Trusts. Shout outs. Home buying process. Down payment assistance. Renovation loans

Episode Transcript

Speaker 1 (00:14):
Navigating today's real estate market can be tricky. Want to
buy or sell a house, finance or insure a house,
or stuck with a house and don't know what to do.
Florida Talk real Estate has been your local one stop
real estate shop since twenty twelve. Get the advice you
need from your local real estate pros. Here are your hosts,
Jim Depola and Johnny c. You live on real Radio.

Speaker 2 (00:36):
Good Saturday morning. Welcome to another edition. It's Florida Talk
real Estate and we have you for the next two
hours of info attainment. See you out there. Thanks for
being there. Ninety two one one o one seven. That's
the old terrestrial radio. Without you, I don't know what
we would do. Thank you for being there. Of course,
we're worldwide with your free download your iHeartRadio app, so

(00:57):
that means yeah, you could be like any corner of
the earth right now. It'd be weird hours if you're
like specific corners. But thank you for tuning in on
a Saturday morning. Of course, we also offer up a
live stream Join us on Facebook. That's Florida Talk real
Estate on Facebook on YouTube as well. Florida Talk real Estate, LLC.
Home of a ton of informational chunk videos plus our

(01:20):
live stream on a Saturday morning. If you're there at
the gates, thanks for being there. Of course you can
join us later. And speaking of joining, you're welcome to
join the program toll free. You got questions, comments, concerns
in the world of real estate? Would you like to
be involved at the conversation? Hand dial up eight seven
seven nine two seven six nine six nine. The first
voice you'll hear the melodious tones of our producer Et Shordinay,

(01:42):
there's Jimithy, my brother from another mother. What's up, dude?

Speaker 3 (01:45):
Hello, Hello, and a good morning or good evening. If
you're in Bangkok. It's eight oh one right now, see
weird hours PM. Yeah, my good Saturday morning.

Speaker 2 (01:52):
They're like, no, bitch, Nope, it is not Nope, it's
good evening. Yeah you went to Bangkok. Yeah, of course.
There's there's a little little look in the depths of
Jimothy's mind.

Speaker 4 (02:04):
The first thing that came to mind.

Speaker 2 (02:05):
City well, bucket list, bucket list stuff. Always good to
see you, but dude, good to see you. Buddy. Johnny C.
That's me are Air Traffic Control, your old buddy, your pal.
There's Mike Row he's leading off the VIPs. He's the
mortgage guy from the mortgage firm.

Speaker 5 (02:20):
What you think of you going Bangkok?

Speaker 6 (02:22):
No?

Speaker 5 (02:23):
But he made me think like, is it really a
twelve hour time difference? That's what I was, That's what
came to mind. I'm not sure. I've never been there.

Speaker 2 (02:30):
Nor heard of it. Yeah, would you be interested if
if the stars aligned money was no object? Is that
a destination that you would.

Speaker 5 (02:39):
Be interested in? Meaning like I'm unlimited destinations? Yeah?

Speaker 2 (02:43):
No, none of the limited.

Speaker 5 (02:44):
No, I have to I have to choose, you have
limited No, I have other ones that are that I
would go to higher on the list. Yeah, there are
other cities, other places. Got you any uh in the
in that area and in the trees? Yeah yeah I
think so. Yeah Yeah, yeah, me too. Indonesia is a
place that's always intrigued to me. Want to It's a
big place.

Speaker 2 (03:04):
Japan, you want to China? Would be definitely want to
go to China. Yeah, yeah, it's just I don't know
if it's ever going to happen.

Speaker 5 (03:11):
Yeah, we're going deep today. You said something when we
right before we first started, and I was like, Johnny
just invented a new axiom. Uh, you were talking about
we were talking about the AC and you're like, well,
so there's an axiom that says, if it ain't broke,
don't fix it.

Speaker 2 (03:24):
Don't fix it.

Speaker 5 (03:25):
Yeah, and yours is don't fix it if you don't
use it, if you don't need it. Yeah, if you
don't use it.

Speaker 2 (03:36):
Why fix it?

Speaker 5 (03:37):
Exactly?

Speaker 2 (03:39):
Yeah. I never really wrapped my head around that, but
that is a new one.

Speaker 5 (03:41):
Is Yeah, yeah, you don't need it, you don't need
I fix it, don't fix it?

Speaker 2 (03:44):
Perfect.

Speaker 5 (03:46):
And then you said something else in the edge how
we think. I don't know. Maybe my brain's in a
weird space. You're talking about the corners of the earth.
I'm like, Johnny's a square earther, isn't. We're gonna have
to discover this today.

Speaker 2 (03:56):
Not a flat square, any core of the world, any
of them. Find a ninety degree of your choosing and
listen to Florida talk to always good to see you,
my dear, Yeah, goodn see And of course it's a
pleasure to say good morning to our fearless leader. Thirteen
plus years now, I've told you he runs a top
producing Keller Williams Tein It's the Florida Home Pro's team,

(04:17):
Keller Williams Innovations. Hey, Jimmy, jim how you doing.

Speaker 7 (04:21):
Hey, I'm doing a good good happy, uh, South Florida everybody,
And I hope everything's going right great today. We got
a really good show today. What sounds like every time
I say that, I always think of I can't remember
the guy's name. You got shoe, We get a shoe

(04:41):
that's way past most people.

Speaker 4 (04:43):
Yeah, waited Sullivan. Isn't that what they used to call it?
A theater that Dave Letterman was in?

Speaker 7 (04:49):
Yeah, so and he's ancient now right, so yeah, so
Allen now, uh it's yeah Fallon, I think it's his
studio or yeah Fallon. Yeah. And so we're gonna have
a continuation of the Buyer's Guide. We were doing some
of it yesterday, but we had the Construction Laurier Andrew
Wyman on last week and really great, great content, great information. Andrew,

(05:14):
thanks for coming out on the show. He was really
happy you may come back again. So we're going to
get into the Buyer's Guide. We're going to talk about
construction loans. What I decided was there's so much negative
headlines about why it's a bad time to be a
buyer right now, and I don't agree with that at all.
So I'm gonna start showing the programs and start enlightening

(05:37):
people that you're not reading in the headlines. If you
read the headlines, you're not really getting a flavor of
what's really happening in our market here right now. So
we're going to talk about down payment assistance programs. We're
going to talk about construction loans and how you can
use construction money to buy that fixer upper and still
have the money to do the heavy lifting to get

(05:58):
the house to where you need it to be in
an affordable way. We're going to talk about also about
a unique censious track loan that the mortgage firm specifically
either has or created or something, right, Mike.

Speaker 5 (06:12):
Yeah, it's exclusive, and yes, we created it, and we're
gonna use.

Speaker 7 (06:16):
Prietary, yes, proprietary mortgage firm type of loan, and we're
going to talk about it with a real life example
of one of the properties that you can use this
loan on a town home we have in West pomp
So I'm excited to talk about all that today too.
But at first though, I want to just talk about
a couple of houses we have in a market, and
a couple of shout outs, Uh, if we don't if

(06:37):
you don't mind, Oh, and we have a caller. Let's
go ahead and do the caller first.

Speaker 4 (06:41):
First.

Speaker 7 (06:42):
I forgot about that.

Speaker 4 (06:43):
So we got Dane. He's checking in with us.

Speaker 3 (06:45):
There's a little bit of a situation with a second
home that he's not quite sure what to do with,
so he was calling to get advice from the experts.

Speaker 4 (06:52):
Dane, Welcome to Florida Talk real Estate.

Speaker 6 (06:54):
Good morning Dan, thank you, Good morning guys, Morning morn
and Jim has to do with you guys, longtime friends
from the radio, that's.

Speaker 7 (07:02):
Right, and a longtime customer. You We helped you sell
the town home. What year is that, twenty nineteen?

Speaker 6 (07:12):
This son's great, Yeah, mar Bellavilla's I had a place
and Jim came in and maybe want to buy it again.
By the time I saw that listening.

Speaker 5 (07:21):
Awesome, that's a nice little slogan. I'll make you want
to buy your own house.

Speaker 6 (07:28):
That's very creat Ariel shots. I'm like, I live that
close to the beach. Good experience. So my question is,
you know I've been here a long time resident. We
moved here in nineteen seventy two. I've been here most
most of the time since, and my parents have a
place in North Palm Beach where I grew up. It's

(07:49):
a great house, the area is fantastic, the neighborhood where
they live corner a lot. And they're they're getting older.
My dad's ninety this year, you know, not far behind,
and I'd like to find a way to try to
keep the house and the family. And I haven't had that.
I mean, I've mentioned it to them, but we haven't
done anything concrete to take steps to try to figure

(08:13):
out if there's a way that I can do that.
Whether it's myself, whether it's with myself, I have a
couple of sisters, or you know, a buddy or something
along those lines. There's just some way. I don't want
the house to just disappear. And I'm sure there are
some tax consequences and some other things to consider. I'm
just wondering what some recommendations you might have for either

(08:37):
having a conversation with them, or here's what you can do,
or here's a few things to consider, anything like that.

Speaker 7 (08:43):
Yeah, absolutely, Dane. I love this question because I just
had a case where we went out to look at
a house this week, and Nancy always Nancy my admin
at the office, Sergeant Holka, my big do. She always
does background checks to make sure there's nothing crazy about
title or is there a wy Green attachment on the

(09:05):
property or something like that, you know, a kind of
phantom loan or something yeah, visible, And this is a
very common thing. Is what happens is Dane's doing it
the right way, where he's asking how to do it correctly.
Most people what they do is they go down to
office depot, whatever thing's called. Write nothing against that store.
But they go get a form for a quick claim

(09:26):
deed or you know, they call it lady bird deeds
sometimes and they fill it out and they might even
get it notarized, but they don't do it right and
it's no good and then they have a big problem.
There are a lot of easy ways to fix this,
and they're not expensive. So one of the ways, I'm
not the expert, but we're going to get you to
the lawyers that you need. And that's what you really
need is a lawyer. And it's very easy, not costly.

(09:49):
But what you're probably going to do is create some
type of trust and you guys can decide your parents
will still own the property for the lifetime. As long
as they want to have the proper pretty and they're alive,
they get to stay in that property. Nobody can change
their mind and take it away from them. But once
they pass, instead of going through the whole probate process

(10:09):
and everything, it because other members that are alive still
own the property, it just becomes their property. I'm saying
this in a very layman's term, so it might not
be exact I want law off as Paula Krasker, but
that's the concept.

Speaker 2 (10:23):
It is pretty lamans when I did mine, so Dane, Like,
there's scenarios, as Jim noted, that are going to be
laid out in this trust, and it's if Dad dies,
then this is what happens. If Mom dies, then this
is what happens. So like it's for me, if I die,
it goes to my wife. If me and my wife die,
it goes, you know, my daughter with my grandmother, my mom.

(10:44):
And there's all these different scenarios. If all three of
us get in a car accident, God forbid, here's the
scenario where the you know, my nephews, Like there's all
these scenarios laid out, and you'll you'll lay all that
out as well. It's really really, I don't know, I
want to say, it feels like the most adult thing

(11:05):
you'll ever do. It really felt like the most adult
thing I ever did. And I bought a house. I
mean it felt like when I walked out of there,
I was like, that was the most responsible thing I
have ever done.

Speaker 7 (11:16):
I am officially an adult.

Speaker 6 (11:17):
Now are the Cowboys anywhere on that list? Johnny way down?

Speaker 4 (11:22):
I'm not leaving a squat, Jaredjown.

Speaker 6 (11:26):
The exactly the reason I called Jim was, you know,
you offered to call me off the air. But I
felt like this is one of those topics that probably
a lot of people have questions about. I know that
I have for I mean, it's been five years I've
been wondering this very question. Just didn't really know who
to ask.

Speaker 7 (11:46):
And if you don't, if you don't do it and
you find out afterwards, oh my gosh, it's it can
be a complete mess. And even if it isn't a mess,
it's at least an aggravation, and it's like a deep aggravation.
So don't you and you don't have to do and
it's so simple, and I can't believe how inexpensive it
is to do that compared like people are so afraid

(12:07):
when they hear attorney yeap and transfer of house or
that kind of thing, and they a state. So yeah,
it's so expensive and so they don't want to do it,
and I understand that, but when they find out the
real cost is like, really, you didn't want to spend
that to protect your you know, a big asset.

Speaker 2 (12:21):
It doesn't matter what it is. Don't fill in the
blanks on your own. Find out how much it costs.
And if it's like you're waiting WHOA how much? Then
at least you know, but don't fill in the blank
on your own. It is very inexpensive, actually.

Speaker 5 (12:34):
Is uh? Dane? Are you? Because some of that stuff
happens like without a state planning, like the home will
go to Uh I think there, I forget what the
term for it is in intestate maybe is like there's
there's just like a pecking order, right, like how how
your stuff is inherited? All everything right, including debts and
everything like that. Are you do your parents have some

(12:54):
sort of mortgage against that property that you're concerned about
or you're wondering what's kind of okay?

Speaker 6 (13:00):
Yeah, that was that was part of the question. I mean,
not not directly, but yes, they still quite a bit
on the house, okay.

Speaker 5 (13:09):
And so that is also going to be passed down, right,
so essentially the home along with any obligations of the
home or something that you're you know, their descendants your
family should be thinking about. Do you know, is it
a reverse mortgage or just a regular forward mortgage.

Speaker 6 (13:29):
I don't know the answer to that for sure, but
that was one of the reasons why I was wondering
if it's you know, myself and my sisters in terms
of qualifying or something along those lines. I mean, I
don't want to get a messy obviously.

Speaker 5 (13:42):
But yeah, I mean you should.

Speaker 6 (13:43):
Be able to say that, yeah.

Speaker 5 (13:46):
You should be able to just continue making the mortgage payment.
So that's one option, and depending on the terms of
that loan, that might be something you just just be
prepared to do. Financially. Uh, if it's a loan that
needs to be refinance for some reason, for example, reverse mortgage,
you would have to do something if the interest rate,
you know, is favorable, So otherwise refinance you might want

(14:09):
to think about getting prepared to get qualified for a
loan in some way, so you know, credit, that income,
all those things. But I mean, if it's just a
regular mortgage and the rate is you know, reasonable, you
should be able to just continue making that mortgage payment.
So from a financial.

Speaker 6 (14:29):
Two steps. One is the trust in talking to Paul Prasker,
and the second is figuring out the financial aspects of it.

Speaker 5 (14:37):
Yeah, it's maybe prepare for if your if your hand
is going to be forced in some way, what options
are you going to have?

Speaker 7 (14:44):
Right?

