.
(19:04):
But I can put you in touchwith somebody that has access to fifty
six different lenders throughout the United States, many different loan programs, and it
can all be done with a phonecall. One phone call to my favorite
guy, Jason Rosenthal. And he'smy favorite guy because he gives the best
(19:26):
service, has access to multiple differentlenders in different states, and in addition
to all that, he's very knowledgeableabout what it is that might be best
for you and very competitive on rates. But right over the telephone, he'll
ask you a few questions and youget a letter that said, based on
(19:48):
your income, based on your creditrating, your credit report, and based
on other things that are going onin your financial life other debts that income
ratios, you can qualify for ahome loan up to blank amount. Now,
if you're listening to me and youdon't have that letter, you want
(20:08):
to reach out to me so Ican give give you his contact info.
Plus, at the same time,set you up on an automated daily search.
Now you can actually go and setyourself up on a daily search.
Numerous websites. You can do that. Well, why should you call me,
(20:30):
then answer? Because I know thearea so well, types of property
so well. I promise you I'llset you up with a better set of
criteria than you would on your own. So reach out to me Rick Willis
eight four three three two seven threezero one seven. Phone call is ideal
(20:52):
for this really difficult to do withemail or texting, and we have a
conversation. I set you up onthe automated search. And if you're so
inclined to want me to represent youas your buyer's agent, and you do
want a realtor to be your buyer'sagent who's not the listing agent, then
we go take a look at theproperty. But at least you're prepared.
(21:15):
You've got your pre approval letter upto the maximum amount you're qualified four and
you've also getting listings daily and Ipromise you I can get you into to
be the first one there if youreach out to me. So reach out
to me eight four three three twoseven three zero one seven. Email me
(21:36):
R Willis Team at gmail dot com. The letter R Willis WI L L
I S Team Team at gmail dotcom. Folks will be right back after
this break. If you have realestate questions or if you need a market
analysis on your property, call Rickright now at eight four three three two
seven three zero one seven. Oryou can email them Rickwillis dot com.
(22:02):
Check out Rick's bio and access allproperties on the MLS at Rickwillis dot com.
Welcome back, Welcome back, Charleston, Welcome back to the third segment
of today's Rick Willis Real Estate Show. Well, folks, for those of
you that don't know who I am, I am a local real estate broker.
(22:26):
I relocated here to the Low Countrytwenty five years ago. I grew
up in the state of Maryland,raised my family outside of Baltimore in a
little place called Ellicott City, Maryland. I personally grew up about five miles
outside of Washington, DC, rightnear the University of Maryland College Park.
(22:47):
Lived in the Annapolis area, livedin Ocean City, Maryland, and after
my kids left home, they wentto school in California and Florida to respectfully
and have their own families. Nowand at the time, I was traveling
the US training real estate agents fora living, I didn't need to live
(23:10):
in the Maryland area anymore because Iwould get on airplanes and travel to some
other place to teach real estate agents. I decided that I liked warmer than
colder, so I wanted to movesouth. Checked out Virginia Beach, Wilmington,
North Carolina, Charleston, and hadthe intention of going to Jacksonville,
(23:32):
but you know, too hot,too cold, just right. I got
as far as the Charleston area andsaid, Nope, this is perfect.
I don't need to go anywhere else. I got into the real estate business
here locally in two and two andhave had over a thousand transactions since that
time. And I can probably helpyou because I am on the radio show.
(23:59):
I get calls from all over thearea. I've learned the entire Charleston
marketplace, and I've discovered that evenfor people that have grown up in the
area or lived here for decades,that I'm able to steer them towards some
places that they weren't quite knowledgeable about, didn't quite understand or know about.
(24:19):
So if you're looking to buy anywherein a greater Charleston area, at very
least have a conversation with you.And if you're thinking of selling your property,
any kind of property, reach outto me. You want my opinion
of your value, you want toknow what I think is needed to get
(24:40):
your property sold, and you wantto hear about my negotiable commission rate.
If you're thinking of selling, youshouldn't be paying any more than you need
to to get your property sold.And sometimes it's an easy task to get
a property sold. Sometimes it's moredifficult, Sometimes more money needs to be
(25:00):
spent, time spent than others.But you want to know what I know
about what it's going to take toget your property sold. So invite me
over to do a market analysis ofyour property. We'll chat about it,
and there's no cost and there's noobligation. So reach out to me.
Okay, Well, that being said, let's continue with the show. Now,
(25:22):
those of you that did hear theshow last week or even the week
before, you heard me speak aboutprivate mortgages, private mortgages where it's possible
for you to get anywhere from eightto twelve percent in a private mortgage.
