Episode Transcript
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Speaker 1 (00:14):
Navigating today's real estate market can be tricky. Want on
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.
Speaker 2 (00:31):
Here are your.
Speaker 1 (00:32):
Hosts, Jim Depola and Johnny c Live on real Radio.
Speaker 3 (00:36):
Yeah, good Saturday morning. Welcome to another edition of Florida
Talk real Estate. Thanks for being there. We got you
for two hours of infotainment. Beautiful thing I see out
there in ninety one one o one seven on the
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Speaker 4 (00:58):
If Iri ire is that, that's just not the same.
It's not the numb yea. But I like where you're headed.
And of course we live stream on a Saturday as well.
You can find us Florida Talk real Estate on Facebook
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(01:18):
chunk videos, plus a live stream every Saturday morning.
Speaker 5 (01:22):
Thanks for being with us. You can be a part
of the program.
Speaker 3 (01:24):
With a phone call as well eight seven seven nine
two seven six nine six nine. If you have questions, comments,
concerns in the world of real estate, you want to
dive into the conversation at hand, don't be shy, go
ahead and do just that. The first voice you'll hear
the melodious tones of our producer at Short and Jimovy,
my brother from another mother.
Speaker 2 (01:40):
I you be hey, heyo, and a good morning Johnny.
How are you?
Speaker 5 (01:43):
Has the family too, by the way, dude, everybody's awesome.
Speaker 3 (01:45):
They just it's been it's been a sick house for
a second though, but everybody's like back on board and
crushing it.
Speaker 5 (01:51):
You had the funk a little bit. There's a old something.
From what I understand, there's a funk going around. Oh yeah, and.
Speaker 3 (01:59):
In fact of my daughter differently than a fact with
my wife, and I've been like dodging, dodging the bullets
as best I can.
Speaker 5 (02:05):
Sorry, they were under the weather.
Speaker 3 (02:07):
From what I understand, like half my daughter's school has
been out like all last week too, So yeah, it's
a it's flowing around right.
Speaker 5 (02:14):
Well, you help to get better.
Speaker 3 (02:15):
Thank you very much, and you as well. Oh, I
appreciate you very much. Good to see as always, my dude,
and you as well. I am your old buddy, your
pal Johnny C. Let's get your starting lineup. There's Mike
grow the mortgage guy from the mortgage room. What's up,
my friend?
Speaker 2 (02:27):
Good morning? I too, I I re yeah, I get
it popped into my head. Maybe I was saying an ir,
but what is iri? This Jamaican for something?
Speaker 5 (02:37):
Yeah, and you're getting down the marriage you wanna lane?
Speaker 2 (02:40):
Oh well, I didn't mean to do that. That's all right, apologies.
Hey you got you a bunch of people perk up
when you're that happens. Actually, the show leading into this
is a all weeks Yeah you know medical education.
Speaker 3 (02:53):
Yeah yeah, yeah, yah, sure yeah, try to try to
defunct somebody.
Speaker 2 (02:57):
Well maybe those some of those fans stuck around.
Speaker 5 (02:59):
I wash our hopes and.
Speaker 2 (03:01):
You get some real estate educations what I'm.
Speaker 3 (03:02):
Talking about, and some entertainment as well. Hopefully we'll sprinkle
a little bit, try it. We sure will. Let's says,
look at Jimmy sprinkling it on.
Speaker 5 (03:12):
He's pretty liberal with it over there.
Speaker 2 (03:14):
Yeah, just reminded me of Chappelle. Right, but one of
his jokes from his like sprinkle some the cops, right,
some crack on.
Speaker 5 (03:23):
I think his eggs and cinnamon. I love it.
Speaker 3 (03:27):
Let's say good morning to our fearless leader. Thirteen plus
years now we've told you he runs a top producing
Calownias team. Kellowilliams Innovations, you find the Florida Home Prost
Team and Jim Topola.
Speaker 5 (03:36):
Jimmy d how you be.
Speaker 6 (03:38):
Hey, I'm doing good, guys, I'm doing good.
Speaker 2 (03:40):
Uh, that's the wrong energy, Jim. I know.
Speaker 7 (03:44):
It sounds weird. Against sounds like I got it to Mike,
there's some reason.
Speaker 3 (03:48):
Now you're going he got I got a hum in
my headphones too. I need to assume that. Yeah, we'll
just we just do what we gotta do.
Speaker 5 (03:55):
Yeah, we gotta just push it through Fisher Price, my
first radio station.
Speaker 6 (04:00):
But yeah, things are going good. It was a very
hectic week.
Speaker 7 (04:04):
A lot of frustrating things happened. I mean, we had
a lot of good things happen, but I just very
bumped out. We had two people who didn't close when
they were supposed to, and one of them is a
seller buyer.
Speaker 6 (04:17):
Oh and that's the worst of the worst.
Speaker 7 (04:19):
And the people were working with on the other side,
the buyer's agent, where the listing agent has just been horrible,
no communication. The agent's like totally clueless. The transaction coordinator
they hired is even worse than the agent. Usually, usually
if you have if you have like a newer agent,
(04:40):
if they're smart, they if they do, hire a transaction coordinator,
which basically just make sure all the contracts are done
correctly and everything the process is running smooth correctly. Yeah,
and mortgage companies have that, right, you have like loan
processors and things like that that kind of help you
walk the paperwork through. So anyway, this transaction court, usually
(05:03):
if you have an agent, that's a little less experience
because we all start out somewhere, right. Sure, if you
have a good transaction coordinator can smooth out a lot
of rough edges. But the transaction coordinator is just as
bad as the agent.
Speaker 2 (05:15):
They have to start somewhere too.
Speaker 7 (05:17):
And then yeah, but but both starting out together is
just a big mess.
Speaker 2 (05:21):
And then finally the.
Speaker 6 (05:22):
Mortgage company, I'm working with. Let me tell you something, Mike. Yeah,
you know when we.
Speaker 2 (05:27):
When we get am I going to get some props here? Yeah? Yeah,
well yeah I should have.
Speaker 7 (05:32):
I should have had them go through you also because
I was concerned. So when we take listings, what we
always do is ask the sellers to give us permission
to ask for a second opinion on the mortgage approval
if I see any red flags or even yellow flags,
to make sure that everything's good, because what you don't
(05:53):
want to do as the sellers put your house on
the market, take an offer. Then once you take the
and it's accepted, it goes active under contract, and then
if you don't close, it goes back on the market,
and it's actually listed with the words back on market, right,
So you don't. You try to avoid that as much
(06:13):
you can. It's not a deal killer or a death knell,
but it's not fun and it's something that you'd rather
not go through if you were the seller.
Speaker 5 (06:21):
No, if you're going to accept an offer, you want.
Speaker 2 (06:23):
To close it, and you want to close it.
Speaker 7 (06:26):
So with this one, what happened was is when I
called up the mortgage company, I was talking to the
broker of the company.
Speaker 6 (06:33):
The owner of the company.
Speaker 7 (06:34):
But when I called up and I said, Hey, let's
say the guy's name is Mike. I go, hey, Mike,
I'm calling about Mary Sue and John And they turned
in an offer. I'm the listing agent and they turned
it an offer. I have questions about their file. Well,
he literally is on the phone probably three minutes, click
clacking because he had no idea who Mary and John was.
(06:55):
Mary Sue and John was and was click clacking on
his computer to find the file. Maybe I'm a little
too tough on things, but that was like a little
caution flag right there because he had no idea who
these people were. So that told me, is this a
file where they're just another number like loan file number one, two, three, four,
(07:15):
or do they really know Mary Sue and John and
had had good conversations and make sure everything.
Speaker 2 (07:20):
He's going to find the file. It's the first time
he's ever looking at it. He's going to give it
a one minute review and then tell you it's good exactly.
Speaker 6 (07:27):
So when he was going click clack, and I said,
I go, have you do you have a relationship with
these buyers?
Speaker 2 (07:36):
Because he really.
Speaker 7 (07:37):
Couldn't tell me anything until you open up the phone,
he goes. He goes, I'm the broker of the whole company.
That was his answer, And I go, okay, great. Did
you work the file and know these people very well?
And he was like, I have my staff handling thing,
but I'm the owner of the company.
Speaker 6 (07:54):
I go okay, great, he click, hoops up. How can
I help you?
Speaker 2 (07:57):
Did you ask him who's the owner of the company?
That's I'd be like, yeah, but who's the owner?
Speaker 3 (08:02):
While you're looking real quick, just a quick question who owns?
Speaker 7 (08:06):
So then I started asking the normal questions, right, all
the questions that you would normally ask. So, what exactly
did you do? The first question I do is the
easy question that I lobb it. I give a softball
to the mortgage guy.
Speaker 2 (08:19):
Do you know these people?
Speaker 5 (08:21):
No?
Speaker 7 (08:21):
My first question, My first question is yeah. My first
question is is what exactly did you do to get
them qualified for the loan? Right now, that's a very
open diended question. It could be answered his way, which
is the really bad way, or it could be answered
Mike's way.
Speaker 2 (08:39):
Right.
Speaker 7 (08:39):
So his way was I did everything that was needed
to get the loan approved. Right, that's the answer with
an attitude saying it with an attitude yeah right, as
opposed to, oh, I'm really glad you asked that question.
We've done everything needed to do for this loan. And
then you rattle off all the things you do and say,
as long as the house in specs your house, like
(09:01):
throwing it back on the listing agent, as long as
your house suspects the appraises, you know they're good for
the money, right, And that's the right.
Speaker 2 (09:10):
Answer, right, But probably not enough detail or confidence inspired
you know, dialogue from him right, Like.
Speaker 6 (09:18):
He didn't have any of that.
Speaker 7 (09:20):
It's like, I did what was needed to qualify them
for the loan, and I'm the owner of the company
right now.
Speaker 2 (09:26):
Now.
Speaker 6 (09:26):
The other thing is is that usually they will tell
you what they did, what they did in order to
get that qualification. And what I always say when you
get qualified with Mike, I always tell my buyers, it's
so nice when you're qualified with Mike because he used
to be part of the underwriting department, which is the
final decision on when your loan gets cut. It isn't
(09:48):
up to the mortgage broker or the loan officer your
worker with. Really, it's the underwriting department making sure that
the loan officers doing the right thing, and that they're
going to be able to sell this loan to the
conforming groups of people that by these loans and everything.
So anyway, when I say, when you get qualified with Mike,
it's like having a cashiers check in your back pocket.
Speaker 7 (10:07):
You know you're good for the money. It's just whether
the house is going to match the financing. And that's
really nice to know when you're walking around you never
have to worry about can I ford this?
Speaker 2 (10:17):
You know? Am I going to be able to do this?
Speaker 7 (10:19):
Mike's got the app and if the app says yes,
you know, it's yes.
Speaker 2 (10:24):
You know.
Speaker 7 (10:24):
So anyway, then I had to start asking him questions,
did you look at the are they w two or
are they self employed? Is there any ten ninety nines evolved?
Is there any kind of commissions or tips or Uber
money or anything or lift money that has to be
recorded as part of the income. Are there more than
one person? Have you actually looked at their back end
(10:49):
in front end debt to income ratio and check their
credit report?
Speaker 2 (10:52):
Of course? And everything right?
Speaker 7 (10:53):
And ask all these questions, and he was just getting
angrier and angrier throughout the whole process. And then he's
like he got me off. He goes, look, I did
everything to need to do to get this loan, and
it was Desktop Underwritten, which is a computer system that
tells you whether or not the loan pursonally in a
quick review, whether or not it meets certain standards to
(11:15):
get the loan. And I said, well, let me ask
you this. Did you actually get the hard copy of
everything that you need tax transcripts, if needed, W two's
past stubs, bank receipts. Did you get everything you need
hard copy? Or did you just plug it into the
system because that's what the buyer told you they were making. No, no, no,
(11:37):
we did everything. We don't give the approval without that, Okay, great,
hung up. Wasn't real crazy about that situation, But we
also didn't have a lot of other options, and this
house has been on the market for a little bit
and these people needed to sell.
Speaker 2 (11:55):
He also didn't know. He just it's clear he didn't
know the answers to your question. So he's given you
like just kind of like broad strokes. It was just
like a month ago we had to show kind of
the similar topic. And I remember saying, like, when I
get that call number, one, I welcome the call, but
number two, I kind of take control of that conversation
because you shouldn't be having to ask me, are they
(12:16):
self employed? Are they w two? Do you have the like?
I should not be waiting for those questions. I should
give you the information that you need that demonstrates I
do know the file. If I don't know it, I'll say,
you know, Jim, I need to do a little bit
of dig I'm gonna talk to my staff. Let me
call back, just let me freshen up on I'm gonna
call you right back, and I'll tell you what what
(12:37):
the what the details are, right I would do that
if I wasn't. You know, maybe maybe he's got so
many clients and he does an initial five minute call
and then he says, you know, I'm going to hand
you off to my you know, my loan assistant or whatever.
They're going to get all your information. They're going to
tell you what documents they need. So there are some
teams that work that way, right, Like I might have
a five minute call and then hand it off to
(12:58):
a loan assystem. Right now, I don't do that. I
do the entire kind of intake interview. But that's my process, right,
But that makes that makes me very you know, I
have intimate knowledge of pretty much any client I'm working with,
and I've got a good memory for that stuff, so
I you know, if I like write it down and
I'm talking, I'll remember it.
Speaker 3 (13:16):
So Johnny, he does look at the front and the
back end, Yeah, of course, And typically the back end
is a little nicer.
Speaker 2 (13:23):
To look at. He's there's a lot more You have
more space in the back end, so it's a little
bit tighter up front, you know what I mean. So
it's it's you're the pro, yeah, but get the best
right here, trust me, guys with your big you know,
half a million dollar home purchase, right, but trust we trust.
(13:44):
But so yeah, you just there's just a way to
answer your questions without giving glossing over like I own
the company. Of course, I know what I'm doing, of course,
And you're like, but clearly you don't know. You don't
even know who we're talking about. You don't know anything
about him, just giving me like the the generic answer
that says yes, right, which is not confidence as buying.
(14:05):
So so now we're on our fourth and you accepted
the offer. Yeah, and not only did we a set
the offer.
Speaker 7 (14:12):
They passed the loan approval process where you you have
a certain deadline to say if you've got the loan
approval or not, which is one of the last steps
of the whole process, and you have a deadline to
let the sellers know if there's any kind of problem
so that the buyrus deposit is protected. And this agent,
(14:34):
they're a transaction coordinator, and the mortgage company never talk
to us on the day that the loan approval was due,
but they did call us the next day. Isn't that
nice of them. It's so nice of them to be
nice to give us the call ones because we were
calling them constantly without responses. Right, But they called us
the day after the loan approval, and what do you think?
(14:56):
They said, we can't get the loan and they didn't
care at all. They were not very concerned, and they
were saying, we think we're going to be able to
get the loan, but there was a problem with IRS
issues and that they're working on it. So we had
to go through an extension last week, which is really tough.
(15:17):
They didn't cause the whole tens on the closed date.
Because my sellers are kind of in a jam now, right,
and they want to yeah, and I told them that,
you know, I'm not the lawyer, but according to the contract,
if this deal does not close, and if they didn't extend,
they probably would have got their deposit back, but that
(15:38):
isn't the ultimate goal what they're trying to do. They're
trying to sell the house and close so they get
the next chapter of their life. So they decided to extend.
Speaker 2 (15:46):
Again.
Speaker 7 (15:47):
They never called us, not even once the rest of
the week, just to give us an update or anything.
So we're supposed to be closing next week, so we're
going to see what's going to happen with that. But
it was very frustrating. And then on top of that,
I had another deal fall apart. This is very unusual
for one of my sellers, and that deal fell apart
because the buyer couldn't get the conventional financing that they wanted,
(16:14):
even though they were an investor and they were going
to do either hard money or conventional financing, and they
couldn't get the conventional financing. But I thought they would
be able to get the hard money, which is a different,
non conforming type of loan. But when I talked to
their hard money lender. The hard money lender didn't want
to have anything to do with this buyer, even though
(16:35):
they originally gave me approval letter from this company, because
the buyer had done another deal with them, an investment deal,
and it was a total mess. So they said, we
don't want to work with that person anymore. Interesting that
one fell apart, so that one we had to put
back on market, and we're getting a lot of showings
and I think we'll sell it very quickly.
Speaker 6 (16:55):
But it's very frustrating when you have those weeks.
Speaker 7 (16:57):
And the reason why I'm bringing it up is not
to be a a w downer or something, but to
let you know, like real life stuff happens. You know,
this stuff happens. We always talk about the success stories,
and I don't want people to think that we're really
just shining them. You know that we tell you that, Yeah,
we tell you about this stuff that didn't go so well.
Speaker 2 (17:17):
Either.
Speaker 7 (17:17):
It doesn't mean that these things aren't going to be
resolved and everybody will be okay, but it's still frustrating, disappointing,
you know, and and and it happens in real life.
Speaker 2 (17:29):
It does happen. We do talk about We had that
one deal, Jim, that we worked on through all the years,
one deal where I had the buyers preapproved and then
it kind of went haywire between them. We weren't able
to close. But it was you know, basically additional debt.
But that's really I mean, I don't think we've ever
had one that. Like not saying every deal closes, but
they're If they're not closing, it's because of inspection, not
(17:53):
because the buyers can't get approved. But we don't have
a lot of them. That's why we don't talk about it.
Speaker 7 (17:59):
And and well, and there was one time, and to
be fair, it had nothing to do with Mike. Those yeah,
those they were young kids. So I always joke about
this when I'm sitting down with my virus presentation because
I use this as an example. One time, right, Mike
and I have been doing together eight years or something.
One time, right, But the kids they went out and
did kid things. They went out and bought stuff they
(18:19):
shouldn't have bought, and you know, kind of depleted their
bank accounts and raised up their credit card bills. So
all while we're waiting to close, and nobody had any
idea any of this was going on.
Speaker 5 (18:30):
I am, even after Mike tells them don't.
Speaker 2 (18:32):
Oh well, I'll tell you I I Probably one lesson
I learned there is to just kind of reiterate with people,
like your situation needs to remain stable. Like Johnny, you're
a great scenario, like you're kind of window shopping right now.
But you and I have had the conversation like, hey,
you know, I basically have you set up, but that
assumes you're making the same income, assumes your dad has
(18:53):
remained relatively stable, assumes that your credit is you know,
remaining stable. Nothing's going great and you know, wait a second,
we got to get a new car, or hey, I'm
finally going to get that jet ski that we've been
you know, looking for, or whatever it is, like you're
gonna say, Mike, hey can we do that? I think
you've even called me at some point and said, hey, Mike,
what about this change? Is this going to be an
issue for us or something? Right? I had one in
(19:16):
the last month, Jim, where they've you know, preapproved out
shopping using the app, talking to me back and forth,
back and forth. Finally get into contract. I call her
to kind of refresh, like, Okay, now we're in contract.
So the wheel is going to start turning on the
loan side, right, We're going to get the official loan
(19:37):
application sign everything. And she's like, oh, Mike, you know
what I forgot to tell you last week? I took
a new job. And I'm like, while your shopped, like
you're out like looking at homes, making offers and everything.
And luckily it was the same field. She actually got
a bump in her salary, so it wasn't a problem.
But that's the type of change that I want to
(19:59):
know about before it happens, so that I can give
you a little bit. You know, probably I would have
I would have said, like is it the same job,
the same money? Or I would have said can you
stick it out until we close and then like make
your life changes, right, let's not rock the boat type
of things.
Speaker 7 (20:15):
I think that's number four in our top ten list
of things not to do now that you're don't get along.
Speaker 2 (20:20):
We have that.
Speaker 7 (20:20):
We have that list, the top ten things not to
do now that your proof for long. One of them
is don't don't get a new job, switch your job,
lose your job, you know, don't do any of that
while you're waiting to close.
Speaker 2 (20:30):
After you've been approved for the long and she was
kind of like, oh my god, I didn't. I wanted to,
I didn't wasn't sure how to tell, like, and I'm like, well,
I'm glad you told me now, right, we're early. We're
not like past your loan approval. I'm not like doing
verifications that I'm gonna get one that says she no
longer works here, which I'll get, but I don't want
that to be a surprise, you know, for her prior employer. Right,
(20:51):
I'm glad you told me at this point. I wish
you told me before you did it, but well, sometimes
that stuff happens.
Speaker 6 (20:56):
Yeah, so so what happened with this one.
Speaker 2 (20:59):
We're gonna win.
Speaker 7 (21:00):
And see, I probably should have now that I felt
like I wanted to ask Mike to review this file
before we accepted the contract. But sometimes when you try
to do that in real life, you're afraid you might
end up losing the buyer out of it, because if
the mortgage person gets very upset, that's doing the loan
(21:23):
for the buyer, So they get very very upset. If
the listing side says we want a second review, a
lot of them get upset because you're afraid that we're
trying to switch and bait them and switch them over,
which you're not allowed to do under law. You can't
require a seller, cannot require a buyer to use a
certain lender.
Speaker 2 (21:42):
You're not allowed to do that.
Speaker 7 (21:44):
And the other thing is is that we don't poach, right,
we're just kind of echoes seller. Yeah, and we're we're
not poaching. The mic has never tried to do that
when we've had him do the second.
Speaker 2 (21:55):
And I think, Jim, you probably have done this. But
the way that if you were in that situation, the
way to present it to the buyer is something like, hey, listen,
and you're having trouble there, let me get a second
set of eyes on it from a professional that I
trust who actually knows what he's doing. And sometimes that
outcome is Okay, I see what they're looking at wrong.
(22:15):
Tell them to look at this, or point them to
this guideline or point them to this section of the
guidelines like they're just they're underwriter. It needs a different
angle on it. And that's your quickest path to close,
right point tech. You know, show them this, make this case,
and you'll be closing next week. So I'm not going
to do your loan, but I can help you maybe
(22:36):
spot the problem. So I've done that. I've done that
you know from time to time as well. So it's
not about like taking the business. It's about getting to
the finish line in the quickest way possible. So if
the quickest way is like, listen, I see what their
problem is, there's no way they're ever going to approve you.
But if we do it like, you know, this way,
or we take it this program, or we do this,
then you have an opportunity. Maybe that's the quickest way.
So you do have to switch up your lenders. But
(22:58):
it could also be that they're just miss reading a guide.
I mean, listen, underwriter that you say underwriter and they're
like infallible. No. Underwriters sometimes need to be pointed in
the right direction. Right. One of the advantage of working
with a you know, a direct lender like the mortgage
firm the company I work for, is I can talk
to the underwriter and I can go back and forth.
I have relationships with my underwriters. I have relationships with
(23:20):
the boss in underwriting. I have relationships with the boss
of the boss of underwriting. Right, So if there's a
complicated thing, and there's like some of the guidelines, there's
room for interpretation or what it's called underwriter discretion. And
so when if that's the case, and that's the scenario,
you just have to present this thing in a way
and kind of document it and kind of make your case.
(23:41):
And if you can convince the decision makers that that's
a solid case, you're going to get your you know,
you're gonna get over that problem. And that happens. That
happens a lot, but it happens with my file. Sometimes
I've got other loan originators who come to me for
advice and things like that. Maybe it's in pre approval stage,
they missed something and they're in the underwriting stage. But
(24:03):
like so it's not always super black and white. There's
sometimes gray areas, and so you know, underwriters can be
can look at things wrong right or and the end
should be able to be convinced otherwise.
Speaker 7 (24:18):
So you know, and another point to make on that
the underwriters know you, so they also know his reputation.
Reputation sometimes matters on a file liner. If you're in
a gray area, sometimes they'll lean a certain way based
on the reputation of the person presenting the information. So
having somebody like Mike in your corners like a really
(24:38):
big thing. I just did something recently where we were
competing on an offer for one of our buyers, and
the agent actually said in front of my buyers that
the reason why they accepted our offer is because they
knew who I was and my reputation and they knew
I was going to close, right.
Speaker 6 (24:56):
So that was like a really nice compliment. I was
like totally.
Speaker 7 (24:59):
I was totally and not expecting it because I didn't
know the agent, but they knew who I was, and
it's like, and they didn't say it until after we're
in contract. It's like, you know, they selected you because
of you. Yeah, And I was like wow. And I'm
not saying that for puffery. I'm saying sometimes it gives
you that little bit of it. She doesn't always, you know, yeah, Buffalo. Yeah, sofinitely,
(25:23):
if you're going to have a reputation, you want your
reputation to be that you're a professional who gets the
job done and not be talking about like I'm talking
about with this mortgage broker right now, about what an
attitude he has and how surly he is and he
doesn't perform. And by the way, he's on a fourth
co buyer and has only told us about one. So
he keeps switching out the names to get to love
(25:44):
him credit and he isn't telling us anything. So he's
not telling the title company, hey we switched out buyers
or anything.
Speaker 2 (25:51):
At least he's not giving up Yeah, yeah right, he's
do you have any other family members? Right help you
out on this?
Speaker 7 (25:58):
Does sound pretty confident about that, but there's a good highlighting.
He does sound coffee. It's going to close in case
the sellers are out here listening. Nothing's changed since we
talked yesterday. Okay, but it's just phrase frustrating one event
and talk about real life things that happen in real life,
you know, and how things don't always go through smooth.
(26:19):
We're gonna fix it, it'll get done, okay, but just
very frustrating with doing people that aren't as professional. I
do want to just give out one shout out before
we take a break.
Speaker 5 (26:28):
Well real quick.
Speaker 3 (26:29):
That's a good highlighting right there of why you need
to work with people that are great at what they do.
There's lots of people that are good at what they do.
There's a whole lot more that are not so good
at what they do. If you can find a resource
where you get people that are great at what they do,
you should cling to that. Floridatokrealestate dot com is just
that your one stop real estate shop. This is a
team of pros pros that do work cohesively together. You've
(26:51):
been listening for years. You've heard example after example. If
you're new to the show, let me tell you the
team at Florida Talk real Estate. This is the team
you need to vet first and foremost. And you're looking
to buy a home, sell a home, stuck with a home,
you don't know what to do. Anything that touches the
world of real estate. Remember Florida Talkrealestate dot Com. Know what,
use it, love it, share it.
Speaker 7 (27:09):
Thank you, Johnny, I appreciate that so much. I want
to give a shout out to Lisa and Kevin. Lisa
and Kevin are the ones that Kevin had the older
pickup truck. That's Mammy Dolphin. Everything is like has Mommy
Dolphin colors and he's like big Mommy Dolphin fan. And
Lisa's the what I call the force of nature. I
nictated her force of nature when I first met Lisa
(27:32):
and Kevin. This is about forty days ago. Fifty days ago.
They had listened to the show for a while, they
were fans. So I'm sitting down at their house and
Lisa's telling me how she already selected a brand new
construction home in a different part of the state, and
she already picked out the house she wanted to buy.
Plus she had a backup house in case that house
was gone by the time her house was sold, so
(27:54):
she had a backup house.
Speaker 6 (27:55):
Wow, yeah, I mean, yeah, exactly right.
Speaker 7 (27:58):
And I'm sitting at the dining room tab I'm hearing
all this and Kevin is silent as a mouse through
the whole thing. Wow right, So I finally turned that's
what I called for. It is at h So I
turned to Kevin and go, well, how do you feel
about all this? He goes, I'm just along for the ride, right.
Speaker 3 (28:15):
Right.