Speaker 5 (14:44):
And you know, frankly that might even influence the estate planning,
like well, who's going to be able to pay this
mortgage or who's going to be able to refinance or
do whatever? So maybe that that has some implication and
how you set up your estate planning. Are there there
how they set it up?

Speaker 2 (15:02):
And I'll tell you the more they can be written down.
I fortunately I've never really had to experience it unless
on the outside looking in as a child, But every
passing that I've been at least kind of tied to man,
it just got ugly. It was It's unbelievable how family
turns on each other in times where there's something to

(15:25):
be had and even where you're like, there's no way
not my family. Every scenario I can think of, I
was like, I can't imagine that happening, And it happened
every time. So the more you can get down your
parents' wishes, like it's just it's just all going to
be better, because it every I'm telling you it has
been one hundred percent of the time, it has been messy.

Speaker 5 (15:46):
As said sometimes Johnny, there's even verbal agreements everyone over
Thanksgiving and you get talking about it's his dad's wish,
gets what right I want? The set of golf clubs,
you know, and stuff like that is you know, unless
it's written down, it's kind of you know, you're hoping
everybody's uh on their best behavior when the time comes.

Speaker 7 (16:07):
I got to ask you, Mike, did did you just
use the example golf clothes just by chance?

Speaker 5 (16:12):
Yeah?

Speaker 7 (16:13):
Oh that's so funny, Dane. Isn't that funny that he
used that example?

Speaker 6 (16:16):
Yeah?

Speaker 7 (16:16):
Yeah, why is there his he's involved in the golf business.
That's why I thought maybe that you knew that isn't.

Speaker 2 (16:27):
Isn't that funny?

Speaker 7 (16:28):
I wasn't sure. I thought Mike had talked to you
about financing for it. He knew that you were in
the golf business, so.

Speaker 5 (16:33):
No, I was maybe I was thinking about things my
own appreciate.

Speaker 6 (16:37):
I appreciate the advice that, uh make me a little
more positive about my weekend. And I'll go have that
conversation with my parents and just kind of figure out
the next steps. If we can talk later.

Speaker 7 (16:47):
I'll call you. I'm calling you Monday. I'm going to
reach out Monday for sure, and you'll get the call.
And thank you so much, faint Dane for reaching out.
Looking forward to touch you back again.

Speaker 3 (16:56):
Yeah, Dane, before you go, just I'm gonna put you
on hold. I got something for you off air, okay, but.

Speaker 7 (17:00):
Yeah, yeah, okaykay, awesome.

Speaker 2 (17:02):
Thanks man eight seven seven nine two seven six nine
six nine toll free. If you have a question, comment, concern,
you want to get involved in the conversation at hand,
don't be shy. The phone line is going to be
working well this morning.

Speaker 7 (17:13):
Yes, and your phone call supersedes our subjects. So when
you want to call, we always stop and try to
take the call right away because we know you might
be in the car doing stuff, So we try to
get to you as best weekend and we are live
you know what, when I was hearing you guys talk
about this and might bring in the perspective in about
the financing and asking about mortgage and stuff. That's what
I love about this show is that we have all

(17:35):
these different professions here to kind of overlook things and
see how things work. Because I'm sure Paul would bring
up the mortgage and stuff, and some attorneys will, but
some won't write and they won't even discuss it as
an issue or something, and it might be an important
factor and the decisions that you make. So that's what
this whole show was based on, is getting you to

(17:55):
the people you need, but not just one person. Sometimes
you need to talk to a couple of different people.
If you're tight on your budget when you're trying to
buy your house, not only do you need a really
great mortgage broker and a realtor that are communicating, but
sometimes you have to have the insurance age and involved too.
Ross kameronas from Bright Wing Insurance, will be on soon.
He's taken a couple of weeks off, God bless him.

(18:16):
Everything's good with them. He's going on to ventures, let's
just put it that way. So I have great stories
from Ross k Bangkok. No, I don't think so, but
you know he's roight. Yeah, he might be hanging off
a clip somewhere I heard or something too, So I
don't know. Yeah, I don't know. It's got crazy stuff,
so you know how ross is so. But anyway, one
of the great things about us is that you can

(18:37):
call here and you can get to five different types
of people that you need right And that's one of
the best things about the Florida Talk Real Estate.

Speaker 2 (18:46):
That's why we call it the one stop real estate shop.
It is a team of pros pros. You get a
team experts in their field, and that's hard to find
unless you know floridatalkre estate dot com. Then it's real
easy to navigate right there, floridatokreal estate dot com. Know
what is it? Love it Share, You can change lives
at Florida Talk real Estate dot Com.

Speaker 7 (19:03):
I'd like just to go over a couple of shout
outs and talk about a couple of properties I have
on the market. First shout out is to Charlotte, Carrie
and Tammy who we finally closed out seller buyer situation.
Now this was not a seller buyer, It was more
like a buy sell, and I said that with a

(19:24):
pause because there was a time period from the time
that they bought to the time they sold. So they
weren't homeless because they bought first, right, but they had
two properties carry for a while. We got the deal,
We got the sale done. Met with Charlotte the mom.
She was looking to get into her first floor unit
because she's getting up there right, so she didn't she

(19:45):
wanted a flat condo. I don't remember, Mike, if they
bought cash or if they used financing. Mike, do you remember.

Speaker 5 (19:54):
Where did they buy?

Speaker 7 (19:56):
Well, Golden Lakes? Is that up north West Palm? I
think it was cash. I'm pretty sure.

Speaker 5 (20:02):
Yeah, it wasn't.

Speaker 7 (20:02):
I didn't do it long, Okay, then it was cash
for sure, because they would have used you if it
was going to happen.

Speaker 5 (20:07):
We might have talked about whether they I think you're right,
should they go cash or do finance?

Speaker 7 (20:11):
That's right, That's what we did. So anyway, we helped that.
We helped her get a flat unit that was highly upgraded,
computer starting burping.

Speaker 5 (20:20):
Uh to where she ready.

Speaker 7 (20:22):
Moving, ready turnkey with a lot of upgrades. Really loves
the place. When I sat down with her, she's been
there a couple of months now. She just absolutely loves
so I felt so good for her, and we got
the household really happy that that was done. It was
you can hear my voice. It was a little tough.
We didn't get the we didn't get the price we
were hoping for, but we had a couple of surprises

(20:44):
with the electric in the condo before we closed, so
that really hurt the value of the property.

Speaker 5 (20:49):
Did it take longer than you thought to sell?

Speaker 7 (20:51):
Way longer, way way longer. The market can be slow
if you don't price it right. I'm not saying they
didn't price it right, but that particular community has seen
declining prices pretty dramatically, and I'm starting to see that
in a couple of neighborhoods. Not across the board, but
we're starting to see that shadow starting to slowly overcast

(21:12):
our area of the slowdown. You mean, everybody's predicting.

Speaker 5 (21:16):
What we're going to talk about later. Where it's like,
is it a good time to be a buyer? That's
actually real world example.

Speaker 7 (21:23):
Of let me tell you how low they sellers are
going through Essentially, let me tell you how low we
sold that unit in it. I feel bad about this
and the owners know about it. But the appraiser called
me up and asked me why we were selling it
so low. And you don't get calls like that VENI usually.

(21:44):
And we had it on the market for a long time,
but the values in the neighborhood were dropping dramatically and
they decided they were going to take it because they
didn't want to carry it any longer. So you know,
we had to do what we had to do in
order to get it done. And that's what happens in
this kind of market, which is really great, great opportunities
for buyers and sellers don't always have that experience. I

(22:05):
don't want anybody thinking, well, that's the way it is
with every house. That is not the way it is
with every house, right, And you can still get houses
sold at very near your list price or at list
price if you do it right. But there's other factors too,
like the if you're in a neighborhood where sellers are
just automatically selling unexpectedly low because they just want to

(22:30):
move the property, that's really going to affect your neighborhood
for a while into all that clutters out, right, So anyway,
congratulations that we got that one done. I have another
really really happy story that makes me smile. I don't
even know all the details yet. Remember last week we
mentioned that we had a listener from YouTube, Michael and Colleen,

(22:53):
and they became fans of us on YouTube. Thank you Michael.
And he's been talking to us about a year and
a half two years about selling in New York and
then moving to Florida. But they didn't know where they
were going to move, but they weren't going to do
it till next year. Well, they decided very quickly, about
a month ago, maybe month and a half ago, we're
going to do it now. And I got him a

(23:15):
top top agent, Josiah Potter. I'm going to get him
on the air soon with us, you know, when we close.
And Josiah helped them find a new construction home up there.
They went out and looked at a couple of communities
out there. This last weekend they flew into Orlando, so
they went looking around, and Josiah left me a voicemail
on Monday saying that as Colleen was signing the documents

(23:39):
for the new construction home she was buying, she was
literally in tears. She was so happy. That's all, I'm
getting chills just saying and I heard that. I only
heard a little clip of his voicemail, but that's what
it said. And I was so busy, I didn't you
get to finish the whole voicemail. So I'm giveing it
like a little little like apertif to make me feel
good later today when I don't listen to the whole

(24:00):
thing itself.

Speaker 5 (24:02):
Don't don't leave important details for Jim at the end
of a voice exactly.

Speaker 7 (24:13):
So anyway, congratulations to Michael and Colleen. Michael sent me
a really nice text espace saying, hey, fellow Filridian, because
they're moving down here. That made me feel really good,
so really excited for them, very very happy. Even they
were even thinking about selling their house at one points,
so we got them an agent up in Scotia, New
York to go out there and take a look and

(24:33):
see what they could sell a foreign how much they
would net and all that. So you know, we really
can help you anywhere you are, and if you have
real estate questions, we can pretty much helpe you almost anywhere.
And by the way, Keller Williams is in forty four countries,
so we always talk about here I haven't done an
at a country thing, but I know it'll come one day.
So we're in forty four countries. So if you're thinking, hey,

(24:55):
I'm selling here and I'm moving to Spain, give me
a call, Okay, because I I got people in Valencia
right now ready to work.

Speaker 5 (25:02):
You might have to go and actually meet those people
in person.

Speaker 7 (25:05):
Yeah, I'm gonna have to do a road chip on
that one.

Speaker 2 (25:07):
Yeah, just to be able to sleep.

Speaker 4 (25:10):
We had our friend to move to Scotland. I know
you sold there.

Speaker 7 (25:13):
Well, well, Carl just sort you know, I mean, I
know you didn't know Ireland. It was yeah, Carl, and
he just he just came on Facebook and said hello
to everybody from Ireland. He's still keeping it touch So
thank you, Carl. Hope you guys are doing great out there.
They were in the process of renovating a town home
and this little tiny hamlet. Remember we I think we

(25:33):
sold a couple of pictures on YouTube once. It was
like a little tiny street.

Speaker 5 (25:37):
We looked at the town once.

Speaker 7 (25:38):
Yeah, something like that was pretty cool. Anyway, I hope
you guys are doing great out there. I wonder what
the weather is like in Ireland right now.

Speaker 4 (25:45):
Let me guess cold and raine.

Speaker 7 (25:49):
And you know it's funny. I was talking to somebody
in Colorado this week and where else Colorado on DC
and he both said it was cold and rainy, and
we're almost June. What's the cold and rainy?

Speaker 5 (26:00):
We haven't been rainy enough? Right, It hasn't rained, Not
that I've said that, of course.

Speaker 7 (26:05):
June.

Speaker 5 (26:06):
Now June, it's gonna the faucet is turning on.

Speaker 3 (26:08):
To say anything to the northeast, I had twelve days
of rain solid.

Speaker 5 (26:14):
That's all right, They're gonna have a beautiful, hot, muggy summer.

Speaker 2 (26:17):
Come up, let's go.

Speaker 7 (26:20):
I want to just go over a couple of properties
we have for sale, and some of these properties we're
going to use for the Summerspier's guide that we're gonna
pick Mike's brain like crazy today and a little bit
of my brain too to figure out whatever's left of
it in order to figure out how to get the
best deals out there right now. So we're gonna have
tips for mortgage broker and realtor to figure out how

(26:40):
to make that happen for you. But let me go
over a couple of properties you have on the market.
Let me pull them up because I was fad to
check them out first.

Speaker 2 (26:48):
Remember Florida Talk real Estate has Facebook page on YouTube
as well. We livestream every Saturday.

Speaker 5 (26:54):
Excuse me.

Speaker 2 (26:55):
And yes it is a dot com your one stop
real estate shop. Always remember Florida Talk really dot com
when you're looking to buy a home, sell a home,
stuck with a home, you don't know what to do
anything that touches the world of real estate and you
need a professional. Florida talkre Estate dot com. That's your resource.
No what use it, leve it, share it. Florida Talkrealestate
dot com.

Speaker 7 (27:14):
We just put a property on the market yesterday. It
is in a pom Beach Gardens town home. It's a
two bedroom, two and a half bath town home. It
was completely renovated in twenty one, twenty two, twenty twenty two.
New kitchen, new bathrooms, new flooring, new paint. It feels

(27:34):
like a brand new unit. No new and it's in
a great community called Sandalwood Estates. Sandalwood is States, is
right by the Palm Beach Gardens Medical Center. You see
all the hospital workers. It's a great place to rent
because you're allowed to rent even the first year if
you turn it into a rental. But you see all
the hospital workers like driving their bikes, riding their bikes

(27:56):
or skateboarding to the hospital over there. It's that close.
Good rated schools, really walkable community, great part of Pon
Beach Gardens. We have it on the market at three
seventy five and it even has a brand new roof.
And in that community, the owners are responsible for dealing
with the roof and a lot of them have assessments

(28:16):
through the community to pay deal with the roof. This
roof full of assessment is paid. It was a twenty
five thousand dollars assessment and it was paid. So this
is like that roof was twenty twenty one, so four
year old roof. Everything is in great shape, got hurricane
panels everywhere and impact glass store ready to go. Three

(28:38):
seventy five.

Speaker 5 (28:39):
How much is the HIA there?

Speaker 2 (28:41):
Oh?

Speaker 7 (28:41):
Really low? Hold on, I think I don't want to
say thank you, Mike. Two hundred and thirty one dollars
and thirty three cents a month. So two hundred dollars
a month for an HOA is two hundred and thirty
dollars a month.

Speaker 5 (28:53):
Some people might be blinking at that, but that's on
the low end.

Speaker 7 (28:55):
That's on the low end to me. I'm thinking three
fifty's kind of the middle, right is not the middle
pretty much?

Speaker 5 (29:03):
Pretty much?

