Episode Transcript
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Speaker 1 (00:00):
The following is a peed commercial program on ninety four
to three WSC. The views expressed by the host of
this program do not necessarily reflect the views of iHeartMedia
ninety four to three WSC. It's advertiser, sponsors or management.
This is The Real Estate Show with Rick Willis, a
show about home sales, mortgage issues, investing in everything about
the American dream. And that means a lot as someone
(00:22):
who enjoys radio and really enjoys your program. And now
The Real Estate Show with Rick Willis on ninety four
to three WSC.
Speaker 2 (00:33):
Hello Charleston, Welcome, Welcome to the Rick Willis Real Estate Show.
We talk about real estate here, bund selling, investing, financing,
vacant land, commercial property, residential, you name it, we talk
about it here. Now, there was a time when I
(00:56):
started the show that you could call in. This was
a call in talk radio show. Now, if you have
a topic you want me to talk about, you need
to reach out to me directly by way of email
or text so I can talk about it on my show.
But you're always welcome to contact me, and I would
(01:16):
be happy to talk to you about any individual situation
that you're involved in. But for today, we're going to
talk in generalities about what's happening in the real estate market.
I was checking some statistics before going on the air
this morning, and what I find is that what's happening
(01:37):
in the Greater Charleston area it pretty much mirrors the
whole United States, meaning that if you look back year
over year, property values are up two point three percent nationwide,
and that's just about exactly where we are here in
the Charleston area. Now that being said, there's certain types
(02:01):
of property, certain geographical areas where it's up ten percent
and other places where it's down ten percent or more.
But those are the averages. So if you want to
know where to where to locate in terms of appreciation,
you contact me and I can let you know for
(02:22):
any given area what the appreciation has been for the
last twelve months, or six months, or three months, for
the last ten years. Now, looking nationwide, we get statistics
from time to time coming from oftentimes the moving companies,
(02:43):
that tell us where people are moving to and where
people are moving from. And I always find this interesting.
The top ten areas that people are moving to in
terms of cities in the US number one, second, Cremento California.
Number two, Phoenix, Arizona. Number three surprised me Salisbury, Maryland. Now,
(03:12):
I was born and raised in the state of Maryland,
and Salisbury always used to be a sleepy little town
on the eastern shore over the Chesapeake Bay Bridge. As
a matter of fact, I was into Salisbury National Guard
for five years. So Salisbury surprised me. Number four. Area
(03:33):
where people are moving to. Sarasota, Florida, Number five, Coral Gables, Florida,
Number six, Myrtle Beach, South Carolina. Seven, Orlando, Florida, eight, Portland, Maine.
Nine Nashville, Tennessee, and ten Jacksonville, Florida. That's the places
(03:59):
that are getting the most activity city wise of people
moving there. Where are people moving out of Number one
spot in the nation people are moving from Los Angeles, California.
Second place for people moving out New York City, New York.
(04:20):
Number three. Place people are moving out of. Washington, DC.
Number four, San Francisco number five. Where people are moving
out of the city or moving away from Seattle, Washington.
Number six. People moving away Chicago, Illinois, number seven, Boston, Massachusetts,
(04:44):
number eight place they're moving from Philadelphia, Pennsylvania. Nine where
they moving from Houston, Texas. Ten where they moving out
of Atlanta, Georgia. So some of those surprised me, some
of those didn't. Obviously we know about places like New
(05:09):
York City and Los Angeles and San Francisco. I was
surprised to see Atlanta and Texas on that list of
places where people are moving out of. And I was
shocked to see that Salisbury, Maryland was number three on
the list of where people are moving to. So all
(05:33):
that being said, the median price here in the South
Carolina market is three hundred and eighty one thousand, four
hundred dollars for the month of September of twenty twenty five.
Now that's the whole state. For the greater Charleston area,
we're in the low four hundreds in terms of median
(05:56):
sales price. We're a little higher here than the state
as a whole. Now a few other statistics that you
might find interesting. Ten most competitive cities in South Carolina. Actually,
(06:18):
I've got the list of the first five, and I
think that refers to where multiple offers are being submitted
on contracts. Number one, I don't even know where it is, Dezel,
South Carolina. Number three Oak Grove, South Carolina three, Lexington,
(06:41):
South Carolina, number five red Bank, South Carolina. I don't
know where those places are located. Here in the Greater
Charleston area. This morning, we have five thousand, two hundred
(07:06):
and fifty three active residential listings, and I give you
that number every week when I record my show to
show you which direction the market is going. Going back
to two thousand and seven, two thousand and eight, when
there was an economic turndown, we had over ten thousand
(07:28):
active residential listings in the Greater Charleston area. Contrast that
with during the pandemic, when things were booming everywhere in
the US, we had less than one thousand active residential listings.
And since the pandemic has been over, it's been steadily
increasing and it's pretty stable right now. The number five thousand,
(07:53):
two hundred and fifty three would be pretty close to
where it was last month and even the month before.
So that means the same number of people that are
buying are also selling, So it's a balanced market. Now.
That's a good thing. And if you're a seller of property,
(08:15):
what it means is you want to have your property
on the market for sale. Again, people ask me from
time to time. Should I wait till the spring market?
If I'm not in a hurry, my answer would be,
of course not. There's people that buy twenty four seven,
three sixty five. And it used to be in the
(08:36):
olden days before the interest rates were dramatically increased and
things were a little bit more stable, that spring and
summer were the times of year that more people bought
than other times. Nowadays it tends to follow the economy
(08:57):
and the interest rates play a major role. Now, speaking
of interest rates, the Federal Reserve is going to be
meeting here next week or the second week in November,
and they're probably going to be lowering the federal funds rate.
What does that mean to you, Well, it probably means
(09:19):
the rate might drop another quarter percent, maybe as much
as a half a percent. Do you wait for that
if you're a buyer, No, you go out and you
buy right now. Because when you sign a contract to
buy a property, you have a choice. You can either
lock in the interest rate at the time you apply
(09:40):
for a loan, or you can do what is called
float the rate, or you don't lock it in. If
you believe the rate will drop and you've got thirty
to sixty days before you close. Anytime during that period
of time, when you feel the timing is right, you
can say your lender, okay, let's lock in the loan,
(10:03):
or the lender will say to you, I believe right
now is a good time to lock in your interest rate. Folks.
What makes a difference in your monthly payment is not
a quarter of a percent as much as it is
the sales price to the property. So go out in
the marketplace today and look at what's out there, make
(10:26):
your offers, and if you see what you like, sign
a contract and sign a contract contingent on whatever you
need to have it contingent on the sale of a home,
contingent on somebody else viewing it, contingent on a home inspection.
What is it that you need your contract contingent on, folks.
(10:50):
My name is Rick Willis. I've been a licensed realtor
for about five decades and I can help you individually
buy or sell. And when you're out looking for a
property or you're going to put your property on the market,
you want somebody with a lot of experience, So reach
(11:11):
out to me. Call me directly, Rick Willis eight four
three three two seven three zero one seven or email
me Rickatrickwillis dot com. Folks. I'll look forward to your call,
your text, or your email. Let me have a private
conversation with you to see how I might help you.
(11:34):
We'll be right back after this break. Folks. You want
to learn about real estate for retirement, and you want
to build your retirement income around income producing property. Also,
if you have kids that you want to put through college,
you don't want to save money for their college education.
