Shout outs. New vs resale. Interest rates.

Episode Transcript

Speaker 1 (00:15):
Navigating today's real estate market can be tricky. Want to
buyer sell a house, finance or insure a house, or
stuck with a house.

Speaker 2 (00:22):
And don't know what to do.

Speaker 1 (00:23):
Florida Talk real Estate has been your local one stop
real estate shop since twenty twelve. Get the advice you
need from your local real estate pros. Here are your hosts,
Jim Depola and Johnny c Live on real Radio.

Speaker 3 (00:36):
So that's what you meant when you were appointing at me.
Welcome to Florida Talk real Estate. My name is Jimmy
not happy to be here with you today, and boy
do we have a star studded lineup today for you.

Speaker 4 (00:46):
Of course, A good.

Speaker 3 (00:48):
Man and the leader of the pat Jimmy d is here.
But we got Mike Row from the mortgage company. Mike,
how you doing today, buddy? I'm doing great good.

Speaker 4 (00:57):
Did I say the company right?

Speaker 5 (00:59):
The mortgage firm, The mortgage firm, mortgage firm, very official,
very official.

Speaker 4 (01:04):
Thank you very much. I hear it every week. You
think I'd memorize that by now?

Speaker 5 (01:07):
It's weird. I tell people all the time. There's only
so much space left in your brain to remember stuff,
so it's just not one of those things you can fit.

Speaker 3 (01:14):
I think it's the mortgage guy, right, that mortgage might
be the mortgage guy, the mortgage guy with the mortgage firm,
the mortgage firm.

Speaker 4 (01:21):
Well, that's very important. We'll get that out there.

Speaker 3 (01:23):
Another one that's very important to get out there is
Bright Way Insurance Juno Beach. That's the one you need
to know about. Ross Kamarinets is with us. Ross, how
are you today?

Speaker 5 (01:32):
Well, good to see everybody.

Speaker 4 (01:33):
All right, good to have you here with us today.

Speaker 3 (01:36):
Also a special guest that we get to see from
time to time, Jared Perry with the Ferry Group. Did
I say that right? Yeah, Perry CPA. All right, Perry CPA. Jared,
good to see it. By the way, is that your
rivian outside?

Speaker 2 (01:48):
Do you like that?

Speaker 4 (01:49):
I've always been curious about that.

Speaker 2 (01:51):
I absolutely love it. Before I didn't have the charger,
it was kind of a pain foundations. But once you
get the charger at your house, it's it's perfect. You
know what.

Speaker 3 (01:59):
I don't see how any I mean, if you go
electric and I'm not going to get into the politics.

Speaker 4 (02:03):
But if you do that, I don't see why you
wouldn't have that at home.

Speaker 2 (02:05):
I never go back.

Speaker 4 (02:07):
Yeah, I understand.

Speaker 5 (02:08):
How long does it take the charge? Just like off
standard you.

Speaker 2 (02:12):
Get like well, with the charger at the house, you
get like twelve to fifteen miles an hour charge, So
it takes a little bit. You got to leave it
in overnight, you know, and you can get up till
it goes like three hundred miles with a charge.

Speaker 5 (02:24):
Yeah.

Speaker 2 (02:24):
Yeah, so it's not too bad.

Speaker 3 (02:26):
Your range on that is about three hundred yep. And
then of course, so that's just one ten charger just
to a wall.

Speaker 2 (02:35):
Yeah yeah, no, no, no, you have to get one of
those fifty the big ones. Okay, if the FPL comes
out and stalls, okay.

Speaker 3 (02:42):
Maybe there's some other ones, because I think you can
get ones, and I don't know if it's just strictly Tesla.

Speaker 5 (02:47):
That will charge fast charge.

Speaker 2 (02:49):
Oh yeah, there's there's the I forget what they're called,
the fast charger. Okay, yeah, right, not one of those yet. Well,
we are.

Speaker 3 (02:54):
Here and Jim is clearly frustrated that it looks like
so he's walking around.

Speaker 4 (02:59):
Oh, I think he's trying to figure out what's wrong with.

Speaker 2 (03:01):
Jerry's coming over here. I thought he's coming for me.

Speaker 3 (03:03):
His camera's a little bit slow, and that's been a
little issue here from time to time. But welcome and
glad you're here. You got any questions or comments for
the show? Eight seven seven nine to two seven six
nine six nine eight seven seven nine to two, seven
six' nine six.' nine my quick question before we jump
into some, other STUFF because I know jim's trying to,

(03:25):
get ready so we'll stall a little.

Speaker 4 (03:26):
Bit, here yeah what is the interest rates done? This
week anything that?

Speaker 3 (03:29):
IS worthwhile i know that the things have been going
back and forth a little bit on the, political SPECTRUM
and i know we don't get, into politics but just
from a Standpoint of.

Speaker 5 (03:38):
House, politility, Yeah yeah so, THERE'S uh, i mean there's
the headlines would have you thinking, one THING but. I
don't i don't think there's there was probably a slight
increase week. Over week let me just bring it up, real,
quick okay and see. What happens seven point oh one
to seven point. Oh, three no we were still below
seven oh mortgage rates, moved down, actually down how about?
You down they went down point zero four at six point,

(04:00):
Eighty five so we're at six point eight nine last
week and now This, last thursday six point, Eighty five
so a little bit of. Downward movement but it's good,
for headlines but it's not, you know it's not moving
much for the real people, out there.

Speaker 4 (04:15):
And it's not changing, the market so rarely not having
an impact on the.

Speaker 5 (04:18):
Housing, Marketing NO and i think, you know one of
our constant themes is like the. Interest, rate yes, It's,
important yes it determines like if you were to take
this thing over, thirty years like, How long but it's
not the most important factor for your decision making to
buy a house. Or not shouldn't be what it. Shouldn't
be top on. The list top on, the list, of

(04:38):
course is like what house, can you, you know find
a house that works for you in a payment that you?
Can afford are?

Speaker 4 (04:43):
You ready are you ready to buy? A house, i
mean is that what? You want is that your?

Speaker 3 (04:47):
NEXT move i think you know some of those. Type
things do you need to upsize because your family, is
growing or do you want? To downsize, you know that
shouldn't be the. Key focus and a lot OF times
i think you're right. That, People yeah. I'm, considered yeah.

Speaker 5 (05:01):
WE talked I think jim wanted to actually talk about
that as part of the show today is like what what?
You know when's a good time? To buy? Are you
what are you? Waiting for you know in, that process
and if you're waiting for interest rates to come down
or you're waiting for prices to, come down, that's fine
but you kind of have to know what that. Target
is and ultimately usually it's just it's, a, Payment right

(05:23):
so you're waiting for a payment. The house you want
a payment you can qualify for and that is affordable
and so rate is part, of that, you, know formula
that decision, making process but not the most important. For
sure the most important is it doesn't make sense for
you to buy a house?

Speaker 6 (05:39):
Right?

Speaker 5 (05:39):
Exactly yeah right? For you? Your family what are?

Speaker 4 (05:41):
Your needs what are?

Speaker 5 (05:43):
Your needs are, You good.

Speaker 6 (05:44):
Jim or you want Us to i'm kind of back
that we're having a, camera problem LIKE Your, Facesuf, mike,
Yeah yeah i'm having a Problem with. Jared's camera i'm sorry.
About that Guy's Happy. South. Florid everybody hope everything's go
well better than what my technical difficulties in the studio are.
Right now but we got a really great show today

(06:07):
because We Have jereed perry From THE perry's. Cpa group
we're going to talk about Self Employed Summer, buyer's guide
really important to. Talk about it's great To have mike
here so we can get all the perspectives real to
accountant and mortgage a loan officer to make sure that
you do the things you need to do to buy.

(06:27):
A house self employed people they have a lot more
problems usually than people that just have A straight w,
two job and sometimes they just throw up their hands,
in frustration and we're going to talk about how to
solve the problems to make that happen. For you we're
also going to be talking a little bit about what's
going on in the market. IN general i really don't

(06:48):
Like what i'm reading in the headlines because the headlines
aren't as necessarily reflecting what's happening in real time. Right
now everybody's projecting what they think it's going to be in.
The future, good, batter indifferent and it's all projection and
not like what's happening right now in. This market so
we're gonna talk a little bit about that and how

(07:09):
that can affect your decisions and what you want to
do in. The future and if you don't make the,
right decision you could. Get, BURNED also i wanted to
do a, couple shoutouts if we, DON'T mind i wanted
to do a shout Out to.

Speaker 5 (07:23):
Sean.

Speaker 6 (07:23):
And janet they're my latest sellers. And buyers we just
did a pre signing on their closing yesterday in their
Home In. Boynton, beach mike this was that, three bedroom
two bath home with a three, three bedroom two bath
Home In, boyton beach single family Home In Boynton. Lake's

(07:44):
north it took us about ninety days to sell. That
property we sold it a little bit Lower than, liss
price probably within the range or what people are Getting below.
Liss price the average home right Now In Palm, beach
county Well Actually south lord of the whole six counties,
we cover is about ninety four percent of the actual.
List price so if you put a house on the

(08:05):
market at, one hundred you should expect on average to
get about ninety.

Speaker 2 (08:08):
Four thousand that's assuming you're pricing.

Speaker 6 (08:10):
It, right, well yeah it's, gonna say but you don't
put your house at. A million if your house is
worth five, HUNDRED thousand i think you're going to get Nine, ninety,
yeah yeah.

Speaker 5 (08:20):
YEAH exactly i thought you were giving out a whole.

Speaker 6 (08:22):
New, strategy yeah here's a fast way to make some
fast cash on. Your house so they are. Seller buyers
took a little bit of time to sell, their house
but they got what. They wanted they went into contract
in a Home. IN tennessee i helped them place them
with an agent. Up there it was a little difficult at. The,

(08:43):
BEGINNING well i wouldn't, Say difficult but the funny, part
was and this is, Very common Janet and sean are at,
BASICALLY retirement ah or close, to it and they Retired
Of south florida and they wanted to get out, of
here so they decided they wanted to Move. To tennessee
they were looking at a couple, OF states, i think
but They. Chose Tennessee but tennessee's very. TAX free i, love, It,

(09:04):
RIGHT yeah i tell people that all. The time, in
fact we had a couple that was going to Move
to alabama, and yeah and where they were moving it
was so Close. To Tennessee and, i'm like why don't
you just go sixty miles north to save yourself a lot?
Of MONEY and i go To. THANK jarrett i learned
all that Stuff. From, jarrett yeah so.

Speaker 2 (09:22):
With why you're even more powerful Than most most realtors
have no idea yeah.

Speaker 6 (09:27):
About that most people don't know which ones don't have income,
Taxes around florida being one. Of Them so Sean and
janet weren't sure Where in tennessee they were going. To
live and that's a pretty, big state so, you know pretty.
Long state so it isn't like you could just pick
one agent and they're going to cover the. Whole state
so we broke it down to east. AND west i

(09:49):
interviewed agents from, both areas gave them and explained, to
them we're not Sure where Shawn and janet want to,
move to but if they moved to your area and
you do, good job maybe you'll be. The agent so
they both started sending. Them properties they went up a
bunch of times to check, things out and then They Decided.
Eastern tennessee so we Told The western, tennessee thanks, great

(10:10):
job and they did do a, good job but, you
know it isn't the. Right area and then they found
a home way before we went under contract with the
home that they, were selling but we got lucky and
the contract Up. In tennessee they could get their, deposit
back but they gave the people Up in tennessee gave

(10:32):
us down here a certain period of time to sell.
THE house i think we made it with three days,
to spare because, if not it was not gonna they
were going to cancel. The contract and they already told
us they're not. Re upping so we got in with
three days left. To, spare wow after being ninety days on.
The market so it was. Very crazy it was a very.
Crazy one So there sean. And Johnet if i'm not

(10:55):
mistaken or driving up, right now they might be listening
to the show right now as they're driving. Up, there
uh they're going to be closing on their new House,
on monday so they're. NOT homeless i didn't make them homeless.
At all and last night they did the same Thing
that Greg and, diane did who were seller buyers. FOR
us a couple about a month and a half ago.
Or so they're camping out in their. Living room they

(11:17):
have an air mattress and two camping chairs and that's
their furniture in. Their house. WE part i WANT to i, Can't,
REMEMBER no i can't remember the name of. THE city
i wanted to say It was, pigeon Something but i'm
not sure it might be your falls, or something pigeon Something,
For yeah i've heard. Of that i've heard.

Speaker 2 (11:38):
Of that i've been. Up there it's been, a while
but my brother played Football For East. Tennessee state, oh
cool a little.

Speaker 6 (11:43):
Familiar, with wow that's. PRETTY wild i think one of
my former realtors used to be played. FOOTBALL there, i,
THINK yeah i, don't know but. Uh yeah So Congratulations,
jana sean thanks so much for trust us to get.
It done it's done now it's over. Seller buyer we
specialize the, seller buyer which means that you need to

(12:06):
sell the house and take the money from that house
in order to buy the. New home and you can't
do it without. The money so it becomes that chicken and.
Egg thing HOW am i going to put my house
on the MARKET if i Don't know i'm going?

Speaker 2 (12:16):
To buy if you got to that ninety day period
where YOU gonna, i mean were they not going to
fall go through with? The purchase.

Speaker 6 (12:24):
They couldn't the sellers, were saying, you're out see, you
later you're.

Speaker 5 (12:27):
Able to sell to. Somebody, else yeah they're going to.

Speaker 6 (12:29):
Sell the house.

Speaker 2 (12:30):
They're buying you have to tell the seller, of, it,
like hey this is contingent on the sale of my.

Speaker 6 (12:35):
Other, property yes so that's what, you do and you
if sometimes you have to do it, both ways where
when the buyer comes for, your house you got, to,
say hey, Mister buyer i'd love to sell the house,
to you but you've got to give me time to
find a. New home AND if i can't, find one
you're going to allow me to get out of this
Contract so i'm. Not homeless and then you go to

(12:56):
the seller that you're, Buying, from hey if my house,
doesn't close you've got to be able to let me
get out of. The contract so you.

Speaker 2 (13:03):
Have to if there's people more than you just looking
at the house, you're buying you have to offer more
because somebody else would just. Close anyway not.

Speaker 6 (13:13):
In, today's market it's. Very slow the only REASON why
i heard Up in tennessee they took. The offers the
house was on the market for quite a while with.
No offers so their attitude was let's give it, a.
Shot right they, were like, h yeah they had nothing
to lose in.

Speaker 5 (13:27):
Their attitude they finally got a, bite there just took
a while to reel.