Speaker 7 (29:03):
Yeah, yeaheah, So really good opportunity for somebody. And the
fact that it's rentable immediately really gives you a lot
of flex on what to do. Maybe you buy it,
you stay in it as your first home, and then
when you're ready to increase and go up in a
property or something, you keep this one for a rental
or something like that. And with the newer roof and everything,

(29:25):
you're not gonna have to worry about anything. And the
AC I think in this one is twenty twenty two,
so I mean it's it's ready to go turnkey ready.

Speaker 5 (29:33):
Does I'm curious, does no rental restriction? Basically you could
buy it if you want it as an investment property,
you could rent it out immediately. Do they allow like
people doing short term rents there, like the you know,
the airbnb type stuff.

Speaker 7 (29:48):
Not Airbnb. But the rental restriction is you only can
do four month minimum, okay, and you only can do
once a year if I'm not mistaken, it might be
twice a year, but you only can reunt it once
a year, I think, okay, okay, but if you turn
it into to annual rental, And to be honest with you,
I know this community. I've actually helped the family buy

(30:11):
this property back in the day awesome, So I know
this community really well. In this community, tons of hospital
workers love working in this community. So if you have
a fixed up unit, you know the medical staff that's
all surrounding that whole area they love. They eat this
one up with the spoon. So even if you want
to turn in a rental, it won't be too hard.

(30:32):
It won't be hard to get an annual rent on
that at all. So anyway, if you're interested in that,
give me a call if you want to check it
out on Facebook. It's thirteen oh two thirteenth Court in
Palm Beach Gardens. We also have another property on the
market now. This one hasn't moved yet, and i'd really
like to. We're getting action on it, but we're not
haven't found our buyer yet. It's one two five two

(30:54):
one Northwest Lynch Lane in Port Saint Lucy. This is
a really nice skated community called Copper Creek. It's not
in that western part of pombe Port, Saint Lucy, Johnny
that I haven't really covered that much before now, and
you know, I've done a lot in Saint Lucie County,
but this is on the western area that I haven't
really gone out too much. It's a really nice, newer

(31:16):
construction twenty twenty home, four bedroom, three bath, almost twenty
three hundred under air, two car garage, nice backyard, and
it's only on the market for four hundred and thirty thousand.
It's almost like a brand new construction home. So that
one's ready to go, and we're just waiting for the
right buyer on that one. So if you if that

(31:38):
sounds like you're looking for a four to three under
four point fifty and that one. The HOA is two
thirteen forty two, so even a little less than the
other one about that and this one has a lot
more amenities than the other community. Now, we also have
a log cabin home that we're trying to sell. We
haven't found the right buyer yet. We've had several showings

(31:59):
for we're not there yet. It's in Royal Palm Beach.
It's one of those acre and a quarter kind of
lots a lot of people think this part of Royal
Palm Beach is really the acreage.

Speaker 5 (32:11):
But it's not the acreage.

Speaker 7 (32:13):
It's called Royal Palm. It's technically Royal pomp Dress so yeah,
and it's not a fifty second court so, but it's
considered Roal Palm. So that property is a log cabin home.
It's a two story home with a front porch that
really makes you feel like.

Speaker 5 (32:27):
You're in a lot on those pictures.

Speaker 7 (32:29):
Yeah, if you love lock cabin, this is a really
nice home. It also has a detached building with a
one car oversized one car garage that's being used as
a workshop. And then it has a one bedroom, one
bath loft, not a loft, it's it's it's actually on
the floor as a flat. It's just a bigger building,
so you have a one to one and then right

(32:51):
to the side of it is the oversized garage that
one one's being rented out for sixteen hundred dollars a month.
The tenants would like to stay, they're good paying tenants.
We have that whole compound on them and it also
has a pool, and we have that whole compound for
six hundred thousand dollars. We also have that boat dock
property in Singer Island. That's the two bedroom, two bath,

(33:14):
two bedroom, two bath, brand new everything with nice intercoastal views.
It's got a dock that can handle up to a
twenty three foot boat. We had an open house there
last weekend. We had a bunch of people come, but
all of them were and a lot of them liked it.
I think we had four groups of people come. None
of them were fifty five and over. Well, one couple

(33:35):
really liked it, but they were like thirty one. That
isn't going to help.

Speaker 5 (33:40):
So you can add them together.

Speaker 7 (33:41):
Yeah, we could add the husband white together. We'd make
it so that property is really great on Sugar. It's
on ten thirty Sugar Sands in Singer Island. It's at
five twenty five very good value. So come out out
if you're interested. And then we have two we have
three other properties. I just want go over really quick.
We have a brand new property that we had on

(34:03):
the market last week and I didn't really mention it.
Sorry about that. Three ZHO three one Southeast Lexington Lakes Drive.
It's in Stewart. It's a it's like a two bedroom,
two bath upstairs and downstairs is just the garage. So
you walk in, you park your car in the garage,

(34:24):
and then you walk upstairs to get to your unit.
All interior of your unit. It's a townhome, it's a
town it's a condo, but it's a town home style,
but it's a condo actually community. Okay, yeah, so that
property is turnkey, ready ready to go. We have it
only at two sixty five. The last three units that's
sold in this community, these units this size, we're two

(34:49):
seventy nine to eighty and two eighty five. We have
ours a two sixty five. Nothing's wrong with our property.
It isn't like we did it for condition. We did
it to move it. So this pro property is uh
you know, is three to five percent below the other
houses that have sold, just like this one. So this
is a really good opportunity. She really wants to sell it.

(35:09):
So give me a call if you're looking for something
to Stuart that's affordable. And on top of that, that
one hoa is this one is five hundred and twenty
dollars a month, just to give you an idea of
the difference. Now, this one has a lot of great
community pool and clubhouse and other things. That's gated. It's
really nice centry located in Stuart. So it's a really

(35:32):
good opportunity there sounds it. Later we're going to be
talking about this house with Mike with a special mortgage firm,
special loan that would work for this three seven one
eight Victoria Drive in West Palm Beach. Mike actually saw
this unit with one of his relatives that was looking
for a house recently. This is a two bedroom, two

(35:52):
and a half bath town home. It's one of those
quadruplexes that you see a lot where it has the
courtyard and this unit has a lot of upgrades and
we have it only at three ten now. This is
a two bedroom, two and a half bath unit that's
in very very good condition with new rac and water heater,

(36:13):
and the roof is newer, and it's only three hundred
and ten thousand dollars and the HOA on this one
is three oh five. So there's definitely affordability out there
if you're looking for it.

Speaker 5 (36:24):
Yeah, you know.

Speaker 7 (36:25):
And then finally is the one that I really need
to move fast, and I'm going to be real with
this one. It's seventeen oh one Southwest clover Leaf Street
in Ports Saint Lucy. This is a pre foreclosure and
we're trying to beat the foreclosure. Right now, we're trying
to beat the sale. We had this house on the

(36:46):
market originally about a week and a half ago at
two hundred and ninety nine thousand. It's a three bedroom,
two bath wood frame home with a pool on a
corner lot in Ports Saint Lucy, No HOA. The shell
of the house is in good shape, but it needs
a brand new roof, and on the inside everything seems
to be working okay, but it really needs updating. So

(37:07):
really eventually you're gonna need new kitchen, new bathrooms, new flooring,
new paint. The pool probably has to be resurfaced and
needs work, so it won't meet FAHA financing right now,
but there might be a great opportunity with this house
because we just dropped the house the price to beat
the foreclosure. We're at two hundred and fifty thousand dollars
for a three bedroom, two bathpool home. And check this out.

(37:31):
We are the lowest pull home in the city of
Port Saint Lucy. Right now, this house is the lowest
priced pull home in the area. So we're going to
show you how later we're going to show you, by
using construction loan, how to buy this house and fix
it up to where it's a really really good shape
and have a loan that's going to be significantly less

(37:52):
than probably what the house is going to be worth.
And for first time home buyers, this could be a
really great opportunity to get that HGTV fixer upper and
get the construction money to do a lot of the
heavy lifting as part of purchasing the house. That's a
really unique.

Speaker 5 (38:09):
Time to get property brothers in on that.

Speaker 7 (38:12):
H I know, right, we need to do that, right,
So we're going to talk a little bit about that.
I have a first time home buyer with an agent
coming out tomorrow at four pm to go look at
this house, and I got my fingers crossed, and I'm
trying to convince them that the construction loan is the
way to go. Yeah, So all of those properties are available.
If you're looking for anything, give us a call. We're

(38:34):
going to talk to you about that.

Speaker 2 (38:35):
I know that you have those properties all listed on
the web page.

Speaker 7 (38:39):
They're not I don't think I'm going to be real
with you. We're having some problems with the actual Florida
tape talk real estate website. It's we're having a problem
with the log and access. It's good for communicating with
us if you want to call us, text us, email
us through that system, it's working fine, but the other
part isn't working that good. I would go to our

(38:59):
facebok book page.

Speaker 2 (39:00):
Got you so all that information on Florida talkreil est
page very good. Yeah, we're gonna do a reset and
come back. We're gonna dive into all of the integral
intricacies of possibly specifically this property we're just talking about
with a construction loan and so much more. As we're
trying to break down some real buyer guide for you.

(39:22):
And when you got the mortgage guy and a top
notch realtor, we got power knowledge in here, so very
valuable information coming up. You're always welcome to join us
if you want to join the conversation or if you
have a question eight seven seven nine two seven six
nine six nine, Jimmeithy will line you up. Of course,
if you're not comfortable on the radio. Always remember you
have access to the entire team floridatokreal estate dot com.

(39:43):
You can find us on Facebook and YouTube as well,
but that dot com. Always remember it. You got a
hotline there. You can call it if you like the
old school way eight eight eight nine seven three seven
eight two eight, Just remember floridatokrealestate dot com, Florida Talkrealestate
on Facebook and YouTube. We're back and forth and it's
great to have you there. Every Saturday. It's two hours
of infotainment. We got a bunch left on a Saturday,

(40:04):
Florida Talk real Estate.

Speaker 8 (40:05):
Right here, it's real Radio.

Speaker 1 (40:21):
This is Florida Talk real Estate with Jim Depola and
Johnny C. Got a question for the show. Call us
live at one eight seven seven nine two seven sixty
nine sixty nine.

Speaker 2 (40:31):
Yeah there it is eight seven seven nine two seven
six nine six nine as we're sitting here, live at
nine forty four on a Saturday, the thirty first of May.
I believe I think I feel pretty good about that,
Johnny C. That's me, Jimothy's our Producerrict started.

Speaker 4 (40:49):
There is that accurate, sad that is accurate. You are
May thirty first last date a month.

Speaker 5 (40:53):
And it is Saturday. Yeah, yeah, thirty one days in
the old knuckle tree. So you can do it one handed. Yeah, yeah,
you do them.

Speaker 2 (41:02):
Back to backers you got to double double the last
live Yeah, yeah, both thirty one.

Speaker 5 (41:08):
Yeah, so it works. You just don't count that one
as a valley.

Speaker 2 (41:11):
Yeah. So, if you guys don't know what the hell
we're talking about right now, that's Mike Rownd, the mortgage
guy from the mortgage firm. He knows the knuckle trick.
We're trying to determine whether there's thirty one or less
months or days in the month. So make a fish, Jimothy, Okay, okay,
start with your knuckle on your pinky. Pick asiety either

(41:32):
peaks and valley, Yeah, peaks and valleys. Okay, thirty one
now the middle, right the valley, it's February, February twenty eight,
right top, March thirty one, April boom thirty or thirty
up top May, May, thirty one down June June. There's

(41:54):
thirty up top July it's thirty one. Hit it again,
hit it again. It never realized, yeah, every other, every
other yep, thirty one.

Speaker 5 (42:02):
There's no valley. So if you you.

Speaker 2 (42:04):
Yeah, you got hit it again and then go back, yeah,
double us.

Speaker 5 (42:09):
What's August? Go ahead, Jimmy, what's August?

Speaker 8 (42:11):
Say?

Speaker 4 (42:11):
I know it in my head.

Speaker 5 (42:12):
Oh you know, but you do. I get the what's November?

Speaker 4 (42:16):
November is thirty one? No, thirty Your head failed you?

Speaker 2 (42:21):
Yeah, the knuckles never failed.

Speaker 5 (42:24):
My knuckles never failed.

Speaker 2 (42:27):
That's a stupid, stupid little trick that I don't know.
Evidently you learned about the same age.

Speaker 5 (42:32):
I know. Now, how many how many months have twenty
eight days?

Speaker 2 (42:36):
All of them?

Speaker 5 (42:37):
Right? We must stream the same content, our.

Speaker 2 (42:44):
Algorithms on the same Yeah. Jimmy D's here too, y'all.
He's our fearless leader thirteen plus years now. I told
you he runs a top producing Kellor Windams team, the
Florida Home Pros team, Keller Williams Innovations, Jim Pola, Jimmy D.

Speaker 7 (42:56):
You be hey, I'm doing great. I'm doing great.

Speaker 3 (42:58):
The old thirty days in Septeber, Abril, June and November,
all that that little limerick.

Speaker 5 (43:03):
That is I never now, I never learned that, but
it was never necessary, as you say it.

Speaker 7 (43:09):
Oh, it's familiar.

Speaker 2 (43:10):
I just don't if it.

Speaker 3 (43:11):
What thirty days in September, April, June, and November. All
the rest have thirty one, and then there's something for February,
and I don't remember that.

Speaker 2 (43:19):
Yeah, I never. I never put that to memory, but
that would probably be quicker than my little nervous when
I was talking.

Speaker 3 (43:23):
No, I like that knuckle and never because I never
realized it was every other month.

Speaker 4 (43:27):
And when you wow.

Speaker 2 (43:29):
That it's as simple as that, simple as that.

Speaker 5 (43:32):
I was talking with Tiffany. We were doing some math
question and there's, you know, fractions I do pretty quickly
in my head, and for some reason she doesn't. And
I'm like, but you have to think about like how
do you think about like the vision? And she said
something like is over of Like yeah.

Speaker 3 (43:51):
There's a way something we learned in algebra when I
was a kid is over of in percent.

Speaker 4 (43:56):
It's an easy way to do a formula.

Speaker 5 (43:59):
That's so like this number is some percent of this number,
and so you do that as a fraction. Obvious like
what's the percent of something? So you do is there
is number over the of number.

Speaker 2 (44:12):
Of number to get to the fraction? Yeah, yeah, I
guess however you get there? Yeah?

Speaker 5 (44:16):
And I was like, I had never heard that before.
I didn't. I never learned it that way. I didn't
remember learning it that way, and but she she said,
I was like, okay, well there you go. That's how
you do it. That works way. You know, which one
goes on top, which one goes on bottom?

Speaker 8 (44:28):
Who?