Speaker 7 (28:15):
Yeah, they're empty nesters and they're moving to a different
place where they want a new construction home, so they
have to worry about like increasing costs as they get
older and everything the smart stuff right there doing all
the smart way. Lisa, you know, has everything mapped out,
and Kevin goes, I don't really think we're going to
be able to make all this work, but if we can,
because it was really important that they got enough from
(28:36):
the sale of their home, because they were a seller
buyer to sell their home to get enough to buy
the other home cash. And that was like a really
big deal to them. And it wasn't going to be
like super easy, right we had we had to sell
their house at the upper limit in the neighborhood in
a slowing market. So anyway, Kevin wasn't sure the numbers
all work out. I was pretty confident everything would be okay.
(28:58):
I was a little worried at the higher number in
the neighborhood, but I knew we'd be close, right, So
we put the house on the market, sold it in
eight days, I think, right. We put it on the market,
sold eight days. We got a slowing market in the
slowing market, and there were several other houses very similar
(29:19):
to ours, similarly priced within two percent of our price,
and that had been on the market quite a long
time now. Lisa started that.
Speaker 6 (29:30):
Hoa community when the community was built where she sold
in Turtle Cove in West Palm, Okay, and so she's
been there twenty something years and she started you know,
she was part of the original HOA board, so she
knows everything about that community and everything a nice portability
and that, oh yeah, the portability was awesome on that
(29:50):
and she knows everybody in the neighborhood knows what's going
on because she has been such a you know, institution
as part of the neighborhood. So anyway, I just called him.
We closed. We closed on Monday.
Speaker 7 (30:06):
We closed this Monday, right, we were finally done on
this sale Monday. I called her to congratulate her on
Tuesday because she signed early, because she's the force of nature, right,
and she already found that we sold the house so
fast that she was able to buy the unit that
she wanted. So even though it took her two weeks
(30:27):
to stage the house before we put it on the market,
then we needed another eight days to get it on
the contract, we were still able to do it fast
enough that the developer hadn't sold the unit she wanted, right,
So she got that unit. She got that unit. I
think we're going to try to get her on air.
We got that unit. She got that unit. I wasn't
involved in that part of the transaction, but I think
(30:49):
she got a sixty thousand below what the original list
price was on the brand new construction home. So she
did great on that. We were the third highest sale
in that neighborhood I think ever all time, this slowing market, right,
I was like amazed about that. And and the house
wasn't super mac doddy. It had a brand new.
Speaker 2 (31:07):
I was gonna say, did this the house like, was
it outshining?
Speaker 7 (31:10):
No, it had some it had some better features than
some works features.
Speaker 6 (31:15):
So it was original everything.
Speaker 2 (31:17):
The house.
Speaker 7 (31:17):
It was twenty something years old. It was very clean
and very functional and you know in stage place. Yeah,
and we staged it so it looked real nice. But
it had a really nice, nice master bath that master
bath suite that they renovated and had a brand new
roof that was.
Speaker 2 (31:34):
Like weeks old. That's nice.
Speaker 7 (31:36):
But other than that, it was pretty original. Now other
ones that we were competing, one had to pull another
one had more upgrades but not the new roof. So
it was like pick pick whatever you wanted. So anyway,
I talked to Kevin on Tuesday after they moved in
everything because they saw on Facebook the whole weekend they
were posting all or during the week they've been posting
(31:58):
all this stuff about their new home and living up
there and everything.
Speaker 2 (32:01):
They're so happy. He looks happy.
Speaker 7 (32:02):
And Kevin, he was beaming in the photo right on Facebook.
So I called Lisa to congratulator, ask her how the
move went. And Kevin was listening, you know, on the phone.
So I go, hey, Kevin, how you feeling and he goes,
I'm feeling awesome. I never thought this is gonna happen, right,
And they were so happy up there. So just shout
out to them, thank you for trusting me to help
(32:25):
you so years.
Speaker 2 (32:26):
To just go along for the ride because it's a
good ride.
Speaker 6 (32:29):
She's smart, Yeah, she's super smart. Just let her take care.
Speaker 2 (32:33):
Yeah, yeah, exactly.
Speaker 7 (32:34):
So Lisa and Kevin, I hope you have many, many,
many years of enjoyment in your new home, in your community.
They moved to Hormond Beach, they moved up north, so
I'm really happy for them, and I hope you enjoy
your new venture in life. And so literally looking forward
to keeping in touch with you to see how things
are going.
Speaker 6 (32:51):
In Go Dolphins, Kevin. I'm a dolphin fan.
Speaker 2 (32:54):
So they're going to have so it's brand new construction.
Insurant's going to be really low. They got probably a
very big portability gap. So their property taxes even though
they're buying you know, I don't know what price point,
but you know, relatively expensive home, their property taxes will
not be going crazy on them. So yeah, that they'll have.
Speaker 7 (33:12):
To worry about a roof for probably fifteen years. You know,
assuming you don't get hit by a storm. You don't
have to worry about your roof. Your AC is good
eight to ten years, right, or your water heater is
good eight to ten years. AC is good about ten years,
you know. You know, a lot of the things that
people have to worry about as they're getting older, a
lot of those costs for them.
Speaker 6 (33:33):
Are being taken care of. It don't have to worry
about it for a long time.
Speaker 2 (33:37):
Very nice.
Speaker 6 (33:37):
So it's just really smart.
Speaker 7 (33:39):
We are going to get into a little later today
about why it is such a great time to buy
right now. A lot of people are very confused about
this market, and it is a confusing market, don't get
me wrong. There's been a lot of takeaways in the
national market with the prognosticators and are the necessociation realters.
They scaled back what their expectations for the year is
(34:02):
yeah and advising downward. Right, So a lot of people
are bracing for a very rocky real estate year this year.
But no matter what the market is, there's always one
segment that's going to do a little better in that
market than another segment.
Speaker 2 (34:18):
Right.
Speaker 7 (34:18):
That's why we say seller's market, buyer's market, for example,
or investment market.
Speaker 2 (34:23):
Right.
Speaker 7 (34:23):
But this case, right now, I'm going to make the
case a little later today and with Mike about why
it's a great time to be a buyer in today's
market and all the benefits of being a buyer. And
we're going to talk about a couple of negative things
about being a buyer today's market, but the benefits far
way out weigh the things that most people are carping
about right now.
Speaker 6 (34:43):
So we're going to get into that in a little bit.
Speaker 5 (34:45):
Excellent, we'll do a four minute reset, we get back.
Speaker 3 (34:47):
We got plenty of time remaining on this Saturday, another
basic hour and a half. Thank you very much for
being with us. You're welcome to join us. Always remember
toll free eight seven seven nine two seven six nine
six nine if you want to get involved the conversation
at hand, or if you have a question that you'd
like to pose to one of the pros, You're more
than welcome. If you're not comfortable on the radio, I
totally understand. Always remember you can reach the entire team
(35:10):
at Floridatalkrealestate dot com. Find us on Facebook as well.
Another resource to use. But at floridatalkreal estate dot com
you got the hotline. You can call it twenty four
hours a day, seven days a week eight eight eight
nine seven three seven eight to eight. You'll find it
at floridatalkrealestate dot com. You got the contact sheet there
as well. Just find a way to get in touch
when you're looking to buy a home, sell a home,
(35:31):
stuck with a home, you don't know what to do
when you need Prospros that the team at floridatokrealestate dot com.
Speaker 5 (35:37):
You will not be sorry no one. Use it, love it,
share it.
Speaker 3 (35:39):
You can change your life, many lives, but yours is
the most important one. To us at Florida talkreal Estate
dot Com. Four minutes from now we get back at it.
You ready, Jimithy, Yeah, we are ready. All right, let's
do this Florida Talk real Estate right here Onnreal Radio.
Speaker 1 (36:00):
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 3 (36:09):
Yeah, dial it up eight seven seven nine two seven
six nine six. Now we are alive on this Saturday,
March eighth. If you do dial that up, questions, comments,
concerns in the world of real estate. You want to
get involved with the conversation at hand. The first voice
you'll hear, that's our producer, short ered Jimmithy.
Speaker 5 (36:25):
What's up, my dude? Hello and good morning gentlemen, Good morning.
And Johnny C.
Speaker 3 (36:29):
Well, that's me. Mike Row's with us. He's the mortgage
guy from the mortgage firm. Hello, my friend, Yes he is.
Speaker 2 (36:34):
Good morning, good morning to the audience.
Speaker 3 (36:37):
Of course, we always got Jimmy d our fearless leader.
He runs a top producing Keller Williams team, the Florida
Home Pros Team, Keller Williams Innovations.
Speaker 5 (36:44):
Jimda Pola, there's Jimmy d How you be?
Speaker 6 (36:46):
I Do I run a top producing team?
Speaker 5 (36:49):
Do they have for many years?
Speaker 1 (36:50):
No?
Speaker 7 (36:51):
Jesus, hey, I have an apology instead of a shout out.
I'm going to do an apology today. I want to
apologize to Diane because I made a lot of of
her a few weeks ago.
Speaker 6 (37:01):
And when I was making fun, it was all in
good natured and everything. But now I read this news
story and it's.
Speaker 7 (37:07):
Like, oh, maybe Diane was right and I was wrong.
So Diane is Diane and Gregor selling a house with
me and buying a new home. We're almost ready to close. Basically, yeah,
they made.
Speaker 2 (37:20):
The Melancamp reference, Greg and Diane Diane, right.
Speaker 6 (37:24):
I came up to some lyrics, so that's when they closed.
I'm going to try and sing Jack and Diane with
a couple of lyrics.
Speaker 2 (37:30):
Remember last second, you were talking about reputation, Jim, I
don't want you don't want.
Speaker 7 (37:35):
To Well, I don't think he corrected the reputation any
worse than lowe knowey, that's right.
Speaker 2 (37:46):
That's when you're.
Speaker 7 (37:48):
What was in your house was the lowest it's the
actual real lowest number that you'll take.
Speaker 2 (37:53):
What was the opposite the high mall wowe.
Speaker 7 (37:59):
Yeah, some of them offer that you'll offer as a buyer,
and loy is the lowest stop for you'll take as
a seller.
Speaker 2 (38:06):
And that's the line of the sand. We got the
T shirts printing after just not so yeah, I should.
Speaker 7 (38:11):
I should went your Maui wowie and put that on
a shirt or some hats or something in Florida talk
real estate, So so.
Speaker 2 (38:19):
I want my hat designed Jim, No, it was. It
was I had a buddy of mine who uh from training,
who had a heart attack and in a competition, but
he so he made They.
Speaker 7 (38:29):
Said he had a heart attack in a competition jiu
jitsu competition.
Speaker 2 (38:32):
Oh and uh and then he you know, it's one
of those like he died on the mats and then
they were able to bring him back with CPR everything.
So I kind of made it joking with him, the
the the the hat instead of yo loo, it's yo loot.
You only live once or twice or or twice. So sorry,
(39:00):
sure that just brought that brought that to my brain.
Speaker 7 (39:03):
So I want to apologize to Diane. I'm making a
formal apology.
Speaker 2 (39:07):
Guys, yeah, I keep interrupting you. Sorry.
Speaker 7 (39:10):
So Diane is a very cautious person and she's selling
a house and buying a house. So there's you know,
that whole chicken and egg thing could really blow your mind, right,
How am I supposed to sell my house if I
don't know what house I'm going to buy. I can't
put my house on the market if I don't know
where I'm going to live afterwards.
Speaker 2 (39:25):
Right, don't want to be homeless?
Speaker 6 (39:26):
Right? You don't want to be homeless?
Speaker 3 (39:28):
Right?
Speaker 7 (39:28):
And then how am I going to buy a house
if I need the money from the house I have
to sell, but I find the house, but now I
have my house isn't sold.
Speaker 6 (39:35):
Yet, So what the heck am I going to do?
Speaker 7 (39:37):
And it's very common chicken and egg problem. Well, when
you're a cautious person, right, and nothing wrong, But I'm
not judging on this. I'm just saying, when that's your
person out of top, you're not a risk taker things
like that. When you're a super cautious conservative person about
that kind of stuff that.
Speaker 6 (39:54):
Can really, you know, screw with your mind pretty bad.
Speaker 7 (39:57):
Right, And you have a lot of questions should She
asking me a lot of questions through the whole process,
which is understandable, but it was getting some of the
things that she was worried about were very you know,
being in the profession, Mike, like you and I worrying
about the chances of the loan's going to go through
or something. Right, you might know after reviewing the file
that you know the loan's going to go through. There is,
(40:18):
but you can't really say I one hundred percent guarantee
this loan's going to go through until it's done. But
you know that the loan's going to go through and
there there's going to be no real issues or anything,
and that's you know, and you're going.
Speaker 2 (40:29):
To move forward. I can oftentimes tell that just to
my initial ten minute, but if you're a person without docs,
I can put it in that sense.
Speaker 7 (40:38):
But if you're a person who's never hasn't done a
process like that for a long time, and you're cautious
and you have a lot of natural questions, you're just
naturally inquisitive about all the things that could.
Speaker 2 (40:48):
Go wrong, and you need to know that right.
Speaker 7 (40:52):
Even though that you, as the professional, feel fully confident,
if they're not, you know, that's still very disconcerting to them.
So I was trying to make when we were going
through this on one of the subjects, I was trying
to make Diane at one point understand that basically everything
in the deal for the sale and the purchase is
done and except I said, unless for some reason, you
(41:15):
don't think that you're gonna get clear title to your house,
or we can't get clear title to the other house,
like they can't clear the title. Other than that, there's
nothing else that's left because both deals are cash. Didn't
have any appraisal, We had the inspection, inspections are done.
We're just waiting for title clear and then we're going
to close.
Speaker 2 (41:34):
Right.
Speaker 6 (41:34):
Oh and one of them had.
Speaker 7 (41:35):
To get approval from a homeowners association. So I go, So,
unless you think none of that's gonna happen, right, you're good,
You're one hundred percent good. Should be kicking up your heels. Yeah, yeah,
and have a little glass of champagne. Maybe not the
whole bottle, but have a glass because you're pretty far
along and it's gonna happen.
Speaker 6 (41:57):
So what was the example I used?
Speaker 7 (41:59):
So, I said, I And I was thinking the examples
to be totally outrageous to show show her that, don't
you know, you're really you're really worrying about nothing. So
I said, you know, maybe the house who burned down,
or the house will explode.
Speaker 6 (42:12):
I mean, if you're.
Speaker 7 (42:13):
Gonna worry, let's worry about real things, like the house
could explode or whatever.
Speaker 6 (42:17):
Well, I was reading.
Speaker 7 (42:18):
I know, maybe it wasn't the best way to say it.
I was having a bad week.
Speaker 2 (42:22):
Maybe you could drop dead tomorrow.
Speaker 6 (42:24):
But here here's the thing I was reading last night
and I was Manifestations.
Speaker 7 (42:30):
Well, I feel so bad for this family in Ohio. Sorry, sorry,
Barbington family, Barbarton, Ohio. There's a headline I read yesterday
and then I stopped to read, and then I was thinking, Diana,
it's like I owe her an apology. Barbarton home had
Barbarton home that exploded was pending saleh no.
Speaker 2 (42:53):
No, Gee, I can't believe it.
Speaker 6 (42:55):
This happened this week.
Speaker 7 (42:56):
It was March fifth, updated March fifth house that was
on the market. It was under contract to be sold,
and the dang house blew up.
Speaker 6 (43:06):
And now there's no more left to buy.
Speaker 7 (43:08):
God, thank god. Nobody was in the house and nobody
was hurt or anything. It was a vacant home and
they think it was.
Speaker 2 (43:14):
The gas gloat.
Speaker 6 (43:15):
Yeah he was there, evidently, but the house was on
the market, it was pending and then it blew up.
Speaker 2 (43:22):
I was trying to pull the name of that band
that he just played the fire started. Who was that?
Speaker 5 (43:25):
Oh? That was.
Speaker 2 (43:28):
That boy Slim No, No, Prodigy Prodigy, bro, that's it
good stuff. Little that took that just took me back,
like that was that's like nineties, right, early nineties, mid nineties.
Speaker 5 (43:40):
Gosh, I feel like.
Speaker 2 (43:41):
Sounds about right.
Speaker 5 (43:42):
Yeah, I feel like it's later than that. But my time, man,
i'd be like, oh that just two years ago. That
was fifteen years Oh yeah exactly.
Speaker 2 (43:50):
Yeah.
Speaker 5 (43:51):
Did you graduate high school ninety three?
Speaker 2 (43:53):
Ninety three? So it was probably I graduated ninety six.
I feel like I think it was right there, right,
and I feel like you're in that ninety seven ninety
eight zone. Yeah, it could be.
Speaker 5 (44:01):
Yeah, I'll look it up, all right, we.
Speaker 2 (44:04):
Can ask yeah, looking up, do you remember that band?
Jim No, I don't remember what was Prodigy?
Speaker 5 (44:10):
Prodigy?
Speaker 2 (44:10):
Yeah?
Speaker 6 (44:10):
But what could you play the song from fire Starter?
Speaker 2 (44:12):
Yeah?
Speaker 6 (44:12):
I didn't hear it.
Speaker 2 (44:18):
Oh, this is like your loan originary. He's click clacking.
I know where it is. Hold on, bear with me.
He found it in like a second when when it was.
Speaker 6 (44:30):
He broke six, he broke the three sixty, he broke it.
Speaker 8 (44:34):
All right, Well there's a way ninety six okay, yep,
ninety six boom I don't know that.
Speaker 2 (44:45):
One hasn't kicked in yet, and wait for the what
do they call that giant?
Speaker 5 (44:52):
The drop the drop in?
Speaker 3 (44:53):
Yeah, probably I would guess the biggest song from Prodigy Brill.
Speaker 2 (45:00):
Yes, I can tell you. Maybe one other one.
Speaker 5 (45:04):
If I heard it, I couldn't. What was I'm not
at Raves. I'm guessing.
Speaker 2 (45:10):
I guess, yeah, I don't think I wasn't. Really, you
were probably organizing your Barry Manilow record collection.
Speaker 3 (45:16):
There weren't many double stack days and gyms.
Speaker 7 (45:21):
So I I just thought this was funny that the
house blew up, and I'm like, well it was.
Speaker 2 (45:27):
I was waiting to close. You put that on your
mental list of things not to to somebody like everything's
going so great. It's you know that situation, Jim with
the seller buyer, like that you'd mentioned the you know,
the conservative, cautious and and they'll be like, I'm not
going to put my house on the market until I'm
(45:47):
in contract where i know where I'm going next. And
as a as a you know, professionally, you have to
try and convince them like what what? What seller is
going to accept your offer that's contingent on selling your
home and you have any you're not even on the market,
like you're not don't even have you're home listed for sale.
If you were in a really, really really strong buyer's market,
(46:08):
maybe that's possible, but we're not. We're not there, right, It.
Speaker 7 (46:13):
Would be very hard to get somebody into contract if
your house isn't even on the market. And even even
being on the market and not in contract, that's still
not a great position to be in. It's much better
when you're in contract. Like if you could say, hey,
we've already gone through the inspection, we're just waiting for
the appraisal, go into contract with us. By the time
(46:35):
we're we have a clear inspection, our appraisal will be done.
Yeah that way, you know that way. Go just let
us get through the inspection period, our appraisal will be done.
That way, we'll know everything's done right. That would be
a stronger situation. Or hey, we're cash, we're ready to close.
We're just waiting to find the house that I'm trying
to buy.
Speaker 2 (46:52):
Yeah, and a lot of people definitely want to avoid,
Like we joke about being homeless, but a lot of
people want to avoid like some sort of middle ground
between the two homes, maybe you have to rent somewhere,
you have to pay storage fees, so if you can
avoid that. So the simultaneous close is complicated, doesn't always
it's not the easiest to manage because you do have
two deals. Sometimes they're daisy chained with other deals, right
like multiple seller buyers, So it's hard to do. But
(47:16):
if you go into it with the right like plan
and you're communicating with all the professionals and everyone's kind
of communicating, you can and maybe there's some flexibility on
dates or like hey, you close, maybe it's a post
close occupancy, so you sell your home and you're able
to rent it back essentially for a couple of weeks
(47:38):
or a month or something. So all of those are
like the tools in your tool belt with that type
of deal. But certainly it's complicated and a lot of
things out of your control.
Speaker 7 (47:48):
There are, and you have to really be on top
of everything. And the other thing is is that you
should also make sure that you understand your costs because
let's say that you do have to go through a
transition where you can't sell it, like what Lisa and
Kevin did.
Speaker 6 (48:06):
They came in on Monday. Monday, they they.
Speaker 7 (48:10):
Actually pre signed, but Monday, basically they closed on their
home in the morning. On the sale of their home,
that title company was told to send money to the
second title company for the purchase of the new construction home.
And then later that afternoon they went and went to
the second title company and closed that and got the
(48:31):
keys to the new house and gave up the keys
of the old house, all on the same day, so
there was no worrying about where your stuff was going
to was leaving on Sunday night in Palm Beach County
and it was Norman Beach on Monday morning, right, So
I think by four o'clock in the afternoon they were
already kind of moved in, right, which is pretty cool,
(48:52):
right on the same day. Now, Lisa and Kevin were
really smart because they had a backup plan. If the
first house wasn't going to work for them, they had
a second house lined.
Speaker 2 (49:03):
Up, right.
Speaker 7 (49:03):
I mean, that's why when they export the names are
right right. Yeah, they had backup plans and stuff, which
is awesome.
Speaker 6 (49:10):
The other thing is it's really important is to know
your numbers.
Speaker 2 (49:13):
Well.
Speaker 7 (49:13):
So let's say that let's say a transition period of
a week is going to cost you ten thousand dollars, right,
and it's like ten thousand dollars.
Speaker 2 (49:22):
How's that happen?
Speaker 7 (49:23):
Well, a lot of times some moving companies, if they're
told at the last minute that they got to keep
your stuff in storage and not move it to the
new place, they're going to charge you a decent amount
of money to hold that furniture. And it's kind of
expensive to hold it just for a couple of days,
so it can be a lot of money to do that.
Then you've got to have a place to live for
the week or something. Let's say there's a week transition
(49:45):
or something. Right, And then if you have pets, it
becomes even more complicated. Right, if you have two big
dogs and you're trying to find a place that's going
to let you stay for a week or ten days
or something. You start out and all that up, you
might be able to adjust your price differently in order
to to get the right buyer or something. Right, So
let's say you're trying to get six hundred thousand, but
(50:06):
if you don't close on the same day, it's going
to cost you fifteen I'm just making it up. Okay,
you could adjust the price to work with the right
buyer that can give you the timing you want and stuff.
So there's a lot of ways to work around it.
But you got to know your You got to know
everything pretty well and what could go wrong. Knowing what
could go wrong is really important. That's why you always
(50:27):
have to figure out one step ahead. It's the old
no no no non right. If that makes a difference,
I just want to switch gears here. We talked last
time we were on the show. We were talking about
how Florida is considering entering property taxes facing out property.
Speaker 2 (50:43):
I've been here, people are talking, Yeah, we're talking about it.
Speaker 6 (50:46):
I still think it's going to be talking.
Speaker 2 (50:48):
That's it.
Speaker 3 (50:49):
How far did it get in Like remember when Marko
Rubio brought this up, like twenty ten to two thousand
and eight. How far did they get with the reality
so I don't remember. I think they got to the
point where they're like, yeah, it's just not doable, mark
we can't make the money up unless we apply taxes.
And if they do a state tax, they start talking
about how it disproportionately.
Speaker 2 (51:10):
If you're talking about it lower income tax, no sales taxes,
you got state sales. We talking about billions of dollars
they're going to make up. It's a lot, yeah, I mean,
I just I saw a video. You know, it's hard
to tell with videos these days, like what's real and
when was it and all that stuff, But it was
definitely a desantist talking about property tax that he was
behind the idea. He supported the the cert you know,
(51:32):
the research effort, uh, and he vowed that they'll you know,
at the state level, there's no going to be there's
no increase in state tax level, right right, he said,
because we'll never do that under my administration. So it's
still I when I I think I'd love the idea.
Of course, who doesn't. Who would love to not have
(51:52):
a five, six, seven, ten thousand dollars bill every year
just for owning your own property?
Speaker 3 (51:58):
Well?
Speaker 2 (51:58):
Right, I think they get that.
Speaker 3 (51:59):
Biggest point he makes when he's talking about it is
is you'll never you never own your home. You're always
kind of.
Speaker 2 (52:07):
Think that if we saw the same we saw the
same video that I was talking about renting your land
from the government, I get that.
Speaker 3 (52:15):
Yeah, it's not hard to get behind until you realize
what you have to sacrifice to get.
Speaker 2 (52:19):
I remember, you know, I moved to Florida from Virginia,
and Virginia you had the state income tax. And one
of the big things about Florida is, listen, there's no
income tax in Florida. That's one of the big benefits
when you know many of Jared's Jarrett's clients, you know,
or Florida residents for that reason. And that's great. But
(52:45):
so where we're so you have a little bit higher
sales tax, you have a little bit higher property taxes,
and it just like in order to fund government operations,
you need tax money like that. There's nothing new about that.
Like taxpayer is pay for infrastructure, police, fire, education, all
of that stuff. So you have to you have to
(53:06):
be able to fund that stuff. Even if you cut
out you know, the what's the hot topics, the waste,
fraud and abuse and all that stuff, you still need
these resources. They still cost a lot of money.
Speaker 7 (53:18):
Well, it costs fifty billion dollars, that's what they'd have
to make up. A bunch of studies said the same thing.
Fifty billion a year is what they would have to
raise because that's what they'd be losing. If they ended
property taxes be fifty billion a year, they'd have to
make up.
Speaker 3 (53:32):
It's not the state obviously, that's fractured county to county municipality.
Speaker 5 (53:37):
They get their own slice of that pie.
Speaker 3 (53:38):
And that's a big point of emphasis is you know
it's not state money, it's county money.
Speaker 7 (53:42):
And at some point every county, Right.
Speaker 2 (53:46):
Do you want to live in the county or the
municipality that has cut their budget so much so that
you don't have to pay taxes?
Speaker 5 (53:55):
Like?
Speaker 2 (53:55):
What what is what comes from that? When you talk
about uh, you know, the school systems, when you talk
about police and fire, when you talk about parks and
rec like, do you want to be in the county
that has just slashed their budget so much to save
tax dollars? Save taxpayers dollars?
Speaker 7 (54:12):
But what do you Here's here, here's another thing. There
was a law passed a couple of years ago, I
think it was twenty twenty one here in Florida where
local municipalities are not allowed to change their law, enforce
budget down without state approval, right, right, So you can't
even do the cuts that you're talking about without the statesion.
(54:36):
Right for law enforcement, you can't even do that without
asking the state.
Speaker 5 (54:39):
Permission, even though it's your county's budget.
Speaker 7 (54:42):
Yeah, I don't even understand how we You know, it
always used to be, at least when I was growing up,
everything was about local, local, local, And now it seems
like everything's going up where the controller is going up
to higher powers instead of the local level. And it's
just changing just so dramatically. The attitudes in the country
just remain changed.
Speaker 2 (55:02):
Well, part of that attitude is movement towards like, uh,
forget about about what the traditional bureaucracy says about that
kind of thing. You get your your you know, the
leader making making decisions, right like, so you say you
can't do that, you can't, Well who says you can't?