Speaker 6 (13:30):
It in and that's what we're going to be talking
about later About The Summer, buyer's guide we're going to
be talking about. Self employed but it is a really
great time to buy now because of the. Seller motivations
we haven't had seller motivations like this. Twenty thirteen i'm
thinking twenty thirteen because twenty fourteen is when we started

(13:50):
going up, in prices so twenty thirteen was the last
time we had sellers. This, motivated now not all sellers.
Are motivated some of them have their house at really.
High price they're not going. To budge they're the kind of, people,
saying WELL if i get this for, The house i'll.
Sell it but they don't really. Have motivation it's more
about what they can get than why.

Speaker 7 (14:10):
They're selling they'll if somebody off right, to them but
they're not dying to get.

Speaker 6 (14:15):
Out right so if you give ME what, i want and,
you know this isn't A g if you give ME
what i want kind, of market, you know it. Just
isn't this is a MARKET where i just got off
the phone with my coach yesterday who, basically said if
you want to sell your house in, today's market you've
got to be the lowest price home in. The neighborhood
that was pretty depressing to Me because i'm pretty good

(14:37):
on my comps and we were going over three properties
that we were thinking about price adjustments ON and i
had IDEAS what, i thought and he was much LOWER than,
i Was and, i'm like what's. Going on he's like
he coaches people throughout. The country it's like almost. Every
market there's very few markets that aren't going Through what
florida is.

Speaker 5 (14:56):
Going.

Speaker 6 (14:56):
Through now that, BEING said i know that sounds really
doom and gloom. For sellars we still had almost fourteen
hundred homes Sold. In may at the beginning of, the
year we had barely one thousand normals fifteen hundred, Sixteen
hundred so to be at almost, fourteen hundred that's not a.
Bad month we've had way worse months as far as

(15:17):
sellers getting their. Houses sold That's A Palm beach, county
statistic by, the way but those statistics are pretty much
the Same Throughout south florida right now.

Speaker 5 (15:28):
Is kind of different than everywhere.

Speaker 7 (15:29):
Else right now compared to the rest of.

Speaker 6 (15:32):
The, country well no Parts, of texas all the places
that were BOOMING, during covid they're all. Slowing down the
worst because, you know you get the highest highs and the,
lowest lows right so we're experiencing rougher times than other
parts of. The country there are strong parts of the country.
Right now, i'm Here like i'm Hearing that connecticut's really strong.

(15:54):
Right Now the midwest is very strong, right now.

Speaker 2 (15:58):
Like luxury homes or, because.

Speaker 6 (16:01):
Well neighborhood by, neighborhood jared because Even In, south florida
some neighborhoods, are, Like really i'm really, seeing actual real
dec like live DECLINES that i haven't seen since the
crash when we have. Before them not saying we're in,
a crash but we're seeing declines that are very. Clear
declines the neighborhoods and, other neighborhoods, they're very very. Very

(16:22):
solid where you put it on, the house mark it on.
The house if it's, priced right it goes really. Quick quickly,
so sellers for, your perspective just price it right and
show value to, the buyer and you'll get your household,
for sure and you'll get us sold in a reasonable
amount of time without a bunch of price drops and
going through way more showings than you need to go

(16:44):
through because when you price. It wrong there's a lot
of inconvenience to. The sellers they. Don't realize you get
a lot of luki loose that have come out to
look at your house that aren't really going to, buy it,
you know because you're priced, too high but they want
to come. And look if you price, it right you're
going to get offers. Right away it'll.

Speaker 5 (17:00):
GET going i think it's almost like a Perception thing jim, with,
sellers right just because they you always have some idea
in mind, of, like oh what are homes of my neighborhood? Selling,
for right and you're thinking, about it where's your last? Data?
Point right is it a home that's sold last week
or is it something that's sold six? Months ago and
so just like until you talk sit down with the
professional who can, actually, say okay this is what happened

(17:23):
in the last, you know, thirty days, sixty days ninety
days in your market and your neighborhood on, your street
you don't really know what you can sell your. Home for,
so yeah the perception may be, that like oh, My
god i'm not our home price had, really declined and,
it's like, well no, not really just you're just not
gonna be able to ask for what you, think right
like what you think the right home should be selling

(17:45):
for two. Years ago there's.

Speaker 6 (17:46):
A lot of sellers out there that still think. Like
that prices are still going up and up, and, up
right and really we've been flat for about eighteen, months,
Now right other people don't get it been about flat
about Like In Palm beach county we broke. THE record
i think it's six fifty or six, fifty nine like
for the median, sale price like a. Year, ago uh

(18:09):
maybe not a full, year ago but last year sometime and.
Before that the year before that we hit six fifty
when that was, a record Was That July june it might,
have been so it might have been about a.

Speaker 2 (18:19):
YEAR ago i feel like some, people think and we're
pretty much where we were a, year ago year and a.
HALF ago i feel like people when you talk to him,
RIGHT now i think prices are.

Speaker 6 (18:28):
Going, down well, there are there are prices, going down
and we're going to continue to. See that but it
is neighborhood. By neighbor it's not blanket across the. Board
yet it isn't like like when the crash where everybody right.
Got creamed it isn't, like that and if you're thinking
of selling in the next year, OR two, i mean
there's no guarantee what's going, to happen because we're in

(18:49):
a very. Rocky road JUST like i predicted the, beginning
year we're going to be going up, and down up
and down with the, interest rates and you know it's
going to be a lot of herky jerkiness. This year
but unless we get something really surprise in the real,
ESTATE market i think you've got as good as it's
going to get in. THIS cycle i don't think you're
going to get much. More appreciation and with inflation, going

(19:11):
on the appreciation isn't even keeping up with inflation. Right
now if there's any appreciation, at all you might be seeing.
Slight depreciation so if you're thinking of selling, and Waiting
like i'll wait, two years well maybe that will work.
For you but if you really need to move and
you're waiting to get that, extra money that's probably not a.

(19:32):
Good plan you probably should work within the budget you
have right now because you're probably at. Your peak there's
a guy named this is a, good question so Thank
you jonathan From our. Facebook page, he said if you
had a home locked in at three point five? Percent
mortgage would you even entertain selling or hold and rent
it and use equity for the. Next purchase in, this

(19:54):
case there's about two hundred thousand dollars equity based in the.
Current market so that's a really. Good question and, you
know for a, LONG time i just want to talk
to the interest rate. Really quick for a long time
people have, been saying WHY would i want to get
rid of my low? Interest rate and there's good reason to.
Say that if you want to stay in, your house

(20:15):
why would you want to get rid? Of that but
do you still, you know the big questions become do
you still want to live there? Or not, you know
do you really want to just stay in a house
because you're getting a low interest rate without exploring to
see what you could get and what you. Could afford
if you want and sold and then bought, something else.

Speaker 2 (20:35):
At least do, an, analysis right at least find out
what you.

Speaker 6 (20:38):
Can get it kind of.

Speaker 4 (20:39):
Goes back to what. You know MIKE and i were
talking a little bit in. The beginning what's?

Speaker 6 (20:42):
Your? Need right what do? You need do you need?

Speaker 4 (20:44):
To expand is your family? Getting bigger you need?

Speaker 3 (20:47):
More room or do you want to you know downsize
because you know you're just you know.

Speaker 4 (20:52):
The parents maybe, you know it depends on what.

Speaker 2 (20:55):
You, need jimmy you just did it. WITH me I
mean i was thinking about moving and you get a
Calculation with mike and to figure out if it. Made
sense it didn't.

Speaker 6 (21:02):
Make sense it didn't make sense. Right now so and
sometimes that's the. Right answer and with, this case Like,
with jonathan he does have a lot. Of options two
hundred thousand, dollars equity super low interest rate on the
house he has that he has the equity in he
if he wanted to leverage that mic and get some
type of, equity, loan yeah to buy something else and

(21:23):
then turn this house into a rental. Or something you've
seen people do that all, the, Time, Right.

Speaker 5 (21:28):
Yeah and you can one hundred percent, do that right
so you can do some sort of second so you
don't have to. Do it you wouldn't do a cash,
out refinance right replacing that. First mortage you just do
a second and then you can use that money to
put down payment now on the. New place so, For
me i'm TRYING to i think it's easy to go
too deep on. The analysis but if you're having to

(21:50):
borrow money at today's interest rates to buy the. Next home, The,
alternative okay sell my home and then don't borrow, that,
Money right, so yeah you're existing loans at three and a,
half percent but you're having to borrow more money to
buy the new home because you, didn't. Sell right SO
so i don't know how that would.

Speaker 2 (22:12):
Stack up income coming in now if you're now renting.

Speaker 5 (22:14):
The, property, yeah yeah so if you could, if, it
like having the low interest rate definitely keeps your, payment
low maybe the lowest payment you, can find and therefore
your cash flow is better right on the on the.
Rental PROPERTY so i could certainly, See That but i'm
trying to think like if you're let's say it's two
hundred thousand dollars that you would have to either borrow
at today's interest rates or if you sell, your home

(22:36):
you don't have to, borrow, That right like your your
your new loan is less because you put the cat
packed into. The EQUITY so.

Speaker 2 (22:45):
I guess it depends what you could rent.

Speaker 5 (22:46):
It, FOR yeah i definitely like the idea of having
a property that you can rent out have positive cash
flow and is also a, backup plan like if you
had for, whatever reason if it didn't work out on
the new home or you had to sell that, new
home you always have this home that has like a
relatively low payment that you can fall. Back INTO so,
I mean i like that as.

Speaker 2 (23:05):
A strategy, you're leveraging, you know everything to get. More assets,
you know if you don't.

Speaker 6 (23:10):
Sell it some of the things that and, you know
depreciation is stuff you use. FOR taxes i don't understand that.
As much but from the, real.

Speaker 2 (23:20):
Rental you have positive cash flow and because of, the
depreciation you don't have. Taxable income so it makes a
lot of sense to, you know rent the property out
if if it's going to help cover.

Speaker 6 (23:32):
Your mortgage so, you know from the real, to Perspective
and i'm not disagreeing with any of you guys saying
this is why it's good to have the different disciplines
talking about the. Same thing my questions would be how
old is, the roof how old is? The act did
you just fix up the house? Last year and if
you turn it into, a rental you know it's not

(23:53):
going to look the same as it does. Right now
this might be as good as it gets without shoving
more money right into. The house after the, tenants, leaf
right and you always have to do something with. Tennis
leave if you're in a luxury home, or something you
almost always have to paint it at the. Very least
and you know there's things that there's going to be
honeydews that you're going to have to. Do afterwards and

(24:14):
if you add all that up and then you figure
out what your potential profit is right now on the
income on, the RENT sometimes i think it's better to,
sell it take that money and then buy a rental
property that was designed to be a rental property. For
you but, you know there's no wrong. Answer here all
three things a lot of things that it's just options

(24:36):
for you. To consider And.

Speaker 5 (24:37):
Actually jonathan just added. To it he said he's thinking
about the renters and how they treat. Your, Home right
so the potential for long term capital expenditures would include
wear and tear on the house by somebody who doesn't, own,
It right so all like landlords need to be thinking
about that type. Of thing, you know.

Speaker 6 (24:53):
Should definitely have like a deferred maintenance.

Speaker 5 (24:55):
Monthly fee you're also going to have your property tax applications.

Speaker 2 (25:00):
If you've lived in it for over two years as
your primary then you get the capital. Gain exclusion if,
you haven't you're gonna have a. Tax bill so you
know all those. Factors, MATTER yeah.

Speaker 6 (25:09):
I didn't i didn't think. About that so let's say
that they let's say somebody takes equity loan to buy a,
new home then they make the new home, their, homestead
right because they're going to want to. Do that maybe
then well they have to kind of well one. Of,
them yeah they can't have, two, homes right you can't have, two,
Homesteads right so you assume that you're going to do
it the, right way which is the, legal way which

(25:30):
is transferred over right, Homestead, right, yeah. Right exactly but
then now your tax rate's going to, go up which
means your mortgage payment is going to. Go up and
if you don't calculate, all that your positive income that
you're getting on the house might not be positive. Income
anymore you're wrong, About, that no.

Speaker 5 (25:49):
You're definitely that's an increased cost you need. To consider
so and even if property taxes, go away maybe it's
not going to go away for, investment, homes, right right
you're not saying they are going to, Go, Away jerry
you have in Here when we've talked about the property
tax taxes.

Speaker 2 (26:04):
In general trump's making some, crazy, statements right.

Speaker 6 (26:09):
Is trying to end property Taxes.

Speaker 2 (26:11):
In, Florida well trump was trying to end income taxes,
AND yeah.

Speaker 6 (26:14):
I know Yeah. So jonathan but he was also mentioned
besides the worrying about the wear and tear and. The
renters this is a, real life, real EXAMPLE and i
love that he sharing, with us so. Thank you, he's like,
bigger family why he would want to move from the
house he's in which has a very low. Mortgage payment,
he's like, bigger family want a single? Family, HOME right

(26:37):
i just don't want to kill myself paying a mortgage,
that's probably, you know almost double what he's. Paying now
and that that all makes.

Speaker 5 (26:44):
Sense too that kind of goes to, my point which
is if you, don't sell then you have to borrow
more and you have a bigger payment on the, new, home,
Right right but do you offset that with?

Speaker 6 (26:53):
Your, income now here's a couple of things to. Think
about you keep worrying about the. Interest rate there are
ways to solve that problem if you really had Two
hundred and we're just, spitballing, Here jonathins i'm not trying
to sway you one way. Or another but let's say
you were to sell, the, house right and let's say
you did have two hundred thousand, dollars, EQUITY right i
bet you that. YOU didn't i might be wrong, about

(27:14):
THIS but i bet you didn't put two hundred thousand
dollars on the house when you. BOUGHT it i bet
you put down a fraction of that two hundred thousand
dollars out of pocket cost to get into. The house
now you got a two hundred dollars lump two hundred
thousand dollars. Lumps on you could put a huge down
payment on your. New home or you could buy down the.
Interest rates mike has all these techniques where you buy

(27:34):
down the interest rates where that seven percent interest rate
can get down to six percent pretty quickly if you
if you use some of that equity to buy down the. Interest, Rate, RIGHT.

Speaker 5 (27:44):
Yeah i mean that's. A possibility you can always kind
of pay additional costs to lower your. Interest rate you
almost think of it at like like. Prepaid, Interest right
you're buying down the, interest rate and you always just
do a break even, on that like it's going to
COST you x amount of dollars to lower your monthly
payment by, some number and then you have a, recovery,
period right so it takes you, x amounts, you know

(28:05):
some amount of months until you're in the black on
that like you're in the red on, that decision then
you go switch into. The black and then the longer the,
loan lives the better the decision. IT was i would
be thinking about, that timeline and like what, YOU know i,
would say any loans that we're doing now are refinanciable
at some point in. THE future i couldn't tell you
if it's, five years, ten, years whatever but you would

(28:27):
think at some point we're going to have rates that
are slightly lower than they, are now perhaps even, you
know one two three, Percent lower, so.

