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What to Know Before Buying a Home: Hidden Costs, & Secrets to Save Big with Quiana Watson · Earn Your Leisure

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Speaker 2: We're back again, okay man, Yes, busy week, busy week.
2:00
Speaker 1: Work don't stop, so we don't stop.
2:01
Speaker 2: Oh yeah, so yes, very timely episode. As you if
2:07
Speaker 2: you've been following us, you know what we've been doing
2:08
Speaker 2: these how to series. The last one shot that Chris
2:11
Speaker 2: Saye was how to you know, start investing in stocks.
2:15
Speaker 2: We've done we've done one on real estate with Matt,
2:19
Speaker 2: We've done technology, artificial intelligence, We've done taxes, We've done
2:27
Speaker 2: how to teach your kids about money, variety of different stuff.
2:29
Speaker 2: So this one, we wanted to go back to real estate,
2:32
Speaker 2: but we want to take it from a different, a
2:33
Speaker 2: different lens. Last time we did like, you know, how
2:37
Speaker 2: to actually buy a home as far as like mortgages
2:40
Speaker 2: and the financial side of it. But we wanted to
2:44
Speaker 2: do the things you need to know before buying a home.
2:47
Speaker 2: So it's very, very, very important because a lot of times,
2:50
Speaker 2: one of the biggest things that I think people are
2:54
Speaker 2: not fully aware of or educated on is what actually
2:58
Speaker 2: happens after you know, you get an approval for a mortgage. Right,
3:03
Speaker 2: There's a lot of expenses, there's a lot of nuanced
3:06
Speaker 2: things that go on to play in you realize it
3:09
Speaker 2: when it's too late, and then it kind of you know,
3:13
Speaker 2: puts you in a tough spot financially a lot of
3:15
Speaker 2: times because you're not prepared or you didn't know, or
3:17
Speaker 2: you could have made out better if one thing was
3:19
Speaker 2: done better. So we wanted to have a whole entire
3:22
Speaker 2: live with this is going to go over the things
3:25
Speaker 2: that you need to know before buying a home. So
3:28
Speaker 2: you need to know all of these things because if not,
3:31
Speaker 2: then you'll be surprised.
3:33
Speaker 1: Yeah, I think one of those things is like again
3:36
Speaker 1: we wish we would have known. I think it's for
3:38
Speaker 1: every level. Right, if you're first time buyer, if you've
3:40
Speaker 1: bought real estate before, rules change, laws change, provisions changed,
3:45
Speaker 1: and so you got to stay up to date with
3:46
Speaker 1: this thing. It's not a game. And again, number one,
3:49
Speaker 1: it's going to save your time, but most importantly it's
3:51
Speaker 1: going to save you money, right, because sometimes you prepare
3:53
Speaker 1: to get the home and everybody thinks down payment, down payment,
3:56
Speaker 1: down payment, and there's so many other costs and nuances
3:59
Speaker 1: like you said that, you know that could throw our
4:01
Speaker 1: budget off and we won't even be prepared to have
4:03
Speaker 1: the home. Right we get that pre approval letter and
4:04
Speaker 1: it's like, oh, I can get this amount, not so fast,
4:07
Speaker 1: and so we don't know step by step today to
4:09
Speaker 1: help everybody get on the right foot. One gets it
4:11
Speaker 1: have in real estate.
4:13
Speaker 2: Yeah, so we're gonna we're gonna get into it, and
4:15
Speaker 2: we have a professional it's gonna walk us through it
4:18
Speaker 2: that's extremely qualified to have this conversation. One of the
4:21
Speaker 2: top when you look at real estate agents, but somebody
4:26
Speaker 2: has actually built the real estate agency and one of
4:30
Speaker 2: the top in Atlanta, one of the top in America.
4:32
Speaker 2: Keanu Watson who's been doing this for a very long
4:36
Speaker 2: time and has sold millions, hundreds of millions of boty
4:40
Speaker 2: dollars of real estate throughout the courture of her career,
4:42
Speaker 2: and like I said, actually has.
4:43
Speaker 3: An agency with other agents under her.
4:47
Speaker 2: So she's probably the most qualified person to speak about
4:51
Speaker 2: this from a real estate aspect, because that's the whole
4:53
Speaker 2: point of having some a professional helping you sell your
4:56
Speaker 2: home or helping you buy a home is actually they're
4:59
Speaker 2: supposed to be walking you through all this other stuff.
5:01
Speaker 2: So on one side, you have somebody like Matt who's
5:04
Speaker 2: at the bank who's given you the finances to actually
5:07
Speaker 2: buy the home. But then you have somebody that's in
5:09
Speaker 2: the field that's actually walking the property, that actually has
5:12
Speaker 2: to do the inspections, that has to you know, negotiate
5:15
Speaker 2: with the other seller or buyer and earnest money and
5:18
Speaker 2: all that type of stuff. So you got to hear
5:20
Speaker 2: from both perspective because it's important. So we're gonna bring
5:24
Speaker 2: her up, and before we do, don't forget You Deserve
5:28
Speaker 2: to Be Rich New York Times bestseller. You can go
5:32
Speaker 2: to You Deserve to Be Rich book dot com. Make
5:34
Speaker 2: sure you get your copy. That's vidally important for your
5:36
Speaker 2: financial journey.
5:37
Speaker 1: For sure.
5:37
Speaker 3: Good place is done, essential essential.
5:42
Speaker 1: Hey hey, how are you? We are great? How are
5:48
Speaker 1: you feeling today?
5:49
Speaker 4: I'm incredible, cannot complain. Life is good.
5:52
Speaker 1: I would never expect anything less from you.
5:54
Speaker 3: Keana for sure.
5:58
Speaker 2: So Keanu Watson friend of the show. She's done several
6:01
Speaker 2: episodes with us before live events invest Fest. You know,
6:06
Speaker 2: the Hope gambit. So somebody that has added a lot
6:10
Speaker 2: of value to not only your clients, but a lot
6:14
Speaker 2: of people online that have gotten information and inspiration from
6:19
Speaker 2: the real estate cyber Also, like I said, from the
6:23
Speaker 2: entrepreneurship side, as well as far as I know personally,
6:27
Speaker 2: a few people that actually have become real estate agents
6:29
Speaker 2: because of you. Yep, and not even knowing you, just
6:32
Speaker 2: just following your page.
6:33
Speaker 3: You gave them.
6:34
Speaker 2: Inspiration to actually become a real estate agent. So, first
6:37
Speaker 2: of all, thank you for joining us. Appreciate it, thank.
6:40
Speaker 4: You, thank you for having me. I can't wait to
6:42
Speaker 4: dive into this episode.
6:45
Speaker 3: Yeah, no, I feel like it's an.
6:46
Speaker 4: Important information they need to know. It's just so much
6:49
Speaker 4: information online. I think everybody feel like you can use
6:52
Speaker 4: technology and AI, you can chat, GPT, everything, but you
6:56
Speaker 4: really can't like when it comes to buying a property
6:58
Speaker 4: and understanding contingents, these financial obligations and all those details.
7:03
Speaker 4: That is not a googleable, that's not google information. You
7:07
Speaker 4: need to have an expert that can really walk you
7:09
Speaker 4: through those details in those layers. So I'm ready to
7:12
Speaker 4: share that and really set the record straight so a
7:14
Speaker 4: lot of people won't be so afraid of home ownership
7:17
Speaker 4: but understand the value and what to expect.
7:20
Speaker 2: You haven't, so all right, so everybody get ready hit
7:23
Speaker 2: the like, but share. Okay, So, as I said, you know,
7:28
Speaker 2: Keana is going to go. So how we're going through this,
7:31
Speaker 2: how we've been doing this is that you know, we
7:33
Speaker 2: have slides. Will interrupt the slides and kind of ask
7:36
Speaker 2: questions and then we'll just feed it off.
7:38
Speaker 3: Now.
7:38
Speaker 2: But I know that you put together a presentation to
7:42
Speaker 2: kind of go over what you think is important for
7:46
Speaker 2: people to know before purchasing a home. So I guess
7:49
Speaker 2: we could jump we could jump right into it.
7:51
Speaker 4: Okay, let's jump right into it. And this is just
7:55
Speaker 4: introducing myself who I am, what I offer. I'm glad
7:59
Speaker 4: that you went over that I do have a real
8:00
Speaker 4: estate company in Atlanta. I have at this moment twenty
8:04
Speaker 4: agents in counting that work with Watson Realty Code. We're
8:07
Speaker 4: here in Buckhead, and we also have great partnerships with
8:12
Speaker 4: developers or with a lot of developers to list and
8:14
Speaker 4: sell their properties. But don't be afraid this how this
8:17
Speaker 4: particular interview is all about first time buyers of people
8:20
Speaker 4: looking to purchase a home. I started my career off
8:23
Speaker 4: working with first time buyers and helping them navigate the process.
8:27
Speaker 4: So I want to make sure you guys understand that
8:29
Speaker 4: I have a training academy Agents who is for Success
8:31
Speaker 4: where I have mentored several thousands of people across the
8:36
Speaker 4: United States in outside of the country to really learn
8:39
Speaker 4: how to navigate the real estate world. And beyond that,
8:42
Speaker 4: I've gotten plenty of accolades for marketing sales recognitions. I
8:47
Speaker 4: do have my master's degree. I clearly understand business real estate.
8:52
Speaker 4: So I want to just kind of dive back right
8:54
Speaker 4: into this and jump into something that I want to
8:57
Speaker 4: say first, because we always asking what are the things
9:00
Speaker 4: like what should you know when it's time to buy
9:03
Speaker 4: your first property? And the number one thing that I
9:07
Speaker 4: think that most people need to know is before we
9:11
Speaker 4: just jump into it. Everybody does not qualify for down
9:15
Speaker 4: payment assistance just because you're buying your first house. All right,
9:19
Speaker 4: let's jump right into it. Things you should know before
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Speaker 4: buying a home. I personally feel like when you're buying
9:25
Speaker 4: your first property, you hear all these stories everywhere, and
9:28
Speaker 4: that story is I'm going to qualify for some type
9:31
Speaker 4: of down payment assistance, and because I'm buying my first home,
9:34
Speaker 4: the government are some big thing within the world is
9:38
Speaker 4: going to give me money. The truth is that is
9:41
Speaker 4: not the case. You do not automatically qualify for down
9:44
Speaker 4: payment assistance or any type of assistance just because you're
9:47
Speaker 4: purchasing your first home. You need to understand that these
9:50
Speaker 4: programs are designed for people that are in low come
9:53
Speaker 4: income to moderate areas. So if you are beyond that amount,
9:56
Speaker 4: or if you have more than a certain amount of
9:58
Speaker 4: money saved, or if your credit score is not at
10:01
Speaker 4: a certain place, you're not going to qualify. So, for example,
10:04
Speaker 4: I'm licensed in the state of Georgia. We have what's
10:06
Speaker 4: called the Georgia Dream. Most people look at the Georgia
10:09
Speaker 4: Dream and say, yes, I'm going to use this to
10:10
Speaker 4: buy my first house. Well, the minimum credit score you
10:13
Speaker 4: have to have a six to forty minimum credit score.
10:15
Speaker 4: You can't have more than twenty thousand dollars saved, and
10:19
Speaker 4: you have to actually have a you have to be
10:21
Speaker 4: in a low income to the moderate area, so you
10:23
Speaker 4: can't make above like sixty five thousand dollars in certain areas,
10:26
Speaker 4: and then certain areas you can't make above fifty nine thousand.
10:29
Speaker 4: So you have to really understand the qualifying factors for
10:32
Speaker 4: these to have down payment assistants. So when you're thinking
10:36
Speaker 4: about buying your first home, I always advise you to
10:39
Speaker 4: start with a real estate professional. We get a bad rep. Oh,
10:42
Speaker 4: they didn't show me the house, they didn't find me
10:44
Speaker 4: the house. But a real estate professional actually has relationships
10:47
Speaker 4: with a lot of different lenders, a lot of different
10:50
Speaker 4: brokers that can actually guide you when it comes to
10:52
Speaker 4: getting some down payment assistance, and then debunk that myth
10:56
Speaker 4: of if you qualify or not. If you don't qualify,
10:59
Speaker 4: then you should be in a position to start saving
11:01
Speaker 4: for your down payment and your out of pocket expenses.