(11:54):
You want to invest in real estate where you can
get a twenty percent plus return on your money safely,
instead of the small amount of money that you'll get
by putting it into a savings account or a five
twenty nine plan. Folks, investing in real estate is a
specialty of mine. Helping people buy and sell real estate
(12:16):
is a specialty of mine. So call me eight four
three three two seven three zero one seven, email me
our Willis team at gmail dot com. It would be
my pleasure to speak with you individually. I look forward
to talking with you. Welcome back, Welcome back, Charleston to
(12:44):
the second segment of today's Rick Willis Real Estate Show. Well, folks,
I've been doing this show now for over twenty years.
Here in Charleston. I relocated here from the state of
Maryland in n eighteen ninety eight, and we started recording
this show in two thousand and three. So it's a
(13:06):
pleasure to be with you. And I know a lot
of you have tuned in from time to time over
the years, and I guess I can say at this
point over the last couple of decades. So those of
you that do turn in or tune in consistently know
that I talk about buying something, and I usually make
(13:28):
this a theme every week of no matter who you
are listening, you should be buying some real estate. You
either should be buying as a first time buyer if
you've been renting, and if you are living in a
home and you're happy with it, you should be buying
an investment property. If you have a son, daughter, grandson,
(13:49):
or granddaughter, you should be buying a home with them
and let them bring in some roommates instead of trying
to rent from somebody else or rent another part of
somebody else's house. I meet people all the time that
have a son or daughter that is a young person
(14:11):
who is renting, and regardless of whether they're renting an
apartment or a house or a part of a house.
Why not you be the owner of that house and
get the economic benefits of not only your son or
daughter or grandchild renting, but also the additional tax deductions
that you can benefit from. Folks you want to buy something.
(14:37):
I had the opportunity, since I talked to you last week,
of helping a young man buy a property that he's
going to live in for a short while and then
he's going to convert the entire property to an investment
rental property. I have a gentleman that I met by
way of this radio show. He works for the Post Office,
(15:01):
and Michael contacted me, met with me, and we talked
about him being a homeowner instead of a renter, and
I talked to him about individual homes, and then we
had a conversation about him buying a multifamily property. He
(15:21):
liked the idea of buying a multifamily property where he
could live in one side and have somebody else paying
rent in a completely separate part of the house in
a duplex. So he contracted for a property with my
help and my wife's help, and we submitted an offer
(15:42):
on his behalf for a property that was quite substantially
below the asking price. We asked the seller to pay
for all of his closing costs and prepaid items, and
we even had the nerve of asking for some improvements
to be made by way of a credit to a
(16:04):
contractor of his choice. We got the counteroffer back yesterday
and they did not agree to the very very low
price that we offered, but they did counter offer at
a price that I believe the buyer will be happy with.
(16:24):
So he's going to be buying a property that's probably
not probably, but he's going to be buying a property
that's eight thousand dollars below the asking price. He's going
to be buying a property where the seller is paying
one hundred percent of his closing costs and prepaid items,
(16:45):
and he's going to get a several thousand dollars credit
to upgrade some of the kitchen appliances in the house. Folks,
if you're going to be buying a property, it's essential
that you work with a realtor that understands how to
get you a good deal. And part of getting a
good deal is it all starts with having the right
(17:09):
real estate agent. You see, when you get a real
estate license, that simply means that you've been to some
classes and you've taken a test. It does not mean
that you're adequately skilled to look out for the best
interest of a buyer. That comes only with time in
the business and comes only with numbers of transactions. Since
(17:33):
I've been in the Charleston area, I've participated in more
than a thousand real estate transactions, and that doesn't count
the ones that I did before I relocated here to
South Carolina. What I'm trying to say is, if you're
going to be buying anything, you want to, give me
a call and interview me, meet with me, and talk
(17:56):
with me about what I can do to help you
get a good buye. You see, in his particular case,
once we identified a property that he might have an
interest in, I called the listing agent and I asked
the agent. I said, has the seller ever had any
offers on this property? The agent said no. I said,
(18:20):
how motivated? Is the seller? Reply? Very motivated? Now those
were that was music to my ears. And when we
went and saw the property, the buyer looks for things
that are right with the property, and my wife and
I look for things that are not right. And when
(18:43):
we got finished looking at the property, we made a
list of items that if he were to buy it
ideally would need upgrading or updating, and therefore we made
the request of the seller for a sum of money
to be paid to a contractor a buyer's choice for
(19:04):
updating and upgrading the property. Now where we are today
is he's looking at that counter offer and has not
yet signed it. But I believe after reviewing it, my
buyer client will look at it and say, yes, I
can live with this. Now, what happens after the contract
(19:29):
is accepted, we then, on his behalf, will order a
home inspection to be done. And when the home inspection
is done, they're very nitpicky. If we get the right person,
and we always get the right person to do the inspection,
they're going to come back with a list of items
(19:51):
that are defects that we can't see with our eyes.
It might be there's an issue with the electricity. It
might be there's an issue with the plumbing. We don't know.
It might be something up in the attic or in
this case, it's on a crawl space excuse me, it's
on a slab, so that we know there won't be
(20:11):
any issues underneath the property. But at the end of
the day, we're going to have items that are going
to be found in the inspection, in which case we're
going to do one of two things. We're either going
to ask the seller to repair certain items at their expense,
or we're going to have a contractor representing the buyer
(20:33):
quote a price for the buyer to fix the items
after closing, in which case we'll ask for a certain
amount of money for the buyer to use over and
above what they already agreed to credit the buyer for
fixing deficiencies in the property. Folks. So many people go
(20:53):
out and they look at real estate and they don't
have the right buyer agent with them, and they get
bogged down and seeing things about the property that they
don't like and that need updating and upgrading, and they
don't have the right buyer's agent who knows how to
look at things and say to the buyer, we can
(21:16):
get the seller to pay for these items, or we
can get a contractor out here to give you a
price for fixing the items and ask the seller to
pay for it. Folks, it's critical when you decide you're
going to buy a property to have the right agent
representing you. Just this past week, also, I had the
(21:40):
opportunity to meet a buyer of a million dollar property
at a new construction in Mount Pleasant, and I asked
the builder representative. I said to the builder rep, I said,
what concessions are you proved for buyers that buy, knowing
(22:03):
that most all builders are providing some kind of concessions. Well,
the answer was, if you use our lender, you have
the following benefits credited to you. Well, it so happened
that these particular buyers that I met at the property
(22:24):
were probably going to be paying cash for the property.
So I said to the builder representative, I said, well,
what if the buyer is not going to get a
loan and they're going to pay cash, can we get
the credit that you normally would have given on financing
to a reduction and price? Answer, No, the credit is
(22:45):
only available if you use our lender and finance the house. Well,
I've been around the block a while and I know
how to circumvent that. So I said to the buyer,
I said, if you decide you want to buy here,
you go ahead even though you have cash, and you
(23:06):
go ahead and get a loan on the property, and
before you make your first payment, you're going to pay
the house off. So that way they could get their
twenty thousand dollars of benefits and closing costs paid and
still beat the system, so to speak, in that they
(23:27):
would be paying the loan off prior to making the
first payment. Now, I learned that little trick of the
trade decades ago from a guy who went out to
buy a new car. He said, every time I go
buy a car and I'm going to pay cash, I
always want the dealership to finance it. Why because they
(23:52):
can make money. The salesman and a dealership can make
money on the financing. So I let them give me
a good price, and I don't care what they charge
me an interest rate on the financing because I know
before the first payment I'm going to pay it off.
So again, time and grade and experience makes all the difference. Folks.