Speaker 6 (28:37):
Wow one two or three percent lower from seven. To
four do you really think that's going to happen at.

Speaker 5 (28:43):
Some point in the future between now, in infinity between
now and then like the next.

Speaker 6 (28:49):
Thirty, Years now but there is a lot of economists
have been talking because, you know a lot, you know
there's been a lot of pressure to REDUCE the. FED
rate i think it's so much ado about nothing because
we know that we've we've proven twice now on this
show that during the time we've, been here that CUTTING

(29:11):
the fed rate doesn't necessarily turn into cutting the. Mortgage
rates so it could actually go up BECAUSE the fed.
Rate cut but so it. Isn't guaranteed these stupid talking,
head people they still they still correlate interest rate cuts
ON the fed is automatic reduction and. Mortgage payment we

(29:32):
just went through that six months ago and it, didn't
happen and everybody. Was, stunned right oh, MY god i can't.

Speaker 5 (29:38):
Believe, it right we saw a dip in the in
the mortgage rates leading up. To that, you know half
was a half a, point reduction three quarter point half.
A point that's in the IN the fed errate. Bond
market so, they right they're leading up, to that the
mortgage rates did, come down and then they came out
with the, rate reduction and the mortgage rates went right
back up to where they. Were before then they announced just.

Speaker 6 (29:58):
For that mike was right at that time because it
was already. Baked in they already kind of knew it,
was happening so they reduced the rates before the rate
CUT the fed. Rate cut the other thing is the
bond market didn't like that they cut it a half
a point because they, felt, like oh this might be
signs that the economy is, REALLY weak i want better
borrow or so we're gonna have higher. Regist rate THAT'S

(30:19):
where i look.

Speaker 5 (30:19):
At it it's a lot of it's a lot of.
LIKE predicted i, DON'T know i don't know how to
how to. Describe it but you're, it's, Sentimental right it's.

Speaker 6 (30:30):
Very, emotional yeah it's more about how you feel the
economy is than what's actually happened. The economy we just
had a jobs report come out where we had one
hundred and thirty nine thousand, job creation which was not
as strong as a, few months but still. Very strong
unemployment four. Point, two huh how long have you been

(30:50):
at four point two? Nine months? Eight months? Nine? Months
right inflation two point, Five percent we've been at under
three percent now for what? A, Year right we're not
seeing it?

Speaker 2 (31:02):
Go?

Speaker 6 (31:02):
Up right the jobs, Markets strong i'm not, saying that.
You know and, last month everybody when the job market
all these reports, came out they were identical is what
we got right, now basically and everybody's all the people
that want the economy to. Go bad they were, all, like,
oh well you know When the may report. Comes out

(31:23):
When the april port, came out it, wasn't. Bad, right,
oh well When the may report comes out and we
have all these people that, are unemployed it's all going
to change. The camera what, didn't, happen right whether you
whether you agree with what's going on, or not it just.
Didn't happen so why don't you just work with what,
you got which is what's happening. Right, now yes we
have six point eighty five percent. Interest rate that's the way.

(31:45):
It is it's been like that for. Eighteen months that's
where we. Are now you can get great down payment
assistance program sellers if you want. To sell as long
as you sell what other people are buying in your
neighborhood at the price and the condition and size, you
are you're going to get your household in a reasonable amount.
Of time and you, know what mister and, missus seller
you might not do as great on, your sell but

(32:05):
you got to buy something afterwards for, most people and
you're going to get a. Great deal if you've got a,
great agent you're gonna get a way better deal on
the buy than the well projected losses you think you're
gonna do on the house if you do. It right
so this is really not a bad time for. Either
side it could be way worse for. Either side, you.

Speaker 5 (32:23):
Know you got me thinking of, Right now Jim the
you remember that Scene In The princess bride where there
the logic game about like which cup the guy should
drink because one cup is poisoned and the other. One's
not BUT clearly i can't pick the cup in front
of me because. Of this but then he reverses his
logic over and over again and then, ends up, you know.
Getting duped but it's like that's that type of analysis

(32:46):
is just you can just, easily stagnate right, analysis paralysis.

Speaker 6 (32:50):
Analysis paralysis I'm sorry i'm on my soapbox, about this
but it really. Is important and Now, WITH jonathan i
think my answer to you about the bigger. Family thing
that's what it's going to. Be about what you decide
whether to sell or not the smart move, for you
whatever that. Move is is the house too small or
are you really unhappy with where you live because you

(33:12):
want To save i'm making it up one thousand dollars, a,
Month okay and if you paid an extra thousand dollars,
a month and maybe you don't want to. Do that
maybe and you got a better house, to live do
you think it's worth paying an extra thousand dollars a month?
For that and if if, you did then you go
ahead and. Do it and if, you don't then you
stay where. You are and THAT'S how i would look.

(33:33):
AT that i don't know how you. Guys feel and
that's why they.

Speaker 2 (33:35):
Need to do an analysis and figure out their option
so they can. Intelligent lead we need to.

Speaker 5 (33:40):
Figure out an instrument where you can take the loan. With,
you right so you just you got. The, cash yeah
so he sells, his home he got his he has
his two hundred thousand, dollars profit he uses that and
his existing loan.

Speaker 2 (33:55):
To buy the.

Speaker 5 (33:55):
New, home right how about one? Of those and, he
asked he's actually about an, assumable morgine which is kind of,
like that but for a buyer of, his property they
take over, his loan which if his loan is an,
fah loan, Is, possible jonathan to answer, your question the
big the difficult task in that process is you want

(34:16):
to sell your home for current, market value which includes,
you know two hundred thousand dollars on top of. Your, Loan,
balance right you owe three hundred and you're going to
sell it for. Five, hundred well if a buyer wants
to ASSUME your, faha loan they have to have that
two hundred thousand dollars, down payment which you KNOW many faha.
Borrowers don't but if you, were savvy they're an investor,

(34:38):
out there somebody, with money somebody who could buy your
home cash would take over your loan if, they qualify,
because yeah they want to borrow money at three and
a half paras and they're.

Speaker 2 (34:47):
Farther along on that, amortization schedule so when they're, making
payments they're paying more principle down.

Speaker 6 (34:52):
And interest so let's talk about that assumable loan for,
a SECOND because i want to talk about this ONE
house i have on. The market it's a real. Life
house Oh one Southwest clover Leaf In Port. Saint lucy
it's a, three bedroom two. Bathpool home, wood frame the roof,
is leaking we've got a green pool which probably needs to,

(35:12):
be resurfaced and the mechanical work got to, be done
and then everything on the inside got to. Be done
it isn't a gut job down to, the studs but
it's basically down to, the drywall and you're gonna put
in a, new kitchen, new bathroom, new flooring. New paint the,
AC's old the water heater, is okay and it's a
Really easy rehabit just rip, it out put it. Back

(35:32):
In and i'm really trying to find a first time.
Home buyer it really. IS easy, i mean it's just
take it out and put. It back you're not, moving
walls you're not putting in recess sliding or upgrading the.
Electrical panel it's really a very straight, cosmetic renovation eight. Week.
Job right so my question is this IT'S an fha

(35:54):
finance at three point six two five, interest rate but
and it's A a, fha Loan and i've been trying
to find a first time home buyer to come in
and buy this house because they could do With what
MIKE and i just talked about, last week which is
a streamline TWO THREE k fha two OR three k
loan where you get seventy five thousand up to up
to seventy five thousand and four construction as part of.

(36:18):
The loan when you're BUYING an fha house that needs
to be.

Speaker 5 (36:21):
Fixed and you've got it priced right.

Speaker 6 (36:23):
FOR that i got it priced super right. For that
we have it at two. Point fifty so if you take,
two fifty you put seventy five into it. Already calculated
you get the, new roof you get the brand new
pool basically like completely resurfaced with. Functioning equipment the screen
enclosure will, be fixed you'll put in the new kitchen.

(36:43):
With it probably the ac for sure. Right now whether
or not you get, the flooring the paint and, The
bathrooms i'm. Not sure you'll probably get part of, that
stuff but it'll take you really far where you have a, new,
roof basically, new pool, new ac some upgrades and, you
know heavy lifting upgrades in, the house and you'll be

(37:03):
a three to twenty five total for the, whole house,
three bedroom two bath home that's pretty new for three.
Twenty five that's an. AWESOME deal i can't GET a
i can't find a buyer that wants to. Do. That
now THE question i have is my there are investors
that have called me and have checked, and, said hey
do you know you have an assumable mortgage on. That
property we'd like to work with you on that like a,

(37:26):
Subject TOO and, i go you don't even have to
do a, subject too because. It's assumable but what happens
if you try to ASSUME an faha mortgage house that
DOESN'T meet? Faha? Standards, INTERESTING.

Speaker 5 (37:41):
Yeah i think an appraisal is going to.

Speaker 2 (37:43):
Be.

Speaker 5 (37:43):
Required right not only does the borrower have to qualify
FOR that, faha, loan right so you have to make
sure you qualify. For it, but yeah the home would
have to be brought up to for the assuming. Minimum.

Speaker 6 (37:54):
Standard, Yeah right so even though this house is, assumable
mortgage we're probably not going to be able to get.
It assumable we can't take advantage. Of, that yeah but
somebody could take advantage of this two OR three k
construction loan OR a va construction or. Conventional construction MIKE
and i talked about it. Last week if, Anybody's, LIKE
hey i want a, three bedroom two bathpool HOME and

(38:16):
i would love to fix it Up because I'M an
hgtv ATIC and i want to have a lot of
equity because they're probably going to have fifty to eighty
thousand dollars to equity extra besides their down payment by
the time they're done with. This house so if, anybody's
interested please give us. A call we'll get you to
mic right away and figure the whole thing out and
gets you.

Speaker 5 (38:35):
Up there kind Of to jonathan's question if, his home
it sounds like his home is in, good, condition right
doesn't have any of. Those problems, so, YEAH down i think.
You could that would attract more buyers than not having
that assumable, otch right because there are investors out there
who are interested in borrowing money at, those, rates yes
as opposed to not, you know paying cash. Or whatever, so.

Speaker 6 (38:57):
Yeah investors are paying somewhere between eight and ten percent
usually for hard money loans, right now, interest only interest only,
short term can't live in, the place theyn't rent it
out two, up, front right and you have to pay
a couple points. Up front so they're paying eight to.
Ten percent so if they have a chance to get
three six two five or something, like that they're going
to try to make.

Speaker 3 (39:16):
That work Sounds like jonathan needs to call eight eight.
Eight eight they have a free Consultation with Jim, and
mike and you can crunch, those numbers because that's what it's, all,
about right knowing. Your numbers and there sounds like there's
a couple of different scenarios there that Could, help jonathan
but you have to figure out exactly what, those Are
and mike's the guy to. Do, that.

Speaker 6 (39:37):
Mcglly thank you. So much, jimmy mcgley who's a big
fan of us our Show. On facebook she's saying that's
what happened to one of. Her relatives they put their
house on the market when we were saying it was,
too high it's going to sit there for, too long
and that some people just want what they want and
if they don't, Sell it she's like her her relatives
seems to be in that situation. Right Now mcg you

(40:00):
should have told them to. Call, me yeah you should
have told them to. Call ME and i don't think
they would be having this problem right but probably.

Speaker 5 (40:07):
It does may it does go to the point of
like why it's better now to be a buyer than
it's been in. Recent memory that it has to do
with negotiating power, on, Homes right so you can be
very patient as a buyer in this market doesn't like
still like the really good homes that are, properly priced
they're going to have eyeballs on them other. Than yours
but you can be as, patient now more patient than

(40:28):
you you have been in, the past and it's not
so you're not convincing sellers like it's a good time.
To sell the homes that are on the market, for
sale those sellers want to sell. Right there they've already made.
That decision they've done that annalys and, they're, like yeah
we do want to sell the. Home now some of
them are going to hold tight and they don't have any.
Like pressure they could, sell now they could sell six

(40:49):
six months, from now as long as they get the.
Right price but most people who are on the market,
for sale they want to sell their home and they
want to do it generally as quickly as they can
and get the most amounting most amount of money. They
can but they want. To sell and so buyers have
a lot of, YOU know i, guess, Power right like
just you can, negotiate prices you can negotiate, seller credits

(41:09):
you can kind of be a little bit more particular
about the home because you're gonna have more options to choose.
From you you don't have to, rush, Like hey i'm
gonna make an, offer, Today right but if you do
find the right home and you've been looking for, a
while you've got to be prepared to make.

Speaker 6 (41:23):
That, offer yeah because other if it's a really good
home and it's a price right in, this market they
do go relatively fast as people see. The value and
that's what he. Keeps saying part of your advertising technique
to sell, your home which you've got to. Show value
one of the BIGGEST mistakes i feel like you can
make in. This market unless you're in a super. Hot,
neighborhood okay if you're just in a, regular neighborhood or,

(41:46):
god forbid if you're in a. Declining neighborhood the worst
thing you can do is try to get the top
top dollar for a house that has an, older kitchen an.
Older roof, you know the house is nice and it's clean,
and everything but it's just, you know anybody else that's
coming in is going to want to do upgrades. To
it and then you put it out a price because

(42:07):
you think that your house is. Worth more if it's
sitting there for ten days and you don't have, any
offers or you hardly had any showings in the first,
ten days chances are that. Uh, overpriced yeah you're overpriceding.
The buyers they're telling you by not doing not reacting to,
your property that your house is overpriced and they don't see.

(42:29):
The value and that's what matters in, today's market no
matter what, you, think, right well there's people that, say
that and there's TIMES where i, say, that well we
just haven't found the. Right person but then but then
YOU have i had a. SELLER recently i had a
house on. The market it was on the market for quite.
A while we had on the market at three, ninety

(42:49):
nine and we ended up dropping the price to three
eighty nine and we got a three. Eighty five and
they told me originally that they would take three, eighty
five but they didn't take. It right so the house, went,
expired right and they got, you know they got fifteen
thousand less in a. Declining market they got fifteen. Thousand

(43:12):
less but the house had been on the market like, six,
months okay and then they were within, fifteen thousand which
was in that ninety four, percent range and they just.
Said no and that's. THEIR choice, i mean they have
the right to, do that but holding on to it
wasn't going to make the house. More valuable, in fact
THAT house i think is going to it's still not.