11:04
Speaker 4: So when you're looking to purchase a home, I think
11:06
Speaker 4: it's important that you understand your out of pocket expenses
11:09
Speaker 4: and debunk the myth that somebody is just going to
11:12
Speaker 4: give you money to purchase your first home. If you
11:14
Speaker 4: do qualify, it's great, you should be able to utilize
11:18
Speaker 4: it to buy your first property. But if you don't qualify,
11:21
Speaker 4: don't be discouraged and get a better understanding of what
11:23
Speaker 4: you do qualify for. So that's just one of the
11:26
Speaker 4: biggest things I feel like I have to tell first
11:28
Speaker 4: time buyers. Sometimes I have people making over one hundred
11:31
Speaker 4: and fifty thousand a year, like, hey, I want down
11:33
Speaker 4: payment assistants from my first house. You don't qualify, So
11:37
Speaker 4: you have to position yourself to buy your first home
11:40
Speaker 4: and understand the importance of home ownership.
11:42
Speaker 1: Yeah, there's a piece then that that gets confusing as well, Right,
11:45
Speaker 1: Like what do I qualify for? Right? So the homelessit
11:49
Speaker 1: down payment assistance is one thing, But sometimes people get
11:52
Speaker 1: these pre approval letters and it's like, I'm a proof
11:54
Speaker 1: of four hundred thousand. That doesn't necessarily necessarily mean you're
11:57
Speaker 1: getting four hundred thousand. I think there's a common misconception
12:00
Speaker 1: happens around it. Can you clear that up for us?
12:02
Speaker 4: Yes, the common misconception is they will do an approval,
12:05
Speaker 4: but your approval has to depend on your loan type. Right,
12:08
Speaker 4: certain loan types will go up to fifty nine percent
12:11
Speaker 4: or sixty percent of your debt to income ratio. Some
12:13
Speaker 4: are going to go forty percent of your debt to
12:15
Speaker 4: income ratio. But if you understand how you want to
12:18
Speaker 4: live your life, most people have different You have different calculations.
12:21
Speaker 4: Like you, guys have you deserve to be rich, and
12:25
Speaker 4: I'm sure you tell them about how you may want
12:27
Speaker 4: to live about thirty percent or forty percent of your income.
12:29
Speaker 4: So if you're living off of that, why would you
12:31
Speaker 4: want your mortgage to take up forty percent when your
12:34
Speaker 4: mortgage needs to take up maybe thirty percent or twenty
12:37
Speaker 4: five percent so you can have the other remaining balance
12:40
Speaker 4: to do what to live and pay the utility bills
12:42
Speaker 4: and save and invest. So I would say, instead of
12:45
Speaker 4: focusing on what I'm approved for, make sure you guys
12:49
Speaker 4: need to get what is called a g FE. A
12:52
Speaker 4: GFE is a good faith estimate. When you're talking to
12:55
Speaker 4: a lender. You can go online and put anything online
12:59
Speaker 4: and they're shoot you out and approval. That's a pre
13:02
Speaker 4: qualification letter. They didn't take the time to understand what
13:05
Speaker 4: your debt to income ratio is. They did not take
13:07
Speaker 4: the time to have you submit your bank statements, submit
13:10
Speaker 4: all of your income that you're making, so they can
13:12
Speaker 4: really calculate what you are comfortable paying per month. So
13:16
Speaker 4: it's not about how much I can spend, it's how
13:18
Speaker 4: much I want to spend. So when you get a GFF,
13:21
Speaker 4: they're going to do an estimate of your out of
13:23
Speaker 4: pocket expenses. It breaks down your mortgage amount, it breaks
13:27
Speaker 4: down the amount of money you have to put down,
13:29
Speaker 4: the interest rate at the time, we'll talk about interestate letters,
13:32
Speaker 4: the interest rate at the time, and then it shoots
13:34
Speaker 4: out okay, based on this, this is what your monthly
13:37
Speaker 4: payment will be with the GFF. It helps you to
13:40
Speaker 4: avoid saying I'm approved of four hundred thousand, where you
13:43
Speaker 4: really need to say I'm ready to spend two thousand
13:46
Speaker 4: dollars a month on the mortgage, and this is how
13:48
Speaker 4: much I.
13:49
Speaker 1: Need to search for gotcha.
13:51
Speaker 4: So it really helps a lot. I think that so
13:53
Speaker 4: many people are thinking, I just got approve for this amount.
13:55
Speaker 4: A Linda will approve you for the MAC. That's their
13:58
Speaker 4: job is to approve you for It's your job to
14:01
Speaker 4: protect yourself and say I don't want to spend the max.
14:04
Speaker 4: I have a certain budget of what I want to
14:06
Speaker 4: spend per month, and then you go retroactive with that
14:08
Speaker 4: good faith estimate, and then your pre approval amount needs
14:11
Speaker 4: to reflect that, and you need to stay within that
14:13
Speaker 4: budget because you don't want to be house poor. So
14:16
Speaker 4: as we move on, I hope that really makes sense
14:20
Speaker 4: for you guys. Too many people are just thinking about
14:22
Speaker 4: the total picture and not understanding home ownership is designed
14:27
Speaker 4: for you to build wealth. But you can't build wealth
14:29
Speaker 4: when you're putting all of your income just directly into
14:32
Speaker 4: the property. So you have a lot of financial responsibility
14:36
Speaker 4: as well when it comes to being a homeowner. So
14:39
Speaker 4: when I broke that down, what is your budget? You
14:42
Speaker 4: know what your budget is. So if you're already paying
14:45
Speaker 4: rent somewhere, which most of you are, and if you're
14:47
Speaker 4: not paying rent anywhere, calculate what you want to contribute
14:51
Speaker 4: towards your overhead. Because you think about a mortgage, your
14:55
Speaker 4: mortgage payment does not include your light bill, it does
14:57
Speaker 4: not include maintenance, it does not include your water bill,
15:01
Speaker 4: it doesn't include groceries like it doesn't include what you
15:03
Speaker 4: need to live. So when you work on that, create
15:06
Speaker 4: a very comprehensive budget and don't go beyond that. Because
15:09
Speaker 4: you have to plan for the long term commitment. One
15:13
Speaker 4: thing I always say about buying a property that you
15:15
Speaker 4: have to understand the purchase price that you use to
15:18
Speaker 4: buy the property is stuck to you forever. You can't
15:21
Speaker 4: renegotiate the purchase price. You can go back and renegotiate
15:25
Speaker 4: what the interest rate is and refinance and possibly get
15:28
Speaker 4: a lower monthly payment. But the way that the economy
15:31
Speaker 4: is going now and the interest rates are going now,
15:33
Speaker 4: who can predict when the rates are going to be
15:35
Speaker 4: low enough to refinance. So always go into it the
15:38
Speaker 4: first time being very cognizant of what you want to
15:42
Speaker 4: spend per month.
15:44
Speaker 2: Okay, all right, let's go to you have a slide
15:47
Speaker 2: with some housing related exp housing related.
15:50
Speaker 3: Expenses, jump to that. So yeah, let's let's let's talk
15:54
Speaker 3: about that.
15:54
Speaker 4: Yeah, okay, guys, so let's just talk about some housing
15:58
Speaker 4: related expenses that you need to in. Right, you have
16:01
Speaker 4: your monthly mortgage payment, and your monthly mortgage payment includes
16:05
Speaker 4: your actual mortgage amount that you financed, the interest that
16:09
Speaker 4: you're paying back on the loan, as well as if
16:13
Speaker 4: you do if you have to pay private mortgage insurance,
16:16
Speaker 4: that dollar amount will also be included inside of your
16:20
Speaker 4: monthly payment, you have to pay your property taxes, which
16:24
Speaker 4: is considered your es growth and your property taxes. That's
16:27
Speaker 4: one thing that does fluctuate. Your property taxes is the
16:33
Speaker 4: one thing that fluctuates that most people do not account for.
16:37
Speaker 4: I saw this big thing on TikTok, so let's just
16:39
Speaker 4: dress this head on. People are like, wow, my property
16:42
Speaker 4: taxes went up. My property taxes went up so high.
16:45
Speaker 4: No one told me about it. Well, it's a fluctuating expense.
16:48
Speaker 4: And the reason that it goes up, it goes up
16:50
Speaker 4: if the value of the area that you purchased in
16:53
Speaker 4: actually appreciates in value. So let me explain to you
16:56
Speaker 4: what a value appreciation is. So you know, no, you
16:59
Speaker 4: may not like in these property taxes, but why it
17:01
Speaker 4: benefits you in the long run. If you buy a
17:03
Speaker 4: property for a half million dollars and in two years
17:07
Speaker 4: that house is now evaluated for six hundred thousand dollars
17:11
Speaker 4: five hundred thousand minus that from six hundred thousand, you
17:14
Speaker 4: have one hundred thousand dollars in equity. That means your
17:17
Speaker 4: home is now worth an additional one hundred thousand dollars
17:20
Speaker 4: from the time that you purchased it. So when a
17:22
Speaker 4: tax assessor goes back out to the property and assess
17:25
Speaker 4: your values, they're going to increase your taxes because now
17:28
Speaker 4: your home is valued at more. That benefits you if
17:31
Speaker 4: you want to do a couple of things. One, let's
17:33
Speaker 4: just say you suddenly need to sell your house and
17:35
Speaker 4: move to New York. You know you wanted to hang
17:37
Speaker 4: out with eyl. If you need to sell your house
17:39
Speaker 4: from it and move from Atlanta to New York, you
17:42
Speaker 4: put your house on the market. You have that difference
17:44
Speaker 4: in equity and you could actually try to make the
17:47
Speaker 4: numbers in the market sell it for six hundred thousand.
17:50
Speaker 4: After agent fees, you'll come home with probably seventy thousand dollars. Right.
17:55
Speaker 4: That is what equity is. That's why it's so valuable.
17:58
Speaker 4: But if you just hold onto the proper and in
18:00
Speaker 4: a couple more years you want to actually do a
18:03
Speaker 4: equity line of credit, a home equity line of credit,
18:06
Speaker 4: where you say, hey, thank my house is now worth
18:09
Speaker 4: six hundred thousand, I need fifty thousand dollars. Can I
18:13
Speaker 4: leverage this house and get fifty thousand dollars to start
18:15
Speaker 4: my own business? That is why equity is so important. So, yes,
18:19
Speaker 4: your taxes will go up because they fluctuate, but getting
18:22
Speaker 4: home equity is something you should be proud of as
18:24
Speaker 4: a homeowner who wants to buy an area that's not appreciating,
18:27
Speaker 4: that defeats the purpose of homeownership.
18:30
Speaker 1: So yeah, here's the question inside of that, right, because
18:33
Speaker 1: a lot of people will be doing renovations on their home.
18:35
Speaker 1: They're upgrading their home. Right, how often is the tax
18:39
Speaker 1: assessor coming? Right? Is it every six months? Is it
18:41
Speaker 1: one year, every two years? So that people can prepare
18:44
Speaker 1: because a lot of times people will allocate their budget
18:46
Speaker 1: based on what the property tax is. Now, obviously, as
18:49
Speaker 1: you do improvements, that will go up hopefully if you're
18:51
Speaker 1: in the right area. How often is that guy or
18:53
Speaker 1: that woman coming.
18:54
Speaker 4: They don't actually come out to your property. They look
18:57
Speaker 4: at what has been sold in the area. So you're
18:59
Speaker 4: thinking about a tax assessor. It's all digital. They're just
19:03
Speaker 4: looking at what has been sold in the area. So
19:05
Speaker 4: if your neighbor sells their property and they did some upgrades,
19:08
Speaker 4: it's going to affect you. They're gonna look, oh, so
19:11
Speaker 4: this house, actually this sold for seven hundred thousand. We
19:14
Speaker 4: have no idea what you did inside of your property.
19:17
Speaker 4: But what we're gonna do is say, now this area, now,
19:20
Speaker 4: this entire area is worth this dollar amount. So when
19:22
Speaker 4: these things happen consistently, the only time someone is going
19:26
Speaker 4: into your property, and I don't want to get to
19:28
Speaker 4: ahead of the game, is when you get an appraisal.