(24:13):
If I can help you or anyone you know buy
or sell real estate, please reach out to me. You
want a very experienced agent, Call me directly Rick Willis
eight four three three two seven three zero one seven,
text me at that same number, or email me Rickatrickwillis
(24:35):
dot com. Folks will be right back after the break. Folks,
you want to learn about real estate for retirement, and
you want to build your retirement income around income producing property. Also,
if you have kids that you want to put through college,
you don't want to save money for their college education.
(24:56):
You want to invest in real estate where you can
get a twenty twenty percent plus return on your money safely,
instead of the small amount of money that you'll get
by putting it into a savings account or a five
point twenty nine plan. Folks, investing in real estate is
a specialty of mine. Helping people buy and sell real
(25:18):
estate is a specialty of mine. So call me eight
four three three two seven three zero one seven, email
me R Willis Team at gmail dot com. It would
be my pleasure to speak with you individually. I'll look
forward to talking with you. Welcome back to Charleston. Welcome
(25:48):
back to the third segment of the Rick Willis Real
Estate Show. Well, folks, every now and then someone asked
me about vacant land, and I want to make a
few comments to those of you that might be thinking
of buying or selling any kind of vacant land with
no structure on it. There's something out there. If you
(26:14):
look in certain listings, you'll see it, it'll say property
was acquired at a tax sale. Now, when people don't
pay their taxes, whether it's vacant land or a house,
it gets sold for the taxes and it gets auctioned
every year. And it's not uncommon that people bid in
(26:39):
and buy vacant parcels of land for very little money.
Then they turn around and they put it back on
the market and try to sell it for a substantially
higher price. Well, anytime you see the words tax sale
or shall convey by way of a tax deed, what
(27:00):
that means is that you're not getting the same level
of a quality of deed ownership that you would if
it wasn't a tax saale, and it usually means that
a lender will not finance it. There's something called a
quiet title action that has to take place in order
(27:20):
for you to get the highest level of ownership clarity
for that property. Said differently, when a property is sold
at tax sale, the person has one year to redeem
the property after the tax auction, and if they don't
(27:41):
do that, then the course that goes to the highest
bidder on that particular piece of property. But even if
the owner, so if the person who won the sale
gets the property. Theoretically for the next ten years, somebody
could come back and claim by going to court that
(28:04):
it was sold. Somebody could come back and claim during
that ten year period that the property was not adequately
represented in this tax sale, and by going to court,
somebody could claim ownership of that property. So either you
(28:27):
need to wait ten years in a day from the
tax sale to be able to buy it, in which
case it clears automatically, or you have to go through
a legal procedure called a quiet title action which costs
a couple thousand dollars, where they have to go back
to the chain of title and possibly advertise for somebody
(28:52):
to step forward if they believe that they have an
ownership interest in it. Long story short, you need to
be very careful if you're buying a property that has
been sold at a tax sale. Now something else. Regarding
vacant land, Unlike houses, occasionally you'll find a seller of
(29:15):
vacant land that's willing to hold a mortgage owner financing.
For example, right now, I have a seller that I'm
representing who owns some property in Ridgeville. And for any
of you that are looking for vacant land to build
a house on he has a ten acre parcel that
(29:37):
he's subdividing into anywhere from one to three acre parcels.
And if you want to buy a vacant lot and
a very attractive location at fair market value without going
to a bank, this owner will hold financing, meaning he
(29:58):
is the bank. You put us certain amount down payment
to be negotiated, and then you would make monthly payments
to the seller of the property. There would be no
formal loan qualifying. Your only loan qualification would be do
you have the down payment and are you willing to
(30:18):
make the monthly payments that is agreeable between you and
the seller of the property. So, if any of you
are listening, it might be looking for a very attractive
home site of one acre or more in Ridgeville, which
is north of Summerville, you want to make sure you
(30:40):
reach out to me about this respective owner financing property. Now,
while we're on the subject of owner financing and real
estate vacant land. When you buy vacant land, there's some
things you need to know about. Number one, what is
the zoning of that property, covenants regarding the size of
(31:02):
the home that can be put on it, What about
hoa agreements. In this particular parcel, there's one hundred dollars
per year road maintenance fee that is going to be paid.
Now that is a good thing. Can you imagine living
on a dirt road and having cars drive up and
(31:24):
down it and the road needs maintenance, but nobody's agreeing
to pay for it. So again, little things like that
you need to look out for. Folks, if you're looking
to buy or sell any kind of vacant land, you
want to make sure you reach out to me. I'm
(31:45):
an expert in that world. I've personally owned over five
hundred acres of land in my life, both large parcels
as well as small lots. And there's things like well
septic systems, pertests and the like that you have to
(32:06):
know about. You don't want to just work with any
real estate agent if you're out there considering buying or
selling vacant land. So I look forward to having you
contact me if you're in that world. Another situation that
occurred to me this past week, to tell you a
(32:26):
quick story about, I had a couple contact me about
ten days ago. They were living in Polly's Island. They
happened to be driving down towards Florida. They heard the
radio show and said called me and said, Rick, when
(32:47):
we get back from Florida, we'd like to talk to
you about investing in real estate. I said, wonderful, and
we set up a meeting, and I met with those
folks this past week. And their circumstances were that they
were retired, they relocated here from out of state, living
(33:09):
in Polly's Island, and they were looking for additional income. Well,
they came to the right guy, because I'm an expert
at helping people create income. Now, in their particular case,
their assets were primarily the equity that they had in
(33:29):
their primary residents that they were living in. So we
talked about getting a heelock, a home equity line of
credit where they could borrow some funds based on the
equity in their house to go buy an income producing property. Folks,
please understand that debt is a good thing to have
(33:53):
if the tenant is paying for it. You see, you
want to own as much real estate as possible, and
you can always own more real estate when you buy
it with a mortgage than if you try to pay
all cash for the property. Another little twist in this
particular case, they had a son who was single, and
(34:22):
I suggested to them that they try to do something
together with their son because he was not a homeowner,
and they could do something with the son whereby the
son could represent that he was going to live in
the house and in fact do so for a short
(34:42):
while and then move out of the house and they
could rent that same house. So those of you that
have a son or daughter or grandson or granddaughter consider
doing something together with them, because you always get more
(35:02):
favorable financing as an owner occupant than you do as
an investor. You get to have a lower down payment,
a lower interest rate, and also you get more favorable
(35:22):
overall terms on that loan. So I'm going to suggest
to you anybody listening that has a son or daughter,
grandson or granddaughter, try to find a way to do
something with them. And even if they don't want to
remain in the property itself, after the property is purchased,
(35:47):
you could transfer their interest to you by way of
a quick claim deed, and you've now leveraged yourself much
more favorably than trying to buy as a as an Now,
when you're an investor, if you're buying a single unit property,
you're looking at a minimum of fifteen percent down payment,
(36:12):
and with fifteen percent down payment you have mortgage insurance.
At twenty percent down payment, there's no mortgage insurance. Now
we're talking about rental property, non owner occupied, the same property.
If you put twenty five percent down payment, you get
(36:34):
a lower interest rate than if you put twenty percent
down and that would be the reason that you consider
putting that extra five percent. So those of you that
are inclined to want to generate income in your retirement,
(36:54):
or forget retirement for a minute, you want to just
generate passive income, it's critical that you understand there are
properties out there that will provide you better returns. Then
you get in the bank. Now, if you try to
go to the bank and you look at what your
(37:14):
rate of interest is, it's not very much. Even if
you find a bank where you can get one of
these higher rates of interest, like five percent. Even if
you can find a bank that pays five percent interest
(37:35):
on your money, you're not making money. You're losing money.
If you have five percent interest on a savings account
and you pay taxes on your interest, and you have inflation,
you're losing money for every dollar you have in the bank.