Speaker 7 (44:29):
Who?

Speaker 5 (44:29):
You know?

Speaker 2 (44:29):
Which? What?

Speaker 8 (44:30):
Who?

Speaker 5 (44:31):
Yeah? Which is?

Speaker 2 (44:33):
Oh gotcha?

Speaker 5 (44:34):
Yeah yeah. We weren't doing that to work that out with.
It's over up, it's on top exactly.

Speaker 7 (44:41):
What's on first?

Speaker 5 (44:42):
Right? What percentage?

Speaker 7 (44:47):
Excellent? Perfectous?

Speaker 5 (44:53):
No, No, I'm listening and uh, Jim's thinking about his advocates.

Speaker 7 (45:02):
Oh my god, he's taking me laugh just from his laugh. Hey,
I just want to give out a shout out to JT.
He just sent us an email Mike talking about help

(45:23):
for the for his kids. He says, Hey, looking for
Mike's information for my son and his new wife. They
are looking to get pre qualified into or get themselves
ready to buy. One is a cast member for Disney,
so I can't wait to talk to him about that.
And he says in the other it works for Universal.
They would need a lot of help with the programs
that Mike is talking about. You need to down, says

(45:44):
payment assistance. Thanks for being such an informative and positive show.
Love it every weekend, So thank you, JT. We're going
to reach out to you on Monday and we're going
to get you over to Mike to find out about
all those down payment assistance programs and it's kind of cool.
It looks like they're going to be buying in Orlando,
so we can help you get an agent up there

(46:04):
if you're looking for it. We got yeah, Lemmy, Mike
and Colleen will already tell you who you should be hiring.

Speaker 5 (46:09):
And those DPA programs are the state of Florida, So
and do it together. And I guess that's also a
you know, if you're out there listening and you have
like maybe you're settled, you're not a buyer, but you
have people close to you who may be buyers. I mean,
we do. These consultations are painless, they don't cost anything,
and at the very least, even if it's not a

(46:29):
not now thing, we can make sure that you got
your ducks in a row. So what we talked about
earlier with it was it gram Brand who called, that's okay,
but like they may have a situation where they need
to get a mortgage and it's not because they're buying
a home, but they have a situation where might they
might have to be qualified to get a mortgage, And
so you got to be a rider of your credit.

(46:51):
You got to be thinking about, like if you're self employed, right,
how you do your tax returns. There's a lot of
things to think about. Even if it's not a not now,
maybe it's next year or the year after that or whatever.
It's never too early to kind of get some information
and get some direction on that.

Speaker 2 (47:06):
Phone, especially if it's going to require tax planning of course. Yeah,
goodness Christmas. Yeah, you gotta get you got to get
ahead of that stuff. Yeah, valuable information. I can attest.
It is very painless. Mike is awesome on the phone.
It's a it's a great conversation. You almost don't want
it to end, but it goes vibe very quickly. And
then it's just a matter of you know, getting you

(47:28):
what you want when you need it, if you're going
down that road.

Speaker 5 (47:31):
And sometimes it's like he just keep doing what you're doing, yea.
And sometimes it's like, well, you got you need to
make some adjustments here and focus some money some energy here.
That's it, you know.

Speaker 7 (47:40):
And one of the things that most people are surprised
a by Mike might not get this, you know, because
he's in the weeds, you know, doing it every day.
But from the outside trying to get people over to you.
I tell him that you don't have to go in,
you know, into uh an office and sit down with
Mike and go through that whole process. Everything can be
done over.

Speaker 2 (47:58):
The phone, because that means Mike has to go into
an office exactly.

Speaker 5 (48:01):
Yeah.

Speaker 7 (48:02):
So but I mean if my you know, if you
want to meet with Mike in person, he will, but
it could be as easy as just doing stuff over
the phone and then doing all that. It doesn't have
to be a big yeah, and some people want to meet.

Speaker 5 (48:13):
I know when you're doing your consultations, like being there
is important, right because this is like what you're doing
is geez, I get a lot more personal information, but
I think what you're doing with people's is more personal.

Speaker 7 (48:26):
Well, the biggest problem with us is that you have
to go on the computer and look at properties together.
And you can do it through screen sharing like a
zoom type of thing, But it is just the same
as sitting shoulder to shoulder and looking at everything together
and seeing your reaction to the pictures that are flashing
across the screen. You knowing that you don't get the
same feel So I do like that in person meet

(48:50):
in person. But before we do that, we always have
you go through Mike to know the numbers before you
meet with me. So let's get right into this right
now about how the process work. So what I want
to do first is how we find out their numbers,
and then we're going to go right into down payment
assistance okay, and then after that we're going to talk
about that special program you have yep. And then at

(49:11):
the end we're going to talk about how you use
all of these tools to get the best deal you can. Okay.
So that's how this buyer guy is going to go. Guys, Okay,
that's good. Okay, So you call me up, you call up,
or you reach out like JT just did. He did
it through our face our Florida Talk real Estate page, right,
So he just sent the email out through that page. Right.
So we got it here live on the air, and

(49:33):
now we know to call them on Monday and we'll
start the process. So the first process will be is
I talk to him and find out what his kids
needs are and where their situation is. Now I'm going
to ask if they have student loan debt, right, because
we have ways to deal with that that can help
them out with the mortgage and things and ask them questions.
And then I'm not the mortgage guys, so I'm not

(49:55):
going to act like I know mortgagees the way Mike
knows mortgages, but to give it flavor so I can
give a good detailed message to Mike, to explain to
Mike what's exactly going on with the family and what
their needs are as far as I can tell. That way,
when Mike gets the email, he already has kind of
a heads up what they're trying to do, and it

(50:16):
isn't just a blind call where they have to start
all over again and explain themselves. Then Mike goes way
deeper than I do. And Mike is very creative, so
he thinks about a lot of different.

Speaker 5 (50:27):
I can see the future.

Speaker 7 (50:29):
Yeah, he should call him the Slammy.

Speaker 5 (50:31):
Right, I'm trying to like predict the path right to
get to the finish line.

Speaker 7 (50:35):
Yeah, and he'll see the stumbling blocks if there are any,
and if everything looks good, he'll tell you that. But really,
what we're trying to get to at that point is
on that initial phone call with Mike, does it look
like you can qualify for a loan or not, and
if you're not sure, these are the things we need
to find out to make sure. And then I'm always

(50:56):
and this is my big thing, is, Hey, Mike, I
know they might not be ready to not but ready yet.
But when they are ready, what are their numbers? Because
I need the numbers so that I can meet with
them to get their searches set up. Right, So if
they're ready to go right now, that search is going
to go live and we're gonna start hunting right away.
But sometimes they might have to work on stuff, right, Mike, Sure,

(51:17):
what are the kind of things that people most likely
have to work on. I know there's a lot of
different things going on, but.

Speaker 5 (51:23):
I mean most common is credit, right, right? Just some
some like when we're looking at credit, we're looking for
a couple of things. It's not just the credit score,
but certainly you have to have a minimum qualifying credit score, right,
So there's some minimum you have to meet there. And
then we also look at credit history, so you know

(51:46):
there are things If you're on the lower end of credit,
usually it's because you have some some sort of trouble
paying bills over time, whether that's recent or in the past.
So we're looking for things like patterns of non payment
of mandatory obligations, late payment history in the most recent
time period collection Charlotte. So things like that is what
I see the most where I have to give people

(52:08):
some real clear direction on here's where you are now,
here's where we need to be, here's how the things
you should focus on to get there, and then kind
of like monitor or use tools whatever to monitor. So
credit is the number one thing where it's not now,
but here's what you need to be focused on.

Speaker 7 (52:24):
And this is probably the second biggest mistake. I see
buyers in the process of thinking they want to be
a buyer make so they get the news from Mike, hey,
you got to build your credit either waiting for time
for the mispayments to go away.

Speaker 5 (52:39):
We have a.

Speaker 7 (52:39):
Customer recently that just came to us and they had
two misspayments for a special type a loan, and now
because of that they have to wait until like November.
They found out last month they have to wait till
November before they can actually qualify for the type alone
they're looking to get. So here's the mistake. Number one.
They hear that, then they shut down and go we'll

(53:00):
deal with it. Later, meaning like I don't want to
do the search now, I don't want to meet with
Jim now, I don't want to do any of that. Well,
that's a big mistake, because you could take that time
between now and November to actually set up the searches
based on the numbers you are going to be able
to qualify for in the future, map out the areas
you want to be, the type of house you're looking

(53:21):
for or home you're looking for, and start the search
and make it go live. But I'm going to go
deeper with you at this point when you have that
many months. I put down active, pending and sold, but
I also put down expired and canceled. And the reason
why I put down all of those criteria for your searches,
you're going to see an x ray of the type
of houses you're looking for at the price point you're

(53:43):
looking for, and you're going to see which ones go fast,
which ones have price reductions, which ones get taken off
the market. And let me tell you, if you do that,
by the time you get to loan qualification in November,
you know as much as I do, maybe more if
you look at it really hard.

Speaker 5 (53:58):
About the market that you or targeting specifically.

Speaker 7 (54:01):
So then when you start searching in November, there isn't
any questions about whether you're getting a good deal or not.
You're gonna know when you see the house and the
price in the condition, because you just filew the market
for four or five months. Right. So the first mistake
is if you can't find The second mistake is if
you can't find out. If you can't qualify right now,
that doesn't mean you shouldn't start house hunting. I know

(54:24):
that sounds.

Speaker 5 (54:24):
Crazy, and some people might know that their credit has
issues and that might even stop them from talking to me.

Speaker 7 (54:33):
Well, that's the number one mistake, number one, miss I said.
Number two number one mistake is not talking to somebody
or saying that, hey, this happens to us a lot
on the show. Hey I'm really interested in buying a house.
We call you on Monday, and then I'm chasing you
for two months and I never hear from you again. Right,
And I know a lot of those people is because

(54:54):
they're afraid, you know, oh I don't you know, maybe
I don't have good enough credit. I'm just going to
to fix it. Don't try to put the drunk monkeys
in your head and join it out.

Speaker 5 (55:04):
If you don't use it.

Speaker 7 (55:08):
If it's not if it's broken, don't fix it. You
don't use it, don't fix it.

Speaker 5 (55:12):
Yeah, exactly.

Speaker 7 (55:13):
But yeah, if you use Johnny's thing, you'll you'll be
running for the rest of your life.

Speaker 5 (55:17):
So who care about credit?

Speaker 2 (55:24):
I was never going to buy a home, so what
do I care?

Speaker 7 (55:29):
So that would be mistake Number one is not acting
at all getting your information. But number two would be
you find out you can't do it right now, so
you don't start the house hunting process. Get that set up, right?
She get that all set up. I have a customer
right now. She called me off of that two fifty
construction house, and she doesn't know me from Adam. She

(55:50):
just called off of Zillo or whatever. And and her
son wants to buy, but he keeps saying she doesn't
want to buy until January. And I keep explaining to
her about the down payment no, because they can't get
her on there. And you know it would be great
for you because it's a bilingual situation. So I keep
mentioning it. You need to talk to Mike, right, You
need to talk to Mike. So we're not there yet.

(56:12):
So that's mistake number two. But once we know your numbers,
So once Mike tells us the numbers, the next step
is is that we have a meeting and we sit
down for a buyers consultation. We explain contracts to you
and understanding how contracts work, and then we show you
the home buying process. But really what that first meeting
is about is trying to get a feel of the

(56:33):
exact home that you're trying to look for at the
price point that Mike has given us, and trying to
make sure and find out if it's going to be
a hard search to find or an easy search to find.
Let me tell you today compared to two years ago,
much easier, right, much easier.

Speaker 5 (56:52):
We should talk about because we talk, we say, know
your numbers. I think it's probably worth explaining or going
over when I'm calculating my numbers. Is all about setting
understanding your the limits under which your loan will get approved. Right,
so we talk about a preapproval and then a lot

(57:13):
of times, let's say it's you know, credit's grade, whatever
green light across the board, and many people in this
in my line of work, will spit out and agents
love this right like Hey, Jim, they're good for four
hundred and twenty five thousand. Right. Agents love that because
then okay for twenty five in the search and boom.
The problem with that is you're not really limited at

(57:35):
four to twenty five. Right. You could buy a house
of four hundred and fifty thousand, but the neighbor right
next door, maybe you can only pay four hundred for
that house. Right. And it has everything to do with
on the house by house basis. You know, what are
the property taxes, what's a good estimate on what insurance,
where insurance is going to land. And then of course
the part that's kind of critical for you is what's

(57:55):
your principal and interest payment going to be? So how
much money you borrowing, what's the projected interest rate and everything.
So ultimately you're not pre approved. You're not qualified for
a purchase price. You qualify for a monthly payment, right,
a monthly obligation. Right. So when you're qualifying for a mortgage,
we use the old debt to income ratio Johnny, and

(58:18):
we figure out now that's a fraction, so it's it
is over is over of debt, right, or debt as
a fraction of your income, Right, like it's a debt
over income, but to to say, okay, you qualify for
three five hundred dollars a month, or it could it
could be three four and seventy three dollars a month, right,
if you're really pushing and finding the exact, exact limit.

(58:39):
And that's my goal, right, I want to know what's
the tippy top that you can qualify for. And I
don't do it that way because I'm like, push up
your budget, right Like Johnny, I'll ask people say, listen,
I'm going to set your limit what you can get
qualified for. Have you thought about your own limit? Have
you thought about your budget? Have you thought about what's
comfortable for you, like where do you want to land?

(59:00):
Compare that with what you're currently paying for rent? Are
you able to achieve your savings goals by having that?
And so people like I want my limit to be
higher than your limit, not because I want you to
push up on your budget, but I want you to
have flexibility so that you can make decisions. If you
can find the perfect house and it's a little bit

(59:21):
above your budget, you're like, okay, we can tighten up
over here. I don't want to be the limiting factor.
I want you pumping the brakes where you're comfortable.

Speaker 2 (59:28):
And everybody in the scenario should want that too, I
think should want it, Yeah, realtor should want like flexibilities.

Speaker 5 (59:34):
The reverse is terrible because you're like, no, I know
I can pay three grand a month and I'm like, yeah,
we only qualify for eighteen hundred. I don't know what
you're going to find, right, Yeah, you ready to move
somewhere else? Right? Yeah, somewhere out of this county or
something like that. So, but so knowing your numbers is like,
what's the limit on what I'll qualify for from a
payment perspective, and then how much cash do I have available?

(59:55):
And then what type of loan are we doing?

Speaker 7 (59:57):
Right?