(25:44):
Now, why should you care abouta private mortgage? You see, you
would be the lender. I'm talkingto those of you that have money in
brokerage accounts. I'm speaking to thoseof you that have money in the stock
market. I'm speaking to those ofyou that have money in the bank at
anywhere from three to five percent.Wouldn't you like to get eight to twelve
(26:10):
percent secured by a mortgage. Well, I developed that concept last week show
week before that show, which youcan hear. By the way, if
you go to my website, I'vegot a podcast that will allow you to
hear that again. Rick Willis dotcom, which is my website. And
(26:32):
I had two separate people call methat had an interest in hearing more information,
one of which committed to fifty thousanddollars mortgage on a property twelve percent
interest for about a three year payoff, where the person would make monthly payments
for three years at twelve percent interest. Now, most of you heard that
(27:00):
and like the idea of eight totwelve percent, but you didn't call me.
Why wouldn't you at least call meto find out more about it if
you have a question or concern.You see, when you put your money
in the bank, it's not inthe bank. The bank is lending your
money out at a higher rate,which is why they can afford to pay
you the four to five percent thatthey pay you because they're lending your money
(27:23):
out at a higher rate. So, since your money is not in the
bank anyway, it's being lent outby the bank at a higher rate,
why don't you consider putting your moneywhere the bank puts its money to pay
you the four to five so youcan get eight to twelve. Well,
again, I'm not going to developthat the way I did in my past
(27:45):
two shows, but I just wantyou to be aware that that's available for
you, and you want to becalling me before there's a need. And
for some of you, you wantto be self directing your four oh one
K or IRA there. Yeah,make sure you understand that if you have
a four oh one k an iraa retirement program, that you can convert
(28:07):
that from the custodian that you currentlyhave it with to what is called a
self directed IRA self directed for aone K and that's self directed four O
one K, which would be ina local bank. Could invest in a
mortgage. Now, these mortgages areusually anywhere from one to three years.
(28:30):
Short term mortgages could be up tofive years. I had another individual that
I placed alone for this past weekat for five years a certificate of deposit.
Well, it's probably safer than youhaving your money in the stock market
(28:51):
with the volatility there. You wantcertainty instead of uncertainty. Invest in Charleston
area real estate or invest in aprivate mortgage. So anyway, I don't
want to be labor that, butI want you to reach out to me
and let's have a conversation about it. Let me know the amount of money
you'd like to have out, theminimum interest rate that would be acceptable for
(29:14):
you, and I'll see if Ican make that happen on your behalf.
Okay, So in the beginning ofthe show today, I said I was
going to make some comments about differentkinds of real estate, and I'd like
to switch gears and do that rightnow. Basically, you've got four different
(29:36):
types of property. You've got apersonal residence you can live in, You've
got vacant land, you've got commercialreal estate, and then you've got non
owner occupied property or investment property.And they all are a little different in
terms of what you should know aboutthem, how you go about buying them,
(30:02):
what you need to look for inwhat is called due diligence, and
how you finance them. And Ican't give you an in depth scope of
that right here, but I cangive you an overview. So your personal
residence, don't assume that you knowwhat is best for you by way of
financing. You see someone like myself, who's been in the real estate business
(30:26):
for decades and decades and decades,knows a lot about different types of financing.
I advertise that I can get youbelow market interest rate. That's right.
If you're a buyer, there's away to get you below market interest
rate. And it could be byway of knowing a certain lender who's got
(30:48):
access to a certain mortgage program.It could be by getting the seller to
pay some points so you can geta buy down. And it could be
by where the property is located orthe type of property that it is that
you might be eligible for another specialtype of financing. And you don't know
(31:14):
what I know about getting you belowmarket interest rate financing, so you might
want to give me a holler ora call and speak with me about that.
But there's different kinds of financing forresidential property that you own or occupy,
as different from land or commercial propertyor investment property. Land, for
(31:36):
example, you don't go to themortgage broker, and you may not even
go to your local bank because theymight not have an appetite for a vacant
land, a lot or acreage.It just might not be in their zone
of what they're looking for, soyou go to somewhere else. So when
it comes to land, I knowwhere to send you to get the right
(32:00):
kind of financing. And it's differentfor whether it's acreage out in the country
and how many acres it is versusa platted lot in a subdivision. You
want to make sure you go wheresomeone specializes in vacant land. And in
vacant land you don't get a thirtyyear fixed rate loan like you do on
(32:22):
a single family home that you're goingto live in. The ground rules are
different. Land might be a tenor fifteen year amortization, or if you're
going to be building on it,it might be a one year term for
the land to be converted into aconstruction loan to be converted into a permanent
(32:44):
financing. With one closing, differentways of approaching land. Whether you're going
to just hold it for a while, are you going to subdivide it,
are you going to build on it? And how soon are you going to
build on it? Commercial property nowcommercial property, and when I use the
term commercial, that could be anythingfrom an office building to a mobile home
(33:10):
park to you name it. Itcould be an industrial warehouse. Commercial could
be a shopping center. Commercial financingis different. Yet there are different lenders
that have an appetite for commercial loansand others that say, I'm sorry,
we don't even do commercial loans.So you don't start with your local bank.