Speaker 7 (55:19):
Let's just cut the budget right? Well, well, so the
fifty billions. So here's the thing I didn't understand. I
didn't know this. I thought Texas was the first state
to try to do this no property tax thing, but
actually was no North Dakota and North Dakota tried it,
and they got the farthest out of all the states
to try to end property taxes and it failed. The residents,
(55:41):
uh said they didn't want to do that because they
were too concerned about what was going to be cut
and how they were going to make up the money.
Speaker 6 (55:49):
The other thing.
Speaker 5 (55:49):
That's so interesting, they put it the referendum.
Speaker 7 (55:52):
Yeah, they actually brought it up for a vote. They're
the ones that got the farthest, and they it was rejected.
They said they didn't like, they weren't confident how they
were going to be able to fund everything.
Speaker 3 (56:03):
We may get there, we may end up voting on
that's what it'll take.
Speaker 6 (56:07):
I don't think, yeah, it's going to take sixty percent.
I don't think it's gonna work because it doesn't work
in at Texas. They just tabled the whole thing. It
was a hot mess for them.
Speaker 5 (56:18):
So you get the this is how we supplement this
is you have.
Speaker 7 (56:21):
To figure out how you're going to fund it. And
here's a couple of arguments about it.
Speaker 2 (56:25):
Though.
Speaker 7 (56:25):
You know, one of the arguments against the property tax
elimination is that what you're basically doing, you got to
make up that fifty billion, right, So what will happen
is everybody's going to, hypothetically, this is what they're talking about,
everybody would have to pay basically in a sales tax
or something, so it becomes a consumer tax basically. And
(56:48):
what happens is is the people that own land or
own real estate, right, their tax bill is going away completely.
And then people that don't own any land or own
any real estate now they're paying a higher tax bill
to make up the fifty billion sure the land owners.
Speaker 3 (57:07):
And it disproportionately affects the lowest income earners most because
that they they they're subject to this sea.
Speaker 6 (57:13):
If you're making it, I'm making it up.
Speaker 7 (57:15):
But if you're making thirty thousand dollars a year and
your consumer tax or sales tax goes up four percent,
that's going to affect you a lot more than if
you're making one hundred and fifty thousand dollars a year.
Speaker 3 (57:25):
Mike, Mike did the math on the fly one day
in here, I don't know, a month ago, right, and
it was a I don't remember what the number was,
but it was a stupid number that you had to spend.
Speaker 2 (57:36):
So we did the we did. It was something like
four I assume four thousand dollars in property taxes, which
is probably on the low side, but just say four thousand. Nopuh,
And I said six percent, So just say the sales
tax doubled, right, so you would have to spend It
was like something like sixty five thousand dollars in order
to make make four thousand at six percent, right, so
(57:57):
six percent of that sixty five is your four thousand.
So every in buying stuff that are subject same extra.
Speaker 5 (58:06):
Yeah, in addition to what they already spend to make
up for.
Speaker 7 (58:10):
But here's a bit, here's another issue too. And this
is the thing that always bothers me though about the
tax increases. We've had tremendous amount of tax base increase,
like the home values increasing and property has increasing, which
means that the government collects money even if they don't
change the rate, like the taxable rate. They keep the
(58:31):
milite rate the same. If the value they get they
get more money.
Speaker 5 (58:36):
Yes, But.
Speaker 7 (58:38):
No matter how much money is coming in, you hardly
ever see them reducing the tax bates. They either keep
it the same or it goes up. It really goes down.
And if it goes down, it goes one down one
year and then three years up again. And the thing
is nobody it's almost like free money to them that
they don't have to go back to the public to
ask for. They're just saying, hey, your house growing values
(59:00):
and now we get to collect more money. And the
thing is what happened with the sales tax is if
the economy got bad, Right, if the economy gets bad
and people buy less stuff, you're going to be taking
in less taxes and you can't rely on property value
increases to make up difference. Right now, Right now, that
(59:21):
property value increases like a bonus to government to keep
things going and not having that if the economy goes
bad and like we went into a really severe let's say,
was just straight sales tax, and all we're doing is
making money off of what people buy, right for tax purposes,
if that's the majority of the income coming in for
(59:42):
the government. What happens when you go through a really
bad recession or a depression or stagflation like we had
in the seventies and people weren't buying nothing because they
couldn't afford it, right, then you have no money to
run your government. It gets worse and worse. It would
be like a self fulfilling Like.
Speaker 2 (01:00:00):
It's kind of inevitable that like, the more money you make,
the more money you're going to spend. Right, So governments
are certainly that just like people like even you know, Johnny,
you were at one point in life, you're making fifty
thousand and you make one hundred thousand whatever, you still
like are accumulating less savings, right, just because you're spending
goes up because whatever, That's just like how things work,
(01:00:20):
and governments certainly do that. I think when where the
rubber meets the road is like, so what are you
going to cut out of? Because you can't you have
to reduce the budget. What are you cutting out? And
that's where people have their like pet projects things like that.
I've heard this argument that I don't have any kids
(01:00:41):
in school, why are my taxes going to fund our
public education system? Right? I've never called the police Johnny
once in my life. Yes, a matter of fact, the
only time. The only thing they've done is pulled me
over and cost me money, right, or write me tickets
like why am I funding it? And I hear that
stuff and as an individu joy I can see that perspective.
But you have to I mean, you're living in a community, right, Like,
(01:01:04):
there's got to be you have some things that you like, right,
there has to be some things that you like.
Speaker 5 (01:01:08):
Now imagine it completely uneducated.
Speaker 2 (01:01:11):
Yeah, I live in the anchorage.
Speaker 5 (01:01:13):
Right.
Speaker 2 (01:01:13):
They spend a lot of money Indian trails, waterman, they
spend a lot of money like managing water, but also
the roads, right, so I'll you know, we still have
dirt roads out there, so they're scraping those roads. There
was an initiative where they did this paving project that
all came from tax dollars. And those are all things
(01:01:34):
that like make in my view, make the community better,
make it livable, like we're still keeping our rural kind
of vibe. But there's things that there considers improvements.
Speaker 5 (01:01:45):
Right.
Speaker 2 (01:01:46):
So I don't know, but I see that Jim, like
the property. As property values increase because the market's increasing,
all of a sudden, the tax coffers are getting full
and then they're spending it. Yeah, they're spending it.
Speaker 7 (01:01:58):
So a couple of other ideas are going to try
to And here's another thing, on the property taxes. If
they did eliminate property taxes, what do you think is
going to happen to property values? So you know, everybody's saying, oh, well,
if I'm paying six thousand dollars a year for my
property taxes and I don't have to go that a way,
that'll save me so much money.
Speaker 6 (01:02:16):
And now you know I own the land, right But
What will.
Speaker 7 (01:02:19):
Happen is is that now your mortgage payment is going
to be lower, right because you don't have to pay
property taxes, so you can afford a bigger more money
for the loan, right, and or a bigger house or
whatever I tell you.
Speaker 2 (01:02:31):
Fuel that'll fuel.
Speaker 7 (01:02:33):
That'll just be another super surge into property values going
up again, right, and that's gonna I'll bet you dollars
Sedona so would offset any money that you would be
quote saving from the property taxes. So it really isn't
going to be the panacea that people expected to be.
I would love it to work out that way, you know,
(01:02:54):
I would like to have no property taxes if it
was going to be better for.
Speaker 5 (01:02:59):
A world really be able to make.
Speaker 2 (01:03:01):
We are in the real estate, so we're all the
perspective that we're kind of the where we're coming from
is like you're a buyer, and it's a art. It's
a tough market for buyers because home prices are a
property taxes, you know, the insurance, and so if you're
a buyer, you don't want home values going through roof.
If you're just a homeowner accumulating your wealth right like
(01:03:21):
your war chest. Yeah, I want my property to be
worth as much as possible. I want my lot, like
my acre in a quarter that my house sits on,
to be like worth a lot of money, right, Not
because when I go to sell it boom right. As
a buyer though.
Speaker 7 (01:03:36):
Jeez yep, Hey, let's go ahead and take a break
on the flip side, though, I want to talk about
a new record that Florida hit in real estate. First
time ever. This happened in the history of real estate
for Florida. We're going to talk about it real quick.
Speaker 2 (01:03:49):
And is it a Florida or is it a Florida.
Speaker 7 (01:03:53):
It's it's it's neutral. I guess it's kind of neutral.
But the other thing I wanted to say is, right
after that, we're going to talk a lot of stuff
about what happened in the news this week about these
super low interest rates that everybody needs to take advantage of.
If you're a buyer and you've been reading about these headlines,
you've got to check out what we have to say
about those super low interest rates when we get back
(01:04:15):
on all right, lots.
Speaker 3 (01:04:16):
Of very valuable information remaining, about an hour left on
a Saturday. Thanks for being with us. Write this down
if you don't remember from the last time you were told.
Floridatalkrealestate dot com is your one stop real estate shop.
You get access to the entire team of pros.
Speaker 5 (01:04:30):
Pros.
Speaker 3 (01:04:30):
These are people that are very good at what they
do and when you walk the watch them work cohesively together.
Gives me chills when you have access to a team
when you're looking to buy a home, sell a home,
and you're stuck with a home and you don't know
what to do. Man, the power that you have and
the confidence that you can walk around that you are
in the best shape you can be in is wonderful
(01:04:53):
and I want that for you, your friends, your family.
So no what use it, love it shared. It's Florida
Talk real Estate dot com. There's a hotline you can
call it when you'd like. Of course, always remember the
contact sheet on Facebook as well. When you need a
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and forth minute. It's great to have you with us
every Saturday, Florida Talk real Estate right here on Roll Radio.
Speaker 1 (01:05:26):
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 3 (01:05:36):
It is eight seven seven nine two seven six nine
six nine toll free.
Speaker 5 (01:05:39):
We got you until eleven. What's it eleven?
Speaker 2 (01:05:42):
We're doing?
Speaker 9 (01:05:42):
Uh Panthers, Yeah, Panthers Insider show Man. They just added
they just got marshand today. The Bruins are in cell
mode right now. Marshand's on the shelf for a little
while right now. But that was a big git for them.
Potentially that could be massive.
Speaker 3 (01:05:56):
The Seth Jones git was huge, especially egg Glad starts
stinking it up on the power play a little bit.
That's a nice blue line ad right there. Started to
get a little dorky on the Panthers.
Speaker 5 (01:06:07):
But Cats rich getting richer. Uh, they're definitely getting ready
to make another run. They got a backup goalie.
Speaker 3 (01:06:13):
Yeah, they're they're like, let's go, let's do this again,
let's get another There you go another good for the Panthers.
I am not a big Cats fan, but obviously you
who support local watch.
Speaker 5 (01:06:25):
As you can't or you a Caps fan, aren't you? Yeah,
what are you booing over there?
Speaker 2 (01:06:29):
Then just saying you're not a Cats Cats fan? And uh,
we're on a local radio station.
Speaker 5 (01:06:34):
Yeah, root for them, but I'm not. I don't. I'm
not like waving.
Speaker 2 (01:06:37):
The best ways. When I went to see the Caps here,
the chant was always let's go Cats, and I could
just twist it in my mind. So let's go Caps. Yeah,
looking along with that, Look at all these fans, Let's
go Cats.
Speaker 5 (01:06:53):
Yeah.
Speaker 3 (01:06:54):
No, I think it's fantastic whenever the local teams can
do well. And obviously you know the thrill of championship
run down.
Speaker 2 (01:07:00):
Here, he's chase going to see uh close, I know,
I know he's closed. You have a chance of getting
it this year? Yeah, I believe how many games are
I haven't. I haven't kept up with the uh the
chase for movie. Yeah, but I know, uh, I.
Speaker 5 (01:07:16):
Think I know it's close. Johnny sees me. There's Mike
Row He's the Caps fan. Yep, sorry, yeah, guys, he's
the mortgage guy from the mortgage for him. And a
true Panthers fan is jim Depola.
Speaker 3 (01:07:25):
He runs a top producer Keller Williams team Florida Home
Pros Team Keller Williams Innovations.
Speaker 5 (01:07:29):
It's a Jimithy tub.
Speaker 3 (01:07:30):
Yeah, we're we're talking Caps.
Speaker 5 (01:07:37):
Jimmy Dpola, How you.
Speaker 6 (01:07:39):
Be hey, good, good good.
Speaker 7 (01:07:41):
I just wanted to say that we hit a new
record here in Florida for the highest number homes listed
for sale in Florida. We hit one hundred and seventy
two thousand, two hundred and nine homes for sale on
the market.
Speaker 2 (01:07:58):
That's up about the high.
Speaker 7 (01:08:01):
The last time we had numbers even close to this
was in twenty twelve when we started the show. I
remember for Saint Lucy had six years of inventory back then.
Speaker 6 (01:08:12):
That that was pretty daunting. When you'd put a house
on the market and you knew that there was a
six year inventory in the neighborhood.
Speaker 5 (01:08:18):
Yeah, that's pretty deep, right.
Speaker 6 (01:08:21):
It's like, yeah, I'll be retired by the time this
house sells.
Speaker 2 (01:08:25):
It's kind of so is it because everyone's selling because
it's a great market to sell, or is it because
homes are just staying longer.
Speaker 7 (01:08:33):
I think there's two things happening right now. The houses
are definitely staying on the market longer, there's no doubt
about that.
Speaker 6 (01:08:39):
But also, there are more people putting their house on
the market. There is more it seems more willingness to
sell now. Some of them are like landlords that are
selling because they've made a lot of money on the
and they're ready to cash out because either the house
is going to start needing some majorie pairs or they're
(01:09:02):
tied in the insurance hikes and everything and it's stripping
out the income.
Speaker 5 (01:09:06):
Expensive.
Speaker 7 (01:09:07):
We're having people that are just leaving this area and
they don't care like if it's a good time to
buy or a bad time to I mean a good
time to sell or a bad time to sell. What
they want to do is get out of town. They
want to move to either other parts of the state
or Florida that are slower or a little less expensive,
or they're moving out of the state completely.
Speaker 2 (01:09:27):
They're pulling the handles on the yeah ejection, ye rip order. Yeah.
Speaker 7 (01:09:34):
And it's funny, it is kind of a tail of
two cities on that market because I if somebody, if
another realtor was sitting there and saying, well, Florida, especially
South Florida, is getting more and more millionaires from up
north moving to Florida. That's true too, right, So you
have the super wealthy moving down here, but you have
(01:09:55):
more middle class people and people that are about to
retire or tired. In Canada, I feel like it's too
scary down here financially, they're leaving. But let me tell you,
there's way, in my opinion, there's way more people leaving
because there's way more middle income people than millionaires moving
into the state.
Speaker 2 (01:10:15):
So I think, anyway, yeah, million billionaires, billionaire slackers, slackers,
what is I think.
Speaker 5 (01:10:22):
There's fifty billionaires on Pomplish Island. Fifty fifty billion.
Speaker 3 (01:10:28):
Wow, billion dollars is a stupid amount of money. It's
even hard to wrap your your head around how much
money that really is.
Speaker 5 (01:10:36):
It is an absurd amount of seen amount of money billionaires.
Speaker 6 (01:10:42):
It's very crazy.
Speaker 7 (01:10:43):
So so it's kind of interesting. We're seeing this Gary
Keller from Keller Williams, the Keller and Keller Williams. Gary
the owner of the company and the founder. He just
came out with his national address as to what's going
to happen in the real estate market this year State
(01:11:04):
of the Union, State of the Union address of what's
happening in real estate. And it's kind of interesting because
you know, Gary runs now the number one brokerage in
the country. There's about one hundred and ninety thousand Keller
Williams agents in the country right now at a one
point five to five million, So he's more than ten
percent of everybody that's out there.
Speaker 2 (01:11:23):
Right.
Speaker 7 (01:11:23):
So Gary is saying that this year is going to
be flat, if not negative. He thinks the year after this,
twenty twenty six, is going to be much.
Speaker 6 (01:11:33):
Of the same nationally. Nationally, we're talking not locally.
Speaker 7 (01:11:37):
And he thinks that sales, our sales last year were
the slowest and nine years, and he thinks we're going
to be kind of there national still national sales because
so like it is, it is local, but the trends
most of the stuff happening across the country, there aren't many.
(01:11:58):
Everybody kind of is going through this thing. You don't
really have any real pockets. They're just exploding right now
while everybody else is slowing down.
Speaker 5 (01:12:05):
Little gym's, little honey yeahs.
Speaker 7 (01:12:07):
And I'm sure there are places there, but not big
enough to be of any significance. And like neighborhood by neighborhood,
you might have great stuff happening, But.
Speaker 3 (01:12:16):
So the the the magnet that was Tennessee in North
and South Carolina and Texas, that's not quite as powerful
a magnet as it was, say a year or two ago.
Speaker 2 (01:12:30):
I don't know why changed.
Speaker 5 (01:12:32):
I don't either.
Speaker 7 (01:12:32):
Uh, Texas is from what I understand, like Florida Texas.
Florida blows down a lot, right, Florida and Texas slowed
down a lot.
Speaker 2 (01:12:40):
Now.
Speaker 7 (01:12:41):
I still hear that Tennessee because I talked to agents
up there, because replacing families with agents up in those areas.
For example, Janet and Sean are moving from Port Saint Lucy.
I'm gonna be help and sell in their house later
this month, and they're moving to Tennessee. Now, we got
them to two agents because Tennessee's big state and very long,
(01:13:03):
not so tall, not so tall.
Speaker 2 (01:13:05):
But very long.
Speaker 7 (01:13:06):
So we had to decide. They had to decide what
part of the state they were living in because they
had never really been up there that much. So they
picked two regions, but they were very different. So I
had to place them with two separate agents that covered
each area specifically. And they love both agents, but they
decided to move to one part of the state, so
(01:13:27):
they let the other agent go so they could focus
on the one area. They're telling me that Tennessee is
still doing pretty well. I hear North Carolina overall is
doing well. Georgia is still strong. Overall, like speaking overall, now,
is it on fire where you're getting double digit appreciation
and stuff? No, I'm not saying that, but they're staying
(01:13:50):
consistently active right now. They don't have the crazy inventory
that's growing in our areas from whatever.
Speaker 2 (01:13:56):
It's time. Like the last segment in this one, we're
talking doing a lot of prediction, and you know, like
we can see so many different reasons and you know,
attitude towards things, and it just hits home for me.
It's hitting home right now that it's really just like
especially for us, it's it's an individual decision, right, It's
a lifestyle decision for you and your family. And most
(01:14:17):
of the people we're talking to are not predicting markets.
They're not making like investment style decisions. Of course, it's
a home, it's an investment. I get all that, but
it's really just like is this timing right for me
and my family? Is what we want to do? Like
you said, people are ejecting or parachute or whatever, like
I got to get out of South Florida, the traffic,
the taxes, like the price, whatever it is. But it's
(01:14:40):
really an individual thing and not so much like hey,
you know what Tennessee is going to be really hot
in the next ten years. I'm going to Tennessee. So
I'm going to Tennessee because we're leaving Florida. We love
this part of the country. That's where we're going. Or
I'm going from Palm Beach to Saint Lucie County or
you know something something, I'm going over to the well.
Speaker 7 (01:14:58):
They decided to move from war wherever they moved to
to Florida, right, they made that big life change because
they wanted that lifestyle at the time.
Speaker 6 (01:15:05):
I want to move to Florida. I love it, you know,
I like the area.
Speaker 7 (01:15:08):
Back then it was less expensive, you know, it was
more affordable climb, so people climb it. There were just
so many positives and that that's why people are leaving
to other areas.
Speaker 2 (01:15:18):
And is now a good time? Usually that the answer
to that question is if you're able to do it,
then it's a good time. Like if you want to
do it and you're able to do it, Like can
you sell your home in a specific amount of time?
If the answer that is yes, for you know, for
a number that you like, is the answer that is yes,
it's a good time. Can you buy where you want
(01:15:38):
to buy with either the financing or the cash or
whatever it is. Are you able to do that now?
And do you want to do that now? Well, then
it's a good time, right, And so what we really
but the day to day thing that we're doing for people, Jim,
is just helping them answer the question of can you
do what you want to do. We're not saying, hey,
you should be doing this, like no, it's like you
(01:15:59):
want to do this. We can help you with the
part of are you able to execute the plan that
you have in mind right? Or are we able to
get you into position where when the time is right,
like you want to do it, you can do it.
When do you do it? That's fine? But get all
everything else in place. And so it's hitting home for
me just like when we're talking about this because I
(01:16:19):
kind of like the prediction thing. I mean, we're just
talking about it, right, we have to fill up two
hours of show. It's interesting to us to kind of say,
what's going on in the markets, what's happening with interest rates?
That's interesting, but it's not really the thing that's driving
your movements.
Speaker 7 (01:16:36):
Or your decisions the people unless you're an investor, Okay,
if you're an investor, that's completely different. That's business right. Now,
you're talking business right. And then the house becomes a widget, right,
the property becomes the widget. Am I going to make
money off this widget? Am I not going to make
money off this widget? But if you're just a regular
person that needs a place to live, you want the
(01:16:57):
tax benefit.
Speaker 2 (01:16:58):
You don't even have to be regularly irregular.
Speaker 7 (01:17:00):
Yeah, you could be irregular person, right, But if you're
just looking for a place where you want to stay
and you own it and you get appreciation over time,
you know, and everything, those are really the bigger considerations.
But the first question has to be can I do it?
Can I see a path to get there it, is
it affordable for me? And can I do it? And
(01:17:22):
then that then you decide do I want to do it?
Speaker 2 (01:17:24):
First?
Speaker 6 (01:17:24):
Can I do it?
Speaker 7 (01:17:25):
Then if the answer is yes, then do I want
to That'll be the next question. Just asking this speaking
about questions about the market. Might this whole week, I've
been reading and hearing that the interest rates went down significantly,
and I was like when I when I heard it
(01:17:46):
on the State of the Union address, I actually, because
I've been so busy, I haven't really kept up that much.
So when I heard it in the State of Union dress,
I just stopped and I spent like twenty minutes googling
to find out what I had missed on interest rates,
and I could find nothing. The Freddie Mack report looked
the same. It didn't, you know, change dramatically. The T
bill moved around a little bit, but not the tenured
(01:18:07):
Treasure Bill, which really war sets. I didn't see huge drop.
I did see you go from four point five to
four point two, but now we're up to four point
three again. So it's just been bouncing around, but nothing
that I saw that would make the headlines I saw.
So I heard it on the State of the Union.
Then the next couple days, h take advantage of the
(01:18:28):
low interest rates, the low's interest rates we've had in
nine years, and take advantage of this and rEFInd your
house and grab the equity from your ome. And Forbes
was talking about a USA today, was talking about all
these people saying the drop of interest rates, take advantage
drop an interest rates.
Speaker 2 (01:18:44):
So that's so bad.
Speaker 7 (01:18:45):
I called up Mike during the week and I'm like, Mike,
what am I missing here? And Mike was like, let
me check and he was click clocking on the computer
and we didn't find anything. Right, I mean, so are
people calling you up based on these articles saying, hey,
I hear it's trying to get a REFI.
Speaker 2 (01:19:01):
I think, no, no, I'm not getting REFI calls. Okay,
but people I have preapproved Johnny's you know, just mentioned
something this morning like, hey, are what's happening with rates?
Speaker 3 (01:19:12):
Right?
Speaker 2 (01:19:13):
And so because I want to refresh on my app, Yeah,
he wants his app to be as accurate as possible.
And of course, and I said this to you, Jim,
I said, well, like this movement even it's like, okay,
so we're down what Freddy Mack came out, it went
from last week, so we definitely have been on a
every week. It's slightly down from the week.
Speaker 6 (01:19:33):
Just seven weeks in a row that we've been down.
Speaker 7 (01:19:35):
So our peak was for the year, right, our peak
was January sixteenth, and that was seven oh four. Yeah,
and now today we're at six sixty three, so we're
down point four. Right, We're down basically point four, which
is better than.
Speaker 2 (01:19:52):
Going up almost, yes, better than going up that peak.
But we'd like we're where we were in December October
where we were for most of twenty twenty four. And
so I'll tell you interest. So what I what I
said to you, Jim, is like, it's really like this
type of movement, this this subtle movement is only really
critical if you're considering locking in your loan or not,
(01:20:16):
which means you're in contract and you have a sale
and you're you've been floating, you didn't lock it at
one point, and so now you're like, hey, is today
the day to lock? Or is this week the week
to lock? Other than that, you're just kind of like
right in the market. It's like if they say rates
are down this week compared to last, does that mean Okay,
now I'm gonna call Mike and do my pre approve
on I'm gonna get out there shopping because the rates
(01:20:36):
are down. And it's like, well, no, because it could
be up next week. The exact sit where we could
be right where we were two weeks ago, right, And
that's easy to like, I wouldn't predict it with any certainty,
but it's certainly possible, Right, It's definitely possible that today's
rate has no bearing on what your rate is going
to be other than the general zone we're in a
general zone unless you're locking. Yeah, but if you're in
(01:20:57):
contract and you said, I've been floating because I knew
next week is gonna be good, and maybe maybe you
have the ability to predict that. Right, I don't, but
maybe you do. And you said next week, Mike, But
do we do it on Wednesday or Thursday? Okay, Well,
there's a big report coming out Wednesday, or hey there's
the last week. There was the presidential address, or here's
a jobs report came out on Friday. So if you're
(01:21:18):
watching it that closely, But it only matters if you're
ready to pull a tray on a lock or not.
So no, there hasn't been any crazy movement that has
REFI people calling me like, who were you know, maybe
they locked in. Let's say your rate of seven percent? Mm,
should you be refinancing at six and a half.
Speaker 6 (01:21:37):
Well that's what I wanted to ask you about.
Speaker 7 (01:21:39):
Let's just go over the numbers against that people understand
so they don't get taken advantage of by ski sketchy
mortgage people saying yeah, you know you can go from
seven to six point five? Lock it in, right, And
you're thinking, yeah, yeah, I'm gonna say, if I have
a point, you're all excited and you're paying thousands and
thousands in mortgage refive costs to save twenty five bucks
(01:22:02):
a month, right, So how how how do people make
a decision of financial decision on whether or not the
refi makes sense financially?
Speaker 2 (01:22:12):
So my my approach to that refinance analysis, and I
wish I had like, hey, if it's if it's one
percent better this, But there's really there's two approaches. Number one,
what is your goal in the refinance? Is your goal
to just lower your monthly payment?
Speaker 7 (01:22:28):
Yeah, So let's just not talk about equity because we're
going to talk about that different ok Okay, So let's
just say I want to refi to get a lower
rate and save money.
Speaker 6 (01:22:36):
I don't want to out of the house.
Speaker 2 (01:22:38):
So you can't. You're not you don't refy to get
a lower rate and save money, right, because you're if
you're just refinancing. If you when you say save money,
does it mean lower your monthly payment? Yeah?
Speaker 7 (01:22:51):
So let's say that I'm paying seven and a quarter
and now it is six percent. I could refi at
six percent, right, and my payment will drop.
Speaker 6 (01:23:02):
I'm making it up two hundred and fifty dollars a month.
Speaker 2 (01:23:04):
So I guess my category of save money is two things.
Do you want to lower your monthly payment or do
you want to pay the least amount of interest over
the remaining life for your loan?
Speaker 6 (01:23:12):
Right, because then you're going to talk about your starting
over again.
Speaker 2 (01:23:15):
Yeah, like long term savings. I don't want to pay interest.
I therefore I want the lowest three or it goes
just need my monthly slower.