Speaker 5 (59:57):
So like the fha VA conventional are we doing something
that's outside of those standard conforming options? Are we doing
like the the two oh three K renovation style loan
that we're going to talk about. So when we say no,
your numbers, it's know what you can qualify for this
you get into a contract and know that you can
get to the finish.

Speaker 2 (01:00:15):
Line and not abnormal for those numbers. Your number and
my number to be very different.

Speaker 7 (01:00:20):
Oh yeah, that's very abnormal. Very normal.

Speaker 5 (01:00:22):
Yeah, that's it's very normal. Yeah, hopefully in the way
that I prefer, which is, yeah, you qualify for higher
than you want to be, right, So it's good.

Speaker 2 (01:00:31):
I know in my scenario when we bought in twenty fourteen,
I was qualified for considerably more than what we bought for.
I was not comfortable at that monthly obligation.

Speaker 7 (01:00:40):
And that's very common. And isn't it funny when you
go for a loan. It's so hard to get the
loan and then you get more than you really think
you go forward. It's like I went through all this
stuff you rimmen, through the gamut, right, the gauntlets, and
now you're giving me more than I know. I can't
pay that.

Speaker 5 (01:00:57):
So what did you do? Some people are like, well,
what can I afford? Mic, And I said, well, I
don't know what you can afford, right. You know your budget,
you know you're spending, you know how you like to save,
or you know, are you eating out every night or
you're cooking a home like these things. I don't know, right,
And I don't ask about that stuff, but I asked
you to think about it. So what can you afford?
You should have an idea on that number, What can

(01:01:18):
you qualify for? That's my world, right, that's my responsibilities
to make sure you're not getting into something that you
actually can't qualify for, Like what are you doing if
you're doing.

Speaker 2 (01:01:27):
That, not qualify for it something that can't close.

Speaker 5 (01:01:29):
It, which is also like when somebody spits out that
generic prep like you go online and you plug in
in five minutes, you got a pre approval letter that says,
you know, four twenty five. Guess what, cross your fingers.
Cross your fingers. They might work. And if you're an
agent who's showing people homes and going like that, cross
your fingers because you're not buying a condo at four

(01:01:51):
twenty five with a five hundred dollars condo you know
dues right right, that's going to put you above your
limit on a payment. So knowing your numbers is what
you qualify for, or but also being able to analyze
those on a house by house basis as you're doing
your house hunting and house hunting Jim, we should talk
about that because it's not like, hey, Jim, let's go

(01:02:11):
out to Saturday and look at five homes. No, house
hunting is every day of the week. You're gonna get listings, right.
I don't know how often those things go out, it's once.

Speaker 7 (01:02:19):
A day or or the way I set them up
when they're actually really ready to go and we're looking
and we're going to turn it an offer, and when
we find the house, it's automatic.

Speaker 5 (01:02:28):
So as soon as the open the link and it's
just as soon as.

Speaker 7 (01:02:31):
MLS puts the property up that meets Johnny's needs paying,
he gets king. I get paid two o'clock in the morning,
three o'clock in the morning. Whatever.

Speaker 5 (01:02:39):
People, you're doing it at two o'clock in the most. Right,
you're in bed, you're doing your couch surfing, whatever you're doing.
Maybe you're at work and you're just got some free
time and you're at the computer. Like that's the way
that people are doing house hunting, right, you're doing that
stuff at home. Well, we're going to give you the tools.
Jim's gonna give you the tools to analyze the homes right,
things that check your boxes, fit your criteria. You go

(01:03:00):
through the pictures, those look good. Then you're like, okay,
you know what, let's make sure the loan the numbers work.
So then you open up my app, and my app
gives you a payment calculation, right, you plug in somethings, price,
the price, property taxes, h o A if there is one,
and guess what it's going to show you and estimated

(01:03:20):
payment and then I'm gonna have a limit in there
and if you're over your limit, it's gonna say sorry
this you don't you can't make this happen, right because
I set up a maximum payment and you'll see that,
let you know, and the closing set up and it's
a it's a closing cost estimator. So what do I
call it? Jim?

Speaker 7 (01:03:37):
What's my I can't remember the super color frag.

Speaker 5 (01:03:45):
Listen. My app is a combination it's.

Speaker 7 (01:03:48):
Do you remember this?

Speaker 2 (01:03:50):
Wait? Hear you as if I remember? No, I did
not remember mic microw more your front.

Speaker 5 (01:03:57):
So yeah, it's a it's a combination payment calculator, thosing
costs estimator, pre approval letter generator.

Speaker 2 (01:04:02):
There it is. And I don't know why I don't
remember either.

Speaker 7 (01:04:05):
I can't believe that blah blah blah blah blah, pre
approval letenerator. No, but that app, that app is awesome.
We've talked about it a lot. It's such a useful thing.
Here's another thing about knowing your numbers, and then I
want to get into credit score, and then we're going
to switch.

Speaker 2 (01:04:19):
Over a little note. I need you to update my
interest rate on my app to I don't know if
I do, Johnny, Okay, yeah it has.

Speaker 5 (01:04:25):
We haven't moved that much.

Speaker 7 (01:04:26):
We're going to talk about that.

Speaker 5 (01:04:27):
The headlines are there. Yeah, but so just to wrap
that up. So part of the knowing your numbers is
like when you're at home doing that stuff, you can
uh eliminate properties that don't work. That's kind of what
you're trying to do, right, Like, of all the listings
that meet your criteria, you're going to eliminate some of
them because you don't like how it looks, right, you
don't like the neighborhood, you don't like the landscape. But

(01:04:50):
like whatever it is, the condition, the age of the room,
you're gonna start eliminating homes. Well, the numbers are part
of that elimination process or the inclusion or the exclusion
in process, right, and so you can do that. So
then when you do go out on that Saturday or
that Wednesday or whatever it is that you're actually you're like, Okay,
we're gonna go look at these seven homes. Jim, set

(01:05:10):
up gym, set up seven appointments. You're gonna go look
at these seven homes and hopefully like they're all contenders,
right right.

Speaker 7 (01:05:17):
Well, the smart way to do it is use if
we're tight and we're at the upper limits, and the
person's pushing because they want a certain type of home,
and they're really they want they're going to be in
the qualification part, but they're at the upper upper limit.
You gotta do the app before you get in the
car and look. Because you could be in the same
neighborhood and look at five different homes, and let's say

(01:05:38):
five homes are for sale in that neighborhood and they're
all priced around the same thing. Let's say ten to
fifteen twenty thousand dollars difference, right, but the taxes are
three thousand a year up to nine thousand a year
for the five different homes. Those nine thousand dollars a
year homes are not going to be your property unless

(01:05:58):
you can take that number of the purchase price and
drop it way dramatically to offset the taxes. And a
lot of times, like if you're looking at a five
hundred thousand dollars home and you have to drop the
price eighty grand and the house has been on the
market five days, Okay, chances are the seller isn't going
to drop their price eighty thousand dollars in five days.

(01:06:21):
That probably isn't the best property to look for. So
the tax is knowing your numbers, including understanding, and taxes
are the big deal killer right now for certain types
of homes.

Speaker 5 (01:06:32):
I think some people might be confused on that point.
So why would have went home be nine thousand a
year and went home be three thousand a year? And
it's a reality, And it has to do with how
long the seller has owned the home and how long
has it had homestead exemption right cause you get tax
benefits with your homestead exemption. So one thing is how

(01:06:53):
does it impact your ability to qualify? So the taxes
are part of your mortgage calculation. We use the current
tax bill, guys. We don't use an estimated tax bill.
We don't say, hey, Johnny, what's your tax bill going
to be another We use the current tax bill under
most circumstances.

Speaker 7 (01:07:07):
So if you have two houses exactly the same in
the same neighborhood, on the same street and one has
three thousand a year and one has nine thousand a
year in taxes. The three thousand probably was bought originally.
Still there have been homesteaded forever. Yes, the nine thousand
years sold five times in the same time period.

Speaker 5 (01:07:25):
Not homesteady, right, that's.

Speaker 7 (01:07:26):
And it or it could have been homesteaded, but home steded, homesteaded, homesteaded, unhomestuded.
So now you have this big variance. Well, when Mike,
let's say you'd picked the three thousand dollars a year home,
Mike's mortgage company or process is going to require that
he bases the mortgage payment on the current tax bill,
which is only three grand. But we all know in

(01:07:49):
real life that is going to probably be closer to
that nine thousand dollars later. And if you're not told
that up front, you're in a shock. How many times
have we gotten calls from the show where people go,
nine months after they bought the house, Hey, my bill's
going up sixteen hundred dollars a month.

Speaker 5 (01:08:05):
You know, every January I get calls about the escro
portion of the mortgage payment and what's going on there.
And even though I make it a point to talk
about property taxes, and like what to expect this November
and next November. I have a document that I share
with people that describes what happens with you know, how

(01:08:25):
does the homestead work with all of this stuff? And
from a budget perspective, your professionals should be advising you like, hey,
this nine thousand dollars one, that's probably closer to where
you're going to land than this three thousand one. And
the reason for that is you're starting fresh, right, You're
just buying, and now your taxes are basically going to
go to their highest calculation and then with your own homestead,

(01:08:47):
they'll then come down from there. Jimothy's a case where
he had portabilities existing home. So these are all nuances
with the taxes, like what should you expect in the
long term? But that three thousand dollars one allow you
to get into that house now, right. It puts you
at a payment where the price point maybe you're you're
on the higher end of the price point, but because

(01:09:08):
of the taxes, you're able to qualify that you have
more buying power because the current taxes are low.

Speaker 7 (01:09:13):
You can get in a lot of trouble if you
don't understand that. In fact, Michael and Colleen who just
bought the house in Orlando. One of the comments he
had in the email he sent me yesterday was that,
thank you so much for telling us what our future
tax bill is going to be on the new construction home. Yeah,
because the developer didn't talk to us about that and
we asked.

Speaker 5 (01:09:31):
Sure they did. It's in the contract right at age
seventy seven of the build.

Speaker 7 (01:09:37):
Yeah, the five hundred pages right, and the little fine
print on the footnote at the bottom. But anyway, he
saw what the difference was of the new construction home
tax bill comparatively.

Speaker 3 (01:09:48):
And speaking of which with a new construction is a
lot of times when you do see the current tax
rate is based on an empty lot.

Speaker 7 (01:09:54):
It's just a piece of land. That's what they're being
the taxes on.

Speaker 3 (01:09:57):
So you look at that, you look at it and
one hundred dollars, Oh, well taxes are cheap on that lone.

Speaker 5 (01:10:02):
Yeah, yeah, those are that when I said, like we
most of the time use existing tax bill, there are
certain scenarios where we do an estimation, right, a calculation,
and that's new construction homes where the current tax bill
is obviously based on empty lot. No home in there.
There's other ones where maybe the current homeowner has a
one hundred percent exemption, maybe they're disabled veteran and they

(01:10:23):
have an exemption from property taxes. The ones you know,
your professional should be spotting that stuff and talking to
me about it, because guess who's going to spot it
the underwriter.

Speaker 7 (01:10:31):
Yeah, So, so know your numbers and have that, you know,
have these kind of conversations with everybody. Now. The next
thing about knowing your numbers, not related to the mortgage
payment is the credit score. And there's too many people
out there that think that they have to increase their
credit score to buy a home, especially first time own
bars okay specifically them, and they think that they need

(01:10:57):
a higher credit score. So that just stops them from
doing everything anything. You know, don't don't talk to a
mortgage company, don't talk to a realter, don't even go shop,
and they just assume they're going to rent. Big mistake.
So what is the real deal when your first time
home buyer? Do I need a six point fifty or
six seventy or seven twenty or seven seventy? What kind

(01:11:18):
of credit score do I need to get a decent
conforming loan and a thirty year conforming fixed interest rate loan.

Speaker 5 (01:11:27):
So the limits so FAHA, technically the bottom limit is
five eighty, right, you want to be like six twenty
and above, I would say, is your goal. If you're
using DPA, they want they want to down down payment assistance,
which we'll talk about, they want six forty, right, And

(01:11:47):
so sometimes there's like a minimum for qualifying, and then
sometimes there is does the credit score impact your payment
at all?

Speaker 7 (01:11:57):
Right? And so this sixty right. So if you have
an FAHA loan, which is a lot of first time
home buyers used because it's only three and a half
percent down, which is considered a low down payment loan,
and there aren't many other loans that can compete with that.
If you're a VET, you can get zero percent down.
Thank you for your service. You deserve it. If it's

(01:12:19):
if it's a conventional loan, you could do a three percent,
but usually that's for people that actually have a higher
credit score and lower debt to income ratio. And usually
a lot of people don't use the three percent.

Speaker 5 (01:12:30):
Conventional limits on the three percent right, So so you
might your income might exceed what's allowed under that program,
but five percent is like your standardard.

Speaker 7 (01:12:37):
Right, so five percent and with but with FHA, as
long as you get the six forty. And we're focusing
on six forty because a lot of people want that
down payment assistance. So with the six forty, if I
have a six forty credit score or an eight hundred
credit score and I'm using FAHA, right, what's my difference

(01:12:57):
in the interest rate?

Speaker 5 (01:12:58):
No difference.

Speaker 7 (01:12:58):
But if I were in conveyal and I had a
six forty credit score or an eight hundred credit score,
would there be a difference from my interest rate?

Speaker 5 (01:13:06):
Yes?

Speaker 7 (01:13:06):
See. So if you're doing first down, if your first
time home buyer, and you're using FHA, you don't even
know you use n FHA, and you're thinking, in my mind,
I need to get to seven seventy because I read
in the report seven seventies excellently or seven eighties xt
top credit, top to your credit. Got to get there,
got to get there. No, you don't. I mean, here's
you're wasting your time, is spinning your wheels. You're waiting

(01:13:27):
to six forty and do that right, It's.

Speaker 5 (01:13:31):
And here's another piece of good news for you, Jim.
Even if you're on the lower end on the conventional side.
If you're using down payment assistants through the programs that
we access, the rate's not going to be different eight
hundred versus six forty, So down payment assistance there's an
advantage there, especially if you're on the lower credit side.
And I was kind of getting to like with how
does the credit score impact your payment? And therefore, how

(01:13:53):
does it impact the amount of home that you can buy?
Right because you're qualified for a payment. If your payment
is higher because you have lower credit, that's important, and
it impacts it on a conventional loan both the interest rates,
so your thirty year fixed rate or fifteen year whatever
it is, and also your mortgage insurance because mortgage insurance
is expressed as a percentage, and the lower your credit,

(01:14:16):
the higher that mortgage insurance number is going to be,
right right, So that's important. So I would say in
general everybody, yes, you want your credit to be top tier.
I would love it if everybody's credit was top tier.
I can talk to you about how to achieve that.
Even if you're like a great credit user, you might
be like, why am I like seven to twenty instead
of seven to eighty? Guess what that's because of how
you use your credit. You're revolving credit cards, right like that,
that's it. So I could talk to people about that.

