Condo market. Student loans. Property tax proposals

Episode Transcript

Speaker 1 (00:07):
Navigating today's real estate market can be tricky. Wanta buyer,
soela house finance, or insure a house, or stuck with
a house and don't know what to do. Florida Talk
real Estate has been your local one stop real estate
shop since twenty twelve. Get the advice you need from
your local real estate pros. Here are your hosts, Jim
Depola and Johnny c. You live on real Radio.

Speaker 2 (00:28):
Yeah, good South Florida. Morning to you.

Speaker 3 (00:31):
Welcome to another edition of Florida Talk Real Estate. We
got you for the next two hours of infotainment. It's
great to have you out there. Ninety two one one
o one seven. Thank you for tuning in. Of course,
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If you're like, let me check that out, you can
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free eight seven seven nine two seven six nine six
nine with your questions, comments, concerns in the world of
real estate.

Speaker 2 (01:32):
Hit us up first voice. You hear melodious tones of
our producer. Extraordinary. There's Jimithy, my brother from another mother.
What's up, dude?

Speaker 4 (01:39):
Hello, Hello, and good good morning gentlemen, Happy Saturday.

Speaker 2 (01:43):
I'm talking them.

Speaker 3 (01:43):
Good to see you as always. Well, Johnny C. Is
me your old buddy, your old pal, You're your traffic control.
Let's get your starting to line up. They're very important
people on a Saturday morning, like Mike Row, the mortgage
guy from the mortgage room.

Speaker 2 (01:54):
Hello, Michael, everything all right?

Speaker 5 (01:56):
I will you won't talk.

Speaker 6 (01:58):
I can't talk in the middle of this thing.

Speaker 5 (02:01):
Good morning, off air.

Speaker 6 (02:02):
I'm saying, I'm trying to stick down to Jimmy that
my camera. He's got the wrong. Well he didn't have me.
Now he's got the wrong because I got two cameras
on me. Oh note something like that.

Speaker 5 (02:11):
Okay, I like what I need you to do, and
you should log out of both and then take one
of the links and links and turn it back on.
I'll let you back in the studio. So we're gonna
have Mike come out of the studio.

Speaker 2 (02:22):
Get out of it.

Speaker 6 (02:22):
But I'm here, I'm not I'm in the studio. I'm
not walking out. Get out of here, good morning, and.

Speaker 2 (02:28):
Then we'll let you back in.

Speaker 6 (02:29):
All right, hold on, how walk?

Speaker 2 (02:31):
Here? Is that? Leave? And then I let you walk okay, okay.

Speaker 5 (02:34):
Well Mike's doing that. We have something a little change now.
Stream Yard has a new system where if you're watching
this on your iPhone or a phone instead of a
tablet or a computer whatever, And now it's in the
right mode. What is it portrait mode and landscape mode.
Now you could do it landscape or portrait mode.

Speaker 2 (02:55):
Gotcha.

Speaker 5 (02:55):
So if you're doing it on your phone, you actually
have a better experience. Now you're on for the first time.

Speaker 2 (03:00):
Yeah, well, very nice.

Speaker 3 (03:01):
That's the melodious tones of our fearless leader. I'll introduce
him in just the second year. It's always pleasure. It's
been feels like it's been far too long. Say good
morning too. When you get a chance to get the
guy with the name on the sign, man, that's big
dog stuff. Right there the loves is a PAULI Krasker.
There he is right there to my right, your left,
there's Paul Krasker.

Speaker 2 (03:17):
Good to see us, sir, Great to be here, counselors.

Speaker 3 (03:19):
Nice to see as always, and thank you for finding
time on a Saturday to join us. And yes, Jimmy
D's over there, he's our fearless leader. Oh no, what's wrong.

Speaker 5 (03:28):
I don't like the facial expression.

Speaker 2 (03:29):
Nothing.

Speaker 5 (03:29):
We're we're really picking up an audience with that new
Facebook thing.

Speaker 2 (03:33):
Oh all right, excell wow with the new Facebook.

Speaker 5 (03:37):
Thing, with the thing I just told you about.

Speaker 2 (03:39):
What you think that's why they're tuned.

Speaker 5 (03:40):
Without a doubt. We have new people. Hey, is this
the first time you guys are here? The ones that
are saying hi, Is this first time you've ever been here?

Speaker 2 (03:47):
But why do you think that would be?

Speaker 5 (03:50):
I think it's easier to see on Facebook now.

Speaker 2 (03:52):
Like it tells them it's coming.

Speaker 5 (03:54):
Maybe I don't know. I just I mean, I didn't
know about this feature until this morning when I turned off.

Speaker 2 (03:59):
If it's something that announces it's happening, that is very useful. Yeah,
Jimmy D.

Speaker 3 (04:04):
Thirteen plus years now, he is running Top Producing Keller
Williams Team, the Florida Home Pro Team, Keller Williams Innovations.

Speaker 2 (04:09):
Hi, jim Dapola, how you be.

Speaker 5 (04:11):
Hey, I'm doing really good. I'm doing well. So I
just want to tell everybody that's new to the show
what we're about about a little bit.

Speaker 6 (04:18):
About about yeaht about it.

Speaker 2 (04:19):
We are bad about it.

Speaker 5 (04:20):
We are the Florida Talk real Estate team. I'm so
glad to have Paul Krasker here from the law office
of Polyikrasker.

Speaker 3 (04:25):
And it's weird to call it that because we're a
sports show. Talk about following for the Banana and the tailpipe.

Speaker 5 (04:33):
That's Johnny c our professional radio host or something like that,
pros pro of hosting, And he used to run a
sports show and I think he's co hosting a sports
show now right after his locker room here on iHeartRadio.
But Florida Talk real Estate has been around for thirteen
years now, we're almost going on year fourteen. Paul's been
with us for thirteen of the fourteen years. I think, Mike,

(04:55):
you've been with us, I think eight years or something.

Speaker 6 (04:58):
I thought I was going closer to ten.

Speaker 5 (05:00):
Yeah, it might it might be ten.

Speaker 6 (05:03):
I forget what year.

Speaker 5 (05:03):
Yeah, it might be sixteen, it might be sixteen, seventeen,
like that, seventeen years now?

Speaker 7 (05:09):
What's the traditional gift for ten years?

Speaker 6 (05:12):
No waiting?

Speaker 7 (05:13):
Like a silver plate or paper?

Speaker 6 (05:16):
Right, and.

Speaker 7 (05:19):
Everybody always tells me what the year is.

Speaker 6 (05:21):
It is paper.

Speaker 5 (05:22):
So our show is all about everything about Florida real estate.
We don't try to spend the market. It isn't really
a sales show. Where we try to teach people in
a fun and entertaining way about what's happening in the
market and let you know about government programs and services
out there that you could use for free. Paul's going
to talk about one of those programs today, the student

(05:42):
loan Modification program. Paul, we've been sending quite a bit
of people over to you compared to the last several months.
It seems like all these people right now are saying, Hey,
I need some help in my student loan payment. So
I'm sure that's all because all the government changes, right.

Speaker 7 (05:58):
That's exactly it. That they're finally catching up to the
point where they've got notices saying, you know, you're supposed
to restart your payments in whatever it was June or July,
and they're realizing there are some repercussions coming up.

Speaker 5 (06:13):
Yep. So we're going to go into that a little
bit later, and we talk about all things for real estate.
We have microu here from the mortgage firm. He works
as a loan originator for a direct lender called the
mortgage Firm. He's in multiple states. He's helped tons of
our clients over the years from this show that you're
listening to right now, helping them with refies, mortgages, also

(06:34):
just counseling to figure out how to get a mortgage
or a refi, or if a refi is best for them,
or there are other ways that they can get what
they want without going through the process of resfy and
saving a lot of money. The show's all about saving money.
Oh yeah, So anyway, and then me Jim Depola with
kW Innovations and the host of the show co hosts

(06:54):
with Johnny C. We've been doing this for thirteen years.
Our goal is to educate you so you can make
decisions about to get where you want to get to,
not what we want to sell you. And you'll find
out as you listen to us that's the way we
are and hopefully we'll have some fun.

Speaker 2 (07:09):
And remember it's easy too.

Speaker 3 (07:10):
You can connect the dots Florida Talk real Estate, the
name of the show also a dot com Florida Talkrealestate
dot com. We call it the one stop real estate
shop for a reason. As we just mentioned some of
the professionals in the studio, this is not a full
representation of the team. This is a team of prospros
that work cohesively together. When you're buying a home, selling
a home, stuck with a home, you don't know what

(07:32):
to do. If you have a situation that touches the
world to real estate, even student loan debt, yes, that
affects whether or not you can get a loan. It
touches the world of real estate. We got a professional
to handle all that and so much more. One click
away Florida Talkrealestate dot com, as noted on Facebook and YouTube.
Lots to consume and share away because you can change lives,

(07:52):
including your very own with the prospros a Florida Talkrealestate
dot Com.

Speaker 5 (07:56):
Hey Mike, did we fix your problem yet?

Speaker 6 (07:58):
I'm on my which line tops camera, I'm not I'm
not on the normal camera right now, so I don't
know if.

Speaker 5 (08:03):
This one is Why is that not happening?

Speaker 6 (08:06):
Do you see me somewhere in this case?

Speaker 5 (08:08):
I see you, and.

Speaker 2 (08:09):
I will tell you.

Speaker 3 (08:10):
If you're new to the show, this'll be this is normal,
It'll be the right side of my face.

Speaker 5 (08:15):
This is that one on later. Okay, I can't deal
with that right now, So.

Speaker 6 (08:19):
I can't deal with it.

Speaker 7 (08:19):
It's a nine issues start.

Speaker 3 (08:21):
Yeah, well and uh and we we deal with our
technical issues on the fly.

Speaker 5 (08:25):
Oh and on top of it, I just got to
note that none of the names that are connected on
our little cubes are correct. So all the new people,
you have to figure out who we are.

Speaker 2 (08:34):
This we know that's part of the fun. We have
to make it fun for you too.

Speaker 5 (08:39):
Yes, yes, yes, Ross.

Speaker 7 (08:41):
Oh there's a prize prize at the end of it. Yes,
everybody's if you can get it right.

Speaker 2 (08:47):
Right.

Speaker 5 (08:48):
So, what we're going to start off with today is
we're going to hold on. I'm pulling up the notes
here so I could know.

Speaker 3 (08:55):
What we're eight seven six nine six nine. If you'd
like to be a part of the program, this professionally
run program, we'll give you two hours of infotainment and
you're always welcome to join in conversation at hand. If
you have a concern or something you'd like to bring up,
don't be shy, you're welcome to join. In fact, we
love taking the phone call, so line them up as
you please.

Speaker 5 (09:16):
So we're going to talk about what you sent me.
We're going to start off talking about what you had
sent me, which was the property tax bills I was
going to talk about this week. We mentioned it late
a little bit last week, and I was going to
go into them. There were eight proposals from the House,
the state House to try to eliminate or reduce property taxes,

(09:40):
especially for homesteaded people, and last week there were eight.
Magically you're turned into seven this week. And then Governor
Desanta said, we're not putting any of them up for
a vote. He thought it was ridiculous that the House
came up with seven different ideas. And the idea was
to float that out to the and the House and

(10:01):
then figure and then maybe float multiple bills out there
for the voters to vote on.

Speaker 3 (10:06):
I thought the intent was to float them all out
on the ballot, and in my initial reaction was, people
get lost in amendments.

Speaker 2 (10:13):
As is, and now we're going to have to choose
between eight of them, and you're like, which one do
you like better to save your properties? Actually like, oh man,
that is messy.

Speaker 5 (10:22):
And they wouldn't have went where all of them went
through because the House and the Senate have to vote first.
They have to vote first, and then whatever got approved
by that would go up for the ballot, right, so
there's one filter system before sure. So this was all
the House side. The senators produced nothing that I know of, right.
The state senators produced nothing on the property tax bill.

(10:43):
Governor DeSantis has talked about it a lot, saying what
he wants, but he hasn't really given out a plan himself.
So there's a lot of House representatives that are upset
with him right now. It's like, hey, you say you
want to do this. We came up with seven ideas
and you don't on any of them, but you're not
telling us how you would fix it yourself. So it's

(11:04):
kind of a big fat mess right now, and we're
on hold. Now. That does not mean that we might
not have a vote next year on some kind of
tax bill. Sure, we still might have that, hopefully, but
right now all the plans that were put out there
are kind of rejected. Paul, do you know anything more
about this than I'm saying right now?

Speaker 7 (11:24):
You know, no, not inside or no.

Speaker 5 (11:27):
I do you think I represented the Yes? I did.

Speaker 7 (11:30):
And you know, it's a tough thing. When you go
out to the voters to say we're going to eliminate
your real estate taxes. Who's not going to vote for
the problem is, how are you going to fix your
roads and your police and your fire and your medical
and everything else with a huge gap in your budget?