(37:57):
Now you get to fool yourself because you get to
see that the balance is increasing and you're actually making money,
at least it appears that way. But again, you have
to always look at making money. You have to always
look at making money from the point of view of
(38:17):
what are you getting after you pay taxes and what
are you getting after inflation. So, if you want to
know how to get twenty to thirty percent annual return
on your money safely, you see me and I explain
to you how to do that in the world of
income producing real estate, and we'll talk more about that
(38:40):
in the next segment. Folks, you want to learn about
real estate for retirement and you want to build your
retirement income around income producing property. Also, if you have
kids that you want to put through college, you don't
want to save money for their college education. You want
(39:01):
to invest in real estate where you can get a
twenty percent plus return on your money safely, instead of
the small amount of money that you'll get by putting
it into a savings account or a five twenty nine plan. Folks,
investing in real estate is a specialty of mine. Helping
people buy and sell real estate is a specialty of mine,
(39:25):
So call me eight four three three two seven three
zero one seven email me our Willis team at gmail
dot com. It would be my pleasure to speak with
you individually. I look forward to talking with you. Welcome back,
(39:50):
Welcome back to Charleston. Welcome back to the final segment
of today's Rick Willis Real Estate Show. Well, folks, I've
been in the real estate business a long time. I
got started in the state of Maryland in the early
nineteen seventies and relocated here to the Low Country in
(40:14):
nineteen ninety eight. And people oftentimes ask me, you know,
how do I compare this part of the world to Maryland?
And my reply is, well, I spent most of my
real estate life in Maryland, in the Baltimore area Annapolis area,
(40:37):
so I was in a reasonably built up part of
the world. And I love the idea of having the
Low Country where you can be in the metro area
if you want to, and you don't have to drive
very far to be out in the country and find
substantially lower prices. So you know, I helped somebody recently
(41:00):
a single family home for under one hundred and seventy
five thousand dollars. That's within about a forty five minute
drive of downtown Charleston. So there's some very affordable properties here.
And I just had a phone call while on a
break of somebody that called me on a seventy five
(41:22):
thousand dollars property. Now that's seventy five thousand dollars property
is a complete redo, a complete rehab. But yet I
want you to know that there's some very very affordable
prices when you get outside of the metropolitan area. I
have somebody that I'm going to be showing a property
(41:43):
to this weekend. It's priced under one hundred thousand dollars
and it's about an hour's drive outside of Charleston. But
at the end of the day, if you're willing to
drive a little bit, you can find some very very
affordable properties in the greater Charleston area, both vacant land
(42:04):
as well as houses. On something that I have not
talked much about in the past, but I want to
complete on this segment of the show is something called
a lease purchase. Now for those of you that would
like to buy but you can't afford to buy right now.
(42:26):
You either have a house you need to sell, you
have some credit that you need to repair, you have
something going on in your life that doesn't allow you
to buy right now, but you'd like to, you might
want to consider checking out what is called a lease purchase. Now,
people confuse the word lease purchase with rent to own.
(42:49):
I did not say rent to own. I said lease purchase.
I have access to a property or properties in Summerville
that you could move into on a lease and rent
the property, providing you also had the intention of buying
the property. Now, how that would work would be the following.
(43:13):
You would look at the property after you went to
a lender and they told you that you could qualify
for buying that same property sometime within the next twelve months,
and that can all be done over the telephone. Then
you look at the property and you enter into a
lease to rent it, and at the same time you
(43:36):
enter into a contract of sale to buy it. Now,
don't confuse what I'm saying now with a lease option.
I did not use the word lease option. I use
the word lease purchase. So you can't rent the property
unless you also commit to buy it by way of
assigned contract, and you have a set of circumstance answers
(44:01):
that the lender says yes when you have this, then
you can buy the property. The situation that happened this
past week is somebody wanted to do a lease purchase.
So I had somebody this week that wanted to do
elise purchase and their circumstances were that there was a
(44:25):
death in the family and this lady's husband passed away
and all the credit in the family was in his name.
So she has the ability to buy, but doesn't have
any credit. So we put her in touch with a lender,
and the lender said, yeah, you can get established and
(44:46):
get some credit to be able to buy, but it'll
probably take ninety days minimum up to six months maximum
to be able to get your credit established. So we're
creating a situation where she's going to be moving into
the property under what is called a preoccupancy agreement. Somebody
(45:08):
has had their home on the market for sale for
a year and they called me and asked me for
any ideas that I might have of getting the household,
and I explained to them about the lease purchase. And
I'll be having a more detailed conversation with that person
later today. Now, this particular property is already listed with
(45:30):
a realtor other than myself. And I'll be on the
phone call with the owner and the other realder to
see how we might work together on this transaction. You see,
it's one thing to be able to have the idea
of a lease purchase. It's another thing to be able
to talk the talk, walk the walk and explain it
(45:53):
to somebody. Now, these same people that have the million
dollar house, I asked them, also, do you have a
mortgage on the house. The answer is no, And I said,
would you consider holding a mortgage whereby somebody could put
one hundred thousand or two hundred thousand dollars down payment
(46:15):
on the property and make monthly payments to you until
they were in a position to get bank financing and
pay you off. Answer, yes, they would consider that. So again,
a couple of creative ways to sell a property least
purchase and owner financing for a short while. Folks, anybody
(46:39):
out there that has an existing loan that is under
five percent interest, there's another creative way of marketing a property,
and that is to have somebody come in and take
title to your property subject to your existing loan. Now,
subject to do is not to be confused with someone
(47:02):
assuming your loan. The loan would stay in your name,
and somebody would come in and take title subject to
the existing mortgage that you have, and they would make
monthly payments to you, and you would in turn turn
around and make monthly payments to the bank. But that's
another creative way of finding a buyer for your home.
(47:25):
So forre's anybody out there, whether you have your home
listed for sale or don't have it for sale, and
you're looking for creative ways to attract a buyer for
your property, you might want to reach out to me.
And if you have your house listed, I could probably
find a way to work with your existing realtor and
(47:48):
have two separate real estate agents marketing your property and
find a way to do so very cost effectively for you. Folks.
I am I've been in this business for a long
time and there's lots of creative ways to buy and
sell real estate. If you're listening to my show and
(48:12):
you have any interest in buying any kind of real estate,
you want to make sure you have a buyer's agent.
And a buyer's agent is someone that represents you and
you exclusively and negotiates on your behalf. And what's interesting
about having a buyer's agent is that you don't have
(48:38):
to pay the person. When people hire me as their
buyer's agent, I haven't a written agreement with them that
says they don't have to pay me anything. I either
get paid a portion of the commission by way of
the listing broker or directly by the seller. There are
some agents who will require you to say on an
(49:00):
agreement that says they get a certain commission and if
the seller is not going to pay for it, you
need to pay for it. Well, that's not the way
I work. And if you want a buyer's agent representing
your best interest, you want a guy like me who's
been around the block a while, knows all the tricks
of the trade on behalf of representing buyers and getting
(49:23):
a good deal. So I want you to reach out
to me, folks. I want you to call me directly
on my cell phone, Rick Willis eight four three three
two seven three zero one seven, or please email me
Rick at Rickwillis dot com. Now, for those of you
(49:46):
that want to know a little bit more about me personally,
please visit my website Rickwillis dot com. Read my bio.
I think you'd want to work with me after you
know my background, Folks, there is there's no substitute for experience,
and I don't think you can find anyone more experience
than the guy that you're listening to right now. So
(50:08):
I look forward to hearing from you directly by way
of phone call, text, or email. Folks, have a great
weekend and wishing you the best. I'll talk to you later. Bye.