(43:34):
Done declining and the reason why is and this is
another thing people. Don't get resales are much much harder
than it was two years ago because we're competing with. New,
construction now resale is competing with new construction like. Never
before we have more new construction of inventory out there
that's just sitting there not being picked. Up yet and

(43:55):
that's the secret that. NOBODY gets i, tell people, you
know struction it's. Really slow you can get great deals now.
YOU can i hear that they're just being. Snapped up
and then they start. SAYING anecdotes i saw this, one community,
you know it says it, sold out and, you know,
it's like well, that's Great but i'm telling you that
there's way. More inventory and, you know there's one of.

(44:17):
THE developers i sold a house for them two and
a half years ago and they gave me a one.
Percent commission now that same developers offered me six percent to.
Bring buyers, oh, wow right six percent to the, buyer.

Speaker 2 (44:30):
Side six times, More, right yeah.

Speaker 6 (44:32):
Exactly right yeah it was and two years ago they
were giving me the finger because they didn't, need, me
right and now, It's like i'll give you six percent
if you break.

Speaker 2 (44:42):
Me buyers that sounds like they built too much. New
construction are.

Speaker 6 (44:44):
They've built or they a lot of them are just
sitting there ready. To go you don't even have to
wait for the construction for a lot of. These homes,
in fact probably about eighteen, months ago somebody had told
me who's works as a contractor for a lot of
developer Pers In, south florida that they stopped building. Spec
homes you know how they. Originally were at first they

(45:08):
were only building when they had. The buyer then they stopped,
doing that and then they started going, to spec and
then they stopped building. THE spec i heard that there's
a Development On. North lake now this was two, months
ago so they might have changed. Their mind but they
were supposed to be a big new luxury subdivision in
this community Out On, north lake and they just shut

(45:29):
the whole thing down and, they said we're putting it
on a hold till the market. Gets better so you're
competing against new. Construction homes so Like In Port saint
lucy for a, three bedroom, two bath single, family home
they used to go four fifty all, day long and
some of them were getting five to fifty and things.
Like that now you can get a new you can

(45:49):
get a, three bedroom two bath two, car garage new
construction home under four hundred, thousand, dollars right you throw
in the new pool for. SEVENTY five i know seventy
five is a, basic pool but seventy five will get you, a,
Pool right so for.

Speaker 5 (46:05):
Seventy five dollars for the. Basic pool oh that's.

Speaker 6 (46:09):
BASIC basis i mean you have like, no, deck, right
yeah not, inflatable inflatable but it has a motor to,
Inflate worth, so yeah it actually is. Pretty surprised seventy
five will get you like basic basic pool if you
want special lighting of. More deck forget about a screen. And,

(46:31):
Closure right you're you're in, a hundred you're at.

Speaker 1 (46:33):
One.

Speaker 6 (46:33):
Hundred wow but let's just say you put one hundred
into and you have a brand, new, home right and
then you put one hundred into it now for four
to eighty you have a brand new home with a brand, new,
Pool right and these resale people are getting creamed right because.
Of that and if you don't, understand that you can't
defend yourself, against it because then you, Get surprised why
isn't my house selling.

Speaker 7 (46:54):
Insurance is a whole lot cheaper on those new? HOMES
too i just talked to.

Speaker 6 (46:59):
A gentleman that's another, shout out if you. Don't mind
james called us last week from the show we were
Doing Our Summer buyer Guy. With, Mike mike I'm getting
james's kids over to You. On monday Cool and james
says that he has his son and his new daughter
in Law Are disney. WORLD workers i, love that and

(47:20):
they want to be first time home buyers Up. In
orlando we Just placed Michael and colleen in a house
Up in Orlando On memorial. Day weekend They're From new
york and they watch us on YouTube and they bought
a house, through us through our Team, in orlando and
we're gonna be doing the same thing Hopefully for, james's
kids and just wanted to do a shout out. For

(47:40):
them and new construction may or may not be in,
their future we have. To see so getting back to
the buyer's guide and and, also selling it's really important
to know that you're never going to have a mark
where it's good for both if you're selling. And buying

(48:02):
you're never going to have it where it's great to
be a seller and great to be a buyer at the.
Same time you forget to. Have that so it's like pick.
Your poison would you rather be a stronger buyer or a.
Stronger seller and the other thing that you can't make
a mistake on when, you're selling especially if you're selling
a buying is expecting now all of, a sudden you're

(48:22):
going to become a a wall streeter and treat your
house like, a stock trying to sell it at the
peaky peaky peak of whatever you think is going on in,
the market so you can make the highest price possible
on that and then at the same time expect to
beat up the sellers on. The purchase you can probably

(48:43):
beat up the sellers on the purchase if they're, motivated
enough but you have to understand that buyers are going
to do what you're going to do to the, your
seller buyers are going to expect to do to you the.

Speaker 2 (48:53):
Same way so there's not probably not multiple offers like
there was two, years ago or like it was members
like biggest and because there's multiple offers on the house
and they got to offer more than. The price so
are you still? Seeing that sounds like it's, not really it's.

Speaker 6 (49:07):
Very rare and that's why another reason why it's so
great to be a buyer now if the interest rates,
go down which is the number one reason why buyers
say they don't want to buyers because interest rates quote are,
too high which isn't really. An answer it's really just
a shutdown because they're not ready to buy at. That
point but the ones that, say that what they don't
understand is when the interest rates do go down and you,

(49:30):
think personally now it's time, to buy it's too late
because everybody else's not. That too and now you're back
in that whole scrum where you, Complain, IT oh i
can't get, my hose, YOU know i can't EVEN get
i can't even buy the house at. This price they
won't even take my faha financing because everybody's cash with,
no inspection, you know and they go through.

Speaker 2 (49:49):
All that and.

Speaker 6 (49:49):
They complain and right now you won't have any of.
Those problems you'll have none of those problems, right now
and you'll have all the time in the world and
you have. The power so if you thinking of buying
in the, Next year i'm telling, you now it's going
to be as good a time. As EVER and i
was Just telling james this yesterday because. The kids we

(50:11):
have To teach mike the kids, a lot right because
they don't know what's. Going on but if you buy
now and you're paying the higher, interest rate you're gonna
be buying at the. Lower price then when you're already
in and you have you let's say you're seven point
one percent, interest rate and then the, prices drop you're
going to see the values, climb everywhere including the house you've.

(50:32):
Already bought your prices are going to go up with value.
Your home and now you didn't pay that price that
everybody else is paying in. The neighborhood you paid the
low price and then you come in and you slide
in a refly refin and now you got the lower
priced house with the lower price, interest rate and you
didn't have to go through all. The mess and it's.
That simple it really is that simple for, most people

(50:53):
and they make it way more complicated Than.

Speaker 5 (50:54):
Any yeah it's kind of, the question what happens to
housing prices when interest rates?

Speaker 6 (50:59):
Go, DOWN hmmmm i wonder what's going to?

Speaker 5 (51:03):
Happen, there right unless you're in like a two thousand,
and six two thousand and eight, like cataclysm right where
rates had to go down because the economy was, like,
Tanking right housing prices, were tanking but under, normal conditions
housing prices if interest rates, come down more buyers, come
out inventory, tightens up prices, go.

Speaker 2 (51:25):
Up and insurance just keeps.

Speaker 5 (51:26):
Going up insurance is coming down, right ross it is,
coming down.

Speaker 6 (51:29):
Coming down it's actually been. Coming.

Speaker 7 (51:31):
DOWN yeah i had to carry like two, weeks ago
just send out an email, that, said hey we're loaning
our rates by ten percent across.

Speaker 1 (51:38):
The.

Speaker 6 (51:38):
Board.

Speaker 7 (51:38):
YEAH wow i pulled a QUOTE that i had done
like two, months AGO and i think they were moving
forward now and as SOON as i change the, EFFECTIVE
date i saw.

Speaker 5 (51:46):
That premium. That's great it's the thing with, prices though,
like it insurance doubles over like a five. Year period
but now, they're, like oh we're going to roll back
ten percent. Of, that okay, Thanks question. Thank YOU can i.
Have another i'm so.

Speaker 6 (51:58):
Glad you brought that Up, because jane he's going to
be GIVING which i. Didn't, See james so if you're
listening to show you got some of. Your address he
lives Up. In orlando he's the one with. The kids
he told me that when he bought his new. Construction
home or anything that, the insurance not. The taxes the
insurance went from like. NINETEEN hundred i can't remember, exact

(52:22):
numbers so don't hold, me too but the idea Is
the saint. Nineteen hundred then it went up to, seven
thousand and then, new, construction right and then he said
that he redid he found a new. Insurance company and
now he's at. Thirty SIX and, i said you must
have a really big home and, he, goes yeah It's
thirty well he didn't, say yeah but thirty five hundred.

(52:43):
Square Feet so i'm figuring that's why the insurance policy,
is higher because he's got a. Bigger home but isn't
is that high for a newer construction home a couple of?
YEARS old i mean thirty five hundred square FOOT in I.

Speaker 7 (52:57):
Mean i can, tell you, you know, probably here, you
know at a million dollars new construction here for a
million dollars of dwelling coverage, new construction which is like
a four million, dollar house, you know, typically.

Speaker 6 (53:14):
Yeah probably in.

Speaker 7 (53:15):
That, Eight YEAH so i Mean, IN orlando i don't
see what it.

Speaker 5 (53:21):
Would, be yeah, That high but LIKE if i, asked, you, Right,
hey ROSS can i find a seven thousand dollars insurance
policy for. My home you're gonna, be, like, well, sure yeah,
OF course i tell, YOU what i could probably get
it for. Sixty, eight, yeah, yeah yeah. Exactly, right hey
if you kind of do the set it and forget
it on, your insurance you're going to see premium increases,
Like that and if you don't shop it at least once,

(53:42):
a year you can expect increases and maybe even if
you're with the same carrier that carriages might have priced
up everything right across. The BOARD so i had somebody who.

Speaker 7 (53:54):
The company did have a pretty big increase from what it,
was before but his new premium was still.

Speaker 5 (54:02):
Good.

Speaker 3 (54:02):
The.

Speaker 7 (54:03):
Cheapest yeah he, Left anyway, oh, SAID well i just
don't like it because they. Increased it and, it's like
well the company that you went with has just always,
been higher.

Speaker 6 (54:14):
And you're not mad.

Speaker 2 (54:14):
At, them yeah but, YOU know i.

Speaker 5 (54:16):
Don't know it's pret was my.

Speaker 2 (54:18):
EXISTING policy i just checked, mine TOO because i got
a let her in the. Mail stand mind was going,
up again and uh we shopped it and we found
one that was like two thousand.

Speaker 6 (54:27):
Dollars cheaper, so yeah it's a, good time a. GOOD
time i was talking to my sister a couple of.
DAYS ago i said to her that she was talking
about how high. INSURANCE was, i go it's actually flattening,
out now According. To ross and she gave me so.
Much grief she, was like, no way that's, not happening blah.
Blah Blah and, i'm, Like hey i'm telling you that's
what's happening in. The market but you don't see those

(54:49):
headlines until it's. Already passed like you get the, news
here but a ten percent drop that's. Big news that's really,
good news.

Speaker 5 (54:56):
That's awesome how do you overcome that type?

Speaker 7 (54:58):
Of?

Speaker 5 (54:58):
Objection?

Speaker 6 (54:59):
Objection, right say why don't you give? Your address, i'm
joking give me your address or Running. Through ross james
is going to. Do that my mom's going to do,
that too because it's time for her to. Get insurance
i'm going to run car and home insurance, Through. You
james jimmy when you when you bought, your HOUSE and
i know we talked about this, long TIME but i
can't remember what were you paying for your, smaller home

(55:21):
your older smaller home in insurance versus what you're paying? Insurance, now, roughly.

Speaker 3 (55:27):
Uh we're PAYING if I, Remember ray ross was about
seven hundred dollars more a year for.

Speaker 4 (55:33):
The old home and the. New home and you, know
again it's about seven hundred dollars a. Year cheaper but it's.

Speaker 6 (55:39):
Double, size yeah double the size.

Speaker 5 (55:40):
And.

Speaker 6 (55:40):
Everything yep so if, you want If you're i'm going to,
SAY it i haven't said this in, A while if
you want a way to reduce your mortgage payment without
actually GETTING, into, Refi, sorry mike give us a call
and let's see if we can get you a discount on.
Your insurance right back in the good, old days sometimes
we got people saving thousands.

Speaker 1 (56:01):
Of.

Speaker 6 (56:01):
Dollars right if you're saving two thousand dollars, a year
that's like one hundred and seventy five dollars. A, month
yeah you're saving on your. Mortgage. Payments, right so if
you want savings on your mortgage payment without going THROUGH,
the refi give us. A call it's. So easy all
you got to do is give us. Your address. That's
it give us, your address a name and, phone number
and then we send it Over To ross and usually the,

(56:22):
same day if not the, next day he gives you. Two,
Quotes right ross and tell us how those.

Speaker 7 (56:27):
Quotes, WORK well, i mean we don't ever spend, anybody's
money so we just always give kind of a premiere
bells and, whistles quote and then we give a little
budget quote that has some, reduced coverages but the house
itself has still covered the same and we can either
pick one or just kind of blend.

Speaker 6 (56:43):
Them, Together awesome so make sure if you want to,
do that all you got to do Is Google florida
Talk real estate or go to floridatalk real estate dot
com and go through our contact information stuff and we'll
get it over over to you. Right away the other
thing and also just talking about the market and buyers
thinking that, you know all the market's going to crash.

(57:05):
And EVERYTHING so i just looked it up while we
were talking. About insurance we have sixty two thousand residential
properties for sale on. Our mls out, of that six
hundred and thirty three or active short sales. And foreclosure
so that's point zero one percent or one percent. One
percent so what we, have seen and we're just going

(57:27):
to be real, about this is we've seen for active
foreclosures and short sale about almost double from the first
time we. Started THIS when i started talking, about this
we were at point zero. Five percent now we're we're
at a, half percent not point zero five point. Five
percent now we're at. One percent so we have. Seen
it we have seen it, double okay just to, be

(57:50):
real but that's six hundred homes out of sixty two
thousand that are for sale during the bad part of.
The market four out of ten homes we're either a
short sale. Or, Closure wowright i'd.

Speaker 5 (58:00):
Be curious was crazy the? Short sales the ones that
are short selling, right now when did? They? Buy right
did they buy in the last three years or? TWO
years a lot of them. Are, condos, OH condos a lot.

Speaker 2 (58:13):
Of, condos yeah because of because of, the, assessments ye
all of. That.