(11:53):
And you know, responsibly, I think you've got to tell
people how that's going to get cover before they make
make a educated vote.

Speaker 6 (12:06):
You have to make up that revenue somewhere, or you
got to cut the budget.

Speaker 5 (12:08):
Well, this is what I read. I read a pretty
comprehensive article about why they shut down the you know
why they shut down the push for these seven proposals,
All of them had schools taken out because forty six
percent of the school's budget. School budgets, public school budget
is coming from property taxes.

Speaker 2 (12:30):
Okay, so they can't you a question real quick, because
this is the perfect time to ask it.

Speaker 3 (12:35):
I've been trying really hard to figure out exactly where
the lottery money exactly how that stifles. We were pretty
much represented that that was for schools, right when I
read that.

Speaker 5 (12:45):
Almost almost pretty much, yeah it was schools.

Speaker 3 (12:50):
When I read that, damn near fifty of the property
taxes was for education, I was like, well, that's a
really big number. And how do we have to fill
in such a big gap because everybody I know plays
a lot.

Speaker 5 (13:05):
I know you're baiting me right now.

Speaker 2 (13:06):
I'm not baiting it, not at all. This is legit.
I can't find the where the hell that money goes.

Speaker 5 (13:11):
Oh well, well what they did is they started, well,
they started taking it out of the schools and used
it for other things, especially when the up that happened.

Speaker 7 (13:20):
Oh yeah, oh yeah.

Speaker 5 (13:23):
Yeah, total bit. I was just gonna say, that's my
other example. We were supposed to have no tolls on
the turnpike.

Speaker 2 (13:32):
All right.

Speaker 5 (13:33):
That's like the contractor that says, hey, we're going to
be done with your job on Tuesday. And then Tuesday
comes you go, hey, you're done with the job, and
the contractor looks at you like you're crazy and goes,
I didn't say this Tuesday, I say that Tuesday, I
said Tuesday. That's kind of like that. So anyway, so
the tax property tax bill right now is dormant, okay

(13:54):
about what they're going.

Speaker 2 (13:55):
To do, But you gotta appreciate that there's some effort, right,
I mean, I appreciate that.

Speaker 5 (13:58):
I'm open minded. I'm minded, but I agree with Paul
that you don't want to do something where you have
to go back. You know, there's the thing that you
learn when you own a business and you try not
to do takeaways. So if you work out a deal
with somebody, you try not later to do a takeaway
on them because they get upset about it. Sure, so
what you don't want to do, I think is overreach

(14:20):
and then come back and go, oh my god, we
have these big crisises here and here and here, and
you're playing whack them hole. We try to get the
money back.

Speaker 3 (14:27):
And you also don't want to shift shift the burden
to a lower class, right because the idea, well, we'll
just raise taxes on consumable products. You're like, well, that
that that hurts this segment of people way more than
it does the property own her.

Speaker 2 (14:44):
So like it's got to be a good exchange if
this happens.

Speaker 5 (14:49):
Where we might find out is where we're at is
the good exchange. You know where we are.

Speaker 7 (14:54):
There are clearly some inequities with the real estate taxes, right, Yeah,
You've got somebody about h two hundred million dollar house
in pome Beach, and what's two percent of that four
million dollars? They're paying four million dollars a year in
real estate taxes, and they're certainly not getting four million

(15:14):
dollars of benefit from that tax. So I get it
on the high end. But and they're really supporting five
hundred thousand people who are paying next to nothing and
using many of the services, whether it's the healthcare whatever.

Speaker 6 (15:36):
The road is, fire road, Yeah, I mean, I think
everybody uses that stuff. But I get the point there.
I guess it's like proportional, right, So that's why you
use percentages in the first place.

Speaker 7 (15:46):
One of my favorite classes in law school was tax theory.
A great professor and he would just sit there and
talk to you, like the state taxes. He'd say, you know,
give me a justification for this, and you'd you'd try,
and he'd say, now, that's not really true because of this,
and that's not really true because of that, and you
finally say to him, like, okay, so what is the justification.

(16:09):
He says, there is none. It's just a convenient time
to tax people because the kids didn't earn it, and
the parents had already paid taxes on this money that's
now sitting in their bank account, and it's a convenient
time before the kids get free money to take a
little sliver for the government.

Speaker 2 (16:26):
Grab a little more. Yep.

Speaker 7 (16:27):
And he said there's no justification for it. And I
think this is one of those things too, where there's
really no justification for somebody to overpay pay four million
dollars in real estate taxes.

Speaker 2 (16:41):
Year after year after year.

Speaker 7 (16:43):
So maybe there's a maximum cap, maybe there's other things
that can be done besides eliminating but it seems like
a pretty drastic effort. And really, if you're just eliminating
the homestead real estate taxes, you're now unfairly burdening a
lot of people who I get it. The politicians figured

(17:05):
it out, these other people don't vote in Florida, so
they couldn't care less about them. But those non homestead
second home people are gonna be paying a big burden.

Speaker 6 (17:18):
Well, are you saying that their taxes aren't going to
increase or so the.

Speaker 5 (17:22):
I'm assuming it will. You got to make them money.

Speaker 7 (17:24):
Will there's still a ten percent cap on increases for them,
but they're going to have to pay. And then to
fill the gap from the homestead taxes, they're going to
have to look at other things like sales taxes.

Speaker 6 (17:37):
So you shift the burden to the non homeowners by
increasing sales tax.

Speaker 2 (17:42):
Do you think they do? You think they ever broach
state income tax?

Speaker 6 (17:46):
That seems like the logical place to make up that
you think.

Speaker 7 (17:49):
I don't think they can.

Speaker 5 (17:51):
I don't sold them.

Speaker 7 (17:54):
They've sold themselves against Texas, Arizona, all these other states
that are trying to fight for baby boomers from the
north As. We have no income tax, right, no state
income tax, and they're trying to one up it by saying,
now we have no proper real estate taxes, right.

Speaker 6 (18:10):
But to get there, Yeah, where's the money come from?
Or how do you make up that gap?

Speaker 8 (18:15):
All the proposals that I saw all of them.

Speaker 4 (18:17):
It was that whatever was left over, the state would
pay for it like they would make up. So it's
still coming out of the residents.

Speaker 5 (18:27):
And the other scary thing about that is that means
that the state has even more local control on the
local government, right, because they'll be controlling her strings than normally.
So it's more like less representation for taxes, right. And
what I mean because you're not going to your local official,
your county commissioner, your city commissioner, your school board commissioner.

(18:52):
You're going to the governor's office right or Tallahassee and saying, hey,
can I have this money please? Right?

Speaker 7 (18:57):
Well, there are some other taxes don't impact owners. There's
a bed tax, there's a tourist tax, and so I
think you'll see those jumping up pretty big when you
make a decision to vacation in Florida. You're not checking
other states to see what their sales tax is and
see what their tourist tax is and bed tax is.

(19:20):
You don't even know when you book a room at
the Hilton or the Breakers or wherever else.

Speaker 3 (19:26):
You don't know what the I wonder if I wonder
if that's a growing almost point of emphasis though for tourists,
because in the last i'll say year maybe plus, that
has been a focus in Vegas for a lot of
people going to Vegas and be like, look at all
this extra we're paying for where they're noticing line items,

(19:48):
and I wonder if that will shift to places like Florida,
if we start to really have an increase in that
where it will be no, because I'm with you more
times than not. If you're a tourist, you're on vacation.

Speaker 6 (20:00):
It is what it is, right, I'm trying to enjoy
my time until you start hearing that Florida is not
a great place to vacation because it's so expensive because
of all.

Speaker 2 (20:08):
The ads, right, and again it was I'm gonna say
it was about a year.

Speaker 3 (20:11):
Would you agree, Jim that the focus kind of well,
I don't want to say focus, but a lot of
people are noticing in Vegas. And then you start to
see Vegas numbers. Vegas still does well, but it's down.

Speaker 5 (20:21):
I mean it's down, well, revenues not down. I watched
these videos every single week now from I don't know
why I'm gonna start with this.

Speaker 2 (20:28):
First, numbers are down.

Speaker 5 (20:30):
To seven twelve, Yeah, seven and twelve percent. But the
revenue is still up for gaming, but per room they're
having less revenue. The management says, everything's fine, we're making money,
but that isn't what's happening in real life. I don't
believe because a lot of people I know I'm getting

(20:52):
I went to Vegas once in four years. You cannot
believe how many free nights I can get at like
ten hotels out there now. And I'm not even a
big gambler or anything. Right, I went out one time.
I didn't even I was so sick. I didn't even
give a little week. And they gave me, like, hey,
stay here for five days, stay here for five days
for free.

Speaker 2 (21:11):
Can you imagine? You know what I mean? He stay
here for five days for free.

Speaker 5 (21:15):
So they're they're hurting. They're not They're not asking me
to come out there for five days, mister big gambler.
And I'm saying that very facetiously, right, Uh, to have
people like me come out there, they need, they need
more bodies out there. But I wanted to get back
to the we kind of got a little off tangent.
I want to get back to the property taxes again,
because there is a Newsweek had a thing where they

(21:37):
came out with the highest and lowest states for property taxes,
and I thought, oh, that's kind of interesting. So the lowest,
I'm going to start off, the lowest property taxes in
the country, right is uh, West Virginia.

Speaker 6 (21:54):
Right.

Speaker 5 (21:55):
This is property taxes, now, not all types of taxes,
and it's only the average property tax for homeowners over
there is seven to twenty eight, seven hundred and twenty
eight dollars.

Speaker 4 (22:04):
Okay, okay, you're looking at it not from what the
the percentage is, it's.

Speaker 5 (22:11):
What how much they're actually paying, right.

Speaker 8 (22:13):
And of course that would make sense because of the
lower property values as well.

Speaker 5 (22:18):
Correct did you read this article? No, I'm laughing because
you're right on. You're right on where we need to go.
Thank you, Jimmy. No, don't apologize. So the reason why
is that it has a much lower national average for
medium home price two hundred and sixty one thousand versus
the national average of four hundred and twenty nine. So
that's part of it.

Speaker 3 (22:37):
Can you imagine though, at two hundred and sixty one
thousand paying seven hundred and twenty eight dollars a year
under property tax like that's.

Speaker 5 (22:43):
That would be awesome here, but you you know that
West Virginia is also one of the biggest states that
take money from other, you know, from the federal government
in other areas because they're not really covering all the
bills that they're supposed to have in that state. That's
the way it is, and that's why they have such
a low tax bill. So the next one is Alabama

(23:07):
eight hundred and four dollars, right, eight hundred and four
dollars a year, Arkansas eight hundred and seventy one. So
where do you think Florida lands? How much do you
think the average for Florida is If we're talking about
eight hundred, seven hundred.

Speaker 6 (23:22):
Average, but it's tied to property value.

Speaker 5 (23:25):
Of course, yeah, have value. Where do you think it
would be.

Speaker 6 (23:28):
Top ten out of fifty?

Speaker 2 (23:29):
Yeah, I would say ten times.

Speaker 5 (23:30):
Well, well, we're using numbers. We're using numbers now, like
eight seventy one, seven to fifty. So what do you
think the average property tax bill here is in Florida?

Speaker 6 (23:41):
Average just gave us a great thirty five hundred dollars.

Speaker 2 (23:46):
I'm going to say thirty six hundred.

Speaker 5 (23:47):
Oh my gosh, Okay, what do you think boy?

Speaker 4 (23:50):
I'd go highing that maybe five six What do you
think thousand, fifteen hundred, fifteen.

Speaker 5 (23:56):
Hundred, three thousand, six hundred and fifty nine dollars stinging
fifty nine dollars off?

Speaker 2 (24:02):
Wow?

Speaker 5 (24:02):
Right, we are prices like you're doing all right there?
Because so you are you Bob Barker or Drew carry person?

Speaker 2 (24:10):
Oh jeez, that's not fair. Why would you make any
make that. We all turned into Drew carry people after
we lost.

Speaker 5 (24:17):
After we lost?

Speaker 6 (24:18):
Yeah?

Speaker 5 (24:19):
So three, well, so three three six thirty six hundred
a year, right versus the lowest which was seven hundred
and whatever I said, seven twenty eight or whatever. Right,
So what do you think the highest state is?

Speaker 2 (24:30):
What do you think that number was twenty years ago?

Speaker 5 (24:34):
Oh? I don't even know. I wouldn't tell. I wouldn't know.

Speaker 6 (24:37):
I just wouldn't twenty years ago.

Speaker 3 (24:40):
So two thousand and five property values in Florida since
I moved here in two thousand, man, oh man.

Speaker 7 (24:45):
It must have been fifteen hundred probably what you were gassing.

Speaker 2 (24:48):
Yeah, yeah, I just I.

Speaker 7 (24:50):
Was factoring in that there are so many people who
are living in condos that are under fifty thousand dollars
in value are paying zero.

Speaker 6 (25:01):
But this is also statewide, so it's you know, how
many condos are there?

