5-26-2013

Shane and Troy Go to Meteor Crater! / Almost a 2.5 hour show!

Hello Folks, this is Shane R. Monroe you’re in the passenger seat with me passenger seat radio. It is a may What is it may 28. For me, I don’t know. May 26. Sunday, Sunday Sunday and you are on my two and a half hour commute to the meteor crater. This is a special edition of passenger seat radio in the car with me special guest, Troy tulou. And longtime friend have listened he listened to the show more than like six months then you know all about Troy, you know of our exploits. So we figured we’d let the tape run while we took a two and a half hour trip up to the meteor crater up in Arizona, just outside of Winslow and we’re scarfing Arby’s So, for those of you who may have listened to the Jodi Arias, recap a few episodes ago that might be more funny to you. anyway um so yeah so I figured what the hell you know I’ve got all this syndication space that I haven’t been using for a couple of weeks let’s do a nice long episode Troy’s by right of scarf down this turkey ranch and bacon. Are you enjoying your roast beef and cheddar cheese sauce? Yeah, it’s my god area especially. That’s great you know what I really think that’d be hilarious if we can make that workout where basically we can all roll up to Arby’s and just ask for you know, free regular Jodi arias is at cheddar cheese sauce. need to add a cheddar cheese sauce? I don’t think you need your Jodi arias with cheddar cheese. Maybe not. I think that comes with its standard right? You know, like how you have to order something special if it’s not one thing or the other. But Jodi arias comes with cheddar cheeses standard and if you want red Ranch, you probably order that like three months three days out of the month depends upon the penicillin supply. So for those of you Tell you what, for those of you who are sitting at home listening to the show, which I don’t think many of you do, most of you listen to the car. But we’ll give you a periodic spot checks where we’re at. So you can pull us up and follow us on Google Maps while we’re driving. So Google, we it’s about 1137. Now local time, and we’re going to see just how long it takes us to get up there. Far more or less behaving, the speed limit, Google says it’s two hours and 43 minutes. We’re going to test that. See how accurate that is. And of course, Troy’s got a call. That’s okay. That’s how bad my job is. People got to call me at 1135 on a Sunday funday because they gotta know whether or not that house is available. Well, why would they just assume that you’re available? That’s the thing. They figure since I’ve got this business that I Available 24 seven, you see no other job does that I don’t get that. That’s one thing I’ve never understood about your job why people think they can just whenever, whenever they want to. It just break it breaks down. Because when someone out there like that in that real estate business thing gets a client, it all becomes about them. Right? Don’t care about anything else going on in the world. The fact that somebody wants to maintain a nine to five job doesn’t mean anything the most of these guys, I’m telling you, most of them are actually working like 1015 hours a week anyway. What? That’s right, and that 10 to 15 hours that they work. Expect everyone else to be working those exact same hours. And those of us who do our 40 to 50 hours a week like we’re supposed to right more or less eight to five on a Monday through Saturday, perhaps. You know, we had that different expectation where we can actually sit down and just kind of enjoy a ride. Your life but unfortunately we’re one out of one or 4% of the agents out there like that. And then the other 96% of them are out there doing their five hours a week and calling you up at 11:30am on Sunday morning expecting to answer your phone and I’m sure whoever that was was cursing My name for not answering the call. So wrong. It’s they don’t either. Right. So Troy’s in the real estate, if you didn’t already know or figure that out. But doesn’t seem like the greatest job. selling a lot of work. It is definitely a lot of work. But if you do it right, it’s pretty good. Unless the market falls apart, the whole world goes into chaos. You know, that happened a couple years ago. So how is the housing market for those who are listening, they’re into that sort of thing. Not for those that are into that sort of thing. It’s the same. I think it’s not the same all over the United States is weird. We’re all in the same exact same market where things just went to total crap. You can swear on here, okay, things went to total shit. Like about three, four years ago. And everything is just like bottoming out. But that’s what most people aren’t really aware of is everything is bottoming out. In fact, most of the areas have bottomed out like last year. So that we’re climbing. Most of that, like everybody I’m working with is like a first time homebuyer. They’ve never owned a home. They’re buying for the very first time. That’s where all the businesses are setting normal. No, no, that’s not normal. No, normally it’s half half people selling and half people buying and I’m like 98% people buying right now. A little bit The more money you make the same amount of money either way. If you do it right on the listing side, you’ll make a little bit more money. But for each deal that closes you make the same whether it’s a buyer or seller, let’s let’s put it that way. Okay, they’ll feel great, but it’s just gonna say the bottom out last year the people that are buying this year, they’re paying just a little bit more than the people that bought last year. So it’s turning around. So do you make more money because I was watching family guy or a modern family. And at one point in time, Phil showed this gay couple of house like 900 times. Did you see that episode? The game couple. Yeah. And he was trying to get the deal closed in the head and asked him to show him the house again and again. And at one point, he tells Claire something like they put 30% down it was worth showing it nine times. So does that mean if they put more money down, you’re getting more money yourself. You word for what does that word? No, no, but that’s that’s kind of like watching more games and picking out all the with all the crap that they’re talking about now there’s it’s got absolutely nothing to do with the loan is a completely separate thing from the actual purchase of the real estate. That makes sense. Yeah, then it’s only on the same for the buyer themselves. So you make money based upon what you negotiate with the actual seller, and it’s usually predetermine upfront what the amount is. Take us through that. We’ve got like two and a half hours and I’ve never really understood this process and yeah, alright, so. So I’m buyer x. And so I contact your further Okay, I find you on the web, I contact there’s a house I’m looking for and it says you’ve got the listing. Let’s start there who determines who gets what listing? Okay, so the way that this really, really works is that real estate agents, they take listings, and then they also could get out there and they actually advertise so that they can attract buyers to come in. When I’m attracting buyers, I’m putting every single listing out there. Some of them are my listings. But the vast majority of them are other agents listings. How do you get that listing? Just because the seller chooses you to sell the house? Yeah. Okay. Yeah, I go through my own marketing, I reach out, I get someone’s attention, I tell them, I can do a really good job, if you’re ever interested in selling your house and yada, yada, yada. Eventually, they call me and then I list the house, okay. And then I go out, I do my own marketing, I get the buyers attention through something clever. Then they come onto my website, they look around at the properties that I have, which is all of them, I got the whole database. It’s not just my listing, right? Sometimes they ask about one of my listings in particular, other times they asked about somebody else’s listing, but it looks like my listing or on my website. We all do that. That’s a common thing between between agents. So why would you choose I mean, other than just the numbers, right? I mean, that makes sense. The more listings you have, the more possibility of getting hit. But so why would some real estate agents choose not to list? Everybody in the world? Let’s see. And what does that mean? Let’s say that I’m a different agent, and I’ve got the listing, how does it help you to list it other than just getting the contact? It’s a, it’s kind of like going onto a car. lot, you know, the more inventory you have to look at, the more people are going to stop by to check out what you have. That makes sense. You’ve only got two cars, they can check that out as they drive by 30 miles an hour. So you want to be able to give someone a big, big inventory of properties to be able to look at the more you have to show them, the longer they’re going to stay, the better chances they have. I mean, this is all online. This has nothing to do with anything else anymore. It’s all a website. They’re browsing through your inventory online, their website, and they just want to find what they’re looking for. Make sense? Yeah. And that’s all about the marketing too, because when you’re advertising, I’ve got fantastic homes with pools or I’ve got fantastic view properties or I’ve got like the cheapest time on the market right now, you know, that’s the kind of thing that you put out there that attracts people onto your website and they start looking around. So what happens if they want to if they are interested in a listing that’s not yours? Do you just tell them? Well, that’s not mine, I can’t really help you with that. Or what do you do in real estate? The way that that works is I have my own listings that I list right and then it’s my responsibility to market those get people to look at it, sell that house, right. everybody else’s listing, I’m representing potentially a buyer for that property. So when I get someone who’s interested in looking at Joe blows listing, I say, Sure, let’s set up an appointment, we go out and take a look at the house and I’m representing a buyer now, and I can show anybody’s listing. Really, yep. That’s the way that’s the way it works in real estate. I basically can show my own listings, of course, and I’m being hired to sell those properties as quickly as I can, and there’s reasons why I can sell it faster than anybody else. Of course that force works. But on the other side of it, the buyer side I can represent any buyer for any property that’s listed on the market. So why would you do that? If it was someone else’s listing them? Because I have a pre negotiated commission that will come from that sale? Should I bring a buyer that actually purchases that house? Got it? So you’re gonna make money, whether it’s your listing or somebody else’s list? Absolutely. If it’s my listing, I could potentially make two salaries, because there’s a commission there for the seller. And then there’s a commission there for the buyer. And they’re usually about 5050. Interesting. Yeah. interesting how that works. Okay, so. So you’ve got, you’ve got your potential clients. Yes. Show them the house. Yeah. So, explain explain the process. I will give me a typical customer. But typically, right now, it’s the first time homebuyer so if you’re like a first time homebuyer, you really don’t know what you want right now, right. So the whole point If you have to look at it’s like going into a bar, right? Right, pick up a girl, you don’t walk in and just go out with the first one that you find, well, you might chain but but most people are gonna look around, see what looks right what feels right, they’re gonna want to you know, check things out a little bit. So that’s what a buyer needs to do when they’re first looking for a house, they’ve got to look around at a bunch of different houses, figure out what it is, first of all that they want, they know what they think they want. And first, that usually changes as they look around at all the different kinds of stuff, all kinds of different things that a house has to offer. So it almost always starts out that way. where someone comes to you because they get excited about wanting to look at a house. So you go out with them, you meet them, they look at the house, they’re terribly excited. And then comes step two, which is can you even really afford a house right. Okay, so that a phenom? That’s right, and they don’t know they think they know that sometimes this is a depressing part of the process for But once they get out, then you get a chance to meet them, then they got to submit some sort of an app application with somebody, a lender to find out whether or not they qualify and for how much they qualify. And most people when they got buy a house, go show a $400,000 house and their budget is like 1200 dollars a month. They have no clue what what their money gets them for the house. Trust me a $400,000 house goes for a lot more than 1200. Yeah. So they’ve got to get the perspective on all that kind of stuff. So that’s, you know, that’s, that’s that part. And then you just look at a whole bunch of houses, they figured out what they like and don’t like and then you have to do the mad scramble to actually get a house which is not as easy as it sounds. But so buyer, buyer x finds a house there, they’re actually qualified for enough monies. How far into the process already at this point a week, two weeks a month. It depends upon how big of a rush the person is. Sometimes people are just curious about owning a home. Other times people have a lease that expires at the end of next month, and they’ve got no place to live. Right? So they want a house. Yeah. So if they’re really highly motivated, then we’re probably about a week, maybe two weeks into the process at this point. So and, and then the next thing that the next step that they’re at is actually they found a house with one they were trying to make an offer on it. Unfortunately, there’s usually more than one person that wants to house right now. Especially when the inventory gets all like I was saying at the beginning, when you don’t have much to choose from, there’s a lot of people after the same thing. So there’s usually you writing an offer, plus three or four other people. So there’s a there’s an entire strategy built in how to actually win a property. When you have that going on. That’s why you have a real estate agent is to help you figure that out. Right? So, okay, let’s say a house list. It’s a list price of 400,000 Guess what? Is that what’s probably the bottom number that someone’s going to take for that house? I mean, let’s say that my, my loyal constituents listening to the show are looking to buy a house first time they see a $400,000 house, should they be paying $4,000 for that house, there’s two things that you want to look, it’s pretty simple, pretty straightforward. You need to look to see how long that house has been listed for, right? If it’s been listed for one day, then you better be careful. It may be under priced. Okay, so you have to look at that if it’s been listed for 65 days and it’s had three price drops. Then you know, that’s a different sort of a ballgame has it? Had they dropped the price massively over those 60 days? Have they done? Little thousand dollar drops over the 60 days? You have to figure out whether or not they can take a lower price, right? In this day. You know, people are like selling at the bare minimum. They’re just trying to walk away from the house knowing nothing, right? So they may not be able to drop the price. But you know, you gotta look at how long it’s been on the market. The next thing that you You got to do and this is when you know you have a smart agent that you’re working for is they’ll actually look at the real like in the last six months what that house or that similar of a house has actually sold for in that neighborhood over this past three, four or five months, right? So they can actually tell you what that house is really worth Most importantly, what it’s going to appraise for because you can offer whatever you want to on it. If it only appraises for $350,000. Then your offer a 400 isn’t going to fly unless you’re putting 50 grand down, right? When you’re probably overpaying at that point. So look at how long it’s been on the market and look at what other homes similar homes have sold for right in the neighborhood. If you do those two things, you’re never gonna overpay for property, you’ll know you’ll know what to offer on a house. So, so, okay, so you’ve got the house. The house picked out they qualify for it. Let’s say let’s say the house 400,000 that’s what they’re gonna pay. Yeah, it may be Pay, I don’t know, what’s a typical down payment on a house kind of depends upon the type of loan that you’re getting. Okay? So there are the standard sort of first time homebuyer sort of loan is called an FHA loan. You don’t have to be a first time homebuyer to use it by the way, but it’s a loan that set up to be three and a half percent down is typically what you’re going to spend with something like that. Then he had these more conventional sort of loans, and those are typically going to be anywhere between five and 10%. Down, there’s going to be the requirement now that’s if it’s a house, vacant land is a totally different thing. But if it’s a house, right, then you’re somewhere between