Speaker 6 (58:17):
Stuff right so so we are seeing foreclosures and short
sales moving up a little bit but. One percent so
what what's a normal market for foreclosures in a normal real,
estate market one to. Three percent so we're still on
the lower range of we could triple what we. Got
now so if we ever get to two thousand homes

(58:40):
out of sixty, two thousand that's where we're going to
be at the higher end of a normal real foreclosure short.
Selle market so they'd have. To, triple now that could happen,
very Quickly because i've seen that in that bad market
where just overnight it was, like, Boom right but right
now we're not. Seeing it so the statistics right now

(59:01):
are showing you, know, that uh we're not.

Speaker 5 (59:06):
In that we're not in a crash.

Speaker 6 (59:08):
Or collapse situation. Right now we're. Just not whether you
feel like you are, or not that's a whole. Different
Thing but i'm telling you, real life it's.

Speaker 5 (59:16):
Not happening if a lot of those six hundred or so,
Are condos like how many of the sixty two thousand?
Are condos so what's the percentage of condo? To condo
like is there some sort of some sort of crash
or something happening there just in the, condo market you
KNOW what? I, mean. Yeah, assessments yeah like if if

(59:36):
fifteen thousand of the sixty two thousand, or condos then
you got a much higher than three percent For the
yeah yeahs h let.

Speaker 6 (59:43):
Me see so out of the sixty, Two thousand.

Speaker 5 (59:47):
So if you're looking for a, crash market get. Into
condos half of all.

Speaker 6 (59:52):
THAT'S interesting i didn't even. Know this, Thank, you mike
you taught me something out of the sixty two thousand properties,
for sale thirty. Thous condos there, you go, that's HALF
so i wouldn't. Expect, half yeah.

Speaker 2 (01:00:06):
What percentages of the condos?

Speaker 6 (01:00:07):
Of, that yeah let, me see so let me See,
how oh let me do? Condo?

Speaker 2 (01:00:13):
Right two so that means it's a. Problem market what
do you?

Speaker 5 (01:00:16):
Say, before yeah it's it, was one it, was one
it's two percent number one.

Speaker 6 (01:00:21):
To three amount. Of closures we had four hundred and
sixty three, foreclosures total and two hundred and nine, are
condos so a little less, than, half right or or
condos so about the, same ratio about the. Same, ratio
yeah That was that, Was. GOOD mike i didn't have
any idea that half the homes on the market.

Speaker 5 (01:00:42):
Or condos no opportunity there right by, my point if
you're looking to uh get into a market that's, having
trouble like there's opportunity in that type, of market it's
doesn't it's not, there, yet right it's just, it's, normal
right normal for closure.

Speaker 6 (01:00:58):
Out sale i'm looking at the cheapest home ON the
mls right Now On, dondo's No It's. Hunter's run remember
that community that made the news where they sold the houses. For,
dollar remember but we talked. ABOUT that i think it
was last summer where they were selling houses for condos
for a dollar. Over there it made national news because
their assessments are. So high people were just selling their

(01:01:21):
place for a dollar just to get out, of it
and then the people would take Over the they were
basically selling the house for, the assessment, Right, Like hey
i'll sell to you, for dollar you take over the,
you know the two hundred thousand dollars assessment. Or, whatever
right twenty, seven thousand five hundred is the cheapest Condo
In south florida, right now twenty, seven thousand. Five hundred

(01:01:42):
it was originally a forty, five thousand and it's been
on the market four hundred and forty. Nine days?

Speaker 5 (01:01:49):
Is that is that a fifty five? Plus community some of?

Speaker 6 (01:01:52):
It, is some? Isn't it so let me. Look here
membership fee is eighty six thousand dollars a year exactly? A?

Speaker 2 (01:01:58):
True?

Speaker 6 (01:02:00):
Is uh YOUR h aa is fourteen hundred dollars? A?

Speaker 2 (01:02:04):
Month uh membership equity membership or you have to sell
it for. EXACTLY what i guess if you wanted to,
market up you just mark the price of.

Speaker 6 (01:02:14):
THE house i. Don't, think, YEAH yeah i. Don't, think
yeah let me. See it, wait, okay yeah so THIS
house i don't have any MORE if i was trying
to see if there's anything more. In, here yes so
they started at, forty five four hundred and forty nine.
Days ago it's still on the market.

Speaker 5 (01:02:30):
Right now so they are not needing. To sell they
just they want to get. A, number.

Speaker 6 (01:02:36):
Yeah they were just they're just waiting for their, favorite,
number right.

Speaker 5 (01:02:38):
Trying to figure out how to get their membership. Equity,
back right that's why.

Speaker 2 (01:02:42):
You went to the house is less than the Equity, members.

Speaker 5 (01:02:44):
Yeah that's why you would sell it for DOLLARS like
i just need my eighty. Grand, BACK yeah i got to.

Speaker 6 (01:02:48):
Move on and let's let's just for the heck of
bitsiness for. Doing it let's see what the cheapest single family.
Home is should we take, A, break yeah well we'll
take a break attend you think you Think, of uh
at LEAST it's. I, here okay so let me, See here,
HOLD on i know it Is all where the hell is?
This language oh this is a. Different area so, the cheapest, The,

(01:03:13):
cheapest wow this is this IS where i used, to
live not not not not in, my house but the.
Same neighborhood so the cheapest single, family home what what's going?
On here they're selling it for five. Thousand, dollars oh
it's a, foreclosure auction so it isn't really going to
sell for five here's the, foreclosure cheapest cheapest single family

(01:03:34):
Home In south florida IS a i know this house is. A.
FOUR yeah i used to know the people that. LIVE
there i don't know if They, are. Yeah foreclosure this
house is very similar in THE house i used.

Speaker 5 (01:03:47):
To own probably got a loan.

Speaker 6 (01:03:48):
On it so it's an auction that's going to start
at five, HUNDRED thousand i mean five thousand dollars and
They'll see so that's kind. Of interesting let's, go ahead
and let's go ahead and take. A break on the,
flip side we're going to talk about self and self
employed buyers and a couple of a couple. Of tips
if you're a self employed person and, you're, LIKE man
i really want to buy, a HOUSE and i could

(01:04:10):
afford a, mortgage payment BUT when i go to the,
mortgage company they tell ME that i can only afford
like one third of what my. MORTGAGE payment I know
i could afford this this next segment is going to
be for you to show you how to jump through
that gauntlet and get what you need to buy the
home that you're. Looking, for well there.

Speaker 4 (01:04:27):
You go jim's got to set up.

Speaker 3 (01:04:29):
For you that's what's coming up after a quick for
a minute break right Here On real radio ninety On A.

Speaker 4 (01:04:35):
Churguy coast.

Speaker 1 (01:04:51):
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 sixty n. Sixty nine
you heard.

Speaker 3 (01:05:01):
The man give us a call eight seven seven nine
two seven six nine. Six nine you got a specific
problem that's going on with the maybe selling, your house?
Buying house what questions do? You have give us a
call eight seven seven nine two seven six nine.

Speaker 4 (01:05:14):
Six' nine or you Can Go.

Speaker 2 (01:05:15):
To florida talk.

Speaker 3 (01:05:17):
Realestate dot com you can Follow us, on, Facebook, Too
right jim.

Speaker 6 (01:05:20):
Yes you can all you got to do Is Go
to Florida talk real estate and Also On YouTube Florida TALK. Real.
Estate llc excellent thank, You, so much jimmy. You, Got
it hey i'm gonna try to do something before we
start talking about self employed and Continue WITH Our summer
buyerus guide and talking about how to help the self employed.
IN that process i wanted just to give a little

(01:05:42):
Shout Out. To flicker Productions it's a british production company
that Interviewed me last september for nine hours for a
documentary that just CAME Out on Amc Plus and Sky Network.
And sundance Network It's Called clown killer Murder. ON the
doorstep i have to, Say That Way cloud killer Murder.

(01:06:04):
On The doorstep so i'm going to try to run
this thirty second show as just an audio just to see.
What will happen i'm going to do it. Through, the
light okay is he allowed?

Speaker 5 (01:06:14):
To do, This, jimthy absolutely okay.

Speaker 6 (01:06:17):
He is state but we have. The, shadiest, people wait sorry.
Hold on it we might be, the sunniest stake but
we have. The shadiest people it's very.

Speaker 2 (01:06:27):
Strange and suspicious.

Speaker 4 (01:06:30):
The poor woman was shot in front of.

Speaker 2 (01:06:32):
Her own son the person.

Speaker 6 (01:06:35):
That shot the victim was trussed. As a clown the
brutality of.

Speaker 1 (01:06:40):
It is horrifying there's more to the story than.

Speaker 4 (01:06:43):
Has Been Told The killer.

Speaker 5 (01:06:45):
Cloud Murder On the Doorstep new series June fifth on.
Sundance to nice they used two of. YOUR Drops, THERE j.

Speaker 6 (01:06:53):
Yeah i, could BELIEVE that so i. Could believe it.
Lad WITH me so i want to make. A little
announcement there's A Guy name frank cherbino that's the Calumnist
for the post and h. Really great guy and that
WHOLE thing, Where i say florida may be, the sunniest
state but it has. THE shadiest people i Got, that
FROM frank and i said that in the in THE

(01:07:13):
interview when, i did it but they put that on the.
Cutting room floor so Anybody On The pomp beach, puster,
gonna go Hey you. STOLE frank's information i gave him
credit at least. For, the, promo, yeah yeah yeah maybe
it's all.

Speaker 4 (01:07:24):
May actually be in.

Speaker 5 (01:07:25):
The show itself so even though you did, the right
thing you're gonna have to explain. That, EVERY time, yeah
i think yeah to all.

Speaker 6 (01:07:31):
The journalist, friends so yeah this was a murder that
happened about. Thirty years ago it Was. Uh in wellington
somebody dressed up, like a clown went to somebody's, very
expensive home shown him, in the face. And then disappeared.

Speaker 2 (01:07:47):
CLOWN shows up.

Speaker 6 (01:07:49):
I was just saying to somebody a couple, OF days,
AGO i said i realized after this because this story
has not died, for, Thirty, years right, no, Pun Intended,
RIGHT uh no i didn't mean to say, it that
way but this It just won't it just won't go away.
For thirty years it just. Wouldn't go AWAY and what
i realized was is dressing up. Like a clown how
to be the perfect disguise? For a murderer because nobody

(01:08:13):
EVEN knew because, i covered, it you Know that's why i'm.
On the documentary and when, we covered it nobody had
an idea if it was a man. Or a woman
they really didn't know because of the makeup and. Everything
and everything and then the worst disguise you could, do
for murder murdering somebody is. A clown costume and the
reason why nobody forgets if that person dressed up like

(01:08:36):
anybody else, BESIDES the clown i don't think anybody would
have thought of that murder, For thirty years like if
they dressed up like a garbage.

Speaker 2 (01:08:43):
Man or something they have all. These crazy, masks, it's
like yeah dress up as. Anything.

Speaker 6 (01:08:48):
You want, yes so anyway THAT is On amc channel
That came. Out june fifth it's a three part documentary
on that if you want to. Check it out It
came out JUNE fifth, On Amc plus Sky now At Work,
And Sundance now Sundance NOW. And sundance, TV so anyway
I just thought I was an i haven't. Even watched
it i've been. Too busy somewhat one of my relatives

(01:09:10):
said they watched the. Whole SERIES already but i don't
Know how much i'm in it or. Not in it
sounds like you're.

Speaker 5 (01:09:15):
In a lot did? They pay you did?

Speaker 3 (01:09:18):
It?

Speaker 6 (01:09:19):
WAS free yeah i did, it for free But it
was it was pretty fun, to do it and it
brought back a, lot of memories so it was kind
of fun. To go back and it's almost hard TO
remember that i actually did all that back. In, the
DAY yeah when i was going out to the crime
scene where they had, this police sting they rated a
Car Dealership On Palm beach Lakes, boulevard AND BROADWAY and

(01:09:45):
i i was tipped off ABOUT it and i wasn't.
Supposed to know and then they opened up, a police
investigation internal affairs investigation to find out who leaked the
who leaked the information to ME and how i knew
and it turned into. Pretty crazy stuff so.

Speaker 5 (01:09:58):
Do you remember? How you, KNEW oh. Yeah i remember
so you, Had a, source oh yeah a Deep WHATEVER deep.

Speaker 6 (01:10:03):
And I can and i can tell. YOU one thing
i was. Squeezed really HARD one day i Walked Into
the state attorney's office and THEY had the i a
investigation going on to figure out HOW the hell i
FOUND out what, I found out and one of my
favorite detective sergeants and my favorite prosecutor, of all time

(01:10:24):
they both cornered me into a room in the little
Staircase Of the state attorney's office, and, grilled me, saying
come on we know who told. You the stuff, Just
tell us. Just TELL us and, I was like i'm not.
Telling you anything they wanted to know who my source
was for THE sting because i was at a POLICE
sting that i shouldn't have been at and, they found

(01:10:46):
out and they want to know.

Speaker 2 (01:10:46):
Who didn't know who. The killer was they weren't, trying.

Speaker 6 (01:10:48):
To, no no no but they. Were very concerned it
was a high, level of investigations like how is? This
leak happening, and you know we got to. Plug that
leak and they came TO me and i love both
of those guys, that CORNERED me but i love the
guy that also gave. Me the information and, they were
like we already know. It, would matter, yeah back, then
almost everybody almost all. The detective guys is? He still,

(01:11:09):
ALIVE oh yeah i talked to him a. Couple months
ago so what, Happened was yeah so what happened, was
is uh, they GRILLED me and i. Felt so bad
my face was SO red because i had no POKER
face because i KNEW they knew i was lying through
MY teeth and i was lying. Through MY teeth but
i finally said to, THE detective, sergeant i go how
many times have you given me off the record information

(01:11:31):
you weren't supposed? To GIVE me and i never? Coughed
YOU up, and I go if i coughed, this Person
up now i'm never going to get any tips from.
Anybody EVER again and i, just held tight and nothing
ever happened. To, anybody everybody actually what happened was the
detective called me up and said tell. Him the, Truth
he goes i'm going to. Lose my job tell. HIM

(01:11:51):
the truth i don't want to. LOSE my, job i
go you're giving me permission, and. He goes YEAH so
then i went back, and said okay and that's how
we got to. Keep the job that was. Kind of
crazy so you did reveal only because. He told me
he told me that he begged ME to because, I
said no i. TOLD him no i, told him no
and then. He begged ME and, then, i, said okay yeah.

Speaker 5 (01:12:10):
Why he's not. A, journalist, anymore yeah.

Speaker 6 (01:12:12):
Yeah any more but that that seems like a, whole
different lifetime like a whole different person. Did all that. It's,
so weird yeah and then going back to the scene
like thirty years later and doing all that stuffs ago
it was thirty Years, nineteen ninety wait it was, thirty
years ago two thy and eighteen, nineteen ninety seven so

(01:12:34):
whatever nineteen, ninety seven is so it's even longer than. Nineteen,
ninety seven no it isn't actually.

