Jason Bramblett 9-30-23 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 that, but you know I need someone.
Good morning, and welcome to theJason Brawmat Real Estate Show. Hope everybuddy
is enjoying their Saturday as we diveinto all things of real estate. As
you may have expected. But oneday, I'm going to surprise you.

(00:24):
We're gonna come up with a differentshow. Keith. It's going to be
the show about nothing. It'll belike, what was that Seinfeld? I
was gonna say, Seinfeld was verysuccessful, very successful, and Dynamite was
about nothing. And some seem tolike that movie. Yeah right, that's
true. Yeah, So I thought, well, you know, hey,
if we get tired of real estate, and you know, eventually we'll have
to change topics. So anyway,actually we I've thought about doing a couple

(00:47):
of different shows where we'll dig intomaybe some some specifics on real estate investing
because we have you know a lotof owners that would like to you know,
invest in real estate, a lotof potential you know, want to
be homeowners down the road. Butyou know the cool thing about real estate
is you don't have to live init, and you can buy that for

(01:08):
investment. So we'll probably do someshows on that down the road to just
mix things up a little bit asopposed to always getting the house ready.
But this week in particular, we'vegot a lot of your questions. You
guys, Actually, I actually it'skind of a record number of people that
actually either called into the office orshot us an email that had questions.

(01:30):
And we picked through as many aswe could to try to find some that
were you know, what we thinkthe masses would ask, or most general
questions, or if we have themmore than once awhere like, oh,
this must be something that's on theconsumer's mind, and so we want to
put that out there. And youknow, we had several of you that
said, hey, we're ready tosell, We're ready to do something different,

(01:51):
which is great. And then ofcourse an even more impressive number of
folks that reached out to us Keiththat want to buy a house, and
they many of them said, youknow what, we're we're not going to
put our life on hold anymore.The interest rate is the interest rate.
We don't like where we're at,and so it's time to make a change.
And so usually what I have found, even in really amazing markets,

(02:15):
bad markets, it doesn't matter whenthere is pain and discomfort. We tend
to make change. Yes, yesit is. And and we we tend
to when we get in these utopiastates of pleasure, tend not to do
anything we want to. Would youchange if if everything is going well and

(02:36):
you're comfortable, that's the reason forchange, that's right. We we we
want to, uh, you know, cruise down that lazy river a little
bit longer, if at all possible, because well we like those things.
But as we know, well nothingstays the same. Time is moving on,
things are changing, life is changing, all those type of things.

(02:57):
So we had, like I said, a number of you reach out about
buying. So that's cool, andso what are we gonna do. It's
you know, we're gonna dig intosome of your questions that we received.
We're going to do our best toget you the right answers or the answers
that we see in the market andor the answers that are happening in the
trends of real estate. To getyour question answered. And it doesn't have

(03:19):
to be on the air. Wedon't share every single question on air.
As a matter of fact, someof you put into subject line do not
ye and I'm nice, I don'tever like tell people the exact name and
who I'm speaking of. And believeme, it's kind of like you know
sometimes if you've ever set in churchand it feels like the pastor's just ripping
you, Like, no, there'sthree hundred other people in there, he's

(03:42):
you know, you know what he'stalking to all of you. That's that's
just you. Yes, kind ofthe same thing. So you can go
to the website as Jayson Ravelet realestate dot com or give us a call
the office five five three zero sevennine six. I do my best to
take all the calls that I can. I can't get to all of them,
but as many of them as Ican will, And of course we
will make sure that we get yourquestions answer, whether you call in or

(04:03):
go to the website. And withthat, my friend, let's dive into
today, all right. I thinkthis is a good question because we have
talked about recently kind of the ebbsand flows, about how home buying picks
up a little bit in the summerand around the holidays kind of you know,
slows down a little bit. SoBill and Pam wrote in with this,
says, Jason, we're considering downsizingin March. However, we heard