Speaker 7 (25:07):
So many those everything on the ocean, Yeah, so many.

Speaker 8 (25:10):
Yeah, but then you go inland and you know, the
property values are much lower lower.

Speaker 3 (25:14):
So yeah, gosh, even with all that said, we're still
thirty six fifty nine on average.

Speaker 5 (25:19):
And just to put in a perspective, Texas, right, we
always kind of think of ourselves as almost like sister states,
you know, in that way where they have the same
kind of inclinations. Fifty eight hundred dollars a year fifty
eight sixty, so considerably the higher. The highest state in
the country is New Jersey nine four hundred and thirteen

(25:40):
dollars start thirty six, So that's saying almost, you know,
eight hundred dollars a month over there.

Speaker 2 (25:45):
I don't think you're surprised either, Jimothy.

Speaker 8 (25:47):
Oh no, not from being there, not at all.

Speaker 6 (25:49):
But Jersey's got the full service gas stations.

Speaker 2 (25:52):
Yeah, you have to get out. Yeah.

Speaker 4 (25:54):
Actually, you want to talk about one thing that's a
bit different. The sixty percent of their property tax bill
goes to schools.

Speaker 6 (26:02):
Yeah, school tax up there is much higher.

Speaker 8 (26:05):
And the thing about it in the town that I'm from.
The there's two and a half schools.

Speaker 4 (26:12):
You got an elementary school and middle school one one,
and then four towns share the high school.

Speaker 2 (26:19):
That's it.

Speaker 4 (26:20):
That's the schools that you have sixty percent of their taxes.
I just saw my brother's tax bill came down here
for by mistake, and I saw it. And he pays
on a three bedroom, two bath ranch house. It's estimated
to be you know, five six hundred thousand is the value.

Speaker 8 (26:38):
He pays twelve thousand.

Speaker 5 (26:39):
Dollars a year proper, thousand dollars a month.

Speaker 4 (26:41):
And that's cheap because all the houses around him are
million dollar homes and they pay twenty twenty five thousand
a year. And that's just residents. This isn't sitting on
you know, Hutchinson Island or something like that. You know,
is the example that he gave Paul. I mean this,
this is just your average home in that town. But
now it's wealthy people.

Speaker 5 (27:00):
So which state do you think has higher taxes? New
York and New Hampshire, New Hampshire, New Hampshire you think,
I guess New York. I would have went to New York.
New York has six ninety six in New Hampshire seventy
seven to fifteen. So Mike was right. I wouldn't have
thought I wouldn't lived for your dad. Do you think

(27:21):
why did you think that, Paul? What did you think
New Hampshire. I would have thought New.

Speaker 6 (27:26):
York, Paul said, New York.

Speaker 7 (27:27):
Yeah, oh you said no, I thought it was New York.

Speaker 5 (27:29):
Oh I thought you said New Hampshire too.

Speaker 8 (27:30):
You know, upstate is going to bring that down compared
to you know, the city, right, Oh.

Speaker 5 (27:35):
Yeah, that's.

Speaker 7 (27:37):
More Hampshire. They have bring that down too.

Speaker 5 (27:40):
Yeah, that's true. Yeah, So that's pretty interesting about the taxes.
So you know, Florida isn't like the super high tax
state in the country. We're kind of in the middle.

Speaker 2 (27:50):
In the middle.

Speaker 5 (27:50):
In the middle is where we are, and everybody's complaining
about it.

Speaker 7 (27:53):
Where's California?

Speaker 5 (27:54):
Good question. So California is actually less than Texas fifty
to forty. Texas is fifty six, fifty eight sixty.

Speaker 2 (28:03):
I'm stunned by that.

Speaker 5 (28:04):
So yep, and here's the surprising state though. The second
highest state, or one of the highest states, if not
second highest, was Washington State sixty three hundred a year,
which I didn't expect that.

Speaker 7 (28:16):
Was this only residential.

Speaker 5 (28:19):
Let me see here, it didn't talk about it's all
it's all properties. It doesn't talk about homesteading in here,
but it says home value. So I'm assuming that it's
it's home right. It doesn't say paul.

Speaker 7 (28:33):
So I think that's a piece of why you're getting
those numbers the way they are, because if you're able
to rely on a big corporate tax base to get
your tax revenue, you can keep the home value home
millage rates down.

Speaker 5 (28:50):
Well, here's the big scam that I think has happened
in Florida. And we've seen this happen twice, and it's
happened now, Right, it's happened now. And I think it
happened during the boom. The property values increased way more
than historic norms. Right, we just went through this again.
I think we're going to start going through a little
bit of a correction. Okay, we'll see, we'll see. I

(29:11):
think we're seeing that already. But how big of a
correction we don't know yet. But what I think, So
the two times that this happened, right where we had this,
the cities were sometimes lowing the millage rate, but people
were still paying more money, so they were paying a
lower tax percentage, but because the value of their house

(29:35):
increased so much, they were still paying more in taxes,
like in actual real money. Right, So let's say that
you had a two hundred thousand dollars house that you
were paying two thousand dollars a year in taxes and
then it increased to three hundred thousand in one year. Right,
they would reduce your tax rate, but because your home

(29:58):
bill went up, the cities were actually making more money. Right,
The municipalities are making more money attack and less. And
that's what happened in Ports Saint Lucy. Ports Saint Lucy.
There are articles about this, there's news articles about this.
Right now, why is there a tax bill going up
when our property values are going down? Because Imports Saint Lucy.
For the first time since we've had this show, property

(30:21):
values are going down in Port Saint Lucy.

Speaker 2 (30:23):
Yeah, but hey, but you're getting a soccer complex.

Speaker 5 (30:25):
Sore and you got that empty film studio sure up.
So the thing is is that their complain is like
because they're getting squeezed for the first time, they're seeing
depreciation up there, and they're like, wait a second, my
property values are going down, but my tax bills going up, right,
And Ports Saint Lucy city of Port Saint Lucy is

(30:45):
known for the biggest tax bill of the highest tax
rate in the whole state. Right, So I think that
what happens here is that when we're in these boom times,
the city commissioners and county commits sure and all that,
they they just have a field day because there's like
raining money to them, just extra money's coming in. And

(31:07):
instead of saying, you know what, we got to tighten
our belts and like give some of this back, you know,
and not just take it because we can, they don't
really do that. That's the way I look at it.
Does anybody have an like.

Speaker 6 (31:19):
Any anybody's an individual household budget, right, Like the money's
coming in, so you can spend it. Maybe you spend
money on projects you've had in the back of your
mind for a while. Maybe you just go out more, right,
So like the more money you make, the more money
you spend. Yeah, which's kind of logical. Use expands to capacity, Yeah,
why not instead? And so I don't know how they

(31:40):
do these budgets. Like it'd be interesting to like actually
sit down and track you know, the the meetings and
everything like, are they budgeting based on what's needed for
the programs? Are they budgeting based on what's available and funn.

Speaker 5 (31:52):
Oh, that's interesting. You could do it either way to
make the numbers work. Yeah, what do you other?

Speaker 2 (31:57):
You do with this a lot?

Speaker 5 (31:58):
So what do you think? Yeah?

Speaker 7 (31:59):
I mean the other thing you have to lay around
top of this is the reduction in federal services to
the states, which is a massive reduction. And in addition
to everything the states have been doing for its citizens,
the state local governments are going to have to pick

(32:20):
up more slack now that the federal government's cut its
budget not doing what it used to do for the states.
So you can argue that you need more money statewide,
county wide.

Speaker 6 (32:33):
So we went through that this year with Hometown Heroes, right,
they funded it. Instead of one hundred million for this year,
was funded at fifty million. This is restriction on the
the professions and what it's the result is that money
is lasting a lot longer this cycle because they've restricted
it to a limited number of professions. But that was
one of the like there was there's an example of

(32:53):
what they're doing at the budget level without all this
property tax stuff, right, They just I think that's to
Paul's point. They lost federal revenue for something I don't
know whatever, you know what it was, and they said,
this isn't the year right, fifty million?

Speaker 5 (33:06):
Yep, I'll hear us. Let's go ahead and take a break, guys,
if you don't mind. And then on the flip side,
we're going to do a segment that I'm really looking
forward to. It's going to be called Conquering the Florida
Condo Market. And what I mean by that is that
we're going to talk about from different perspectives, the realtor perspective,
the mortgage perspective, and the legal perspective of buying. Is

(33:27):
selling a condo in today's market and making sure that
you don't get burned because the regulations that the condo
owners are now supposed to a condoc community are supposed
to handle, plus the legal obligations of the seller to
the buyer, and then also what kind of financing can
you use for these units compared to like a normal

(33:47):
town home or a single family home. It's going to
be really good stuff.

Speaker 3 (33:50):
Nice, and I'll even throw in the completely ignorant an
education perspective.

Speaker 5 (33:54):
Yeah, well, I'm almost there with you.

Speaker 2 (33:57):
Just round it out a little bit.

Speaker 8 (33:59):
It's what I do best way to keep us balanced.

Speaker 5 (34:01):
John, that's right.

Speaker 2 (34:01):
That's what I do for the people. That's right for
the people. You are not on an island out there.
I have no idea, and I'll ask the questions. Hopefully
you're thinking. You're always welcome to join in.

Speaker 3 (34:14):
If you're gonna have a question, don't just let it
be something you ponder, try to get an answer. Eight
seven seven nine two seven six nine six nine toll
free in the studio. We are live on this twenty
fifth is twenty fifth of October.

Speaker 2 (34:29):
I can't believe it. Oh my goodness.

Speaker 3 (34:34):
Join us if you got a question. Of course, if
you'd prefer to just listen, I totally understand. If you're
not comfortable on the radio, Believe me, I get it.
Go to Florida Talkrealestate dot Com. Ask the question to
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Speaker 2 (34:49):
Know what, use it, lovett share it.

Speaker 3 (34:50):
You can change lives, including your very own, with the
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Speaker 2 (34:54):
We're back in four minutes. Thanks for being with us
every Saturday right here on Real Radio.

Speaker 1 (35:13):
This is Florida Talk Real Estate with Jim Depola and
Johnny C. Got a question for the show, Call us
live at one eight seven seven nine two seven sixty
nine sixty nine.

Speaker 2 (35:22):
Yeah. I give it to you again and again and again.
It's toll free eight seven seven nine two seven six
nine six nine.

Speaker 3 (35:28):
Dial in with your question comment concern. We got you
for a two hours of infotainment.

Speaker 2 (35:33):
That's right.

Speaker 3 (35:33):
We'll take you up until eleven on this Saturday, twenty
fifth of October. Thanks for being with us ninety two
one one o one seven. You can use your free
download your iHeartRadio app. We are worldwide at that point,
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a ton of informational chunk videos to consume. Do that

(35:55):
consume away? Information is power? Johnny C is me Jimmy's producer.

Speaker 2 (36:00):
Shorten Air.

Speaker 3 (36:00):
What's uping, dude, Good morning, Good morning, Mike Row. He's
the mortgage guy from the mortgage firm.

Speaker 2 (36:05):
He's right over there.

Speaker 6 (36:06):
I am here.

Speaker 2 (36:07):
We have Paul Krasker with us on this Saturday. From
the loss of Polykrasker.

Speaker 6 (36:11):
It feels like, well, you said a lot of Crasker there.

Speaker 3 (36:13):
There's a ton of Crasker going on. It feels like
the first time this year I've seen you. But I
could be mistaken.

Speaker 7 (36:18):
I was here two months ago, was I here?

Speaker 5 (36:21):
I don't think you were here though, That's.

Speaker 2 (36:23):
Why I missed you. Might be the first time I've
seen you this year.

Speaker 5 (36:26):
Blacker sucks.

Speaker 7 (36:28):
I hate you thought you were gonna get it.

Speaker 2 (36:30):
Yeah, I was gonna get all of it. Yeah, no,
I hate I hate going that long way.

Speaker 6 (36:33):
Managed to avoid court this year.

Speaker 5 (36:35):
I did.

Speaker 2 (36:37):
I need for counsel to do that. Pure blind. Always
a pleasure to see you. Yeah, thanks for being in
the studio.

Speaker 3 (36:45):
And of course, uh, Jimmy D Jim Topola thirteen plus
years now, I've told you he runs a top producing
Keller Williams team. It's the Florida Home Pro team Keller
Williams Innovations, and he has been our leader on this
show for that long as well.

Speaker 2 (36:58):
Hey Jimmy D.