three and a half and 5%. lets you know, if you’re a veteran part of the military, those guys have zero down loans. You look around, there’s always zero down programs that banks actually have zero down programs. That’s another thing when you’re talking to an agent, they’ll clue you in on the really killer programs that are available out there right now. That’s that’s their job is to market the programs. are available, right? The good agents will know, the really good golden nuggets that are available out there. And then the other is the part timers. They don’t know anything about what’s going on. And they just tell you there’s nothing available. Right? I was this a good time. We’ll segue here. So what makes it what’s what have you can you tell if you’ve got a really top notch agent? The first thing to look for is how much of their time is dedicated towards their real estate business? Right? Do they have a part time job? Do they have a full time job when they’ve worked somewhere else? Right, and then sell real estate on Saturday, right? Next, yeah, to get rid of those. For the most part, or the part timer, they’re not invested. They’re not watching what’s going on. They’re not aware of the latest and greatest stuff that’s happening out there. And therefore you’re going to be the most ignorant buyer in the marketplace out there. You’re not going to get any advantages whatsoever because your real estate agent doesn’t know what’s going on. The second thing to be able to look for is just on someone who’s going to sit down with you, and actually explain the process, if they sit down and want to educate you on what’s going on and what to expect, that’s an experienced agent, that’s someone that wants to get rid of all of the surprises, so that you can focus on finding exactly what you’re looking for. If you get a hold of someone who just wants to rush through the whole thing, it’s because they don’t know how they’re going to pay their mortgage next month for those are the guys that are the most scary out of all of them. So just, it shouldn’t feel rushed. It shouldn’t feel like it’s an anxious sort of a moment. It’s already anxious for you. Right? It shouldn’t feel anxious for that agent who’s supposed to be representing you. Yeah, if you got besides that, you just know who you’re dealing with isn’t a person that seems like they have some character? Are they talking about things that are helping you or talking about things that are helping them, right? You go look at a house, are they pointing out everything that’s right about the property? Are they doing what they’re really supposed to be doing and pointing out everything that’s wrong with a property because a good agent is going to help you avoid problems. You already know what you like. Yeah, they shouldn’t be telling you what you like. They should be telling you what to avoid or what to be careful on. Yeah. Okay so so I know there’s I mean pending bought a house myself I understand there’s tons and tons of a process so they find a house they like they they’ve been approved for the Okay, so how much do they have to be qualified for? If the house list for 400? Do you actually have them checked out for 400? Or do you have them checked out for less hoping that they’ll take they might take less for the house? Well, yeah, generally speaking, the way you go into it, you haven’t checked out for what they want to buy. Mine is whatever they’re putting down. Okay guys, believe it or not, someone will go out there by 400 and $400,000 house and there’s people out there with 200,000 to put down so they only have to qualify for 200 pounds. Got it. And but besides that, no, I, my philosophy is that someone is got their heart set on a house that is going to fall into that $400,000 range, the need to make sure that they’re qualified to be able to purchase in that range. I don’t that’s that can be really potentially very disappointing if they’re pre qualified at 360. And I’m showing them $400,000 houses and guys, if you go in there and offer $40,000, less than than what someone’s asking for, your what we call a lowball offer. That’s more than 10% of the list price gouging, that that’s significant. You’re a bargain Hunter, you’re you’re somewhat difficult to work with, to be honest, from a realist perspective, not impossible. You’re just very difficult and because you have a very aggressive need in terms of and that’s the other thing, don’t get focused on the deal. Don’t get so focused on how much money you saved off the house that you end up buying the Wrong house for yourself. I bet that happens all the time. So does its buyer’s remorse get stay focused on what home is going to make you happy to provide you with a day to day satisfaction of for yourself and your family. That’s where you should be focused on the deal that either happens or it doesn’t happen. The thing is, is it never hurts to ask. That’s what I feel like when it comes in and making offering a house. I never offer full price. But I always feel out the listing agent, the seller first right to see what I can get away with. And after doing this for a number of years, you get a feel for how they respond to your questions. I have a bunch of different questions that I asked that are meant to like slip under the psychology wire there and kind of give me some answers so that I know how to come in and how aggressively to come in with the offer price. You always come in low and you work your way up. You just don’t want to be offensive, right? But you need to make sure that you’re qualified for what it is that you’re looking for. Because you’re that’s disappointment city if you go in there and always think that you’re gonna find bargain hunt. Now who handles that piece of the transaction? who handles getting you qualified? Does the agent do that? So the agent, if they’re a good agent, this is another good indication, they’ll have a partnership with a lending firm locally that they’ve worked with, and that they should have closed a bunch of transactions with. If a real estate agent does refer you to a lender, that’s great. They should. You don’t have to take it. Right. But you, the first thing you should ask is, how many deals Have you closed with them over the course of the last 12 months? Got it? If they’re gonna refer you to a lender? That’s great. But ask that one question. And it better be more than zero, right? what’s the what’s the thought process on that just because they have more experience with them? They trust them. Yeah, the more the more experience that they have with working deals with them, the more they really know how good of a lender they are, right? If they’ve only closed two deals with them in the last 12 months, then they’re that’s just as many deals as with any other lender. They really don’t know how they operate or how they work. But if if they’re Like 2530 40% of their business was close to them last year, but and they’re the typical agent that closes at least 20 deals a year. That’s a real full time agent. By the way, if you want to qualify your agent, ask them how many deals they closed the last 12 months. If it’s anything less than 20, be careful. If it’s less than 10, then you need to interview more agents. But they should be able to refer you to a good lender to help you get started. And so if you don’t know anybody, at least that real estate agent is going to refer you to someone that they know gets the job done. Think about it in those terms was So now I’d be concerned as a buyer that if if somebody is recommending somebody to you that there’s some sort of a shady deal going on on the back end. You know, I’m getting my paws line for sending you to that Ria that mortgage broker the Yeah, so I mean, is that is that typically true or is it or is it really just, they want to refer you because that’s in your best interest? So here’s, here’s the way it really does work. Yeah, there are both shady operatives out there. Don’t ever Don’t let anybody tell you that that doesn’t exist. But there are a lot of programs in place that will shut down to everybody who is involved in this transaction is licensed through the state that they’re selling it right. And if anything comes up squirrely, they run the risk of losing their license. So everybody has to be very careful about no crossovers. There’s no such thing as a kickback call there’s not no that’s that’s what they call a respa violation and it will immediately terminate everyone’s license involved in the transaction. There are very, very strict rules on that not even the title company is allowed to buy doughnuts for the real estate company or the company. Seriously it is extremely tight for the most part when someone refers you to a partner of theirs it’s because they know they get the job done. Right and this is that’s in your best interest after the loan closed right? I mean, damn slide and you send into someone’s gonna Stein me around and screw with them. In fact, I get nervous when someone comes to me says Oh, no. We’ve got to Great realtor. All right, we’ve got a great lender. They’re the cousins, nephew of my daughter’s boyfriend, husband, whatever, you know, all of this stuff is like, Oh my gosh, because you know that the communication is just key. And a lot of times the lenders are exactly the same way. And people don’t understand this. These lenders might be working 1015 hours a week, and they might have a full time job for at Walmart, then you don’t know. So you can you better better be getting a referral from somebody who can say that they’re a good lender, they know what they’re doing to get the job done and get the job close. Because tell you from my perspective, I don’t care about any kickback. I just want to get my clients connected with a lender who I know is going to work their asses off to make sure that that loan gets approved, all the paperwork gets done and it closes on time. That is gold in the bank. As far as I’m concerned. I don’t want to die and I just want them to work hard. Make sense? Yeah. That makes sense. Okay, so So how long is that process? Got the house right? So now let’s say we’re where are we at the process? I found the house of my dreams. I’ve done a pre qualification a good to be good for the 400. Yeah. Now how long does it take from that point in time until we can get I can get in that house? How long is it? Okay? So if you happen to be the rare few and you’re a cash buyer, okay, that means there is no lender involved. That means there’s no there’s no all of this extra stuff goes away, you’re probably going to be able to buy a house in 10 to 15 days, you’ll be moving in, literally Wow. Because there is no lender involved. Right. Now, if you work for the county or you have a government position where your paycheck and your payroll stuff and you’ve been there for nine years and you’ve got massive documentation. It’s all very simple, very straightforward. Then your deal is going to be approved and done in two to three weeks. You’ll be ready to close. Nice. Now, let’s say you’re a truck driver and all your receipts are in a shoe box. And your wife travels with you, and so does your dog and you claim to claim your dog on your taxes as your business partner. Most of your income has come in under the table because you deliver a lot of, you know, strange odd rocket parts to be shady character, nothing. The point being if you’re if your income is really hard to document, yeah, if they can’t put into paper, the thing you don’t even have to have a bank account, for example, all all your transactions are cash. You may have an income, you may have a capacity to buy a house, but the lender is gonna have a really tough time documenting you. Yeah, so it’s going to take them for ever to figure that out. Because they’re going to be doing Excel spreadsheets and they’re going to be doing they’re going to go back over the 12 months, bank transaction history to try and figure out when you got paid and how much and that might be four or 567 weeks of trying to get everything pre qualified. Now Justin had this weird asked He had a hard time getting his house. And I think it was mostly due to the lender. And I it had something that they were asking him where he got $600 that he put in his account. Yeah. Is that? Can they even do that? So here’s, here’s the way that this works. And you got to bear this in mind. I’ve already mentioned that the lender might be a part time lender who works at Walmart, right? And you may not know this, therefore, you have to wait two days for them to be able to put in a couple hours on your transaction. Right? So that could be part of the delay. But here’s, here’s some a little inside information on how this whole thing works. To help explain this, the lender is just a salesperson, right? They’re charged with collecting bits of information from you like your application and your pay stubs and your bank records, your tax records and they gather all that together, right? And then they submit that to somebody called an underwriter. Okay, now the underwriter is essentially the gatekeeper. They’re kind of in They’re deep deep deep inside the the mortgage office Okay, far away from all of the salespeople, right, they get the documentation and then they spread it all out at a table and they do what they call underwriting the loan, which means they verify every last bit of documented paperwork that’s on that table to make sure everything looks good. The lender is a salesperson, they’ll try to squeeze any kind of shit through the you know, underwrite wire, they’re trying to get away with anything, the underwriter Their job is to make sure that isn’t happening. So the lender and this happens all the time will tell you right off the bat, no problem we’re gonna get you pre qualified. I’ve already pre qualified you which means that they want to word wrote a letter that said they’re pre qualified. Pre qualification letter knows that that’s real estate agents know that but a lot of people who are getting a house don’t know that right? They could be completely fucking around with you at this point. But when they send it up to the underwriter, that’s when the shit hits the fan. And they have to really be able to show that everything is real. And that’s when you get this this requirement that says, I need to have verification for why this month is $600. Why is this being deposited in this bank account? This is not part of their pay stub, this is not part of this. Is there some sort of undocumented income going on here? What do they care? They have to be careful because if anything is wrong with that loan, that mortgage company isn’t hasn’t got $50 million in the bank, okay to loan that’s not how a business works. Okay, they’ve got $5 million in their bank account, and they have to sell your loan to Wells Fargo or Bank of America or some other multi billion dollar company in order for them to really be making money on doing a pure mortgage. Okay, that’s where they’re making. All right, I buy that bank of america Wells Fargo Chase, those guys will buy that loan unless it is perfectly documented, and there are no red flags on it. But why is this $600 a red flag? I mean, okay, let’s say for example, that if you took that 600 and never, that they wouldn’t qualify without that miracle $600 right. Yeah. So who gives a shit whether that $600 is there because it could represent a debt? That money? Yeah, I mean, okay. $600 might be alone. And Margo, where did that money come from? Do you owe that back to somebody? Oh, it could be I could see it could be a liability. It could be a liability. On an underwritten loan, they even make $600 I’ll be it is a small amount does not escape the radar. They need to look for any amounts of money that they can’t account for that is coming in to make sure because it’s one thing to have a $600 2534 or five, eight grand, that seems a little bit more logical, but banks don’t work that way. Right. any money coming into someone’s account that has any significance to it has to be accounted for. That way they’ve answered question. question and it’s done. Interesting. Yeah. Okay. Well, I guess that makes more sense. It’s, it’s stupid. But you have to understand that the way these mortgage companies make business if they can’t resell your loan, that means they can’t make any more loans and they’re dead. They’re done. Right mortgage company shuts down. Crazy. Okay, so now there’s all sorts of things that happen behind the scene now, in the old days, I remember you worked for a title company. Like it was like late High School, early college years, right? Yeah. So what exactly is a title company? How does that work? You explained it to me, but my listeners need to hear. Sure. So title company is one of those deals that kind of came into existence and it’s that title company, it’s really title insurance that we’re talking about. They came into being, I don’t know 100 years ago, 150 years ago, probably, maybe even 200 years. I don’t know how long they’ve been around for what for a while because People would sell their houses or their land to another person. And you’ve always heard about, you know, selling someone a bridge. Right? Okay, if you don’t really own that property, you have no right selling it. Yeah, yet it happens all the time. 150 years ago, that was common Sam. Title Insurance is exactly what it sounds like. It’s insurance on the title of that land. And it’s a requirement from a bank’s perspective, or should be a requirement from a buyer’s perspective, or because this