Jason Bramblett 11-25-23 Part 1

Jason Bramblett helps you understand and profit from Real Estate in the Piedmont Triad of North Carolina.

Episode Transcript

(00:01):
I need somebody, not just anybut you know I need someone. Good
morning, Welcome to the Jason BrewbottReal Estate Show. Everybody is doing great,
and well, hey, you didit. You made it through another
Thanksgiving and you ate an entire turkeyand you're still standing. Congratulations, You're

(00:24):
You're good to go. I'm sureeverybody's at the gym right on the way.
Actually, really what we survived wasthe in laws and the outlaws.
If you're really hardcore, you knowthere's actually a charity five k before the
turkey run. That is right,if you really want to give, you
really want to get up, Ijust can't. No, I'll run two

(00:45):
days before and two days after.But I ain't doing it. Yeah,
I know, I'm kind of withyou, but you know there are I
mean, it's it's actually, well, obviously, whether permitting, I'm assuming
it was a good turnout, whoknows. But I didn't partake. I
actually kind of hurt my knee,so I'll use that as an excuse.
But you know, hey, whatever. Now it's we're getting ready for the

(01:07):
mother of all holidays, you know, Christmas, it's the big one.
It's it's it's just fun. Idon't know, I'm always just like,
I'm a Christmas guy. I likeit. I love Christmas. But more
and more it feels like the payoffbecause it feels like we begin Christmas in
like mid August. It's like,yeah, so it's like you get to

(01:29):
Christmas and there's this big build up, and then Christmas hits, and about
halfway through Christmas, you're like,it's over right. I love Christmas.
I almost feel like it's it's theback to school Christmas sale this year.
I don't know why it was.It did seem like everything was I felt
like I felt like the costcos andthe targets of the world had stuff out

(01:49):
first of October. It just gotearlier. Yeah they did, for sure.
But all right, well, allkidding the side. I hope you
guys did have a great week,and definitely we have a lot to be
thankful for it, there's no questionabout that. So real estate, well,
what's your pleasure? I thought wetalked, you know, I don't
know a little bit of real estate. How about investing that It's something that
comes up a lot this time ofyear. I don't know, it always,

(02:13):
it always is just a hot topictowards the end of the year,
and well, I guess this yearis no different than any other year.
So I thought we just dive inand you know, mini owners out there
wanting to sell and you know,get the properties off their books and you
know, some to avoid taxes.You know, no matter what, we've
got that, you know that deadline, December thirty first is still December thirty

(02:35):
first at midnight. And so allyour little tax deductions and things that we
do as as savvy business owners andreal estate owners and all that that that's
our deadline no matter what. Soor perhaps you know, for some if
you get real savvy, you geta new address over at Buttoner, North
Carolina, which which I don't recommend, you know. So we've had some

(02:59):
we've had some celeb at Butner andsome people that are well, they did
very well for a time until theygot caught. So we don't want you
make in that list for sure.But if you are interested in investing,
and that's what we're going to divein today. If you have some questions
after we get down with the show, you want to get in touch with
us, you can go to Jasonbrownlet real estate dot com, or you

(03:22):
can call or text the office that'sfive five, three zero seven, nine
to six. So I feel likewith investment property, it's a little bit
different. If I'm shopping for ahome, I'm just looking for something that
makes me and my family happy.You know, what is going what are
we going to love spending the majorityof our time in. When it comes
to investment property, there's a lotof ways that you can make a lot

(03:43):
of money. There's a way youcan lose a lot of money. You
can flip homes, you can renthomes, you can you can sell parcels
out to business. There's so manydifferent things. How do I even know
if an investment property is a goodone to be messing with? Yeah?
There, I mean definitely, thereis a there is a lot. This
is a it's a big it's abig category. So I'd say, let's

(04:05):
let's break it down and put everythingkind of in a in a few buckets
if you will, and I'll giveyou some detail on you know, everyone,
this will be very you know,broad big brush, you know,
thirty thousand foot view. But youknow, the first one I think is
buy and hold. I mean,it's what a lot of people get into

(04:25):
real estate for the long term benefitto create well. Ideally, I think
most everybody with buying and holding isattempting to build that long term wealth.
I think is what most people arelooking for when they get into real estate.
If they're looking past that really coolfix flop flip, you know TV

(04:46):
show or whatever, and so,yeah, they're looking they're looking for that
cash flow. So buy and hold, and I and I love buying hold.
It's a great way to build wealth. If you look at the history
of a Marria, Erica homes prettymuch every twenty years, for as long
as we've been calculating them, costsmore today than they did twenty years ago.