Speaker 5 (01:12:40):
Thirty, Years, yet right yeah it's coming here.

Speaker 6 (01:12:43):
Ninety, seven and. Yeah thirty, Years so yeah i'm. Good
at MATH that's why i. Was, A, journalist OKAY hey
so i, WANTED to uh i wanted to go over
Continue With The, Summer BUYER'S guide AND i know i
keep pushing this hard every, single week now for four weeks.
In A row but i'm telling you that this is the.

(01:13:04):
Time to buy if the market does change and the
interest rates do get adjusted in favor quote, of the
buyers it's not going. To help you you're going to
be better off doing it now then waiting and then
being stuck with all the hoyp polowyer that are trying
to do the same thing you're doing at the same time.
And being rushed and if your financing, isn't the strongest

(01:13:26):
like if you're not cash or you're not, twenty percent
conventional the sellers can't really be that. Picky right now
so if YOU'RE coming with faha finance and you, want
to buy they want to. Work with you the interest
rates are. NOT crazy high i don't care what. THE
headlines are i can prove it to you on a
Chart From the freddie mac that shows these rates. Are
not high they've been about the same rates. For eighteen

(01:13:48):
months there's no reason to think that they're going to
get much. Lower. Right away september they're predicting by the end,
of the year they're thinking we might be at six.
Point oh one that's what, Economists are saying so that
would be like a three quarter point drop, for most
people three Three quarters appoint it's a, lot of money don't,
get me wrong but it usually is a make or break.

(01:14:09):
For most people and buy the house now at the
lower price and then. Refile it lighter that's what you
should do if you get. Lower interest rates so let's
talk about what makes self? Employed, buyers different yeah like
what what what kind of biggest problems to self? Employed
people have and what would you call a? Self employed?

Speaker 5 (01:14:30):
PERSON business owner i just call him by, their first Name.

Speaker 6 (01:14:35):
But mister smith but you determine a self employed PERSON
is how.

Speaker 5 (01:14:41):
I would too category YOU'RE either a w two employee
or you're something other than. That, Self employed right so
if you go to your job and you get a
paycheck and your employer you have a gross number And
they withhold federal Income Tax, and social security and you
get a net and they GIVE you a W, two

(01:15:02):
every january you're an employee right.

Speaker 2 (01:15:05):
Of a company you have, stated, income docs right like
YOU get. A w two you don't have to show
your expenses and all.

Speaker 5 (01:15:12):
This, stuff that yeah and so if you're something, Other
than that so people who are paid with they call
them ten, Ninety nine right so somebody gives you a
check and there's no taxes. Withheld or anything they just
give you a check. For your pay you are then
responsible for kind of withholding your own taxes or calculating
what you. Owe the government and so if you're filing
taxes and you're FILING, a schedule cee or if you

(01:15:33):
have a Corporation filed with sunbiz and you're you're FILING
as AN s corp a eleven twenty S or a c,
corp eleven twenty, you're, Self employed, RIGHT so essentially i mean,
that's THE distinction either w. Two or not and then the,
Self employee part like in this, room, right, now, one,
two three four. Five of us two OF us are

(01:15:55):
w two employees and three, are self, employed, right right
rights you've got, your, Own COMPANY right i'm W two
two w, two, yourself though yes YOU pay. YOURSELF w
two i PAY myself, A w two. So they're okay
so they're a slight distinction there as many people who,
are self employed they run their own business to have
it structured, in a way so they're receiving paychecks and
THEY'RE receiving, A w two but you're in charge, of

(01:16:18):
that like, you're the employer so you're you're paying yourself. W,
two wages yeah you're still self employed because. It's. YOUR
company yes i think.

Speaker 2 (01:16:25):
One of the big mix, Ups with that mike is some,
of the brokers mortgage, brokers you know don't know to
add back their. Salaries or whatever they'll just use. Their,
business income.

Speaker 5 (01:16:35):
Yeah it's so as, a loan originator my job is
to understand that STUFF so that i can do a
proper income assessment and anticipate what you're going to be
approved for. For a loan at the end, of the
day somebody who does know how to analyze these things
is going to look at it and that sometimes, that's.
An UNDERWRITER right but i know THAT stuff because i

(01:16:58):
can't do a proper for your pool. WITHOUT knowing it
i want to wait around for an underwriter to do.
My Income right so i've learned, how to, do you
know calculate self employed income and recognize. Those things, upfront
but certainly even if your loan originator doesn't, know that
stuff they're either gonna give you, too, Little income right
they're not counting all of your income and therefore you're

(01:17:18):
going to qualify for less of a mortgage payment and
less of, a loan amount or they'll they'll be wrong,
the other way which could. Be a disaster and then
it gets to underwriting and the, underwriter is like why'd,
you give, them you know one hundred and fifty thousand
a year the guy only makes, seventy five, thousand you know.
Something like that so you're like wrong in the, worst
way possible which is. Your in, contract you know you've paid,

(01:17:39):
money for inspections you've paid money, for an appraisal and
then you're getting. Your loan denied so it is critical.
That you're professional, your loan originator, the frontline guy knows what,
he's doing right even complicated Tax, returns like jared we've
done your your tax returns are, some of them some of, the.
More complicated Right you've got you've got a lot of
things happening right. From various companies you've got. Your own

(01:18:01):
company you're also strategically filing taxes in a way that's
like meeting your responsibilities but also taking advantage of what,
the irs allows what the government allows as far. As
a deduction there's a.

Speaker 2 (01:18:15):
Lot of things you can do proactively if you work with,
a mortgage broker. And, you understand yeah Certain things.

Speaker 5 (01:18:22):
Like jim's a very good example of one where we
Have we know jim's going to, be a buyer and
we've done it, in the past but Leading up to jim,
being a buyer. He's self employed so his taxes need
to be prepared in a way that is going to
allow him to have the income required to qualify for
the loan that he. Wants to get and so that
that could be, as, simple as hey, you know what

(01:18:43):
EVEN THOUGH THE i r s allows you to deduct,
all of this you don't. Have to write it's kind
of like, optional, for you right you don't have to
take deductions, that are allowed or you can deduct in
certain categories that doesn't impact. Your qualifying income so you
really need to kind of get out in front of
that if, you're self employed to people who know not
only how to prepare returns in, the right way but

(01:19:03):
how that's going to impact your ability to qualify, for
a mortgage and you, do that, before not after not.

Speaker 2 (01:19:10):
After, The THING yeah like i think one of THE
big things i know that they have been adding back
is if you put your if you're paying your car
payment out, of the business right and so, if it's
not if it's not set up that way, ahead of
time and you're, paying it personally and maybe you're still
trying to deduct it on your tax return or take,
mileage OR whatever but i don't think. The lender will it's.

Speaker 5 (01:19:33):
A, Really. Good example jared so if you have a
car and you use it, for your business or sometimes you, have,
multiple vehicles right. It's really important so from a debt,
to income perspective right on one side of a ledger is.
All your income the other side is. All, your debts
right that's where you have borrowed money and essentially. Paying it, back,
credit cards, mortgages, car loans well those are almost always,

(01:19:55):
a personal guarantee meaning it's showing up on. Your credit
record but, if you're busy this. Pays for it essentially it's.
A business operation if you don't want that eight hundred
dollars car payment to impact your ability to qualify, for
a loan you need to. Be paying it not only
are your tax returns out, of the business but, in
real life it needs to come out of. A. Business
account right it needs to be an expense that we

(01:20:16):
can document a twelve month. History of payments of that
money coming out of, your business account and then there's.

Speaker 2 (01:20:23):
No other way to take it if it's not showing
up in. Your business, account that's.

Speaker 5 (01:20:26):
Right that's right so, it's really simple although you need
to get out in, front, Of it, right so listen
if you want to deduct, this business expense it's, big
car expense make sure you have a, business, bank account
right and make sure you're making the payments out of that, account.

Speaker 2 (01:20:39):
Every month and eight hundred bucks a month or. Whatever
it is five that's, a, Big change right like that
could make the difference whether you. Qualify, or, Don't.

Speaker 6 (01:20:46):
Absolutely absolutely and it's really importantly to use me as a.
REAL life example i want to talk to YOU today
before i leave to go head up north because WE
figured out i FIGURED out what. I should report i
Reported back TO jarrett what i should report back based
on what. We all Discussed but now i'm concerned that

(01:21:10):
The neighborhoods that, I'M looking at i might want like
an extra twenty thirty grand to buy, something OVER there
and i don't want to. Be CAUGHT short so i
need to talk to you guys to MAKE sure that
i have enough Flexibility in case. I'm the unit In
the communities, i'm looking at there's like a fifty thousand
dollars range. In, the units yeah And right now i'm

(01:21:31):
budgeting on the lower end Of THAT fifty and i
realized after a couple of properties Went that maybe i'm
going to have to pay at. The, higher price INTERESTING
and so i need to HAVE a little i don't
want to like have too low. Of, income reported.

Speaker 5 (01:21:44):
Yeah you need. Enough to qualify but also sometimes there's
like when we're talking about like hometown heroes and, down
payment assistants they also, have, income limits right you can
only make so much in order to qualify. For the
assistance so you need your you need your porridge to
be the exact right, temperature right right like and a
lot of people are. In that scenario, So, It's like
hey i'm going to be a, Buyer next year, i'm
self employed what kind of WHAT how do i need

(01:22:07):
to prepare my taxes in? Order to QUALIFY and also
i have, these, OTHER considerations right i want to use,
down PAYMENT assistance so i want to buy in these
these neighborhoods and take advantage of. This community lending so
those are all things that it's almost impossible unless you're
like steeped, in THIS business like i am to, Know
this stuff so you have to talk to somebody who
knows what not only they know the guidelines, and the

(01:22:28):
rules they also know how to advise you and your
tax advisors or your tax professional and also be able
to go. Back, and, forth jarre like if you're Going TO,
file gym's taxic we're going to review it before you
send IT. To the irs we're going to make sure
that we're not missing. Any Important details and.

Speaker 6 (01:22:44):
I've been very blessed THE fact that. I hate Technology
everybody knows i'm very, bad ON technology and i hate
it because it's not. Intuitive to me and the only
OTHER thing that i hate more than that IS taxes
because i don't understand. Any of IT so when i
Sit down with jared as Bad as when jared's just
found with me to talk, about real estate because, he
understands it but. He gets work but when, it's his

(01:23:07):
property then, he gets, uh you know it gets all
we did WEIRDED out like i. Do WITH taxes and
i go sit, down with him my eyes just GLAZE
over and i become. The STUPIDEST guy my iq drops
Fifty points, AND i'm like i don't understand the words
coming out of. Your mouth there it's just it's.

Speaker 5 (01:23:22):
Like super simple concept concepts that you understand in real,
life and like but. Not, for yourself yeah when it.

Speaker 6 (01:23:27):
Happens to you so, my, question Though is so. I'VE
been blessed i don't really have to worry about. IT
too much, i, Just, say hey jared talk to my
whatever you guys want to. Do with me but that
isn't that. Isn't real world i'm very blessed to have
That opportunity if i'm a regular self employed person coming
to basically two professionals that but but don't know each. Other,

(01:23:50):
very well right how hard is it to do all
THE stuff that i don't know what's happening behind the scenes?
Between you guys is there are a lot of work
involved with the lot of small BUSINESS peoples like i
don't have, time for, this you know if they're running
their business.

Speaker 5 (01:24:03):
OR doing stuff, i would say most, of the time
we don't have an opportunity to get out in front
OF it like. I, Would like right so, usually, it's
like oh let me let me see your most, recent
file return and most times for self employed borrowers when,
you're preparing taxes the goal is to reduce, your, Taxable
income right so you basically want your taxable income to
be as. Low as possible, so, that means yeah you have,

(01:24:25):
your gross earnings what, your business made but then you
take advantage of all the deductions that are, at, Your
disposal right so, you're you know things like office expense,
and you, know supply, whatever you know whatever, cost of, goods,
private jet, yeah you know the flights of, the private Jet,
the entertainment, jimothy right like so, it's you know so

(01:24:47):
you're reducing, your taxable income and therefore the taxes that
you owe to the to the man, are you know as.
Low AS possible so, i, would say, normally that's, fine
perfect strategy except when you're trying to qualify to, buy,
a home right because that's when we want to se
see the. Most taxable income, and of course if you
haven't prepared, to pay taxes it's going to be a gut, punch, For,

(01:25:07):
you right like what's? A good? Number, twenty percent like
if you make one, hundred thousand dollars you're? What, twenty two.

Speaker 2 (01:25:13):
Yeah but you, get you know standard deduction and all.
This other, stuff so.

Speaker 5 (01:25:16):
Yeah but you need to be prepared to, pay twenty
percent which means like of every dollar you brought, into
the business you need to take twenty cents and set
it aside as like THIS is, my irs fund right
or you prepay.

Speaker 2 (01:25:27):
It, OR whatever, YEAH i. THINK i think i mean
my advice is when you're meeting with your tax preparer
or doing it's a good time to kind of just
not just focus. On the taxes that's that's. Part of
it but, also you know you should be talking with YOUR.
Account or cpa are you going to be trying to apply?
For a loan what are you doing the next? Couple of,
years you know so you guys can proactively plan and

(01:25:48):
get with somebody, Like you Know mike and ross to
make sure. They're helping. You, YOU know yeah i think.

Speaker 5 (01:25:54):
A lot, of small business especially like, when they're beginning
they're so focused, on like uh bablishing the business and
being successful and kind of keeping the taxes down and
putting food on the table that they're not they don't
take the time to kind of like do the bookkeeping
part of it. In A way like ross pays. Himself
w two the reason he does that is so that

(01:26:14):
he's not stuck with the huge tax bill when he goes. To,
prepare taxes right he's kind of doing withholding in the
right way and probably has a payroll company that's paying him.
And its employees so the larger your, your business grows
you kind of naturally move into that when you start,
to have employees like you can almost have to do, it,
That way RIGHT like it's i don't know if it's.

Speaker 2 (01:26:32):
Mandatory or not just if, you're an escort you gotta.
TAKE a salary i think that's why. He's taking it,
BUT you know i think the point is like at
the end, of the day you could either have a
show one hundred thousand dollars of income, for, a mortgage
yeah or you could show, and you know pay taxes
on one, hundred, thousand, Dollars right yeah or you could
show one hundred thousand dollars for a mortgage and pay

(01:26:53):
taxes on. Seventy, Thousand dollars yeah like which one would?

Speaker 3 (01:26:55):
You?