(01:14:38):
So in general, like the higher the better. If your
first time home buyer, you might have very limited credit,
like you might need some tips on how to establish
and optimize your credit usage for credit score.

Speaker 7 (01:14:55):
Right, Mike, I give me that of five eight years
ago or something. Ye had no credit at all because
I was off the grid.

Speaker 5 (01:15:02):
You were like, if it ain't fixed.

Speaker 7 (01:15:06):
If I don't exist, if I don't exactly right, right, yeah,
So but Mike had to show me how to actually
build my credit again because I got burned a long
time ago and I decided I'm not doing credit anymore.

Speaker 5 (01:15:17):
I mean, I talk to people all the time about
optimizing credit, just just because. And this is like, let's
say you're going to be a car buyer in the
next six months. Guess what, If you want the best
interest rate on your car loan, you need to have
good credit, So optimize right now, optimize for that purpose.
And so there's little tricks you can use. People who,

(01:15:38):
like especially new young people, havn't established credit. There are
ways to get credit established very very quickly, right, And
so I talk to people about that. So I'd like,
don't be afraid of this conversation. We can talk about
it and we can get you on the right path.
But so, yeah, knowing your numbers, I forget where we
were going with that.

Speaker 7 (01:15:57):
Yeah, so we were just talking about also understanding credit
score numbers two and how that affects you.

Speaker 5 (01:16:02):
Let me talk about one more point one more thing
on that. So there are tools out there. I love
the fact that the tools are out there, credit Karma
and the like, which people are engaged with their credit score.
I like that, right, because you're informed, you have information.
But the score that you see there is generally not

(01:16:22):
going to be the same score that I see on
a mortgage pool. And when I do a mortgage pol
we have we get all three bureaus and your score,
the quality the six forty minimum that we're talking about
is the middle score, right, so we use your middle
score whatever that is. Of the three numbers, the middle one,
that's the number we're using for you know, qualifying purposes. So, yes,
you can use those tools. I love the tool that

(01:16:44):
they give you an idea. I love that you can
monitor movement on your scores. Johnny. So if I'm like Hey,
Johnny six months. I want you to focus on this
and I want you to watch it. So use credit Harma,
whatever it is, watch your score. I don't care what
tool you use, but use the same tool, and I
want you to see positive movement. And we're like I once,
once we got forty five points of positive movement. I

(01:17:04):
can anticipate that my scores have also increased similar numbers.
So I don't care what your score is specifically, but
I care about the movement in your score on the
tool that you're watching.

Speaker 7 (01:17:15):
And I got to tell you those apps, I was
never a big believer in them until I had to
build my credit. Mike told me to do that, so
I got one reluctantly. That really helped me understand how
to increase my credit because when I saw the numbers
go up and down, it also tells you a little
bit about why you're credit score and why it went up. Sure,

(01:17:36):
so it tells you, so it starts giving you positive
reinforcement to do the right things.

Speaker 2 (01:17:41):
There's a commercial where I can just go and hit
a button and it boosts your credit score.

Speaker 7 (01:17:45):
Though oh yeah, I hit the button, yeah, and you watch.
I actually have one of those apps. I haven't used
it yet. I haven't used the boost score yet.

Speaker 5 (01:17:52):
You need to be careful. They got ways of you know,
one technique of establishing new credit is to have your
utility companies report to your credit bureaus. Well it's kind
of a hack, right, it's kind of a hack. It's
does it work? Does it impact the scores? Yes, if
you go from nothing to something and you start reporting scores,
that's good. But there's a lot of things on there.

(01:18:13):
You want to be careful. If they're offering you credit
all the time, they're giving you techniques in a balanced
transfer zero. Yeah, I don't like this type of thing.
You have to be a little bit careful.

Speaker 7 (01:18:22):
I don't want to give them my bank account information
and stuff, right, I let them deal with my credit
score and history and all that, but I'm not, you know,
to boost the score, you have to give them your
banking information and the actual count numbers and everything and
like not.

Speaker 5 (01:18:35):
They want to advertise to you, right, Like somehow there's
money makers moential with subscribing to them, so you don't
have to subscribe. But I like it for monitoring.

Speaker 7 (01:18:43):
So let's switch over. Let's switch over to down payment assistance. Programs.
We only have a half hour left, so I want
to get through that, and I want to talk about
that special Census track information too, So we've got a
half hour to talk about both things, all right. So
we've talked about down payment assistance.

Speaker 5 (01:18:59):
We got to talk about TO three K too.

Speaker 7 (01:19:00):
Yeah, oh yeah. So we've talked about DPA a lot,
So let's kind of gloss over that this time. But
let me tell you, guys, we're gonna talk about timing
for the Hometown Heroes because that's the most important timely
thing that we have right now. The time is now right,
so there's right exactly. That's why I'm talking really fast.
So there's two programs out there. There's a state program

(01:19:21):
out there. I call it the Florida Bomb program. It
gives you ten thousand dollars to help you with your
down payment and closing costs. It's a flat amount, no
matter what you purchase. As long as you qualify base.
I'm going really fast and classing. As long as you
can qualify for a conforming loan and your first time qualified,
first time home buyer, you can get this program and

(01:19:42):
get ten thousand, and that's great. It's a big help
you don't have to pay it back. It's not accruing interest,
and you don't have to pay a covey at that.
You don't have to pay it back right away. It's
not accruing interest. But when you sell refi or move
out of the house, internament rental or something and it's
not your homes anymore, you're supposed to give back to
ten grand and then that ten grand goes back into
the poll and they give it to somebody else to

(01:20:03):
help them get going, just like you got help. So
that's a great program, yep. And it's available all the time,
all year long, so you can always get that ten grand.
If you come to us, we'll get you that ten
grand for sure. But there's a much better program out there,
but it's only it's very time sensitive sensitive. It's called
the Hometown Heroes Program. Mike, can you give a quick
wrap up about the Hometown Heroes Program.

Speaker 5 (01:20:24):
It's basically all the things that you just said, right,
but instead of being a ten thousand flat, it's a
minimum of ten thousand, but it's a percent. It's five
percent of your loan amount.

Speaker 7 (01:20:33):
So if we were doing four hundred thousand dollars with FHA.

Speaker 5 (01:20:36):
Financing twenty thousand dollars DPA.

Speaker 7 (01:20:40):
You would get twenty thousand dollars versus ten thousand dollars
for down payment assistance, A big deal on a four
hundred thousand dollars property. A lot of times people are
paying like twenty three twenty eight total, right probably.

Speaker 5 (01:20:52):
Yeah, somewhere in the mid twenties, I would get mid twenties.

Speaker 7 (01:20:54):
So if you're getting twenty from the state and you're
buying a mid twenties yeaheah. That for many people that
it's less than first less security.

Speaker 5 (01:21:01):
I mean we worked up a chart gym. I think
on one of your listings, which was around that three something,
and you know, under conventional loan with five percent down,
you were bringing like, I don't know, eight thousand dollars
or something total.

Speaker 7 (01:21:15):
I was looking at a place I didn't end up
up pulling the trigger, but it was four hundred thousand
dollars and with the DPA the down payment it's Hometown
Heroes program, I would only have to bring eight thousand
dollars to the table to buy the place. Right, for
many people, that's less the first less security.

Speaker 5 (01:21:30):
It's amaze, right, yeah, and it so it scales up too, right,
So so the if you did five five percent, so
you're the amount of money you have to bring.

Speaker 7 (01:21:39):
Five, you'd be getting like twenty three thousand on that one.

Speaker 5 (01:21:43):
Yeah, so it's five percent of the loan amount. But
I guess my point is like it's a big chunk
of the cash you need, and it doesn't like your
obligation isn't changing that much. Even if you go up
one hundred thousand on price, right, you're still like bringing
the eight nine, ten thousand dollars or something like that. Right,
So it's really really powerful. You asked me earlier, like

(01:22:04):
what are some of the challenges people I have to
give people advice on what it used to be credit
and cash, Like, hey, you just don't have enough money,
like you need to get yourself on a four savings plan.
And so now the down payment assistants have really been
helpful in overcoming that particular obstacle. Right, it takes a
lot of money to buy a house down payment, closing costs.
The question is, and it's always been, where's that money

(01:22:25):
coming from? Are you able to save it? Do you
have families helping you? Are you going to get some
help from the seller? Which is now more than ever
achievable getting the seller to help contribute to your costs.
And also we have the down payment assistance programs.

Speaker 7 (01:22:40):
You're getting almost seventy five percent of the down payment
and like on that four hundred or five hundred thousand
dollars home with this hometown Heroes. Yeah, you're only bringing
twenty eight and a half percent of the total money
needed for the down payment and closing costs.

Speaker 5 (01:22:54):
To buy just with the DPA. Just so, the.

Speaker 7 (01:22:57):
TPA has given you seventy percent of the money that.

Speaker 5 (01:22:59):
Were thirty thousand, you're bringing like ten.

Speaker 7 (01:23:04):
Yeah, it's a great program. So look, but the thing
I want to get across today before we get in
construction on and everything is tell me about the timing, Mike,
because this is really important. So somebody goes, that's the
program I want. I'm just gonna you know, what do
I need to do and is there anything I need
to know about that program to to do with the
right way.

Speaker 5 (01:23:24):
The really great news is like it's the best down
payment assistance program out there. It's about to be funded.
It's funded annually. They haven't made it one hundred percent
decision in the legislature, but it's funded annually and it
starts it opens up July second, right, which is the
beginning of the fiscal year for Florida. Uh, it's funded.
It should be funded with at least one hundred million
dollars one hundred million. But it's gonna go quick, guys,

(01:23:50):
it's going to be gone. Last year, it was pretty
much like they're started sending the emails like, hey, funds
are exhausted at six weeks. So we had a month
and a half when they said, hey, the money's been reserved, right,
and so it's ess Actually it's first come, first serve
starting on July second until the money is gone.

Speaker 2 (01:24:09):
And this is for a first time home buyers.

Speaker 5 (01:24:11):
It's so the criteria is first time home buyer and
you have to be living and working, so working full
time in Florida for a Florida based company now, so
there's some nuance there. They have to have, like your
company has to have some some level of footprint in Florida.
So even if it's a national company, as long as
they have like a local spot that you're going to

(01:24:32):
something like that, that qualifies.

Speaker 7 (01:24:34):
Now. The other thing I've employed also, yes, and a
first time home buyer is not what most people think.
First time home buyer means you haven't owned a primary
residence for three years or longer. Primary. Yes, so you
could have a second property that's not homesteaded, or you
could be like part of a living trust like we

(01:24:54):
discussed with Dane, and you're part of a living trust,
but you're really not living there relatives or living there. Yeah,
State planning, that would be a first time home buyer
if you don't own a primary residence.

Speaker 5 (01:25:04):
Or like, let's somebody maybe in your position, Jim, Like
in the past, you you had several properties and you've
maintained rental. Uh, you know, you have investment of properties,
but your own home you ended up selling. You've been
renting for the past four years. Guess what your first
time home?

Speaker 7 (01:25:18):
First time home.

Speaker 5 (01:25:19):
The problem is first time home buyer. It's like literally
means it's the first time you're buying a home. And
that's only they it's because they can't come up with
the catchy, like memorable thing to say, you haven't owned
a primary home.

Speaker 7 (01:25:31):
Yes, it's like.

Speaker 5 (01:25:36):
It's the first time you're buying a home in the
past three years. If you have, you know, it's a
tough one. So yeah, if you qualify as a first
time home buyer, meaning you haven't owned a primary home
in the last three years, and you live and work
in Florida for a Florida employer, you're going to qualify
for Hometown Heroes. And there's income limits and there's credits
like you have to qualify. So that's where that's where

(01:25:56):
you don't have to know all that. That's where I
come in, Right, you just talked to me and we're like,
what loan program are we doing? Hey, you need some
help with your cash Hometown Heroes. So the timing, guys,
is now, right, you need to be shopping now if
you're going to be planning on using Hometown Heroes, and
it's if that's like critical to your ability to buy.

(01:26:17):
The time is now because you've got to move now.

Speaker 7 (01:26:20):
Your need thirty days to close. Right when you go
into contracts, you should expect to close in thirty days.
So if you get the house under contract August fifteenth,
there might not be any money left yeah, to close
on September fifteenth.

Speaker 5 (01:26:36):
If you want to basically guarantee that you get it,
bring me a contract before mid June.

Speaker 7 (01:26:43):
Oh, in mid August. You think by mid August.

Speaker 5 (01:26:46):
Bring me a contract before that, right, And there's the
way that this works, like we can funds will be
reserved and then cancel on reserve and they kind of
go back into the pool. So there'll be opportunities past that.
But if you want guaranteed, so bring me a contract now, now,
contract in July, contract first half August.

Speaker 7 (01:27:03):
I want to get into the Florida Talk real Estate time.

Speaker 2 (01:27:06):
I'm sorry at Florida talkreal Estate dot com. You're one's
not real estate shop access the entire team like Mike Row,
the mortgage guy from the mortgage firm Florida Talk real
Estate dot Com.

Speaker 7 (01:27:15):
Thank you, Johnny. I'm a little hyper today because I
really want to get through all this because it's really
great a stuff.

Speaker 1 (01:27:20):
You know.

Speaker 7 (01:27:20):
I'm listening to Mike talk about all this, and I'm like,
where can you get this locally? Like if you're a
consumer in a way then yeah, like in a in
a way that you don't have to read realms and
reams of papers and multiple articles and search and sorts
and search. We're giving you all this stuff right here.
And just I mean, if you're driving in your car,
a guy in your radio right now, it's awesome.

Speaker 5 (01:27:40):
The guidelines for Hometown Heroes in Florida and the Florida
bon Pro they're available online if you want to go
look at guidelines and like figure out what it takes
to get it. Or you could just talk to me
to do that.

Speaker 7 (01:27:49):
Yeah, Or you could do that and I don't bite
and there are you're going to get a lot more
information because Mike deals with it and I deal with
it in the real world.

Speaker 5 (01:27:58):
Right.

Speaker 7 (01:27:58):
The stuff on or is important, it's all accurate, but
it doesn't tell you how it really works. Like you're
not going to read in the online Hey, you got
to get your loan in by August sixteenth if you
want to really have a shot to get in this program. Right,
they're not going to put that in there. Yeah, So
this is all the real life stuff of how.