(05:10):
Now it's not true of every singlesubdivision or area in America, no
question, but probably for ninety ninepercent of them. I like my odds.
Yeah, it's a pretty good it'sa pretty good bet. And and
and surely if we go forty years, I think you're I think you're okay.
I mean, if you guys rememberseveral shows back I talked about San

(05:32):
Diego, California. In nineteen ninetytwo, the average priced home was eighty
five thousand dollars in San What isthat now? Seven fifty at least?
Yes, all day I mean themailbox is like eighty five grand, so
yes. And then we got quickTurn real estate, you know, which

(05:55):
is a whole different you know bucketif you will. And then this is
more of your you know, yourand flip. This is the this is
what most people get excited about.It used to be the long term.
I can remember, many many yearsago, I had a guy tell me,
He's like, I'm excited, I'mready. I want to play monopoly,
you know, And it was oneway to put it. It was

(06:17):
not what his wife wanted though,So I don't I don't know how that
ended for them, but I itended for me at that conversation because they
didn't never call me back. Prettysure the wife decided that they weren't in
the monopoly business. But this quickTurn, it's fun, it's exciting.
It's what you see them doing onyou know, HGTV and taking the sledgehammer

(06:40):
and breaking out the windows and thewalls and all that kind of stuff,
and you know it is it's exciting. It's it's like, you know,
sometimes you transformed the house into yourvision or whatever it is. It's cool.
It's cool. The last kind it'sI don't know, maybe a little
bit, you know, new ora newer bucket. But, believe it

(07:03):
or not, there is actually areal estate market called you ever never even
owned the house real estate Believe itor not. Actually, it's a in
North Carolina on our standard listing agreementand offered to purchase. There's a box
you can check that says I've neverowned the house. So I guess you're

(07:23):
just you're just investing, You're justinvesting in someone else's ownership. Well,
it's it's interesting. So in inyou know, real estate law, you
can have a equitable interest in theproperty but not have ownership. Oh so
like a business, I own fivepercent of the business, but I don't
own controlling It could be could beit could be a spouse, you know,

(07:45):
it could be a divorce situation wherethey have a marital right or a
marital equital interest. And then there'ssome folks that So I guess the best
example to paint a picture for youguys, would it would be you go
to the courthouse and you sign acontract to buy a foreclosure. Well,
technically that home is still owned bythe previous owner on paper. At the

(08:13):
courthouse, the bank is exercising theirright to foreclosed to get their money.
They're either gonna get their money orthey're gonna get the asset. Asset be
in the house, so they're gonnatake the house away. But before that
happens, it's sold on what wecall the courthouse steps to the highest bidder.

(08:35):
Sometimes the highest bidder is the bankthat has the mortgage, but sometimes
it's well, somebody like me andI show up and I say, well,
I'm willing to pay X amount,which is more than it's owed.
So the bank's not gonna be theowner because I'm gonna pay enough to pay
the mortgage and there's additional money.I can then take that piece of paper,

(08:58):
that contract, and I can gosell that property. I can go
market that property, and I couldactually get a contract on that home,
even though I, officially at thecourthouse don't own it yet. And so
some people call this contract flipping.It's it anyway, it's it's become a

(09:18):
thing. It's a it's an Internetthing for sure. And then a lot
of younger folks like to do this. There's these hotel seminar guys going around
everywhere. Yeah, I always knowwhen they come to town too, because
our phones absolutely blow up. Theyfigured out how to make money. They

(09:39):
they did, they did, andit's exciting, you know. And and
yes, they did figure out howto do that. They figured out to
get that American Express card to work, for sure. But you know,
hey, it's it is. It'scertainly it's a it's like a cottage industry,
to be honest with you. AndI guess the best way to think
about it is, it's kind oflike some people are a real estate broker's

(10:01):
just they don't have a license.The slang term in the street is they
call these folks a lot of timeswholesalers. And and so they will contract
on a property with an owner.They will then take that contract and they
will go shop it with other investorsthat are willing to pay more for that