Speaker 2 (01:26:55):
Rather?

Speaker 5 (01:26:56):
Do yeah right so it's the by the Good, NEW
use jim i don't know if it's good. News or not
like it for the, market in general there are now
and that guess they, always have been but you're seeing
these more and more alternative. Income documentation levels so you have,
your conforming loans which, is your CONVENTIONAL, your your FHA your.
Your va loans you also have what i'll call, non

(01:27:18):
conforming loans and non conforming loans basically mean you're not
meeting the standard guidelines. For whatever reason it's usually based
on income and you need to come up with some
other way of. Calculating your income so, instead of, looking
for example at my tax returns to calculate, Self employed
income i'm going to look at twelve months of your
business Bank statements and i'm gonna analyze the. Deposits in

(01:27:38):
there we're going to do some sort of, business expense
ratio and that's what we're going to use, for your
income and that might be able to the way that
represents the reality of your income more than your. Tax
return DOES.

Speaker 6 (01:27:50):
That's what i was going, To ask though so if
you do that profit, A loss thing.

Speaker 5 (01:27:54):
A profit and loss, Is an, example so yeah bank.

Speaker 6 (01:27:56):
State can do a conforming loan if you're using. Profit
and losses let's say that you filed, Taxes to look
i'm just making up that you had too low. Of
an income you feel like your income is stronger than
what was reflected in Your. Last, tax viole yeah so, can,
you say, Hey mister banker i'm making a lot More
money than I'M showing that i. Made last year and.

(01:28:17):
HERE'S the proof i have a profit a lass sheet.

Speaker 2 (01:28:20):
That's showing that i'm thinks, On both right like it
would be based on the tax return and, the current year.

Speaker 5 (01:28:26):
So it would be based on just. The PROFIT loss
so i think think about.

Speaker 6 (01:28:32):
Like the you can't get. A conforming loan you.

Speaker 5 (01:28:34):
Can't get, a conforming loan so essentially you're. Doing alternative
income you are an elevated risk, because of that and
therefore your terms of your loan are going to be
less favorable than. They, would be, so for example if
you WANT to do faha low down payment three and,
a half percent THAT'S a great uh instrument out there
that allows people to buy home for, the you know

(01:28:56):
if they call a first. Time home boyer you don't have,
to be that but basically, low down payment but you
got to be the less the, least, risky borrower right
meaning you have to have income that is documented in
the in the WAYS that. The Faha requires And fanny
and freddy on CONVENTIONAL loans OR va. On, va loans
so and that would be tax returns. For self employed

(01:29:18):
so you can do a bank statement analysis if you can't. Meet,
that threshold okay tick up the risk factor. A, little
bit okay supply as a profit. And loss statement you, Can, Imagine,
that jared hey, just you know PREPARE me AT p
and l And that's what i'm going to. Use For
income so i'm not looking. At bank statements i'm not.
Looking at taxers i'm LOOKING at A. P and l it. Is,
Elevative risk right so LET'S say THE p and l

(01:29:39):
is not an. Option, for you okay how about? No
income docs how about no income? Docs at all or
a three month? Bank? Statement analysis right that sounds like
fog a. Mirror it is it. Is fog amer it
used to. Be fog amer get a loan and do one,
hundred percent? Financing, right right no these are like twenty
percent minimum down payer, twenty five percent thirty percent down

(01:30:00):
and you're not going to have a six point eighty.
Five interest rate but. It's not terrible maybe. It's nine,
percent to.

Speaker 6 (01:30:07):
Say what what is the difference that? It could be
it depends.

Speaker 5 (01:30:10):
On your risks so, the less documentation the more, risky
you are the more you're going to pay for. The,
Interest rate right and so. Sometimes that's okay like let's
say you haven't, your self employed you haven't prepared your
last tax return in a way that, you know qualifies
so you go with this other. Type of loan but,
then you say, you know what these, Next two years

(01:30:31):
i'm going to do my taxes in a very specific
WAYS so that. I can refinance and even if the
interest rates haven't gotten, super you know a lot better than,
they are today it's still going to be better than
your nine percent or your nine and. A half percent i.

Speaker 6 (01:30:44):
Have a question so let's say you're self employed and
you end up having to use, a nonconforming loan and
let's say you're at a nine percent interest rate in
the average rate right, now is seven and you're doing
it because you really want a. Place, a buy yeah
LET'S say that, i did that and then my plan
was my, Next tax filing i'm going to be able

(01:31:05):
to be, a conforming refine be able to refinance as. A, Conforming,
loan yep right is how much do you think? That? Cost,
you extra roughly let's say you're doing a five hundred.
Thousand dollars, house, so originally yeah like cost that's going
to cost be, an extra cost but it gets you.

(01:31:26):
Into the house but there's an extra cost because you're
going to.

Speaker 5 (01:31:28):
Refine roughly the same costs on a refinance that it is. On,
A purchase right so essentially you have like where do closing?
Costs come from they come from, lender related fees settlement
company or title company is, doing the transaction and you
got the county or. The, Government taxes right so all
of those three cost centers exist on a refinance they

(01:31:48):
say they do. On a purchase so it is going
to cost thousands of dollars, to do that.

Speaker 6 (01:31:53):
But you don't have to put another down. Payment or
anything you're just. Paying those costs.

Speaker 5 (01:31:57):
Usually you're going to you're, gonna, Borrow it right you're
just gonna put it. On, Your loan right so you're,
doing a refinance you have a, certain equity position you're
you're you're paying off a four hundred, thousand dollars loan
you're replacing it with a four hundred, thousand dollars loan,
but also financed. You're closing costs so maybe it's four
hundred and eight thousand dollars or.

Speaker 6 (01:32:13):
Something like that and, the, thing is though is that
if you're going in this hypothoe example use from, nine
to seven you would want to you would want TO
do the refi because you're, saving two points you're shaving.

Speaker 5 (01:32:26):
Light for the especially if it's going to be you're
going to have that loan for or have that home for. A,
Long time right so if you're, going TO sell, IF
i was i just need a home, for three, years
you know three Years and then i'm. Going to sell
hopefully the market's, right For selling but i'm. Doing something
else i'm taking the next step. In my life is it,
worth you know paying. The tax burden let's say it's,

(01:32:48):
the twenty percent so you got to pay twenty? Grand
in taxes or do you kind of take the higher
interest rate and it's going to cost you less than
twenty thousand over the three years that you're going to?
Own the home so?

Speaker 6 (01:33:00):
Then?

Speaker 5 (01:33:00):
Who, cares right like just so take take your lumps
on the interest rate instead of taking your lumps on
the tax paying, the irs.

Speaker 6 (01:33:07):
Yep or be.

Speaker 2 (01:33:08):
Proactive ABOUT it AND.

Speaker 5 (01:33:09):
I mean i would encourage any self employee bor. Think
of themselves you have to OPERATE like the w, two
world operates which means you have to pay, federal income
taxes you have to Pay Into the, social security system
you have to be, hanging into, medicaid you know. Things
like that so just kind of if you do that from,

(01:33:30):
the get go and you really are disciplined about, taking
you know some percentage of every dollar, you bring in
and you set it aside TO PAY THE i r s,
what they're due then you're not going to be stuck
owing them a. Ton of money when it comes time,
to prepare taxes you have either prepaid it or you've.
Just like prepared, And, of course jarrett does you know
you have. Book keeping operations that's what you, do For,

(01:33:52):
people right like you just make sure that they are
keeping track of things so that they're not hit with
a huge tax burden when. It comes time.

Speaker 6 (01:34:00):
If you're using a, non conforming loan can you still
get down payment assistance in the programs That?

Speaker 5 (01:34:06):
We, Have nope okay and you, think, about it like
you need this generally a minimum twenty percent down on these,
types Of, loans right like it's possible you could do
a bank statement with ten percent down or, something like that,
like those exist, but in general you're going to need
least the twenty percent down threshold in order to do these,
non conforming loans and so you're not eligible for downpayment

(01:34:29):
desistants and likely you, don't Need, it right like you're
not in that category where you kind of need that.
Down payment assistance so the cash barrier is, not your
barrier it's. An income barrier.

Speaker 6 (01:34:39):
One of our one of our radio show fans is,
in Our database AND i'm sorry i don't know your
name right now because it's only come. Up as number
they asked us to go over the down payment, assistant
program again which you've been doing. Sure SEVERAL times so
i want to do the fast Recap, and then mike
you add, whatever you WANT right because i don't want
to spend too much. Time on, it so basically there's

(01:35:02):
a lot of different down payment assistance. Programs out there
i'm going to focus on the two most commonly used
that are the. Easiest to get there are several other
ones that, have meteor benefits but a lot of them
you're going to take a year or longer to go
through the process in order to. Get that money and
you really got to go. Through a gauntlet with The
two programs i'm talking, about right now if you can

(01:35:25):
qualify for, a conforming loan you basically are going to
get the down payment assistance as long as you meet
the income requirements and. Things like that so the first
one is an. ALL year program i Call It the.
FLORIDA bond, Program, i know MIKE why do i? Call
it that there was SOME reason why i Call It.

Speaker 5 (01:35:44):
That florida bond there's some nuance, within the program whether
it's the bond program or what THEY, call the tba
which is the bond alternative is not. To be announced it's,
the bond alternative which is they just have slightly.

Speaker 6 (01:35:59):
Different, Guideline guidelines okay So In the, florida bond program
you get ten thousand dollars no matter what price. Point
you buy there is a cap of what. You could
buy but whether you buy a two hundred thousand dollars
unit or a four hundred, thousand dollar unit you get
ten thousand. From the state you can use, that for
downpayment closing. Costs or prepaids.

Speaker 2 (01:36:21):
Do your income below, At, the threshold.

Speaker 6 (01:36:23):
Yeah there's income requirements in. All these programs you can't
be making a million dollars a year and then be,
in the program and you can't buy a. Million, dollar
house now, with this program, the ten thousand you don't
have to pay it back unless, you sell it, you
refy it or you move out of the house and
it doesn't become your PRIMARY residence, or i guess or
if you pay off the mortgage.

Speaker 5 (01:36:43):
Thirty, years later essentially it's repayable when the loan is paid.

Speaker 6 (01:36:46):
Off right with. No interest recruit so if you keep
the house for fifteen years and then, you sell it
you're just going to. Give TEN grand and i love
that program and the other program to talk to because
when you pay that, ten grand back it goes back
into the coffers and somebody else gets to use it
to help them. Buy a house so it's a. Really
great program that, way you're, helping you know, you get

(01:37:07):
help and then you help, other people afterwards which. Is
really cool now the second and that's available. All. Year
long now the second program is the one That's coming,
out july first and it only comes. Out every year
they usually put in one. Hundred million dollars, Have they,
decided mike yet how MUCH of.

Speaker 5 (01:37:24):
They i was checking last night has. Not been decided
so there's there's. Been three numbers i've, seen fifty million,
one hundred million hundred.

Speaker 6 (01:37:30):
And fifty million, OH my god i hope it's. Not,
FIFTY million.

Speaker 5 (01:37:33):
Yeah i hope it's. Not, Fifty million god so. There
undred million the state legislature is in, session right now
and so once they're once they this will be one
of their items that.

Speaker 2 (01:37:44):
They.

Speaker 5 (01:37:45):
Decide, On yeah right so it's it's just about getting it.

Speaker 6 (01:37:48):
Through both houses one hundred and fifty million, would be
nice but the last several years has been one. Hundred
million dollars and It's Called The hometown. Heroes, Program, yep
now originally because this person asked what programs are out,
there for teachers they. Specifically said Teachers So The hometown
heroes program was a program that was set specifically for

(01:38:08):
teachers and a couple other, people. Police officers firefighters then
it kind of expanded to medical field and then, after,
a while yeah. Public government workers and then finally the
state says. Said screw it if you could get if
you could get, a performing loan you got the money if,
you want it. WHICH is, great i mean it's almost every, Profession,

(01:38:30):
now right mike.

Speaker 5 (01:38:33):
It's not. Even profession based you'd have To work in
Florida for a. Florida, based employer yeah so they're, including
self employed like if your business is, Self employed here.

Speaker 6 (01:38:42):
So as long as you're Working for, a florida business
You Get the. Hometown heroes program. We love this.

Speaker 5 (01:38:46):
First time home buyers first.

Speaker 6 (01:38:48):
Time home buyer first time home buyer definition is not
you you're buying. Your first home it's your first primary residence.
Within three, Years, three years.

Speaker 5 (01:38:58):
Yes as long as you haven't owned owned a primary
residence mean the home that, you've lived in as long
as you haven't been on title or haven't had ownership
in a home in the, last three years your first. Time,
home buyer, SO ironically enough i could own ten investment
properties and As long as i've been renting for the, past,
THREE years right i would still be considered a first
time home buyer for the purposes of this.

Speaker 2 (01:39:17):
Could have been your primary but as long as you
ended up converting it to a rental and, it's, been
around yeah.

Speaker 5 (01:39:22):
And you haven't basically you've lived somewhere either rent free
or renting somewhere as opposed to.

Speaker 6 (01:39:27):
And what happens is like you co owned a property
through a, trust or something but you don't live.

Speaker 5 (01:39:33):
There as long as it wasn't.

Speaker 6 (01:39:35):
Your, Primary home okay so a lot of people think
that if you, own a property you're not a first time.
Home buyer anymore. That's Not true call us will give you.

Speaker 5 (01:39:43):
ALL the criteria i think we said, That last week
like they couldn't come up with the catchy phrase for, the,
three years right so they just they still call it
first time home buyers instead of first. Time home buyer
we haven't owned a home in the. Last three years
it's just it's just. A, Long explanation.

Speaker 6 (01:39:57):
Yeah so that that's the first thing all this guy's.
Blow me up, so hometown heroes let me just take it.
A little bit so it used to be it's like one.
Hundred million dollars that sounds like a lot of money
and win especially.

Speaker 5 (01:40:09):
Ten thousand apiece yeah, when, the, pool well hometime here
is one thing is you can it's not ten thousand,
this program specifically it's five percent of. Your loan amount
so if you're borrowing, two hundred thousand not, the purchase
price but. The loan amount if it's, two hundred thousand.
That's ten thousand but if you're borrowing, three hundred thousand.
It's fifteen thousand if you're borrowing, four hundred thousand, it's,

(01:40:30):
twenty thousand right and it's up to thirty. Five, thousand
dollars wow now there? Are you know thirty five thousand
is five percent? Of what number jim thirty, seven. Hundred,
Thousand hundred yeah so are you buying a seven hundred
thousand dollars home and are under the income limit? For
the program, which It's possible. RIGHT palmba's county i think

(01:40:53):
that the last year's income limit was about one hundred
and sixty thousand for, Your qualifying income which is that
enough to get you into a seven hundred thousand dollars
home and the resulting mortgage.