company says, we ensure that this transaction is valid. We’ve validated that the person who’s selling you their house is really the owner of that house, right? So here’s an insurance binder that says you’re good to go. Should you have any problems? Should it turn out that your fence is actually on the neighbor’s yard? Right? It turns out that there was actually an ex wife that needed to sign on the paperwork as well, or that it actually had been foreclosed. Or that, you know, just because that property was bequeath to this son doesn’t mean that we’re in three other sons that have legal rights to that property as well, john, and all this kind of stuff that you don’t even think about, right? You no longer have to worry about because you have title insurance, and they’re the ones that are going to pay out. Should anything like that come up. So they work hard to validate verify that the person who’s selling you the property has the legal right to sell you that property. Make sense? Yeah. And that’s strictly all title insurances. Now, the other thing that they usually do at the same time when they’re doing the transaction is called escrow services. Yeah. Tell me about that. Screw on understand that. Okay. So escrow services is having a third party. It’s just like when you go back to the Wild West days and they go in and they start betting the money. there’s a there’s a bank and there’s a bank or there’s somebody that holds the money. Normally, it’s in a pot in the very middle of the table because nobody trusts anybody and everybody that pile have money in the middle of the table is escrow. Okay? Okay, so everybody’s put their money into it. And then depending upon the rules of the transaction that’s going to determine how that money gets divvied out. And usually there’s a dealer that makes the determination of where the money goes. But you know, that the point is, is that there’s some control over that pile of money, same thing in a real estate transaction, because we may not have $400,000 to put on the table, but our bank that we’re working with does have the $400,000 cash, right. Okay. How are we going to give that money to somebody and get the title signed back to us to make sure that we’re all good, while at the same time getting the mortgage paperwork signed, so that the bank knows that I owe legally that $4,000 now, right. That’s what escrow is all about. They’re hired to open up an account where the bank wire the $400,000 to escrow, right. The person who’s selling the house will come in and sign the paperwork better. The person who’s buying the house comes in and signs the paperwork there. The title company who’s also the escrow company usually will make sure that everybody is signed appropriately. No line got mess. Nobody wrote Mickey Mouse where they were supposed to actually sign their name, right, any of that kind of weird stuff that could happen once they back verify that everything is exactly the way it needs to be. Then they take the $400,000 got wired to them, and they take and they wire that dog to the seller. Or it gets broken up to what whoever they owed money to. And the rest goes to the seller. So they’re the ones that make sure that everybody behaves the way they’re supposed to. And they hold the money there, that third party. Okay, so because everything I know about real estate is either through you or from modern family. He mentioned that he made something called accelerated escrow. What does that mean? Well, the only thing that he could mean by that is that he’s just talking about we’re putting a rush order on this particular deal. And a rush hour means someone’s working on Overtime got someone who was supposed to go home at five o’clock is now working till seven o’clock so they can meet with this buyer and let them sign seven o’clock at night and make sure the deal gets done because if is everyone isn’t signed by 11am the next day then there’s not enough time for the money to get wired and all those little rules like that kind of come into play So Brian accelerating just means someone is saying rush and there’s usually an extra fee to be paid for them well of course what else would you expect? Yeah. Interesting watching some of your food I’ve been keeping you from your so uh you’re here on pasture seed radio I’m here with real estate broker mogul Troy tulou. From que ella properties. I don’t know what’s actually the name of your firm anyway. It’s a REMAX off. It’s a REMAX REMAX Yeah, that’s all anybody knows. Most of these franchise real estate companies It’s always REMAX or I don’t know what you guys have done here, let’s say century 21 or whatever. And then there’s a second name to it. Yeah, that’s how we differentiate ourselves between other REMAX offices and REMAX properties. But then there’s a REMAX advantage a REMAX professionals but but nobody who’s buying houses anything beyond just REMAX guys they should that’s the way the brand works right? So it’s a brand new thing. So we’re if you’ve just tuned in that is even worse. You’re not just tuning in you’ve been listening the whole time. Real radio. We are passing bloody basin road for those of you looking for a check mark as to how far along we are. That’s like the greatest name ever bloody basin road. There’s some sort of Indian War out here. I wouldn’t doubt it. It’s almost as good as Devil’s panties from Comicon yesterday, looks like a hook over these mountains. We should have some budget in the woods on horseback just requesting the view so we can see the line across the top right maybe Be a team of horses pulling it the lorien you know? I was hilarious. Man, so true and I went to Comic Con yesterday. I’m gonna let him eat for a minute because I interrupted his sandwich. Silver trying to shove it in as fast as he can. before asking another question. Don’t worry, we’ll get back to real estate hour with Troy to Lou in a minute. I find fast I like a lot of people. I’ll like I’ll say where a lot of people who’ve listened to the show in the past have said, you’ve taken a topic that I didn’t really care about. And listen to you talk about it or explain it or discuss it. All of a sudden, I’m interested. I found it fascinating. Like one of my very first shows I didn’t get into she was running like three or four years. One of the very first shows I did was to talk about ferrets. And, you know, they’re sort of special, you know, needs in the exotic nature. ferrets and all that stuff. And a lot of you wrote in and said that was really damn interesting. And you didn’t know anything about ferrets usually care was a fascinating topic. So every now and then I like to delve into stuff. And who doesn’t want to know about real estate, the secrets of real estate. I’m going to get Troy to tell us all the old Secrets You guys are going to use to get the best deal on your next place. But we’ll get back to that in a minute. So yesterday we went to Comic Con. And this is Phoenix Comic Con, we didn’t go to San Diego over the big one is, but damn, I can’t imagine the San Diego would be any bigger or more rich than the one that we had here in Phoenix. absolutely insane. So look, I’ll go into some detail talking about it once right. So first of all, it was a three day event when it was a Friday, Saturday, Sunday deal. It’s still going on today. We elected to go one day on Saturday, which was enough for us but I could see how you would want to go more than one day if you didn’t want to be rushed. So we show up we bought tickets to the door 35 bucks for saying that. I thought that’s a chorus song. That was fun. Just past corison Yeah. Anyway, so so right even before we got there, first of all, I plan on bringing cash to these things because you don’t want to wait for any processing. I’m getting ahead of myself. So we got there we had to pay 20 bucks for parking, which sounds like a lot. It is intended as a special event, at least in downtown Phoenix, the sons of bitches jacking the price to no end. And I guess it’s 65 here, huh? All right. Thank you. Thank you to the car in front of me that reminded me it was 65 and not 85. I thought you’re trying to hit 80 miles per hour. I did. I think it almost went back in time. So So anyway, so we felt we actually got relatively easy parking sometimes it’s not that easy to park in downtown Phoenix during an event but it was fairly easy. It ended up being the cheapest parking I think we saw afterwards. We paid 20 and by the time the day was halfway through our live was $25. And everybody else was 30 $40 was crazy. So anyway, we parked in The outside it’s interesting because you can see exactly where the event is where the venue is because there’s trails of cosplay people pilgrimage to Mecca and that’s no joke. I mean, there were you know, there were regular people knew they were the straights going to the show. But you know, we saw some you know, 10 year old kid dressed up in Spain. We saw girls dressed up a little you know, young girls dressed up speak at you all before we even got to the venue. So outside the venue, or are parked a whole bunch of famous sci fi type cars, right? Yeah, kit was actually a full blown kid. It wasn’t just the the exterior it actually had. It was one of the model ones that they called the camera once I think that had all of the display on the inside all in there. It was really cool that a car but the car wasn’t tricked out on the inside. It was just the exterior. And they had what an echo one would you do? It didn’t look right. There was something wrong with that Ecto one. It didn’t quite look like the one and Ghostbuster graphics weren’t right. Yeah, there’s something not quite right about it. Then they had some doctor who like, like almost like a Humvee thing. I don’t think that was actually in that show. I think that was just somebody took a car and dressed up generally from from Dukes of Hazzard they had a Jeep from Jurassic Park to get the Dory. And of course, the DeLorean was pretty cool. It was all tricked out that a hoverboard in the seat on the passenger seat. That was cool. That was that that actually one was done. Good. That one was done very well. And what else was there anything that was a hearse? I didn’t recognize where that one was from but there was a whole bunch of cars or some other things like that. They had oldster, they had a bumblebee of cars, that Bumblebee. Alright, so that was all before we even went inside right? So you’d have to pay a fee at SR that. So we got in that it was interesting, get a security check checkpoint yet actually go through and I Your bag searched and man do a very good job. I mean, if I wanted to hide him to stolen that bag, they wouldn’t have seen it. They were mainly patting down the girls. Yeah, of course and who would be so? So for those of you who may not know what Comic Con is, or you know what this sort of event is, essentially, it’s a shitload of vendors. A whole bunch of, let’s say, C to B list celebrities. There’s a couple of a list in there, but maybe more at maybe more at a bigger con. But so a whole bunch of people looking to for you to pay for their autographs and have pictures taken with them. And then they have panels where you get celebrities of whatever nature and stature for the show and you get into a room and you sit down and they tell stories about the show and you can ask questions, usually at the end. But a lot of it has to do with the cosplay, the costume play in the merchandising that’s going on. And so we went in and first of all, the place was Unbelievably packed. They said they were supposed to be 95,000 people there throughout the whole week throughout the whole weekend. So I think they all came that day I swear to God, they were all there on Saturday because I damn a lot of people. So we went in, and you’re almost assaulted if you’re not really used to the sort of things you’re almost assaulted with? Well, first of all, there’s hot chicks all over the place. Let’s get that out of the way. They’re all over the place. Some of them aren’t dressed barely at all, which is perfect. Some are dressed in outfits that are completely inappropriate. For example, we saw this short little blonde dressed up as bouncer. Yeah, that’s even worse than that make it worse. is worse because they shouldn’t be dressed like bouncer for one thing. So that’s there’s something strangely hot about that. Push. He was a very attractive girl. But, you know, so there’s all that sort of thing going on. So you’ve got that then you’ve got people that are really really into the characters, right? We had people that A bunch of predators and Bubba fats I got pictures of all this shit if you’re if you’ve circled me on Google Plus you’ll have opportunity to look at the album you’ll understand all these things we’re talking about but we went in in that so we had to go we actually had to go buy tickets Of course we should have probably bought tickets ahead of time but whatever. It did allow us to get some extra view of the scenery waiting in line. But anyway, so we got the tickets you get your little badge on a lanyard and out you go and you don’t By the way, are you about ready to fire your rockets on the car in front of us there’s a fire on my shirt if you’re trying to get within distance of grappling. grappling hook kid trying to write is asking what gets his ass over but he’s not taking the end but just give give a little bump him a little rub. He didn’t hit you Sonny rookie Robins racing term Breton’s racing was the guy that played with Tom Cruise on that boat was that who was the Coach in the pit guide he’s gone gotten 60 seconds with I don’t know what his name is. I can’t remember who it was an old veteran guy. Yeah, you know? Yeah. That was from Days of Thunder singing Born on the Fourth of July but that didn’t fit No, not quite. Right. All the all the other all the other Tom Cruise vehicles, literally and figuratively. Yeah. So yeah, so anyway. So let’s see we’re about nine miles from the 169 Junction update on our progress. So anyway, so we went in there and this place is just immense. It’s almost like for those of you who’ve ever read the myth adventure books, the bizarre on diva that’s exactly what if I right right. Perfect, perfect. Shame on you. If you don’t know that reference, because those are great books right down to the aliens lock. Except for the instead of being very pushy. In shady the vendor, merchants were actually very nice. The ones that we spoke, they weren’t even that creepy. They weren’t creepy. Some of them are actually downright hot, depending how they were dressed. Here’s the fun thing. Here’s the best thing about, about these these Comic Cons, people who shouldn’t be in skimpy outfits, try it anyway. So there’s a there’s a piece of entertainment involved in that. But you know what, it’s okay. For some reason. Listen, if you take a little chubby girl and you put her in a really inappropriate outfit, and you put her on the street, nobody goes for that. That’s not that not that’s not that doesn’t happen and they make fun of her. And, you know, it’s not it’s not a pleasant thing. It’s like those. It’s like those things. I don’t want to sound ethnically motivated here, but yet those Mexican girls, they’re really fat ones that were those muffin tops where their fat is literally pouring out over the sides of their shorts. I look like a muffin. It doesn’t have to be Mexican girls. I’m in Arizona. Okay, I’m in Phoenix. That’s what I see. This has been introductory camping. You’re listening to brought to you by the eagle hand laundry. Your Eagle Smith yesterday. We’ll watch it. Okay, fine. I get the point. You’re not gonna move over. Over there. I think he’s pissed now he’s not gonna do anything. He’s gonna drop the hammer and make sure you can’t get around. That’s fine. Let him do whatever. At five six we made it I didn’t shy I stopped shy I can come back down. There we go. So anyway, Where was that? Oh yeah, muffin top. So anyways, so um, so But the great thing about the company is even if you are that, you know, Buffalo Bill few your prospect girl by the size 14, and got to talk. There’s a place for you there. I mean, there were girls that it’s great because they they have no inhibitions and most of them behave. That’s the thing I thought was funny is that for the most part, fat chicks, I’m sorry if you’re fat, I’m sorry, I’m fat. I get away. If you’re a fat chick, and you go there and they tend to dress appropriately. They dress in costumes that are more or less befitting. There’s less chubby abuse going on in con, the Comic Con than there is on the street. That’s weird. Yeah, because you can get away with it. I mean, I could run around in a 300 costume. Heaven forbid there’s a visual you’re not gonna get I could run a racket. I would get away with it at a Comic Con. But you didn’t see any of that people actually dressed appropriately. I think everybody kind of knew there’s I guess there’s some etiquette to it. But I loved it because every It was such a comfortable place. It wouldn’t matter what you were wise if you wanted to go is the Grinch, right, people would have just looked and laughing would have been fun, right? Where Where else can you do stuff like you know, but the greatest part about it is is that I hate to say this because I’m a total nerd geek and deep inside, but when you go here, it’s almost like, I’m hope I get this. I mean, they’re people dressed as the most obscure characters ever. Troy found the most obscure one after one of the one of the girls was dressed as the