19:31
Speaker 4: You guys know what an appraisal is. So an appraisal
19:33
Speaker 4: will go into your property when you're ready to sell
19:36
Speaker 4: your property, or as a homeowner, if a home buyer,
19:40
Speaker 4: if you have so, if you're ready to buy a property,
19:43
Speaker 4: your lender will not give you any money. There is
19:46
Speaker 4: no lender in the United States of America that will
19:49
Speaker 4: lend you money without you getting an appraisal. An appraisal
19:52
Speaker 4: is a third party company. So no, you can't just
19:55
Speaker 4: say I'm calling my friend that's an appraiser and they're
19:58
Speaker 4: gonna come out and tell me what this house is worth.
20:00
Speaker 4: It's not how it works. A lender will assign an
20:02
Speaker 4: appraiser to your actual file. The appraisal goes out and
20:06
Speaker 4: they will compare the condition of the property that you're
20:08
Speaker 4: interested in purchasing to three other properties that have sold
20:11
Speaker 4: on the market. When you get your appraisal back, they're
20:14
Speaker 4: going to measure the square footage of the home, they're
20:16
Speaker 4: going to look at the condition, they're going to look
20:17
Speaker 4: at market conditions, and then they're going to tell you.
20:20
Speaker 4: If you let's say you placed an offer on the
20:22
Speaker 4: house for five hundred thousand, the appraiser is going to say, hey,
20:25
Speaker 4: this house is worth five hundred thousand, which is great,
20:29
Speaker 4: or they're going to say, hey, you got a deal.
20:30
Speaker 4: This house is worth five hundred and fifty thousand. That
20:33
Speaker 4: means you have instant equity. Or if they come back
20:36
Speaker 4: and say this house is only worth four hundred and
20:38
Speaker 4: seventy five thousand, let's just say that does happen. That
20:41
Speaker 4: means it's coming in below the actual price that you
20:44
Speaker 4: said you will purchase it for. That is your agent's
20:47
Speaker 4: responsibility to submit an amendment to reduce the purchase price,
20:50
Speaker 4: a copy of the appraisal, and advocate on your behalf
20:53
Speaker 4: to say they're not going to pay the difference, the
20:56
Speaker 4: lender is not going to pay the difference, and I'm
20:58
Speaker 4: only going to buy this property for what it is worth.
21:01
Speaker 4: So that kind of leads into why you need a
21:03
Speaker 4: real estate professional. A lot of times y'all don't understand
21:07
Speaker 4: the contingencies when you're supposed to get money back what
21:10
Speaker 4: you're supposed to do, and that's what happens with an appraisal.
21:13
Speaker 4: So all of that kind of leads into your taxes.
21:16
Speaker 4: But to further ask the question, yes, it is important
21:19
Speaker 4: that your home is praised that value when you walk in,
21:22
Speaker 4: so that way you can have appreciation and equity when
21:25
Speaker 4: you have in the instance you're trying to get out
21:28
Speaker 4: of it.
21:28
Speaker 1: Yeah, so let's talk about some of these other fees, right,
21:30
Speaker 1: because we know about the mortgage, some people know about
21:32
Speaker 1: the property tax, we know about homeowners insurance. But there's
21:35
Speaker 1: some other fees that wait.
21:37
Speaker 2: But before we go to the other slots. So because
21:38
Speaker 2: we didn't, we didn't. I just want to make sure
21:40
Speaker 2: people get that the whole thing. So can we go
21:43
Speaker 2: back to the Can we go back to the slot?
21:45
Speaker 1: Yep?
21:46
Speaker 2: So utilities is a big one because this is why
21:51
Speaker 2: a lot of people's using you know, different type of
21:55
Speaker 2: energy efficient things for their homes and that that that
21:58
Speaker 2: can save a lot of money, right, and even setting
22:01
Speaker 2: up utility a lot of times as a process, water, gas,
22:05
Speaker 2: all that type of stuff. And then of course the
22:07
Speaker 2: homeowner's insurance. But the homeowners insurance is vitally important now,
22:11
Speaker 2: especially you look at California fires, you look at Florida,
22:14
Speaker 2: you look at floods. So, okay, the taxes we just
22:20
Speaker 2: talked about that, that's important. The mortgage is pretty going
22:23
Speaker 2: to be straightforward as far as on the bank side,
22:25
Speaker 2: you shouldn't understand those terms. But this homeowner's insurance and
22:30
Speaker 2: the utilities can you can you talk about that because
22:32
Speaker 2: that's something that people need to really have an understanding
22:37
Speaker 2: of what they're getting themselves into before they actually.
22:39
Speaker 3: Get the home.
22:40
Speaker 4: Absolutely, so let's jump into utilities. If you're looking for
22:45
Speaker 4: a single family home, it would be ideal and I
22:48
Speaker 4: want you to write this down. Oftentimes agents don't do
22:51
Speaker 4: this as the previous homeowners provide you with a statement
22:56
Speaker 4: of what their utility bills are, Like, what are they're
22:58
Speaker 4: paying on average for their life field? What are they
23:00
Speaker 4: paying on average for their gas bill? Those are two
23:03
Speaker 4: controllable expenses that you don't really consider when you're buying
23:06
Speaker 4: a home. Why is this important. Let's just say you're
23:09
Speaker 4: buying a five thousand square foot home on a basement
23:13
Speaker 4: and you're coming from a two bedroom apartment that's maybe
23:17
Speaker 4: thirteen hundred square feed, the difference in the amount of
23:20
Speaker 4: heat that's required to heat that space, the amount of
23:23
Speaker 4: HVAC that's required to cool that space. It could be
23:26
Speaker 4: almost the cost of it could really be thousands of dollars.
23:30
Speaker 4: So while you're out here assessing what your expenses should be,
23:33
Speaker 4: ensure that you get that information from the current homeowner
23:37
Speaker 4: before making your purchase. So utilities are such a big deal.
23:41
Speaker 4: And then when we talk about homeowners homeowners association fees,
23:46
Speaker 4: So you guys are in New York, so a lot
23:47
Speaker 4: of times you guys are buying not y'all, you know,
23:51
Speaker 4: you deserve to be rich, but a lot of people
23:53
Speaker 4: are buying condos, townhouses, things like that, and there a
23:57
Speaker 4: lot of times those fees are included. So you get
23:59
Speaker 4: into a HOA, they'll say, here's an additional I saw
24:03
Speaker 4: a condo here in Atlanta where the hoafee is fourteen
24:06
Speaker 4: hundred dollars a month, but it includes the utilities, and
24:11
Speaker 4: then it includes amenities, so it includes so it kind
24:14
Speaker 4: of offsets, but you have to understand how that will
24:17
Speaker 4: affect your monthly payment. So hoafe's is a huge deal.
24:21
Speaker 4: I think we get a big, bad rep I don't
24:24
Speaker 4: want a house in the HOA. It's good to it
24:26
Speaker 4: and it's not so good. The good parts of it
24:28
Speaker 4: HOA is if you are in a neighborhood, a single
24:30
Speaker 4: family neighborhood, and everybody has to maintain the exterior a
24:34
Speaker 4: certain way, everybody has to maintain the grass their yards
24:37
Speaker 4: a certain way. It actually helps with your value appreciation.
24:40
Speaker 4: You're gonna hear me say value appreciation a lot because
24:42
Speaker 4: I want you to understand that is the number one
24:45
Speaker 4: reason for getting into real estate and owning a property
24:50
Speaker 4: is value appreciation and ownership. That's it. So of course
24:55
Speaker 4: hoafees is something you need to consider and see what
24:57
Speaker 4: they're what's included in that routine maintenance. I most recently
25:02
Speaker 4: was consulting with someone and they have to get an
25:05
Speaker 4: entire new HVAC system. They got a quote for twenty
25:10
Speaker 4: thousand dollars. Like, you can't call the landlord. You are
25:15
Speaker 4: the landlord. You are in charge of those fee of
25:19
Speaker 4: that maintenance. So getting routine maintenance on your property and
25:23
Speaker 4: accounting for those additional expenses. I hate to scare people.
25:25
Speaker 4: Everybody has this scare tactic. I'm gonna tell you, and
25:29
Speaker 4: this is not even like look into any type of
25:32
Speaker 4: home warranty companies that offer complete protection. So when you
25:36
Speaker 4: get a home warranty company that helps you with the
25:38
Speaker 4: room tine maintenance. So instead of you being responsible for
25:40
Speaker 4: that twenty thousand dollars fee to replace the system, if
25:44
Speaker 4: you were paying a monthly fee into a home warranty company,
25:47
Speaker 4: then you could call them the same way you would
25:49
Speaker 4: call your landlord. Why do I want to say this
25:51
Speaker 4: because I'm sick of people try to scare people into
25:53
Speaker 4: not owning a home, saying my landlord can pay for that. Well,
25:56
Speaker 4: if you were paying a fifty dollars fee per month
25:59
Speaker 4: and your h VAC system went out tomorrow, you would
26:02
Speaker 4: be able to call your home warranty company to cover it.
26:05
Speaker 4: So don't allow these expenses to scare you. But be
26:07
Speaker 4: very aware that these expenses are there. So your job
26:10
Speaker 4: is to protect yourself. So again, unexpected expenses are going
26:14
Speaker 4: to happen. You're going to have to get your gutters
26:16
Speaker 4: cleaned every year. You're going to have to get your
26:18
Speaker 4: extere of your property pressure washed every year. Some people
26:21
Speaker 4: do it every quarter. You have to consider that you
26:24
Speaker 4: want a home inspector to come inspect your property every
26:27
Speaker 4: single year, not just when you buy the home. When
26:30
Speaker 4: you initially buy the home, you do get a home
26:32
Speaker 4: inspection because you're negotiating with the seller for any defects
26:35
Speaker 4: in the property and you don't want to purchase a
26:37
Speaker 4: property with the defect. But what happens when you live
26:40
Speaker 4: in a home. There could be underground lenks that you
26:44
Speaker 4: are not aware of that continue to happen. Your HVAC
26:47
Speaker 4: could be at the bottom of like at the end
26:49
Speaker 4: of its lifespan. So you get a home inspection every
26:52
Speaker 4: single year. That's about five or six hundred dollars. But
26:55
Speaker 4: what it does is preventative maintenance. That preventative maintenance, now
26:58
Speaker 4: you can call your home warranty, your handyman to address
27:01
Speaker 4: issues before they become too expensive. No one talks about
27:05
Speaker 4: that type of maintenance, but that's what it requires to
27:07
Speaker 4: maintain a home. So outside of that, you have the utilities,
27:11
Speaker 4: you have the just maintaining the integrity of your property.
27:15
Speaker 4: But then you also got to account for certain things.
27:17
Speaker 4: And I'm going to focus on single family homes because
27:19
Speaker 4: it's completely different maintenance than having a condo. A single
27:23
Speaker 4: family home, you may want to take into your budget.
27:25
Speaker 4: At what point do I have to replace the roof.
27:27
Speaker 4: An average roof span is fifteen to twenty five years,
27:30
Speaker 4: so you have to think about that. At what point
27:32
Speaker 4: do I have to replace the hvac system? They keep
27:35
Speaker 4: changing the free on in different things. In the HVAC system,
27:38
Speaker 4: that's typically five to ten years. Some of them are
27:41
Speaker 4: saying twenty years. So what you want to do is
27:43
Speaker 4: budget that and I will not stress this enough. Get
27:47
Speaker 4: a home warranty. Get a home warranty, and then make
27:51
Speaker 4: sure when you purchase your property you're getting scheduled and
27:54
Speaker 4: consistent maintenance of your home. That is how not.
27:59
Speaker 1: There's a part we talk about the homeowners insurance, but
28:02
Speaker 1: most people don't know about mortgage insurance. And I'm assuming
28:05
Speaker 1: if a lot of people are doing being first time
28:07
Speaker 1: home owners and they don't have the twenty five percent
28:10
Speaker 1: down payment or twenty percent down payment, you're going to
28:12
Speaker 1: flow in this category. So talk about what that is
28:15
Speaker 1: and kind of give it like an explanation of what
28:18
Speaker 1: mortgage insurance actually entails.