Speaker 5 (36:59):
Jim Topol, Hey, I'm doing all right. I'm doing all right.
I don't know about our feed right now. It looks
like I'm being blocked, but whatever block Okay, Yeah, I
don't know. I put out a little thing saying we're
back up now buying and selling condo tips, but it's
not coming through, so I don't know. I see it live,
you're seeing it. Okay, good, it isn't working on my do. Then, Hey,

(37:20):
we got a lot to talk about today. We're going
to talk about conquering the condo market in Florida. I
feel like there's gonna be you know, we've already gone
through a lot of changes in the condo market, but
I feel like the condo market is gonna wake up
in the near future where there's gonna be a lot
more opportunity for affordable condos. I think like condos could

(37:43):
be a key for the affordability crisis in Florida. And
the reason why I'm saying that is because in twenty
twenty one, there was a big collapse of champlaining towers
and sunny surf side in Miami and it killed like
ninety eight people. And because of that, they changed a
lot of regulations about how condos are run and how

(38:06):
condos are keep their funding and how they are monitored
to make sure that they're structurally sound and ensured properly.
So all of those regulations went into effect basically twenty
twenty two, twenty twenty three, and it became a shock
to the condo community in Florida, mostly South Florida East Coast,

(38:30):
West coast, because of the strict rules. Before these new regulations,
there were regulations on the books where the condo boards
had to have a certain amount of money in reserves
to take care of future repairs and upkeep and deferred maintenance,
and that they were supposed to check their properties to

(38:51):
make sure that they were in good conditions structurally sound
condition for the future. But a lot of times they
figured out ways to wave or get around those regulations
where they were kind of kicking the can down the road.
But these new regulations are like, you mandatorily must do this,
and it's going to be this way from now on.

(39:12):
And another thing they did is made the condo board members,
anybody elected to the condo board to have like I
think it's only like four hours of training, but any
training is helpful, and training about understanding election and election
laws so that they don't violate elections in their community,
but also what their legal responsibilities are to the community

(39:32):
to uphold the laws that they're required to uphold. Legal responsible,
legal response, fiduciary I think is that what it's called, right, Paul,
Fiduciary responsibility.

Speaker 7 (39:42):
Yeah, it's well, any board that you're on, you have
a fiduciary duty to the company or the shareholders or
to do the best for their interest, and there's liability
associated with that. Today, I don't think you could get
me to be on a condo board.

Speaker 2 (40:01):
What is the liability? What's the recourse if you're proven
to be negligent in your duty?

Speaker 7 (40:07):
Potentially personal liability?

Speaker 2 (40:09):
Huh?

Speaker 7 (40:09):
And then you have to look and see does the
board have directors and officers insurance that's going to cover
you for any personal liability?

Speaker 2 (40:18):
And this would all be civil.

Speaker 3 (40:19):
Yes, So why haven't we seen a run of civil
litigation against a bunch of these condo boards.

Speaker 2 (40:27):
You're starting to oh, okay, so we it's just hurry
up and wait, that's what Well.

Speaker 7 (40:31):
Look, Jim said that the regulations came in in twenty
twenty one, twenty twenty two. The reality is that the
biggest financial impacts were supposed to be completed by December
thirty one of twenty twenty four. So what did a
lot of the condo boards do. At the suggestion of

(40:54):
their condo attorneys, they moved their annual meeting up from
January one of twenty twenty five, where January fifth, whatever
it was, where they would have been forced to pay
the full reserves. They just moved it forward two weeks,
had their annual meeting on December twenty two, where it

(41:17):
wasn't in effect at the time, and they passed another
year of half half funding or third funding of the reserves.
So it's really going to be at the end of
this year or the beginning of next when every board
is required to fully funds. That was a clever Yeah,

(41:38):
they pay those guys the big buck.

Speaker 2 (41:41):
Yeah, that's clever.

Speaker 5 (41:43):
So let's let's go into I want to go into
what the requirements were under the new loss, Paul, and
if there's anything incorrect, please correct me, because that's why
I want you here is to make sure. But what
I want to make the reason why I'm bringing this
up is that when people are buying a condo when
today's market, or people is selling a condo in today's market,

(42:03):
the sellers have obligations to disclose everything they know that
might be happening in the community, and they have to
give certain financial documents and other type of doctors, not
just financial rules and regulations, frequently asked questions, and if
they don't do that, they're kind of I don't want
to say kind of, but I think they were in

(42:25):
breach of the contract right as this contract because it
requires them to do all of those things.

Speaker 2 (42:30):
And those are when we hear condo docs right because.

Speaker 3 (42:36):
All the documents from the condo board that represents their
financial stability.

Speaker 2 (42:42):
I mean, is that essentially what we're dealing with.

Speaker 7 (42:44):
Yes, and the and the number of documents has expanded
dramatically since last year when they came out with a
new condo writer. So, and you also get more days
to review it. It used to be that the cell
was obligated to deliver all of the declaration of condominium,

(43:05):
the bylaws, the rules and regulations, the last year's financial statement,
the current budget, the frequently asked questionnaire, and any amendments
to any of those documents, and then you had three
days to review everything make sure you were comfortable moving forward.
And then the buyers locked in after that date, they

(43:25):
don't have a right to get out. Now they extended
that to seven days not three days, which is really
having a dramatic impact on inspection periods because a lot
of people forget to give all the documents up front
and don't have a great realtor who spends a lot

(43:48):
of time with the condominium board before their marketing to
get all these documents, put it into a link, connect
it to the MLS, posting that everybody can have access
to it before they even see the unit, but also
forward that link onto the buyer's agent to say, here

(44:09):
are all the documents right up front. Your seven day
period is going to run with the inspection period. So
there are a lot of people who are just sitting
back and waiting for documents, and ten days into the
contract they don't even have the documents. So they're going
to get another seven days beyond there, beyond the inspection

(44:32):
period in which to cancel at any time.

Speaker 2 (44:35):
Wow.

Speaker 3 (44:35):
As if we need another real good example as to
why you have to have a phenomenal realtor representing you.
Speaking of phenomenal relter gip, Yes.

Speaker 5 (44:43):
I have a question about real life stuff with this,
Paul Everything, Paul says is true. This is what happens.
We sit down and we tell to the seller, we
have three documents now right, We actually have three documents.
We started out with none and now have three, basically
stating to them, you must help us and provide this

(45:03):
information so we can give it to the buyers. If
you don't do that, the buyers have a right to
back out of this contract until those documents are reviewed.
And what happens in real life, Paul. The sellers will say, okay,
no problem. Then they call the property manager or the
condo board. It's usually the property manager. Property manager won't

(45:24):
give them all the documents. And I don't understand why
property managing companies act like they're clueless as to all
the documents that are required now right. They'll say, well,
the rules or regulations are on a website, which I
love when they're on websites. But a lot of times
the rules and regulations haven't been updated on the website.
They're not the current rules and regulations. They might be

(45:46):
five years old, ten years old, and they've been on
the website forever, and the property managing company will a
lot of times tell the realtors you're not the owner.
We're only dealing with the owner. Then you go back
to the owner and say, look, your property manager won't
deal with me. You've got to get this stuff, and
it turns into heck.

Speaker 6 (46:03):
They'll also say we publish what the board provides, and
then you got to kick it back to the board.
Then your homeowner has to get with the board member.
You know what I mean. So there's a cycle there
of not my fault, so it's not my response.

Speaker 5 (46:17):
So just us, Paul, Am I doing something wrong? I mean,
this has been a big struggle for my team dealing
with this in our customer service because we want to
help the people, but I don't know what to do
about this, and why are they act so clueless? Every deal?
They got to produce these documents.

Speaker 7 (46:33):
You know, when I'm talking to realtor groups, one of
the things I say to them is, this is an
opportunity for you because nobody's doing this. Nobody's getting it right.
I've been able to get people out of contracts literally
the day before closing when I just look at it
and I say, you know, I notice you never sent
us the the frequently asked questionnaire or the last year's

(46:57):
financial statements I'd really like to see that day. And
then I wait for them to send it to me,
and then I said, well, pursue to my three day
right of review cancelation. And they're furious with their realtor.
They shouldn't be. It was their responsibility, and I'm sure
the realtor told them it was their responsibility. What I

(47:18):
do is, you know, in your example, have Nancy get
on the phone with the seller, make a joint call
so that the management company can't play that shell game
with you, and say, these are the documents we need
if you don't have them, who do I speak to
within the association? Who is your CPA?

Speaker 2 (47:40):
Who is the.

Speaker 7 (47:41):
President of the board. I just got this listing, and
I want it all up front so that I know
that we're compliant. The new condo form adds in board
minutes for the last twelve months, board agendas for the
last twelve months, the current budget, list of delinquencies, how

(48:07):
many units are rentals. All of these things are important,
and if you're getting a loan on a condo, you
better start that three weeks before you sign a contract.

Speaker 6 (48:19):
It goes hand in hand with what I have to
look at when i'm trying to preapprove somebody, you know,
before underwriting, right, So my goal is to make sure
we're only in contracts I can get to the finish line.
So when you're buying a condo, I got some legwork
to do upfront, some homework to make sure that we
have a shot at doing it with the type of
loan that we're anticipating. And so I've been advocating for

(48:41):
years Jim, Hey, guys, you have a document section on
the MLS. Give me the bare bone, give me a
budget and the insurance dex at least at the very least.
And so when I see a listing like yours, Jim,
you don't know if it's Gym or it's Nancy. But
when you go into as if Jim has a condo
listing and you go to the document section, there is

(49:01):
certainly everything I need there to do my the type
of assessment I need to do at my level. It
may not be everything we need for underwriting, but it's
enough to give me like, yeah, we got a shot
at this.

Speaker 5 (49:12):
And you almost can see and taste the blood and
tears that are on those documents. You know they're electronic
to get them right. Because she goes through. It's the
bane of her existence really is the condos stuff.

Speaker 6 (49:24):
I've been dealing with condos here in South Florida for
my entire career in this and property management companies have
gotten better, okay, but they have always been difficult. I
always joked that their customer service was like I would
I forget how he said the joke. But they couldn't
even get hired at the DMV because their customers are.

Speaker 5 (49:44):
Like, hey, we have we have a friend, we have
a mutual friend of the DMV.

Speaker 6 (49:48):
Leave him alone.

Speaker 5 (49:49):
But but yeah, And the thing is, I'm dealing with
it right now, Mike. So when you say most of
them get better, I'm maybe that's been your experience, but
I'm dealing with the condo right now that I've called
up four agents. This is what's going on. They needed
to put on a new roof for the whole community.
They hired the contractor, they did the assessments, They collected

(50:10):
the assessments to have all the money. They broke around,
found out there's this beestest tile on the roofs. So
now they have to do asbestos remediation on top of
replacing the flat roof. Right, so they had to go
back recalculate figure out how much extra everybody had to
pay levy to second assessment. Everybody's paying it. It's almost done.

(50:31):
I think it's done in November. So our people are
selling the house. We disclosed everything that we know up
to this point. Now the property manager, because there's an
open permit on the property, open commencement on the property,
the title company is requiring that we have a sufficient
funds affid David.

Speaker 2 (50:50):
Sure.

Speaker 5 (50:51):
Well. The property manager won't sign it because they're like, well,
we got the bill from the contractors, but until they
open up the roofs, we don't know if there is
going to be extra costs. So we're not signing that document.
And now the title company will not close. Yeah, and
we don't know what to do. And I started calling
the other realtors to find out, like realtors that work

(51:13):
in this community all the time. I started like being
mister reporter investigating all this stuff. Three deals fell apart
because of this, because the property manager won't give them
the correct information. Three deals drop, and I can watch
the property values in this community just sinking. Every property
that's closing is closing, tens of thousands of dollars less
than the property before.

Speaker 6 (51:34):
And this is where you get into the like the
litigation thing, because what these homeowners are being, you know,
that much impacted by the inability to sell their property.
I don't know if there's somebody at fault or not, but.

Speaker 7 (51:46):
So I know that there are some realtors who are
going to the board meetings and they're sitting patiently and
they're saying, look, I believe in your condominium. I would
love to list and sell a number of units in here.
Nobody can do it because you're not set up correctly.
You need to have this, this, and this, You need

(52:07):
to put this link together. And I'm here to help you.
I will work with your property manager. I just need
the president and the vice president to commit to it,
to introduce me to the property manager and to say
this is a priority to get done this week. And
if you can do that, not only do I think
you can sell your unit, but you can pick up

(52:29):
other people in the building. Because the board's going to say,
here's an agent who believes in us. Here's the agent
who's being proactive and trying to solve a problem that
we have.

Speaker 3 (52:39):
So and you would think they would be motivated because
all these people on the board are all residents, right,
they all own condos in this community. They want their
values to remain high. And let's you would think so you.

Speaker 5 (52:51):
Would think it's crazy. I want to go back to
originally the rules and regulations that change to what people
have to do. I want to get it for from
Paul's perspective. After I go through some of the rules
and regulations had changed, then I want to switch over
to Mike and say, Okay, I've got a buyer. Now
what do I need to know from with my buyer's

(53:12):
hat on about financing and condos? Okay?

Speaker 3 (53:15):
Actually eight seven seven nine two seven six nine six nine.
Should you like to join the conversation with a question, comment, concern,
You're more than welcome.