super hot made from the first season of American Horror Story. And I had to be hurt. I mean, it had to be that’s how she had to be right. It had to be she had the red hair with it in the right bun and everything. Right. So it’s totally how obscure is that but you know what, despite just the obscurity level, somebody at the con probably more than just us knew who she was. That’s insane. I mean, you could dress up as the most obscure character and somebody There knows who you are. I thought that was great. I loved it. And I loan truly one of my greatest American heroes shirts. And here’s the odd thing. I would have expected to see at least 10 of those because it’s not like these are rare. I didn’t have these handmade or anything. There are companies that sell the red shirts, the greatest American hero logo on you get all over the place on the internet. I got my local that’s how easy they are to get. But for some reason, not a single person showed up in this other than Troy. But a lot of people recognized it. Awesome. So it’s interesting to be somehow unique. They’re like a millions elders and dozens of predators and a bunch of Boba Fett. It’s just one, one troll, just one. So we ended up trying to go around sort of a spiral type deal, but the hole wasn’t quite set up that way. So we went around 30 minute delays. Google lied to me. They tell me there was any delays, doing rock blasting, or do what are they doing that made It says maybe not during the weekend. So anyway. So yeah, so what along the outside first, then we started zigzagging back through. And it was it was really interesting. He pretty much unless you were me looking for two things that nobody would seem to be selling, which was I was looking for Trueblood stuff. My wife gave me a very specific things to look for because all of a sudden she wanted to get what she heard about it. It’s like, you know what, listen, you don’t want your wife tagging along with you at Comic Con. Not if you’re there to check out various costume endeavors. Even if that’s just part of your enjoyment, that is part of your enjoyment you will get caught. Unless you have a very understanding why. Or someone that just doesn’t care or one that doesn’t care. Or god bless you one that wants to look right along with you. Nice. Yeah, see, that’s that’s fantastic. See, that would have been my wife would have probably gotten in on a little bit of that. She’d probably He’s my silver bait. It’s like, Oh, I like that. That looks good. It’s like Oh, no. You’re tricking me, right? I hate when you do that. And women are always keeping you guessing. But yeah, it was really cool. It’s really busy. So this con was focused mostly on two different groups The Walking Dead, and Babylon five. So pretty much if you were a fan of either of those shows, it was like nerdgasm city because almost all I think all of the living cast of Babylon five was there, which is amazing. And then a huge set of The Walking Dead cast was there and I don’t watch Walking Dead. The only one that I wanted is Billy girl I would have wanted to meet from The Walking Dead cast. She’s apparently dead now. I hope I don’t ruin the show for you but I don’t even watch the show and I know she was dead. So is the one that played the doctor tank ready on Prison Break. You know, you know that if you want to prison right now. Yeah. Damn, shame on you. Anyway, Can’t remember her. Sara Wayne’s Cali or whatever her name is. Anyway, she was on the first couple seasons of walking dead. I would have interested interested in meeting her because she’s probably a bitch but whatever. So anyway, so we’re walking around and we’re trying to figure out here’s the cool part was almost like we’ll have celebrity because we were walking through the lines trying to figure out who was waiting in line to see Oh, so the two biggest names that I saw there were the two you know, two of the very few remaining Star Trek Cass was a hora and checkoff and altered Connie koneko whatever however you pronounce that phoning There’s no rush. No killer fitsum Yeah, so they were there. I didn’t see the one of them but I saw like Michael Rooker, he’s that’s cool. Harry kin from voice. I’m skipping that stuff. So I didn’t know where it was a USB You are just in that sentence that was that was there. I missed it. It was Jen must have been just Yeah. He’s like do check it out Terry Kim from Voyager. Now listen, my wife has a super crush on Harry Kim from voyage. I don’t even know the guy’s actual name. That’s really sad. And some kids I’m gonna call him Manson Kim. So it’s like, first of all, his line was really short, which I get because, you know, voyage was the most popular the Star Trek thing. I absolutely loved it. And it’s like, oh my god. This is the because I struck out pretty much on finding my wife the things she was looking for. If she liked more things, it’d be easier. But my wife is into two things. Trueblood? Which you listen, how was there not as loads of True Blood stuff at that convention to help me out? Yeah, I don’t know. I just seemed like one of those things that should have been like every booth. Been True Blood crap, but no, there was I found one frickin poster that was in there. My wife didn’t happen. And she’s into this Japanese RPG this ateliers series. I mean, she’s got like four games in the series on PlayStation three only, which might no one’s heard of it. And so she loves these games. She’s played these games, probably 20 to 30 times apiece. And it takes about, I think it takes like eight or nine hours per run through. But these games keep unlocking new things every time you play it, so she’s totally unknown. So she wants stuff from that. Now, apparently, this is hugely popular in Japan. I mean, if we were in Japan, I would have tripped over fucking atelier. dolls and comics and all that shit, but I couldn’t find a single thing at the con. I found one. It turned out she didn’t recognize it. But a little, little guy but and there’s probably a vampire conference we’re not even aware of. Yeah, there’s probably a whole probably a True Blood con somewhere that we don’t even know about. But anyway, so I was struggling I was struck out and then we saw instant Kim sitting there. Get nobody in line. And it’s like shit if I could get her an autographed picture from In Damn, so went up there. And this is not cheap man it was, it was 30 bucks for the picture with the autograph. And another 10 bucks then a picture with it. So I got my picture with Ensign cam, it’s up. It’s on the it’s on the album I posted on Google Plus. And the nice thing about it was is that instead of just giving me a signed picture, he actually personalized it to my wife. So it says to Christina Best wishes. Whatever the fuck His name is. So yeah, I’m a big fan, and you paid for his dinner and that I paid for I pay for his dinner drinks, but then I got Yeah, just dinner. So So anyway, that was a huge hit. And of course I called my wife and told her now here’s something interesting that I did not put together. When you put so many cell signals in the same room, they cancel each other out. I could not get a fucking signal out of there. All the vendors were complaining that there was too much activity going on, that they couldn’t get connected with their little card readers or with their point of sales. So they had trouble actually selling products but credit cards didn’t help it was in a sub basement. Yeah, yeah, it wasn’t you know. Yeah. So anyway so I thought that was interesting. I mean, I couldn’t get I couldn’t get notifications in or anything was really bizarre. But yeah, so that was interesting. So do I got the kid thing? We walked around a little bit more we saw who else was there? What else we do anything else? Is that pretty much the end of the car? I don’t know. We had more fun than that. We made fun of Dean Cain. He was just as iconic as an asshole. No wonder no one’s in his life. Yeah, and then we walk around the corner and there’s like 700 anyway, but she the guy that was on Lois and Clark Yeah, he was Superman from Lewis and Clark and like, how absurd how abstract how many people are waiting in line to see you He’s like, he’s like on the MTV circuit and he stayed in that like popular culture sort of I don’t know what he does. But I see him all the time on different things so he’s playing some game where he’s staying popular at least culturally important or something and I don’t know. Oh, no. I know the guy Paul McGrath but other than Lewis and Clark I didn’t watch that. So what are you gonna do? So yeah, we did manage to pay $4 for a small bottle of water that was that was pretty exciting some pretty amazing Lego setup. Oh yeah, that’s true. That was pretty cool. That was way cool Lego City and fields have like two loops in there all the little Lego to lift things and train sets and skyscrapers and what about a three foot by two foot Millennium Falcon. It was pretty cool. That was that was your right that like a thing was very cool. Yeah, that a like a fake Mos Eisley set up Yep, that gredos shooting it’d be like sit there for a photo op and it was essentially the canteen i think is what they were going for. And they had that whole booth set up and probably should have they could have done if they want to just turn that into a whole Cantina and allowed you to sit down and order drinks. That would have been pretty cool that would have actually been done. So we came up with an idea on our way, all the way in on the way home. I guess the idea for we were thinking about the concept of why would you not have a bunch of misuses sitting there that con to the booth where you could actually have like Princess Peach or Xena Warrior Princess rubbing you down. To me that seems like a no brainer. First of all, you’ve got tons of testosterone laden guys that are there to look at half naked girls does that mean that’s what at least half Oh, primate a good observation too. But I’ll get back to that. Why would you not have that booth set up where you can get rubbed down by some famous you know, comic chick seems obvious to me. And yet there was not. So more on that. pimping, a full on. That’s beyond the introductory, introductory lesson. Yeah, you gotta pay extra for that. So Troy made a great observation about the people there. You know what I’m talking about? I don’t want to spoil it by saying what it was no, no, go ahead. I’m not sure which one I found the audience. Oh, yeah. You get this general sense of, you know, a general sense of weirdness amongst the people that are there, which is fine. That’s great. I love that. I swear I love me. But I get this distinct impression that all of the male and all of the female stalkers actually in that room. You had all these guys that were probably very closet perverted sort of people. And then you had all the for Lauren, sort of hopelessly romantic women that were actually all in one spot. I think he pretty much had the All captured in one venue, there were all of them in one place. It would be a 2010. If you could, if you could visualize that it would be a 22 pound Twinkie, the weight 800 pounds. That’s exactly what no concentrated. This is a big tweak. And it was about an equal distribution. I say there’s just as many women there is absolutely 5050 at a minimum. Yeah, I’d say you’re right. But as your friend Justin would say it’s a lot of people who likely own snakes. Yeah, you’ve heard me talk about I’ve talked about Justin on the show a lot. And he he went through a time in his life where he dated a lot of strippers and you know, I think he’s probably dabbled into the escort area. But, but he said, Yeah, living the dream. But he said he has a lot of experience with these, these types of women and he has a distinctive ability to be able to tell who is a stripper who may have been a stripper who’s likely to become a stripper? And which person in the room might own a snake or lizard or lizard that he can actually tell you once once removed if they know somebody that has a lizard? And how do I know this? How do I know that this is just not his word? Because Justin, I worked together for five years and we spent a lot of time frequenting coffee shops and other places where these sort of women work. And we’ve asked, we went we got to this repertoire one time with this coffee shop. And there were three different girls that work there. At least two of the most snakes and one of them a definitely been a stripper. So I say, Justin, we walked we were walking back. He’s like that Chico’s a snake. And I said, How the fuck do you know that? He’s like, Just trust me. I know. So I said, we need to we need confirmation. He’s like, you go ask her. No, I got no fear. So you know, next time we were there, I said, I’m just curious your snake. I didn’t even segue into it. getting an answer you’re gonna get to know the slop would have been a good enough confirmation. And so it turned out she did not currently own a snake but she had just known one. And she is to listen. The guy’s story checks out. He’s good to go. So Justin, yeah, Justin made sure we pointed out to us. Various snake owners, future strippers in America. That did disturb me a little bit. Did you catch any of the really young girls dressed in the really sloppy outfits? Oh, yeah, that bothered me Just a little. I’m not sure why mom allowed those girls to go out to the My Little Pony costume. Right? Well, there was one. There was one little blonde girl. I mean, literally, I’m talking. Got maybe 10 and she was dressed in tight black leather. And I don’t think she was wearing any underwear. That’s how tight the that’s how tight it was. I’m going you know what, dude? Are you dad? Come here for a minute, buddy. Your job is to keep her off the fucking pole. not accelerate her progress, by the way, she’s supposed to be 15 1617 before you’re actually doing this with her not buying the costume for her that you’re supposed to be trying to keep her from sneaking out of the house Senate. That’s crazy. Yeah, there was. There was a few lines crossed there. I would say Yeah. There’s always the proverbial chick that shows up in the bikini for sure loves the way she looks in a bikini I guess. I don’t know why else. Now. Here’s what’s funny is we saw a few of those and not a single one of them. I mean, they weren’t bad, but not a single one of them. were like, you’re looking at that body was made for a bikini. You’re not going you know, if you ate a cheeseburger for lunch. You shouldn’t be in the bikini. You’re what I’m saying? Yeah, yeah. Sorry. When going in there to downdraft? No, they I was surprised. I didn’t know what to expect, but yeah, The ones that were in bikinis were Yeah, they earned that right. And then, of course, then we had a couple of slightly overweight Wonder Women that had tramp stamps now. I don’t know my Wonder Woman characters very well. I mean, I know Wonder Woman is Linda Carter from the 70s. TV show. I don’t think Wonder Woman would have a tramp stamp. Party, sir. You’re right. I think I’m right on that one. So yeah, maybe that wasn’t the right. Either. always tell the people that shouldn’t be in those costumes. Because they’re wearing body tights of skin color. I know. I’m going to venture a guess here. I don’t think they own a Wonder Woman costume because they were going to go to Comic Con right. Oh, no wonder woman costume because some boyfriend they had at some point really wanted to see him and I Wonder Woman costume. I think that Comic Con was the first debut of that actually going out in public. What can I wear to Comic Con. It’s your boyfriend make you dress Sup is Wonder Woman and tie you up with a magic last? Yeah. Oh my god. Yeah. Classic good. It was good. It’s all good fun, right? It’s all good fun. What my favorite are the women that are there to make you look at them? Yeah that there was a few of those there that’s for sure. Yeah, you know I think it’s funny that even nerdy girls need love to nerdy girls need love mercy fat chicks need lip teeth so wrong man. Like I said it was pretty well behaved. I mean, there were too many costumes that shouldn’t be worn. All of them I thought they were all great. I just I regret not going into costume. We were sitting there the whole time. So trying to figure out a costume you can get away with wearing this not super hot headed woman. She goes to balk at it, because he’s like six four. It’s perfect. Yeah, I can only imagine being in a Chewbacca costume. Nobody being able to see me sweat. Right so that’s, that’s good be splashing as I walked around. He would be filled with glistening fluids, right? We just got passed by an RV towing a car. What’s wrong with this line? Because there’s a truck in the line way ahead of us. Looks like it’s carrying pesticides. Pesticides, man. Yeah, that was surveying the area to see how many fat guys there were and what costumes they wore. Because you don’t have to kind of evaluate to see, you know, the only thing I could come up with that I might have been able to pull off in my size, maybe huncle. Oh, and I was thinking maybe I could do that. Okay. But you know what, that’s pretty obscure. I mean, that just makes me look like a tattooing farmer. So, you know, I want something that’s a little more decisive. So Justin came up with absolutely Perfect costume if you ever saw Family Guy Star Wars Peter Griffin dressed up as Lando Calrissian that’s me. I can be Peter Griffin. In fact, I have been for Halloween party a couple of years back. I’ve got the green pants. I can put