28:20
Speaker 4: Yeah, so mortgage insurance covers the lender. Mortgage insurance does
28:23
Speaker 4: not cover your property. It covers the lender in case
28:27
Speaker 4: you default on the loan. So when you're paying mortgage insurance.
28:30
Speaker 4: A lot of people are like, do I have to
28:32
Speaker 4: pay it? Yes, you have to pay mortgage insurance unless
28:35
Speaker 4: you're putting twenty percent down. If you're putting less than
28:38
Speaker 4: twenty percent down. At some point, though, what does happen?
28:42
Speaker 4: You do pay the private mortgage insurance. But at some
28:44
Speaker 4: point when you have invested more than twenty percent towards
28:48
Speaker 4: the principle of your mortgage, you can actually call your
28:52
Speaker 4: mortgage lender and say, hey, I have invested this much.
28:55
Speaker 4: I want the mortgage insurance to come off. The mortgage
28:58
Speaker 4: insurance will not cover your house if it's damage. The
29:01
Speaker 4: mortgage uran insurance doesn't cover your house, God forbid, if
29:04
Speaker 4: there's a fire. It only covers the lender because the
29:08
Speaker 4: lender is taking a chance on you because you don't
29:10
Speaker 4: have enough skin in the game. You have enough skin
29:13
Speaker 4: in the game for them to say, hey, we're going
29:15
Speaker 4: to give you this mortgage, but you're putting less than
29:18
Speaker 4: twenty percent down, so we need insurance on top of
29:22
Speaker 4: what on top of what we're giving you, just in
29:25
Speaker 4: case you default and you cannot satisfy the law. That
29:28
Speaker 4: is what mortgage insurance is. And you can't get around it.
29:31
Speaker 2: So, what's some best practices as far as for the
29:34
Speaker 2: homeowners insurance right? For the homeowners insurance, what's best practice
29:37
Speaker 2: that people should be aware of getting a homeowner insurance policy?
29:42
Speaker 4: You get what you pay for cheaper is not always better.
29:46
Speaker 4: And I feel like oftentimes when you're shopping with different
29:49
Speaker 4: home insurance companies, and I have great relationships with homeowners
29:52
Speaker 4: insurance companies, you're just thinking this is going to affect
29:55
Speaker 4: my monthly payment.
29:56
Speaker 1: It is.
29:57
Speaker 4: They take the calculation of what it will cost you
29:59
Speaker 4: for a twelve months and then you're paying on it
30:02
Speaker 4: every single month as a part of yours growth. Your
30:04
Speaker 4: es grows include your insurance and your taxes. Right, So
30:07
Speaker 4: when you're thinking about, Okay, I have to pay this amount,
30:12
Speaker 4: I would say shop and tell them the truth. If
30:14
Speaker 4: you have three Rolex rotchets in the house, right, and
30:18
Speaker 4: you just did an upgrade in your kitchen and did
30:20
Speaker 4: soft closed cabinets and wolf appliances, you need to tell
30:24
Speaker 4: your insurance company about this because what happens is you're
30:27
Speaker 4: getting insured at the house. Let's say you buy a
30:28
Speaker 4: house with you know, ge appliances. You're just happy to
30:32
Speaker 4: own a home. You read the book I Deserve to
30:35
Speaker 4: Be Rich. You do a stock option play, and now
30:39
Speaker 4: you want to renovate your kitchen now, and you go
30:41
Speaker 4: and do this whole renovation. It's one hundred thousand dollars renovation,
30:44
Speaker 4: and you don't report it to your homeowner's insurance company.
30:47
Speaker 4: What happens in the interim if your house catches on fire,
30:50
Speaker 4: like I said, like what happened in LA and things
30:52
Speaker 4: like that, if you never paid the difference in that cost,
30:55
Speaker 4: it's not covered. So that's why keeping up with your
30:58
Speaker 4: homeowner's insurance and making sure that you tell your preferred
31:02
Speaker 4: insurance agency the truth about your assets. They can understand
31:06
Speaker 4: how much it would cost to actually rebuild the property.
31:09
Speaker 4: Because there's different levels to insurance, cheaper is never better.
31:13
Speaker 4: I will always say, be educated about the level of
31:16
Speaker 4: insurance that you receive so in case something happens, because
31:19
Speaker 4: that is what insurance is for your cover.
31:22
Speaker 2: And then also it's important because they had a study
31:25
Speaker 2: that like I think thirty percent of homeowners actually they're
31:27
Speaker 2: paying more money and all the ancillary stuff than the
31:30
Speaker 2: actual mortgage.
31:31
Speaker 3: So you got to have a budget.
31:34
Speaker 2: You got to have an idea of how much money
31:36
Speaker 2: you're going to spend because if not, if your budget
31:38
Speaker 2: is like twenty five hundred and your mortgage is two thousand,
31:41
Speaker 2: you think that I got a five hundred dollars surplus.
31:44
Speaker 2: But then when you add all these utilities and the taxes,
31:47
Speaker 2: and then the insurance and then you know maintenance upkeep,
31:52
Speaker 2: and the budget is actually your two thousand dollars a
31:55
Speaker 2: month mortgage actually turns into forty five hundred dollars a
31:58
Speaker 2: month that you actually end up spending. That causes a
32:02
Speaker 2: lot of problems.
32:04
Speaker 1: And one of those taxes that I don't even see
32:05
Speaker 1: in there is school tax right, Like everybody wants to
32:08
Speaker 1: live in a great neighborhood and go to the great
32:10
Speaker 1: school for that cost, and so that's something that's getting
32:14
Speaker 1: paid semi annualy or sometimes quarterly. So just keep that
32:18
Speaker 1: in mind, like when you want to move to that
32:19
Speaker 1: great neighborhood, because it's preceded school. The people that own
32:23
Speaker 1: property there, they're paying school taxes, which is another amount
32:26
Speaker 1: that you're gonna have to put into that budget that
32:28
Speaker 1: you apparently thought you had when you were starting a
32:30
Speaker 1: buying process.
32:31
Speaker 4: Oh and this is one thing I want to tell
32:33
Speaker 4: you guys that I'm a professional, right, so it shouldn't
32:37
Speaker 4: happen to me. But it happened to me too. With
32:39
Speaker 4: homeowners insurance one of my investment properties. I'm just like,
32:42
Speaker 4: why is this monthly note so high? What happened? Right?
32:46
Speaker 4: I did put down twenty percent, so I just pay yearly.
32:49
Speaker 4: I pay annually. And it slipped my mind to renegotiate
32:54
Speaker 4: the terms of my homeowner's insurance policy. So they increased
32:58
Speaker 4: my homeowners insurance policy beyond the limit that I wanted,
33:01
Speaker 4: was comfortable with. So always remember you have to advocate
33:05
Speaker 4: for yourself and every year when it's time to renew
33:08
Speaker 4: that policy, you do know you don't have to be
33:10
Speaker 4: stuck with who you started with. You can actually shop around.
33:14
Speaker 4: Let them know you're shopping around, shop three different people.
33:17
Speaker 4: Tell them you're shopping. Get the lowest rate, and then
33:19
Speaker 4: every but get the lowest rate that has the highest coverage.
33:22
Speaker 4: Let me say, at one one time, get the lowest
33:24
Speaker 4: rate that has the highest coverage, and that will help
33:28
Speaker 4: with controlling your overhead expenses.
33:30
Speaker 1: Probably important, rightly important? All right, So how do we
33:33
Speaker 1: avoid overextending ourselves?
33:36
Speaker 4: Stop trying to keep up with the Joneses. I'm serious
33:39
Speaker 4: that we have to stop. I probably you're probably gonna
33:42
Speaker 4: look at my page to say, who is she to talk?
33:44
Speaker 4: All she posts these multimillion dollar properties. Well that's how
33:47
Speaker 4: I started. That's not how I started, you know. And
33:50
Speaker 4: you got to understand your first home, depending on who
33:53
Speaker 4: you are and where you are in your life, may
33:56
Speaker 4: not be that multi million dollar mansion that you want,
33:59
Speaker 4: but that's starter home will set the foundation for you
34:02
Speaker 4: to get to that next level. So assess your budget.
34:06
Speaker 4: You know, there are so many rules about how much
34:08
Speaker 4: you should save, how much you should live off of,
34:11
Speaker 4: and how much you know you should invest in just
34:14
Speaker 4: your overhead expenses of living life. So what is your budget?
34:17
Speaker 4: Is it going to be the thirty percent rule? You know,
34:20
Speaker 4: if it's like thirty you know, everybody has a different
34:22
Speaker 4: rule that they live by. I saw someone that said
34:24
Speaker 4: they're living off thirty percent of their income. They're investing.
34:28
Speaker 4: Do you hear this? They're investing like forty percent of
34:32
Speaker 4: their income and then they're just saving the remaining balance.
34:36
Speaker 4: So what is your Assess your real budget and don't
34:39
Speaker 4: go beyond it, and I would say add a contingency
34:42
Speaker 4: of about five percent. So if you think you can
34:44
Speaker 4: live off thirty percent of your income, reduce it to
34:47
Speaker 4: twenty five percent. That way you can account for inflation.
34:50
Speaker 4: We're living in the data and age of inflation. We
34:52
Speaker 4: cannot control the costs of gas, groceries, and living expenses.
34:58
Speaker 4: Next up, have an emergency saving. Have an emergency savings
35:01
Speaker 4: because things can happen as a homeowner. Like as a homeowner,
35:05
Speaker 4: you are responsible for those for any of the overhead
35:08
Speaker 4: or any expenses to maintain your property. So make sure
35:11
Speaker 4: you have enough money to save, and just consider the
35:13
Speaker 4: future changes that you may have in your life. So
35:16
Speaker 4: don't always think that this is going to be where
35:18
Speaker 4: I always am going. You know, where I start is
35:20
Speaker 4: where I'm going to finish. Real estate is nothing like that.
35:23
Speaker 4: You can start with a townhouse that's affordable. You can
35:27
Speaker 4: live in that townhouse. You can start with a multi
35:30
Speaker 4: family home, which a lot of people like to house
35:32
Speaker 4: haack that is affordable, live in one side, have the
35:35
Speaker 4: other side covering the mortgage. And then by the time
35:38
Speaker 4: you're ready to move on to your next level because
35:40
Speaker 4: you have invested in the business or you've gotten a
35:42
Speaker 4: promotion at your job, you can now elevate to the
35:45
Speaker 4: next level by selling that property. Leveraging in as a
35:47
Speaker 4: rental and build your wealth and not feel So build
35:53
Speaker 4: your wealth and not feel like I'm behind. That is
35:56
Speaker 4: why most people over leverage. You feel like you're behind
35:59
Speaker 4: and you're not. You just bought one property. You are
36:01
Speaker 4: headed most of the people in the world. So just
36:04
Speaker 4: buy that property and not don't worry about keeping up
36:06
Speaker 4: with the Joneses.
36:08
Speaker 1: That's a fact.
36:08
Speaker 2: That's good information. Okay, all right, So then we have
36:13
Speaker 2: to understand the cost of homeownership.
36:17
Speaker 3: Oh yeah, quite important.
36:20
Speaker 4: Yes, the cost of home ownership is it depends on
36:24
Speaker 4: the program that you get, right. There's so many different
36:27
Speaker 4: loan programs that are available. Let's just go over them.
36:30
Speaker 4: You have FAHA financing, which is the most popular financing.
36:34
Speaker 4: That on financing requires three point five percent as a
36:37
Speaker 4: down payment. However, your one time cost is going to
36:41
Speaker 4: be your down payment, and then you have closing costs
36:44
Speaker 4: down payment closing costs. So when you're getting a loan
36:48
Speaker 4: FAHA financing three point five percent down. You have conventional financing,
36:52
Speaker 4: which is twenty percent down, five percent down or three
36:56
Speaker 4: percent down depending on the program that you use. You
36:59
Speaker 4: have VA financing, which is one hundred percent financing I'm
37:03
Speaker 4: only talking about the down payment. We're not talking about
37:05
Speaker 4: closing costs. So those are like the three different financings
37:09
Speaker 4: that you can use. Then you have one time costs.