Speaker 7 (01:23:21):
Because you're bouncing around, So let's go step by step,
so people really kind of understand this, right, So let's
say that I had it. I've been in my loan
for twenty for seven years, and I'm at seven and
a quarter Okay, so I've had twenty three years left
on my thirty year loan, right, I'm at seven a
quarter percent, but now I can refly to six percent. Yes, okay,
(01:23:44):
tell me the process. I call you up and go, hey, Mike,
I'm thinking of doing a refine and I want to
save money.
Speaker 5 (01:23:52):
Okay.
Speaker 7 (01:23:52):
I'm saying it that way because I know you have
two answers to this. I want to save money. So
then you would say, well, what kind of money do
you want to say?
Speaker 2 (01:24:00):
Do you want do you need? Is there is your
primary goal to lower your monthly payment, Like is the
budget tight and you just you need to get some
space for other bills or whatever. You just need your
mortgage pay to be as low as possible, let's save.
Speaker 7 (01:24:11):
My answer is because there's two answers that of the
easy answer would be yes, I just want to save
money on my monthly mortgage payment. But what happens my
answer is I just don't. I want to get the
best deal in my house, and I want to save
the most money possible. I could afford the payment I
have now, but I just want to save the most
money I can on my house.
Speaker 2 (01:24:30):
So if you want to save money over the long term,
so when you refinance, typically you are you want the
lowest interest rate possible. And I would say, if your
interest is saving money over the long term, you want
the shortest. You want to pay that loan off as
quickly as possible. So your analysis should be something like, Okay,
I can afford this amount of money. If I apply
(01:24:53):
that amount of money to my current loan, how quickly
will I pay off my loan? How much interest am
I going to pay over that period of time? Versus
the refinance if you what's that payment going to be
and if you pay that off over the term of
the loan. Right, So basically let's just let me back up,
pay off your continue to pay your current loan at
(01:25:14):
whatever the mortgage payment is compared to the new refinance loan.
How much money are you going to save? Serain scenario
eight a scenario B over the long term, right, because
starting a new thirty year loan when you have twenty
three years left, the interest rate has to the gap
on the industry has to be enough so that you're
going to pay less interest on the thirty year loan
than you would on the twenty three remain. So long
(01:25:38):
term analysis, you need a big enough gap reduction and
interest rate so that the new thirty year overall total
payments principle and interest is less than the remaining on
your currently you and.
Speaker 5 (01:25:49):
You got to incorporate the cost of the loan too
in that equation.
Speaker 2 (01:25:52):
And typically you are increasing your principal balance because you're
not going to come out of pocket for those costs.
You're just going to roll it into the new loan.
So have loan a that has a you know, principal
bounce of three hundred thousand, you're going to pay that
off over the next twenty three years. Versus loan b
which has a principal bounce of three hundred and ten thousand,
that are going to pay off over thirty years. So
(01:26:13):
you really need a significant difference in interest rate in
order to make that. So I would say half a point,
no one point, no one and a half, maybe two points,
you're entering that that zone. So if your goal is
to pay the least amount of interest of a life alone,
you need a pretty big gap on your interest rate.
If your goal is to simply reduce your payment, right
the budget is tight, I just I gotta maybe cancel
(01:26:35):
Mortgane insurance. I guess I need my monthly payment to
go down. Then it's less of a gap required on
the interest rate because you're stretching your payment out over
a new thirty years, so you get kind of a
fresh start a lower payment.
Speaker 7 (01:26:50):
So when we used to do the show with the
old mortgage broker back in twenty thirteen, twenty fourteen with
Josh Right, So when we used to do that, what
we used to always say was we had like this
mathematical formula for refi because it was really there were
a lot of good moments back then to refy, but
we also saw people getting ripped off a lot. So
(01:27:11):
we were trying to explain mathematically how to make some
quick decisions. So what we would do is, let's say
that let's say that it was costing you six thousand
dollars to refy the house, but you were saving one
hundred dollars a month on your mortgage payment, but it
was costing you six thousand to save that one hundred yea,
(01:27:32):
So we would say so that means it would take
you five years for you to break even on the
refi from the savings you're getting for the cost to
do the refi would take you five years. And we
used to say that if it was like twenty four months,
maybe thirty six months, that might be something you want
to consider. But anything over that probably don't want to
(01:27:55):
do it. It's probably not enough of the savings. And
I'm just using that is that formulough were off on that.
Speaker 2 (01:28:02):
No, that's part of the analysis. I use that a lot,
that type of break even math when I'm considering, like
when you're just doing your regular loan, do you want
to pay money to buy a lower interest rate. So
discount points or pay points for your rate. That one
is a pretty valid application of that analysis, right, which is, okay, Johnny,
give me five thousand dollars today, I'm gonna give you,
(01:28:23):
you know, one hundred dollars a month back because by
reducing your payment. So it's going to take you fifty
months to do that. So then how long is this
loan that we're talking about gonna live? Is fifty months?
Is you're going to be in this home and you're
gonna not refinance this loan again, you're basically gonna have
this loan longer than that break even period. Then yeah,
it was a good decision, right, because you're essentially you're
in the red up to the break even point and
(01:28:45):
then you're in the black. And then the longer the
loan lives, more in the black you get, the better
the decision it was. So I like that when you're
talking about paying points about it. I right, when it
comes to refinancing, you can do that analysis and say, okay,
well we're going to tack on ten thousand dollars of
principle to your loan. It's going to cost you ten
thousand dollars to do this refinance or five thousand whatever
it is, and you can do the same thing and
(01:29:06):
your monthly payment is lowering by one hundred dollars. So
you can do that math, and I can probably make
a convincing argument that hey, look this makes sense, right
we got a twenty four month break even, that definitely
you should be refinancing. But my brain doesn't allow that
type of analysis as the deciding factor, right, So, because
(01:29:26):
I can really then say it, but here's what you're
paying over the thirty years versus your current loan, and
here's where you really break even. And I'm telling you
if you refinance again, like you're digging in your home.
Speaker 7 (01:29:37):
From that original math that we were talking about, we
weren't considering how long you had the first loan. Yeah, right,
So if you only had the first loan for two years,
it's probably a much better idea to do the REFI. Then,
if you had the loan for ten years already and
you're going back into a thirty year loan that you're
basically paying for another you're adding on ten years to
(01:29:58):
the loan.
Speaker 2 (01:29:59):
I think there's there's an interest rate gap that achieves
both goals. Lower the monthly payment and paying less over
the life of the loan, right, the least amount of
interest over the life alone, And that's somewhere approaching two percent. Right,
So if you're at seven percent now and you're not desperate,
you just want to make a wise financial choice, you
(01:30:20):
need to be something like five percent to kind of
achieve both goals of monthly savings and long term savings.
So I would say we're not there for most scenarios,
but there are other scenarios, like people may just they
may forget about the financial novel. I just have to
get my monthly payment down, right, for whatever reason, just
(01:30:42):
the budget is so tight, I have to get the
payment down. Refinance is one way to do that, because
you're starting a new loan, new thirty year term. Sometimes
it's a cash out refinance, in which case you're not
just getting the new loan, and that's going to cost you,
you know, you're basically consolidating debt. That's the people who
are in a position where like they've got credit card
(01:31:03):
balances that are you know, what are interest rates on
cards these days, like high twenties, right, Like they could
be in the high twenties, and it's I mean it's
I don't know how that is allowed, but it is.
I think, yeah, twenty nine percent, like and you know,
you're like your retail, like your your department stores will
have cards that are in that zone. And you're just
(01:31:27):
your monthly expenses are too high and certainly and you
have equity in your home that you can tap into
and you can replace that thirty percent with that's like
you know, you're treading water, you're like about to drive.
You can replace it with a you know, six percent
or six and a half or seven percent, whatever it is.
And some people are in that scenario and it would
(01:31:49):
make sense because they just have to reduce their monthly budget.
And so yes, you're tapping into your equity. Probably not
the wisest financial choice in the long term, but it
allows you to keep you ahead above water.
Speaker 7 (01:32:00):
I want to talk about this concept of tapping into
your equity because I saw report yesterday. Now I haven't
done the research, so I just saw YouTube video on it.
The guy that does it, I'll mention it's Reventure Consulting,
and they do.
Speaker 2 (01:32:16):
They have a.
Speaker 6 (01:32:17):
Software program that analyzes what's going on in the market
for real estate activity. Real Wonky stats like, I like
the stuff. I like like saturation points and stuff like that.
Speaker 7 (01:32:29):
And what he's saying is is that there's a million
homes right now that are FHA financed, where they're in
some type of forbearance where the federal government, I haven't
checked this out yet, okay, but where the federal government
is actually basically supple supplementing the mortgage payments for these
(01:32:50):
subprime bar wherres. There's a million FAHA bars that are
active right now that are in trouble with their loan,
that are de linked with their loan, a million of
them that had the five to eighty credit score or
the five ninety credit score, and those ones are in
trouble right And they're saying that there's four hundred thousand
of those homes that should be on the market right now.
(01:33:12):
And I was a little surprised because four hundred thousand.
I know that our normal sales are about six million
a year of sales in the United States for housing
is about six million transactions a year. So four hundred
thousand is a big chunk of six hundred thousand, right,
That comes out to eight percent something like that, Yeah,
(01:33:34):
seven eight percent, So that's a big chunk. So it
would be very different if those if we had eight
percent more properties, the values win and went up as
fast when we were seeing those increases because we would
have had more inventory. Right, So he's saying that we're
on the verge of having some type of financial meltdown
(01:33:54):
in the mortgage stuff. I think that's a little a
little out there. That part I think is a little
too scary click baity. But if he's right about these
people having problems, right, financial problems, that's what I want
to get into right now, just real quick. There's a
lot of people out there that are having problems with
their credit cards and starting to get overwhelmed and things
(01:34:15):
like that. And maybe you do have to tap into
your house for equity. We're not a show that tells you, Hey,
you want to go on vacation, go take the money
out of your house. You want to buy a boat,
go take money out of your house like a country
what I did back in the day, remember country, and
tell you how to use your money in all these
crazy ways from your house.
Speaker 2 (01:34:33):
Right.
Speaker 7 (01:34:34):
But when you get into very lean times, sometimes that
equity of the house that you built up over time,
you do need to tap into it. In order to
just get you through the rough times. But here's the mistake,
and this is the tip I want to leave with
people today. Here's the big mistake that I get when
I get these calls. Right, Hey, Jim, I want to
(01:34:56):
do a REFI I'm in trouble with my house. I
got to call him this. About four weeks ago, the
lady called me. She hasn't really been making her payment.
She's very behind on her payment.
Speaker 2 (01:35:06):
Her mortgage payments.
Speaker 7 (01:35:07):
Yeah, because what she did was she was paying the
principal and interest but not the ESCRO payment. Okay, but
that doesn't count as a full payment, so they were
still dinging her as if she was missing payments. Her
attitude is, well, I was paying the bank, you know,
I'm giving them their principal and interest. I'm like, no,
your contract says that you're supposed to give them the
escrow too, and you can't uti latterly just decide I'm
(01:35:29):
not paying the.
Speaker 2 (01:35:30):
ESCRO this month. You can't just decide that on your own, right.
Speaker 7 (01:35:33):
But in her mind she thought that that was all
legitimate because the bank was being paid their interest and
their principal every single month. Yeah, and I think so,
So what happened was she called up and she has
equity in the house, and she says, I want to
tap the equity to get myself out of trouble. And
of course what we know is if you miss, if
you're thirty days laid on a payment or longer, you
(01:35:57):
can't get a refine, right, you really can't get you
got to refi at that point you have to wait
for twelve.
Speaker 2 (01:36:02):
Yeah, there's a little bit of nuance. So it depends
on whether it's like Fanny Freddie FJA whatever. So there's
a little bit. Let's just say this, if you have
a mortgage lead, a thirty day mortgage late in the
last twelve months, it is going to seriously hinder your
ability to get approved for a new loan. And it
could be that like one thirty days allowed, but a
sixty days not. So there's nuance there depending on the program, Jim.
(01:36:25):
But essentially, if you got laid on your mortgage payment
within the last year you got you it's a challenging
road for you if you want to get approved for
a new loan.
Speaker 7 (01:36:33):
And that to me is so depressing for me, feeling
bad for the customer. It's like, oh my gosh, you
just one payment late, right seven months ago, and now
you can't tap this money that you've worked very hard
to buy down, Like that equity is yours.
Speaker 2 (01:36:49):
Well there's now you can't touch it.
Speaker 7 (01:36:52):
But you can't touch it and you need it, and
it's so frustrating when you're in that situation. When I
talk to those people, it's really really frustrating. But how
when you're saying there is a way, what do you
sell the house?
Speaker 2 (01:37:03):
Oh?
Speaker 7 (01:37:04):
Yeah, right, the only way what you have that house,
which is what I had the conversation with that lady.
I say, like, the best thing you should do, I said,
the best thing you should do is get caught up
on your payments. I go catch up on your payments.
If you can't do that, then the best thing to
do is to sell the house. And Mike's right, And
the reason why is at least that way, you're keeping
(01:37:25):
the equity that you work so hard to get. You've
been paying down that mortgage all those years, you're reducing
your principle. The house was growing in value because you
were making your payments on time and paying your taxes
and your insurance. So you deserve to have that money.
But when you become late. What happens is the banks
start taking out all of these what I call garbage fees,
(01:37:48):
and they just start stripping your equity out more and
more and more. So if you get in trouble like that,
you can't tap into the equity. My first question is
my first thing is beg bar and steal from friends, families,
whoever you have to to get back into compliance with
your mortgage. Do whatever you have to do, even have
to borrow money from friends, just to get through that.
(01:38:11):
And then figure out a way to refi later or
sell the house and keep as much of the equities
you can and don't let the bank take it from you. So,
if you're in trouble with your mortgage or in trouble
with your bills and you're thinking I want to tap
my mortgage in order to help out with the other
issues in your life, don't miss your mortgage payment. Don't
(01:38:32):
miss your mortgage payment before you do what you have
to deal with and give us a call and we'll
give you the advice that we have for free.
Speaker 6 (01:38:40):
Yeah, we're going to give you. You know, we'll work
that out with you.
Speaker 2 (01:38:43):
Mcgley posted on here she goes that's what we did
a helock a year ago, and it's making me think, like,
if you can see some trouble, or maybe if you can't,
maybe you just want to be prepared. If you're in
good standing now and your income is right and your
credit is right, there's no really no harm in getting
(01:39:05):
approved for a home equity line of credit. And it's
just like a big fat credit card. You don't have
to use it, or you can use it pay it back,
but it could be there as a backstop for troubled
you know, trouble waters ahead, and so you can get
out in front of that potentially and just have that
there if you need it. Now, if you're the type
(01:39:26):
of person that likes to go to the hard rock
right or the you know, the dog track, like, you
could get yourself in trouble and maybe that boat that
you had your eye on maybe oh wow, I can't
do it. So you kind of need to like know
yourself a little bit. Yeah, but that could be something
where if the things are right, but you know, you know,
maybe you're in a maybe you're a federal employee and
you don't know if you're gonna have a job in
(01:39:46):
six months or not. Like maybe it's a time to
at least have some sort of backup plan with access
to money, access to your equity while you can get
approved for it. So I'm happy to talk to people
about that, even if it's like, hey, go to your
credit union to get that out.
Speaker 7 (01:40:01):
Yeah, and that'll that'll be the answer. A lot of times,
Michael say, hey, the best thing for you is a
home equity line of credit. I'm not the best person
to do that. You should go here, here, or hear.
And that's what's great about this team is that we're
going to give you the device you need, not what
we want to do, what you need.
Speaker 10 (01:40:16):
If you've got five or ten thousand dollars in credit
card debt, could you use a heelock to pay that
off so that you can pay five six seven percent
interest on a helock versus twenty nine percent on a
credit card.
Speaker 7 (01:40:27):
Yes, yes, yeah, And so the helock is basically like getting,
like Mike said, a revolving credit card based on the
equity or a home and if you don't use it,
you don't have to pay anything and you'll only use
what you pay for. So if you have a forty
thousand dollars line of credit, but you've only used five thousand,
you're only paying the interest on the five thousand, and
(01:40:49):
then if you pay that down, you pay less less
interest and your payment gets lower, and if you pay
it off completely, you're down to nothing again. You don't
have to pay anything now.
Speaker 2 (01:40:58):
And a lot of times the home equity doesn't call
you any money to do so as long as if
you can get approved for it, it's not a bad
thing to set up. I just, you know, I try
to be cautious with this stuff, like financially responsible. So
if you're in if you've built that that type of
credit card debt, is that because of spending habits or
is it because like maybe you just had some change
in your life that call you had to dip into
(01:41:18):
something to pay the bills. So you kind of have
to really like analyze yourself a little bit. And because
this will give you an opportunity just like anytime you
do a debt consolidation cash out, like nobody's forcing you
to cut up those credit cards or cancel those cards, right,
so you you you basically open up the opportunity to
re establish, you know, dig yourself a little bit deeper
right in the death thing. So you do have to,
(01:41:39):
you know, think about that.
Speaker 5 (01:41:40):
You got to be disciplined. Does it affect the.
Speaker 3 (01:41:45):
Outlook of debt to income even though it's different, So
the debt's going to remain the same, but on the
credit card versus the he lock, is it viewed differently
by the lender.
Speaker 2 (01:41:56):
It's not viewed differently as far like a risk assessment. No,
but definitely they're like, if you're talking about qualifying, like
a debt to income perspective, Yeah, whatever the payment is,
So I would say the payment is important to debt
to income if that's part of some analysis of getting approved, right,
So can you do the helock will depend on debt
(01:42:17):
to income? If you if you're trying to get you know,
a five hundred thousand dollars line of credit, right or
a fifty thousand dollars line of credit, whatever it is,
there's going to be some payment that the lender is estimating.
Speaker 6 (01:42:29):
Almost like student loan.
Speaker 2 (01:42:30):
It's like if you if you get a fifty thousand, okay,
well here's the max payment it could be we need
to make sure you qualify for your existing obligations plus
that potential payment. So that's just part of like can
you get approved for the home equity line. But as
far as analyzing whether you have a helock or a
credit card for any other type of loan application purposes, No,
there's no difference, is it?
Speaker 5 (01:42:50):
Is it wise though, so if you're massaging it a
little bit.
Speaker 3 (01:42:53):
Let's say let's say you're on the on the cusp
as far as your debt to income, and you have
you have five credit cards in your you know you're
you o all five pretty good amount and you're getting
hammered on your interest rates. Yes, you know your monthly
payment on all of them is pretty high. Again, just
trying to manipulate a little bit. I know it sounds weird,
but if you slide that into a helock, you're.
Speaker 2 (01:43:14):
To lower the mandatory obligation you are, so you're positioning changes.
And even if let's say that the new helock payment
it's three hundred fifty dollars a month, but you got
six hundred dollars of credit cards, well, you don't qualify
with a nine hundred and fifty dollars payment like the
combined So I'm going to force you to use some
of that helock money to pay off these revolving credit cards.
(01:43:36):
So that you qualify, yeah, right, so you can use
that as a tool to pay off one debt so
you qualify for the new one. A lot of people
do that with the car payment. I would really advise
against the debt consolidation and including any what I'll call
an installment loan, meaning you're like a car, you're paying
it off over a period of time because it's short term.
People do that like, Hey, I wanted to consolidate. I
(01:43:57):
got a seven hundred and fifty dollars car payment. I
could really, you know, use that money elsewhere. Okay, but
you're going to stretch out your three year loan now
to a new thirty year on your If budget is
the biggest concern, you can do it. It can be
a way to solve that issue, right, But it's not financially.
Speaker 7 (01:44:14):
It's like, and here's another thing I want to talk
about helock because this actually happened to me in real
life during the crisis. So I had a helock on
my house back in the day, and I had perfect
payment history on it and everything, and when the economy
got bad, the banks started cutting off the helock. They
can do that too, and they have the right to
(01:44:35):
do that. So they can cut you off at any time.
It sorry, yes, yeah, so I.
Speaker 2 (01:44:42):
Had when home value started dipping. These member these helocks
are basically a second position, so it's risky for them
if you default, they're have a hard time getting getting
their money back.
Speaker 7 (01:44:53):
And so what happened with me was when the economy
got bad, I only used a fraction of the helock money.
But I always thought that that could be my little
reserve if I needed, if I got in tough times.
And then it was taken away from me, and then
what happens is what was left, whatever balance I had left,
it turned into a hard second mortgage basically where you
(01:45:14):
couldn't do the revolving credit anymore. You owed whatever you owed.
Speaker 2 (01:45:18):
At that point, it converts to the payment and they.
Speaker 7 (01:45:21):
Do not give you any options, like hey, this is
what we're doing to you. And I called up as
like hey, what the heck's going on, They're like, sorry,
we have the right to do this, we're doing it.
So you gotta remember the helock. It isn't even though
you're getting the terms and everything when you're there. If
things get really bad nationally or for a specific bank,
(01:45:41):
they could take out these terms and change.
Speaker 3 (01:45:43):
I can understand shutting off the speaking and being like
you don't have accesses anymore, but then changing the terms
of how you pay it back like overnight kind of sucks.
Speaker 5 (01:45:51):
Yeah.
Speaker 2 (01:45:52):
Yeah, And it's so if I don't want to advocate
this as a roll all your dead into this new
he and max out the helock and then but your
your payment's really low because it's in its open you know,
it's in the draw phase, not the repayment phase, because
at any point they could cut off the draw phase
and put you into the repayment phase, and then you're
going to be kind of right back where you were
(01:46:13):
and there was financial difficulty, which is why you kind
of had to shift it to the helock in the
first place. So it's easy to like let get out
of control with it. And if it's too late, like
if you let's say you had a job change or
income reduced or whatever, well you may not even qualify
for the helock at that point. So it's if you're
going to do it, like do it while the times
are good, just so you have it. Don't use it though,
(01:46:37):
orn't consolidate. I don't know.
Speaker 7 (01:46:39):
So, so if anybody's out there and they're starting to
get into financial difficulties and they're not, and it's they
have real estate related questions revolving this, involving their other
debt plus real estate.
Speaker 2 (01:46:53):
Give us a call.
Speaker 7 (01:46:54):
We'll get you to the people that that will give
you good, honest advice. If me Mike can't do it,
we always got the law office a polycrasker, and we
have debt heelper dot com right, which is a free
nonprofit service that can do credit analysis for people and
help them. And it's a nonprofit group. So we'll get
(01:47:17):
you the resources you need if you have problems. Whatever
you do, don't stick your.
Speaker 2 (01:47:20):
Head in a hall.
Speaker 6 (01:47:21):
Yeah, get in trouble.
Speaker 7 (01:47:23):
And then when you're squeezed so much and you can't
breathe anymore because your head's in the hall, then you
pop up and go, hey, I need help, Because by
then we're probably not going to be able to.
Speaker 6 (01:47:32):
Get you all the help that was available to you earlier.
Speaker 7 (01:47:36):
The other thing I wanted to bring up today is,
and I'm a little depressed about this because I read this.
Speaker 2 (01:47:40):
Late last night.
Speaker 7 (01:47:42):
It looks like a lot of the student loan programs
that we've been using all of these years to help
hundreds and hundreds and hundreds of people throughout the years.
Speaker 2 (01:47:51):
Is going away?
Speaker 7 (01:47:51):
Oh no, And not only is it going away, but
if you're in the program, they're going to kick you
out of the program and make you go back to
the original thing. There don't end the show, I know, right,
So can you believe? So they're they're cutting back these programs.
It's called income driven repair, income driven repayment i I
(01:48:13):
d R or whatever, and a lot of those programs
are going away.
Speaker 2 (01:48:16):
Now, there was the waste, fraud and abuse. I don't I.
Speaker 6 (01:48:19):
Don't know, But in twenty twenty three, Biden.
Speaker 7 (01:48:24):
Broadened the broaden the ability for people to use these
programs because the federal government wouldn't the Supreme Court wouldn't
let him do what he wanted to do, so we
did it a different way. That became stripped out right away.
That program, the programs you created twenty twenty three.
Speaker 2 (01:48:40):
That went away. But I was like, okay, it does.
Speaker 7 (01:48:42):
I was thinking when that happened, no big deal, because
we've been using this program for since since we started
the show in twenty twelve, and all those programs still exists.
Speaker 2 (01:48:51):
No big deal. There's also kind of an assumption that now,
if you're in it, you're gonna like, right, take it
away at me. Right.
Speaker 7 (01:48:56):
But and now it looks like some of this stuff
is going to be taken away, and you know what
does that mean? They're going to take away from the
government people like the teachers and the firefighters and police
officers because you know there was a special program for
them for this. You know that that's how a lot
of these student loan programs were graded, were specifically.
Speaker 2 (01:49:15):
For common sublic But I don't know if that but I.
Speaker 7 (01:49:19):
Don't know what's going to happen with that. So uh,
we're going to keep an eye and see what happens
with that. But that's another resource that probably isn't going
to be available for people out there. And I almost
don't know if I want to put people into the
program because it's almost going to be like false hopes. Hey, congratulations,
she got into the program, and then six months later
they say that programs ended.
Speaker 3 (01:49:39):
Well, I guess what it really matters is if you
need it to qualify for a loan, get it qualify. Yeah,
that's then Mike says, whatever happens after you're the loan?
Speaker 2 (01:49:48):
Yeah, yeah, I mean it doesn't hurt to get into
it while it while it exists. But it's going to
be the different if you're like, you know, thirteen years
into your twenty year and you're you can see that
debt forgiveness at seven years away and then all of
a sudden that's gone myrtle, that would be that would
be tough.
Speaker 5 (01:50:05):
Hopefully that's not the case. Geez, yeah, where are you
reading this?
Speaker 7 (01:50:09):
It was your real article? Really, I don't remember last time.
I thought I saved it, but I didn't. And when
I read it, I read it like twice because I'm like,
I can't believe this.
Speaker 3 (01:50:17):
Well, and let's just hope we'll file this under one
of those things that they're just kind of speculating about
and it just catches some wind.
Speaker 5 (01:50:23):
It's a good headline and it doesn't actually come.
Speaker 2 (01:50:25):
Oh yeah, that's on advocacy, right, Like my people might
you know, start saying, wait a second, and we can't
let this happen. Right in Bulk and Mass.
Speaker 3 (01:50:34):
Thank you very much for being with us on a Saturday.
Always remember Florida Talk real Estate is the dot com
here one stop real estate shop. You need prose pros
when you are buying a home, selling a home. Stuck
with a home, you don't know what to do dealing
with things like refinancing, he locks, What do I do
for my future financially for me and my family? You
got to have professional guidance and if you need a
(01:50:55):
you need somebody. I'm telling you having a team of
prose is what you really need. Florida Talk real Estate
dot com offers it. Know what, use it, love it
share Mike Row the mortgage guy from the mortgage firm.
Speaker 2 (01:51:05):
Have a great weekend you too, Thanks everybody.
Speaker 5 (01:51:06):
Jimmy D jim Depola, Florida home Pros. I hope you
have a great weekend.
Speaker 2 (01:51:10):
Thank you. Happy South Florida everybody.
Speaker 5 (01:51:12):
JIMMYF enjoy your weekend. My brother as well. Buddy, We'll
talk to you next week. Thank you very much. Florida
Talk real Estate back at it next Saturday. See you then,
Navigating today's real estate market can be tricky. Want on
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.