The following is a peed commercial program on ninety four
to three WSC. The views expressed by the host of
this program do not necessarily reflect the views of iHeartMedia
ninety four to three WSC. It's advertiser, sponsors or management.
This is The Real Estate Show with Rick Willis, a
show about home sales, mortgage issues, investing in everything about
the American dream. And that means a lot as someone
(00:22):
who enjoys radio and really enjoys your program. And now
The Real Estate Show with Rick Willis on ninety four
to three WSC.
Speaker 2 (00:33):
Hello Charleston, Welcome, Welcome to the Rick Willis Real Estate Show.
We talk about real estate here, bund selling, investing, financing,
vacant land, commercial property, residential, you name it, we talk
about it here. Now, there was a time when I
(00:56):
started the show that you could call in. This was
a call in talk radio show. Now, if you have
a topic you want me to talk about, you need
to reach out to me directly by way of email
or text so I can talk about it on my show.
But you're always welcome to contact me, and I would
(01:16):
be happy to talk to you about any individual situation
that you're involved in. But for today, we're going to
talk in generalities about what's happening in the real estate market.
I was checking some statistics before going on the air
this morning, and what I find is that what's happening
(01:37):
in the Greater Charleston area it pretty much mirrors the
whole United States, meaning that if you look back year
over year, property values are up two point three percent nationwide,
and that's just about exactly where we are here in
the Charleston area. Now that being said, there's certain types
(02:01):
of property, certain geographical areas where it's up ten percent
and other places where it's down ten percent or more.
But those are the averages. So if you want to
know where to where to locate in terms of appreciation,
you contact me and I can let you know for
(02:22):
any given area what the appreciation has been for the
last twelve months, or six months, or three months, for
the last ten years. Now, looking nationwide, we get statistics
from time to time coming from oftentimes the moving companies,
(02:43):
that tell us where people are moving to and where
people are moving from. And I always find this interesting.
The top ten areas that people are moving to in
terms of cities in the US number one, second, Cremento California.
Number two, Phoenix, Arizona. Number three surprised me Salisbury, Maryland. Now,
(03:12):
I was born and raised in the state of Maryland,
and Salisbury always used to be a sleepy little town
on the eastern shore over the Chesapeake Bay Bridge. As
a matter of fact, I was into Salisbury National Guard
for five years. So Salisbury surprised me. Number four. Area
(03:33):
where people are moving to. Sarasota, Florida, Number five, Coral Gables, Florida,
Number six, Myrtle Beach, South Carolina. Seven, Orlando, Florida, eight, Portland, Maine.
Nine Nashville, Tennessee, and ten Jacksonville, Florida. That's the places
(03:59):
that are getting the most activity city wise of people
moving there. Where are people moving out of Number one
spot in the nation people are moving from Los Angeles, California.
Second place for people moving out New York City, New York.
(04:20):
Number three. Place people are moving out of. Washington, DC.
Number four, San Francisco number five. Where people are moving
out of the city or moving away from Seattle, Washington.
Number six. People moving away Chicago, Illinois, number seven, Boston, Massachusetts,
(04:44):
number eight place they're moving from Philadelphia, Pennsylvania. Nine where
they moving from Houston, Texas. Ten where they moving out
of Atlanta, Georgia. So some of those surprised me, some
of those didn't. Obviously we know about places like New
(05:09):
York City and Los Angeles and San Francisco. I was
surprised to see Atlanta and Texas on that list of
places where people are moving out of. And I was
shocked to see that Salisbury, Maryland was number three on
the list of where people are moving to. So all
(05:33):
that being said, the median price here in the South
Carolina market is three hundred and eighty one thousand, four
hundred dollars for the month of September of twenty twenty five.
Now that's the whole state. For the greater Charleston area,
we're in the low four hundreds in terms of median
(05:56):
sales price. We're a little higher here than the state
as a whole. Now a few other statistics that you
might find interesting. Ten most competitive cities in South Carolina. Actually,
(06:18):
I've got the list of the first five, and I
think that refers to where multiple offers are being submitted
on contracts. Number one, I don't even know where it is, Dezel,
South Carolina. Number three Oak Grove, South Carolina three, Lexington,
(06:41):
South Carolina, number five red Bank, South Carolina. I don't
know where those places are located. Here in the Greater
Charleston area. This morning, we have five thousand, two hundred
(07:06):
and fifty three active residential listings, and I give you
that number every week when I record my show to
show you which direction the market is going. Going back
to two thousand and seven, two thousand and eight, when
there was an economic turndown, we had over ten thousand
(07:28):
active residential listings in the Greater Charleston area. Contrast that
with during the pandemic, when things were booming everywhere in
the US, we had less than one thousand active residential listings.
And since the pandemic has been over, it's been steadily
increasing and it's pretty stable right now. The number five thousand,
(07:53):
two hundred and fifty three would be pretty close to
where it was last month and even the month before.
So that means the same number of people that are
buying are also selling, So it's a balanced market. Now.
That's a good thing. And if you're a seller of property,
(08:15):
what it means is you want to have your property
on the market for sale. Again, people ask me from
time to time. Should I wait till the spring market?
If I'm not in a hurry, my answer would be,
of course not. There's people that buy twenty four seven,
three sixty five. And it used to be in the
(08:36):
olden days before the interest rates were dramatically increased and
things were a little bit more stable, that spring and
summer were the times of year that more people bought
than other times. Nowadays it tends to follow the economy
(08:57):
and the interest rates play a major role. Now, speaking
of interest rates, the Federal Reserve is going to be
meeting here next week or the second week in November,
and they're probably going to be lowering the federal funds rate.
What does that mean to you, Well, it probably means
(09:19):
the rate might drop another quarter percent, maybe as much
as a half a percent. Do you wait for that
if you're a buyer, No, you go out and you
buy right now. Because when you sign a contract to
buy a property, you have a choice. You can either
lock in the interest rate at the time you apply
(09:40):
for a loan, or you can do what is called
float the rate, or you don't lock it in. If
you believe the rate will drop and you've got thirty
to sixty days before you close. Anytime during that period
of time, when you feel the timing is right, you
can say your lender, okay, let's lock in the loan,
(10:03):
or the lender will say to you, I believe right
now is a good time to lock in your interest rate. Folks.
What makes a difference in your monthly payment is not
a quarter of a percent as much as it is
the sales price to the property. So go out in
the marketplace today and look at what's out there, make
(10:26):
your offers, and if you see what you like, sign
a contract and sign a contract contingent on whatever you
need to have it contingent on the sale of a home,
contingent on somebody else viewing it, contingent on a home inspection.
What is it that you need your contract contingent on, folks.
(10:50):
My name is Rick Willis. I've been a licensed realtor
for about five decades and I can help you individually
buy or sell. And when you're out looking for a
property or you're going to put your property on the market,
you want somebody with a lot of experience, So reach
(11:11):
out to me. Call me directly, Rick Willis eight four
three three two seven three zero one seven or email
me Rickatrickwillis dot com. Folks. I'll look forward to your call,
your text, or your email. Let me have a private
conversation with you to see how I might help you.
(11:34):
We'll be right back after this break. Folks. You want
to learn about real estate for retirement, and you want
to build your retirement income around income producing property. Also,
if you have kids that you want to put through college,
you don't want to save money for their college education.