Speaker 5 (01:28:16):
To use these people like that like a maze or
not amaze. Maybe it's just like you have to get
through this big patch of woods and you could like
figure it out on your own and take the time.
But or you could talk to somebody who knows every
possible path and can look at you and be like,
you know what, based on your height and your weight
and your speed and your eight. We're going to go
this way and we're going to get to the end. Right.
So like that's that's what you need. You need a guide,

(01:28:38):
you need a guide that's value.

Speaker 7 (01:28:40):
So, Mike, I got this town home in West Palm
Beach and you said that there was a special loan
program that I'd really like to talk about. So we
have three seven one eighth Victoria Drive in a community
called Somerset in West Palm Beach and it's a two bedroom,
two and a half bath town home and it's in
a really good condition in a great neighborhood. And Mike

(01:29:04):
found out that there's a special financing that you can
use for this community. So could you explain how that works?

Speaker 5 (01:29:10):
Yes, it's not. So the mortgage firm has what we're
calling an incentive, right, So it's an incentive program. So
we're using traditional FHA, conventional VA, all of these would apply,
but the mortgage firm has what we call the smart
Start incentive, and in certain census tracks, the smart Start

(01:29:32):
is available to you and it's basically money, not that
you can use down payment and closing costs, but to
use to buy down your rate so get a lower
interest rate or perhaps do a low down payment loan
with no mortgage insurance. Right, so whether you get a
lower interest rate or you eliminate your mortgage insurance, both
of those are translating to lower same house, same price,

(01:29:58):
lower payment.

Speaker 7 (01:30:00):
Let me let me just ask you this question. Go
over private mortgage insurance, just really really quick so that
people that don't know it's it's pretty easy. But and
what are the rates now? I don't remember. I used
to remember that FAHA was like point eighty five or something.

Speaker 5 (01:30:14):
It used to be FHA is point five to five
point five five in that way for a number of years, right,
it was point a five okay, which and just think
of that as like a percentage, right, so if you're
if you're thirty year fixed rate is seven percent and
you have m I mortage densernance at point five to five,
you are paying seven point five five percent, Okay, that's it.

Speaker 7 (01:30:32):
And then conventional how much is range like point two
up to like two two point two point Like, if
you're on the low end, the credit can really be
really be impactful.

Speaker 5 (01:30:43):
But to sum up that program is essentially, if the
home is in eligible for what i'll call community lending programs,
and you can combine these like there might be another
community lending program which also has a lower interest rate,
and you combine that with the mortgage firm Smart Start,
and you're getting an interest rate like if the going
rate of seven, you might be below six percent. You

(01:31:05):
might be at six percent, might be a full percentage,
might be like five points. Like we can combine these things,
and uh so community lending, as long as your loan
originator knows what they're doing, they will spot those opportunities.
But you combine that with the exclusive TMF Smart Start program,
which is exclusive to the mortgage firm. Nobody else has

(01:31:27):
this right, so you can use anyone with the mortgage firm.
I would prefer if you use Mike Row with the
mortgage from yes, right, because I'm gonna spot all these opportunities,
but you're gonna end up with a lower interest rate
than anybody else who's.

Speaker 2 (01:31:41):
Buying right now. Does mortgage firm have this in all
the states.

Speaker 5 (01:31:44):
So it's Palm Beach, Broward and Dade County.

Speaker 7 (01:31:49):
Yes.

Speaker 5 (01:31:50):
Unfortunately, my Martin and my people can't take advantage of
smart Start, so it is those specific counties, but I
operate in all three of them. Those counties. A lot
of our buyers are buying in those three counties and so, and.

Speaker 2 (01:32:03):
It's county wide or is it neighborhood to neighborhood.

Speaker 5 (01:32:06):
It's uh, I guess census tracks.

Speaker 2 (01:32:10):
So what exactly does that mean?

Speaker 5 (01:32:13):
That means you're looking at the population ratios.

Speaker 2 (01:32:16):
So they're trying to incentivize picking up some population in
certain areas.

Speaker 5 (01:32:21):
Is that I think it's it too. So the community
lending initiatives are always about, uh, the dream of home
ownership in I don't want to call it underserved communities
because I feel like there's home John, There's places all
over Royal Palm Wellington, like all over there are certain
little pockets where there's there's opportunities for these community lending programs.
They are initiatives and so, but yeah, generally it's like

(01:32:44):
we want to get solid home ownership into certain areas.
That's excellent, Yeah, but they're all over like I did
when it was you know, uh, the five hundred and
fifty thousand dollars purchase price right in there.

Speaker 7 (01:32:58):
And how much do you think they saved on interest rate?
Do you think when the smoke cleared?

Speaker 5 (01:33:03):
I mean just with the are the smart start where
you're probably three quarters of a percentage point lower than
if you didn't have it.

Speaker 7 (01:33:11):
Wow, that's that's a lot.

Speaker 5 (01:33:12):
That maybe a half to three quarters. So if seven
maybe just with smart start, maybe it's six and a
half or six point twenty five. Right, Like, there's money
to buy down the interest rate, right, So you're basically
paying points to buy down the interest rate.

Speaker 2 (01:33:25):
So somebody comes to you for the consultation and they're
you know, then they start shopping in one of these
areas where you can apply this, You're then going to
be like ooh, because that changes their monthly obligation.

Speaker 5 (01:33:37):
That's right.

Speaker 2 (01:33:38):
One percent interest rate is ten percent of your buying power.
So if we're moving that like three quarters of a percent,
that that increases your buying power a lot, pretty dramatic
a lot.

Speaker 5 (01:33:47):
Yeah, if you're trying to so kind of the slogan
is same house, same price, lower payment. But you could
also like, what if we said same payment, right, whatever
I started with, same payment, morehouse, right, higher price, how
about that same payment right? So you could kind of

(01:34:07):
like twist that thing. So, yes, it increases your purchasing power.
It also gives you the ability to buy that house
with the lower payment.

Speaker 2 (01:34:15):
And also, man, this is really highlighting the value in
and in a in a team like right, So, I
mean there's so much value I can we can spend
days talking about the value of the team. But if
if you don't have and I know, I know you
work with a lot of realtors, but specifically this team,
if Gym's not aware that you can do this, like,

(01:34:36):
it leaves his buyers in this almost lurch in a
way because he doesn't know what he doesn't know. It's.

Speaker 5 (01:34:42):
Yeah. Part of what I've been trying to do is,
you know, I obviously try to build relationships with with
real estate agents, right, So listing agents, I'm trying to
like raise awareness that this program exists because it is
exclusive to the mortgage firms. So it's not like you're
not just going to have the ability to do it.

Speaker 2 (01:34:56):
And three counties only certain areas.

Speaker 5 (01:34:58):
Yeah, and so like reaching out to listings that are
in census tracks where it makes sense, like, hey, your
buyers can buy this house, take advantage of this program,
and it's going to basically increase your pool of potential
buyers a lot because someone who's who's by lowering the

(01:35:18):
interest rate, you're allowing them to buy a more expensive
home and end up at a payment that they qualify for.

Speaker 2 (01:35:25):
Most importantly to you, the buyer, that's what we're really
focused on. Yeah, you're listening right now, the buyer. This
is a tremendous value that is in the tool belt
for microw and for gym.

Speaker 5 (01:35:38):
Depending And it's hard to know because you don't know exactly,
Like you're not shopping in those sensor tracks specifically, you
just kind of like, Okay, what's the home you're interested
Is this one going to qualify it? Not, So we're
not using that as a factor for where you're buying,
but we're going to spot it. We're going to keep
an eye on it. We're going to make sure that
if it's eligible for any inditition is right. Yep, We're

(01:36:01):
going to spot those. And you have to have people
who are like actively aware and watching and like thinking
about your ability to get into a home for the
you know.

Speaker 7 (01:36:11):
And want to use them. A lot of people don't
want to use the program, So a lot of the
professionals just I talked to a lot of mortgage brokers
stars program that I will.

Speaker 5 (01:36:19):
Tell you what you know if the home qualifies you're
getting smart start. I don't care if you want it
or not. You're getting it right.

Speaker 7 (01:36:25):
Hey, hey, I don't want to report three quarter points
dropping my interest right, No, Mike, No, don't do that
to me.

Speaker 5 (01:36:31):
Yeah, exactly. I get surprised you with it.

Speaker 2 (01:36:34):
I really tip a cap to the mortgage from That's awesome.
What a remarkable asset to the community for you know, buyers,
I mean, thank you, that's fantastic.

Speaker 7 (01:36:42):
It is.

Speaker 5 (01:36:43):
I didn't invent it, came up, you know, corporate put
it together. But it's it's been helpful and I've it's
kind of like it's an exciting right Like it's like,
holy cow, look at this opportunity and be able to
get to buyers who are who are using us, and so.

Speaker 7 (01:36:57):
It feels good to help people. It feels good to
help people now. I also want to talk about construction loans. Okay,
in this market right now, our inventory has grown tremendously.
I was just talking to an agent yesterdays explaining how
port Or Saint Lucy County, for the first time since
twenty thirteen, has actually seen a slow down that we

(01:37:21):
haven't seen in Saint Lucy County ever since we had
the crash once twenty fourteen hit. Saint Lucy County was
always on the cutting edge of breaking all the records, right,
so they had the higher percentage of month year over
year appreciation month after month. They were the ones that
had the very lowest inventory of all the counties that

(01:37:42):
we covered, the six counties we talk about on the show,
they always had the lowest inventory out of all the
six counties and everything partly was because they were one
of the most affordable counties other than Indian River. They
were the most affordable county out of the six counties
that we're in, and we saw that. But now Saint

(01:38:02):
Lucy's really seen a slowdown in fact last month April
because we never talked about the April reports because they
came out last week in Saint Lucy County. I'm not
going to go into market stats. I'm going to do
that next week. But uh, in Saint Lucy County, check
this out. I think this is the first month in
a long time. Yeah, we had negative two point one

(01:38:26):
percent media appreciation year over year. So a year ago, Uh,
Saint Lucy County, the medium home price was four oh
three five and right now we're at three ninety five. Okay,
not the end of the world, and that could fluctuate.
Next next feels work.

Speaker 2 (01:38:43):
Negative appreciation.

Speaker 7 (01:38:45):
Oh did I just say that negative appreciation says that
depreciated two point one percent.

Speaker 5 (01:38:50):
You're right, appreciated downwards.

Speaker 7 (01:38:53):
Yeah, so, yeah, exactly, we appreciated towards. So we have
seen we are seeing even a slow down in Saint
Lucy County, which is really surprising to me. I always
felt like, if you're seeing a slow down in Saint
Lucie County.

Speaker 2 (01:39:06):
Slowdowns one thing depreciation I would have never guessed.

Speaker 7 (01:39:10):
Oh yeah, I see what you mean, like slower sales
and slowing down. Yeah, I know. So that was surprising
to me too. And Saint Lucy County had the lowest
inventory we've ever recorded. Was I think was zero point
eight months or zero point nine months. Was the lowest inventory.
Can you imagine that we had less than thirty days

(01:39:31):
inventory imports Saint Lucy, meaning that if no other houses
went on the market, all the properties were gone. And
in April Saint Lucie County, just to give you an idea,
and this is very similar with all the trends, six
point two months of inventory. We were officially in a
buyer's market in Saint Lucie County according to the stats

(01:39:52):
right now. And people aren't getting it because when you
read the headlines, all I'm reading is interest rates at
the highest rate, hards rate in five years. Really, we're
at the same rate we've been for the last eighteen
one pretty much.

Speaker 5 (01:40:05):
Even last week. You said, hey, Mike, because did we
going last week? Did we go up? And you think
you asked her we're going to go above seven?

Speaker 7 (01:40:12):
We didn't even come close.

Speaker 5 (01:40:14):
You were at three.

Speaker 7 (01:40:15):
Yep, we're at six six point eight nine.

Speaker 5 (01:40:18):
It did increase pointe like what you were hearing?

Speaker 7 (01:40:23):
Highest interest rate in nine in five years? I don't
think so. I can name two off the top of
my head right now in twenty twenty three and last
year that were higher than the rates that we were at.

Speaker 5 (01:40:32):
Now, what about just the January of this year?

Speaker 7 (01:40:34):
Yeah?

Speaker 5 (01:40:35):
Seven zero four, right, seven point zero four yep, so
it's the peak January.

Speaker 7 (01:40:40):
So what do you need to know? Don't listen to
the media right now. And I don't care what media
you're talking about, because I hate to say this, but
I'm not finding anything good anywhere as far as what's
really really happening other than the big picture got loads.

Speaker 5 (01:40:56):
Yeah, what happened?

Speaker 2 (01:40:56):
Right?

Speaker 5 (01:40:57):
And we were talking construction.

Speaker 7 (01:40:58):
Oh, I'm sorry, how did we did into the out Yeah? Yeah, oh,
I was talking about Yeah. What I wanted to say
is is there's a ton of inventory out What I'm
trying to explain is for buyers, there's a ton of
inventory out there. And because of that, there's a lot
of sellers that are overpriced, and there's a lot of
sellers that are priced right. And then there's the deals.

(01:41:19):
And what the deals are in today's market are the
houses that need the fixing up thing. And for whatever reason,
the regular buyers are coming and look at those houses
because they're priced right, and then they go, I don't
want to do that.

Speaker 5 (01:41:34):
There's too much work to get the money to improve,
like to do everything needs to be done.

Speaker 7 (01:41:39):
Yeah, this house needs fifty thousand dollars work. Where am
I going to get that money after I buy it? Well,
one of the ways you can do it is through
construction loans.

Speaker 5 (01:41:47):
Renovation loans.

Speaker 7 (01:41:48):
Oh is that what you call them?

Speaker 5 (01:41:49):
Right?

Speaker 7 (01:41:50):
That's a bet.

Speaker 5 (01:41:52):
There's also hey, build my home. That's that would be
those two guys. Guess what if you want to build
your own home, even if you don't own a lot.
So I'm not talking like new neighbor like those construction communities,
but you want to get like like a Jimmy Off
have a home built, right, speckcom whatever it is. We
can do those two. But this is a renovation line, So.

Speaker 7 (01:42:12):
The renovation loan. So can we start off with the faha,
two zero three K renovation loan first, because I think
that's the one that's most commonly used.

Speaker 5 (01:42:22):
And I think maybe i'll set it up with When
you're doing the renovation loan, you're financing the renovation. So
you have your acquisition or your purchase price, and then
you also have your renovation budget, and so your loan
at the end of the day is those two numbers combined.
So if you buy it for two fifty you got
fifty thousand renovation, you end up with a three hundred
thousand dollars loan, right. So that's how that works. Where

(01:42:42):
you're getting the money to the renovations, you're borrowing it.
You're paying it back on your thirty year fixed rate loan,
just like you do on a regular purchase without.