37:12
Speaker 4: Those one time costs are your closing fees. What are
37:15
Speaker 4: closing costs. Closing costs are the costs for them to
37:17
Speaker 4: run clear title on your property. You're paying attorney's fees,
37:21
Speaker 4: you're paying any HOA fees, any activation fees. That is
37:25
Speaker 4: what goes into your closing costs, and they can typically
37:27
Speaker 4: be between two to five percent of the entire purchase
37:31
Speaker 4: price of the home. Right, your home inspection fees you
37:35
Speaker 4: have to pay that. You're still going to pay for
37:37
Speaker 4: your home appraisal. Your home appraisal is ordered through the lender,
37:41
Speaker 4: but you pay out of pocket for a home appraisal.
37:44
Speaker 4: And then you have to pay your moving expenses. Of course,
37:46
Speaker 4: you're going to have to move, transfer and get utilities
37:50
Speaker 4: in your name, and maybe hire a moving service unless
37:53
Speaker 4: you're going to hire some of your friends. Right, But
37:56
Speaker 4: the ongoing cost of home ownership is property taxes, and
37:59
Speaker 4: they will go up. Property taxes is something that's ongoing.
38:03
Speaker 4: Another ongoing expense is going to be maintaining the property.
38:06
Speaker 4: Maintenance of the property is something you are responsible for
38:09
Speaker 4: as a homeowner. You are always going to have to
38:12
Speaker 4: pay for homeowners insurance. That is ongoing expenses you're responsible
38:16
Speaker 4: for as a homeowner, and of course the mortgage because
38:19
Speaker 4: if you don't pay the mortgage, the bank is going
38:21
Speaker 4: to take the home back, so you're being foreclosure. So
38:24
Speaker 4: when you're thinking about the ongoing expenses and then the
38:27
Speaker 4: one time upfront expenses, be prepared to handle both.
38:31
Speaker 2: Well, let's also talk about let's skip the one point
38:33
Speaker 2: one the DTI, the debt debt to income ratio.
38:38
Speaker 3: So let's let's let's go over that if we can.
38:41
Speaker 4: Yeah, So most people think like, how do I get
38:43
Speaker 4: approved for the mortgage? It's how they calculate your debt
38:46
Speaker 4: to income. Your debt to income is how they're going
38:49
Speaker 4: to say, how much more money, how much more debt
38:52
Speaker 4: can we approve you for? Because getting a mortgage is
38:54
Speaker 4: a debt, but it is a good debt, right, So
38:57
Speaker 4: to calculate your debt to income ratio, you need to
38:59
Speaker 4: take your money recurring, monthly, recurring debt payments. So let's
39:04
Speaker 4: just say you, oh, I'm going to make it simple.
39:06
Speaker 4: Ten thousand dollars in student loans, but you paid one
39:09
Speaker 4: hundred dollars a month, so you got that one hundred
39:11
Speaker 4: dollars a month that you're paying. Let's say you have
39:13
Speaker 4: a three hundred dollars a month car insurance, that car
39:16
Speaker 4: car payment that you're paying. So recurring bills are what
39:19
Speaker 4: they account to your debt to income ratio, and then
39:22
Speaker 4: you divide that by your monthly income. And when you
39:25
Speaker 4: make that division, that is how much they say, okay,
39:28
Speaker 4: this is your calculation for your DTI ratio. And then
39:31
Speaker 4: they input that in the system and say, well, based
39:33
Speaker 4: on this amount, we can approve you for this dollar amount.
39:36
Speaker 4: That's how you get these automatic approvals. But you still
39:40
Speaker 4: need to remember get a what GFE, a good faith estimate.
39:45
Speaker 4: Make sure a lender does not have you just out
39:47
Speaker 4: here with the prequalification and putting your hard earned money
39:51
Speaker 4: at risk. And you let's just say you've paid. You know,
39:54
Speaker 4: people are paying earnest money. They're paying for home inspections
39:57
Speaker 4: and appraisals, and then a lender never did the detailed
39:59
Speaker 4: work and they do a deep dive into your file.
40:02
Speaker 4: Now all that money is wasted because you technically don't
40:04
Speaker 4: qualify for the loan amount. So it's better to do
40:07
Speaker 4: all that upfront, submit your paper work up front, be
40:10
Speaker 4: transparent about your income, your debts, so that way the
40:13
Speaker 4: calculation makes sense and you don't be house rich and
40:17
Speaker 4: income for But.
40:17
Speaker 2: Then also it's important to do your own as well,
40:20
Speaker 2: because especially if you come from if you come from renting,
40:22
Speaker 2: like if you rent an apartment for two thousand dollars, you
40:25
Speaker 2: pay two thousand dollars. And nowadays even luxury apartments, Like
40:29
Speaker 2: before you used to have to pay first and last
40:31
Speaker 2: month rent, but like with the luxury apartments, now you
40:33
Speaker 2: just pay five hundred dollars. So you pay a security
40:37
Speaker 2: deposit of five hundred dollars and you get the apartment.
40:40
Speaker 2: Now you gotta pay the electric. There's usually like something
40:44
Speaker 2: like kind of maintenance fee, trash removal, like one hundred
40:47
Speaker 2: and fifty dollars. But what I'm saying is this, if
40:51
Speaker 2: you get approved for two thousand dollars, if you get
40:53
Speaker 2: approved for the mortgage, that doesn't mean that you can
40:55
Speaker 2: actually pay that mortgage, right you gotta, Now you gotta
41:00
Speaker 2: and all those other things. If you're live in an apartment,
41:03
Speaker 2: you're not gonna be paying an additional two thousand dollars,
41:06
Speaker 2: but you could be paying an additional two thousand dollars
41:08
Speaker 2: as a homeowner. So if you go into it and
41:11
Speaker 2: you just think, I from like a renter's mindset of like, Okay,
41:13
Speaker 2: the mortgage is two thousand dollars, I'm going to pay
41:15
Speaker 2: two thousand dollars. I might add a couple one hundred
41:17
Speaker 2: in fort you know, now you might have that you
41:19
Speaker 2: might have to add an additional fifteen hundred dollars then,
41:23
Speaker 2: So if you look at it from that standpoint, like
41:25
Speaker 2: the bank, even though the bank gives you disapproval and
41:28
Speaker 2: says that you're qualified for this, like you should do
41:31
Speaker 2: the numbers on your own as well to see what
41:33
Speaker 2: the real cost is going to be every month, because
41:38
Speaker 2: that could be something that you know, can really put
41:41
Speaker 2: you in a bad financial situation.
41:43
Speaker 1: And were talking payments like for mortgages and insurance. That's
41:47
Speaker 1: not even including like you have to live, right and
41:50
Speaker 1: you may have children, and you may have credit card debt,
41:53
Speaker 1: and you may have student loan debt, right, like, all
41:56
Speaker 1: those things have to be taken into account, and so
41:58
Speaker 1: it's important before you make that decision to make sure
42:02
Speaker 1: that you lay this all out. The next thing, obviously
42:05
Speaker 1: is your credit score. Like that's important for multitude of reasons.
42:08
Speaker 1: I think everybody understands that. So imagine this right, Like
42:12
Speaker 1: I know my credit score, right, I've been trying to
42:15
Speaker 1: get this down payment. Twenty percent has been the number,
42:18
Speaker 1: but I can't really get to the twenty percent. It's
42:20
Speaker 1: tough for me to pay my rent, pay my student loans,
42:22
Speaker 1: all my debts. And try to say, if you get
42:24
Speaker 1: to twenty percent, what are some of the procedures of
42:28
Speaker 1: some programs that I can if I don't have twenty
42:30
Speaker 1: percent down to buy this home.
42:32
Speaker 4: If you don't have twenty percent down, I would say
42:36
Speaker 4: you first want to figure out what mortgage type you
42:38
Speaker 4: would approve could be approved for. There are conventional financing
42:42
Speaker 4: programs that are really good programs in there's a three
42:46
Speaker 4: percent down home Ready program that they could qualify for,
42:50
Speaker 4: and that is a conventional loan product. Or you can
42:52
Speaker 4: do a conventional product that's five percent down. You're putting
42:56
Speaker 4: five percent down, but just keep in mind you're going
42:58
Speaker 4: to have to pay that private mortgage insurance because they're
43:01
Speaker 4: taking a risk on you. But if you're in a
43:03
Speaker 4: position where it's like I cannot save twenty percent down,
43:06
Speaker 4: but I have saved quite enough. You need to meet
43:11
Speaker 4: with the lender. And I say this all the time.
43:13
Speaker 4: People are so afraid if they pull my credit, then
43:16
Speaker 4: my score is going to go down so much. Throughout
43:18
Speaker 4: the process of buying a home, they're probably going to
43:20
Speaker 4: pull your credit three times. So if your score can
43:22
Speaker 4: if your credit cannot handle a one time pull to
43:27
Speaker 4: prepare you, then you're mentally not ready for home ownership.
43:31
Speaker 4: I would tell them to give you what it's called
43:33
Speaker 4: a home ready plan. So when they do a home
43:35
Speaker 4: ready plan, what is that tell your lender listen, I
43:39
Speaker 4: want you to give me a home ready plan. And
43:41
Speaker 4: a home ready plan. They're going to run your credit,
43:43
Speaker 4: they're going to assess all of your income, they're going
43:46
Speaker 4: to do your debt to income ratio. They're going to
43:48
Speaker 4: talk to you about how much you want to spend
43:50
Speaker 4: per month, and if your score is not where it
43:53
Speaker 4: needs to be, they can do what it's called a
43:54
Speaker 4: rapid rescore. A lender has the option to do a
43:58
Speaker 4: rapid rescore where they'll tell you where you could focus
44:01
Speaker 4: your energies, like maybe your paying debt down with your
44:04
Speaker 4: paying debt down in a to a credit card or
44:06
Speaker 4: to a space that doesn't affect your score going up.
44:10
Speaker 4: But a lender will tell you exactly where to allocate
44:12
Speaker 4: those funds so they can get your score exactly where
44:14
Speaker 4: you need it to be and then connect you to
44:17
Speaker 4: the right loan program. You think that it's just one person. No,
44:20
Speaker 4: when you met, when you're working with the mortgage broker,
44:23
Speaker 4: they're shopping your profile to several different lenders that are
44:26
Speaker 4: willing to take a risk on you, and then they'll
44:28
Speaker 4: understand your buying power. That is how you empower yourself.
44:31
Speaker 4: You empower yourself by taking the first step. You can
44:35
Speaker 4: do as much as you want to in the background.
44:37
Speaker 4: But if you if I were you, and you have
44:39
Speaker 4: at least twenty five thousand dollars saved, and you feel
44:43
Speaker 4: like I can't get further and I have like a
44:44
Speaker 4: six to twenty credit score, but buying a house is
44:47
Speaker 4: on my goal list. Now is the time to consult
44:50
Speaker 4: with the lender. Because home prices are not going down.
44:54
Speaker 3: We see that.
44:56
Speaker 4: So if you can get in early enough, that helps
44:58
Speaker 4: you because what you but gonociation power is high, so
45:02
Speaker 4: you can negotiate. I just ran some numbers and again
45:04
Speaker 4: I can only speak for the metro Atlanta area, but
45:06
Speaker 4: I have agents in every city, especially New Jersey. I
45:10
Speaker 4: got a lot of agents in New Jersey and they
45:13
Speaker 4: are telling me they're able to leverage and negotiate and
45:16
Speaker 4: get more concessions from the seller and actually are getting
45:20
Speaker 4: more people to reduce the asking price because there are
45:23
Speaker 4: not many buyers on the market right now, right so
45:26
Speaker 4: you can leverage that to reduce your out of pocket expenses.
45:28
Speaker 4: And when you get a seller concession, what is a
45:30
Speaker 4: seller concession? Let me tell you. A seller concession is saying,
45:34
Speaker 4: in exchange for you purchasing my property, I'm going to
45:37
Speaker 4: contribute this dollar amount towards your closing costs and that
45:40
Speaker 4: reduces your upfront out of pocket expenses. So and typically
45:44
Speaker 4: depending on the loan type, they can go up to
45:47
Speaker 4: three percent. As a reminder, they cannot go above three
45:52
Speaker 4: percent of the purchase price. Even a dollar above it,
45:55
Speaker 4: they have to reject it from the lending standpoint. So
45:58
Speaker 4: when you're using your leveraging the negotiating power, you're the
46:03
Speaker 4: out of pocketed senses and you're reducing the costs to
46:06
Speaker 4: just the home, even with interest rates being where they are.