glasses on. When I say land, land that’s not black and white. Actually, you know what have you seen Billy Dee Williams now I could definitely go with Lando. He’s made a few adjustments. He and Carrie Fisher going for the biggest possible weight gain since Star Wars. Did you see him on modern family? Oh, really? It was the greatest. So Jay drags them out to they get clarenville they’re trying to have like a romantic couples kind of weekend. You know, so he’s gonna take Gloria and Phil’s gonna take Claire and they’re gonna go to this. This place that he visited in Palm Springs like third Two years ago, it’s this frickin dump waterplace. But he has grand memories of it, right? So he’s trying to sell it. And so it ends up being that nobody wants to end up being around each other. And so they all split off. And Jay meets Billy Dee Williams in a card game that nice. He’s like, Oh my god, it’s Billy Dee Williams, you know? And he said, say something like, well, thank God. Somebody here seen something I’ve been in because these guys have never heard of me or something like it was really funny. So So of course, he wants glory in a meeting. Which is funny because glory is so young. She doesn’t know anybody. So he comes, he brings the rain in. He’s like, oh, you’re beautiful. But Hi, I’m Billy Dee Williams. And she’s like, Hi, I’m Gloria the wife. It was good led weddings to get It really is. Yeah. Shame on anybody that watching that hilarious they managed to slip some stuff in there that you’re not quite sure that get away with on network television and they do it really subtle. It’s just that I think it’s going to get a show where the writers are just a little bit more clever than the people that are doing what was that bad? Oh, I guess not. I don’t know what that means. I may throw in a little racial action every now and then he can’t believe they get away with that. Like, when the gay the gay guys brought home the little v er that was shooting enemies. Yeah, I think so. Yeah. They bring home their little Vietnamese baby. And while everyone’s cheering about it, Phil says they say that her name slowly and feel like you can’t even hear unless you’re listening for it feels like really isn’t that gonna be hard for her to say? It was like the You just say that. And then Jay calls are a potsticker. Another show he calls her fortune cookie. You know, what’s interesting about this show? It is it’s like one of the number one shows on television. And apparently, it has the most diverse audiences of any show on television. They get a little bit of everything going on. It’s weird. I mean, like, like, from a political standpoint, Democrats and Republicans both love that show. How do you get a show that’s so well balanced? They literally you could take, you know, ends of the earth audiences and they all watch invest genius. They’re very equally and fairly offensive to everyone. That way, everybody gets a little something out of it. Because you hear every now and then Luke makes a little political nudge. And it’s like it was just funny because Luke’s practically retired again. So every year, he throws a little nudge in there every now and then. Actually. So I think about doing a show with kids on it. There’s always a built in deadline, right to a show because this is the kids get older you lose a little bit of the chemistry. Yeah. And they have to do a spin off. No spin offs, no spin offs. We’ll do that Haley chicks like 24 years old. Yeah, that’s legal. Sorry, area winters, not for you. She’s only 15 or 14, whatever. Which is funny because Justin got me to watch that show by by showing me or telling me about the Halloween episode from season two, where Haley kept dressing up in the inappropriate costume. was awesome. She comes in that frickin Skippy Black Cat outfit. Check it I’m scary Black Cat. Claire’s like the only costume that person scares me go change. The Why? Listen, I’m saving you a whole day of guys asking you if you have a rough time when she comes as Mother Teresa when she was still hot into that nurse outfit, Claire asked when she’s at going after Kim, your Japanese businessman. Show is a clever ad show. I don’t even remember that episode. Oh, really? Let’s see it. It was season two, right? Yeah. Sounds like a classic. The one where the neighbor who was going to be their port Scarecrow. His wife left him and now he’s all this depressed and stuff and feel freaked out but he’s worried that he’s going to lose Claire now and such a great show and good stuff. All right, are we ready to go back to You real estate theater? Oh, yeah, absolutely. Right. So we talked about title stuff, I assume. See, I’m trying to think of. Alright, so, okay, I think we’re about Okay, so tell us about inspections. Yeah. So what is the What’s that? What’s that about? Okay, well, it appraisals, appraisals where it comes from. That’s a good, good two topics to talk about. Yeah. Because you have to think about these the right way. Basically, to think about these inspection is for the buyer, because the inspectors hired to find out what’s wrong with the house. So that you can make a decision on whether or not you want to buy that house based upon the number of problems that it has or so that you’re aware of what things need to be fixed or addressed. Once you’re the owner of the house. The appraisal is something that is done for the benefit of the bank. Okay, so the appraiser is going out there to make sure that the house is really worth what they say it’s worth in order to make sure that the bank is making a safe and They’re gonna loan $400,000 on a house that’s only worth 375. Right? Well, they better make sure that they have at least $25,000 downpayment going in make sense. Otherwise the bank runs the risk of having more money out than the asset is worth, they were foreclosed or screwed, right? So the appraisers for the appraisals for the bank, the inspection is for the buyer. And the seller just sits back and crosses their fingers and hopes nobody comes up with any issues or problems arise, their deal falls apart. But the inspection normally is the part that comes first. It’s cheaper, it’s usually going to run someone for a $400,000 house you’re looking at between three and $400 per new page who pays that that is something that the buyer pays for they paid to the inspector and the inspector is doing the inspection with the buyers best interests in mind. God that’s why the buyer is paying for them. So the inspector and then we’re usually about 10 days in okay you make an offer You get to this point where they call it mutually accepted non mutually accepted means that the buyer has signed an offer completely on what they’re willing to offer. And the seller has signed on that contract as well saying that everything that’s on that contract, they agree to everything that’s on that contract, the buyer agrees to that’s called mutual acceptance. You have about 10 days past that point for the buyer to go in and do an inspection. And they’re going to hire an inspection company, nine times out of 10. Sometimes the buyer has a really knowledgeable family member who’s like a general contractor or something like that, who will come in and do the inspections. So you can do one for free if you have the expertise at your disposal, although I wouldn’t recommend it. I mean, a third party person who’s paid to do it, who does inspections 10 times a month is going to be able to do a more thorough job than someone who’s a family member basis. Yeah, the inspector has six pages of checkmark things to go through. But no is that is that checkmark List something that the state requires no, no, that’s usually something that the inspection company develops on their own nicely to help them stand out as being super, super thorough, right? Because they’re trying to sell their services just like everybody else. Exactly. Exactly. So you’re gonna get a really thorough inspection within 60 point inspection. Yeah, exactly. That’s what they’re doing with the house now what they’re doing on the inspection, especially in this day in market where most of the properties are bank owned, vacant sort of properties being sold or these short sale things. We can talk about that a little bit. Yeah, I want to talk about short sale. Exactly. But so the inspection is something that needs to happen. As a real estate agent, what I really want to get out of that inspection is a good workable list for my buyer, so they understand what needs to be done on the house right. Now if in the process of that inspection, they determined that the foundation is crumbling and falling apart, the roof is shot. There’s, you know, vampire bats in the attic. Whatever it is, they come up with alligator pit alligator pit in the basement, that kind of thing, something that they want in my back out of right, then you know, they can do that, of course, I’m crossing my fingers and nothing like that comes up because, well, this is a transaction. And if I close it, then I’m going to get a paycheck out of it. So I want to make sure that everything goes well. But ultimately, the buyer has to be happy otherwise, that just that’s just customer service, right? But the inspection it’s usually takes anywhere from between two and four hours depending on who you’ve hired. You don’t have to be there for it, but it’s not a bad idea to be there. Well, how does he get your house out there? Or does he not inspect the inside of the house? He inspects the inside of the house, I usually make an appointment just like you made an appointment to show the house right? And again, like he’s, I don’t know, in my market, it seems like 40 to 50% of the properties are vacant anyway. Wow. Okay. Yeah, it’s pretty significant. that’s changing but that’s, that’s what you have to deal with. So they get out there and they’re gonna, a real good inspector will test every single appliance, they’ll run the dishwasher. cycle they crawl belly crawl through the crawl space from to all four corners. I’m not gonna be inspected right they’re gonna do a catwalk spider walk through the attic to look for any indications of mold or leaks or anything any possible problems going on. So you see that no, it was it was a fucking crow on top of this big dead fucking deer blows up on the side of the road damn I’m just gonna see fucking Stephen King walking you might have been hiding in the bushes fucking crow took down a caribou froze around here let’s see Randall flagship going good good stuff good stuff. I’m sorry. Yeah, so ya know the inspection is supposed to be for the buyer. That’s that’s what it’s there for so that they have a peace of mind or at least the honey do list or the things that need to be done. You’re Looking for really major problems with the house they see doesn’t work. Yeah, stuff like that. And sometimes if it’s owned by a real person, right, then on an inspection you can counter because you’ve made this prop this purchase. That’s when I said mutual acceptance, right? Part of that mutual acceptance was page 19 that says, By the way, I’m doing an inspection and if I find anything wrong, then I’m going to back out of this house and you’re going to give me my earnest money back. Oh, what’s your earnest money? earnest money is that deposit that you put down on the purchase of the house to show that you’re serious? Now the earnest money is there because because if you decide to just flake out and run away, the seller had to take their house off the market for those 30 days, right while you flaked around, and just messed up and cost them possibly another buyer, right? So they’re gonna keep your earnest money, which is usually between 1000 and $3,000. So you have a pretty good motivation to not be fucking around with these people. Got it. And that’s what the seller wants, right? The serious buyer, for sure. earnest money, ensure assures that it’s going to be a serious buyer, right? Well, the earnest money stays with the seller unless it doesn’t pass one of two contingencies. The good stuff, yeah, this is what you put into them initial offer that’s gonna have mutually acceptance to it. Part of it like page 19 and page 23. The first one is an inspection contingency. The inspection contingency says, If I find anything wrong with the house that I don’t like, I get out. You give me my earnest money back, right? Okay. They agree to that. The second contingency is always a financing contingency. So for any reason, you ultimately don’t qualify for the loan on that house. Right. You get your loan that will get your earnest money. That makes sense. Yeah. Two ways. Yeah, you’re only two ways. By the way, if you’re selling a house, there’s a difference between a pre approval letter A underwritten commitment approval letter as I said, they don’t mean anything guys. It’s just someone who opened up word, added their signature, put it on letterhead and printed it. That’s a pre approval letter. And letter of commitment is something that comes from not the lender, but from that lenders underwriter who’s already reviewed their package and already put God through all the little things that they need that $600 explanation thing. That’s all done. Here’s the commitment letter. When you’re looking at buyers and you’ve got three people who’ve made offers on your house one of them has a commitment letter. Really think seriously about going with the guy that has the commitment letter not in the pre qual. So anyway, let’s go back to the contingencies. You got the financing contingency and the inspection contingency. Those are the two built in get out of jail free cards. Good realtor will always include those in any offer that you’re making on a house. So what that inspection fails you’re out that generally speaking, you’re not doing an inspection because you turn out to not like the color of the carpet right? You can however get out on any reasoning that you determine is worthwhile getting out on so if you determine that too many of the eaves have dry rot or or any kind of reason that can you can get out on an inspection contingency but it’s really there to make sure that there’s not something’s really seriously major wrong with the house that you didn’t know. So what’s the what’s the just for fun? What’s the greatest thing that was wrong with the house that you’ve seen so far? The greatest thing that was done with the house Yeah, it was like that like holy shit. Who the fuck even tried to sell a house with that wrong with it? Okay, so in short of being built upon your Indian barrier, which I have had people who found out that someone had, like seven different pets buried in their backyard, which included I might add goats Pigs so basically had about seven or eight carcasses buried in the backyard. You’re not allowed to do that. You’re not allowed to do that. Not in town. If you’re burying a cat that’s one thing but this guy had farm animals buried and it’s okay yeah, so fortunately he disclosed it. That was nice. Nice yeah that’s pretty fucked up. Yeah, that was that was an interesting one. The part that comes up eventually is a lot of these types of these houses are vacant and you get under the beat them and you start inspecting them and surprises development like we find out that all of the copper plumbing has been removed from the bottom of the house Jesus. Seller didn’t know it. The buyer didn’t know it. But essentially all the plumbing has been stripped out of this house. Oh, my God. What a horror story. Yeah, that’s that’s for everybody. It’s a horror story because it brings up a screeching halt because no longer the seller didn’t know about it, right. The buyer didn’t know about it. If the lender can no longer even loan on the property because it has to be a structurally sound property, right? The good news was the plumbing. If you ever encounter this, bear in mind, plumbing is relatively easy to repair. And if it was stolen, that means it was easily accessible in the first place, right? Which means it’s easily accessible by a plumber to make the repairs, right? I’ve had the house where the plumbing stripped out and all of the electrical wiring was stripped out to because it has copper in it to cheese. The plumbing was going to run me about 1700 dollars to replace that if you’re talking about a 1400 or $400,000 house, that’s nothing right. That’s enough, the wiring is gonna run me 14 grand. How did they get the wiring out? They actually pull the sheetrock off the walls and so it gets it a lot of cases. Yeah. Now bear in mind what they’re doing. They go into the attic, where it’s open wiring right across the surface. Well, they go into the crawlspace and they find it there. They’re not taking too much time to go into the walls, although sometimes they do and Don’t get like eight pounds of copper and it’s like three eight balls I don’t know what it is all these are not really quote unquote professionals as much as desperate as high so so we got those occasional sort of experience yeah what other fucked up shit? Occasionally you find houses with broken foundations you got to watch out for that because sometimes here’s here’s where it really comes into if it’s a really normally code built home a cracked foundation is something that’s easily repairable but what you got to watch out for these homes that have had additions built onto them, okay, and what you end up finding out is that the addition number one never got a permit, right? Which means that it is not viable square footage, which means you’re gonna have to pay a penalty and a permit in