Speaker 5 (53:22):
Okay. So the new law now requires that there's a
structural Integrity reserve study, and this is for any buildings
that are three stories are taller. When I never caught
on this Paul before was habitable stories. So I guess like,
if your first story is a parking garage, that doesn't
count if you're three stories, right, you.

Speaker 7 (53:43):
Could be a four story condo and be exempt if
there's two floors of parking.

Speaker 5 (53:50):
Right.

Speaker 2 (53:50):
Oh, if one of the floor of the pool, same thing.

Speaker 5 (53:54):
Okay, so commercial space, same thing, same thing. So structural
integrity reserve study is done for buildings that have three
stories or more of actual units on them, not just
their community structure. A seer is called serious sirs. Right,
So sears must identify all items for deferred you know,

(54:15):
deferred maintenance like the roof, the load bearing walls, fire proofing, protection, plumbing, electrical,
you know, waterproofing, all of the windows, doors, making sure
everything's done right, making sure everything's on point, and that
the deferred min is if anything exceeds and if any
of the deferred maintenance dispenses in this study exceeds twenty

(54:36):
five thousand. Wait wait see, oh, the deferred maintenance expense
or replacement costs exceeds twenty five thousand or just afflation
and failure to maintain negatively affects those other items. So
basically anything twenty five thousand or more, you're supposed to

(54:57):
take care of it right away, right, correct?

Speaker 2 (55:00):
Yes?

Speaker 5 (55:01):
Okay, now I know I didn't say that in the vestiat.
That's twenty.

Speaker 7 (55:06):
Each individual category, right, each.

Speaker 5 (55:08):
Individual category, and then said in the report, even if
you don't have to for me that you have to
put down useful life of everything that's there. So if
everything's looking good, you still have to have a useful
life estimate for each of the components for the building.

Speaker 7 (55:24):
So if you just redid the roof and it's a
forty year roof, you have to allocate one fortieth of
the roof into your reserves so that forty years from
now you've got enough money to redo that roof again.

Speaker 3 (55:40):
That's fantastic. Actually, I love to hear that because it's
not a big slice. They're adding little incremental pieces with
the plant. We know that forty your roof is going
to cost more than forty.

Speaker 7 (55:50):
Years probably, but they're also gonna they're working earning interest
on their money to get to that.

Speaker 2 (55:55):
Now, right, that's the man that sounds great.

Speaker 5 (55:58):
This report must be done every ten years. If you're
building his three stories or higher, you have to do
this report every ten years. And I said previously many
associations could waiver underfund the reserves. The new law doesn't
allow that. You must have all the reserves that are needed. Good.
The other thing is is that the association. Here's another thing.

(56:19):
The association may fund the required reserve contributions. The several methods,
so you could do it in your regular monthly or
quarterly assessments or yearly assessments. You can set a special
assessment aside just for that work, and when that assessment's done,
the assessment goes away. Or you can actually go for

(56:40):
loans or lines of credit. Now before you weren't able
to do that, I guess, paha.

Speaker 7 (56:45):
So a couple things there. Number one, your building had
to be thirty years old. Yeah, it doesn't mention before
it starts, and there's an exception for that. It's twenty
five years. If you're within a certain I think it's
a mile or a mile and.

Speaker 5 (57:00):
A half or a half mile I'm reading it right now,
three three.

Speaker 7 (57:03):
Miles from the coast, So most of the condominiums that
are built are close to the coast. So it's after
twenty five years you have to do this study once
and then every ten years from there you have to
do it again.

Speaker 5 (57:17):
That's called the milestone inspection, right, is that correct?

Speaker 6 (57:21):
Correct? And then.

Speaker 5 (57:23):
So after a milestone inspection, a seers may be delayed
up to two budget years of certain conditions supply, right,
So they're going to give you time to fix it.
But basically the state is saying, hey, when you have
these repairs, you've got to create a plan, and you
got to do it, and you can't kick it down
the road anymore.

Speaker 6 (57:42):
Just the reserves though, right, I mean, so it's it's
mainly about funding your reserves for long term capital expenses.
But and I guess it's the structural integrity is part of.

Speaker 5 (57:51):
Part of the part of that, right, part of that. Right.

Speaker 7 (57:53):
So anything that they find that's a real problem.

Speaker 6 (57:57):
Got to fix it, got to fix that now, and
needs your reserves.

Speaker 7 (58:01):
Now that you've fixed it there, that's only a fix
for fifteen years. The elevators need to be replaced every
X number of years. So you get all these layers
in there and you think, okay, forty years on a roof,
when fortieth isn't a big deal. They forgot things like
the plumbing lines that run inside the elevator shafts. Half

(58:26):
of those were old PDC cast iron whatever. It was
ready to go at any time. And when you're coming in,
you're doing the elevator shaft, that's the time to replace
that line. So you start getting these nuanced engineering assessments
of when to.

Speaker 6 (58:46):
Do what where?

Speaker 7 (58:48):
And those prices are especially especially on the buildings that
had been waiving their reserves for so many years in
the past under this myth that, oh, we're all wealthy
enough to be able to pay it when we need to,
we'll just do a special assessment at that time. And

(59:09):
then the people who said that when they were sixty
or now eighty, they've gone through half of their savings
and they get hit with a forty thousand dollars special assessment.
Guess what, They're not going to pay that forty They're
going to sell and go try to find someplace else
to live.

Speaker 3 (59:27):
Right.

Speaker 5 (59:28):
So, and we're seeing that a lot throughout the state.
I know there were several politicians in Miami trying to
change great some kind of laws or regulations to help
like senior condo owners that are homesteaded that or losing
their house's stakes.

Speaker 6 (59:45):
Income and this.

Speaker 5 (59:46):
Yeah, they try to give them skyrocket.

Speaker 3 (59:48):
Well, you mentioned the ability for these associations to get
loans for these repairs.

Speaker 2 (59:53):
And is that so that's new? Right?

Speaker 5 (59:55):
I think that's new because I'm not sure, but I
pretty what do you think, Paul?

Speaker 7 (01:00:01):
So, there's always been the ability you have to have
this money in your bank account is what the state said.
They didn't say how you get that money in the
bank account. So those are your three options. Special assessment
to put it in all at once now and make
the building more attractive to buyers in the future because
there isn't this overhanging obligation get a loan where you're

(01:00:26):
paying it back over time. So you say, okay, we
need thirty million dollars today, We're going to do a
special assessment. Because if you're going to get a loan
from a building from a bank, the bank is going
to want to see the special assessment passed by the board,
passed by the unit owners in place with an assignment

(01:00:47):
of those revenues from the special assessment back to the bank.
So those usually go hand in hand special assessment and
bank funding. And then the other option is just a
regular special assessment without bank funding. If you don't need
the thirty million today but you're just trying to build
up the.

Speaker 6 (01:01:04):
Kiddy Russia Russian investors. Yeah, yeah, yeah, so strings attached,
Yeah exactly, probably not so.

Speaker 5 (01:01:16):
And then the final component besides the buildings and the
studies for the buildings and the funding for the buildings
was working on the condo board members to make sure
they understood all their legal obligations and fiduciary obligations to
the community, make sure they still want to know. They're
teaching them about about elections, kickbacks, like when you hire contractors.

(01:01:38):
That's the probably number one part of fraud for condo
board members. When you get to pick the contractor. You
know a lot of times there's kickbacks involved there. There's
a lot of money bag. I think there was somebody
in Fort Lauderdale that they just out of the front
page everywhere millions.

Speaker 6 (01:01:53):
What if you just accept the money and then never
do anything.

Speaker 5 (01:01:57):
What do you mean except you mean it's a contractor.

Speaker 6 (01:02:02):
And take the money but do nothing with it or
do nothing for it.

Speaker 5 (01:02:08):
So they also so they also are taught about record
collection and transparency to make sure that if any condo
owners have questions about the financewers or any decision making process,
that they have easily and legal access to it, which
they should anyway, all that's abuse is what they're trying
to stop his abuse. So all these things, now this

(01:02:29):
is getting me to why I think that the condo
market is actually going to be potentially a bright shiny
spot in a weaker real estate market is that once
they get once they get control and they rip off
the band aid and they fix all these things structural integrity,
and they have all the reserves and finances for the
future to come ahead. That makes them much financially stronger,

(01:02:54):
which then hopefully will be able to get easier types
of more types of finance. Then if you don't, then
traditionally what we've seen before, and I think that's what
we're going to get into the next segment. If we
just take a break right now, just for a second, Mike,
when we flip on the flip side, I want to
talk about how mortgage companies look at Florida condos specifically

(01:03:17):
and what kind of loans usually can they get and
what they can do to make better loans.

Speaker 7 (01:03:21):
So you're talking about owner occupied opportunities, you're not talking
about investment opportuity.

Speaker 5 (01:03:26):
Well, it can be investment too, and I'm going to
talk a little bit about that, but I think we're
a little early. For the investment. You have to be
super cognizant. I'm going to show you how you do that.
But this is for both people. But what I think
is going to happen is is that the people I
get so many people, it's like they are on a
budget of two hundred thousand or two hundred and twenty thousand,
and they come to me and they've been searching on

(01:03:48):
Zilla and like I want all these condos. And then
I say, well, you're doing faha financing. None of these
condos fit the type of financing you need. And then
they're like, oh my gosh, I don't know if I
can buy anything at all. These new regulations I think
are going to solve a lot of those problems.

Speaker 6 (01:04:06):
Yeah, where the condo's essentially one component of the affordable
housing question or answer. And also the changes should make
it less risky for like kind of a long term
you know exactly.

Speaker 7 (01:04:18):
But good luck getting that condo questionnaire from the association.

Speaker 6 (01:04:23):
Yeah, that's that's I think we're going to talk about
that next. Like what's the take on the on the
financing side.

Speaker 3 (01:04:28):
Yeah, there's no money, man, Lots of great information always
to be consumed on a Saturday.

Speaker 2 (01:04:35):
Thanks for being with us.

Speaker 3 (01:04:36):
Of course, Always remember when you're looking to buy a home,
you're selling a home, you're stuck with.

Speaker 2 (01:04:40):
A home, you don't know what to do.

Speaker 3 (01:04:41):
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That's your right, my right, you're right, You're always right. Yep,
you're right, you right.

Speaker 6 (01:07:23):
Good morning, Good morning.

Speaker 3 (01:07:25):
Paul Krasger is here with the LOFs is of Polyi Krasker.
It's always a pleasure to have you in studio. Thanks
for being with us on a Saturday.

Speaker 2 (01:07:31):
On the left, by your right, and you're always right.
On Jimmy's left, you're always right, and that's right. Jimmy d.

Speaker 3 (01:07:37):
Of course, jim Dapola thirteen plus years now, I've told
you he runs a top producing caller. Williams Team it's
the Florida Home Pros team with Keller Williams Innovations.

Speaker 2 (01:07:44):
So Jim, Jimmy d Jim Topola you.

Speaker 5 (01:07:46):
Be hey, I'm doing good. I'm doing good, Happy South Florida, everybody.
Just a couple of things before we get into financing
condos and understanding all that is. First of all, if
anybody's listening and you haven't done it yet, please give
us to Google review. Just go to Google and search
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Let us know how we're doing. Tell us tell other

(01:08:07):
people why you like listening to the show, or if
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and just ask for us some free advice, give us
a review. We would love for you to do that.
Really big help and thank to our team. Thank you
very much in advance. The other thing, I want to
remind everybody we still got the charity thing going on
for KOP Mentoring Network. It's an at risk kids program, Paul.

(01:08:35):
It's based in Delray Sron Allen, who's been a long
time friend of mine. Oh my gosh, it might be
almost close to forty years now we've been friends.

Speaker 2 (01:08:43):
That's awesome.

Speaker 5 (01:08:44):
And ce Ron started this group about thirty five years ago,
and it was just to help kids that were like
Lat's Key kids whose parents were working all day long
and the kids had nothing better to do. He took
them in. He's got a Navy background, military background, so
he basically said to the kids, look, we're going to
do a lot of cool things after school, but if

(01:09:06):
you don't do your classes right, you can't participate schools. First.
These kids all went from failing out to like, I
don't know how many kids he's put through college. You run, Now,
that's so cool. Anyway, they have a For about six years,
they were doing a weekly podcast on their Facebook page,
kop Mentoring Network, and the kids produce it. They come

(01:09:27):
up with the content, they book the guests, they do everything.
They use the same system as we do the stream Yard.
But their computer's failing and every time they try to
do a new live podcast, the computer's just not working
for them, and it's they put so much effort into it.
So we're trying to raise money for a new Apple
computer that will last them many years to come. It's
a fifteen hundred dollars lap book that's we're hoping to

(01:09:50):
get for them with a three including the three year warranty.
You can go on our Florida Talk real Estate page
and go into the post and click on donate. Here's
the problem. We haven't been getting a very good response
on this yet. I was a little disappointed. But the
problem is is the link that the group gave me.
When you click on it, it doesn't go to the

(01:10:10):
donate page. It goes to the main page, and then
trying to find the donate page has been very difficult.
So if you're interested in any amount of money, five dollars,
ten dollars, every amount counts, the Florida's Talk real Estate
team's going to match it up to seven hundred fifty
dollars so we can get this computer for them. But
if you're having a problem signing up, or you don't
want to go ahead and click it, just give us

(01:10:31):
a call or reach out to us directly, and we'll
make sure that the money's directed that way. Ross has
already agreed to contribute some money Ross Americas from Bright
Wind Insurance Journal Beach. Thank you Ross, all amazing and
we're going to get this done for the kids before
the end of the year.