46:09
Speaker 4: When rates go down a point. My whole my rule
46:12
Speaker 4: is at least a point and a half, because you'll
46:14
Speaker 4: see a difference. If rates go down a point and
46:16
Speaker 4: a half, call your lender refinance. Now you're able to
46:19
Speaker 4: get a lower monthly payment, even lower than you already
46:22
Speaker 4: allocate it. But you've already used all your levers to
46:25
Speaker 4: negotiate the purchase price, which will never change, and then
46:28
Speaker 4: the reduction of out of pocketed senses, which will never change.
46:32
Speaker 4: That is how you win in today's market when you
46:34
Speaker 4: are a buyer.
46:37
Speaker 2: No, that's good information because you said all this stuff
46:41
Speaker 2: and stuff that nobody really knows. You just go and
46:43
Speaker 2: buy a home and you just wing it in a
46:46
Speaker 2: lot of times, man, it puts you on a lot
46:48
Speaker 2: of trouble. Even could cause somebody the foreclothes on their home.
46:51
Speaker 2: Let's talk about the different types of loans if we
46:56
Speaker 2: can or know it.
46:56
Speaker 4: Is absolutely so, there are technically there are different loan types.
47:03
Speaker 4: You have faha financing. Faha financing is really kind of
47:07
Speaker 4: put together for it's like first time for really designed
47:11
Speaker 4: for first time home buyers. But you can be a
47:13
Speaker 4: second time home buyer and use it. You can have
47:15
Speaker 4: low credit scores, you can have a low credit score
47:18
Speaker 4: as low as five hundred. I've seen people offer the
47:20
Speaker 4: program and your down payment is three point five percent.
47:23
Speaker 4: Now you can put down more. That's the part people
47:26
Speaker 4: don't know. You can put down more, which will affect
47:28
Speaker 4: your monthly payment, but typically you can put down as
47:31
Speaker 4: little as three point five percent. They actually are a
47:34
Speaker 4: little bit more lenient when it comes to your debt
47:36
Speaker 4: to income ratios. And you can use this loan type
47:39
Speaker 4: to purchase a home a multifamily up to four units.
47:43
Speaker 4: So FAHA is the most popular loan type for first
47:46
Speaker 4: time home buyers. A lot of the down payment assistance
47:49
Speaker 4: programs that you heard we speak of, they're attached to
47:52
Speaker 4: the FAHA financing. So I would encourage you, if you
47:55
Speaker 4: are a first time home buyer, meet with the lender,
47:57
Speaker 4: get with the professional and find out what your full
48:00
Speaker 4: picture is and what you're approved for. So that's one
48:03
Speaker 4: loan type. The next loan type is going to be
48:06
Speaker 4: conventional financing. Conventional financing is the traditional financing, and there's
48:12
Speaker 4: several different conventional financing. Most people are using conventional financing
48:16
Speaker 4: to purchase their homes. They have the Home Ready program
48:19
Speaker 4: with as little as three percent down, you have your
48:22
Speaker 4: jumbo loans, and a jumbo loan is a loan where
48:24
Speaker 4: you're absolutely more than likely putting twenty percent down. You're
48:29
Speaker 4: buying a home that is actually higher than what they
48:32
Speaker 4: will allow you to loan on, and so you get
48:36
Speaker 4: jumbo loans. Within a conventional financing program, you have a
48:39
Speaker 4: five percent down. In a conventional financing program, they actually
48:44
Speaker 4: have a higher credit score minimum, but it works best
48:47
Speaker 4: for people with strong credit. And you are going to
48:50
Speaker 4: have the option if you put twenty percent down to
48:53
Speaker 4: not have the private mortgage insurance. So that is why
48:56
Speaker 4: when you're doing an FAH loan, you have to have
49:00
Speaker 4: rate mortgage insurance. You don't have a choice. Right. Then
49:03
Speaker 4: another loan type is going to be your VA financing,
49:07
Speaker 4: and this is for veterans. If you're a veteran and
49:10
Speaker 4: you're looking to purchase a home, they have lower credit
49:13
Speaker 4: scores and you can see it's about five to eighty
49:16
Speaker 4: on the credit score. But you have no down payment.
49:19
Speaker 4: You're only responsible for the closing costs. That's right, no
49:22
Speaker 4: down payment. Let me say this one more time. Zero
49:25
Speaker 4: down payment. You're only responsible for the closing costs. But
49:28
Speaker 4: what happens is when you're getting a conventional loan, you
49:32
Speaker 4: have to put three percent down. You pay that at
49:34
Speaker 4: the closing table. The VA financing says we're going to
49:37
Speaker 4: do no down payment, but there is a funding fee.
49:41
Speaker 4: But the funding fee is wrapped into the loan, so
49:44
Speaker 4: you don't have to pay it out of pocket. But
49:46
Speaker 4: you're still responsible for your closing costs. So keep that
49:49
Speaker 4: in mind. And this is only for military veterans. So
49:52
Speaker 4: I really think that the VA benefits in the VA
49:55
Speaker 4: loan is underused. I'm from Fabbo, North Carolina. It is
49:58
Speaker 4: a military town. I think that anyone that's served in
50:01
Speaker 4: the military should use their VA benefit. You deserve it,
50:04
Speaker 4: you worked hard for it. It's the only financing that
50:07
Speaker 4: is giving you one hundred percent financing, a very lenient
50:10
Speaker 4: back end system, and you're able to get in with
50:13
Speaker 4: very little money out of pocket, and that is the goal.
50:15
Speaker 4: There's little money out of pocket at front as possible.
50:18
Speaker 4: You can become a homeowner.
50:21
Speaker 1: And this this loan is for primary residence. Correct, This
50:23
Speaker 1: is not like primary residence.
50:26
Speaker 4: It's your primary residence.
50:28
Speaker 1: And quick question when you talked about the jumbo loon, seriously,
50:31
Speaker 1: what is the threshold? Because I feel like obviously it
50:33
Speaker 1: changes over So what is it not the threshold for
50:35
Speaker 1: a jumbolone? What is the amount that you have to
50:39
Speaker 1: have in order to qualify?
50:41
Speaker 4: It just depends on the lender. Jumbo loans they shift, right,
50:46
Speaker 4: So when people say I was approved for a loan, right,
50:49
Speaker 4: it depends on your lending. So let me give you
50:51
Speaker 4: an example. I closed the deal in December. The house
50:55
Speaker 4: was three million dollars, but the lender, based on the
50:58
Speaker 4: risk and the profile of the client, was like, we're
51:01
Speaker 4: only able to lend them based on what their debt
51:04
Speaker 4: to income ratio and their profile two point five million.
51:09
Speaker 4: So the difference between two point five million and the
51:11
Speaker 4: three million, they had to bring a half million dollars
51:14
Speaker 4: to the closing table. So a jumbo loan is when
51:16
Speaker 4: you're buying homes that are multiples of millions of dollars
51:20
Speaker 4: and depending on the risk that you are, the lender
51:23
Speaker 4: is going to shop that around. But you are always
51:25
Speaker 4: going to add minimum put twenty percent down no matter
51:28
Speaker 4: what on a jumbo loan, but it could be more
51:31
Speaker 4: depending on your profile and your debt to income ratio
51:34
Speaker 4: because the lender is the one taking the risk on
51:36
Speaker 4: that jumbo loan. So your state, your state you're in
51:41
Speaker 4: that fluctuates how much you can qualify for for a
51:43
Speaker 4: jumbo loan because they take into account like California, of
51:46
Speaker 4: course the lending is higher New York, the lending is
51:49
Speaker 4: higher Atlanta. They're going in alignment with what the lending
51:52
Speaker 4: should be here, then your credit profile, and then what
51:55
Speaker 4: your debt to income ratio. That is how they calculated.
52:00
Speaker 2: So going off script, let's talk about some things like
52:04
Speaker 2: what is best practices to negotiate, Like if somebody's buying
52:07
Speaker 2: a seller because I know there's earn this money, sometimes
52:09
Speaker 2: you can negotiate different fees and stuff like that. So
52:14
Speaker 2: from a negotiation standpoint, what are some things that can
52:18
Speaker 2: be negotiationd or at the very least looked at when
52:22
Speaker 2: purchasing a home from somebody.
52:24
Speaker 4: Let me break down what the buyers are responsible for
52:27
Speaker 4: when it comes to buying a house. I think that
52:30
Speaker 4: really helps. Let's start with number one. With this new
52:34
Speaker 4: settlement from the National Association of Realtors, what has happened
52:37
Speaker 4: is and this we didn't speak on this enough, but
52:39
Speaker 4: we need to. People used to say hire me as
52:43
Speaker 4: your buyer's agent. My services are free. And now with
52:47
Speaker 4: this new lawsuit, the services were never free. The sellers
52:50
Speaker 4: actually did a lawsuit against the National Association of realter saying, listen,
52:55
Speaker 4: when we sell our property, we're paying for seller agent representation.
52:59
Speaker 4: A buyer is in the field look into buyer property,
53:02
Speaker 4: they should pay for their own buyer agent representation. So
53:06
Speaker 4: now you are responsible for the compensation of your buyer's agent,
53:12
Speaker 4: unless your buyer's agent can negotiate it from the seller.
53:16
Speaker 4: We no longer advertise or market. When I list a property,
53:21
Speaker 4: I will say, well, I'm going to pay a buyer's
53:23
Speaker 4: agent this percentage in order to bring me a buyer.
53:26
Speaker 4: We can no longer negotiate that. So you're responsible for that.
53:29
Speaker 4: And typically that fee is can be up to three percent.
53:33
Speaker 4: So how do you negotiate. You let a buyer's agent, No, listen,
53:36
Speaker 4: I'm only willing to pay you whatever that percentage is,
53:39
Speaker 4: and you sign a buyer compensation agreement agreeing to that price.
53:44
Speaker 4: But also they are going to advocate for the seller
53:48
Speaker 4: to pay their compensation, So that's going to be the
53:51
Speaker 4: first thing that you need to actually negotiate. Secondly, you
53:55
Speaker 4: can save money. I don't I personally don't feel like
53:58
Speaker 4: you should your energy is best used, and you're negotiating
54:03
Speaker 4: the seller to contribute to your closing costs. When you're
54:07
Speaker 4: thinking about earnest money. Earnest money is actually applied to
54:12
Speaker 4: your your bottom line numbers when you get to the
54:14
Speaker 4: closing table. So if you want to win an offer
54:16
Speaker 4: and you're like, listen, as long as I have an
54:18
Speaker 4: agent that I trust, and I can just say this,
54:21
Speaker 4: I have never lost a client's earnest money. I know
54:24
Speaker 4: the dates, I know the timelines, I know the rules.
54:27
Speaker 3: Just happened with Jada? Are you familiar with this?
54:30
Speaker 4: I know exactly. Let me let me. I want to
54:33
Speaker 4: let me be as vague as possible.
54:35
Speaker 3: And you know I can't beau in Atlanta.
54:39
Speaker 4: That was not ideal.
54:40
Speaker 3: But I can tell you about well. She said it publicly,
54:42
Speaker 3: That's why I was speaking about it.