Speaker 7 (01:42:50):
One, and it's the same interest rate and everything it
is at a higher interest rate or anything like that.

Speaker 2 (01:42:54):
What if you don't use it all?

Speaker 7 (01:42:58):
What does that happen in construction?

Speaker 5 (01:42:59):
Yeah, it would go to a principal reduction to so
you can't put it in your pocket. You're like, oh,
one hundred thousand dollars budget, but I only need fifty.
You can't do that, So it would go to like
a principal reduction extent. But I would say, Jim is correct.
You're gonna see.

Speaker 7 (01:43:13):
So let's let's use my house as an example if
you don't mind. Okay, the house I have right now.

Speaker 5 (01:43:18):
So I have a two three K is one of
the program that's faha's renovation program.

Speaker 7 (01:43:22):
Okay, So this property, seventeen oh one West Cloverleaf Street
in Port Saint Luci is a three bedroom, two bath
frame home with it definitely needs a new roof, Okay.
The pool is completely green and I don't think the
pump's working right, So the pool has to be probably resurfaced,
and then mechanical work on the pool just to make that.

(01:43:43):
And those two things have to be done to meet
FHA financing, okay, because they have to be structurally sound.
And then after that then right, exactly, and then then
it needs all the cosmetic you would normally expect an
older home. It needs a new kitchen and new bathroom
and pain and flooring. However, none of it is not functional.

(01:44:03):
It isn't like the kitchen cabinists are falling apart, or
there's leaks everywhere in the plumbing or anything like that.
It just needs updating. So anybody that would buy it
will want to go in there and take care of it.
But it is kind of over this particular.

Speaker 5 (01:44:17):
If you're doing it, why not do everything?

Speaker 7 (01:44:19):
Well? My part is is that's the funny part. If
you're gonna rip it out, what difference how old it
is or not. You're ripping it out anyway. So this
is really and in this house has a really nice layout,
so I don't think you need to be moving walls
around or anything like that. The electric panel is good.
It probably needs a new ac mic. Okay, So what
I was thinking is if somebody in this house is

(01:44:41):
only priced the two fifties, the lowest price pool home
in all of Port Saint Lucy, not the county.

Speaker 5 (01:44:47):
You get a pulles. Yeah.

Speaker 7 (01:44:50):
Yeah, the full comes out. So and it's in ground.
It's a cement pond. So right now it's a pond,
it's a seament pot. So so. But I was thinking that
if you did a streamline two a three K renovation,
which you're explaining the difference. Yeah, you could put the
roof on, you could fix the pool, make it brand new,

(01:45:10):
and put in the AC for sure, yes, and then
you're still gonna have to mess with the kitchen and
the bathrooms and the flooring of the pain eventually. But
a lot of that stuff you could do is a
weekend warrior, weekend warrior stuff and get all the heavy
lifting done, and you'd have a mortgage. And I'm thinking
this streamline is a thirty five thousand dollars loan. And
if you're buying it for two fifty, you've got a

(01:45:31):
three bedroom, two bath with a brand new roof, you know,
pool in excellent condition, brand new AC and a functional
house at two eighty five. And then you can go
in and make it really nice and then the house
is going to be worth probably three eighty five to
four fifteen. This way I think it's going to end.

Speaker 5 (01:45:48):
This is the critical thing. So there's always like doing
the renovation sounds great, but you have to buy the home.
So the constraining factor for how much loan you can
get total combined acquisition plus right innovation. The constraining factor
is what's the home going to be worth after it's renovated.
What's an appraiser tell us it's worth after it's renovated, right,
So what is the after improved value of the home?

(01:46:09):
Because you're always anytime you're doing a loan, guys, it's
LTV loan to value, so you're borrowing a percentage of
the value. So if the after improved value Jim is
four to fifty, then you could get an FAHA loan
pretty much at ninety six and a half percent of
that four to fifty. So if you're buying it two fifty,
that allows a lot of money for renovations. Now Jim's
talking about the streamline. He's talking about thirty five thousand.

(01:46:31):
FAHA has two ways to do it. There's the full
kind of like the full renovation, or there's the streamline.
Streamline is nice because it's you don't need it's not
as involved in kind of the who determines what renovation
must be done, what you want to do. There's FAHA
two or three k consultants involved when you go above

(01:46:52):
three the streamlineline. So streamline is maybe it's self evident,
it's easier to do than the full. Here's the good news, Jim,
because you tickled my brain. I'm like, wait a second,
because you're like thirty five thousand. It's not thirty five thousand, guys,
it's seventy five thousand, way seventy five thousand.

Speaker 7 (01:47:09):
Oh so this house would be a streamlined and no,
no problem.

Speaker 5 (01:47:13):
Do the pool to the roof, through the floors.

Speaker 7 (01:47:16):
That makes it better for a first time home buyer.
And that's who should be buying this particular.

Speaker 5 (01:47:21):
And is it really going to be worth that much
after I.

Speaker 7 (01:47:23):
Believe that the house is going to be worth and
I'm trying to be very conservative here three eighty five
to four oh five.

Speaker 5 (01:47:30):
This is this is the winner and the Oftentimes the
challenge is like sellers don't want to sell their home
low enough to allow space for the renovations, right because
they think their home is not as bad as someone
else might think it is. This one sounds like a
perfect opportunity. And as long as you have time to
let the construction work happen, which you know, all that

(01:47:51):
stuff's pretty quick with the right team. I mean, you
could be done in a month age.

Speaker 7 (01:47:58):
Job probably.

Speaker 5 (01:47:59):
Now you do have to call five for the bigger amount, right,
you got to qualify for that three hundred and eighty
five thousand dollars loan. But that's okay. So this could
be a perfect opportunity for somebody who's uh up for
that challenge because it's you know, and there's.

Speaker 7 (01:48:11):
A lot of people that watch HGTV and love doing
all that stuff. Are you I have a question? Oh,
I thought you were like, I'm in something like can.

Speaker 2 (01:48:20):
You do DPA on, said Loan.

Speaker 7 (01:48:23):
Uh.

Speaker 5 (01:48:24):
I think the answer is yes, but I'm not one
hundred percent.

Speaker 2 (01:48:26):
That would be down PA.

Speaker 5 (01:48:27):
I haven't done it. I haven't done that, but down
payment assistance on a two or three K, I'm not
one hundred percent. I need to check on it.

Speaker 2 (01:48:34):
And if the answer is yes, would Hometown Heroes even qualify? Yes?

Speaker 7 (01:48:39):
Answer, that would be like a Grand Slam Grand Slam
in the World Series.

Speaker 5 (01:48:44):
So don't hold me. Don't hold me to that, Johnny,
I gotta go.

Speaker 7 (01:48:47):
You'd have to check, yeah, but that would be amazing
if you could pull out off. So this construction loan
let me tell everybody out there, I'm sorry thinking the
renovation loans out there, there really great program for people
that want a certain type of home in a certain
tape of neighborhood. They can't afford the fixed up ones,

(01:49:07):
and then they go look at to the ones they
can afford. It's like, oh my god, I can't believe
I'm going to have to move in with the Shagru Corporating.
That's gold and olive green uh olive green uh, bathroom toy,
you know, bathroom tub and stuff.

Speaker 5 (01:49:22):
The avocado.

Speaker 7 (01:49:23):
Yeah, thank you avocado. So so this is a great
opportunity to get into those neighborhoods you want and get
it out of value because you're going to get extra
equity because they're going to sell it lower to you
because of the repairs.

Speaker 5 (01:49:35):
Go Mike is FAJA the only ones that offer options
also VA also, it's amazing all of them.

Speaker 2 (01:49:44):
Really you can do renovation a loan with zero percent
down their VA.

Speaker 5 (01:49:48):
I want to say, h yes, but yes, like.

Speaker 2 (01:49:51):
Eight like hell yeah yeah that is talking about Ernie. Yeah,
I mean a wonderful ben fit as a serving the country. So,
but even conventional yes, and then the conventional slide kind
of the same way from five percent down to twenty percent.

Speaker 5 (01:50:08):
Down like any other five percent down.

Speaker 2 (01:50:11):
Yeah.

Speaker 7 (01:50:12):
Wow.

Speaker 5 (01:50:12):
Yeah.

Speaker 2 (01:50:13):
But so the advantage between the conventional and the FAHA
is there's more red tape with the FHA versus a conventional.

Speaker 5 (01:50:19):
Well, depending on the streamline, but yeah, potentially FAHA has
more red tape than the conventional potentially because FHA is
if you go above the seventy five k Yeah.

Speaker 2 (01:50:27):
FAHA is going to kind of make sure everything really
meets their.

Speaker 7 (01:50:30):
First time home.

Speaker 5 (01:50:31):
By something like FAHA, you can't you can't increase the
footprint of the home. So if you were thinking like
at at a house or room something like that, conventional
you can.

Speaker 2 (01:50:40):
Okay, so you're taking me right where I wanted to go.
So if you were looking to add to the footprint
of the home, that conventional route is a route for you,
and you can do that as low as five percent down. Yes,
and you can possibly you can get the answer possibly
used down payment assistance, Yes, possibly.

Speaker 7 (01:50:56):
Holy So that opens up a bunch of doors.

Speaker 2 (01:50:58):
It does for me for so many listening.

Speaker 7 (01:51:01):
Yeah, and this is a really you guys got to
listen to this. This is a really great opportunity you're
not gonna get anytime soon unless we have some kind
of national international crisis. A better time to buy right now?

Speaker 5 (01:51:15):
Yes, you say, why is it a better time? Why
is it better for buyers?

Speaker 7 (01:51:19):
Because once the interest rates drop and they're thinking that
they're going to get to the low sixes by the
end of the year, like six to one, that's what
they're thinking, some fed pronosticators. So so the bottom line
is if that really happens, you're gonna have a pool
of people coming in. You're gonna be fighting everybody, and
the prices are gonna go up. Are you buy now?
At the prices as they're going down, you buy it?

(01:51:40):
You are paying a higher interest rate. But when the
interest rate goes down and everybody your value of your
home is going to skyrocket, and then you're gonna get
the low You're going to refight to the lower interest
rate that everybody else is paying high prices, but they're
going to pay higher prices than you. We see when
other people are zagging, and that's how you win.

Speaker 5 (01:52:00):
What do we say about like going out in the rain?

Speaker 7 (01:52:03):
I don't remember we.

Speaker 5 (01:52:03):
Said something like if you're out, you know, if you
can tolerate going nod that. I've heard that before, Like Toddy,
A lot of people are just going to stay home
because it's raining outside. Well, if you could tell you
can get well out there, like there's going to be
so anyway, there's more inventory now than there has been
in many, many years, right, so inventory is increased higher

(01:52:25):
than is. Sellers are getting anxious days on market or longer.
So you have more negotiating opportunity right now as a
buyer than you have had and probably I can't think
of the last time it's been.

Speaker 7 (01:52:35):
You just have to be smart about it. You have
to look at the big picture and not read those headlines.
Those headlines right now are toxic. They really are. They're
really hurting the real estate market, not only because there
how can you say that we have the highest interest
rate in five years. There's just no proof of that
at all, and they're just bringing it and you see

(01:52:56):
it in every We're in a world seat on news
week in four. I mean, we're talking about these big.

Speaker 3 (01:53:02):
Maga groups, one bank with bad credit that could possibly
be at that high end.

Speaker 4 (01:53:07):
And oh, you're telling the truth, so it's okay to.

Speaker 7 (01:53:10):
Be it's really crazy, So don't listen to listen to
the local pros that can help you and get you
the device you need. And sometimes the answer should be
not right now, and that's okay, but find out. But
don't don't be on making a uneducated decision for yourself.
You could be hearing yourself in your family's long term.

Speaker 2 (01:53:30):
In the last thirty minutes, Mike just quickly gave you
a rundown of all kinds of avenues that really I
mean just not scalpel like hatchet dollars that are needed
to get into a home right now, right now. But
you gotta know where you stand. It starts with you
understanding your numbers. That's why you got to speak to

(01:53:50):
a professional. I recommend Mike Growth, the mortgage guy from
the mortgage firm. If you go to floridatokrealestate dot com,
you're gonna have access to entire team prospero experts in
their field and they work cohesively together. Man, they're on
the phone all the time. Can this work? Can I
do this? Hey? Did you think about that? It's remarkable.
I've experienced it for myself. You can too, remember buying

(01:54:13):
a home, selling a home. Those are some of the
biggest transactions financially you're ever going to do in your life.
And if you are not led by people that have
your best interest at heart and absolutely understand all of
the caveats, all the potholes that are laying there, and
again all the angles that we can take to make
it happen for you the right way. You're not working

(01:54:34):
with the right people, vet the team. If you're not confident,
talk to them, let them win you over. Believe me,
they will do just that. It's floridatokrealestate dot com. Know it,
use it, love it, share it. We're on Facebook and YouTube,
consume away. But get with these pros. Understand where you're at,
get a feel for where your reality lies. Don't just

(01:54:54):
make it up in your head and then go from there.
Florida Talkrealestate dot Com. Mike Row, the mortgage guy from
the orgage from thanks for everything. Always have a fantastic weekend.

Speaker 5 (01:55:02):
Thank you for everything always as well.

Speaker 2 (01:55:04):
Appreciate you very much. Jimothy, our producer, extraordinary. I hope
you have an excellent weekend. Thank you for all that
you do.

Speaker 3 (01:55:10):
Thanks Johnny, you have a great weekend. Mike you as well.
Jim you as well.

Speaker 4 (01:55:13):
And everyone out there please have a great weekend.

Speaker 2 (01:55:16):
There's Jimi d Jim Deporta with the Florida Home Pros
team caller Williams Innovations. Thank you for all that you
do always and I hope you have a stellar weekend.

Speaker 7 (01:55:23):
Thank you. Have a happy South Florida. Have you South Florida, Florida?

Speaker 2 (01:55:28):
Hey, we got a rematch for the Stanley Cup finals.
Boom the Oilers the Panthers. Panthers reached elite air in
the NHL world. They went from like NHL irrelevance. They're
now in three straight Stanley Cups. There's only four teams
since nineteen eighty to do it. They're one of them.
Eight have done it.

Speaker 5 (01:55:45):
By the way, when did they rebuild?

Speaker 7 (01:55:46):
This is six.

Speaker 2 (01:55:47):
Straight years of Florida team has been in the Stanley Cup.
Wow sucking. Have a great weekend y'all.