(04:27):
you say that fall and winter havebeen some of the best months to sell.
Based on your experience, should weconsider moving the time frame up to
say October or should we just waittill March as planned? Thanks Bill and
Pam. Yeah, well, greatquestion. And we do get this from
time to time, and so historicallyover twenty five years of doing this and

(04:50):
eighteen of them really where we dialedit in and really really tracked our numbers
and know where our business is comingfrom, and we learned a lot.
We have found that we perform exceptionallywell in November through February despite whatever is
going on in the real estate market. And part of the reason that happens

(05:11):
is because we don't stop our advertising, and a lot of real estate people,
agents, companies do. They knowthis is the slower time of the
year per se. If you lookat it on a graph, there's definitely
less home sold than say, Marchthrough August. And that's kind of when
they go all in. They goin on the busiest time of the year

(05:33):
and do almost all of their advertising, if not one hundred percent of their
advertising. I don't know. I'vejust found over the years of doing radio,
TV, billboards, all these thingsInternet. Whatever. The more consistent
you stay, it lifts you andit has us anyway, it lifts us
or keeps us consistent and study inthe slower time, so we don't have

(05:57):
a lot of the EBB and flowsthat. I think a lot of real
estate agents are a lot of youknow, real estate companies feel if that
makes sense. I mean I understandthat, you know, if you have
the choice, if you are pickingthe perfect time to move, you may
not want to move around the holidays. But people lose jobs around the hot
I mean, people lose jobs atthe end of the year. People are
forced into moving for other reasons.I mean, you know, life continues.

(06:19):
I mean there's going to be peoplewho need to buy homes and need
to sell homes still, even ifit wasn't by their own choice, That's
right. Yeah. I Actually theabsolute most, the highest motivation of any
buyer that I've ever worked with inall these years, are is really the
buyer that is getting relocated to thisarea. Yeah, and they're coming to

(06:39):
look at homes the third or fourthweek in November and they want our half
depend on who you ask that questionto. If you ask the husband typically
is we want to be in thehouse before Christmas. If you ask the
life, we have to be inthe house before Christmas, and they will.
They're motivated. And so because Christmas, guess what it is still every

(07:02):
single year on the same day.It's the one that doesn't move right.
And so when you get toward December, it's still December twenty fifth every year,
and yeah, when you don't planfor your Christmas budget and or you
want to be in that new homebefore Christmas, that deadline set. And

(07:25):
so one of the highest motivated homebuyers that we see a year in and
year out is that relocation person thatas far as our job's concerned, they
probably just want them here by theend of the year probably. But if
you ask mama that has the nestand the kids and Christmas, it's we're
getting in the house before Christmas period. You know, that's that and so

(07:47):
you know those are those are greatpotential home buyers. Obviously, you as
the homeowner would have to be willingto be out of the house for Christmas.
So it's a give and take onboth ends. But you know it
goes back to you, what doyou do consistently over a long period of
time. I think is really whatgives you the best, gives you the

(08:07):
best optics for sure. For us, it gives us the best optics of
knowing what's going on. And it'sjust a different motivation. Folks that are
typically moving in that time of yearare moving because of purpose. And the
purpose can be sometimes it can benegative, but a lot of times it's
positive. You know, need abigger house because the family expanded, or

(08:28):
we just got married or whatever.We need our own place, the job
or relocation. You know, there'sother things that happen in life. Let's
downsize what we are that are inthat downsizing scratching our heads as real estate
professionals is attempting to figure out,how can we repurpose the purpose homes that

(08:50):
are you know, nineteen eighty tolet's say ninety five, that are that
real traditional You've got formal dining room, formal living room, a den.
You know, you've got all thesecompartmentalized rooms that this younger generation is is
it doesn't fit the home lifestyle,doesn't fit necessarily the work home life either.