(10:24):
home than they did. And sothey're kind of the middleman, if you
will. And they created this wholelittle cottage industry called whole sealing, and
well, hey, it is.It is what it is. It's interesting
and if you don't like it,you know, don't get mad at me.
I didn't create it. It justso there's you know, a lot
of people think you have to ownthe house to have something in value,

(10:46):
and actually the contract, the pieceof paper is of what's of value,
and so that's what they're selling.They're selling that thing, so it's kind
of it's kind of cool. Youmay This is where we do get a
lot of questions because people will callthe office. Is this legal? And
technically it is legal. It isdefinitely legal in the state of North Carolina.
Now there are ways to do itthat are not and so i'd be

(11:07):
cautious and certainly talk with a realestate attorney. I am not one.
I can certainly refer you to someexcellent real estate attorneys that can look over
any and all paperwork. If youhave questions or legal questions about contract laws
and those things, I can.I'm just simply given you the Like I

(11:28):
said, this is the thirty thousandfoot view of what we're seeing and in
the marketplace, and I don't know, it's it's kind of fascinating, but
it obviously is a big enough dealwhere the State of North Carolina decided to
write it into the paperwork where youknow, again, it's definitely happened,
definitely more than less or twice.So it's it's kind of interesting. But

(11:50):
if you have questions about that oryou're just maybe you're in a situation where
maybe you have one of those contractsand you're not even sure that you want
to move forward with it, andyou just need some advice. Well,
we could definitely help you get youto a really great attorney into or many
attorneys in North Carolina. They canhelp you that. You can just go
to the website or call us it'sfive five, three zero seven nine six,

(12:13):
or go to the website. Youknow we can. We will steer
you in the right direction. Ifeel like the most common would be the
buy and hold, because you needa certain level of expertise to flip a
home, and you need a lotof expertise to do what you were explaining
about the wholesale property. So let'stalk a little bit more about the buy
and hold scenario. What am Ilooking for? Am I looking for a

(12:35):
home that's almost done that just needssome little touch up paint. Am I
looking for maybe a home that Ineed to put some love and tender care
into to get kind of a betterdeal. And then hold, I mean
kind of what am I looking for? Yeah? For sure, it's man,
it is all over the place,so it really I think you've got
to decide based upon you know,this criteria is what I look at?

(12:58):
The what, the where, andthe who. Those three questions kind of
dictate what direction I'm gonna go withevery single investment, whether it is that
buy and hold, the flip orthe wholesaler, I know what. Whatever.
So you know, let's let's justtalk about the what, well,
what type of real estate are we'retalking about, because that also varies because

(13:22):
I get a lot of folks thatwill say, well, I'm a real
estate investor. Okay, that's abig it's a big field. It's a
big field. It's a big field. And so like is that single family
homes, d plexus, quad plexes, apartments, you know, under one
hundred units, over one hundred units, like commercial, strip centers, shopping,

(13:43):
yeah, standalone, commercial industrial.I mean, there's just so many
different different angles, different ways inwhich you can invest in real estate.
And all of them are are great, all of them serve a per but
not all of them are great forall investors for sure. And and so

(14:05):
what do we what are we attemptingto buy? And and what is the
what's the use? Is what I'mlooking at? Those are the questions that
well, I have a famous saying, it's what are we trying to do?
Here? Yeah? What do you? What do you? You gotta
know what you need to accomplish beforeyou know what you need to get absolutely,
so what what do we? Whatare we trying to do? And
then the you know, the whofor many is a big, big decision

(14:26):
and because you know, here's thething with the who. Basically if if
if you don't have the who andthe plan, then like who's going to
take care of this thing? Ifyou're looking at the buy and hold,
is that you? Is it aproperty manager, is it a property management

(14:46):
company? Is it a whole entireservice organization. So there's a lot to
factor in that. And and justas a side note, especially for most
of you guys, hire a propertymanager. I mean, because so many
people get into real estate and thenthey end up being the property manager and

(15:07):
they didn't really intend to. Andthe reason that a lot of times they
are is because they overpaid for thehouse. They got excited. This happens
a lot, especially with auctions.You think about auctions, they what bid
it up? It's the cadence,the excitement to what get more money.
Most of the time you don't goto an auction and they're like, Okay,
we're going to start the bidding atone million, and then and then