Speaker 2 (00:31):
Here are your.
Speaker 1 (00:32):
Hosts, Jim Depola and Johnny c Live on real Radio.
Speaker 3 (00:36):
Yeah, good Saturday morning. Welcome to another edition of Florida
Talk real Estate. Thanks for being there. We got you
for two hours of infotainment. Beautiful thing I see out
there in ninety one one o one seven on the
old terrestrial radio. Thank you for being with us at
the gates. Of course we are worldwide with your free
download your iHeartRadio app, you could be listening anywhere, even
though like Ireland potentially. Thanks for doing just that.
Speaker 4 (00:58):
If Iri ire is that, that's just not the same.
It's not the numb yea. But I like where you're headed.
And of course we live stream on a Saturday as well.
You can find us Florida Talk real Estate on Facebook
and thank you if you're with us right up the
gates and on YouTube as well. That's Florida Top real
Estate LLC on YouTube, home of a ton of informational
(01:18):
chunk videos, plus a live stream every Saturday morning.
Speaker 5 (01:22):
Thanks for being with us. You can be a part
of the program.
Speaker 3 (01:24):
With a phone call as well eight seven seven nine
two seven six nine six nine. If you have questions, comments,
concerns in the world of real estate, you want to
dive into the conversation at hand, don't be shy, go
ahead and do just that. The first voice you'll hear
the melodious tones of our producer at Short and Jimovy,
my brother from another mother.
Speaker 2 (01:40):
I you be hey, heyo, and a good morning Johnny.
How are you?
Speaker 5 (01:43):
Has the family too, by the way, dude, everybody's awesome.
Speaker 3 (01:45):
They just it's been it's been a sick house for
a second though, but everybody's like back on board and
crushing it.
Speaker 5 (01:51):
You had the funk a little bit. There's a old something.
From what I understand, there's a funk going around. Oh yeah, and.
Speaker 3 (01:59):
In fact of my daughter differently than a fact with
my wife, and I've been like dodging, dodging the bullets
as best I can.
Speaker 5 (02:05):
Sorry, they were under the weather.
Speaker 3 (02:07):
From what I understand, like half my daughter's school has
been out like all last week too, So yeah, it's
a it's flowing around right.
Speaker 5 (02:14):
Well, you help to get better.
Speaker 3 (02:15):
Thank you very much, and you as well. Oh, I
appreciate you very much. Good to see as always, my dude,
and you as well. I am your old buddy, your
pal Johnny C. Let's get your starting lineup. There's Mike
grow the mortgage guy from the mortgage room. What's up,
my friend?
Speaker 2 (02:27):
Good morning? I too, I I re yeah, I get
it popped into my head. Maybe I was saying an ir,
but what is iri? This Jamaican for something?
Speaker 5 (02:37):
Yeah, and you're getting down the marriage you wanna lane?
Speaker 2 (02:40):
Oh well, I didn't mean to do that. That's all right, apologies.
Hey you got you a bunch of people perk up
when you're that happens. Actually, the show leading into this
is a all weeks Yeah you know medical education.
Speaker 3 (02:53):
Yeah yeah, yeah, yah, sure yeah, try to try to
defunct somebody.
Speaker 2 (02:57):
Well maybe those some of those fans stuck around.
Speaker 5 (02:59):
I wash our hopes and.
Speaker 2 (03:01):
You get some real estate educations what I'm.
Speaker 3 (03:02):
Talking about, and some entertainment as well. Hopefully we'll sprinkle
a little bit, try it. We sure will. Let's says,
look at Jimmy sprinkling it on.
Speaker 5 (03:12):
He's pretty liberal with it over there.
Speaker 2 (03:14):
Yeah, just reminded me of Chappelle. Right, but one of
his jokes from his like sprinkle some the cops, right,
some crack on.
Speaker 5 (03:23):
I think his eggs and cinnamon. I love it.
Speaker 3 (03:27):
Let's say good morning to our fearless leader. Thirteen plus
years now we've told you he runs a top producing
Calownias team. Kellowilliams Innovations, you find the Florida Home Prost
Team and Jim Topola.
Speaker 5 (03:36):
Jimmy d how you be.
Speaker 6 (03:38):
Hey, I'm doing good, guys, I'm doing good.
Speaker 2 (03:40):
Uh, that's the wrong energy, Jim. I know.
Speaker 7 (03:44):
It sounds weird. Against sounds like I got it to Mike,
there's some reason.
Speaker 3 (03:48):
Now you're going he got I got a hum in
my headphones too. I need to assume that. Yeah, we'll
just we just do what we gotta do.
Speaker 5 (03:55):
Yeah, we gotta just push it through Fisher Price, my
first radio station.
Speaker 6 (04:00):
But yeah, things are going good. It was a very
hectic week.
Speaker 7 (04:04):
A lot of frustrating things happened. I mean, we had
a lot of good things happen, but I just very
bumped out. We had two people who didn't close when
they were supposed to, and one of them is a
seller buyer.
Speaker 6 (04:17):
Oh and that's the worst of the worst.
Speaker 7 (04:19):
And the people were working with on the other side,
the buyer's agent, where the listing agent has just been horrible,
no communication. The agent's like totally clueless. The transaction coordinator
they hired is even worse than the agent. Usually, usually
if you have if you have like a newer agent,
(04:40):
if they're smart, they if they do, hire a transaction coordinator,
which basically just make sure all the contracts are done
correctly and everything the process is running smooth correctly. Yeah,
and mortgage companies have that, right, you have like loan
processors and things like that that kind of help you
walk the paperwork through. So anyway, this transaction court, usually
(05:03):
if you have an agent, that's a little less experience
because we all start out somewhere, right. Sure, if you
have a good transaction coordinator can smooth out a lot
of rough edges. But the transaction coordinator is just as
bad as the agent.
Speaker 2 (05:15):
They have to start somewhere too.
Speaker 7 (05:17):
And then yeah, but but both starting out together is
just a big mess.
Speaker 2 (05:21):
And then finally the.
Speaker 6 (05:22):
Mortgage company, I'm working with. Let me tell you something, Mike. Yeah,
you know when we.
Speaker 2 (05:27):
When we get am I going to get some props here? Yeah? Yeah,
well yeah I should have.
Speaker 7 (05:32):
I should have had them go through you also because
I was concerned. So when we take listings, what we
always do is ask the sellers to give us permission
to ask for a second opinion on the mortgage approval
if I see any red flags or even yellow flags,
to make sure that everything's good, because what you don't
(05:53):
want to do as the sellers put your house on
the market, take an offer. Then once you take the
and it's accepted, it goes active under contract, and then
if you don't close, it goes back on the market,
and it's actually listed with the words back on market, right,
So you don't. You try to avoid that as much
(06:13):
you can. It's not a deal killer or a death knell,
but it's not fun and it's something that you'd rather
not go through if you were the seller.
Speaker 5 (06:21):
No, if you're going to accept an offer, you want.
Speaker 2 (06:23):
To close it, and you want to close it.
Speaker 7 (06:26):
So with this one, what happened was is when I
called up the mortgage company, I was talking to the
broker of the company.
Speaker 6 (06:33):
The owner of the company.
Speaker 7 (06:34):
But when I called up and I said, Hey, let's
say the guy's name is Mike. I go, hey, Mike,
I'm calling about Mary Sue and John And they turned
in an offer. I'm the listing agent and they turned
it an offer. I have questions about their file. Well,
he literally is on the phone probably three minutes, click
clacking because he had no idea who Mary and John was.
(06:55):
Mary Sue and John was and was click clacking on
his computer to find the file. Maybe I'm a little
too tough on things, but that was like a little
caution flag right there because he had no idea who
these people were. So that told me, is this a
file where they're just another number like loan file number one, two, three, four,
(07:15):
or do they really know Mary Sue and John and
had had good conversations and make sure everything.
Speaker 2 (07:20):
He's going to find the file. It's the first time
he's ever looking at it. He's going to give it
a one minute review and then tell you it's good exactly.
Speaker 6 (07:27):
So when he was going click clack, and I said,
I go, have you do you have a relationship with
these buyers?
Speaker 2 (07:36):
Because he really.
Speaker 7 (07:37):
Couldn't tell me anything until you open up the phone,
he goes. He goes, I'm the broker of the whole company.
That was his answer, And I go, okay, great. Did
you work the file and know these people very well?
And he was like, I have my staff handling thing,
but I'm the owner of the company.
Speaker 6 (07:54):
I go okay, great, he click, hoops up. How can
I help you?
Speaker 2 (07:57):
Did you ask him who's the owner of the company?
That's I'd be like, yeah, but who's the owner?
Speaker 3 (08:02):
While you're looking real quick, just a quick question who owns?
Speaker 7 (08:06):
So then I started asking the normal questions, right, all
the questions that you would normally ask. So, what exactly
did you do? The first question I do is the
easy question that I lobb it. I give a softball
to the mortgage guy.
Speaker 2 (08:19):
Do you know these people?
Speaker 5 (08:21):
No?
Speaker 7 (08:21):
My first question, My first question is yeah. My first
question is is what exactly did you do to get
them qualified for the loan? Right now, that's a very
open diended question. It could be answered his way, which
is the really bad way, or it could be answered
Mike's way.
Speaker 2 (08:39):
Right.
Speaker 7 (08:39):
So his way was I did everything that was needed
to get the loan approved. Right, that's the answer with
an attitude saying it with an attitude yeah right, as
opposed to, oh, I'm really glad you asked that question.
We've done everything needed to do for this loan. And
then you rattle off all the things you do and say,
as long as the house in specs your house, like
(09:01):
throwing it back on the listing agent, as long as
your house suspects the appraises, you know they're good for
the money, right, And that's the right.
Speaker 2 (09:10):
Answer, right, But probably not enough detail or confidence inspired
you know, dialogue from him right, Like.
Speaker 6 (09:18):
He didn't have any of that.
Speaker 7 (09:20):
It's like, I did what was needed to qualify them
for the loan, and I'm the owner of the company
right now.
Speaker 2 (09:26):
Now.
Speaker 6 (09:26):
The other thing is is that usually they will tell
you what they did, what they did in order to
get that qualification. And what I always say when you
get qualified with Mike, I always tell my buyers, it's
so nice when you're qualified with Mike because he used
to be part of the underwriting department, which is the
final decision on when your loan gets cut. It isn't
(09:48):
up to the mortgage broker or the loan officer your
worker with. Really, it's the underwriting department making sure that
the loan officers doing the right thing, and that they're
going to be able to sell this loan to the
conforming groups of people that by these loans and everything.
So anyway, when I say, when you get qualified with Mike,
it's like having a cashiers check in your back pocket.
Speaker 7 (10:07):
You know you're good for the money. It's just whether
the house is going to match the financing. And that's
really nice to know when you're walking around you never
have to worry about can I ford this?
Speaker 2 (10:17):
You know? Am I going to be able to do this?
Speaker 7 (10:19):
Mike's got the app and if the app says yes,
you know, it's yes.
Speaker 2 (10:24):
You know.
Speaker 7 (10:24):
So anyway, then I had to start asking him questions,
did you look at the are they w two or
are they self employed? Is there any ten ninety nines evolved?
Is there any kind of commissions or tips or Uber
money or anything or lift money that has to be
recorded as part of the income. Are there more than
one person? Have you actually looked at their back end
(10:49):
in front end debt to income ratio and check their
credit report?
Speaker 2 (10:52):
Of course? And everything right?
Speaker 7 (10:53):
And ask all these questions, and he was just getting
angrier and angrier throughout the whole process. And then he's
like he got me off. He goes, look, I did
everything to need to do to get this loan, and
it was Desktop Underwritten, which is a computer system that
tells you whether or not the loan pursonally in a
quick review, whether or not it meets certain standards to
(11:15):
get the loan. And I said, well, let me ask
you this. Did you actually get the hard copy of
everything that you need tax transcripts, if needed, W two's
past stubs, bank receipts. Did you get everything you need
hard copy? Or did you just plug it into the
system because that's what the buyer told you they were making. No, no, no,
(11:37):
we did everything. We don't give the approval without that, Okay, great,
hung up. Wasn't real crazy about that situation, But we
also didn't have a lot of other options, and this
house has been on the market for a little bit
and these people needed to sell.
Speaker 2 (11:55):
He also didn't know. He just it's clear he didn't
know the answers to your question. So he's given you
like just kind of like broad strokes. It was just
like a month ago we had to show kind of
the similar topic. And I remember saying, like, when I
get that call number, one, I welcome the call, but
number two, I kind of take control of that conversation
because you shouldn't be having to ask me, are they
(12:16):
self employed? Are they w two? Do you have the like?
I should not be waiting for those questions. I should
give you the information that you need that demonstrates I
do know the file. If I don't know it, I'll say,
you know, Jim, I need to do a little bit
of dig I'm gonna talk to my staff. Let me
call back, just let me freshen up on I'm gonna
call you right back, and I'll tell you what what
(12:37):
the what the details are, right I would do that
if I wasn't. You know, maybe maybe he's got so
many clients and he does an initial five minute call
and then he says, you know, I'm going to hand
you off to my you know, my loan assistant or whatever.
They're going to get all your information. They're going to
tell you what documents they need. So there are some
teams that work that way, right, Like I might have
a five minute call and then hand it off to
(12:58):
a loan assystem. Right now, I don't do that. I
do the entire kind of intake interview. But that's my process, right,
But that makes that makes me very you know, I
have intimate knowledge of pretty much any client I'm working with,
and I've got a good memory for that stuff, so
I you know, if I like write it down and
I'm talking, I'll remember it.
Speaker 3 (13:16):
So Johnny, he does look at the front and the
back end, Yeah, of course, And typically the back end
is a little nicer.
Speaker 2 (13:23):
To look at. He's there's a lot more You have
more space in the back end, so it's a little
bit tighter up front, you know what I mean. So
it's it's you're the pro, yeah, but get the best
right here, trust me, guys with your big you know,
half a million dollar home purchase, right, but trust we trust.
(13:44):
But so yeah, you just there's just a way to
answer your questions without giving glossing over like I own
the company. Of course, I know what I'm doing, of course,
And you're like, but clearly you don't know. You don't
even know who we're talking about. You don't know anything
about him, just giving me like the the generic answer
that says yes, right, which is not confidence as buying.
(14:05):
So so now we're on our fourth and you accepted
the offer. Yeah, and not only did we a set
the offer.
Speaker 7 (14:12):
They passed the loan approval process where you you have
a certain deadline to say if you've got the loan
approval or not, which is one of the last steps
of the whole process, and you have a deadline to
let the sellers know if there's any kind of problem
so that the buyrus deposit is protected. And this agent,
(14:34):
they're a transaction coordinator, and the mortgage company never talk
to us on the day that the loan approval was due,
but they did call us the next day. Isn't that
nice of them. It's so nice of them to be
nice to give us the call ones because we were
calling them constantly without responses. Right, But they called us
the day after the loan approval, and what do you think?
(14:56):
They said, we can't get the loan and they didn't
care at all. They were not very concerned, and they
were saying, we think we're going to be able to
get the loan, but there was a problem with IRS
issues and that they're working on it. So we had
to go through an extension last week, which is really tough.
(15:17):
They didn't cause the whole tens on the closed date.
Because my sellers are kind of in a jam now, right,
and they want to yeah, and I told them that,
you know, I'm not the lawyer, but according to the contract,
if this deal does not close, and if they didn't extend,
they probably would have got their deposit back, but that
(15:38):
isn't the ultimate goal what they're trying to do. They're
trying to sell the house and close so they get
the next chapter of their life. So they decided to extend.
Speaker 2 (15:46):
Again.
Speaker 7 (15:47):
They never called us, not even once the rest of
the week, just to give us an update or anything.
So we're supposed to be closing next week, so we're
going to see what's going to happen with that. But
it was very frustrating. And then on top of that,
I had another deal fall apart. This is very unusual
for one of my sellers, and that deal fell apart
because the buyer couldn't get the conventional financing that they wanted,
(16:14):
even though they were an investor and they were going
to do either hard money or conventional financing, and they
couldn't get the conventional financing. But I thought they would
be able to get the hard money, which is a different,
non conforming type of loan. But when I talked to
their hard money lender. The hard money lender didn't want
to have anything to do with this buyer, even though
(16:35):
they originally gave me approval letter from this company, because
the buyer had done another deal with them, an investment deal,
and it was a total mess. So they said, we
don't want to work with that person anymore. Interesting that
one fell apart, so that one we had to put
back on market, and we're getting a lot of showings
and I think we'll sell it very quickly.
Speaker 6 (16:55):
But it's very frustrating when you have those weeks.
Speaker 7 (16:57):
And the reason why I'm bringing it up is not
to be a a w downer or something, but to
let you know, like real life stuff happens. You know,
this stuff happens. We always talk about the success stories,
and I don't want people to think that we're really
just shining them. You know that we tell you that, Yeah,
we tell you about this stuff that didn't go so well.
Speaker 2 (17:17):
Either.
Speaker 7 (17:17):
It doesn't mean that these things aren't going to be
resolved and everybody will be okay, but it's still frustrating, disappointing,
you know, and and and it happens in real life.
Speaker 2 (17:29):
It does happen. We do talk about We had that
one deal, Jim, that we worked on through all the years,
one deal where I had the buyers preapproved and then
it kind of went haywire between them. We weren't able
to close. But it was you know, basically additional debt.
But that's really I mean, I don't think we've ever
had one that. Like not saying every deal closes, but
they're If they're not closing, it's because of inspection, not
(17:53):
because the buyers can't get approved. But we don't have
a lot of them. That's why we don't talk about it.
Speaker 7 (17:59):
And and well, and there was one time, and to
be fair, it had nothing to do with Mike. Those yeah,
those they were young kids. So I always joke about
this when I'm sitting down with my virus presentation because
I use this as an example. One time, right, Mike
and I have been doing together eight years or something.
One time, right, But the kids they went out and
did kid things. They went out and bought stuff they
(18:19):
shouldn't have bought, and you know, kind of depleted their
bank accounts and raised up their credit card bills. So
all while we're waiting to close, and nobody had any
idea any of this was going on.
Speaker 5 (18:30):
I am, even after Mike tells them don't.
Speaker 2 (18:32):
Oh well, I'll tell you I I Probably one lesson
I learned there is to just kind of reiterate with people,
like your situation needs to remain stable. Like Johnny, you're
a great scenario, like you're kind of window shopping right now.
But you and I have had the conversation like, hey,
you know, I basically have you set up, but that
assumes you're making the same income, assumes your dad has
(18:53):
remained relatively stable, assumes that your credit is you know,
remaining stable. Nothing's going great and you know, wait a second,
we got to get a new car, or hey, I'm
finally going to get that jet ski that we've been
you know, looking for, or whatever it is, like you're
gonna say, Mike, hey can we do that? I think
you've even called me at some point and said, hey, Mike,
what about this change? Is this going to be an
issue for us or something? Right? I had one in
(19:16):
the last month, Jim, where they've you know, preapproved out
shopping using the app, talking to me back and forth,
back and forth. Finally get into contract. I call her
to kind of refresh, like, Okay, now we're in contract.
So the wheel is going to start turning on the
loan side, right, We're going to get the official loan
(19:37):
application sign everything. And she's like, oh, Mike, you know
what I forgot to tell you last week? I took
a new job. And I'm like, while your shopped, like
you're out like looking at homes, making offers and everything.
And luckily it was the same field. She actually got
a bump in her salary, so it wasn't a problem.
But that's the type of change that I want to
(19:59):
know about before it happens, so that I can give
you a little bit. You know, probably I would have
I would have said, like is it the same job,
the same money? Or I would have said can you
stick it out until we close and then like make
your life changes, right, let's not rock the boat type
of things.
Speaker 7 (20:15):
I think that's number four in our top ten list
of things not to do now that you're don't get along.
Speaker 2 (20:20):
We have that.
Speaker 7 (20:20):
We have that list, the top ten things not to
do now that your proof for long. One of them
is don't don't get a new job, switch your job,
lose your job, you know, don't do any of that
while you're waiting to close.
Speaker 2 (20:30):
After you've been approved for the long and she was
kind of like, oh my god, I didn't. I wanted to,
I didn't wasn't sure how to tell, like, and I'm like, well,
I'm glad you told me now, right, we're early. We're
not like past your loan approval. I'm not like doing
verifications that I'm gonna get one that says she no
longer works here, which I'll get, but I don't want
that to be a surprise, you know, for her prior employer. Right,
(20:51):
I'm glad you told me at this point. I wish
you told me before you did it, but well, sometimes
that stuff happens.
Speaker 6 (20:56):
Yeah, so so what happened with this one.
Speaker 2 (20:59):
We're gonna win.
Speaker 7 (21:00):
And see, I probably should have now that I felt
like I wanted to ask Mike to review this file
before we accepted the contract. But sometimes when you try
to do that in real life, you're afraid you might
end up losing the buyer out of it, because if
the mortgage person gets very upset, that's doing the loan
(21:23):
for the buyer, So they get very very upset. If
the listing side says we want a second review, a
lot of them get upset because you're afraid that we're
trying to switch and bait them and switch them over,
which you're not allowed to do under law. You can't
require a seller, cannot require a buyer to use a
certain lender.
Speaker 2 (21:42):
You're not allowed to do that.
Speaker 7 (21:44):
And the other thing is is that we don't poach, right,
we're just kind of echoes seller. Yeah, and we're we're
not poaching. The mic has never tried to do that
when we've had him do the second.
Speaker 2 (21:55):
And I think, Jim, you probably have done this. But
the way that if you were in that situation, the
way to present it to the buyer is something like, hey, listen,
and you're having trouble there, let me get a second
set of eyes on it from a professional that I
trust who actually knows what he's doing. And sometimes that
outcome is Okay, I see what they're looking at wrong.
(22:15):
Tell them to look at this, or point them to
this guideline or point them to this section of the
guidelines like they're just they're underwriter. It needs a different
angle on it. And that's your quickest path to close,
right point tech. You know, show them this, make this case,
and you'll be closing next week. So I'm not going
to do your loan, but I can help you maybe
(22:36):
spot the problem. So I've done that. I've done that
you know from time to time as well. So it's
not about like taking the business. It's about getting to
the finish line in the quickest way possible. So if
the quickest way is like, listen, I see what their
problem is, there's no way they're ever going to approve you.
But if we do it like, you know, this way,
or we take it this program, or we do this,
then you have an opportunity. Maybe that's the quickest way.
So you do have to switch up your lenders. But
(22:58):
it could also be that they're just miss reading a guide.
I mean, listen, underwriter that you say underwriter and they're
like infallible. No. Underwriters sometimes need to be pointed in
the right direction. Right. One of the advantage of working
with a you know, a direct lender like the mortgage
firm the company I work for, is I can talk
to the underwriter and I can go back and forth.
I have relationships with my underwriters. I have relationships with
(23:20):
the boss in underwriting. I have relationships with the boss
of the boss of underwriting. Right, So if there's a
complicated thing, and there's like some of the guidelines, there's
room for interpretation or what it's called underwriter discretion. And
so when if that's the case, and that's the scenario,
you just have to present this thing in a way
and kind of document it and kind of make your case.
(23:41):
And if you can convince the decision makers that that's
a solid case, you're going to get your you know,
you're gonna get over that problem. And that happens. That
happens a lot, but it happens with my file. Sometimes
I've got other loan originators who come to me for
advice and things like that. Maybe it's in pre approval stage,
they missed something and they're in the underwriting stage. But
(24:03):
like so it's not always super black and white. There's
sometimes gray areas, and so you know, underwriters can be
can look at things wrong right or and the end
should be able to be convinced otherwise.
Speaker 7 (24:18):
So you know, and another point to make on that
the underwriters know you, so they also know his reputation.
Reputation sometimes matters on a file liner. If you're in
a gray area, sometimes they'll lean a certain way based
on the reputation of the person presenting the information. So
having somebody like Mike in your corners like a really
(24:38):
big thing. I just did something recently where we were
competing on an offer for one of our buyers, and
the agent actually said in front of my buyers that
the reason why they accepted our offer is because they
knew who I was and my reputation and they knew
I was going to close, right.
Speaker 6 (24:56):
So that was like a really nice compliment. I was
like totally.
Speaker 7 (24:59):
I was totally and not expecting it because I didn't
know the agent, but they knew who I was, and
it's like, and they didn't say it until after we're
in contract. It's like, you know, they selected you because
of you. Yeah, And I was like wow. And I'm
not saying that for puffery. I'm saying sometimes it gives
you that little bit of it. She doesn't always, you know, yeah, Buffalo. Yeah, sofinitely,
(25:23):
if you're going to have a reputation, you want your
reputation to be that you're a professional who gets the
job done and not be talking about like I'm talking
about with this mortgage broker right now, about what an
attitude he has and how surly he is and he
doesn't perform. And by the way, he's on a fourth
co buyer and has only told us about one. So
he keeps switching out the names to get to love
(25:44):
him credit and he isn't telling us anything. So he's
not telling the title company, hey we switched out buyers
or anything.
Speaker 2 (25:51):
At least he's not giving up Yeah, yeah right, he's
do you have any other family members? Right help you
out on this?
Speaker 7 (25:58):
Does sound pretty confident about that, but there's a good highlighting.
He does sound coffee. It's going to close in case
the sellers are out here listening. Nothing's changed since we
talked yesterday. Okay, but it's just phrase frustrating one event
and talk about real life things that happen in real life,
you know, and how things don't always go through smooth.
(26:19):
We're gonna fix it, it'll get done, okay, but just
very frustrating with doing people that aren't as professional. I
do want to just give out one shout out before
we take a break.
Speaker 5 (26:28):
Well real quick.
Speaker 3 (26:29):
That's a good highlighting right there of why you need
to work with people that are great at what they do.
There's lots of people that are good at what they do.
There's a whole lot more that are not so good
at what they do. If you can find a resource
where you get people that are great at what they do,
you should cling to that. Floridatokrealestate dot com is just
that your one stop real estate shop. This is a
team of pros pros that do work cohesively together. You've
(26:51):
been listening for years. You've heard example after example. If
you're new to the show, let me tell you the
team at Florida Talk real Estate. This is the team
you need to vet first and foremost. And you're looking
to buy a home, sell a home, stuck with a home,
you don't know what to do. Anything that touches the
world of real estate. Remember Florida Talkrealestate dot Com. Know what,
use it, love it, share it.
Speaker 7 (27:09):
Thank you, Johnny, I appreciate that so much. I want
to give a shout out to Lisa and Kevin. Lisa
and Kevin are the ones that Kevin had the older
pickup truck. That's Mammy Dolphin. Everything is like has Mommy
Dolphin colors and he's like big Mommy Dolphin fan. And
Lisa's the what I call the force of nature. I
nictated her force of nature when I first met Lisa
(27:32):
and Kevin. This is about forty days ago. Fifty days ago.
They had listened to the show for a while, they
were fans. So I'm sitting down at their house and
Lisa's telling me how she already selected a brand new
construction home in a different part of the state, and
she already picked out the house she wanted to buy.
Plus she had a backup house in case that house
was gone by the time her house was sold, so
(27:54):
she had a backup house.
Speaker 6 (27:55):
Wow, yeah, I mean, yeah, exactly right.
Speaker 7 (27:58):
And I'm sitting at the dining room tab I'm hearing
all this and Kevin is silent as a mouse through
the whole thing. Wow right, So I finally turned that's
what I called for. It is at h So I
turned to Kevin and go, well, how do you feel
about all this? He goes, I'm just along for the ride, right.