(11:54):
You want to invest in real estate where you can
get a twenty percent plus return on your money safely,
instead of the small amount of money that you'll get
by putting it into a savings account or a five
twenty nine plan. Folks, investing in real estate is a
specialty of mine. Helping people buy and sell real estate
(12:16):
is a specialty of mine. So call me eight four
three three two seven three zero one seven, email me
our Willis team at gmail dot com. It would be
my pleasure to speak with you individually. I look forward
to talking with you. Welcome back, Welcome back, Charleston to
(12:44):
the second segment of today's Rick Willis Real Estate Show. Well, folks,
I've been doing this show now for over twenty years.
Here in Charleston. I relocated here from the state of
Maryland in n eighteen ninety eight, and we started recording
this show in two thousand and three. So it's a
(13:06):
pleasure to be with you. And I know a lot
of you have tuned in from time to time over
the years, and I guess I can say at this
point over the last couple of decades. So those of
you that do turn in or tune in consistently know
that I talk about buying something, and I usually make
(13:28):
this a theme every week of no matter who you
are listening, you should be buying some real estate. You
either should be buying as a first time buyer if
you've been renting, and if you are living in a
home and you're happy with it, you should be buying
an investment property. If you have a son, daughter, grandson,
(13:49):
or granddaughter, you should be buying a home with them
and let them bring in some roommates instead of trying
to rent from somebody else or rent another part of
somebody else's house. I meet people all the time that
have a son or daughter that is a young person
(14:11):
who is renting, and regardless of whether they're renting an
apartment or a house or a part of a house.
Why not you be the owner of that house and
get the economic benefits of not only your son or
daughter or grandchild renting, but also the additional tax deductions
that you can benefit from. Folks you want to buy something.
(14:37):
I had the opportunity, since I talked to you last week,
of helping a young man buy a property that he's
going to live in for a short while and then
he's going to convert the entire property to an investment
rental property. I have a gentleman that I met by
way of this radio show. He works for the Post Office,
(15:01):
and Michael contacted me, met with me, and we talked
about him being a homeowner instead of a renter, and
I talked to him about individual homes, and then we
had a conversation about him buying a multifamily property. He
(15:21):
liked the idea of buying a multifamily property where he
could live in one side and have somebody else paying
rent in a completely separate part of the house in
a duplex. So he contracted for a property with my
help and my wife's help, and we submitted an offer
(15:42):
on his behalf for a property that was quite substantially
below the asking price. We asked the seller to pay
for all of his closing costs and prepaid items, and
we even had the nerve of asking for some improvements
to be made by way of a credit to a
(16:04):
contractor of his choice. We got the counteroffer back yesterday
and they did not agree to the very very low
price that we offered, but they did counter offer at
a price that I believe the buyer will be happy with.
(16:24):
So he's going to be buying a property that's probably
not probably, but he's going to be buying a property
that's eight thousand dollars below the asking price. He's going
to be buying a property where the seller is paying
one hundred percent of his closing costs and prepaid items,
(16:45):
and he's going to get a several thousand dollars credit
to upgrade some of the kitchen appliances in the house. Folks,
if you're going to be buying a property, it's essential
that you work with a realtor that understands how to
get you a good deal. And part of getting a
good deal is it all starts with having the right
(17:09):
real estate agent. You see, when you get a real
estate license, that simply means that you've been to some
classes and you've taken a test. It does not mean
that you're adequately skilled to look out for the best
interest of a buyer. That comes only with time in
the business and comes only with numbers of transactions. Since
(17:33):
I've been in the Charleston area, I've participated in more
than a thousand real estate transactions, and that doesn't count
the ones that I did before I relocated here to
South Carolina. What I'm trying to say is, if you're
going to be buying anything, you want to, give me
a call and interview me, meet with me, and talk
(17:56):
with me about what I can do to help you
get a good buye. You see, in his particular case,
once we identified a property that he might have an
interest in, I called the listing agent and I asked
the agent. I said, has the seller ever had any
offers on this property? The agent said no. I said,
(18:20):
how motivated? Is the seller? Reply? Very motivated? Now those
were that was music to my ears. And when we
went and saw the property, the buyer looks for things
that are right with the property, and my wife and
I look for things that are not right. And when
(18:43):
we got finished looking at the property, we made a
list of items that if he were to buy it
ideally would need upgrading or updating, and therefore we made
the request of the seller for a sum of money
to be paid to a contractor a buyer's choice for
(19:04):
updating and upgrading the property. Now where we are today
is he's looking at that counter offer and has not
yet signed it. But I believe after reviewing it, my
buyer client will look at it and say, yes, I
can live with this. Now, what happens after the contract
(19:29):
is accepted, we then, on his behalf, will order a
home inspection to be done. And when the home inspection
is done, they're very nitpicky. If we get the right person,
and we always get the right person to do the inspection,
they're going to come back with a list of items
(19:51):
that are defects that we can't see with our eyes.
It might be there's an issue with the electricity. It
might be there's an issue with the plumbing. We don't know.
It might be something up in the attic or in
this case, it's on a crawl space excuse me, it's
on a slab, so that we know there won't be
(20:11):
any issues underneath the property. But at the end of
the day, we're going to have items that are going
to be found in the inspection, in which case we're
going to do one of two things. We're either going
to ask the seller to repair certain items at their expense,
or we're going to have a contractor representing the buyer
(20:33):
quote a price for the buyer to fix the items
after closing, in which case we'll ask for a certain
amount of money for the buyer to use over and
above what they already agreed to credit the buyer for
fixing deficiencies in the property. Folks. So many people go
(20:53):
out and they look at real estate and they don't
have the right buyer agent with them, and they get
bogged down and seeing things about the property that they
don't like and that need updating and upgrading, and they
don't have the right buyer's agent who knows how to
look at things and say to the buyer, we can
(21:16):
get the seller to pay for these items, or we
can get a contractor out here to give you a
price for fixing the items and ask the seller to
pay for it. Folks, it's critical when you decide you're
going to buy a property to have the right agent
representing you. Just this past week, also, I had the
(21:40):
opportunity to meet a buyer of a million dollar property
at a new construction in Mount Pleasant, and I asked
the builder representative. I said to the builder rep, I said,
what concessions are you proved for buyers that buy, knowing
(22:03):
that most all builders are providing some kind of concessions. Well,
the answer was, if you use our lender, you have
the following benefits credited to you. Well, it so happened
that these particular buyers that I met at the property
(22:24):
were probably going to be paying cash for the property.
So I said to the builder representative, I said, well,
what if the buyer is not going to get a
loan and they're going to pay cash, can we get
the credit that you normally would have given on financing
to a reduction and price? Answer, No, the credit is
(22:45):
only available if you use our lender and finance the house. Well,
I've been around the block a while and I know
how to circumvent that. So I said to the buyer,
I said, if you decide you want to buy here,
you go ahead even though you have cash, and you
(23:06):
go ahead and get a loan on the property, and
before you make your first payment, you're going to pay
the house off. So that way they could get their
twenty thousand dollars of benefits and closing costs paid and
still beat the system, so to speak, in that they
(23:27):
would be paying the loan off prior to making the
first payment. Now, I learned that little trick of the
trade decades ago from a guy who went out to
buy a new car. He said, every time I go
buy a car and I'm going to pay cash, I
always want the dealership to finance it. Why because they
(23:52):
can make money. The salesman and a dealership can make
money on the financing. So I let them give me
a good price, and I don't care what they charge
me an interest rate on the financing because I know
before the first payment I'm going to pay it off.
So again, time and grade and experience makes all the difference. Folks.
(24:13):
If I can help you or anyone you know buy
or sell real estate, please reach out to me. You
want a very experienced agent, Call me directly Rick Willis
eight four three three two seven three zero one seven,
text me at that same number, or email me Rickatrickwillis
(24:35):
dot com. Folks will be right back after the break. Folks,
you want to learn about real estate for retirement, and
you want to build your retirement income around income producing property. Also,
if you have kids that you want to put through college,
you don't want to save money for their college education.