order to make it legal square footage for your house. Wow. Yeah. And what you don’t know that until after the fact so you better be careful about that. The second biggest problem is is a do it yourself. have sort of a project. And sometimes they don’t even put in a real foundation. So what they’ve got is a five years situation that it’s gonna last for five years, and then it’s going to fall off the backside of the house is what’s going to happen. That’s why you need an inspector because they’re going to go in there and they’re going to recognize that kind of stuff, right and Dell red flag, whereas a lot of other people might not know it. Even your you know, your contractor uncle, who just so happens to build additions the exact same way to me. No, no, no, no, don’t, don’t take that for granted. So what happens in a situation like that if they have somebody that’s built on to the house, I mean, what happens then one of two things, one of two things, either the buyer is overwhelmed, because they can’t handle the notion barely handle the notion of painting a room, much like much less making repairs to a roof, right? And they just they back out and look for that truly move in ready house. Get the earnest money back, they get out on their inspection contingency. They move on and find something that’s easier for them to digest, right? Or you work with the seller. And sometimes you can ask the seller to make the repair. And they’ll say yes. And they’ll literally come in. And they’ll remove that addition that was on the backside of the property because you have to think about it this way. If they can’t sell it to you, what are the odds of them being able to sell it to anyone else right now that it’s been called out, they’re legally required to disclose that in their listing, that it has an illegal addition built onto it. So there are actually listings out there that say there’s an illegal addition built on it. Absolutely. Right. And the reason why it’s disclosed is because a deal failed. Interesting, so you better read all the fine print. Let’s Okay, let’s say for example, though, let’s go for crazy ass uncle aside. Yeah, somebody actually did it, right. I mean, they didn’t get a permit, which I’m sure happens all the time. They didn’t actually, you know, they didn’t go through the step work, but It’s actually like, it was it was done correctly. They had a foundation. Yep. It was built by a general contractor who happened to be their uncle. But the guy’s actually good. Yeah. So what happens then? I mean, what does that mean, then? The truth is, and I’m going to point out one extra item to that what you’re saying is, the truth is, is a lot of real estate agents don’t know. Right? And they’ll recommend to you that no, it’s illegal edition. This is a nightmare of red tape, you just need to back out and move on, right? The truth is, if you really love that house, give it an extra week, week and a half to close it that works for you. All you have to do is go down to the county office and file the permit, buddy file permit if you’ve already done it. It happens all the time. So it happens in the works already completed your filing for a permit, and they’re going to send out an inspector who’s going to look at it to make sure that it was done right. No, it was done right. boom, done. Now, yes, it cost you an extra 250 or $400 To pay the permit fee, but you get the house that you really, really want. Interesting. Yeah. So it’s not like they’re gonna say that it’s not like there’s no way around that they can’t, there’s a way. So let’s see, could the buyer just say, I don’t care if it’s illegal or not? I love it. It looks great. My spectra didn’t say anything bad about it. I don’t care. Can they wait better is that? Well, the bank just say fuck that it’s illegal until you legitimize it. We’re not going to give you the loan. Well, here’s where the part two comes in. I knew there was something in there, right? The inspection is for the buyers knowledge, right? The appraisal is for the bank’s knowledge. The appraiser should be just as knowledgeable as your inspector visits the property he’s gonna find the same problem and tell the bank This is not a good investment because it has a really sketchy addition built onto it. That is not legal, right. Okay. So the trick really, you got two options there. You cross your fingers and hope the appraiser misses it. Which they do, really they do. And the key to making a house ready for an appraiser is to remove all evidence of problems. Okay, so if there if there’s a little bit of mold. Now I know that that’s a topic that scares people. And in Arizona, you guys don’t have that problem. But in other parts of the country, they have little indicator indicators that make for a bigger problem, right? And if you see a little bit of discoloration, and you paint over it before the appraiser comes, they might miss it. They’re gonna miss it. There’s not there’s no bite, they are gonna, they don’t want to find problems any more than you want to find problem is real. Right? So if you remove the evidence, they’re not going to find it. But with something like a legal addition, they’re more than likely going to find that and rightfully so they need to protect the bank’s investment in the property. That’s what they’re there for. Yeah, just because the buyer doesn’t care doesn’t mean the bank doesn’t care, right. So, the trick of course, if in your inspection You find problems with the property you still love the property. And any good real estate agent will actually keep with you no matter what you want to do. Right short of reroofing the house. Yeah. The trick would be to tell the seller that hey, look, the roof is shot we need a new roof on there for and the seller Believe it or not, is houses unfine Ansible with a bathroom, right? So he made really determined to come in and put a brand new roof on. He gets the new roof up there before the appraiser comes out. boom, done moved on to sales. It’s not about you can actually even schedule that for after the fact and it can be a conditional appraisal, right says yes, it passes, the appraisal funds, the roof was replaced, right? And then the seller does it at that point to gotcha. See a couple different times where that can come into play. But the appraisal is one of those things where you have to kind of cross your fingers and just hope that it works out. So there’s a there’s a all kinds of risks when it comes to appraisal either in an increasing market especially where a property may not appraise for the value that offered on it, we’re about ready to go into that kind of a market where prices are on the rise. Someone wants 190 for their house, but all the recent sales say 175, right? The appraisal is gonna say the property appraises for 175. And how do you get around that downpayment and a belief that prices are rising, right? That’s how you get around that. But those are those are the two things going on. That’s how an inspection works. And that’s how an appraisal works. And you just have to make sure that that you’re handling both and if you understand how both are worked and who they’re supposed to protect, right, then you understand a lot better, where you as the buyer need to be looking for your information versus where you need to be crossing your fingers and hoping the bank agrees with you. Or I do their check their appraisal. So okay, so I know you’ve done this before somewhere at some point, how much does it cost to sell a house? You know, it’s a really good question and it will vary to some degree. Now, the one thing that you want to do when you’re selling a house, and you’re interviewing real estate agents, you want to make sure someone understands, first of all, that the cost of selling a house is one thing. It’s very heavily dependent upon how good an agent you’re working with this, the worse they are, the more expensive it’s going to get to sell your house, the better they are, the cheaper and quicker it’s going to be to get your house. Make sense. So think about that. That’s why you’re interviewing an agent when they come in to sell your house and they come in, they bring nothing with them, they can’t even find a business card that doesn’t have a coffee stain on it. You better be careful, someone better show up to your house and lay out a marketing plan, right? That tells you exactly how they’re going to get traffic to your house. You know, all of that kind of stuff. You need to know that they have some sort of big strategy. Most agents that act as listing agents are going to have a really fully developed marketing plan for how they’re going to sell your house. They should be able to walk you through on a step by step process of how it’s going to happen. And it should, it should surprise you. It shouldn’t be something that’s like, yeah, yeah, it should be something surprising because that means they’re more on the cutting edge. Right. But on the financial end of it, they should also show up with something called a well, they call him a lot of different things and a lot of different markets. But basically, it’s a financial report that breaks down what your house what you’re going to get if your house were to sell for this amount. Does that make sense? Yeah, and it’s a financial report that’s pre calculated, we as a real estate agents have access to these tools. And basically, what it what it’s going to do is it’s going to break down. Usually I show up with like three different values. So if your house sells for this amount, it breaks down how much money we’re going to have to pay out for commissions. That’s your biggest expense normally, right is going to be commissioned, that’s going to be generally speaking, you’re going to start at around 6% okay 3% is going to go to whoever brings the buyer 3% is going to go who to the your agent that’s doing all the marketing for you. Okay, so you’re starting at 6%, you can negotiate that down. But bear in mind that a lot of that money on that 3% side for the listing agent anyway, they’re spending a lot of that money in advance on a lot of the marketing efforts that they’re doing for your property, right. So where you want to skimp is on the buyer side, two and a half. Now, as an agent, if I bring the buyer and I’ve also got the listing, I’m only going to charge you 3% Plus, I’m going to drop my fee down to 1%. The price you’re only gonna pay 4% so that there’s some things that go on in there and your agent, the listing agent should be telling you that up front, right, but they’ll give you a price sheet that breaks down all every single little cost, title costs. excise tax, should your state habit, commission costs, right on down to courier fees, any kind of little little things like that, that will break it down on the Bottom and even your mortgage payoff should be, wow. And then it’ll show you a bottom line. This is your takeaway money, what that will tell you is what the very smallest or the what’s the smallest amount of money you can accept for your house. And still at least breakeven, right? If you need 20 grand in your pocket, you’ll know exactly what your bottom line number is, in order to be able to walk away from that. And you’ll know when you’re negotiating, this is the bottom line a half or I really want to sell it I’m willing to accept a $15,000 deal. So that’s how you’re gonna know how much a property’s gonna cost me and it will, it’ll run most buyers somewhere between eight and 9% of your home’s value to sell it. That’s that’s a very rough way to figure out what it’s going to cost you to sell your house. What’s a good dump honey? That’s that’s pretty finite number. I mean, that’s something you can monkey with. Yeah. Now again, I’m coming at it from a state of Washington reading. And I know what our salaries are sales excise tax is 1.78% I don’t I don’t know what Arizona or Wyoming or California has. But right, your agent or an agent should be able to give you that that the disclosure statement that will actually break down the cost for him. They can’t give that to you then move on to interview another agent. Right. So, so what’s Okay, I think we’ve covered most of it. What’s the How do you? What’s the secret to finding an agent? I mean, other than actually, you given us some secrets to know. If you find if you go to an agent, this is what you’re looking for. Yeah. How do you get started finding the right agent to begin with? I mean, you go type in real estate agent, Phoenix, Arizona on Google. And then how do you start narrowing it down from there? Yeah, it’s, it’s a little bit it’s a little bit tough. I would say that. Your first and best resource is going to be personal referrals, right? I mean, people that you work with people that live in your neighborhood, make sure that you’ve at least explored That so that if you’ve know somebody that’s worked with a really good real estate agent, they can tell you exactly how the experience went. The number one complaint amongst buyers and sellers alike. number one complaint is always a lack of communication. You know, that makes sense. So every time you’re picking a real estate agent, the likeliest problem that you’re going to have with them, is not getting enough information from them on a regular and consistent basis. Right? Sometimes what you’re getting from them is nothing happened, especially if you’re trying to sell a house. Nothing really happened this week, guys, just the way sometimes it’s going to work out real estate agents. They’re not just working with you. In order for them to make a living, they have to be juggling 3456 times, you know, six clients at once. They have to that’s how they have to work to get money back. Right. And if a week goes by with no results, sometimes that agent is going to prioritize telling you that nothing happened right? versus getting out showing properties with a client who has to get out of their house by the end of next month. Right? Okay. So what you want to do is you want to interview an agent that can talk to you at some length with you about what their communication plan is. That’s good. I like that. If you ask them for a communication plan, and they give you a, well, I just like to keep everyone really well informed. That tells you something, right? They have no plan to communicate with you. We send you weekly email updates, we’ll call you once every two weeks. Now you want some semblance of a plan, and you know that they’re going to communicate with you, right? If they have no communication plan, and you still really like this agent, work out a plan of communication with them up front because it is going to be a problem, I promise you is going to be a problem. So make sure that they understand or that they prefer provided for you some sort of a regular plan to communicate with you and tell you what’s going on with your listing or some sort of a regular plan so that you know, you’re getting listings from them on a regular basis, if you’re a buyer, right, make sure that they have a cell phone number and office number, the ability to receive texts, and that they, you know, ask them a couple of key questions so that you know, and you’re confident they understand what a text is. Some real estate agents, I have to tell you are really behind the times from a technology point of view, make sure that they have a website and that they know what their website’s address is, and make sure that they you know, make sure that they seem like they’re plugged into their communication, their lines of communication, right? If they are, then you know that they have least open channels with you. Yeah, so and don’t be afraid to interview more than one agent, even if you’re just buying a house. Because I think just beyond communication is your comfort in working with that person. Right have to have a similar personality, they have to have a sense similar level of drive as you if you’re extremely motivated to buy a house and you’ve got to get something done and written up and your agent is Very, very laid back. Right, you’re going to have problems that I sense if the reverse could be true, you’re very casual, you don’t want to be rushed and you have an agent that’s got to figure out how they’re going to pay their next mortgage bill, then you’re going to have problems with that person. So don’t forget that there’s thousands of agents out there. Any one of them are happy to work with you. It doesn’t hurt to talk to more than one, right? So the agent interview is another key part of being able to figure out, you know, how to create a really good working experience with them. And third, you know, that maybe I shouldn’t list it last, but as take a look at who they’ve decided to affiliate with, because you have to look at some of the big brands that are around here. But kind of an agent affiliates with a big brand. They’re very mainstream. They’re plugged into very mainstream tools. They have access to the standard pool of features and abilities out there. That for the most part is going to satisfy what most people are looking for. Not only that, but they’re probably Given communication plans, or probably given marketing strategy plans, and a lot of it’s being paid for them, so they just have to plug into it. So these guys with the big brands really do have a lot of advantage as long as their full time. You when you’re doing an interview, always ask, Where else do you work besides real estate, right? That’s got to be in. In fact, there’s if you go search interview questions for real estate on