(09:15):
And if some of these homes arepretty big, I mean they're you
know thirty five hundred to fifty fivehundred square feet. Another interesting thing we're
seeing is not only the folks thathave those homes they want to downsize to
something smaller, but the millennial generationthat's now buying is not wanting that big
of a home. And so it'slike, wow, you know, we've

(09:37):
got a lot of houses in thetriad that fit that thirty five hundred does
say five thousand square feet, andthey're becoming less desirable every single year.
This younger generation doesn't want the bigold house. They actually want a smaller
house and travel more. They wantto do stuff. They don't really care
about having the big Morgi that they'drather have a smaller home, smaller more

(10:00):
and go to Starbucks, you know, or whatever their favorite place is,
or go out to eat. They'rethey're not they're not wanting or willing to
give up some of the conveniences ofwhat they've created their lifestyle around just to
have a house. Just to haveX y Z size of house, if
you will, it makes sense.I've always I've always said jokingly that,

(10:20):
well not even jokingly, that unlessyou are very very blessed and very very
lucky, you can either have stuffor do stuff. Rarely can you do
both. You can't have everything youwant and do everything you want. You've
got to kind of pick that isthat is unless you're yeah, that's yeah,
I think that's I think that's prettymuch dead on, is we you

(10:41):
know, and and unless you justare printing money, right, you are
people, Yeah, there are,Sure, you have to make decisions.
You know, only only so muchfits in a finite budget. So especially
if you have a salary where youhave, like you don't have unlimited income
or unlimited earning potential. So youknow, a lot of salespeople do because
they're one hundred percent commissioned so they'renot capped. But if you know,

(11:05):
if you're in a job that pays, you know, seventy five thousand dollars
a year, guess what that's it. It pays eventy five thousand dollars a
year. That's what you got.That's what you got to work with.
Maybe you get some you know alittle bonus here and there, but you
know, that's pretty much where you'reworking or what you're dealing with. So
to go back to their question withBill and Pam, is it a good
time? Is it something we couldconsider. I will say the motivation is

(11:28):
definitely higher. I tend to findthat people that are higher MOTIVATD will pay
a higher price, and or evenif you're not willing to pay a higher
price, they will be more flexibleon terms to get the product. You
know, they'll be more in they'llmore inconvenience themselves to get into your home
by whatever that specific deadline is.So my thinking is, it's great there

(11:52):
are definitely less buyers, but thebuyers are more serious. Is there more
buyer activity March through August? Yes, But I will also say thirty probably
thirty percent, maybe even thirty fivepercent of those folks are doing all the
busy work of looking for a homeand they will actually never buy one,

(12:16):
though they will be more than happyto allow you to go out and show
them unlimited properties. And that's okay, you know whatever. They dream a
little bit, and some of themlike they're not in a financial position to
do some but they hope to.Well, you know, I was always
told, if you really want anice car, you should probably go touch
it and feel it and get thesense of it, and then set that
as a goal and maybe you canearn enough or save enough to get the

(12:37):
really nice car if that's what youchoose, but experience it if you will.
And I think that's what some peopledo, is they come out to
experience, like, Okay, let'sgo see new homes, let's go look
at houses. But we know mathematicallyone hundred percent of those people do not
buy. Sure, it's just life. So anyway, all right, what
else we got rolling in here?So I want to ask this question.

(12:58):
It came in and we've been doingthe show for a while, so I
feel like more often than not,I kind of have an idea what your
answer is going to be or whichway you're going to go. I have
no idea how you are going toanswer this question. So here we go,
says mister Bramblet. I listened tothe show on Saturdays, and I've
had a question about buying or renting. I think long term buying makes sense.

(13:22):
But he also wants to start abusiness and feels that the money would
serve him better invested in the businessthat he's getting started as opposed to owning
a home. I'm twenty four,just starting out. The question is should
he put his money towards starting abusiness or should he rent for a little
while and put his money towards startinga home. His name is Asher.