Speaker 2 (01:41:05):
Payment depends how much.

Speaker 5 (01:41:06):
You put down it depends on your, other, expenses essentially
right how much? You're, putting that no you're, borrowing, seven
hundred right you're borrowing seven hundred to get the full.
Thirty five thousand so if you only have, a housing
expense you might be able, to, Get there right meaning
you don't have a car payment or two car payments
like normal most people have. Something like that.

Speaker 2 (01:41:23):
But, It's possible right so depends. IF you're proactive I.

Speaker 5 (01:41:27):
Haven't got i haven't had A scenario when i'm getting
the full, thirty, Five thousand right but, twenty, Five thousand
sure i've seen that.

Speaker 6 (01:41:33):
TWENTY thousand absolutely i was using a real life example one.
Of our customers they were looking at roughly four hundred
thousand dollars unit the out of pocket costs, including, down
payment clothes. And costs prepaige we're somewhere between twenty three
and twenty eight dependent on which property they bought, Couss

(01:41:54):
of taxes so twenty three to twenty eight out of
their pocket.

Speaker 5 (01:41:58):
And they're getting like eighteen or they were getting nineteen thousand.

Speaker 6 (01:42:02):
From the program so if it was only a twenty three,
thousand dollar house they're coming to the table with four
thousand dollars out of their pocket to.

Speaker 5 (01:42:11):
Buy, a house yeah and, in, This, market like jim
is it reasonable to like negotiate a four thousand dollars
sellar credit?

Speaker 6 (01:42:19):
And can yes and could you use that credit and
still get The? Program byt yes so. There you go
you could actually come into houses. No money down and
let me tell you.

Speaker 2 (01:42:30):
In the history of the, Show, down payment well you.

Speaker 6 (01:42:33):
Can ask this so let's say you get nineteen, from
the state but you. Need twenty three instead of pulling
four out, of your pocket go to the, CELLAR and
go i want a four thousand dollars. Credit to closing
and if they give, it to you you're in, no,
money down? Right isn't it and so you can.

Speaker 5 (01:42:47):
Use seller credits you can't use the seller credit towards your.
Down payment obligation you can, cover, Closing costs Right But
the hometown heroes are any of these down, payment assistance
funds they actually count kind of. As your money so
you can meet your down payment obligation with the home.

Speaker 6 (01:43:04):
With the, bond right now you're using the seller credits
to help. Pay THE closing AND.

Speaker 5 (01:43:10):
I think i was leading to so the Hundred Million
for hometown heroes when it, was profession specific even when,
they expanded professions it, lasted, All year right like that
money was not gobbled up quickly because it was limited,
to you know certain. Types of buyers well, now, it's
everybody essentially all first time home buyers who you Know.
Work in florida that one hundred million doesn't last.

Speaker 6 (01:43:30):
Long, At All no and mike told, us LAST week
and i just want to bring this up to the
person that reached out because it's really important to. Let
everybody know. You're a teacher so teach, everybody this right
or don't because you want to be the one keep
it to. Yourself, the word well wait till you get
locked in and. Then, Tell everybody yeah mike told me
something really surprising because the Program, starts IN july and,

(01:43:53):
i thought, that you know people can go into the
program and Get, into Contracts september late September or early
october and still be part of that hundred. Million, Dollar
program historically mike is saying that's, not really true and
that really you have to be in contract based, on
you know it's not guaranteed and it's, not a science
but based on the history of doing this for, several years,

(01:44:15):
now he's like get in contract no Later than mid
august in order to have the. Money pretty much do you, still,
FEEL thisame.

Speaker 5 (01:44:22):
Yeah i. Do you KNOW last, year i checked we.
GOT an email i look for emails where they're announcing, kind,
of like hey funds were down, to this amount and
so the the the funds are almost exhausted came Out,
in mid august right so it's. Like six weeks we
had six weeks of a window where you could, reserve,

(01:44:42):
your funds right and after the six weeks then it
was questionable whether or not you're gonna be able to
take advantage. Of, the program now the fallback position is
the ten grand that one's going, to be available right
that that money. Doesn't run out but if you are
at a price point where like you could, get twenty
thousand that additional ten pretty important right from. A cash
perspective and so my only advice, is number one if

(01:45:04):
you want to take advantage of hometown heroes and get
the kind of that the bigger down, payment assistance amount
we need, To talk now like if you haven't talked to,
a mortgage professional you've got to do. That first step
you've got to make. Sure you're qualified then you talk
to your. Real estate agent you start. The house HUNTING and, when,
i say like get, me, a contract RIGHT that's when

(01:45:25):
i can reserve YOUR funds when i have. An executed
contract so get me a contract within those, first Six
weeks so July, TO mid august i want. The contract
in you can even can bring me a contract today
and we can we can plan on reserving the funds when.
They come available so from now Until, like mid august
that's your window of opportunity to almost to guarantee that
you're you're. Getting those funds if you go, longer than. That,

(01:45:47):
it's possible still the longer you, go past that then your. Chances,
are dwindling right because those, funds get reserved then there's
some fallout like loans, that didn't close it comes, Back
in available so there'll be some opportunities there if you
miss this. The media window but, if that's you we
got to talk like you, got a call you, Got
to call we got to, do your preapproval and we got,
to get you.

Speaker 6 (01:46:07):
Get you shopping the person that just asked all, that
they said. Really appreciate it you. Were very helpful thank you.
And exclamation Points, so thanks. Mike great, information thanking? ME
hear you i think they were, thanking and whoever maybe.
ALL of, Us, I, GUESS hey jimmy i understand we
have a caller.

Speaker 3 (01:46:23):
On, THE air yeah i want to think a phone
call eight seven seven nine two seven six.' nine six
nine mark dial that number because he's got a question. About,
Selling a Condo mark welcome to, florida talk real.

Speaker 8 (01:46:36):
Estate good more thing Everybody shout out, To, johnny stengime
fan uh. Glad, you're doing.

Speaker 6 (01:46:42):
Welter HEY that's awesome that i. FORGOT to say this
I can't even believe i. Forgot to mention this johnny
took a. Well deserved day off he's having fun. With
his family today he'll. Be back next Week. Everything's great
with johnny how can? We help you mark what's going?

Speaker 8 (01:46:59):
ON with your condo, A long story short i put
myself in a bad spot and took a, interest on
A loan and now i took too long to, get
out OF it and now i need To, sell my
condoct oh?

Speaker 6 (01:47:11):
It's a balloon payment is it? Like a balloon? Payment,
not a?

Speaker 8 (01:47:15):
BAYMENT okay too LONG i actually have, i got an extension,
but it's you. Know for three months and, my question
would be what do you think is the best rest of?
Way to spell this?

Speaker 2 (01:47:27):
Is the upside down? Are?

Speaker 6 (01:47:28):
You upside down well my first question is there are
there any assessments that are coming up in the community that.
You know about her i've already dealt with all those
state regulations that were put. Out two years.

Speaker 8 (01:47:38):
Ago, all that, stuff's completed it's done and.

Speaker 6 (01:47:41):
Everything's good and it's paid off and there's no upcoming
fees coming up. Or, Anything, like THAT no.

Speaker 8 (01:47:48):
Actually the ha funds, Are sorry hoa money you're actually
going to go.

Speaker 6 (01:47:54):
Down, a. Little bit okay excellent so that's a selling
point and you're going to have to. When you promote
property that's something that actually has. To be heavily promoted
condos are very. Tricky mark right now. Pricing it is
everything pricing. It correctly is everything it sounds like your
community is better run than a, lot of the communities

(01:48:16):
which is going to be a very. Big bus for
you but you also got to let people know about
it because there's there's really a lot of prejudice against condos.
Right now in, General if you want i'd be more
than happy to, do comp, for you, know free charge
obviously and do a comp and figure out what's going

(01:48:36):
on AND tell you how. I would handle it if
you would, like to Do that just leave JIMOTHY the
information and i Will call You on monday or tuesday
at the latest and tell. You what's going on let
me just ask you be question of the interest only
and you say you feel like you have? To sell
it now was? It an? Investment, property. It was yeah

(01:48:57):
okay did you do it for a rental or did
you do?

Speaker 7 (01:49:00):
To?

Speaker 6 (01:49:00):
BUY fixed sell.

Speaker 2 (01:49:02):
No i.

Speaker 8 (01:49:02):
Did it for rental i've had it for. About eight,
years now?

Speaker 6 (01:49:07):
Oh okay good good is it? In pretty good conditioner
a lot of honeydews after the runners have, got done with.

Speaker 8 (01:49:12):
It just went through. And READ it everything.

Speaker 6 (01:49:15):
Oh i missed that i'm sorry if. You, Said, that
already okay well That, That's the Perfect oh jared was
jared was kind of repeating. WHAT you WERE saying i
thought I missed it. As i say it that that's if,
you're totally fixed up that is going to be, a
very big deal, very very BIG deal because there's i
don't even, know your community yet but a lot of

(01:49:39):
the condo owners that, are selling right now especially if
they feel like, they have to sell they're not putting a.
Dime INTO the unit and i don't actually blame them,
to a certain extent but it also makes. The unit
less valuable so when you have, the fixed up unit
you're the one that's going to get the top. Dollar
in the community whatever top dollar, is in that community
you will get it, because especially with condos most people

(01:50:01):
don't want to do what we were talking about with
The Home Up in port saint lucy WHERE you become
the hgtv addict. And you renovate it most people in
the condos, they want it turnkey so that that's. A
very positive thing so you should be getting top dollar
in your neighborhood. Is what you. Should whatever that is
so if you Send, The information to jimothy i'll definitely

(01:50:22):
check it.

Speaker 2 (01:50:22):
All.

Speaker 5 (01:50:22):
Out, FOR you mark Yeah i would recommend mark talking,
to so step one talk to a real estate professional who,
knows what they're doing who really. Knows the condo game
and then, from A financing perspective and, i, know, a,
Guy yeah yeah exactly jim would be talking, to, Me,
and saying hey mike what type of financing is going
to get. Approved for this condo so that's, a really critical,

(01:50:44):
step which you know when you're buying a, condo with
a loan not only does the borrower have to qualify
right meet and, meet the underwriting standards but also the
condo project has to. Meet THE underwriting standards so, faha
has their rules it's almost like NON, existent To DO
fha and condo. Va has their rules, conventional has their
rules and there's two. Different levels of conventional so this

(01:51:07):
is like it's not about you could, set the price
right but if you accept the, wrong type of offer
it's like where the loan just has no chance of
getting approved you or you're going to be spinning your
wheels for thirty days while they try to figure out
how to undo the. Mistake That they made and i'm
talking the buyer's agent and the buyer's mortgage professional because

(01:51:27):
they got into something that has. No Chance of closing
so jim is one of those Agents who knows that.
Jim has good people He. Can rely on jim you,
know somebody there too right who can tell him what
type of financing is going to, actually work or. Not
what to avoid and so if you, want to be
successful you have to have that type of professional. Level
of Expertise. AVAILABLE so call jim i guess. The long

(01:51:49):
Story short talk to jim about it if you want
to sell.

Speaker 4 (01:51:51):
It the right way eight eight eight nine seven three.

Speaker 6 (01:51:54):
Seven Eight, two eight well mark thank you so much
for calling in and. Listening to the show how? LONG
you've been listening i know you Said You're a. Big,
johnny steve fan so are you a ready? Real? Radiohead,
like me.

Speaker 8 (01:52:06):
Yeah yeah PRETTY much every week, i, LISTEN to you
guys i learned SOMETHING every time. And, I appreciate it.

Speaker 2 (01:52:11):
Oh.

Speaker 6 (01:52:11):
I appreciate it mark i hope you. Have, a great, Weekend,
okay all right okay thanks. Em, So, uh so couples.
Yeah Condos are tricky, but i'm telling you this is.
The summer of buyers i'm going. To keep saying this
this is. The summer for buyers anybody that's been sent
around for a couple of years and feel like they've

(01:52:32):
been waiting for a market that's going to. Be in
their favor it's staring you right in, the face right.
Now it really is and we're not. Trying to make
you we're not trying to make you buy something you,
don't want to buy or buy something that's out of
your budget or. Something you can't afford, if that's the.
Situation do not buy but if you can afford and,

(01:52:53):
you want to buy this is the. Opportunity to do
that you're probably going to get the best deal out
there right now that. You've SEEN for years and i, don't,
NORMALLY say, that guys i mean you don't you haven't
heard me say this over and over again about how
how great it is. TO be a buyer i haven't
really talked. About this in Years, the message isn't hey
now is. The time to, buy you gotta buy and if,

(01:53:16):
you're not. Buying, now you're crazy no it's, If, you're
a buyer hey it's pretty it's. Looking good for you
it's looking better than it. Has been for whatever so
it's a good time. To be a buyer, if you're
a buyer. And just, explore it you know nobody's gonna
put a, gun, To your head right so if, it
doesn't make sense. You don't do it. That's the first thing,
but if you're interested you got to find out.

Speaker 2 (01:53:33):
What your.

Speaker 6 (01:53:33):
Options, are be proactive hey anybody doing? ANYTHING fun? This weekend,
i know. Uh no everybody's quiet nobody's going mountain climbing
or anything hanging from cliffs. By their finger tips that
sounds like, a ross thing does because it. Isn't a
gym thing do you?

Speaker 5 (01:53:54):
Have empowered, like, SUPs, jared, LIKE.

Speaker 2 (01:53:58):
Oh yeah, YEAH. I got that foyl. I'll, Probably WRITING
it yeah oh.

Speaker 6 (01:54:02):
I want to Try that out Sometimes i'm going to is?

Speaker 5 (01:54:05):
There an age. Limit on those things my.

Speaker 2 (01:54:07):
Nine year old's riding it's.

Speaker 5 (01:54:08):
Not Talking like the older what. Happens if you fall,
what happens.

Speaker 2 (01:54:12):
Is water but if you fall, IN front, OF it
i mean i guess my. Buddy lost his Toe BUDDY
los his so.

Speaker 6 (01:54:18):
I FORGOT about that maybe i don't want. To, write
that thing. Hey love the Show.

Speaker 3 (01:54:24):
Thank.

Speaker 6 (01:54:24):
You to, Thanks Everybody Thank you.

Speaker 3 (01:54:27):
Guy Ross Kamaronets, From Bright, way insurance juno beach thank you.

Speaker 4 (01:54:30):
For Coming in today Jared PERRY from, the paris cpa group.

Speaker 3 (01:54:34):
Thank you, so much stay tuned We Got a little
florida panthers talk coming up next