Google, you’re going to get an interview sheet. I thought, that’s cool. You should do that. Just to ask if you had a list somewhere that I didn’t sign up on my website. But for those of you that don’t happen to live in the Seattle area, right, you might want to just google interview questions and you’ll come up with a set of those things, those they’re around. But that brand is really important because if you’re talking to somebody who has their own brand, and it happens to be the person that owns that brand like it’s Billy Bob Realty and you’re talking to Billy Bob. verified Billy Bob likes Billy Bob real cheap because Billy Bob really He knows how to make things happen, right? But Billy Bob’s gonna take care of you. Now, that’s a personality that you may or may not want to get hooked up with. Right, right. Now, Billy Bob does not have all of those resources that everyone else has. Maybe a clever agent, he may be awesome, he may have developed all this stuff, right? But now you’re gonna have to ask, because Billy Bob doesn’t necessarily isn’t necessarily plugged in. And maybe he’s just really cheap and doesn’t want to pay, you know, the brand fee that it costs to be with another agency. So what sort of I mean, let’s say for example, it’s a text book type sale. It’s, you know, it’s, there’s nothing weird about it. There’s a lot of people that want to sell my own house, or I want to go to a smaller agent, just because they think that it’s going to be a lot cheaper to do that. Is that is there truth behind that? I mean, well, you know, there’s an old adage and it says, you get what you pay for, right? Of course. Okay. So I for example, I charge pretty much full price 3% two and a half percent, sometimes depends upon what sort of marketing I’m gonna get into, yeah, but here’s the way that I look at it. If you for sale your home by owner, you don’t use a real estate agent at all, you’re still gonna have to pay a commission to whoever brings you the listing, right? Whoever brings you the buyer, if you’re not willing to even do that, I can promise your home will sit on the market forever and ever and ever. And if you’re not really, you know, all that motivated to sell your house anyway, then you’re okay. Right? That’s where you should be if you’re not really motivated, and you’re not willing to, you know, really interested in getting maximum money for your house, then sell it yourself, right? Because that’s, that’s pretty much what you said. But a good listing agent is going to be able to get you more money. They’re going to be able to stand up and negotiate faster and stronger than you ever could in front of someone else. And if you think that you’re an awesome negotiator and you no one’s gonna trample over you, you’re probably an asshole. Nine out of 10 sales anyway, because they’re just gonna walk away. That’s all right, right? Nobody else is an asshole. It’s probably you right? Yeah, so that’s the reason why people hire agents in the first place is they want someone who can detach emotionally, right? And actually negotiate and make it happen. You’re emotionally invested in your house. And if someone says, Yeah, but your sighting needs to be painted, most people are going to be offended by something that makes sense, right? You hire an agent who’s not going to be offended as you you may be on that one side, he does do touch up Tell you what, what if we touched up a little bit, they’re gonna make the deal happen. And they’re going to stop that negotiation from going up here to down here to down here to down here, they’ll stop it way up. And that’ll make sure to keep the negotiation really strong, you’re going to get ultimately, on average, more money for your house, it’s going to sell quicker and you’re going to have less problems with the sale process. That’s why you want to work with an agent and if you don’t need any of that, and you don’t care, then don’t sell with the real estate agents. Some agents will actually give you assigned to Put in your yard. And it has a call capture device built into the sign. You don’t list with them. But they’ll take any of the buyers that ultimately don’t buy your house, they’ll work with them. And that way you get something out of it from a real estate agent. Yeah, there’s little things you can do like that. But ultimately, you wouldn’t believe how complicated and emotional and how stressful the situation get when you’re trying to do it yourself. I totally believe it. And if you get ahold of an agent that brings you a buyer and he or she is a professional negotiator, and you’re not you like those odds? Because I can, I can promise you, I am really good at negotiating. And I’m not just talking about throwing numbers around. I will use psychology. I will use leverage. I will use everything at my disposal to get my client the absolute best deal possible. And I will use tactics you didn’t even think about I’ll get your wife and put her in the cloud. Children on your mommy I will do that. But cut off your wife’s little finger right right. You will, it will not know what hits you. And if you’re going to sell your house by owner, you might come up against one of those guys who have brought you a buyer and it’s not gonna be a pleasant experience and you’re not going to get what you thought you’re gonna get. So let’s say let’s we talk about Billy Bob or Jim Bob’s realty versus like a REMAX agent like you. Yeah, how much difference in cost is that going to be? Let’s say, let’s say again, it’s going to be a textbook sale. It’s a good hit that markets in a good place. It’s nothing is unusual. Billy Bob could probably sell your house. Okay. Let’s say that that’s the case. And I absolutely hate to do this because I’m really offended by the car salesman, sort of, right? But, but it really does bring my point. Okay, if you’re gonna go buy a BMW because you’ve got to own a BMW, we’re gonna go to the BMW dealership and you’ll say you’re gonna do one of those Pre Owned sort of certified BMW said, Yeah, okay. And then you go to Billy Bob’s BMW. Okay, okay. He doesn’t sell BMWs but actually For the two that are on the same race, thousand dollars less than the Pre Owned BMW is over at the dealership, right? Do you think they’re their same vehicles? Probably not. Okay. So based upon that premise, when you go with Billy Bob’s real estate company, you run the risk of getting a very discounted service and a very discounted product, right? He can charge one and a half percent to list your house because he really doesn’t do anything to market your property. Sure. A typical real estate agent, let’s take me and this is gonna be exposing a lot of stuff you probably never knew about a real estate agent. I spend between two and $3,000 a month marketing all of the listings that I have your listings, just my listings, two to $3,000 I spent another two or $3,000 out there trying to buy and generate lead traffic on the buyer hand of the business. I spend around six grand a month just driving my business traffic, right? Okay. Billy Bob might spend nothing, right? That literally is the case for 90% of the real estate agents out there guys spent zero marketing properties for buyers in a given month. I’m not kidding you. Then there’s the other 5% that do this for a full time living. They have a business, they have assistance, they have a staff, they have a real business, right? That’s what real estate really is. If your real estate agent works out of their house, and doesn’t have a brand and is doing a, you know, very slight sort of an operation, they probably don’t spend any money a month doing any business. It takes money to make money, right. In order to sell your house, you better hope you’re working with an agent that’s spending a good amount of money, driving traffic to look at your house rather than nothing. Rather than nothing. Nothing and Billy Bob There are a lot of Billy Bob’s out there that spend nothing on marketing your property. Okay? They just wait for the phone call or they just wait for you know, some sort of refer. Normally what they’re doing is they’re putting out an ad that says I’ll list your house for one and a half percent, right? That’s 500 bucks. That’s the limit and extent of their advertising, right? They only want your business now they’re done with you. In a really hot market. You might get away with it too. Right? Yeah, if there’s very little limited on the inventory that might be but I promise you it’s not going to get negotiated professionally right? I promise you there will be all kinds of paperwork errors, there will be all kinds of communication problems. There will be all kinds of delays throughout the whole transaction and buyers walk away. Right when stuff like that happens they walk away and just move on to the next property that they know they can close. Yeah, and Billy Billy Bob’s of the world have a lot of problems with that. Now the ones that don’t have the problem already have a good reputation, right. So there might be a you know a Billy Bob out there that is really well known has lots of listings and doesn’t matter. fantastic job, you will have found them through a referral. And you’ll know what you’re getting. But I can also promise you, they’re not going to have a discounted service, right? They’re gonna be the same price every day, ask me a full price as a REMAX agent or any other big brands sort of agency, because they do their job. Now your job as a buyer or seller is to ask the right questions to make sure they really aren’t doing what they’re doing. If you ask an agent what their monthly marketing budget is, and they can’t answer your question, it’s because they either don’t have one, or you’re suggesting for the very first time the notion of them actually spending. And they’re trying to process that notion of spend the money I’m here to make money. Yeah, so that could be a brand new concept for the first time. But that’s You got it, you got to approach it that way. If you don’t, then you’re really in over your head at all times. And you’re just kind of flying blind. And all you have to do is ask a few questions and you’re not blind anymore right now. Just like anything else. Educate yourself a little tiny bit. I’ll take you a long way in tests every single time. Alright, so there’s always the question, should I let the child let the bank foreclose? Or should I take some other action? I mean, you’re screwed. You lost your job. You’re three months behind the banks come knocking on the door. Okay? So get go into that. All right. So let me kind of start this conversation, this part of the conversation off with a little bit of a disclaimer, I am a licensed real estate agent in the state of Washington. And therefore, all of this conversation I’m going to kind of talk about in terms of scenarios. None of what I’m talking about is advice on what to do or what not to do, right? In the capacity of real estate. And so what I’m going to do is I’m going to talk about some of the experiences that I’ve had with different individuals who have gone through different scenarios in trying to deal with these situations. So I’m just recounting the stories. This is not legal advice, right. Okay. So I’ve dealt with A lot of people have helped a lot of people who’ve been found themselves in a situation where they’re no longer able to make their full mortgage payment. And there’s a lot of different reasons for that divorce, loss of job transfer, those will print maybe the top three reasons why someone finds themselves in that sort of sexual dysfunction. That led to the divorce, right? Well, yeah. That could be there. But that’s sort of a different conversation. We can talk about some of my experiences. If you’re looking for the sexually deviated part of real estate that comes at the very end, of course, because it’s right to keep you going. do have a couple of good stories of everyday. People find themselves where they can’t make their mortgage payment, they don’t know what to do, right. Okay. So let’s talk about what some of the options are. A couple of the options are to first and foremost, just keep trying, maybe things will change and then you get caught up in your mortgage payment. banks don’t want to foreclose. Right. All right, that’s not their deal. They In fact, it cost them a hell of a lot of money to foreclose on your house, right way more than it would cost than if you were to just sell your house, and then negotiate the price down with them. Right, which is called a short sale. We’ll talk about that. about that in a minute. Well, let’s talk about that in a second. First of all, you’re faced with not being able to make an informed decision. So should you let it go back to the bank, just walk away from the property, or should you try and do something else? Okay, letting it go back to the bank, this whole thing about you probably or may not have heard of deed in lieu. deed in lieu is something that used to exist where you could Hey, literally sign over the deed back to the bank and you were done. Right? They don’t really exist anymore, but banks will laugh if you talk about deed in lieu. They don’t want it back. That’s ridiculous. Let’s talk about something else. So they don’t want it back. So if you walk away from it, don’t make your mortgage payments, your credit is going to go just get started. 60 to 90 days on it, you’re going to get massive credit destruction on your property. Plus, and this is something you may not be thinking about. If you stop making your mortgage payment, it’s gonna occur to you. Why did I just stop making all the rest of my payments and just do a complete reset and flush the toilet? Right? All right, well, now you’ve gone down a path that’s going to affect you for I guarantee you at least seven years this will haunt you that if you if you do a complete flush like that, go the route of bankruptcy, it will affect you for about seven years before you’re going to be completely out of that. Maybe if you’re in a divorce, or one of those extreme situations, it’s the right way to go. Right. You might want to make sure you wait to your house has been foreclosed before filing bankruptcies, guys. Why is that? Because if you file bankruptcy, and all of your debt gets discharged even and your house hasn’t been foreclosed yet, the bankruptcy goes through this process where it actually gets discharged. Right right. Bankruptcy is done. And then your house gets foreclosed. And now you have a new debt, your bankruptcy and they go and sell your house for half of what it was worth and now you have a debt of that remainder balance and that bank and that now you have a bankruptcy and foreclosure. And now you have a double hit on your credit. So if you’re going to go bankruptcy, wait at least until your house has been foreclosed. So you get all of your debt captured in that bankruptcy. Okay. That’s not legal advice. That’s just something common sense. That’s it. That’s what most people will actually do if they’re aware of how this stuff works. What the bank really wants you to do is this thing called a short sale. Okay. That means you need to contact an agent who deals in short sales. Maybe 20% of that 95% out there have done something. All of the 5% of the professional real estate agents have done right some Then we’ll choose not to work with them. Okay, we don’t do short sales. They’re too complicated. They take up too much time, right? And then there’s the other, you know, three quarters of that remainder professional set. They say no, we do that, you know, we, we do one of two things, we either negotiate the short sale for you on our, on your behalf, or we’ll work hand in hand with a an attorney’s office that will do the negotiations, you know, I’m professional attorney level. And I’m intrigued now, okay, so I generally will do because they require a lot of work. I’ll encourage the clients that I’m working with, to work with my partner who’s an attorney who does nothing but or at least this division of his office does nothing but negotiate short sales. Now, this is something that has, if you’re short selling your house, you really don’t want to get into this. But if you’re not showing short selling house, it’s kind of interesting to hear about so right. So it’s worthwhile hearing about what we have to do when we short sale your house. We have to price your home at market. So let’s say your house is worth $190,000 because that’s what similar homes in your neighborhood have sold for the last three to four months. So that’s what market is paying. Yeah. Unfortunately, you bought your house five years ago for $299,000. Okay, so we had to try to sell your house for roughly $100,000 less than what you owe the bank. That is a short sale, because we are going to short the bank what we what you owe them in order to sell your house God. Truth be told it could cost the bank more than $100,000 to foreclose on your house. Really? Yes, it could. It could. The bank has a line in there. They know where to foreclose versus where to short sale, okay. Market Value says let’s say $100,000 is going to work for the bank, because it’s going to cost them that much money because they have 1900 homes in front of yours to foreclose on right, and they have to hire 15 people just to deal with this particular thing. Part of the problem, you can’t imagine the money they’re spending, I can imagine it adds up. So short sailing might be a good option for the bank. Well, we don’t know it first as your real estate agent, whether it’s acceptable by the banker, the