Speaker 3 (01:10:46):
Yeah, it's going to happen. And again, if you're interested,
a few bucks. Everybody contributes a few bucks, we get
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Speaker 7 (01:10:55):
So Jim, yes, just to give them an incentive for
everybody who's on the today, if you donate today, I'll
match the donations.

Speaker 5 (01:11:04):
Oh that's awesome, Paul, thank you so much. So please,
today is a really good day.

Speaker 2 (01:11:08):
Get Paul's money.

Speaker 5 (01:11:09):
Paul's going to match and we're gonna match. So it's
gonna be awesome. We want to get this computer with
the thanks.

Speaker 7 (01:11:13):
Get it done today.

Speaker 6 (01:11:14):
Repeat again. What's the surefire away? Somebody just heard that
and they want to do it. What should they do?

Speaker 5 (01:11:19):
The easiest way would just contact me on the Florida
Talk real Estate page and just say, hey, I want
to donate, give me a way to do it. That
would be the easiest way right now. But if you don't,
if you want to do it directly, just go to
our link and you'll you'll have the website there and
then just find the donate page. It is a five
oh one three c It's a totally legit nonprofit group,

(01:11:41):
and we know that s Roan would really help it out.
We already helped one of the kids get a car.
We helped them get a car through one of our
sellers donated a car, and I found out like a
year later, she's been driving it back from Duke University,
where they helped her get a scholarship at Duke. She's
driving back before she's a marketing major. I get singles

(01:12:02):
every time I talk about it. Thinking of a driving
a car back home.

Speaker 6 (01:12:04):
Should start a website. It's it's kind of like you
like the win. Whatever is money. This will be the
give Paul's money, spend, spend Paul's money.

Speaker 7 (01:12:17):
Yeah, if you guys, don't. If the people on air
donate three seventy five and I match that, then we're done.
And Jim's matching the seven fifty.

Speaker 2 (01:12:27):
It's there.

Speaker 7 (01:12:27):
It's done.

Speaker 5 (01:12:28):
Wow, come on, guys, you can do it.

Speaker 6 (01:12:30):
Thank you so much.

Speaker 5 (01:12:31):
That's awesome. Thank you.

Speaker 2 (01:12:33):
Win ben Stein's money.

Speaker 5 (01:12:34):
Is what you were saying? Yeah that one. Yeah, that's done.

Speaker 2 (01:12:38):
We're trying to win Paul Crashers.

Speaker 5 (01:12:40):
Bueler, Buehler, Bueler anyway, anyone, Well, let's let's go, let's
continue to talk about condos. You know, condos, the condo
market is a little different than the rest of the market.
We normally talk about the monthly reports came out from
the Florida Wilters Association, you know, we talk about months
of inventory a lot for single family homes, and we've

(01:13:01):
seen it as low as zero point seven months. That
was Importan Saint Lucy one time. Yeah, and we've seen
it well during the time we've been on the show.
We've seen six years up in Fort Saint Lucy during
the crash when me and Paul first started getting together.
We have but right now we've been averaging around five months,
five and a half months throughout South Florida. The condo

(01:13:22):
town home market is completely different than that. It's almost
double right, So the condo market's more like a year
on the market is the average, and there's some parts
where it's more than a year. Eighteen months atvaty twelve months.

Speaker 7 (01:13:35):
Yeah wow, yeah, but I'm going to tell you, and
this isn't my area of expertise. I just have a
real sense that it's because people are putting them on
too high to start.

Speaker 5 (01:13:48):
Oh yeah, sure, sure.

Speaker 7 (01:13:49):
These people think, well, it's not going to impact me,
I decorated my place great or whatever it is, and
they don't realize that it's the finance risk that people
are considering that they don't want to step in and
you have to make it worth their while and that
means discounts.

Speaker 6 (01:14:09):
Which is also it goes to kind of when you
just if you look at it from like the everyman
or the potential kind of buyer, what do they really
want to know? They want to know like, are my
condo dudes going to go crazy on me in the
near future? And is the building I'm buying in structurally sound? Right?
Is it a good investment? Is it going to hold up?
Is it in good shape?

Speaker 7 (01:14:28):
So?

Speaker 6 (01:14:29):
Is the condo association in good financial health? Is the
building itself in good you know, structural health? And U
or am I in for a crazy ride with my
monthly dues?

Speaker 5 (01:14:41):
Right?

Speaker 6 (01:14:41):
Because people just they want to know the answer to that.
So that's where I think to your point, Jim, like
you got to pull in the band aid off on
this stuff that can has been kicked down the road
so long, so now they're being forced to kind of
address these issues and the kind of fees have been
going crazy over the past two or thre for years,
right because of insurance, because of these uh, these laws

(01:15:03):
that are kind of forcing their hand on the reserves,
UH and the structural integrity. But when is that bleeding
going to stop? Right? When when can I be confident
as a condo purchaser or even as an existing kind
of owner, that okay, that that ride has now it's
settled down right the rapids. We've gone through the rapids

(01:15:23):
and now we're into calm, calm waters. Are we are
we arriving there yet?

Speaker 5 (01:15:27):
Well? I I feel like we're definitely in the tunnel,
approaching the end of the light. At the other end,
it's none other trying coming our away. I feel like
we're approaching a fix. I don't think that. I think
we're at the beginning of the tunnel, if you will,
not towards the end of the tunnel coming out of it.
But we're in the tunnel fixing it, if that makes sense.
This is a terrible analogy.

Speaker 6 (01:15:48):
Trying to visualize.

Speaker 7 (01:15:49):
I was like the tunnel, no idea what I'm talking
about it at a train I like the image of
and there's no other train coming out of it.

Speaker 6 (01:15:59):
That's the.

Speaker 2 (01:16:02):
Yes, Because we're in this tunnel fixing this.

Speaker 7 (01:16:06):
So, but I thought half of that is done now, right,
half of that, I would say ninety percent of the
condos have their SIRS report and have their engineering study
done to know are their major structural issues.

Speaker 6 (01:16:25):
Had funded the budget based on that's the problem some
of them have, some of them have it.

Speaker 7 (01:16:31):
Is there still some that moved their board meeting to
December so they could still have fund and and let
all these people who have now listed their property for
sale try to get out for whatever they can get out.
But if I were a board member and I had
done that and then people closed within the next year,

(01:16:54):
I would turn back to them and say, if you
raise it an outrageous amount, I'm going to sue the
board because I think you guys played with the numbers.
I think you weren't transparent, and I think you have
responsibilities to the community and to me as a purchaser.
Want to ask you these questions to give me the
full answer.

Speaker 6 (01:17:15):
Yeah, And there's also, you know, like anything, there's the
extremes and then there's like what's what's in the middle.
So I don't know what percentages who are in that
position where they either you know, had a big thing.
Then they took care of it, or they deferred it
another year. There's also a lot of projects that have
done the right thing through the years, or maybe kind
of wizened up over the last five to ten years

(01:17:39):
because of the difficulty in selling to finance buyers like
I have been. That ten percent reserve thing for us
has always been there, like it's it's for the past,
you know, twelve thirteen years from a loan approval perspective.

Speaker 5 (01:17:56):
Let's set the foundation there, Okay, just for a second, Okay,
So what Mike is talking about is the same thing
the state regulations say that there's supposed to be a
certain amount of reserves for the community. Forget about this
structural integrity thing, right that was always there. And the
thing is is that Mike as a lender has to
worry about the financial security of the condo community because

(01:18:22):
certain certain government back loans like FHA and I think
VA right, but FAHA for sure will not allow you
to do low down payment financing because they feel that
the federal government feels that those loans have been too
risky in the past. And that was like ground zero
for the bust in two thousand and five, was really

(01:18:42):
the condo market. Single family market got creamed too, but
the condo market particularly stung. The federal government. The government
back loans, so they gave us a higher at Florida
specifically a higher standard for getting a condo finance with
FHA financing parts of the country. Correct, Am I right
about all that?

Speaker 6 (01:19:03):
You're right about all that, But include Fanny and Freddy
in that, because Fanny and Freddy got stung, which are
your conventional loans? And you know, I'd like to think
of it as like a default, a risk tolerance, like
who's going to default on these things? Because FAHA is
essentially a mortgage insurance operation vas a mortgage insurance operation, right,
they essentially write the insurance policies, and so when there's

(01:19:23):
a default, they got to pay out, right, They got
to pay out on claims essentially, and so they got
hit hard. But conventional loans also got hit hard. Default
rates went crazy, and so basically since the two thousand
and eight timeframe, maybe through twenty twelve, they all tightened
up on the restrictions or their guidelines, the minimum requirements

(01:19:44):
to get a condo approved for financing. So maybe the
starting point is when you're buying a condo with financing,
Not only do you have to be approved and underwritten,
underwritten and approved as the borrower, there's an underwriting problem
and guidelines and requirements for the condo association itself, and
it is mainly about financial health and adequate insurance levels.

(01:20:10):
And then as of late there because of this structural
integrity stuff over the past few years here in Florida,
they've been requiring some examination of those reports, meeting minutes,
special assessments based on you know, repairs that have to
be done, So all of that is kind of in
the mix for review now. Answering the question is the

(01:20:31):
condo approval. And so the reserve question has always been
one that has been looked at. Are they funding their
reserve sufficiently? And the sufficient is ten percent, So basically,
whatever they bring in in revenue, you know, the association
membership dues ten percent of that should be funding their reserve.

(01:20:53):
You know categories right, things for long term and capital expenses.
And I've always like, where do you come up with
ten percent? What's that for? And it wasn't necessarily in
the laws at that time, but from a risk perspective,
if there's any chance if you're underfunding reserves over a
long period of time, there's a chance that you're going
to go through this moment where you have to fund

(01:21:15):
these big projects and everyone gets priced out, and then
what happens, Your monthly expenses go way up. You're going
to default on your mortgage. Right, So they kind of
had that kind of bean counting happening for a long time,
and so you know, there's always been this battle from
a financing perspective, how can they get approved? Are they
in good shape? The condos through the years have improved
on that front, like they've just wisened up to what

(01:21:37):
it takes to be financeable. And that's obviously you know,
there's existing owners who want to sell have an interest
in being able to sell to as many borrowers as possible.
If you're eliminating financed barrowers, like that's a huge pull
of your potential buyers.

Speaker 5 (01:21:54):
So my question though, is is that most condos, most
like I hear it's something like in the ninety percent
range or ninety five percent range, most condos do not
qualify or meet the standards for FAHA and VA, which
are lower down payment. Right we're talking three percent, five

(01:22:14):
percent zero and a half percent zero percent.

Speaker 6 (01:22:16):
So FAHA is definitely considered the low down payment option.
VA obviously is the zero percent you know, that's a
really really great program for veterans. But you can also
do low down payment with conventional right, so you can
be as low as three percent down on a conventional loan.
So the question is it's not so much like low
down payment as the threshold. It's just FAHA and condos

(01:22:39):
don't play an ice together, right. Basically, FAHA does have
an approval process. It's kind of long and arduous, and
it's more restrictive than conventional guidelines as far as getting
a condo approved. But FHA has a list, and if
the condo's not already approved on that list, chances of
getting it approved are very slim and take longer than

(01:23:00):
one would like under a real estate contract, and the
chances are like, well, I don't know if it's going
to get approved or not. So what you want if
you're doing FHA, which would include reverse mortgages, you want
to be on a condo project that's already approved. Now,
last time I looked Palm Beach County, FAHA probably had
six projects approved the all of Palm Beach County, right,

(01:23:20):
and there's thousands of projects, And if.

Speaker 7 (01:23:23):
It's approved, do you still need to get the condo
QUESTIONNA here No, So if.

Speaker 6 (01:23:28):
It's already approved on their list, green light to do FHA,
if it's already approved on VA's list, green light to
do a VA financing there. But they're very, very few
and far between.

Speaker 5 (01:23:39):
But my question is is once they go through all
these regulations and they do have the reserves and they've
done everything they're supposed to do because now they're really
required to, isn't that going to open up a whole
like it's shut as sick. It's going to be six
hundred or six thousand you communities.

Speaker 7 (01:23:57):
So the.