Speaker 3 (28:15):
Right.
Speaker 7 (28:15):
Yeah, they're empty nesters and they're moving to a different
place where they want a new construction home, so they
have to worry about like increasing costs as they get
older and everything the smart stuff right there doing all
the smart way. Lisa, you know, has everything mapped out,
and Kevin goes, I don't really think we're going to
be able to make all this work, but if we can,
because it was really important that they got enough from
(28:36):
the sale of their home, because they were a seller
buyer to sell their home to get enough to buy
the other home cash. And that was like a really
big deal to them. And it wasn't going to be
like super easy, right we had we had to sell
their house at the upper limit in the neighborhood in
a slowing market. So anyway, Kevin wasn't sure the numbers
all work out. I was pretty confident everything would be okay.
(28:58):
I was a little worried at the higher number in
the neighborhood, but I knew we'd be close, right, So
we put the house on the market, sold it in
eight days, I think, right. We put it on the market,
sold eight days. We got a slowing market in the
slowing market, and there were several other houses very similar
(29:19):
to ours, similarly priced within two percent of our price,
and that had been on the market quite a long
time now. Lisa started that.
Speaker 6 (29:30):
Hoa community when the community was built where she sold
in Turtle Cove in West Palm, Okay, and so she's
been there twenty something years and she started you know,
she was part of the original HOA board, so she
knows everything about that community and everything a nice portability
and that, oh yeah, the portability was awesome on that
(29:50):
and she knows everybody in the neighborhood knows what's going
on because she has been such a you know, institution
as part of the neighborhood. So anyway, I just called him.
We closed. We closed on Monday.
Speaker 7 (30:06):
We closed this Monday, right, we were finally done on
this sale Monday. I called her to congratulate her on
Tuesday because she signed early, because she's the force of nature, right,
and she already found that we sold the house so
fast that she was able to buy the unit that
she wanted. So even though it took her two weeks
(30:27):
to stage the house before we put it on the market,
then we needed another eight days to get it on
the contract, we were still able to do it fast
enough that the developer hadn't sold the unit she wanted, right,
So she got that unit. She got that unit. I
think we're going to try to get her on air.
We got that unit. She got that unit. I wasn't
involved in that part of the transaction, but I think
(30:49):
she got a sixty thousand below what the original list
price was on the brand new construction home. So she
did great on that. We were the third highest sale
in that neighborhood I think ever all time, this slowing market, right,
I was like amazed about that. And and the house
wasn't super mac doddy. It had a brand new.
Speaker 2 (31:07):
I was gonna say, did this the house like, was
it outshining?
Speaker 7 (31:10):
No, it had some it had some better features than
some works features.
Speaker 6 (31:15):
So it was original everything.
Speaker 2 (31:17):
The house.
Speaker 7 (31:17):
It was twenty something years old. It was very clean
and very functional and you know in stage place. Yeah,
and we staged it so it looked real nice. But
it had a really nice, nice master bath that master
bath suite that they renovated and had a brand new
roof that was.
Speaker 2 (31:34):
Like weeks old. That's nice.
Speaker 7 (31:36):
But other than that, it was pretty original. Now other
ones that we were competing, one had to pull another
one had more upgrades but not the new roof. So
it was like pick pick whatever you wanted. So anyway,
I talked to Kevin on Tuesday after they moved in
everything because they saw on Facebook the whole weekend they
were posting all or during the week they've been posting
(31:58):
all this stuff about their new home and living up
there and everything.
Speaker 2 (32:01):
They're so happy. He looks happy.
Speaker 7 (32:02):
And Kevin, he was beaming in the photo right on Facebook.
So I called Lisa to congratulator, ask her how the
move went. And Kevin was listening, you know, on the phone.
So I go, hey, Kevin, how you feeling and he goes,
I'm feeling awesome. I never thought this is gonna happen, right,
And they were so happy up there. So just shout
out to them, thank you for trusting me to help
(32:25):
you so years.
Speaker 2 (32:26):
To just go along for the ride because it's a
good ride.
Speaker 6 (32:29):
She's smart, Yeah, she's super smart. Just let her take care.
Speaker 2 (32:33):
Yeah, yeah, exactly.
Speaker 7 (32:34):
So Lisa and Kevin, I hope you have many, many,
many years of enjoyment in your new home, in your community.
They moved to Hormond Beach, they moved up north, so
I'm really happy for them, and I hope you enjoy
your new venture in life. And so literally looking forward
to keeping in touch with you to see how things
are going.
Speaker 6 (32:51):
In Go Dolphins, Kevin. I'm a dolphin fan.
Speaker 2 (32:54):
So they're going to have so it's brand new construction.
Insurant's going to be really low. They got probably a
very big portability gap. So their property taxes even though
they're buying you know, I don't know what price point,
but you know, relatively expensive home, their property taxes will
not be going crazy on them. So yeah, that they'll have.
Speaker 7 (33:12):
To worry about a roof for probably fifteen years. You know,
assuming you don't get hit by a storm. You don't
have to worry about your roof. Your AC is good
eight to ten years, right, or your water heater is
good eight to ten years. AC is good about ten years,
you know. You know, a lot of the things that
people have to worry about as they're getting older, a
lot of those costs for them.
Speaker 6 (33:33):
Are being taken care of. It don't have to worry
about it for a long time.
Speaker 2 (33:37):
Very nice.
Speaker 6 (33:37):
So it's just really smart.
Speaker 7 (33:39):
We are going to get into a little later today
about why it is such a great time to buy
right now. A lot of people are very confused about
this market, and it is a confusing market, don't get
me wrong. There's been a lot of takeaways in the
national market with the prognosticators and are the necessociation realters.
They scaled back what their expectations for the year is
(34:02):
yeah and advising downward. Right, So a lot of people
are bracing for a very rocky real estate year this year.
But no matter what the market is, there's always one
segment that's going to do a little better in that
market than another segment.
Speaker 2 (34:18):
Right.
Speaker 7 (34:18):
That's why we say seller's market, buyer's market, for example,
or investment market.
Speaker 2 (34:23):
Right.
Speaker 7 (34:23):
But this case, right now, I'm going to make the
case a little later today and with Mike about why
it's a great time to be a buyer in today's
market and all the benefits of being a buyer. And
we're going to talk about a couple of negative things
about being a buyer today's market, but the benefits far
way out weigh the things that most people are carping
about right now.
Speaker 6 (34:43):
So we're going to get into that in a little bit.
Speaker 5 (34:45):
Excellent, we'll do a four minute reset, we get back.
Speaker 3 (34:47):
We got plenty of time remaining on this Saturday, another
basic hour and a half. Thank you very much for
being with us. You're welcome to join us. Always remember
toll free eight seven seven nine two seven six nine
six nine if you want to get involved the conversation
at hand, or if you have a question that you'd
like to pose to one of the pros, You're more
than welcome. If you're not comfortable on the radio, I
totally understand. Always remember you can reach the entire team
(35:10):
at Floridatalkrealestate dot com. Find us on Facebook as well.
Another resource to use. But at floridatalkreal estate dot com
you got the hotline. You can call it twenty four
hours a day, seven days a week eight eight eight
nine seven three seven eight to eight. You'll find it
at floridatalkrealestate dot com. You got the contact sheet there
as well. Just find a way to get in touch
when you're looking to buy a home, sell a home,
(35:31):
stuck with a home, you don't know what to do
when you need Prospros that the team at floridatokrealestate dot com.
Speaker 5 (35:37):
You will not be sorry no one. Use it, love it,
share it.
Speaker 3 (35:39):
You can change your life, many lives, but yours is
the most important one. To us at Florida talkreal Estate
dot Com. Four minutes from now we get back at it.
You ready, Jimithy, Yeah, we are ready. All right, let's
do this Florida Talk real Estate right here Onnreal Radio.
Speaker 1 (36:00):
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 3 (36:09):
Yeah, dial it up eight seven seven nine two seven
six nine six. Now we are alive on this Saturday,
March eighth. If you do dial that up, questions, comments,
concerns in the world of real estate. You want to
get involved with the conversation at hand. The first voice
you'll hear, that's our producer, short ered Jimmithy.
Speaker 5 (36:25):
What's up, my dude? Hello and good morning gentlemen, Good morning.
And Johnny C.
Speaker 3 (36:29):
Well, that's me. Mike Row's with us. He's the mortgage
guy from the mortgage firm. Hello, my friend, Yes he is.
Speaker 2 (36:34):
Good morning, good morning to the audience.
Speaker 3 (36:37):
Of course, we always got Jimmy d our fearless leader.
He runs a top producing Keller Williams team, the Florida
Home Pros Team, Keller Williams Innovations.
Speaker 5 (36:44):
Jimda Pola, there's Jimmy d How you be?
Speaker 6 (36:46):
I Do I run a top producing team?
Speaker 5 (36:49):
Do they have for many years?
Speaker 1 (36:50):
No?
Speaker 7 (36:51):
Jesus, hey, I have an apology instead of a shout out.
I'm going to do an apology today. I want to
apologize to Diane because I made a lot of of
her a few weeks ago.
Speaker 6 (37:01):
And when I was making fun, it was all in
good natured and everything. But now I read this news
story and it's.
Speaker 7 (37:07):
Like, oh, maybe Diane was right and I was wrong.
So Diane is Diane and Gregor selling a house with
me and buying a new home. We're almost ready to close. Basically, yeah,
they made.
Speaker 2 (37:20):
The Melancamp reference, Greg and Diane Diane, right.
Speaker 6 (37:24):
I came up to some lyrics, so that's when they closed.
I'm going to try and sing Jack and Diane with
a couple of lyrics.
Speaker 2 (37:30):
Remember last second, you were talking about reputation, Jim, I
don't want you don't want.
Speaker 7 (37:35):
To Well, I don't think he corrected the reputation any
worse than lowe knowey, that's right.
Speaker 2 (37:46):
That's when you're.
Speaker 7 (37:48):
What was in your house was the lowest it's the
actual real lowest number that you'll take.
Speaker 2 (37:53):
What was the opposite the high mall wowe.
Speaker 7 (37:59):
Yeah, some of them offer that you'll offer as a buyer,
and loy is the lowest stop for you'll take as
a seller.
Speaker 2 (38:06):
And that's the line of the sand. We got the
T shirts printing after just not so yeah, I should.
Speaker 7 (38:11):
I should went your Maui wowie and put that on
a shirt or some hats or something in Florida talk
real estate, So so.
Speaker 2 (38:19):
I want my hat designed Jim, No, it was. It
was I had a buddy of mine who uh from training,
who had a heart attack and in a competition, but
he so he made They.
Speaker 7 (38:29):
Said he had a heart attack in a competition jiu
jitsu competition.
Speaker 2 (38:32):
Oh and uh and then he you know, it's one
of those like he died on the mats and then
they were able to bring him back with CPR everything.
So I kind of made it joking with him, the
the the the hat instead of yo loo, it's yo loot.
You only live once or twice or or twice. So sorry,
(39:00):
sure that just brought that brought that to my brain.
Speaker 7 (39:03):
So I want to apologize to Diane. I'm making a
formal apology.
Speaker 2 (39:07):
Guys, yeah, I keep interrupting you. Sorry.
Speaker 7 (39:10):
So Diane is a very cautious person and she's selling
a house and buying a house. So there's you know,
that whole chicken and egg thing could really blow your mind, right,
How am I supposed to sell my house if I
don't know what house I'm going to buy. I can't
put my house on the market if I don't know
where I'm going to live afterwards.
Speaker 2 (39:25):
Right, don't want to be homeless?
Speaker 6 (39:26):
Right? You don't want to be homeless?
Speaker 3 (39:28):
Right?
Speaker 7 (39:28):
And then how am I going to buy a house
if I need the money from the house I have
to sell, but I find the house, but now I
have my house isn't sold.
Speaker 6 (39:35):
Yet, So what the heck am I going to do?
Speaker 7 (39:37):
And it's very common chicken and egg problem. Well, when
you're a cautious person, right, and nothing wrong, But I'm
not judging on this. I'm just saying, when that's your
person out of top, you're not a risk taker things
like that. When you're a super cautious conservative person about
that kind of stuff that.
Speaker 6 (39:54):
Can really, you know, screw with your mind pretty bad.
Speaker 7 (39:57):
Right, And you have a lot of questions should She
asking me a lot of questions through the whole process,
which is understandable, but it was getting some of the
things that she was worried about were very you know,
being in the profession, Mike, like you and I worrying
about the chances of the loan's going to go through
or something. Right, you might know after reviewing the file
that you know the loan's going to go through. There is,
(40:18):
but you can't really say I one hundred percent guarantee
this loan's going to go through until it's done. But
you know that the loan's going to go through and
there there's going to be no real issues or anything,
and that's you know, and you're going.
Speaker 2 (40:29):
To move forward. I can oftentimes tell that just to
my initial ten minute, but if you're a person without docs,
I can put it in that sense.
Speaker 7 (40:38):
But if you're a person who's never hasn't done a
process like that for a long time, and you're cautious
and you have a lot of natural questions, you're just
naturally inquisitive about all the things that could.
Speaker 2 (40:48):
Go wrong, and you need to know that right.
Speaker 7 (40:52):
Even though that you, as the professional, feel fully confident,
if they're not, you know, that's still very disconcerting to them.
So I was trying to make when we were going
through this on one of the subjects, I was trying
to make Diane at one point understand that basically everything
in the deal for the sale and the purchase is
done and except I said, unless for some reason, you
(41:15):
don't think that you're gonna get clear title to your house,
or we can't get clear title to the other house,
like they can't clear the title. Other than that, there's
nothing else that's left because both deals are cash. Didn't
have any appraisal, We had the inspection, inspections are done.
We're just waiting for title clear and then we're going
to close.
Speaker 2 (41:34):
Right.
Speaker 6 (41:34):
Oh and one of them had.
Speaker 7 (41:35):
To get approval from a homeowners association. So I go, So,
unless you think none of that's gonna happen, right, you're good,
You're one hundred percent good. Should be kicking up your heels. Yeah, yeah,
and have a little glass of champagne. Maybe not the
whole bottle, but have a glass because you're pretty far
along and it's gonna happen.
Speaker 6 (41:57):
So what was the example I used?
Speaker 7 (41:59):
So, I said, I And I was thinking the examples
to be totally outrageous to show show her that, don't
you know, you're really you're really worrying about nothing. So
I said, you know, maybe the house who burned down,
or the house will explode.
Speaker 6 (42:12):
I mean, if you're.
Speaker 7 (42:13):
Gonna worry, let's worry about real things, like the house
could explode or whatever.
Speaker 6 (42:17):
Well, I was reading.
Speaker 7 (42:18):
I know, maybe it wasn't the best way to say it.
I was having a bad week.
Speaker 2 (42:22):
Maybe you could drop dead tomorrow.
Speaker 6 (42:24):
But here here's the thing I was reading last night
and I was Manifestations.
Speaker 7 (42:30):
Well, I feel so bad for this family in Ohio. Sorry, sorry,
Barbington family, Barbarton, Ohio. There's a headline I read yesterday
and then I stopped to read, and then I was thinking, Diana,
it's like I owe her an apology. Barbarton home had
Barbarton home that exploded was pending saleh no.
Speaker 2 (42:53):
No, Gee, I can't believe it.
Speaker 6 (42:55):
This happened this week.
Speaker 7 (42:56):
It was March fifth, updated March fifth house that was
on the market. It was under contract to be sold,
and the dang house blew up.
Speaker 6 (43:06):
And now there's no more left to buy.
Speaker 7 (43:08):
God, thank god. Nobody was in the house and nobody
was hurt or anything. It was a vacant home and
they think it was.
Speaker 2 (43:14):
The gas gloat.
Speaker 6 (43:15):
Yeah he was there, evidently, but the house was on
the market, it was pending and then it blew up.
Speaker 2 (43:22):
I was trying to pull the name of that band
that he just played the fire started. Who was that?
Speaker 5 (43:25):
Oh? That was.
Speaker 2 (43:28):
That boy Slim No, No, Prodigy Prodigy, bro, that's it
good stuff. Little that took that just took me back,
like that was that's like nineties, right, early nineties, mid nineties.
Speaker 5 (43:40):
Gosh, I feel like.
Speaker 2 (43:41):
Sounds about right.
Speaker 5 (43:42):
Yeah, I feel like it's later than that. But my time, man,
i'd be like, oh that just two years ago. That
was fifteen years Oh yeah exactly.
Speaker 2 (43:50):
Yeah.
Speaker 5 (43:51):
Did you graduate high school ninety three?
Speaker 2 (43:53):
Ninety three? So it was probably I graduated ninety six.
I feel like I think it was right there, right,
and I feel like you're in that ninety seven ninety
eight zone. Yeah, it could be.
Speaker 5 (44:01):
Yeah, I'll look it up, all right, we.
Speaker 2 (44:04):
Can ask yeah, looking up, do you remember that band?
Jim No, I don't remember what was Prodigy?
Speaker 5 (44:10):
Prodigy?
Speaker 2 (44:10):
Yeah?
Speaker 6 (44:10):
But what could you play the song from fire Starter?
Speaker 2 (44:12):
Yeah?
Speaker 6 (44:12):
I didn't hear it.
Speaker 2 (44:18):
Oh, this is like your loan originary. He's click clacking.
I know where it is. Hold on, bear with me.
He found it in like a second when when it was.
Speaker 6 (44:30):
He broke six, he broke the three sixty, he broke it.
Speaker 8 (44:34):
All right, Well there's a way ninety six okay, yep,
ninety six boom I don't know that.
Speaker 2 (44:45):
One hasn't kicked in yet, and wait for the what
do they call that giant?
Speaker 5 (44:52):
The drop the drop in?
Speaker 3 (44:53):
Yeah, probably I would guess the biggest song from Prodigy Brill.
Speaker 2 (45:00):
Yes, I can tell you. Maybe one other one.
Speaker 5 (45:04):
If I heard it, I couldn't. What was I'm not
at Raves. I'm guessing.
Speaker 2 (45:10):
I guess, yeah, I don't think I wasn't. Really, you
were probably organizing your Barry Manilow record collection.
Speaker 3 (45:16):
There weren't many double stack days and gyms.
Speaker 7 (45:21):
So I I just thought this was funny that the
house blew up, and I'm like, well it was.
Speaker 2 (45:27):
I was waiting to close. You put that on your
mental list of things not to to somebody like everything's
going so great. It's you know that situation, Jim with
the seller buyer, like that you'd mentioned the you know,
the conservative, cautious and and they'll be like, I'm not
going to put my house on the market until I'm
(45:47):
in contract where i know where I'm going next. And
as a as a you know, professionally, you have to
try and convince them like what what? What seller is
going to accept your offer that's contingent on selling your
home and you have any you're not even on the market,
like you're not don't even have you're home listed for sale.
If you were in a really, really really strong buyer's market,
(46:08):
maybe that's possible, but we're not. We're not there, right, It.
Speaker 7 (46:13):
Would be very hard to get somebody into contract if
your house isn't even on the market. And even even
being on the market and not in contract, that's still
not a great position to be in. It's much better
when you're in contract. Like if you could say, hey,
we've already gone through the inspection, we're just waiting for
the appraisal, go into contract with us. By the time
(46:35):
we're we have a clear inspection, our appraisal will be done.
Yeah that way, you know that way. Go just let
us get through the inspection period, our appraisal will be done.
That way, we'll know everything's done right. That would be
a stronger situation. Or hey, we're cash, we're ready to close.
We're just waiting to find the house that I'm trying
to buy.
Speaker 2 (46:52):
Yeah, and a lot of people definitely want to avoid,
Like we joke about being homeless, but a lot of
people want to avoid like some sort of middle ground
between the two homes, maybe you have to rent somewhere,
you have to pay storage fees, so if you can
avoid that. So the simultaneous close is complicated, doesn't always
it's not the easiest to manage because you do have
two deals. Sometimes they're daisy chained with other deals, right
like multiple seller buyers, So it's hard to do. But
(47:16):
if you go into it with the right like plan
and you're communicating with all the professionals and everyone's kind
of communicating, you can and maybe there's some flexibility on
dates or like hey, you close, maybe it's a post
close occupancy, so you sell your home and you're able
to rent it back essentially for a couple of weeks
(47:38):
or a month or something. So all of those are
like the tools in your tool belt with that type
of deal. But certainly it's complicated and a lot of
things out of your control.
Speaker 7 (47:48):
There are, and you have to really be on top
of everything. And the other thing is is that you
should also make sure that you understand your costs because
let's say that you do have to go through a
transition where you can't sell it, like what Lisa and
Kevin did.
Speaker 6 (48:06):
They came in on Monday. Monday, they they.
Speaker 7 (48:10):
Actually pre signed, but Monday, basically they closed on their
home in the morning. On the sale of their home,
that title company was told to send money to the
second title company for the purchase of the new construction home.
And then later that afternoon they went and went to
the second title company and closed that and got the
(48:31):
keys to the new house and gave up the keys
of the old house, all on the same day, so
there was no worrying about where your stuff was going
to was leaving on Sunday night in Palm Beach County
and it was Norman Beach on Monday morning, right, So
I think by four o'clock in the afternoon they were
already kind of moved in, right, which is pretty cool,
(48:52):
right on the same day. Now, Lisa and Kevin were
really smart because they had a backup plan. If the
first house wasn't going to work for them, they had
a second house lined.
Speaker 2 (49:03):
Up, right.
Speaker 7 (49:03):
I mean, that's why when they export the names are
right right. Yeah, they had backup plans and stuff, which
is awesome.
Speaker 6 (49:10):
The other thing is it's really important is to know
your numbers.
Speaker 2 (49:13):
Well.
Speaker 7 (49:13):
So let's say that let's say a transition period of
a week is going to cost you ten thousand dollars, right,
and it's like ten thousand dollars.
Speaker 2 (49:22):
How's that happen?
Speaker 7 (49:23):
Well, a lot of times some moving companies, if they're
told at the last minute that they got to keep
your stuff in storage and not move it to the
new place, they're going to charge you a decent amount
of money to hold that furniture. And it's kind of
expensive to hold it just for a couple of days,
so it can be a lot of money to do that.
Then you've got to have a place to live for
the week or something. Let's say there's a week transition
(49:45):
or something. Right, And then if you have pets, it
becomes even more complicated. Right, if you have two big
dogs and you're trying to find a place that's going
to let you stay for a week or ten days
or something. You start out and all that up, you
might be able to adjust your price differently in order
to to get the right buyer or something. Right, So
let's say you're trying to get six hundred thousand, but
(50:06):
if you don't close on the same day, it's going
to cost you fifteen I'm just making it up. Okay,
you could adjust the price to work with the right
buyer that can give you the timing you want and stuff.
So there's a lot of ways to work around it.
But you got to know your You got to know
everything pretty well and what could go wrong. Knowing what
could go wrong is really important. That's why you always
(50:27):
have to figure out one step ahead. It's the old
no no no non right. If that makes a difference,
I just want to switch gears here. We talked last
time we were on the show. We were talking about
how Florida is considering entering property taxes facing out property.
Speaker 2 (50:43):
I've been here, people are talking, Yeah, we're talking about it.
Speaker 6 (50:46):
I still think it's going to be talking.
Speaker 2 (50:48):
That's it.
Speaker 3 (50:49):
How far did it get in Like remember when Marko
Rubio brought this up, like twenty ten to two thousand
and eight. How far did they get with the reality
so I don't remember. I think they got to the
point where they're like, yeah, it's just not doable, mark
we can't make the money up unless we apply taxes.
And if they do a state tax, they start talking
about how it disproportionately.
Speaker 2 (51:10):
If you're talking about it lower income tax, no sales taxes,
you got state sales. We talking about billions of dollars
they're going to make up. It's a lot, yeah, I mean,
I just I saw a video. You know, it's hard
to tell with videos these days, like what's real and
when was it and all that stuff, But it was
definitely a desantist talking about property tax that he was
behind the idea. He supported the the cert you know,
(51:32):
the research effort, uh, and he vowed that they'll you know,
at the state level, there's no going to be there's
no increase in state tax level, right right, he said,
because we'll never do that under my administration. So it's
still I when I I think I'd love the idea.
Of course, who doesn't. Who would love to not have
(51:52):
a five, six, seven, ten thousand dollars bill every year
just for owning your own property?
Speaker 3 (51:58):
Well?
Speaker 2 (51:58):
Right, I think they get that.
Speaker 3 (51:59):
Biggest point he makes when he's talking about it is
is you'll never you never own your home. You're always
kind of.
Speaker 2 (52:07):
Think that if we saw the same we saw the
same video that I was talking about renting your land
from the government, I get that.
Speaker 3 (52:15):
Yeah, it's not hard to get behind until you realize
what you have to sacrifice to get.
Speaker 2 (52:19):
I remember, you know, I moved to Florida from Virginia,
and Virginia you had the state income tax. And one
of the big things about Florida is, listen, there's no
income tax in Florida. That's one of the big benefits
when you know many of Jared's Jarrett's clients, you know,
or Florida residents for that reason. And that's great. But
(52:45):
so where we're so you have a little bit higher
sales tax, you have a little bit higher property taxes,
and it just like in order to fund government operations,
you need tax money like that. There's nothing new about that.
Like taxpayer is pay for infrastructure, police, fire, education, all
of that stuff. So you have to you have to
(53:06):
be able to fund that stuff. Even if you cut
out you know, the what's the hot topics, the waste,
fraud and abuse and all that stuff, you still need
these resources. They still cost a lot of money.
Speaker 7 (53:18):
Well, it costs fifty billion dollars, that's what they'd have
to make up. A bunch of studies said the same thing.
Fifty billion a year is what they would have to
raise because that's what they'd be losing. If they ended
property taxes be fifty billion a year, they'd have to
make up.
Speaker 3 (53:32):
It's not the state obviously, that's fractured county to county municipality.
Speaker 5 (53:37):
They get their own slice of that pie.
Speaker 3 (53:38):
And that's a big point of emphasis is you know
it's not state money, it's county money.
Speaker 7 (53:42):
And at some point every county, Right.
Speaker 2 (53:46):
Do you want to live in the county or the
municipality that has cut their budget so much so that
you don't have to pay taxes?
Speaker 5 (53:55):
Like?
Speaker 2 (53:55):
What what is what comes from that? When you talk
about uh, you know, the school systems, when you talk
about police and fire, when you talk about parks and
rec like, do you want to be in the county
that has just slashed their budget so much to save
tax dollars? Save taxpayers dollars?
Speaker 7 (54:12):
But what do you Here's here, here's another thing. There
was a law passed a couple of years ago, I
think it was twenty twenty one here in Florida where
local municipalities are not allowed to change their law, enforce
budget down without state approval, right, right, So you can't
even do the cuts that you're talking about without the statesion.
(54:36):
Right for law enforcement, you can't even do that without
asking the state.
Speaker 5 (54:39):
Permission, even though it's your county's budget.
Speaker 7 (54:42):
Yeah, I don't even understand how we You know, it
always used to be, at least when I was growing up,
everything was about local, local, local, And now it seems
like everything's going up where the controller is going up
to higher powers instead of the local level. And it's
just changing just so dramatically. The attitudes in the country
just remain changed.
Speaker 2 (55:02):
Well, part of that attitude is movement towards like, uh,
forget about about what the traditional bureaucracy says about that
kind of thing. You get your your you know, the
leader making making decisions, right like, so you say you
can't do that, you can't, Well who says you can't?