(13:45):
Asher all right love the question?Yeah no. The answer to that one
yeah, well, and there's Iwould say, there's probably not a right
or wrong. So to me,this all this almost comes down to a
confidence question. Is askure, howconfident are you in your business that it
will actually make money? I thinkit's a plausible idea of the thing about

(14:09):
it, you know, it's likeokay, and so we dissect that business
model to business plan what makes themost sense. So if I can take
whatever, let's just say your downpayment on the house was going to be
ten thousand dollars, and so canI take that ten thousand dollars and will
multiply into x whatever that is downthe road to make more money or generate

(14:33):
more money or will it generate moreleverage? Could you take the ten thousand
start a business in which in twoyears you maybe are not as hands on,
and you have leveraged yourself through thatmoney. You've leveraged yourself through potentially
employees working for you, employees doingthe job in which maybe you started the
company under which gives you time leverage. Now you could certainly buy the real

(14:58):
estate and you know hope for appreciation, you know that it hopefully will happen.
That would be a plus. Sure, I think we look at the
type of real estate you're buying,and so I have a lot of people
that do not disagree or do notagree with me on this, But I
have said for years and it's truefor me, and I'm in the real

(15:18):
estate business. Folks, the houseyou live in is not a great investment.
It is called a liability because youare the one paying for it.
So as sure, if you dobuy a home, if you put it
on a balance sheet, it isa negative. It is a boat anchor
around your neck because it's you payingevery single month to maintain or keep that

(15:39):
house. It's the worst savings account. Knowing demand, it is the worst
savings account. No demand, itis, for sure. But you know,
if you ask Bank of America,they're going to say, oh,
it's the American dream. Well,sure it is compound interest. Breath,
it's been American dream because you're killingit on us over those fifteen and thirty
year mortgages. But I think theother way to look at it is as

(16:02):
sure you could still invest in realestate and still own real estate. I
just I would challenge you to considersomething different. Look at could you buy
a duplex, could you buy atriplex? Or could you buy a quadplex?
And the reason being is under FHAfinancing guidelines, a first time home
buyer can buy a housing unit thatis one unit a single family home or

(16:26):
up to four units, as longas you live in one. Up you
found, let's be sure, areally cool quadplex because he doesn't maybe still
need a lot of space, andhe lives in one and let's say the
other three. He gets enough inrent to pay for his mortgage. Therefore

(16:48):
he is zero based his housing nowit cost him nothing. College quadplex something
like that, and then they livein one and rent out the others to
other roommates or other people. Sometimesyou see it in apartments where people have
roommates under the same roof. Ilike to quadplex idea as sure, because
everybody has their own space and youdon't have people in the same domicile as

(17:11):
you. Right there, you're allconnected, but there's walls in between you.
Everybody's got their own kitchen and bassand all that. So that is
something for young folks starting out.I highly consider you taking a look at
that. You can still do anFHA loan, so you can still do
a very modest down payment, andas long as you live in one of
the four units, it qualifies underthat. And then if you can get

(17:33):
enough rent for the other three units, you could live at zero and take
your cost of living to nothing.You could take your cost of living to
maybe you're making a little bit ofmoney too, and so that would burn
your ten thousand dollars up. Youwouldn't necessarily have the ten thousand dollars to
start the business. But let's sayyou bought the income producing property and it

(17:57):
paid one hundred percent of all yourliving expense and you still have a job.
So how quickly could you recoup thatten thousand dollars you invested in that
if you had no mortgage, norent For most people, pretty quick And
so in a short amount of timeyou get the advantage of buying the real
estate, have a place to live, got income coming in. And then

(18:19):
maybe it takes six months, maybeit takes I don't know, maybe it
takes a year for you to saveanother ten thousand bucks. But now you
get the boast of both worlds.You got the real estate, and then
you also can start a business.Congratulations to Asher. I wish I had
my stuff together at twenty four likethat. I mean right, I couldn't
have bought a house or started abusiness at twenty four. I couldn't even
consent I want either one of that. When I yeah, absolutely, I

(18:44):
mean no, I was just like, let's see, I was married a
year, so I'm like survival modeat that point. So anyway, all
right, folks are gonna do this. We're going to take a quick time
out. You're listening to the JasonPrevnant Real Estate Show. We'll be right back