Speaker 6 (01:23:59):
Yeah, I would say, short answer is yes it should
as everyone gets in line with what now the state
is requiring them to do, which is properly fund reserves,
make sure that your buildings structurally sound, and one of
the things that has always been on the books, but
now they're enforcing make sure you're ensuring the project at
the appropriate levels, right, which is something they've also undercut

(01:24:22):
through the years, which is like, hey, we're just we're
going to under insure, right, So we're just we're not
insuring sufficiently to basically replace the building if we had to.
So yeah, the more that the condos come in line
because they're forced to, the more opportunities there should be
for financing. And there's been talk and lobby it's not
happened yet for FHA to kind of loosen up on

(01:24:43):
their guidelines at least to come to the level of
what Fanny and Freddie are required. Right, And there's an
easy case to be made there. It's like, listen, if
Faniy and Freddie are saying it's okay and they're very
conscious of risk and default tolerance and reads things like that,
you guys can maybe loosen up a little bit too, right.

Speaker 5 (01:25:00):
So my question is if your community isn't one of
those six, right, how do you do it right? So
if you do a regular and I need financing, I
can't buy the place cast. So what am I normally
looking at, like for down payment and the type of
loan I'm going to be doing if it isn't one
of the approved.

Speaker 6 (01:25:20):
Okay, So there's with so I'm going to switch off
Fachain just like it. So it's if it's a conventional
financing you essentially I'll call it green light, yellow light,
red light. As far as the ability to get your
loan done with the conventional Fanny or Freddy financing. So

(01:25:41):
Fanny May has a list right a database called their
Condo Project Manager, and if you look up a condo
in there, it will either be approved green light meaning
doesn't you could do it with the low down payment.
You can do it three percent down, five percent down,
you don't need twenty five percent, you don't need thirty percent.
It's approved, no questionnaire, don't even have to go through anything.
You have to document the current insurance, and that's pretty

(01:26:03):
much it. It could also be red light meaning Fanny says,
no go, it's been reviewed, it's deficient and a certain
thing this condo you cannot do regular you know, Fanny
Fredy frianding. It's it doesn't matter. You could be doing
fifty percent down, you're not getting the loan approved. It's
red light now. Then it could be yellow light. Yellow
light means you go into what we've been doing for years,

(01:26:25):
which is there's two review processes. There is a full review,
which means we look at the questionnaire, we look at
the finances, we look at the insurance, we look at
the meeting minutes, all of that stuff. If you're wanting
to do low down payment anything less than twenty five percent,
not twenty five percent, you're going to be doing a
full review. If you're twenty five percent on a primary

(01:26:50):
or thirty percent down on second and investment homes, if
you can meet that down payment threshold, you're going to
do what's called a limited review. Limited review is they
allow it because you're putting more skin in the game.
It's less risks of default all of that stuff. They say, Okay,
we're not going to look at everything. We're going to
look at just some of these things that we consider
most important. And so that's what you've traditionally done. If

(01:27:13):
you're doing a big down payment, you could probably get
it approved regardless of how healthy the condo is. If
you do a low down payment, it's going to be
that in depth review. So the FAHA review VA's review
is similar to the full review process.

Speaker 5 (01:27:26):
But my question is is that's really great information. My
question is, let's you mentioned that when you just did
a recent check for FAHA, there was only like six
communities in Palm Beach County right now. If you were
to do that same check for fan me, Freddie Mack
a lot to do. When you say a lot more,
are we talking like hundreds or dozens?

Speaker 6 (01:27:47):
Do you think hundreds that are already approved, that are
green light, or that are even yellow light meaning approvable?
Mm hmm yeah.

Speaker 5 (01:27:55):
Thousands, thousands, thousands that are either green light that you
or yellow less than twenty five percent down. So the
ones that are yellow light, it depends.

Speaker 6 (01:28:04):
It depends. You have to look at Like the very
first thing is so we're we've got a buyer. Let's go,
this is our our our, the way we operate, right,
we've got to preapproved buyer. We know they're shopping for condos.
I'm going to tell Jim before you even go look
at a project, just something that looks interesting online, send
me the address. I'm going to look up the condo
on Fanny's list. I'm going to see if it's you know, green, yellow, red.

(01:28:28):
If it's red, I say, don't bother. We can't do it,
or we have to come up with like a non
warrantable condo option, which are you can finance these ones
that can't get approved. I don't know if you want
to talk about that, but red light, don't bother. Green light, Yeah,
one hundred percent. Go show them anything. We're going to
do it. Yellow light. How much are we putting down? Gym, Okay,
we're trying to do five percent down on this. Give
me the budget, give me the insurance, give me the

(01:28:49):
contact that the property management company. Let me do a
little bit of research.

Speaker 2 (01:28:52):
So with yellow there's a chance you could go as
low as five percent.

Speaker 6 (01:28:55):
Down hundred percent. If I look at the budget and
they've got over ten percent reserves, that's a really really
good sign, meaning they're probably doing things right. And like
I can look at a budget and then, you know,
thirty seconds see if they're funding the reserves at ten
percent or not. It's really simple. It's not complicated. Right,
They're bringing in one point five million in assessments, you know,
eight one hundred fifty thousand for your reserves. Pretty straightforward. Now,

(01:29:18):
there's some nuance in there, right, if you're close, you
got to know how to look at some of the
other budget items. But that's the basics of it.

Speaker 5 (01:29:24):
So, Paul, here's another question I have for you that
maybe you can help me out.

Speaker 6 (01:29:29):
I had a.

Speaker 5 (01:29:31):
Do you remember Kevin Moore, Yeah, his mom he passed
by the way his mom. We helped him buy a property.
She was in her eighties. She was selling a house
and then buying down she had and she had to
use no more than what she had from her sale
of her home, which was a very tight budget. So

(01:29:52):
we had to do a condo. And I was really
worried about her the future because of being on a
fixed income and everything. And we went through all these
condos over and over again. I finally found one. It
was only two stories, so I felt like that would help.
I grilled the condo board people as best I could.
We got all the information we were supposed to get.
Mike was the oh do we do cash on that? Right?

(01:30:14):
I think we did on Yeah, I don't know the
y Maria, I think you talked to her, but we didn't.
We did cash. So oh yeah, you were. You were
the backup plan in case we couldn't do cash. Right,
We were going to do a small one. So when
it ended up happening, Paul was. She moved in eighteen
months later, ten thousand dollars assessment right, And I felt,

(01:30:36):
you know, it's like, wow, I spent so much trying
trying to avoid this from happening. You know, and I
you know, I it isn't my thing, but you know,
I really did the research hoping that we wouldn't have that,
And now they're having a problem, and now the group
is talking about soon the condo board and everything. It's
it's a mess. Is there any way to kind of
avoid any of that or it's just like a crap shoot?

(01:30:57):
Because I feel like it's almost like a crap shoot
right now.

Speaker 7 (01:31:00):
Well, I think with the disclosure requirements today you have
a better sense of where they are. But to your point,
I could look at the last twelve months board meetings,
figure out what they've been discussing. I could look and
pull up open permits and figure out when the last
time they replace the roof and the elevator, and do

(01:31:25):
my own little serve study. You know, Hey, you're gonna
the roof was twenty five years ago. It's coming up.
You're gonna know that's there. If I look at the
reserves and they're not adequate reserves to do a three
hundred thousand dollars roof, I know there's going to be
a special assessment.

Speaker 6 (01:31:44):
So you could do it.

Speaker 7 (01:31:46):
It's just so much risk because even if it's a
forty year roof does it go all the way to
forty years? Is there some event that occurred that you
actually they have to redo it thirty years?

Speaker 6 (01:32:02):
You know, I mean it's kind of it's a predicament
for your professionals and for the perspective buyers. Yes, because
you just like number one, that takes a certain level
of skill and expertise to be able to analyze and
come up with answers to those questions. So who's doing that?
Is it your real estate agent or do you pay
a lawyer to do this kind of thing or do
you know or are you relying on your financing people

(01:32:23):
to do some of that's vetting? And you think, well, listen,
if they say it's good, it's probably good for me.
But I would say, like, we wouldn't be able to
know if an assessment's come in eighteen months down the road.
We're not looking like the level of analysis that Paul
just did, where you're like kind of saying you're predicting, well,
they haven't done this in a while, so it's got

(01:32:43):
to happen at some point, right, we're not doing that
type of assessment, And so as a perspective buyer like
you either got to be really into that and do
it for yourself, or you got to pay somebody who
knows what they're doing to do it for you. Maybe
I don't know. Maybe there's a service there that is missing, right,
condo analysis? Is this a good investment for me?

Speaker 7 (01:33:04):
Right?

Speaker 2 (01:33:05):
I don't know it.

Speaker 6 (01:33:06):
It's something.

Speaker 7 (01:33:07):
I'm intrigued that they have these green lists online. Sure,
you know, if you're really trying to protect, the green
are probably the ones that are financially sound right now
and seem to have good governance, so you can try
to anticipate that. If you're worried about somebody's tight finances,

(01:33:30):
you've got to pick a green building.

Speaker 6 (01:33:32):
Yeah, I would agree with that. I would say it's
it's not a guarantee, right because there we're talking about
Fanny and Freddy and Hunters and you know, so there's
there's some the the goal is to try to get
it approved because that way you're able to do financing there, right, So,
and of course you're dealing with people in my position
and underwriting staff, and then people with Fanny and Freddie

(01:33:53):
who kind of review this stuff. Sometimes they're good. I
see stuff on there where it's red light and the
reason it's red light is competing, and luckily have a
process where you could submit something that says, hey, you
guys got this wrong. Here's what it actually looks like.
For example, I saw one where they said the insurance
coverage was insufficient. So we looked at the master policy.
I know exactly what sufficient means in their view and say, no,

(01:34:15):
somebody read that wrong because they missed this little detail.
You send them the current policy. They update it. They say, okay,
it's no longer read. It's now back to yellow status. Right.
It doesn't go to approved, but at least it comes
off and it says, okay, now do some sort of
review process on an individual loan basis, on the writing basis.
But an enterprising person, Paul you said, somebody that agent

(01:34:36):
could go into the board meetings and say, hey, we
want to do something to get these units sellable. Right,
let's work together. I know what you guys need to do.
I can guide you, and then obviously it's going to
turn into business for that enterprising agent. Somebody should be
in there saying, hey, you guys want to be approved
for FAHA financing. You guys want to be approved for
VA financing. Here's the steps you got to take. Then

(01:35:00):
that's the interesting thing too.

Speaker 3 (01:35:01):
You need to make sure you're you're really articulating what
that means, because I think unfortunately we have realtors that
hear F A, H A and VA and they frown
upon it. They're like, oh no, that's not kind of lending.
I would think condo boards would be like, oh no,
we don't want that.

Speaker 7 (01:35:15):
No, no, no, on that list.

Speaker 6 (01:35:18):
That's exactly right. So you have the boards they're saying, wait,
a second load down payment borrowers, that's not the people
want to get.

Speaker 5 (01:35:25):
I just had that experience talking to condo board member,
and the thing that's interesting about that is they have
no idea that that actually hurts the value of the
property and in the long run, having more people write,
more buyers available to buy your property, more higher prices, and.

Speaker 6 (01:35:45):
I think it's like, it's it. You got to keep
the riff rap out, like that's kind of the hospitality there,
which is and which is why sometimes you'll see condo
boards even hoa's sometimes not condos h's, but they say,
if you're buying with financing in our community, were and
I'd be curious Paul's take on this. We require twenty
percent down because we're we don't want these low down
payment borrowers. They got no money. It's going to be problematic.

Speaker 5 (01:36:08):
Certain credit score, even though you can get financing otherwise.

Speaker 6 (01:36:11):
Minimum credit scores that have nothing to do with the
ability to finance, And I've always thought it was somewhat
discriminatory in some ways. It's just felt that way.

Speaker 7 (01:36:19):
Several buildings in pome Beach say fifty percent maximum financing, right.

Speaker 6 (01:36:24):
Right, You got to be coming in with fifty percent
down payment minimum or buy a cash Is that so
that's legal for them to do, I suppose because they're
private area, and.

Speaker 7 (01:36:32):
They're also very nervous that a lot of people in
there can't afford a special assessment. Yeah, and they need
to know that at fifty percent financing, they can always
go out refinance to bump up to you know, back
up to fifty percent or or say the values higher

(01:36:54):
and now they can take fifty percent and pull out
another fifteen thousand dollars to get back to But yeah,
they're nervous that traditional lenders aren't going to lend on
the building, and they just want to make sure that
everybody's in it together.

Speaker 6 (01:37:13):
Yeah, Yeah, I think so there'll be some there's tension
there between like, hey, I want to be on the
FHA list, the VA list, or no I don't, let's
let's remain off of that list.

Speaker 7 (01:37:23):
I can see a board member saying that's a last
person I want in this building, and somebody who's that
tight that.

Speaker 6 (01:37:30):
They can't come up.

Speaker 3 (01:37:32):
Well, just because they just because they have it doesn't
mean that they have interest in putting it in, right.
I mean, some people are like, look, I want to
I want to pay a little skin in the game,
as it could be a millionaire have plenty of cash
reserves and be like, I'm going to take that financing
because I don't want to put all my money into
the game right now.