bank doesn’t know either, right? So when we start to negotiate on your behalf, we’re going to need things like a power of attorney, limited power of attorney so that we can talk to your bank on your behalf, right? Because you don’t want to deal with them. You want to pro to death. Yeah, you want somebody does if you’ve hired us so that we’re going to deal with you and sometimes we as agents will go directly to an attorney, because we know attorneys are more effective. I personally believe that attorney is more often more effective than a call from a real estate agent. I’m not quite as scary as an attorney, right? Like, I like that. I like to be as scary as possible. In some respects, not not to the clients that I’m working with, but to everybody that I’m working with on their behalf. I like being a little bit scary sometimes so we use an attorney. The attorney will work with a limited power of attorney to work with the bank to discuss establish what it is that the bank needs in order to file a short sale package. They’re going to have to know pay stubs, your bank statements, all of this information plus a letter of hardship, all of these things that they need their untold checklist item. us as the real estate agent, the attorneys, we know about these checklists. We know what different banks want from their from their sellers. We know it says, Yeah, so this is pretty easy for us on your behalf to get all that information from you. You have to work with us, you have to provide it right. But if you do provide it, we’ll package it all up, we submit it to the bank for review. The bank will almost always do one of two things. They’ll either hire a third party real estate service to go out and do what they call a BPO. to broker price opinion to determine what the value of the house is. Some banks use full on registered appraisers to go out look at your house to determine what the market value is if your house they don’t want to make they want to make if you’ve got the house listed for 150 and they know that it’s worth 190. But they’re going to come back and say we’re reject your offer of 150 because houses at this type are going for 190 so a smart real estate agent is going to list the house at market to begin with and not quite low. I will warn you that in the past some unscrupulous real estate agents will list the houses for way below market and what they’re doing is not trying to sell your house they’re trying to develop buyer leads. Really they’re trying to get as many buyers to call in on that property so they can go work with that buyer to sell somebody else’s house and they’re using your house as bait. Got it. So don’t let them list below market the bank isn’t gonna accept it anyway guys, and you’re gonna get someone in there who thinks they’re gonna get it for 150 when the bank has no chance of ever accepting. Okay, so buyer beware always right. You got your house listed for market value the bank sends out appraiser establishes that yes, it is market value, they priced it right. This is a reasonable offer. Okay, so now you have a deal that the bank is going to say approved. Good to go. We’re willing to go with this offer. It works for us. Now you have an approved short sale. The problem is, is this process that I just summed up in four minutes, actually takes about three to four months. Wow, to do a normal sale bear in mind guys is about 30 to 45 days, four months for short sale because of all the red tape and all the houses in foreclosure. And all the houses trying to short sale out there creates a huge backlog and it takes a long time through to get through the system. So let me ask you this. Yeah, just the short sale keep you in the house during that period. Yes. Okay. Yes. So from a seller’s strategy short selling, your house will roll on your ability to be in the property because as soon as that real estate agent, even if they’re using an attorney Sue’s that real estate agent communicates with your bank and says we’re short selling it, it’s listed. We’re going to get an offer as quickly as five The bank stops all the foreclosure proceedings. Interesting. Yep. They’ll stop. And that’s one way to stop it. If it takes you a year to sell your house, you’re in. Yeah. Yeah. That sounds like that could be well abused. It can be but you have to about yet okay. It depends. Are you a short term thinker? Are you a long term thinker, the short term thinker will stop making mortgage payments, keep their fingers crossed, that the bank doesn’t change his mind and foreclose. Right. And then they might sit in their house for a long time, right. Okay. The long term thinker realize that they really don’t, unless the bank requires you to be delinquent. Right? In order to short sell your house, they might require that you’d be at least 30 days behind, right? So get 30 days behind on your mortgage, but don’t let it go any further than that. Your credit is negatively impacted by a 30 day but we all know that your credit is more negatively impacted by 60 and 90 days, right. I have a client that this last fall short sale their home and bought a house Then next month jam really their bank did not require them to be delinquent. Wow, they kept making their mortgage payment. They kept making their credit card payments. The bank has settled on the mortgage. And on the credit report it shows paid as agreed. Wow, yeah, it doesn’t say pay defaults as paid as agreed. But the lender didn’t care that it said that they stay current. They made all their payments. Someone actually short sale their house, and I got them into a new house very next month. So they got out of their radically overvalued home. But they were upside down in and bought a bank owned property. They actually have $25,000 equity in the day after they closed. Yep, that’s fucking crazy. Right? Here’s something even crazier. I had a client. I will not name names here, but someone that I know within my small circle, who was having difficult times making their mortgage payments with Jodi arias is actually very prompt with all of her monthly obligations, so throat slitting in the shooting in the head problem. Yeah, there’s some extended problems. Yeah, they’re close, but they’re your client that shall remain named. Yes, yes, yes. But what they did is they got behind on their mortgage, they had a mortgage and a second mortgage, which a lot of people do have, you gotta tell me how that works. I don’t understand how that works. Sure, we’ll get into mortgages here in a second. But they had a first in a second. It’s how they were able to buy their their property. Now, I guess I could tell you that if you put 20% debt in the house, you don’t have to pay this thing called mortgage insurance. And it could be anywhere between 60 and $200 extra a month on your monthly bill. So if you have 20% down, you’re going to get anywhere between a 60 to $200 a month of smaller mortgage payment. Wow. So I, this particular person did a 8020 loan, meaning they bought a 20% second and an 80%. First, they didn’t have to pay mortgage insurance on that 80% loan they did on the small. This is kind of clever stuff because the first mortgage lien holder only had an 80% investment in the home, right? Therefore, there was a 20% equity. So there’s no requirement for mortgage insurance on the biggest part of the loan. That’s pretty clever, clever, but 20%, much smaller amount meant that they were only paying an extra $40 a month for mortgage insurance on that one second mortgage. It’s really damn flat. It’s called an 8020. Guys, it’s a conventional loan, ask about it. You have to have a good credit score to get in. Of course. Yeah. So that’s I don’t know about if you’re below 700 then don’t then don’t worry. But here above that, then that’s it. It’s a good option. Good mortgage broker will tell you all about anyway. So they had this kind of situation so they were 60 days on there. Their primary mortgage linked, okay, they were five months behind on their second dam. Here’s another thing. The first lien holder is going to foreclose after 90 days, right? The second is in a very weak position, right? You can really fuck with them for a long time. That’s why this particular person was five months behind with their second. Okay, so what this person did this person who was in real estate, obviously, I know a lot of other realtors had done a few short sale negotiations. Okay, so they understood the process and how it works. So what they did is they decided to call up their second mortgage and offer a settlement. That’s what you do in short sale in a short sale deals part of the process. That’s really complicated, but that’s a much more advanced rhythm. That’s something only other real estate agents want to hear and I do classes on this stuff. But what you do is you negotiate at one point away the second mortgage So that you can settle the first right now the second is an extremely weak position. So you think, oh, you say, this particular person owed 80 grand on their second mortgage, because they had that $450,000 house. So they owed 82. The second mortgage, they were five months behind with them. They send in a letter said we want to negotiate a settlement on this mortgage, just like they were short selling. Right. Okay. They said, we’re in the process of short selling or half their house. They sort of fibbed about that a little bit. They weren’t right but second mortgage didn’t know early it was going on so they presented it that way. And yeah, they could have they could have short sale. We are turning on the meteor crater road Ladies and gentlemen, we are just a few miles from the big, big hole. Okay, so what they did is they offered to settle the second mortgage pulled their credit, saw that they were two months behind with their first mortgage. And granted this person stopped making all their other payments as well. Right. So they had really crappy credit. I mean, they were like below 500. They were they weren’t bad. So the second mortgage took this to mean, okay, this person is on the verge of bankruptcy. We’re about ready to lose 100%. Right. So $80,000 loan, what do you think they were willing to settle for? 6050? I would have, I would have said 5040. You think maybe half? Damn, I wouldn’t think they settled for $3,000 500. What? Yep, $80,000 debt. They settled for a cash payment of $3,500. Is that even possible? It’s not only possible, it’s common. What 4% is the average amount a second mortgage will get this individual did not short sale their house dude retired their second mortgage of 80 grand for a payment of 3500. Now you have to have 30 $500 to be able to do this right but settled on their second mortgage for 3500 Got current, but there’s first mortgage, settled on all the credit card debt and survived the market. Yep, that’s a crazy fucking story. Yep. And that kind of stuff is going on even now, the market is still in the dumper, there are still people out there doing that. I know this person did it. I know of at least two other people who started the process, and at least one of them made it happen as well. But these guys are scared. They want the maximum to get away with and this person discharged roughly $76,000 worth of debt, and then got Kurd with their mortgage and went on with a second. But that’s fucking crazy. That’s awesome. And for them, it really worked now, you know, they were more of a long term thinker. Yeah, they wanted to avoid bankruptcy. They wanted to they didn’t want the easy solution. They wanted to try and get through it and keep their house. Yeah. So they had kind of a long term approach. And if you have a long term approach, that’s something that is at least conceivable for how you might actually go through and do things. But short selling your house is probably your best option. Because not only does it especially if you don’t have a second mortgage to negotiate away, you might only have a first. But short selling your house gives you a chance to be able to buy a house. Even if you can’t do it right away. You’re qualified within two years. Any any lender worth or self with will be able to get you a loan within two years as long as you’re keeping current with everything else. Yeah, even if you lose your house on a short sale, you let it go to foreclosure. It’ll easily be five years, right? Probably seven because you’re not going to make your other payments either. You figure since I lost my house, I must might as well stop on everything. Right? That’s just what you know, you get caught up in that trap. So short selling the house. It just has to be professionally negotiated either a real estate agent who really knows what they’re doing or then partnered with an attorney’s office is going to do that. It is going to cost you a few hundred bucks. So The guy there’s a guy in Phoenix His name’s Russell shot, I’m positive this guy’s gay, but doesn’t really matter. You want to be your real estate deal. This guy’s really really sounds gang up, allegedly. Anyway, so he his one of his things is apparently he does short sales all the time. That’s his thing. And he says we will pay you to short sell your house. Is that what how? How does that work? How did they pay you to do it? Is it just clever money? That doesn’t make sense how they can pay you to do that. It is illegal for you to profit on the short sale of your home. So what they’re doing away with it? Yeah, commercial on TV. Well, he’s got some sort of semantic sort of plan where it’s allowing him to give you some money. I’ve also got a way for people to make a profit on their house now. Versus will the way it was before. He might be getting. Okay. So if you have a bank of america mortgage, if you have a chase mortgage, okay, both of those companies right now are offering a something called cash for keys. Which means you’re gonna get some money in your account. Now this guy could be either advertising based upon short selling your bank of america or chase property. Got it, he’s going to pay him. He’s not going to pay the banks but he’s going to open up a channel that allows the bank to pay you got it. If you’ve got a chase or bank of america loan, you’re actually up for some money, you should contact an agent. They don’t know what you’re talking about. Go to the next stage in your first bar. Just keep going until you find someone that knows you’ll find one. Yeah. But paying you for it to sell your home. On the surface is illegal. You’re not allowed to profit by the sell your house. Now if However, he decides to pay you $500 to do some of the marketing and the property. But yeah, that could be a different sort of scenario. Interesting. Yeah. And that, well, there’s two things here, either he’s not good enough in short selling houses that he has to pay his clients to do business with him. There’s got to be making some bank. He’s he’s got ads all over the place. People love discounts. People love this kids. Now making bank and having a big advertising budget don’t necessarily go hand. Right. You’re right. Yeah, you’re right. But But having said that advertising is what makes the business world which has me talking about him on my little broadcasts. That’s right, something’s working. That’s right. So discounts always appeal to people. He’ll pay you nice, General vague comment. Wonderful. You know that that gets you sucked in and then he hits you with the reality of what he’s doing. But now since you’re talking to him, and he’s an expert, in short selling your house, go ahead. I have a program that guarantees I’m going to sell your house in 90 days, right? I do. Oh, he loves to talk about how fast he can sell. Yeah, and I make a guaranteed I’m gonna get your commission back if I don’t sell it in 90 days, I’m giving your commission back. But the reality is I’m only giving a portion of your commission back that portion of it back, and I’m giving it back to you as a credit you do ultimately have to sell with me in order to get that money. And I don’t lie about once you come talk to me, I’m going to tell you exactly yeah, by the way, you can’t be short selling your house. You can’t own a manufactured home. You have to live within the city limits, right? That’s the way marketing caveats. This is the way marketing works, guys. And if you don’t already know that, then you know you’re need to be a little bit more aware of how things work. This is the way important. Doesn’t matter is we are we do know what we’re doing. We just need you in front of us so we can talk to you and explain to you what we have to go right but be careful of gimmicks. They are gimmicks. That’s fine. That’s that’s what I think of anybody doing something like that. They’re right to use protocol. I’m sensing some type of an arrival here we are here we are That meteor crater just outside of Flagstaff, Arizona. And what’s the time? The time is 155? I think we made good time. Nice. Question is we actually have a parking spot. I think I see one. Oh, that’s the way I like it. We didn’t actually keep track of what time we left it. But we It was 1137 when I started, we started recording So, okay, so it was just under two and a half. Yeah. That’s a quick two and a half hours went by quick. All right. This is going to conclude this segment of the show. I’m sure we’ll start recording on the way back because you have two and a half hours to get back. So just in case I do these separately. This is Shane R. Monroe pastor see radio. We’ll see you next time.

Transcribed by https://otter.ai

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