(24:56):
You want to invest in real estate where you can
get a twenty twenty percent plus return on your money safely,
instead of the small amount of money that you'll get
by putting it into a savings account or a five
point twenty nine plan. Folks, investing in real estate is
a specialty of mine. Helping people buy and sell real
(25:18):
estate is a specialty of mine. So call me eight
four three three two seven three zero one seven, email
me R Willis Team at gmail dot com. It would
be my pleasure to speak with you individually. I'll look
forward to talking with you. Welcome back to Charleston. Welcome
(25:48):
back to the third segment of the Rick Willis Real
Estate Show. Well, folks, every now and then someone asked
me about vacant land, and I want to make a
few comments to those of you that might be thinking
of buying or selling any kind of vacant land with
no structure on it. There's something out there. If you
(26:14):
look in certain listings, you'll see it, it'll say property
was acquired at a tax sale. Now, when people don't
pay their taxes, whether it's vacant land or a house,
it gets sold for the taxes and it gets auctioned
every year. And it's not uncommon that people bid in
(26:39):
and buy vacant parcels of land for very little money.
Then they turn around and they put it back on
the market and try to sell it for a substantially
higher price. Well, anytime you see the words tax sale
or shall convey by way of a tax deed, what
(27:00):
that means is that you're not getting the same level
of a quality of deed ownership that you would if
it wasn't a tax saale, and it usually means that
a lender will not finance it. There's something called a
quiet title action that has to take place in order
(27:20):
for you to get the highest level of ownership clarity
for that property. Said differently, when a property is sold
at tax sale, the person has one year to redeem
the property after the tax auction, and if they don't
(27:41):
do that, then the course that goes to the highest
bidder on that particular piece of property. But even if
the owner, so if the person who won the sale
gets the property. Theoretically for the next ten years, somebody
could come back and claim by going to court that
(28:04):
it was sold. Somebody could come back and claim during
that ten year period that the property was not adequately
represented in this tax sale, and by going to court,
somebody could claim ownership of that property. So either you
(28:27):
need to wait ten years in a day from the
tax sale to be able to buy it, in which
case it clears automatically, or you have to go through
a legal procedure called a quiet title action which costs
a couple thousand dollars, where they have to go back
to the chain of title and possibly advertise for somebody
(28:52):
to step forward if they believe that they have an
ownership interest in it. Long story short, you need to
be very careful if you're buying a property that has
been sold at a tax sale. Now something else. Regarding
vacant land, Unlike houses, occasionally you'll find a seller of
(29:15):
vacant land that's willing to hold a mortgage owner financing.
For example, right now, I have a seller that I'm
representing who owns some property in Ridgeville. And for any
of you that are looking for vacant land to build
a house on he has a ten acre parcel that
(29:37):
he's subdividing into anywhere from one to three acre parcels.
And if you want to buy a vacant lot and
a very attractive location at fair market value without going
to a bank, this owner will hold financing, meaning he
(29:58):
is the bank. You put us certain amount down payment
to be negotiated, and then you would make monthly payments
to the seller of the property. There would be no
formal loan qualifying. Your only loan qualification would be do
you have the down payment and are you willing to
(30:18):
make the monthly payments that is agreeable between you and
the seller of the property. So, if any of you
are listening, it might be looking for a very attractive
home site of one acre or more in Ridgeville, which
is north of Summerville, you want to make sure you
(30:40):
reach out to me about this respective owner financing property. Now,
while we're on the subject of owner financing and real
estate vacant land. When you buy vacant land, there's some
things you need to know about. Number one, what is
the zoning of that property, covenants regarding the size of
(31:02):
the home that can be put on it, What about
hoa agreements. In this particular parcel, there's one hundred dollars
per year road maintenance fee that is going to be paid.
Now that is a good thing. Can you imagine living
on a dirt road and having cars drive up and
(31:24):
down it and the road needs maintenance, but nobody's agreeing
to pay for it. So again, little things like that
you need to look out for. Folks, if you're looking
to buy or sell any kind of vacant land, you
want to make sure you reach out to me. I'm
(31:45):
an expert in that world. I've personally owned over five
hundred acres of land in my life, both large parcels
as well as small lots. And there's things like well
septic systems, pertests and the like that you have to
(32:06):
know about. You don't want to just work with any
real estate agent if you're out there considering buying or
selling vacant land. So I look forward to having you
contact me if you're in that world. Another situation that
occurred to me this past week, to tell you a
(32:26):
quick story about, I had a couple contact me about
ten days ago. They were living in Polly's Island. They
happened to be driving down towards Florida. They heard the
radio show and said called me and said, Rick, when
(32:47):
we get back from Florida, we'd like to talk to
you about investing in real estate. I said, wonderful, and
we set up a meeting, and I met with those
folks this past week. And their circumstances were that they
were retired, they relocated here from out of state, living
(33:09):
in Polly's Island, and they were looking for additional income. Well,
they came to the right guy, because I'm an expert
at helping people create income. Now, in their particular case,
their assets were primarily the equity that they had in
(33:29):
their primary residents that they were living in. So we
talked about getting a heelock, a home equity line of
credit where they could borrow some funds based on the
equity in their house to go buy an income producing property. Folks,
please understand that debt is a good thing to have
(33:53):
if the tenant is paying for it. You see, you
want to own as much real estate as possible, and
you can always own more real estate when you buy
it with a mortgage than if you try to pay
all cash for the property. Another little twist in this
particular case, they had a son who was single, and
(34:22):
I suggested to them that they try to do something
together with their son because he was not a homeowner,
and they could do something with the son whereby the
son could represent that he was going to live in
the house and in fact do so for a short
(34:42):
while and then move out of the house and they
could rent that same house. So those of you that
have a son or daughter or grandson or granddaughter consider
doing something together with them, because you always get more
(35:02):
favorable financing as an owner occupant than you do as
an investor. You get to have a lower down payment,
a lower interest rate, and also you get more favorable
(35:22):
overall terms on that loan. So I'm going to suggest
to you anybody listening that has a son or daughter,
grandson or granddaughter, try to find a way to do
something with them. And even if they don't want to
remain in the property itself, after the property is purchased,
(35:47):
you could transfer their interest to you by way of
a quick claim deed, and you've now leveraged yourself much
more favorably than trying to buy as a as an Now,
when you're an investor, if you're buying a single unit property,
you're looking at a minimum of fifteen percent down payment,
(36:12):
and with fifteen percent down payment you have mortgage insurance.
At twenty percent down payment, there's no mortgage insurance. Now
we're talking about rental property, non owner occupied, the same property.
If you put twenty five percent down payment, you get
(36:34):
a lower interest rate than if you put twenty percent
down and that would be the reason that you consider
putting that extra five percent. So those of you that
are inclined to want to generate income in your retirement,
(36:54):
or forget retirement for a minute, you want to just
generate passive income, it's critical that you understand there are
properties out there that will provide you better returns. Then
you get in the bank. Now, if you try to
go to the bank and you look at what your
(37:14):
rate of interest is, it's not very much. Even if
you find a bank where you can get one of
these higher rates of interest, like five percent. Even if
you can find a bank that pays five percent interest
(37:35):
on your money, you're not making money. You're losing money.
If you have five percent interest on a savings account
and you pay taxes on your interest, and you have inflation,
you're losing money for every dollar you have in the bank.