54:44
Speaker 4: Let me tell you what happened. What happens is this,
54:47
Speaker 4: there's contingencies to the contract. So when you saw that
54:49
Speaker 4: Jada lost her earnest money and she didn't want to
54:51
Speaker 4: move into the property, there are contingencies. So a contingency
54:55
Speaker 4: is the timeline that you have to meet that all
54:58
Speaker 4: parties can use to get out of the con tracks,
55:00
Speaker 4: specifically the buyer. So when you submit twenty five thousand
55:04
Speaker 4: earns money on the let's just say for a contract,
55:06
Speaker 4: you have a couple contingencies. One, you have your due
55:10
Speaker 4: diligence period. A due diligence period in the state of
55:13
Speaker 4: Georgia and most other states do have. This is your
55:16
Speaker 4: time period to inspect the property and negotiate repairs prior
55:22
Speaker 4: to moving on to the next contingency. So if you
55:25
Speaker 4: have a fourteen day due diligence within that fourteen days
55:29
Speaker 4: in the State of Georgia again keeping up and other
55:31
Speaker 4: states do have this too. If you get a home inspection,
55:35
Speaker 4: you get a roof inspection, and you come back and say, hey, seller,
55:38
Speaker 4: I did not like this inspection. I want you to
55:40
Speaker 4: make these corrections prior to closing, and your agent puts
55:44
Speaker 4: down those corrections. If the seller does not agree to it,
55:47
Speaker 4: you can terminate your contract within that due diligence period
55:50
Speaker 4: and get your money back. Once you pass the due
55:53
Speaker 4: diligence period, then you have the financing contingency and the
55:57
Speaker 4: appraisal contingency. The financing continue agency is the time period
56:01
Speaker 4: that a lender has to provide a letter of commitment
56:05
Speaker 4: to the law. So when you first get your mortgage
56:08
Speaker 4: approval letter, that's an approval, but they have to now
56:11
Speaker 4: take the actual binding contract that you signed, and now
56:15
Speaker 4: they start submitting that binding contract along with all your
56:18
Speaker 4: other documents to an underwriter, and an underwriter will come
56:22
Speaker 4: back and say, this is a letter of commitment. We
56:24
Speaker 4: are committed to actually funding this property. Then you have
56:29
Speaker 4: your third one, which is your appraisal contingency, and we
56:32
Speaker 4: spoke on that. So in that appraisal contingency, if the
56:35
Speaker 4: home does not appraise that value, then your agent needs
56:38
Speaker 4: to do an amendment to reduce the purchase price. The
56:40
Speaker 4: seller does not. Let me say this again, the seller
56:42
Speaker 4: does not have to agree to reduce the price. They
56:47
Speaker 4: do not. So if you pay for a home inspection
56:49
Speaker 4: and you paid for the appraisal, and the seller say,
56:51
Speaker 4: I don't care what your appraisal said, my home appraised
56:53
Speaker 4: at this value. You can terminate the contract and you
56:56
Speaker 4: can get your earnest money back, But all the other
56:59
Speaker 4: expenses that you spent to purchase the property you will
57:02
Speaker 4: not get refunded to you. So in the case of data,
57:05
Speaker 4: I think it was a little bit of buyer's remorse.
57:08
Speaker 4: Probably when she was under contract to purchase the property,
57:11
Speaker 4: and I think it was like thinking about the exposure,
57:15
Speaker 4: you know, of buying that property. I don't think that.
57:18
Speaker 4: I think it. This is what happens when you buy
57:23
Speaker 4: a property. You need to hear from an experience agent
57:26
Speaker 4: that understands how to protect your privacy. So you should
57:30
Speaker 4: if you are a celebrity or a semi celebrity. We
57:33
Speaker 4: have this issue all the time, and I hate to
57:35
Speaker 4: say it, especially when you guys are working with us,
57:38
Speaker 4: and we're very social on social media people and that's
57:40
Speaker 4: how we get our business. But when you're protecting the
57:42
Speaker 4: best interests of your clients, the number one thing they
57:45
Speaker 4: should be doing is purchasing the home in the name
57:47
Speaker 4: of an anonymous LLC, or they should also be buying
57:51
Speaker 4: it in the name of a trust. And then the
57:53
Speaker 4: second layer that you need to add. I have closed
57:56
Speaker 4: plenty of deals that y'all know about that nobody else
57:59
Speaker 4: will ever find. Get it out of my name, because
58:02
Speaker 4: anything that I sell is public knowledge. So what I
58:05
Speaker 4: do is I don't close the deals under my name.
58:07
Speaker 4: I close it under the name of the other agent
58:09
Speaker 4: on the other end. So when someone comes to my
58:12
Speaker 4: page and try to see who she worked with. They
58:13
Speaker 4: can't find it and you can't find them. And I
58:16
Speaker 4: think she had an issue with her privacy being exposed.
58:19
Speaker 4: She was afraid of actually closing on that property because
58:24
Speaker 4: she is a single woman in Atlanta, and I don't
58:27
Speaker 4: think that she felt comfortable. So she passed all of
58:30
Speaker 4: her contingencies. So when she should have made that decision
58:34
Speaker 4: within for the state of Georgia, within her due diligence period,
58:38
Speaker 4: you can terminate for any reason. You can wake up
58:41
Speaker 4: and say I just decided I don't want this house,
58:43
Speaker 4: and you get your earnest money back. It doesn't have
58:45
Speaker 4: to be a reason. In the State of Georgia. She
58:48
Speaker 4: passed that contingency, then she changed her mind, and her
58:53
Speaker 4: agent should have explained that to her, like I always
58:55
Speaker 4: explain whens soon as your due diligence period comes, the
58:58
Speaker 4: day before, you get an email, this is the last
59:01
Speaker 4: day to terminate. Do you still want this house? My
59:04
Speaker 4: team calls, do you still want this house? Otherwise, when
59:07
Speaker 4: you pass this one contingency, the only way out of
59:10
Speaker 4: the contract is what financing or appraisal. So she passed
59:16
Speaker 4: the contingency, and she changed her mind and that's okay,
59:19
Speaker 4: but you got to do that within your due diligence period.
59:22
Speaker 4: That's why it's important to take your time when buying.
59:25
Speaker 4: And also, if you are a public figure, take the
59:28
Speaker 4: time to make sure the person that's representing you understands
59:31
Speaker 4: how to protect you, because I want to I got
59:35
Speaker 4: to just say this, as a minority business in Atlanta,
59:38
Speaker 4: I see it happen so often. We're popular. I'm popular,
59:41
Speaker 4: and then I work with other popular people, and there's
59:43
Speaker 4: so many other people that are minorities too. We want
59:45
Speaker 4: to get the luxury business right, but we can't put
59:48
Speaker 4: them out there. We got to be comfortable with our
59:50
Speaker 4: names being in the rooms instead of our blasting their
59:53
Speaker 4: addresses and their personal information all over social media, which
59:56
Speaker 4: is probably why she ended up having the remorse she
59:59
Speaker 4: did have, and she got out of that kind and
1:00:01
Speaker 4: she decided to terminate the contract because she wasn't comfortable.
1:00:05
Speaker 4: She did subsequently end up buying something after that though,
1:00:08
Speaker 4: and I think they followed those rules and it made
1:00:11
Speaker 4: her more comfortable.
1:00:12
Speaker 1: So let's protect each other in terms of inspection, because
1:00:15
Speaker 1: you brought this up, and this is important. If I'm
1:00:18
Speaker 1: going I'm looking at a property, some of the things
1:00:20
Speaker 1: you can see with your eye, right, like I can
1:00:22
Speaker 1: see like the roof may need to be repaired. But
1:00:24
Speaker 1: then there's some things that you're not going to see.
1:00:26
Speaker 1: So what are the questions that we should be asking
1:00:29
Speaker 1: while expecially has happened. I'll give you a prime example.
1:00:32
Speaker 1: I'm in a home right now. My plumbing right to
1:00:35
Speaker 1: the city line had a belly in it. Right. That
1:00:39
Speaker 1: repair cost me over twenty thousand dollars. Right, That's not
1:00:42
Speaker 1: something I can see with the naked eye. So what
1:00:44
Speaker 1: are you telling clients as you're going to inspection the
1:00:47
Speaker 1: questions that you should be asking. Obviously, agent condition is important,
1:00:50
Speaker 1: but what are some other things?
1:00:52
Speaker 4: There are different levels to home inspections, right, So let's
1:00:55
Speaker 4: just say you're buying a new construction property. You could
1:00:57
Speaker 4: just literally get the general and inspection of the property.
1:01:01
Speaker 4: But if you are buying a property that is a
1:01:03
Speaker 4: little older, you need to get a home inspector. You
1:01:07
Speaker 4: need to hire an engineer, and you need to hire
1:01:09
Speaker 4: a plumber, a plumber that will actually inspect the pipes
1:01:13
Speaker 4: that actually go from your house to the road when
1:01:15
Speaker 4: you didn't do an inspection from your house to the road,
1:01:17
Speaker 4: because that's what you're responsible for. Then I know exactly
1:01:21
Speaker 4: what you're talking about, and right where the city is
1:01:23
Speaker 4: responsible before you're responsible. If it's on your side, you
1:01:27
Speaker 4: have to pay for the repair of fits. On their side,
1:01:29
Speaker 4: they have to pay for it. But because you probably
1:01:32
Speaker 4: just did the general home inspection, it was missed because
1:01:35
Speaker 4: you need to actually do it. Costs a lot of
1:01:37
Speaker 4: money to buy a house, so most especially if you're
1:01:42
Speaker 4: getting an older home, so I'll have a whole list.
1:01:44
Speaker 4: You can get a hire an individual roof inspector, a
1:01:48
Speaker 4: plumbing inspector, a general home inspector at HVAC inspector. So
1:01:53
Speaker 4: when you're getting all these inspections, it can cost you
1:01:56
Speaker 4: up to fifteen hundred dollars, but it protects your best
1:01:59
Speaker 4: interest in the long run. Whatever you don't do upfront,
1:02:02
Speaker 4: you paid for in the end, as you're seeing for yourself.
1:02:06
Speaker 4: Had you paid for that inspection for the plumbing where
1:02:08
Speaker 4: they use one of those lights to go down the
1:02:10
Speaker 4: plumbing hole, you would have saw this and you could
1:02:12
Speaker 4: have negotiated this with the sealer prior to closing.
1:02:16
Speaker 2: What do you what do you say about a real
1:02:18
Speaker 2: estate attorney? How important is that and how do you
1:02:21
Speaker 2: get the right one because then I look at looking
1:02:26
Speaker 2: at the land and making doing like the geological test
1:02:32
Speaker 2: on the land and stuff like that. So that's important
1:02:35
Speaker 2: as well, right, Yes, So.
1:02:36
Speaker 4: If you're looking to purchase land and doing geological tests,
1:02:39
Speaker 4: keep in mind every state is different. So where you
1:02:41
Speaker 4: all are in like New York, the attorneys negotiate the contract,
1:02:45
Speaker 4: and Chicago, the attorney's negotiate the contract. Here in Atlanta,
1:02:51
Speaker 4: the agents negotiate the contract. Our closing attorney doesn't come
1:02:54
Speaker 4: into play until it's time until we're under contract and
1:02:57
Speaker 4: they're just running clear title. Right, So how important is
1:03:01
Speaker 4: it to hire the right people? So if you're getting
1:03:04
Speaker 4: land and you know you're buying land to build a home,
1:03:07
Speaker 4: then you need to hire an engineer so that way
1:03:10
Speaker 4: someone can actually look at the land, and you should
1:03:13
Speaker 4: also if you should, you should know hopefully you know
1:03:16
Speaker 4: if you're going to build, you know exactly who you
1:03:18
Speaker 4: want your builder to be, so they can do the
1:03:20
Speaker 4: soil test or you can hire someone to do the
1:03:22
Speaker 4: soil test, and then also make sure that whatever you
1:03:25
Speaker 4: want to build on the lot, the setbacks that it's
1:03:29
Speaker 4: also set up, the setbacks understanding what you can build
1:03:32
Speaker 4: in the area. That's when it comes to actually hiring
1:03:34
Speaker 4: the professional. Your attorney is not going to know that information.
1:03:38
Speaker 4: Now you can order your own survey, but nine times
1:03:41
Speaker 4: out of ten, the average person doesn't even know how
1:03:43
Speaker 4: to read the survey. They don't know what they're looking at.
1:03:46
Speaker 4: But when you get but if you hire the right
1:03:48
Speaker 4: people up front, I feel like what happens is again
1:03:51
Speaker 4: this is Google University. It's like I could buy my
1:03:53
Speaker 4: own land, and then you get the land, you do
1:03:55
Speaker 4: the soil test. Now the house that you wanted to
1:03:57
Speaker 4: build you can't build on because you try to save
1:03:59
Speaker 4: money upfront by not hiring a professional, and now you
1:04:02
Speaker 4: got to go back and hire a professional.