(15:28):
and then it sells for ten dollars. No, normally they start what low,
build the excitement, build the excitement, and it goes up. Sometimes
that does happen in real estate.And when we see first time buyers or
maybe the less experienced, you know, investors get excited, they pay a
little bit more than they probably shouldhave. And then by the time they

(15:50):
factor into payments and interests and taxesand insurance and all that, there's not
a lot of cash flow there.And so the one thing that they end
up deciding that they won't spend themoney on is to have it professionally managed.
And they do it themselves. AndI'll be honest with you, you
probably bought yourself like the most horrificjob and low paying job on top of

(16:15):
that, because if there wasn't enoughto pay the property manager, like they're
whopping one hundred and fifty dollars amonth that they're gonna charge you. Yeah,
that's not a great paying job.I don't care. You know,
It's one thing if it's one hundredand fifty dollars a month per house,
and you're managing a thousand of them. But if you've got one man,

(16:38):
there's so many better things I'd liketo do with my one hundred and fifty
dollars in my time, I couldgo cut lawns and make one hundred and
fifty dollars in a couple hours ona Saturday. And if I want it,
you definitely could. And so weneeded to find the who and look,
guys, it's it's it's not abig deal. And there are a
lot of people that will tell me, well, we want to make as

(17:00):
ourselves because that's what we wanted todo and we're whatever control fee freaks,
or we can do a better jobor whatever it is. And that's fine.
That could be the case. ButI will tell you for most people,
you know, even if you're spendingfifteen percent of your gross rent toward
that property management fee or compensation,it's money well spent. I would do

(17:21):
this. I would pay more tohave more of my time. Again,
the reason that you got into realestate investing anyway was to have your money
work for you, you know,hence investment right, and most people like,
hey, I want to get areally bad part time job. Let
me go buy a house. That'snot a great idea. You know,
that's not a great idea, Sodon't don't do that. And so we

(17:45):
need to figure out who's going totake care of this. And you know,
like I said, like some peoplesay, you thought, like my
tenants are great, it's not abig deal, and you know it's easy
and all that, and that's great. I understand. Now how many houses
do you want to buy? Becausethink about it, I don't know Amazon.
You know, if Jeff Bezos wasout there loading up the truck,
I think Amazon would look different thanit does today. Yeah, I would

(18:07):
look like all the robots on thefloor, like right, yeah, exactly.
So I mean you can only buildsomething so big if you're doing all
the work yourself. So real estateinvestors absolutely are no different. But real
estate investors a lot of times arereally bad about putting value on your time.

(18:30):
And folks put value on your time. Your time is actually I think
the most well, it is themost precious asset that we all have,
so definitely look at it. Let'stry to make it easy. You're investing
to what make a profit, butyou're also investing to get your money to
work for you, So don't messup your plan just with some you know,

(18:51):
some management fees and things like that. Think long term and you know,
okay, you can some of yourhate mail. That's fine. You
know I'm good at that by now, don't you worry. But the last
bucket is where it gets real funand real interesting. And if you're going
to do that yourself, or wheream I going to buy? You know,

(19:11):
where am I going to buy theproperty? Well, you could buy
it in your subdivision, your city, your state outside of the United States,
So the where is important. Whereis this property going to be,
you know, and how close doI want it to maybe what I do?
Maybe you don't want it next doorto your house, but maybe it's
nice and convenient to have it onyour way to your work because you can

(19:33):
swing by and check it out andmake sure that I don't know, there's
not fourteen couches on the front porch, or lots of extra cars, cars,
the locks, yeah, you know, stuff like that. There's things
you can check on. So it'snot a terrible idea to get a house
that's maybe in you know, whatever. It doesn't even have to be a
house, but just a real estateinvestment on your way. There lots of

(19:53):
different skill sets it takes for lotsof different people, and lots of different
things that are out there. ButI think the wear is also a bucket
worth considering for sure. And youknow, it's a great way to break
down where you want to head inreal estate invest and let those three buckets.
So we're gonna do this. We'regonna take a quick time out.

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You're listening to the Jason Brown atReal Estate Show. We'll be back in
just a second.