(33:37):
You start with finding a bank thatlikes and has an appetite for commercial
and by the way, they areoftentimes your smaller banks, your regional banks,
or just maybe one or two branchbanks. Commercial and a commercial bank
will keep a loan in what iscalled a portfolio status. They will lend
(34:02):
the money from assets that they havein the bank. And you're not going
to get a thirty year loan fixedrate loan here. Either. You might
get a ten to fifteen year fixedrate loan, but it's highly likely that
it's going to be a five yearterm where they can change the interest rate
(34:23):
at the end of five years.Based on the market conditions. Commercial down
payment, you're going to have anywherefrom twenty to thirty percent down Are you
going to own or occupy the commercialproperty or is it just a third party
investment for you. Vacant land goingto be anywhere from ten to twenty five
(34:47):
percent down payment. Personal residence financingcould be zero three. Different ways you
can buy residential property with zero downpayment. Work could be three percent,
three and a half percent, fivepercent, etc. What about investment property,
things that you're going to rent outto other people, Well, the
(35:12):
down payment could be anywhere from fifteento twenty five percent, depending upon is
it a single family residence, isit a multi family property? Is it
one unit, two units, threeunits, four units? What is it
exactly? And the interest rate isgoing to be more than a principal residence
too. Lots of different things.So folks reach out to me Rick Willis
(35:37):
if I can help you answer anyquestions about buying, selling, or investing.
I've done this a long time andI can help you. Call me
directly Rick Willis eight four three threetwo seven three zero one seven, Visit
my website Rickwillis dot com Rickwillis dotcom and reach out to me and let's
have a consultation. If you havereal estate questions or if you need a
(35:59):
market analysis on your property, callRick right now at eight four three three
two seven three zero one seven,or you can email them at Rick at
Rickwillis dot com. Check out Rick'sbio and access all properties on the MLS
at Rickwillis dot Com. Welcome back, Welcome by Charleston. Welcome back to
(36:20):
the final segment of today's Rickwillis RealEstate Show. Well, the last segment,
I was quickly trying to wind itup because I thought that my segments
were over for the day. Andwhen the last segment ended, my producer
reminded me that, oh, Ihad one more segment to go, and
(36:45):
I said to myself, that's agood thing, because I really didn't finish
what I wanted to finish with talkingabout different kinds of property. Well,
the previous segment we talked about residentialproperty, vacant land, commercial and residential
(37:06):
investment property. That the financing isdifferent, that the length of time that
you get a loan is different,that the interest rates are different, down
payments are different. And you don'twant to just approach where you bank,
which is the tendency, because hey, when you talk about lending money,
(37:30):
you think about going to your ownbank. Well, there are banks,
large banks, regional banks, smallbanks. There are credit unions, and
there are what are called mortgage brokers, and there are mortgage bankers. And
(37:52):
when you're in the business for awhile, you learn where to go for
what type of property and what typeof buyer and what type of use that
you have. It's different, andfolks, that's where the real estate agent
earns part of the fee that theyearn that you don't have to pay them
(38:15):
if you're the buyer. See,if you're a buyer, you don't pay
a real estate broker anything. Itis the real estate broker receives their compensation
by way of the seller who signsthe listing and agrees that the time they
sign a listing that the listing brokergets a portion of the commission and the
(38:37):
buyer's agent gets a portion of thecommission. So you, the buyer,
don't pay any money to the localrealtor unless you sign a document agreeing to
pay a certain amount towards the commissionof the agent representing you. So you
want a buyer's agent always to representyou. And I've always found it interest.
(39:00):
In the Greater Charleston area there's oversix thousand licensed real estate agents,
and I don't believe the average buyerreally understands the difference between their friend and
the business, the person they goto church with, and someone who has
done hundreds and hundreds, if notthousands, of transactions in their career.
(39:22):
It's something called experience, and youwant to make sure if you're listening and
you personally, your parents, yourson, your daughter is going to be
buying real estate, they work withsomebody who's extremely experienced in this business because
it will mean getting the house theywant or not getting the house. Yeah,
it's that significant, or getting thebest financing, or getting the seller
(39:45):
to do the repairs that are neededon behalf of you, the buyer or
your son or daughter, or parentor grandparent if you will, or grandchild.