Speaker 7 (55:19):
Let's just cut the budget right? Well, well, so the
fifty billions. So here's the thing I didn't understand. I
didn't know this. I thought Texas was the first state
to try to do this no property tax thing, but
actually was no North Dakota and North Dakota tried it,
and they got the farthest out of all the states
to try to end property taxes and it failed. The residents,
(55:41):
uh said they didn't want to do that because they
were too concerned about what was going to be cut
and how they were going to make up the money.
Speaker 6 (55:49):
The other thing.
Speaker 5 (55:49):
That's so interesting, they put it the referendum.
Speaker 7 (55:52):
Yeah, they actually brought it up for a vote. They're
the ones that got the farthest, and they it was rejected.
They said they didn't like, they weren't confident how they
were going to be able to fund everything.
Speaker 3 (56:03):
We may get there, we may end up voting on
that's what it'll take.
Speaker 6 (56:07):
I don't think, yeah, it's going to take sixty percent.
I don't think it's gonna work because it doesn't work
in at Texas. They just tabled the whole thing. It
was a hot mess for them.
Speaker 5 (56:18):
So you get the this is how we supplement this
is you have.
Speaker 7 (56:21):
To figure out how you're going to fund it. And
here's a couple of arguments about it.
Speaker 2 (56:25):
Though.
Speaker 7 (56:25):
You know, one of the arguments against the property tax
elimination is that what you're basically doing, you got to
make up that fifty billion, right, So what will happen
is everybody's going to, hypothetically, this is what they're talking about,
everybody would have to pay basically in a sales tax
or something, so it becomes a consumer tax basically. And
(56:48):
what happens is is the people that own land or
own real estate, right, their tax bill is going away completely.
And then people that don't own any land or own
any real estate now they're paying a higher tax bill
to make up the fifty billion sure the land owners.
Speaker 3 (57:07):
And it disproportionately affects the lowest income earners most because
that they they they're subject to this sea.
Speaker 6 (57:13):
If you're making it, I'm making it up.
Speaker 7 (57:15):
But if you're making thirty thousand dollars a year and
your consumer tax or sales tax goes up four percent,
that's going to affect you a lot more than if
you're making one hundred and fifty thousand dollars a year.
Speaker 3 (57:25):
Mike, Mike did the math on the fly one day
in here, I don't know, a month ago, right, and
it was a I don't remember what the number was,
but it was a stupid number that you had to spend.
Speaker 2 (57:36):
So we did the we did. It was something like
four I assume four thousand dollars in property taxes, which
is probably on the low side, but just say four thousand. Nopuh,
And I said six percent, So just say the sales
tax doubled, right, so you would have to spend It
was like something like sixty five thousand dollars in order
to make make four thousand at six percent, right, so
(57:57):
six percent of that sixty five is your four thousand.
So every in buying stuff that are subject same extra.
Speaker 5 (58:06):
Yeah, in addition to what they already spend to make
up for.
Speaker 7 (58:10):
But here's a bit, here's another issue too. And this
is the thing that always bothers me though about the
tax increases. We've had tremendous amount of tax base increase,
like the home values increasing and property has increasing, which
means that the government collects money even if they don't
change the rate, like the taxable rate. They keep the
(58:31):
milite rate the same. If the value they get they
get more money.
Speaker 5 (58:36):
Yes, But.
Speaker 7 (58:38):
No matter how much money is coming in, you hardly
ever see them reducing the tax bates. They either keep
it the same or it goes up. It really goes down.
And if it goes down, it goes one down one
year and then three years up again. And the thing
is nobody it's almost like free money to them that
they don't have to go back to the public to
ask for. They're just saying, hey, your house growing values
(59:00):
and now we get to collect more money. And the
thing is what happened with the sales tax is if
the economy got bad, Right, if the economy gets bad
and people buy less stuff, you're going to be taking
in less taxes and you can't rely on property value
increases to make up difference. Right now, Right now, that
(59:21):
property value increases like a bonus to government to keep
things going and not having that if the economy goes
bad and like we went into a really severe let's say,
was just straight sales tax, and all we're doing is
making money off of what people buy, right for tax purposes,
if that's the majority of the income coming in for
(59:42):
the government. What happens when you go through a really
bad recession or a depression or stagflation like we had
in the seventies and people weren't buying nothing because they
couldn't afford it, right, then you have no money to
run your government. It gets worse and worse. It would
be like a self fulfilling Like.
Speaker 2 (01:00:00):
It's kind of inevitable that like, the more money you make,
the more money you're going to spend. Right, So governments
are certainly that just like people like even you know, Johnny,
you were at one point in life, you're making fifty
thousand and you make one hundred thousand whatever, you still
like are accumulating less savings, right, just because you're spending
goes up because whatever, That's just like how things work,
(01:00:20):
and governments certainly do that. I think when where the
rubber meets the road is like, so what are you
going to cut out of? Because you can't you have
to reduce the budget. What are you cutting out? And
that's where people have their like pet projects things like that.
I've heard this argument that I don't have any kids
(01:00:41):
in school, why are my taxes going to fund our
public education system? Right? I've never called the police Johnny
once in my life. Yes, a matter of fact, the
only time. The only thing they've done is pulled me
over and cost me money, right, or write me tickets
like why am I funding it? And I hear that
stuff and as an individu joy I can see that perspective.
But you have to I mean, you're living in a community, right, Like,
(01:01:04):
there's got to be you have some things that you like, right,
there has to be some things that you like.
Speaker 5 (01:01:08):
Now imagine it completely uneducated.
Speaker 2 (01:01:11):
Yeah, I live in the anchorage.
Speaker 5 (01:01:13):
Right.
Speaker 2 (01:01:13):
They spend a lot of money Indian trails, waterman, they
spend a lot of money like managing water, but also
the roads, right, so I'll you know, we still have
dirt roads out there, so they're scraping those roads. There
was an initiative where they did this paving project that
all came from tax dollars. And those are all things
(01:01:34):
that like make in my view, make the community better,
make it livable, like we're still keeping our rural kind
of vibe. But there's things that there considers improvements.
Speaker 5 (01:01:45):
Right.
Speaker 2 (01:01:46):
So I don't know, but I see that Jim, like
the property. As property values increase because the market's increasing,
all of a sudden, the tax coffers are getting full
and then they're spending it. Yeah, they're spending it.
Speaker 7 (01:01:58):
So a couple of other ideas are going to try
to And here's another thing, on the property taxes. If
they did eliminate property taxes, what do you think is
going to happen to property values? So you know, everybody's saying, oh, well,
if I'm paying six thousand dollars a year for my
property taxes and I don't have to go that a way,
that'll save me so much money.
Speaker 6 (01:02:16):
And now you know I own the land, right But
What will.
Speaker 7 (01:02:19):
Happen is is that now your mortgage payment is going
to be lower, right because you don't have to pay
property taxes, so you can afford a bigger more money
for the loan, right, and or a bigger house or
whatever I tell you.
Speaker 2 (01:02:31):
Fuel that'll fuel.
Speaker 7 (01:02:33):
That'll just be another super surge into property values going
up again, right, and that's gonna I'll bet you dollars
Sedona so would offset any money that you would be
quote saving from the property taxes. So it really isn't
going to be the panacea that people expected to be.
I would love it to work out that way, you know,
(01:02:54):
I would like to have no property taxes if it
was going to be better for.
Speaker 5 (01:02:59):
A world really be able to make.
Speaker 2 (01:03:01):
We are in the real estate, so we're all the
perspective that we're kind of the where we're coming from
is like you're a buyer, and it's a art. It's
a tough market for buyers because home prices are a
property taxes, you know, the insurance, and so if you're
a buyer, you don't want home values going through roof.
If you're just a homeowner accumulating your wealth right like
(01:03:21):
your war chest. Yeah, I want my property to be
worth as much as possible. I want my lot, like
my acre in a quarter that my house sits on,
to be like worth a lot of money, right, Not
because when I go to sell it boom right. As
a buyer though.
Speaker 7 (01:03:36):
Jeez yep, Hey, let's go ahead and take a break
on the flip side, though, I want to talk about
a new record that Florida hit in real estate. First
time ever. This happened in the history of real estate
for Florida. We're going to talk about it real quick.
Speaker 2 (01:03:49):
And is it a Florida or is it a Florida.
Speaker 7 (01:03:53):
It's it's it's neutral. I guess it's kind of neutral.
But the other thing I wanted to say is, right
after that, we're going to talk a lot of stuff
about what happened in the news this week about these
super low interest rates that everybody needs to take advantage of.
If you're a buyer and you've been reading about these headlines,
you've got to check out what we have to say
about those super low interest rates when we get back
(01:04:15):
on all right, lots.
Speaker 3 (01:04:16):
Of very valuable information remaining, about an hour left on
a Saturday. Thanks for being with us. Write this down
if you don't remember from the last time you were told.
Floridatalkrealestate dot com is your one stop real estate shop.
You get access to the entire team of pros.
Speaker 5 (01:04:30):
Pros.
Speaker 3 (01:04:30):
These are people that are very good at what they
do and when you walk the watch them work cohesively together.
Gives me chills when you have access to a team
when you're looking to buy a home, sell a home,
and you're stuck with a home and you don't know
what to do. Man, the power that you have and
the confidence that you can walk around that you are
in the best shape you can be in is wonderful
(01:04:53):
and I want that for you, your friends, your family.
So no what use it, love it shared. It's Florida
Talk real Estate dot com. There's a hotline you can
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every Saturday, Florida Talk real Estate right here on Roll Radio.
Speaker 1 (01:05:26):
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 3 (01:05:36):
It is eight seven seven nine two seven six nine
six nine toll free.
Speaker 5 (01:05:39):
We got you until eleven. What's it eleven?
Speaker 2 (01:05:42):
We're doing?
Speaker 9 (01:05:42):
Uh Panthers, Yeah, Panthers Insider show Man. They just added
they just got marshand today. The Bruins are in cell
mode right now. Marshand's on the shelf for a little
while right now. But that was a big git for them.
Potentially that could be massive.
Speaker 3 (01:05:56):
The Seth Jones git was huge, especially egg Glad starts
stinking it up on the power play a little bit.
That's a nice blue line ad right there. Started to
get a little dorky on the Panthers.
Speaker 5 (01:06:07):
But Cats rich getting richer. Uh, they're definitely getting ready
to make another run. They got a backup goalie.
Speaker 3 (01:06:13):
Yeah, they're they're like, let's go, let's do this again,
let's get another There you go another good for the Panthers.
I am not a big Cats fan, but obviously you
who support local watch.
Speaker 5 (01:06:25):
As you can't or you a Caps fan, aren't you? Yeah,
what are you booing over there?
Speaker 2 (01:06:29):
Then just saying you're not a Cats Cats fan? And uh,
we're on a local radio station.
Speaker 5 (01:06:34):
Yeah, root for them, but I'm not. I don't. I'm
not like waving.
Speaker 2 (01:06:37):
The best ways. When I went to see the Caps here,
the chant was always let's go Cats, and I could
just twist it in my mind. So let's go Caps. Yeah,
looking along with that, Look at all these fans, Let's
go Cats.
Speaker 5 (01:06:53):
Yeah.
Speaker 3 (01:06:54):
No, I think it's fantastic whenever the local teams can
do well. And obviously you know the thrill of championship
run down.
Speaker 2 (01:07:00):
Here, he's chase going to see uh close, I know,
I know he's closed. You have a chance of getting
it this year? Yeah, I believe how many games are
I haven't. I haven't kept up with the uh the
chase for movie. Yeah, but I know, uh, I.
Speaker 5 (01:07:16):
Think I know it's close. Johnny sees me. There's Mike
Row He's the Caps fan. Yep, sorry, yeah, guys, he's
the mortgage guy from the mortgage for him. And a
true Panthers fan is jim Depola.
Speaker 3 (01:07:25):
He runs a top producer Keller Williams team Florida Home
Pros Team Keller Williams Innovations.
Speaker 5 (01:07:29):
It's a Jimithy tub.
Speaker 3 (01:07:30):
Yeah, we're we're talking Caps.
Speaker 5 (01:07:37):
Jimmy Dpola, How you.
Speaker 6 (01:07:39):
Be hey, good, good good.
Speaker 7 (01:07:41):
I just wanted to say that we hit a new
record here in Florida for the highest number homes listed
for sale in Florida. We hit one hundred and seventy
two thousand, two hundred and nine homes for sale on
the market.
Speaker 2 (01:07:58):
That's up about the high.
Speaker 7 (01:08:01):
The last time we had numbers even close to this
was in twenty twelve when we started the show. I
remember for Saint Lucy had six years of inventory back then.
Speaker 6 (01:08:12):
That that was pretty daunting. When you'd put a house
on the market and you knew that there was a
six year inventory in the neighborhood.
Speaker 5 (01:08:18):
Yeah, that's pretty deep, right.
Speaker 6 (01:08:21):
It's like, yeah, I'll be retired by the time this
house sells.
Speaker 2 (01:08:25):
It's kind of so is it because everyone's selling because
it's a great market to sell, or is it because
homes are just staying longer.
Speaker 7 (01:08:33):
I think there's two things happening right now. The houses
are definitely staying on the market longer, there's no doubt
about that.
Speaker 6 (01:08:39):
But also, there are more people putting their house on
the market. There is more it seems more willingness to
sell now. Some of them are like landlords that are
selling because they've made a lot of money on the
and they're ready to cash out because either the house
is going to start needing some majorie pairs or they're
(01:09:02):
tied in the insurance hikes and everything and it's stripping
out the income.
Speaker 5 (01:09:06):
Expensive.
Speaker 7 (01:09:07):
We're having people that are just leaving this area and
they don't care like if it's a good time to
buy or a bad time to I mean a good
time to sell or a bad time to sell. What
they want to do is get out of town. They
want to move to either other parts of the state
or Florida that are slower or a little less expensive,
or they're moving out of the state completely.
Speaker 2 (01:09:27):
They're pulling the handles on the yeah ejection, ye rip order. Yeah.
Speaker 7 (01:09:34):
And it's funny, it is kind of a tail of
two cities on that market because I if somebody, if
another realtor was sitting there and saying, well, Florida, especially
South Florida, is getting more and more millionaires from up
north moving to Florida. That's true too, right, So you
have the super wealthy moving down here, but you have
(01:09:55):
more middle class people and people that are about to
retire or tired. In Canada, I feel like it's too
scary down here financially, they're leaving. But let me tell you,
there's way, in my opinion, there's way more people leaving
because there's way more middle income people than millionaires moving
into the state.
Speaker 2 (01:10:15):
So I think, anyway, yeah, million billionaires, billionaire slackers, slackers,
what is I think.
Speaker 5 (01:10:22):
There's fifty billionaires on Pomplish Island. Fifty fifty billion.
Speaker 3 (01:10:28):
Wow, billion dollars is a stupid amount of money. It's
even hard to wrap your your head around how much
money that really is.
Speaker 5 (01:10:36):
It is an absurd amount of seen amount of money billionaires.
Speaker 6 (01:10:42):
It's very crazy.
Speaker 7 (01:10:43):
So so it's kind of interesting. We're seeing this Gary
Keller from Keller Williams, the Keller and Keller Williams. Gary
the owner of the company and the founder. He just
came out with his national address as to what's going
to happen in the real estate market this year State
(01:11:04):
of the Union, State of the Union address of what's
happening in real estate. And it's kind of interesting because
you know, Gary runs now the number one brokerage in
the country. There's about one hundred and ninety thousand Keller
Williams agents in the country right now at a one
point five to five million, So he's more than ten
percent of everybody that's out there.
Speaker 2 (01:11:23):
Right.
Speaker 7 (01:11:23):
So Gary is saying that this year is going to
be flat, if not negative. He thinks the year after this,
twenty twenty six, is going to be much.
Speaker 6 (01:11:33):
Of the same nationally. Nationally, we're talking not locally.
Speaker 7 (01:11:37):
And he thinks that sales, our sales last year were
the slowest and nine years, and he thinks we're going
to be kind of there national still national sales because
so like it is, it is local, but the trends
most of the stuff happening across the country, there aren't many.
(01:11:58):
Everybody kind of is going through this thing. You don't
really have any real pockets. They're just exploding right now
while everybody else is slowing down.
Speaker 5 (01:12:05):
Little gym's, little honey yeahs.
Speaker 7 (01:12:07):
And I'm sure there are places there, but not big
enough to be of any significance. And like neighborhood by neighborhood,
you might have great stuff happening, But.
Speaker 3 (01:12:16):
So the the the magnet that was Tennessee in North
and South Carolina and Texas, that's not quite as powerful
a magnet as it was, say a year or two ago.
Speaker 2 (01:12:30):
I don't know why changed.
Speaker 5 (01:12:32):
I don't either.
Speaker 7 (01:12:32):
Uh, Texas is from what I understand, like Florida Texas.
Florida blows down a lot, right, Florida and Texas slowed
down a lot.
Speaker 2 (01:12:40):
Now.
Speaker 7 (01:12:41):
I still hear that Tennessee because I talked to agents
up there, because replacing families with agents up in those areas.
For example, Janet and Sean are moving from Port Saint Lucy.
I'm gonna be help and sell in their house later
this month, and they're moving to Tennessee. Now, we got
them to two agents because Tennessee's big state and very long,
(01:13:03):
not so tall, not so tall.
Speaker 2 (01:13:05):
But very long.
Speaker 7 (01:13:06):
So we had to decide. They had to decide what
part of the state they were living in because they
had never really been up there that much. So they
picked two regions, but they were very different. So I
had to place them with two separate agents that covered
each area specifically. And they love both agents, but they
decided to move to one part of the state, so
(01:13:27):
they let the other agent go so they could focus
on the one area. They're telling me that Tennessee is
still doing pretty well. I hear North Carolina overall is
doing well. Georgia is still strong. Overall, like speaking overall, now,
is it on fire where you're getting double digit appreciation
and stuff? No, I'm not saying that, but they're staying
(01:13:50):
consistently active right now. They don't have the crazy inventory
that's growing in our areas from whatever.
Speaker 2 (01:13:56):
It's time. Like the last segment in this one, we're
talking doing a lot of prediction, and you know, like
we can see so many different reasons and you know,
attitude towards things, and it just hits home for me.
It's hitting home right now that it's really just like
especially for us, it's it's an individual decision, right, It's
a lifestyle decision for you and your family. And most
(01:14:17):
of the people we're talking to are not predicting markets.
They're not making like investment style decisions. Of course, it's
a home, it's an investment. I get all that, but
it's really just like is this timing right for me
and my family? Is what we want to do? Like
you said, people are ejecting or parachute or whatever, like
I got to get out of South Florida, the traffic,
the taxes, like the price, whatever it is. But it's
(01:14:40):
really an individual thing and not so much like hey,
you know what Tennessee is going to be really hot
in the next ten years. I'm going to Tennessee. So
I'm going to Tennessee because we're leaving Florida. We love
this part of the country. That's where we're going. Or
I'm going from Palm Beach to Saint Lucie County or
you know something something, I'm going over to the well.
Speaker 7 (01:14:58):
They decided to move from war wherever they moved to
to Florida, right, they made that big life change because
they wanted that lifestyle at the time.
Speaker 6 (01:15:05):
I want to move to Florida. I love it, you know,
I like the area.
Speaker 7 (01:15:08):
Back then it was less expensive, you know, it was
more affordable climb, so people climb it. There were just
so many positives and that that's why people are leaving
to other areas.
Speaker 2 (01:15:18):
And is now a good time? Usually that the answer
to that question is if you're able to do it,
then it's a good time. Like if you want to
do it and you're able to do it, Like can
you sell your home in a specific amount of time?
If the answer that is yes, for you know, for
a number that you like, is the answer that is yes,
it's a good time. Can you buy where you want
(01:15:38):
to buy with either the financing or the cash or
whatever it is. Are you able to do that now?
And do you want to do that now? Well, then
it's a good time, right, And so what we really
but the day to day thing that we're doing for people, Jim,
is just helping them answer the question of can you
do what you want to do. We're not saying, hey,
you should be doing this, like no, it's like you
(01:15:59):
want to do this. We can help you with the
part of are you able to execute the plan that
you have in mind right? Or are we able to
get you into position where when the time is right,
like you want to do it, you can do it.
When do you do it? That's fine? But get all
everything else in place. And so it's hitting home for
me just like when we're talking about this because I
(01:16:19):
kind of like the prediction thing. I mean, we're just
talking about it, right, we have to fill up two
hours of show. It's interesting to us to kind of say,
what's going on in the markets, what's happening with interest rates?
That's interesting, but it's not really the thing that's driving
your movements.
Speaker 7 (01:16:36):
Or your decisions the people unless you're an investor, Okay,
if you're an investor, that's completely different. That's business right. Now,
you're talking business right. And then the house becomes a widget, right,
the property becomes the widget. Am I going to make
money off this widget? Am I not going to make
money off this widget? But if you're just a regular
person that needs a place to live, you want the
(01:16:57):
tax benefit.
Speaker 2 (01:16:58):
You don't even have to be regularly irregular.
Speaker 7 (01:17:00):
Yeah, you could be irregular person, right, But if you're
just looking for a place where you want to stay
and you own it and you get appreciation over time,
you know, and everything, those are really the bigger considerations.
But the first question has to be can I do it?
Can I see a path to get there it, is
it affordable for me? And can I do it? And
(01:17:22):
then that then you decide do I want to do it?
Speaker 2 (01:17:24):
First?
Speaker 6 (01:17:24):
Can I do it?
Speaker 7 (01:17:25):
Then if the answer is yes, then do I want
to That'll be the next question. Just asking this speaking
about questions about the market. Might this whole week, I've
been reading and hearing that the interest rates went down significantly,
and I was like when I when I heard it
(01:17:46):
on the State of the Union address, I actually, because
I've been so busy, I haven't really kept up that much.
So when I heard it in the State of Union dress,
I just stopped and I spent like twenty minutes googling
to find out what I had missed on interest rates,
and I could find nothing. The Freddie Mack report looked
the same. It didn't, you know, change dramatically. The T
bill moved around a little bit, but not the tenured
(01:18:07):
Treasure Bill, which really war sets. I didn't see huge drop.
I did see you go from four point five to
four point two, but now we're up to four point
three again. So it's just been bouncing around, but nothing
that I saw that would make the headlines I saw.
So I heard it on the State of the Union.
Then the next couple days, h take advantage of the
(01:18:28):
low interest rates, the low's interest rates we've had in
nine years, and take advantage of this and rEFInd your
house and grab the equity from your ome. And Forbes
was talking about a USA today, was talking about all
these people saying the drop of interest rates, take advantage
drop an interest rates.
Speaker 2 (01:18:44):
So that's so bad.
Speaker 7 (01:18:45):
I called up Mike during the week and I'm like, Mike,
what am I missing here? And Mike was like, let
me check and he was click clocking on the computer
and we didn't find anything. Right, I mean, so are
people calling you up based on these articles saying, hey,
I hear it's trying to get a REFI.
Speaker 2 (01:19:01):
I think, no, no, I'm not getting REFI calls. Okay,
but people I have preapproved Johnny's you know, just mentioned
something this morning like, hey, are what's happening with rates?
Speaker 3 (01:19:12):
Right?
Speaker 2 (01:19:13):
And so because I want to refresh on my app, Yeah,
he wants his app to be as accurate as possible.
And of course, and I said this to you, Jim,
I said, well, like this movement even it's like, okay,
so we're down what Freddy Mack came out, it went
from last week, so we definitely have been on a
every week. It's slightly down from the week.
Speaker 6 (01:19:33):
Just seven weeks in a row that we've been down.
Speaker 7 (01:19:35):
So our peak was for the year, right, our peak
was January sixteenth, and that was seven oh four. Yeah,
and now today we're at six sixty three, so we're
down point four. Right, We're down basically point four, which
is better than.
Speaker 2 (01:19:52):
Going up almost, yes, better than going up that peak.
But we'd like we're where we were in December October
where we were for most of twenty twenty four. And
so I'll tell you interest. So what I what I
said to you, Jim, is like, it's really like this
type of movement, this this subtle movement is only really
critical if you're considering locking in your loan or not,
(01:20:16):
which means you're in contract and you have a sale
and you're you've been floating, you didn't lock it at
one point, and so now you're like, hey, is today
the day to lock? Or is this week the week
to lock? Other than that, you're just kind of like
right in the market. It's like if they say rates
are down this week compared to last, does that mean Okay,
now I'm gonna call Mike and do my pre approve
on I'm gonna get out there shopping because the rates
(01:20:36):
are down. And it's like, well, no, because it could
be up next week. The exact sit where we could
be right where we were two weeks ago, right, And
that's easy to like, I wouldn't predict it with any certainty,
but it's certainly possible, Right, It's definitely possible that today's
rate has no bearing on what your rate is going
to be other than the general zone we're in a
general zone unless you're locking. Yeah, but if you're in
(01:20:57):
contract and you said, I've been floating because I knew
next week is gonna be good, and maybe maybe you
have the ability to predict that. Right, I don't, but
maybe you do. And you said next week, Mike, But
do we do it on Wednesday or Thursday? Okay, Well,
there's a big report coming out Wednesday, or hey there's
the last week. There was the presidential address, or here's
a jobs report came out on Friday. So if you're
(01:21:18):
watching it that closely, But it only matters if you're
ready to pull a tray on a lock or not.
So no, there hasn't been any crazy movement that has
REFI people calling me like, who were you know, maybe
they locked in. Let's say your rate of seven percent? Mm,
should you be refinancing at six and a half.
Speaker 6 (01:21:37):
Well that's what I wanted to ask you about.
Speaker 7 (01:21:39):
Let's just go over the numbers against that people understand
so they don't get taken advantage of by ski sketchy
mortgage people saying yeah, you know you can go from
seven to six point five? Lock it in, right, And
you're thinking, yeah, yeah, I'm gonna say, if I have
a point, you're all excited and you're paying thousands and
thousands in mortgage refive costs to save twenty five bucks
(01:22:02):
a month, right, So how how how do people make
a decision of financial decision on whether or not the
refi makes sense financially?
Speaker 2 (01:22:12):
So my my approach to that refinance analysis, and I
wish I had like, hey, if it's if it's one
percent better this, But there's really there's two approaches. Number one,
what is your goal in the refinance? Is your goal
to just lower your monthly payment?
Speaker 7 (01:22:28):
Yeah, So let's just not talk about equity because we're
going to talk about that different ok Okay, So let's
just say I want to refi to get a lower
rate and save money.
Speaker 6 (01:22:36):
I don't want to out of the house.
Speaker 2 (01:22:38):
So you can't. You're not you don't refy to get
a lower rate and save money, right, because you're if
you're just refinancing. If you when you say save money,
does it mean lower your monthly payment? Yeah?
Speaker 7 (01:22:51):
So let's say that I'm paying seven and a quarter
and now it is six percent. I could refi at
six percent, right, and my payment will drop.
Speaker 6 (01:23:02):
I'm making it up two hundred and fifty dollars a month.
Speaker 2 (01:23:04):
So I guess my category of save money is two things.
Do you want to lower your monthly payment or do
you want to pay the least amount of interest over
the remaining life for your loan?
Speaker 6 (01:23:12):
Right, because then you're going to talk about your starting
over again.
Speaker 2 (01:23:15):
Yeah, like long term savings. I don't want to pay interest.