Speaker 6 (01:37:49):
I see that all the time. With VA loans in particular,
we have many veterans they like they have an opportunity
to do zero percent down so one hundred percent financing,
and many of them, even if they have they just
sold their last home, they got hundreds of thousands in
the bank, they still want to do the zero percent
download because whatever they want, they got their money doing

(01:38:09):
other things for them that you can.

Speaker 2 (01:38:11):
Choose where that money goes.

Speaker 6 (01:38:12):
You basically get to decide. Yeah, some people like I
don't care about equity in my own by to.

Speaker 7 (01:38:16):
Other condos as investments properties.

Speaker 6 (01:38:18):
Yeah, you choose to sure, So yeah, it's I don't know.
But what you said, Jim's like, I want as a seller,
I want the biggest buyer pool possible. Right, I want
to be able. I want to have as many eyeballs
and then I can selectively like choose which offers to
accept or not. As a listing agent, you should be
advising your condo sellers what types of financing we should avoid. Right, Like,

(01:38:43):
if somebody comes in with low down payment, well, guess
what I already have. My guy Mike look at it.
He tells me, we can't do it with five percent down.
You got to do twenty five percent down.

Speaker 5 (01:38:52):
And that's a whole other thing because a lot of
the listing agents, when you're the buyer's agent, the listing
agent don't have the information to know about Like I
just had one recently and this is just very common.
So it isn't like, you know, earth shattering. But they
said va FHA conventional cash right in the terms considered.

(01:39:13):
I called them up. I'm like, are you sure it's
good for FHA because I had an FAHA buyer. Yeah,
why wouldn't it be good for FHA? Well, there's a list,
are you on the list or do you know something?
I don't know? And they they're clueless, they have no idea,
and you know you're not going to get the documents
from that listing agent, right, the documents that are required

(01:39:35):
and everything, Paul, out of the amount of condos that close,
how many people do you think comply with all the
documents that need to be turned in before closing?

Speaker 7 (01:39:46):
Real I was just giving a talk in your office
about the new condo questionnaire, and I think there were
thirty or so agents in the room, and I asked
how many of you received all of these documents? Not
one person raise their hand. So it's what it is,

(01:40:08):
is your ability to get out at any time. So
it's good for the buyer to the extent that they're
not obligated to close until the closing, but it's bad
to the extent that they're going in totally blind.

Speaker 5 (01:40:22):
The sellers have no idea how big of a deal
this could be. And the reason why I know it's
such a big deal. When I first started being a
full time realtor, on the show and we were doing
short sales. I was brand new. I don't think we
were with Crasker yet, and tried to title in short
sale invisions. I think we're with the other company. And
the prices were just dropping, dropping, drop and dropping right.

(01:40:45):
And this short sale took like nine months to close,
and we're at the closing table, and I really want
this closing to happen because I'm a new ragent and everything.
And we're at the table and the guy that was
buying it was very sophisticated investor. So we get to
the closing table and he goes, hey, I didn't get
all the condo documents I needed, right, And the title

(01:41:06):
Coman's like, yeah, if they don't have that, they could cancel.
So and we're at the closing table to close, so
I rushed out. I don't know how I did it,
but I got the documents I got sparked out. It
was just this is twenty twelve, right, this is twenty twelve. Yeah,
And I didn't articles Yeah, and I did. I didn't
know any better. I'm being honest, and gave him all
the documents, all proud of myself. I got a time

(01:41:28):
that done. He wasn't buying that property right as soon
as he got it, it was like this thick I
never got remember the table were sitting on everything, and
he just flipped through the pages. He didn't even open
him completely up. He just flipped through him a little
bit and he goes, yeah, I'm not buying this property.

Speaker 6 (01:41:44):
Nice.

Speaker 5 (01:41:45):
And there was nothing else that we could do. And
it was a short sale, so those people were dependent
that this was going to close to get them out
of foreclosure. I didn't know any better. I was like
after that, I was like hyper about it. You know
now I'm hyper. And when you tell even when I
tell them that story, they don't seem to get it.

(01:42:05):
They don't seem to get how important those documents are.

Speaker 7 (01:42:08):
That's why I was asking, do you have a disclosure
that you give to the seller that says I need
these documents three pages?

Speaker 5 (01:42:15):
Yeah, we have one just about the documents you need.
We have another one saying if you don't help us
get these documents and if we don't give these documents
within the right timeline to the buyer, this is what
could happen to this transaction. And then we have a
whole other different separate sheet that has are there any
special assessments? What's your quarterly monthly fee? You know, our

(01:42:38):
dogs allowed our trucks aligned, we have them fill out
this other form. So we have three forms that they
fill out.

Speaker 7 (01:42:43):
Well, though, I've seen a lot of listing agents get
more work because they partnered with the management company. Yeah,
and they said, I will put together a link for you,
and they have a list of all the documents within
the link. They have a page number where you can

(01:43:04):
find it. They even get the minutes, and they say
to the management company, all you have to do, I'm
giving you this link that I created for myself, I'm
giving it back to you. All you have to do
is every time there's a board minute uploaded here, that's
all you need to do. I did a I did
a closing. Eight months later I got the link. No

(01:43:30):
updated minutes. Yeah it judge, you're crazy.

Speaker 6 (01:43:34):
Yeah, Well, somebody has to create some right. You got
board members. Somebody is responsible for, you know, keeping the
meeting minutes, but they actually have to do that. So
you have to have board members who are executing their
individual responsibilities as well.

Speaker 3 (01:43:47):
But as you talked earlier in the first hour about
the there's a there's a legal obligation, like they're really
setting themselves up for civil litigation because they're How is
that not thwarting the ability to.

Speaker 7 (01:43:59):
Sell the If I were on a board, I would
have to write a letter to the management company and say,
this is your minimum standard. You need to keep this
active at any one time so that I can go
to this link and make sure everything's there. And then
I would have to on a monthly basis go back

(01:44:21):
and say you didn't put the agenda item on there,
you didn't put the meetings on there. Otherwise some board
members are going to get sued.

Speaker 6 (01:44:30):
And there are property management companies I see more and
more who are doing that type of thing. Right. They
have the documents available electronically, sometimes behind maybe a paywall
or some sort of you know, log in credentials if
you're a resident, but it is accessible. You could pull
up the budget, you can pull up the meeting minutes,
you can pull up the rules and regulations like all
of that stuff. So there are certain management companies that

(01:44:52):
at least try to manage these boards the best they can.
Like you said, Jim, it's you know, there seems to
be a base for expertise required and if you're a
listing agent and you go get through this with one
condo and you've done it. You kind of have it
in there, like you have a shortcut to success which
you should be able to use within the building and say, hey, listen,

(01:45:14):
we really know how to get it done. We know
what type of financing can get done. We know how
to get there in thirty days with no surprises at
least from our end, which obviously is the goal.

Speaker 5 (01:45:22):
Right.

Speaker 6 (01:45:23):
We never want to be in a contract that can't close. Yep,
it doesn't have a chance of closing.

Speaker 2 (01:45:27):
It's right.

Speaker 6 (01:45:27):
Sometimes contracts don't close, but at least you want to
have a chance of close. That's right, right, not a
red light, that's the whole point.

Speaker 5 (01:45:36):
Hey, I know we only got a couple of minutes left,
and we hardly ever have Paul here, So I wanted
to ask Paul a couple of questions about the student
loan modification program. We've actually had several people it's been
kind of dead, and we've been pushing it, but it's
been kind of dead for a while. But now all
of a sudden, we've gotten like three to five people
come in just very recently looking for relief. What the

(01:45:58):
heck is going on with those programs? Are they still available?
Do you still do them? Can people still use them?
There's so much stuff in the news even I get
confused on about it, Paul, So give us a wrap
up of that, because I know there's people out there
that probably could use the help.

Speaker 7 (01:46:13):
They're still available. The government is not going to spend
any money on pushing out information to get these people
to call and get it done. And the people who
answer the phones when you do call are actually the
services as a subcontractor to the Department of Education, so

(01:46:33):
they have no incentive to put you in a forgiveness program.
We're seeing an uptick now because of the default notices
going out, and I think I think it's a smart
thing for people to do. I think it's a smart

(01:46:54):
thing in today's job market where kids are getting out
of school and not being able to find jobs. Before
you find a job, call us. We can get you
a zero payment for the first you are unemployed. You
qualify for zero, and you save every dollar during that

(01:47:15):
first year even if you get a even if you
get a job thirty days later that's a high paying
quality job. You still get one of your twenty years forgiven.
I mean, it's an unbelievable program, really is. I just
don't understand why people aren't looking at it different.

Speaker 5 (01:47:36):
It's amazing. I had one of the people that you
got was a public school teacher down in Broward, Kaylin,
and it was like pulling teeth to get her to
call you. All I'm telling is like, look, all I'm
trying to do is save you money. I'm just trying
to save you money. You're guaranteed to get savings right,
and all you have to do is pick up the
phone and call Paul. And finally I had to call

(01:47:57):
the dad and cut the payments in half. Yep, yeah, exactly.

Speaker 7 (01:48:01):
Because that goes from a twenty year to a ten year.

Speaker 5 (01:48:04):
Because she's a public school because she's a.

Speaker 7 (01:48:06):
Public school teacher.

Speaker 6 (01:48:07):
So just Paul just refreshed real quick. Who should be
looking at this? Is this anybody with government backed student loans?

Speaker 1 (01:48:13):
Is it?

Speaker 6 (01:48:13):
Certain employment sectors like who needs.

Speaker 7 (01:48:16):
To look at Everybody should look at it. We don't
charge for the analysis, so there's no reason not to call.
It takes ten minutes, We ask ten questions. We can
give you a very specific dollar savings amount for the
first year, and again, do it now, get yourself in

(01:48:36):
the system, especially if it's public service, so police, fire, ems,
school teachers, nurses.

Speaker 5 (01:48:47):
Government work is just working in any part of government, county.

Speaker 7 (01:48:51):
Any county employee. And we've gone to these municipalities. We've
gone to the Broward County school Board and said, let
us send a bilingual employee into your lunch room before school,
after school. We could set up meetings, we can do zooms,

(01:49:12):
we can do whatever you need, but you must have
one hundred teachers who haven't signed up need to sign up,
would get the largest rays of their life, give yourself
a raise by doing this, and it's.

Speaker 5 (01:49:27):
An employee morale thing too, right. You know, it just
takes off a big burden off your shoulders. Because we
knew before we had COVID the number one drag on
the economy back then, everybody forgets this was the student
loan down. That's what everybody was saying. It's still there, Paul.

Speaker 3 (01:49:42):
If somebody gets in, they get with you, they get
their numbers, they decide they're going to move forward. We've
talked in the past that oftentimes the fee is basically
like a monthly payment to their loan. Essentially, depends on
how much you pay. But and then you're often running
in the program. You're good for the right do you
notify them, hey, you're coming because you have to refile

(01:50:03):
every year. Do you like notify them, hey, this is
coming up?

Speaker 7 (01:50:06):
So three things there. Number one, our fees are covered
by the savings associated with our services, and you're you're
gonna be covered there. The second thing is no, I
forgot it.

Speaker 2 (01:50:20):
Okay, But three things, they're gonna they're gonna get contacted.
You're in the system.

Speaker 7 (01:50:23):
And and with the renewal, that's what it was. The renewal.
We have a system where you could pay us a
small amount every month and we do the renewal for you.
We have so many people who try to do it
themselves and hand in the wrong piece of paper and
double their payment.

Speaker 5 (01:50:40):
Yeah, Daryl, don't do that, Darryl, just reach out to us.
Just to wrap it up real quick. Darryl has been
his wife has been on the student loan program for
nine years now. She was paying eight hundred dollars a month.
She has paid zero dollars for nine years because of
Paul Krasker and the Student Loan Modification program, and it
costs him nothing to find out what to do, and

(01:51:01):
then they didn't fill it out. One year with Paul,
after all these years, it more than tripled. And then
they went back to Paul and went back down.

Speaker 2 (01:51:08):
Here go to floridatokrealestate dot com.

Speaker 3 (01:51:10):
You got all the information you need, get the information
you need, set yourself up for success. Florida talkreal Estate
dot Com. Florida talkreal Estate dot Com. A team prospros,
you get them all, especially if you're interested in the
student loan potential man reach out. There is nothing but
benefit for you.

Speaker 4 (01:51:27):
If the answers is not going to work out for you,
well there it is. It's that simple, great question on
our chat. I know we're late, Johnny. Do you do
out of state or does it have to be in
Florida only?

Speaker 7 (01:51:37):
No, out of state?

Speaker 3 (01:51:37):
Sure, there you go, Pia, Florida talkreal Estate dot Com.
Thanks for being with us every Saturday. We're back at
it next Saturday, Florida Talk real Estate right here on
Real Radio