The agent makes the difference. Socareful who you select to be your
buyer's agent. Make sure they've donethis hundreds of times and are good at
(40:08):
it. I mean, there's theknowledge part of being a realtor, and
then there's the skill part of beinga realtor negotiating, etc. The knowledge
of contracts and how to write them, the knowledge of financing. And then
(40:29):
you're going to have a home inspectiondone right, Well, why wouldn't you
in this day and age? Areyou going to do your own inspection?
You're going to get a license contractorare you going to get somebody who only
does home inspections? Do you knowwho the right company to do the home
inspection is do you know which onesare really nitpicky? Do you know the
(40:52):
agent that you work with, arethey going to be able to bring a
contractor out to the home and letyou know what it's going to cost to
fix certain deficiencies. So maybe maybethe agent that you work with should have
access to people that can help youwith regardless of the type of property.
(41:13):
You know, they can check thewell. If it doesn't have public water,
you can get somebody out there tocheck out the septic system, if
it doesn't have public sewer. Theycan verify the zoning and permitted uses.
They can let you know can youhave another dwelling unit on this same property?
What is it that you need tocheck out? An experienced agent in
(41:37):
the kind of property you want cantell you about that. I had an
offer come in on one of mylistings this morning. It was a commercially
zoned piece of property on Highway oneseventy six in Somerville. Well, they're
asking for a four month due diligenceperiod, four months to seller take the
(41:58):
property off the market, four monthsto check it out. I don't think
so, at least not for whatthey're proposing they want to take it off
the market for a thousand bucks ifthey don't go through with it for four
months off the market. Now Iknow my seller. My seller is not
going to agree to it, andI'm going to reinforce that. But what
(42:19):
we might do, we might say, Okay, we'll take a thousand fee
if you don't go forward with it, and give you thirty days due diligence,
and then if you want an additionalthirty days, maybe three thousand additional
dollars, all of which nonrefundable.And then if you want an additional thirty
(42:43):
days, maybe six thousand. Somaybe by the end of the ninety day
period they've got ten thousand dollars ofnonrefundable deposit put up, and if they
buy it, it goes towards purchasingthe property. But just a little creative
way of make sure that we're dealingwith somebody that doesn't just want to tie
the property up and prevent somebody elsefrom getting it. So little things that
(43:09):
make a difference. You want tomake sure you select a buyer's agent that
understands all of these nuances. Andby the way, most of you that
are listening if you're going to bebuying, we'll be buying a residential property
to live in or to rent out. And what you're going to find is
there's going to be issues with theproperty, probably, and it's customary that
(43:34):
we ask a seller to repair certainthings. And I have a question for
you. Do you think a sellerwould rather make a lot of repairs to
the property, or all things beingequal, would they like to just reduce
the price a certain amount and haveyou, the buyer do it, pay
(43:59):
some of your closing costs, andhave you the buyer, handle any and
all issues with the property. I'mgoing to say from experience, the answer
is yes. So when I havesomebody looking at a property and there's some
issues, I will get a contractorover there and go through the items that
(44:20):
are needed to be fixed and sayto you, the buyer, how about
if we just get a dollar amountcredit from the seller, either paid directly
to the contractor or a reduction ofprice or a credit towards closing costs,
(44:40):
and have you, the buyer,handle it rather than hoping the seller hires
the right people and fixes it theright way. Again, you must have
an experienced buyer's agent working with you. And by the way, if you're
a seller of our property, it'snot a bad thing sometimes to get what
(45:01):
is called a pre inspection where youbring in the home inspector instead of waiting
for the buyer to do it.Then you know what's wrong and what somebody's
going to find and you can eitherhave it fixed or prepare to have a
contractor come in and give you acredit or the amount of what it'll take
(45:22):
to fix it, which in turnyou can pass on to the respective buyer.
So long story short, whether you'relooking to buy a residence to live
in vacant land for investment or tohold, or to build a house on
commercial property that you're looking to buyor sell or investment property, you've got
(45:45):
to have an experienced buyer's agent ifyou're buying, an experienced listing agent if
you're selling, And folks, I'dlike to apply for that job. I
do this radio show one hour aweek and the rest of the time I
help people buy and sell real estate. Reach out to me if you are
someone you know is looking to buyor sell eight four three three two seven
(46:08):
three zero one seven, give mea holler. Email me R Willis Team
at gmail dot com. Visit mywebsite Rick at Rickwillis dot com or Rickwillis
dot com, I should say,is my website Rickwillis dot com. Folks,
have a great weekend, See youlater.
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