I therefore I want the lowest three or it goes
just need my monthly slower.
Speaker 7 (01:23:21):
Because you're bouncing around, So let's go step by step,
so people really kind of understand this, right, So let's
say that I had it. I've been in my loan
for twenty for seven years, and I'm at seven and
a quarter Okay, so I've had twenty three years left
on my thirty year loan, right, I'm at seven a
quarter percent, but now I can refly to six percent. Yes, okay,
(01:23:44):
tell me the process. I call you up and go, hey, Mike,
I'm thinking of doing a refine and I want to
save money.
Speaker 5 (01:23:52):
Okay.
Speaker 7 (01:23:52):
I'm saying it that way because I know you have
two answers to this. I want to save money. So
then you would say, well, what kind of money do
you want to say?
Speaker 2 (01:24:00):
Do you want do you need? Is there is your
primary goal to lower your monthly payment, Like is the
budget tight and you just you need to get some
space for other bills or whatever. You just need your
mortgage pay to be as low as possible, let's save.
Speaker 7 (01:24:11):
My answer is because there's two answers that of the
easy answer would be yes, I just want to save
money on my monthly mortgage payment. But what happens my
answer is I just don't. I want to get the
best deal in my house, and I want to save
the most money possible. I could afford the payment I
have now, but I just want to save the most
money I can on my house.
Speaker 2 (01:24:30):
So if you want to save money over the long term,
so when you refinance, typically you are you want the
lowest interest rate possible. And I would say, if your
interest is saving money over the long term, you want
the shortest. You want to pay that loan off as
quickly as possible. So your analysis should be something like, Okay,
I can afford this amount of money. If I apply
(01:24:53):
that amount of money to my current loan, how quickly
will I pay off my loan? How much interest am
I going to pay over that period of time? Versus
the refinance if you what's that payment going to be
and if you pay that off over the term of
the loan. Right, So basically let's just let me back up,
pay off your continue to pay your current loan at
(01:25:14):
whatever the mortgage payment is compared to the new refinance loan.
How much money are you going to save? Serain scenario
eight a scenario B over the long term, right, because
starting a new thirty year loan when you have twenty
three years left, the interest rate has to the gap
on the industry has to be enough so that you're
going to pay less interest on the thirty year loan
than you would on the twenty three remain. So long
(01:25:38):
term analysis, you need a big enough gap reduction and
interest rate so that the new thirty year overall total
payments principle and interest is less than the remaining on
your currently you and.
Speaker 5 (01:25:49):
You got to incorporate the cost of the loan too
in that equation.
Speaker 2 (01:25:52):
And typically you are increasing your principal balance because you're
not going to come out of pocket for those costs.
You're just going to roll it into the new loan.
So have loan a that has a you know, principal
bounce of three hundred thousand, you're going to pay that
off over the next twenty three years. Versus loan b
which has a principal bounce of three hundred and ten thousand,
that are going to pay off over thirty years. So
(01:26:13):
you really need a significant difference in interest rate in
order to make that. So I would say half a point,
no one point, no one and a half, maybe two points,
you're entering that that zone. So if your goal is
to pay the least amount of interest of a life alone,
you need a pretty big gap on your interest rate.
If your goal is to simply reduce your payment, right
the budget is tight, I just I gotta maybe cancel
(01:26:35):
Mortgane insurance. I guess I need my monthly payment to
go down. Then it's less of a gap required on
the interest rate because you're stretching your payment out over
a new thirty years, so you get kind of a
fresh start a lower payment.
Speaker 7 (01:26:50):
So when we used to do the show with the
old mortgage broker back in twenty thirteen, twenty fourteen with
Josh Right, So when we used to do that, what
we used to always say was we had like this
mathematical formula for refi because it was really there were
a lot of good moments back then to refy, but
we also saw people getting ripped off a lot. So
(01:27:11):
we were trying to explain mathematically how to make some
quick decisions. So what we would do is, let's say
that let's say that it was costing you six thousand
dollars to refy the house, but you were saving one
hundred dollars a month on your mortgage payment, but it
was costing you six thousand to save that one hundred yea,
(01:27:32):
So we would say so that means it would take
you five years for you to break even on the
refi from the savings you're getting for the cost to
do the refi would take you five years. And we
used to say that if it was like twenty four months,
maybe thirty six months, that might be something you want
to consider. But anything over that probably don't want to
(01:27:55):
do it. It's probably not enough of the savings. And
I'm just using that is that formulough were off on that.
Speaker 2 (01:28:02):
No, that's part of the analysis. I use that a lot,
that type of break even math when I'm considering, like
when you're just doing your regular loan, do you want
to pay money to buy a lower interest rate. So
discount points or pay points for your rate. That one
is a pretty valid application of that analysis, right, which is, okay, Johnny,
give me five thousand dollars today, I'm gonna give you,
(01:28:23):
you know, one hundred dollars a month back because by
reducing your payment. So it's going to take you fifty
months to do that. So then how long is this
loan that we're talking about gonna live? Is fifty months?
Is you're going to be in this home and you're
gonna not refinance this loan again, you're basically gonna have
this loan longer than that break even period. Then yeah,
it was a good decision, right, because you're essentially you're
in the red up to the break even point and
(01:28:45):
then you're in the black. And then the longer the
loan lives, more in the black you get, the better
the decision it was. So I like that when you're
talking about paying points about it. I right, when it
comes to refinancing, you can do that analysis and say, okay,
well we're going to tack on ten thousand dollars of
principle to your loan. It's going to cost you ten
thousand dollars to do this refinance or five thousand whatever
it is, and you can do the same thing and
(01:29:06):
your monthly payment is lowering by one hundred dollars. So
you can do that math, and I can probably make
a convincing argument that hey, look this makes sense, right
we got a twenty four month break even, that definitely
you should be refinancing. But my brain doesn't allow that
type of analysis as the deciding factor, right, So, because
(01:29:26):
I can really then say it, but here's what you're
paying over the thirty years versus your current loan, and
here's where you really break even. And I'm telling you
if you refinance again, like you're digging in your home.
Speaker 7 (01:29:37):
From that original math that we were talking about, we
weren't considering how long you had the first loan. Yeah, right,
So if you only had the first loan for two years,
it's probably a much better idea to do the REFI. Then,
if you had the loan for ten years already and
you're going back into a thirty year loan that you're
basically paying for another you're adding on ten years to
(01:29:58):
the loan.
Speaker 2 (01:29:59):
I think there's there's an interest rate gap that achieves
both goals. Lower the monthly payment and paying less over
the life of the loan, right, the least amount of
interest over the life alone, And that's somewhere approaching two percent. Right,
So if you're at seven percent now and you're not desperate,
you just want to make a wise financial choice, you
(01:30:20):
need to be something like five percent to kind of
achieve both goals of monthly savings and long term savings.
So I would say we're not there for most scenarios,
but there are other scenarios, like people may just they
may forget about the financial novel. I just have to
get my monthly payment down, right, for whatever reason, just
(01:30:42):
the budget is so tight, I have to get the
payment down. Refinance is one way to do that, because
you're starting a new loan, new thirty year term. Sometimes
it's a cash out refinance, in which case you're not
just getting the new loan, and that's going to cost you,
you know, you're basically consolidating debt. That's the people who
are in a position where like they've got credit card
(01:31:03):
balances that are you know, what are interest rates on
cards these days, like high twenties, right, Like they could
be in the high twenties, and it's I mean it's
I don't know how that is allowed, but it is.
I think, yeah, twenty nine percent, like and you know,
you're like your retail, like your your department stores will
have cards that are in that zone. And you're just
(01:31:27):
your monthly expenses are too high and certainly and you
have equity in your home that you can tap into
and you can replace that thirty percent with that's like
you know, you're treading water, you're like about to drive.
You can replace it with a you know, six percent
or six and a half or seven percent, whatever it is.
And some people are in that scenario and it would
(01:31:49):
make sense because they just have to reduce their monthly budget.
And so yes, you're tapping into your equity. Probably not
the wisest financial choice in the long term, but it
allows you to keep you ahead above water.
Speaker 7 (01:32:00):
I want to talk about this concept of tapping into
your equity because I saw report yesterday. Now I haven't
done the research, so I just saw YouTube video on it.
The guy that does it, I'll mention it's Reventure Consulting,
and they do.
Speaker 2 (01:32:16):
They have a.
Speaker 6 (01:32:17):
Software program that analyzes what's going on in the market
for real estate activity. Real Wonky stats like, I like
the stuff. I like like saturation points and stuff like that.
Speaker 7 (01:32:29):
And what he's saying is is that there's a million
homes right now that are FHA financed, where they're in
some type of forbearance where the federal government, I haven't
checked this out yet, okay, but where the federal government
is actually basically supple supplementing the mortgage payments for these
(01:32:50):
subprime bar wherres. There's a million FAHA bars that are
active right now that are in trouble with their loan,
that are de linked with their loan, a million of
them that had the five to eighty credit score or
the five ninety credit score, and those ones are in
trouble right And they're saying that there's four hundred thousand
of those homes that should be on the market right now.
(01:33:12):
And I was a little surprised because four hundred thousand.
I know that our normal sales are about six million
a year of sales in the United States for housing
is about six million transactions a year. So four hundred
thousand is a big chunk of six hundred thousand, right,
That comes out to eight percent something like that, Yeah,
(01:33:34):
seven eight percent, So that's a big chunk. So it
would be very different if those if we had eight
percent more properties, the values win and went up as
fast when we were seeing those increases because we would
have had more inventory. Right, So he's saying that we're
on the verge of having some type of financial meltdown
(01:33:54):
in the mortgage stuff. I think that's a little a
little out there. That part I think is a little
too scary click baity. But if he's right about these
people having problems, right, financial problems, that's what I want
to get into right now, just real quick. There's a
lot of people out there that are having problems with
their credit cards and starting to get overwhelmed and things
(01:34:15):
like that. And maybe you do have to tap into
your house for equity. We're not a show that tells you, Hey,
you want to go on vacation, go take the money
out of your house. You want to buy a boat,
go take money out of your house like a country
what I did back in the day, remember country, and
tell you how to use your money in all these
crazy ways from your house.
Speaker 2 (01:34:33):
Right.
Speaker 7 (01:34:34):
But when you get into very lean times, sometimes that
equity of the house that you built up over time,
you do need to tap into it. In order to
just get you through the rough times. But here's the mistake,
and this is the tip I want to leave with
people today. Here's the big mistake that I get when
I get these calls. Right, Hey, Jim, I want to
(01:34:56):
do a REFI I'm in trouble with my house. I
got to call him this. About four weeks ago, the
lady called me. She hasn't really been making her payment.
She's very behind on her payment.
Speaker 2 (01:35:06):
Her mortgage payments.
Speaker 7 (01:35:07):
Yeah, because what she did was she was paying the
principal and interest but not the ESCRO payment. Okay, but
that doesn't count as a full payment, so they were
still dinging her as if she was missing payments. Her
attitude is, well, I was paying the bank, you know,
I'm giving them their principal and interest. I'm like, no,
your contract says that you're supposed to give them the
escrow too, and you can't uti latterly just decide I'm
(01:35:29):
not paying the.
Speaker 2 (01:35:30):
ESCRO this month. You can't just decide that on your own, right.
Speaker 7 (01:35:33):
But in her mind she thought that that was all
legitimate because the bank was being paid their interest and
their principal every single month. Yeah, and I think so,
So what happened was she called up and she has
equity in the house, and she says, I want to
tap the equity to get myself out of trouble. And
of course what we know is if you miss, if
you're thirty days laid on a payment or longer, you
(01:35:57):
can't get a refine, right, you really can't get you
got to refi at that point you have to wait
for twelve.
Speaker 2 (01:36:02):
Yeah, there's a little bit of nuance. So it depends
on whether it's like Fanny Freddie FJA whatever. So there's
a little bit. Let's just say this, if you have
a mortgage lead, a thirty day mortgage late in the
last twelve months, it is going to seriously hinder your
ability to get approved for a new loan. And it
could be that like one thirty days allowed, but a
sixty days not. So there's nuance there depending on the program, Jim.
(01:36:25):
But essentially, if you got laid on your mortgage payment
within the last year you got you it's a challenging
road for you if you want to get approved for
a new loan.
Speaker 7 (01:36:33):
And that to me is so depressing for me, feeling
bad for the customer. It's like, oh my gosh, you
just one payment late, right seven months ago, and now
you can't tap this money that you've worked very hard
to buy down, Like that equity is yours.
Speaker 2 (01:36:49):
Well there's now you can't touch it.
Speaker 7 (01:36:52):
But you can't touch it and you need it, and
it's so frustrating when you're in that situation. When I
talk to those people, it's really really frustrating. But how
when you're saying there is a way, what do you
sell the house?
Speaker 2 (01:37:03):
Oh?
Speaker 7 (01:37:04):
Yeah, right, the only way what you have that house,
which is what I had the conversation with that lady.
I say, like, the best thing you should do, I said,
the best thing you should do is get caught up
on your payments. I go catch up on your payments.
If you can't do that, then the best thing to
do is to sell the house. And Mike's right, And
the reason why is at least that way, you're keeping
(01:37:25):
the equity that you work so hard to get. You've
been paying down that mortgage all those years, you're reducing
your principle. The house was growing in value because you
were making your payments on time and paying your taxes
and your insurance. So you deserve to have that money.
But when you become late. What happens is the banks
start taking out all of these what I call garbage fees,
(01:37:48):
and they just start stripping your equity out more and
more and more. So if you get in trouble like that,
you can't tap into the equity. My first question is
my first thing is beg bar and steal from friends, families,
whoever you have to to get back into compliance with
your mortgage. Do whatever you have to do, even have
to borrow money from friends, just to get through that.
(01:38:11):
And then figure out a way to refi later or
sell the house and keep as much of the equities
you can and don't let the bank take it from you. So,
if you're in trouble with your mortgage or in trouble
with your bills and you're thinking I want to tap
my mortgage in order to help out with the other
issues in your life, don't miss your mortgage payment. Don't
(01:38:32):
miss your mortgage payment before you do what you have
to deal with and give us a call and we'll
give you the advice that we have for free.
Speaker 6 (01:38:40):
Yeah, we're going to give you. You know, we'll work
that out with you.
Speaker 2 (01:38:43):
Mcgley posted on here she goes that's what we did
a helock a year ago, and it's making me think, like,
if you can see some trouble, or maybe if you can't,
maybe you just want to be prepared. If you're in
good standing now and your income is right and your
credit is right, there's no really no harm in getting
(01:39:05):
approved for a home equity line of credit. And it's
just like a big fat credit card. You don't have
to use it, or you can use it pay it back,
but it could be there as a backstop for troubled
you know, trouble waters ahead, and so you can get
out in front of that potentially and just have that
there if you need it. Now, if you're the type
(01:39:26):
of person that likes to go to the hard rock
right or the you know, the dog track, like, you
could get yourself in trouble and maybe that boat that
you had your eye on maybe oh wow, I can't
do it. So you kind of need to like know
yourself a little bit. Yeah, but that could be something
where if the things are right, but you know, you know,
maybe you're in a maybe you're a federal employee and
you don't know if you're gonna have a job in
(01:39:46):
six months or not. Like maybe it's a time to
at least have some sort of backup plan with access
to money, access to your equity while you can get
approved for it. So I'm happy to talk to people
about that, even if it's like, hey, go to your
credit union to get that out.
Speaker 7 (01:40:01):
Yeah, and that'll that'll be the answer. A lot of times,
Michael say, hey, the best thing for you is a
home equity line of credit. I'm not the best person
to do that. You should go here, here, or hear.
And that's what's great about this team is that we're
going to give you the device you need, not what
we want to do, what you need.
Speaker 10 (01:40:16):
If you've got five or ten thousand dollars in credit
card debt, could you use a heelock to pay that
off so that you can pay five six seven percent
interest on a helock versus twenty nine percent on a
credit card.
Speaker 7 (01:40:27):
Yes, yes, yeah, And so the helock is basically like getting,
like Mike said, a revolving credit card based on the
equity or a home and if you don't use it,
you don't have to pay anything and you'll only use
what you pay for. So if you have a forty
thousand dollars line of credit, but you've only used five thousand,
you're only paying the interest on the five thousand, and
(01:40:49):
then if you pay that down, you pay less less
interest and your payment gets lower, and if you pay
it off completely, you're down to nothing again. You don't
have to pay anything now.
Speaker 2 (01:40:58):
And a lot of times the home equity doesn't call
you any money to do so as long as if
you can get approved for it, it's not a bad
thing to set up. I just, you know, I try
to be cautious with this stuff, like financially responsible. So
if you're in if you've built that that type of
credit card debt, is that because of spending habits or
is it because like maybe you just had some change
in your life that call you had to dip into
(01:41:18):
something to pay the bills. So you kind of have
to really like analyze yourself a little bit. And because
this will give you an opportunity just like anytime you
do a debt consolidation cash out, like nobody's forcing you
to cut up those credit cards or cancel those cards, right,
so you you you basically open up the opportunity to
re establish, you know, dig yourself a little bit deeper
right in the death thing. So you do have to,
(01:41:39):
you know, think about that.
Speaker 5 (01:41:40):
You got to be disciplined. Does it affect the.
Speaker 3 (01:41:45):
Outlook of debt to income even though it's different, So
the debt's going to remain the same, but on the
credit card versus the he lock, is it viewed differently
by the lender.
Speaker 2 (01:41:56):
It's not viewed differently as far like a risk assessment. No,
but definitely they're like, if you're talking about qualifying, like
a debt to income perspective, Yeah, whatever the payment is,
So I would say the payment is important to debt
to income if that's part of some analysis of getting approved, right,
So can you do the helock will depend on debt
(01:42:17):
to income? If you if you're trying to get you know,
a five hundred thousand dollars line of credit, right or
a fifty thousand dollars line of credit, whatever it is,
there's going to be some payment that the lender is estimating.
Speaker 6 (01:42:29):
Almost like student loan.
Speaker 2 (01:42:30):
It's like if you if you get a fifty thousand, okay,
well here's the max payment it could be we need
to make sure you qualify for your existing obligations plus
that potential payment. So that's just part of like can
you get approved for the home equity line. But as
far as analyzing whether you have a helock or a
credit card for any other type of loan application purposes, No,
there's no difference, is it?
Speaker 5 (01:42:50):
Is it wise though, so if you're massaging it a
little bit.
Speaker 3 (01:42:53):
Let's say let's say you're on the on the cusp
as far as your debt to income, and you have
you have five credit cards in your you know you're
you o all five pretty good amount and you're getting
hammered on your interest rates. Yes, you know your monthly
payment on all of them is pretty high. Again, just
trying to manipulate a little bit. I know it sounds weird,
but if you slide that into a helock, you're.
Speaker 2 (01:43:14):
To lower the mandatory obligation you are, so you're positioning changes.
And even if let's say that the new helock payment
it's three hundred fifty dollars a month, but you got
six hundred dollars of credit cards, well, you don't qualify
with a nine hundred and fifty dollars payment like the
combined So I'm going to force you to use some
of that helock money to pay off these revolving credit cards.
(01:43:36):
So that you qualify, yeah, right, so you can use
that as a tool to pay off one debt so
you qualify for the new one. A lot of people
do that with the car payment. I would really advise
against the debt consolidation and including any what I'll call
an installment loan, meaning you're like a car, you're paying
it off over a period of time because it's short term.
People do that like, Hey, I wanted to consolidate. I
(01:43:57):
got a seven hundred and fifty dollars car payment. I
could really, you know, use that money elsewhere. Okay, but
you're going to stretch out your three year loan now
to a new thirty year on your If budget is
the biggest concern, you can do it. It can be
a way to solve that issue, right, But it's not financially.
Speaker 7 (01:44:14):
It's like, and here's another thing I want to talk
about helock because this actually happened to me in real
life during the crisis. So I had a helock on
my house back in the day, and I had perfect
payment history on it and everything, and when the economy
got bad, the banks started cutting off the helock. They
can do that too, and they have the right to
(01:44:35):
do that. So they can cut you off at any time.
It sorry, yes, yeah, so I.
Speaker 2 (01:44:42):
Had when home value started dipping. These member these helocks
are basically a second position, so it's risky for them
if you default, they're have a hard time getting getting
their money back.
Speaker 7 (01:44:53):
And so what happened with me was when the economy
got bad, I only used a fraction of the helock money.
But I always thought that that could be my little
reserve if I needed, if I got in tough times.
And then it was taken away from me, and then
what happens is what was left, whatever balance I had left,
it turned into a hard second mortgage basically where you
(01:45:14):
couldn't do the revolving credit anymore. You owed whatever you owed.
Speaker 2 (01:45:18):
At that point, it converts to the payment and they.
Speaker 7 (01:45:21):
Do not give you any options, like hey, this is
what we're doing to you. And I called up as
like hey, what the heck's going on, They're like, sorry,
we have the right to do this, we're doing it.
So you gotta remember the helock. It isn't even though
you're getting the terms and everything when you're there. If
things get really bad nationally or for a specific bank,
(01:45:41):
they could take out these terms and change.
Speaker 3 (01:45:43):
I can understand shutting off the speaking and being like
you don't have accesses anymore, but then changing the terms
of how you pay it back like overnight kind of sucks.
Speaker 5 (01:45:51):
Yeah.
Speaker 2 (01:45:52):
Yeah, And it's so if I don't want to advocate
this as a roll all your dead into this new
he and max out the helock and then but your
your payment's really low because it's in its open you know,
it's in the draw phase, not the repayment phase, because
at any point they could cut off the draw phase
and put you into the repayment phase, and then you're
going to be kind of right back where you were
(01:46:13):
and there was financial difficulty, which is why you kind
of had to shift it to the helock in the
first place. So it's easy to like let get out
of control with it. And if it's too late, like
if you let's say you had a job change or
income reduced or whatever, well you may not even qualify
for the helock at that point. So it's if you're
going to do it, like do it while the times
are good, just so you have it. Don't use it though,
(01:46:37):
orn't consolidate. I don't know.
Speaker 7 (01:46:39):
So, so if anybody's out there and they're starting to
get into financial difficulties and they're not, and it's they
have real estate related questions revolving this, involving their other
debt plus real estate.
Speaker 2 (01:46:53):
Give us a call.
Speaker 7 (01:46:54):
We'll get you to the people that that will give
you good, honest advice. If me Mike can't do it,
we always got the law office a polycrasker, and we
have debt heelper dot com right, which is a free
nonprofit service that can do credit analysis for people and
help them. And it's a nonprofit group. So we'll get
(01:47:17):
you the resources you need if you have problems. Whatever
you do, don't stick your.
Speaker 2 (01:47:20):
Head in a hall.
Speaker 6 (01:47:21):
Yeah, get in trouble.
Speaker 7 (01:47:23):
And then when you're squeezed so much and you can't
breathe anymore because your head's in the hall, then you
pop up and go, hey, I need help, Because by
then we're probably not going to be able to.
Speaker 6 (01:47:32):
Get you all the help that was available to you earlier.
Speaker 7 (01:47:36):
The other thing I wanted to bring up today is,
and I'm a little depressed about this because I read this.
Speaker 2 (01:47:40):
Late last night.
Speaker 7 (01:47:42):
It looks like a lot of the student loan programs
that we've been using all of these years to help
hundreds and hundreds and hundreds of people throughout the years.
Speaker 2 (01:47:51):
Is going away?
Speaker 7 (01:47:51):
Oh no, And not only is it going away, but
if you're in the program, they're going to kick you
out of the program and make you go back to
the original thing. There don't end the show, I know, right,
So can you believe? So they're they're cutting back these programs.
It's called income driven repair, income driven repayment i I
(01:48:13):
d R or whatever, and a lot of those programs
are going away.
Speaker 2 (01:48:16):
Now, there was the waste, fraud and abuse. I don't I.
Speaker 6 (01:48:19):
Don't know, But in twenty twenty three, Biden.
Speaker 7 (01:48:24):
Broadened the broaden the ability for people to use these
programs because the federal government wouldn't the Supreme Court wouldn't
let him do what he wanted to do, so we
did it a different way. That became stripped out right away.
That program, the programs you created twenty twenty three.
Speaker 2 (01:48:40):
That went away. But I was like, okay, it does.
Speaker 7 (01:48:42):
I was thinking when that happened, no big deal, because
we've been using this program for since since we started
the show in twenty twelve, and all those programs still exists.
Speaker 2 (01:48:51):
No big deal. There's also kind of an assumption that now,
if you're in it, you're gonna like, right, take it
away at me. Right.
Speaker 7 (01:48:56):
But and now it looks like some of this stuff
is going to be taken away, and you know what
does that mean? They're going to take away from the
government people like the teachers and the firefighters and police
officers because you know there was a special program for
them for this. You know that that's how a lot
of these student loan programs were graded, were specifically.
Speaker 2 (01:49:15):
For common sublic But I don't know if that but I.
Speaker 7 (01:49:19):
Don't know what's going to happen with that. So uh,
we're going to keep an eye and see what happens
with that. But that's another resource that probably isn't going
to be available for people out there. And I almost
don't know if I want to put people into the
program because it's almost going to be like false hopes. Hey, congratulations,
she got into the program, and then six months later
they say that programs ended.
Speaker 3 (01:49:39):
Well, I guess what it really matters is if you
need it to qualify for a loan, get it qualify. Yeah,
that's then Mike says, whatever happens after you're the loan?
Speaker 2 (01:49:48):
Yeah, yeah, I mean it doesn't hurt to get into
it while it while it exists. But it's going to
be the different if you're like, you know, thirteen years
into your twenty year and you're you can see that
debt forgiveness at seven years away and then all of
a sudden that's gone myrtle, that would be that would
be tough.
Speaker 5 (01:50:05):
Hopefully that's not the case. Geez, yeah, where are you
reading this?
Speaker 7 (01:50:09):
It was your real article? Really, I don't remember last time.
I thought I saved it, but I didn't. And when
I read it, I read it like twice because I'm like,
I can't believe this.
Speaker 3 (01:50:17):
Well, and let's just hope we'll file this under one
of those things that they're just kind of speculating about
and it just catches some wind.
Speaker 5 (01:50:23):
It's a good headline and it doesn't actually come.
Speaker 2 (01:50:25):
Oh yeah, that's on advocacy, right, Like my people might
you know, start saying, wait a second, and we can't
let this happen. Right in Bulk and Mass.
Speaker 3 (01:50:34):
Thank you very much for being with us on a Saturday.
Always remember Florida Talk real Estate is the dot com
here one stop real estate shop. You need prose pros
when you are buying a home, selling a home. Stuck
with a home, you don't know what to do dealing
with things like refinancing, he locks, What do I do
for my future financially for me and my family? You
got to have professional guidance and if you need a
(01:50:55):
you need somebody. I'm telling you having a team of
prose is what you really need. Florida Talk real Estate
dot com offers it. Know what, use it, love it
share Mike Row the mortgage guy from the mortgage firm.
Speaker 2 (01:51:05):
Have a great weekend you too, Thanks everybody.
Speaker 5 (01:51:06):
Jimmy D jim Depola, Florida home Pros. I hope you
have a great weekend.
Speaker 2 (01:51:10):
Thank you. Happy South Florida everybody.
Speaker 5 (01:51:12):
JIMMYF enjoy your weekend. My brother as well. Buddy, We'll
talk to you next week. Thank you very much. Florida
Talk real Estate back at it next Saturday. See you then,
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