(37:57):
Now you get to fool yourself because you get to
see that the balance is increasing and you're actually making money,
at least it appears that way. But again, you have
to always look at making money. You have to always
look at making money from the point of view of
(38:17):
what are you getting after you pay taxes and what
are you getting after inflation. So, if you want to
know how to get twenty to thirty percent annual return
on your money safely, you see me and I explain
to you how to do that in the world of
income producing real estate, and we'll talk more about that
(38:40):
in the next segment. Folks, you want to learn about
real estate for retirement and you want to build your
retirement income around income producing property. Also, if you have
kids that you want to put through college, you don't
want to save money for their college education. You want
(39:01):
to invest in real estate where you can get a
twenty percent plus return on your money safely, instead of
the small amount of money that you'll get by putting
it into a savings account or a five twenty nine plan. Folks,
investing in real estate is a specialty of mine. Helping
people buy and sell real estate is a specialty of mine,
(39:25):
So call me eight four three three two seven three
zero one seven email me our Willis team at gmail
dot com. It would be my pleasure to speak with
you individually. I look forward to talking with you. Welcome back,
(39:50):
Welcome back to Charleston. Welcome back to the final segment
of today's Rick Willis Real Estate Show. Well, folks, I've
been in the real estate business a long time. I
got started in the state of Maryland in the early
nineteen seventies and relocated here to the Low Country in
(40:14):
nineteen ninety eight. And people oftentimes ask me, you know,
how do I compare this part of the world to Maryland?
And my reply is, well, I spent most of my
real estate life in Maryland, in the Baltimore area Annapolis area,
(40:37):
so I was in a reasonably built up part of
the world. And I love the idea of having the
Low Country where you can be in the metro area
if you want to, and you don't have to drive
very far to be out in the country and find
substantially lower prices. So you know, I helped somebody recently
(41:00):
a single family home for under one hundred and seventy
five thousand dollars. That's within about a forty five minute
drive of downtown Charleston. So there's some very affordable properties here.
And I just had a phone call while on a
break of somebody that called me on a seventy five
(41:22):
thousand dollars property. Now that's seventy five thousand dollars property
is a complete redo, a complete rehab. But yet I
want you to know that there's some very very affordable
prices when you get outside of the metropolitan area. I
have somebody that I'm going to be showing a property
(41:43):
to this weekend. It's priced under one hundred thousand dollars
and it's about an hour's drive outside of Charleston. But
at the end of the day, if you're willing to
drive a little bit, you can find some very very
affordable properties in the greater Charleston area, both vacant land
(42:04):
as well as houses. On something that I have not
talked much about in the past, but I want to
complete on this segment of the show is something called
a lease purchase. Now for those of you that would
like to buy but you can't afford to buy right now.
(42:26):
You either have a house you need to sell, you
have some credit that you need to repair, you have
something going on in your life that doesn't allow you
to buy right now, but you'd like to, you might
want to consider checking out what is called a lease purchase. Now,
people confuse the word lease purchase with rent to own.
(42:49):
I did not say rent to own. I said lease purchase.
I have access to a property or properties in Summerville
that you could move into on a lease and rent
the property, providing you also had the intention of buying
the property. Now, how that would work would be the following.
(43:13):
You would look at the property after you went to
a lender and they told you that you could qualify
for buying that same property sometime within the next twelve months,
and that can all be done over the telephone. Then
you look at the property and you enter into a
lease to rent it, and at the same time you
(43:36):
enter into a contract of sale to buy it. Now,
don't confuse what I'm saying now with a lease option.
I did not use the word lease option. I use
the word lease purchase. So you can't rent the property
unless you also commit to buy it by way of
assigned contract, and you have a set of circumstance answers
(44:01):
that the lender says yes when you have this, then
you can buy the property. The situation that happened this
past week is somebody wanted to do a lease purchase.
So I had somebody this week that wanted to do
elise purchase and their circumstances were that there was a
(44:25):
death in the family and this lady's husband passed away
and all the credit in the family was in his name.
So she has the ability to buy, but doesn't have
any credit. So we put her in touch with a lender,
and the lender said, yeah, you can get established and
(44:46):
get some credit to be able to buy, but it'll
probably take ninety days minimum up to six months maximum
to be able to get your credit established. So we're
creating a situation where she's going to be moving into
the property under what is called a preoccupancy agreement. Somebody
(45:08):
has had their home on the market for sale for
a year and they called me and asked me for
any ideas that I might have of getting the household,
and I explained to them about the lease purchase. And
I'll be having a more detailed conversation with that person
later today. Now, this particular property is already listed with
(45:30):
a realtor other than myself. And I'll be on the
phone call with the owner and the other realder to
see how we might work together on this transaction. You see,
it's one thing to be able to have the idea
of a lease purchase. It's another thing to be able
to talk the talk, walk the walk and explain it
(45:53):
to somebody. Now, these same people that have the million
dollar house, I asked them, also, do you have a
mortgage on the house. The answer is no, And I said,
would you consider holding a mortgage whereby somebody could put
one hundred thousand or two hundred thousand dollars down payment
(46:15):
on the property and make monthly payments to you until
they were in a position to get bank financing and
pay you off. Answer, yes, they would consider that. So again,
a couple of creative ways to sell a property least
purchase and owner financing for a short while. Folks, anybody
(46:39):
out there that has an existing loan that is under
five percent interest, there's another creative way of marketing a property,
and that is to have somebody come in and take
title to your property subject to your existing loan. Now,
subject to do is not to be confused with someone
(47:02):
assuming your loan. The loan would stay in your name,
and somebody would come in and take title subject to
the existing mortgage that you have, and they would make
monthly payments to you, and you would in turn turn
around and make monthly payments to the bank. But that's
another creative way of finding a buyer for your home.
(47:25):
So forre's anybody out there, whether you have your home
listed for sale or don't have it for sale, and
you're looking for creative ways to attract a buyer for
your property, you might want to reach out to me.
And if you have your house listed, I could probably
find a way to work with your existing realtor and
(47:48):
have two separate real estate agents marketing your property and
find a way to do so very cost effectively for you. Folks.
I am I've been in this business for a long
time and there's lots of creative ways to buy and
sell real estate. If you're listening to my show and
(48:12):
you have any interest in buying any kind of real estate,
you want to make sure you have a buyer's agent.
And a buyer's agent is someone that represents you and
you exclusively and negotiates on your behalf. And what's interesting
about having a buyer's agent is that you don't have
(48:38):
to pay the person. When people hire me as their
buyer's agent, I haven't a written agreement with them that
says they don't have to pay me anything. I either
get paid a portion of the commission by way of
the listing broker or directly by the seller. There are
some agents who will require you to say on an
(49:00):
agreement that says they get a certain commission and if
the seller is not going to pay for it, you
need to pay for it. Well, that's not the way
I work. And if you want a buyer's agent representing
your best interest, you want a guy like me who's
been around the block a while, knows all the tricks
of the trade on behalf of representing buyers and getting
(49:23):
a good deal. So I want you to reach out
to me, folks. I want you to call me directly
on my cell phone, Rick Willis eight four three three
two seven three zero one seven, or please email me
Rick at Rickwillis dot com. Now, for those of you
(49:46):
that want to know a little bit more about me personally,
please visit my website Rickwillis dot com. Read my bio.
I think you'd want to work with me after you
know my background, Folks, there is there's no substitute for experience,
and I don't think you can find anyone more experience
than the guy that you're listening to right now. So
(50:08):
I look forward to hearing from you directly by way
of phone call, text, or email. Folks, have a great
weekend and wishing you the best. I'll talk to you later. Bye.
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