1:04:03
Speaker 1: On the end. You you are preaching right now to
1:04:07
Speaker 1: pocket for your reports. I didn't realize what's so important.
1:04:09
Speaker 1: And even when you buy an own right, you think
1:04:11
Speaker 1: you can build things that you want on the land,
1:04:13
Speaker 1: and it's like, well, you got to get permits for that,
1:04:16
Speaker 1: Like even the permit process. Talk to people about that.
1:04:18
Speaker 1: I don't think people really understand that process. Right to
1:04:21
Speaker 1: do everything?
1:04:22
Speaker 4: Yeah, I think that we again we have to realize
1:04:25
Speaker 4: that there's a reason that there are people that have
1:04:28
Speaker 4: dedicated their lives to doing those jobs. So you buy
1:04:30
Speaker 4: this land and you're told that you can do an
1:04:33
Speaker 4: a d U, Right, so I could just build me
1:04:35
Speaker 4: a little house in the back of my house because
1:04:37
Speaker 4: I got all this land. And then you go to
1:04:39
Speaker 4: get the permit and there's like, well we rezoned this
1:04:41
Speaker 4: and now you got to get it rezoned for that,
1:04:44
Speaker 4: and you got it. They're not trying to help you
1:04:46
Speaker 4: because their work for they work for the city. They
1:04:48
Speaker 4: just like, here's the paperwork, let me know when you
1:04:50
Speaker 4: get it submitted before you you This is what you
1:04:53
Speaker 4: should be doing within your inspection period. This is what
1:04:56
Speaker 4: you're this is why you should be If you know
1:04:58
Speaker 4: that you are buying a property and you you got
1:05:00
Speaker 4: four acres and you want to build a pool, and
1:05:02
Speaker 4: you want to do an ADU, you should hire a
1:05:05
Speaker 4: general contractor to walk you through that process. Pay them
1:05:08
Speaker 4: their fee whatever that feed is, so that way you
1:05:11
Speaker 4: understand where you are and what your limitations could or
1:05:14
Speaker 4: could not be on that property. You can't just get
1:05:16
Speaker 4: land and start building. It doesn't work like that. I
1:05:19
Speaker 4: mean we wish it did. It doesn't work like that,
1:05:21
Speaker 4: not in the state of Georgia, not New York. Now
1:05:23
Speaker 4: there are certain player areas that don't require gcs, like Texas.
1:05:27
Speaker 4: Texas has different zoning laws, but they still have processes.
1:05:31
Speaker 4: And I think the best way for us to avoid
1:05:34
Speaker 4: the pitfalls of buying land thinking we can build whatever
1:05:37
Speaker 4: we want to do, or buying land to build a
1:05:40
Speaker 4: big house and then not hire in not getting your
1:05:43
Speaker 4: own inspections. I represent developers, but I can tell you
1:05:47
Speaker 4: right now, if I was buying a house from any person,
1:05:50
Speaker 4: I don't care what developer it is I'm going to get.
1:05:53
Speaker 4: If I'm buying land, I'm getting my own soil tests
1:05:55
Speaker 4: with my own engineer. I don't care what you give me.
1:05:58
Speaker 4: I'm getting my own service with my own surveyor. I
1:06:01
Speaker 4: don't care what you give me. Because you have to
1:06:04
Speaker 4: keep in mind you're the one responsible for paying the mortgage,
1:06:07
Speaker 4: not them. This is your this is your asset, so
1:06:10
Speaker 4: why are you putting it in the hands of someone else.
1:06:14
Speaker 4: You should always make sure that you're financially prepared to
1:06:16
Speaker 4: invest in yourself and in your own knowledge and in
1:06:19
Speaker 4: the own paperwork you need, so in the event it
1:06:21
Speaker 4: doesn't work out and you're within your due diligence period,
1:06:24
Speaker 4: you can terminate and move on and get your earnest
1:06:26
Speaker 4: money back.
1:06:28
Speaker 3: What are some red flags to look out for and
1:06:30
Speaker 3: somebody's buying a home.
1:06:32
Speaker 4: Oh, I would say the number one red flag to
1:06:35
Speaker 4: look out for is one when you're walking into the property,
1:06:40
Speaker 4: make sure that you take a second just to look
1:06:42
Speaker 4: into the utility closet kind of look at it. You're
1:06:46
Speaker 4: not you may not be an HVAC check, but I
1:06:48
Speaker 4: can tell you water should not be dripping down from anything,
1:06:52
Speaker 4: So check into that. If you have an opportunity, turn
1:06:56
Speaker 4: the water on in the bathtub. Turn the water on
1:06:58
Speaker 4: and see how the water pressure. That helps you. If
1:07:01
Speaker 4: it's low water pressure in certain bathrooms and it's high
1:07:03
Speaker 4: water pressure in certain bathrooms, that could be a plumbing issue.
1:07:07
Speaker 4: When you're in the living room, like not stop hard,
1:07:09
Speaker 4: this is like this ain't like stop the yard or nothing,
1:07:11
Speaker 4: but stop down a little bit on the subfloor to
1:07:14
Speaker 4: see if you could have like a squeaky or an
1:07:16
Speaker 4: uneven floor and you possibly could have a subfloor issue.
1:07:20
Speaker 4: Those are things I would look out for, especially if
1:07:22
Speaker 4: you're getting a resale home. If you walk into a
1:07:25
Speaker 4: basement and it's done, but you're like, hey, this looks
1:07:28
Speaker 4: like a done basement, but it just seems like the
1:07:30
Speaker 4: quality of craftsmanship is not there. Look up, go look
1:07:34
Speaker 4: that address up with the city and see if they
1:07:36
Speaker 4: ever got permits to complete that basement, and then ask
1:07:39
Speaker 4: the seller to provide you with any permits they did
1:07:41
Speaker 4: to complete the basement, because if they hired just some
1:07:44
Speaker 4: Joe blow to do some things and it wasn't permitted
1:07:48
Speaker 4: permitted work on the basement, it's hard to record that
1:07:51
Speaker 4: actual square footage. So now the square footage is not
1:07:55
Speaker 4: recorded with the city because it was never recorded, so
1:07:58
Speaker 4: you can't even use it for your value appreciation and
1:08:00
Speaker 4: you want to check behind the work. Those are things
1:08:03
Speaker 4: that you can easily do on your own when you're
1:08:05
Speaker 4: looking at property.
1:08:08
Speaker 1: You spoke about this, and I think it's probably one
1:08:10
Speaker 1: of the most important pieces of the process. People overlook it.
1:08:15
Speaker 1: They don't really you know, adequate enough money toward it.
1:08:19
Speaker 1: And that's the closing cost.
1:08:20
Speaker 3: Oh yeah, talk.
1:08:21
Speaker 1: About that, the time it takes, what you should be
1:08:24
Speaker 1: doing to prepare for it, the best strategies when getting
1:08:27
Speaker 1: to that point, because again, this is something that if
1:08:30
Speaker 1: you're not in this process and you not to get
1:08:32
Speaker 1: to the you never get to the closing point. You
1:08:34
Speaker 1: really don't have a good idea of what it takes.
1:08:38
Speaker 4: This is what you should do. If you know that
1:08:40
Speaker 4: you want to buy a house and it's five hundred thousand,
1:08:44
Speaker 4: you need to calculate so you're in this. Say you're
1:08:46
Speaker 4: getting a conventional loan, So go ahead and calculate five
1:08:49
Speaker 4: percent of half a million dollars. That's your down payment.
1:08:53
Speaker 4: And now calculate three percent of a half a million
1:08:55
Speaker 4: dollars that is your clothing cost. Then calculate late, don't
1:09:00
Speaker 4: forget another three percent for buyer's agent compensation. You are
1:09:06
Speaker 4: now responsible for that cost. Now, I don't want to
1:09:09
Speaker 4: scare you. Ninety nine percent, ninety nine percent of sellers
1:09:14
Speaker 4: are still paying buyer's agent compensation because they understand because
1:09:19
Speaker 4: it has been embedded in them and they want to
1:09:20
Speaker 4: get their property sold. But buyers need to know, based
1:09:24
Speaker 4: on that new lawsuit, that is your responsibility. So five percent,
1:09:27
Speaker 4: three percent, three percent. So if I were you, I
1:09:30
Speaker 4: would calculate ten percent of whatever a purchase price to be,
1:09:34
Speaker 4: and that is the amount of money I need to
1:09:36
Speaker 4: have saved. That's what that's what you have to have saved.
1:09:41
Speaker 4: That's including all of the expenses, and then think about
1:09:44
Speaker 4: it as a plus if you save on that dollar
1:09:47
Speaker 4: amount because now your agent has advocated for you, and
1:09:49
Speaker 4: now you don't have to pay a buyer agent compensation
1:09:51
Speaker 4: that takes away three percent and they're able to get
1:09:54
Speaker 4: one point five percent from the seller towards your closing costs.
1:09:57
Speaker 4: Now you're you know, you're up four and a half percent,
1:10:00
Speaker 4: but the money is still in your bank account.
1:10:02
Speaker 1: Good for you.
1:10:03
Speaker 4: Now you have some savings. But don't go into buying
1:10:05
Speaker 4: a home thinking you don't need any money. We used
1:10:07
Speaker 4: to say that, and we used to do that, and
1:10:10
Speaker 4: times have changed. This is how to buy a house
1:10:12
Speaker 4: in twenty twenty five. This is not how to buy
1:10:14
Speaker 4: a house in twenty twenty during the pandemic. This is
1:10:17
Speaker 4: completely different. So you need to be financially prepared.
1:10:21
Speaker 2: Another thing that people don't really fully comprehend, especially like
1:10:25
Speaker 2: I said, if you just come from an apartment, is
1:10:29
Speaker 2: furnishing the home right in interior design business. What's so
1:10:34
Speaker 2: obviously you know that's going to depend on how big
1:10:36
Speaker 2: the home is, your taste, but you and then you know,
1:10:38
Speaker 2: of course you can move some stuff in, even that's
1:10:41
Speaker 2: an expense moving, but you're gonna move some stuff in.
1:10:43
Speaker 2: But if you're moving from like an apartment to a home,
1:10:45
Speaker 2: You're gonna have to buy some stuff. You're not gonna
1:10:47
Speaker 2: be able just to fill a whole home with just
1:10:49
Speaker 2: a one bell of apartment furniture. So what should they
1:10:53
Speaker 2: expect and what's some best practices as far as you
1:10:58
Speaker 2: know furnishing homes.
1:11:01
Speaker 4: We don't want to get into more debt, do we?
1:11:05
Speaker 4: And I mean it's like you don't want to get
1:11:07
Speaker 4: into more debt on average to furnish a home. And
1:11:10
Speaker 4: it's just like an average home. You could use Wayfair.
1:11:14
Speaker 4: You know, Amazon has all these things, great products. You
1:11:17
Speaker 4: got a lot of different places you can go to.
1:11:21
Speaker 4: But even if you go on the lower scale for
1:11:23
Speaker 4: a three thousand square foot house, furnishing it with kitchen,
1:11:28
Speaker 4: kitchen table, take chairs, couch, televisions, owner, sweep, king sized bed,
1:11:35
Speaker 4: you can do twins or maybe queens in the other ones.
1:11:37
Speaker 4: It's twenty five thousand dollars that is on the lowest,
1:11:41
Speaker 4: lowest end. And if you know what your furniture looks like,
1:11:45
Speaker 4: who wants to put a very small love seat in
1:11:50
Speaker 4: the middle of a three thousand square foot living room
1:11:52
Speaker 4: with top but with two stories two story windows, right,
1:11:57
Speaker 4: you're gonna have to account for that. I think we
1:12:00
Speaker 4: need to save for home ownership and stop. I don't
1:12:02
Speaker 4: want it to be like it's easy peasy. It can be.
1:12:05
Speaker 4: It can be easy peasy, but you should save for it.
1:12:08
Speaker 4: And if you're responsible and you want to get like
1:12:10
Speaker 4: different accounts with these furniture companies, and you feel like
1:12:13
Speaker 4: you can pay off the debt and this debt is
1:12:14
Speaker 4: gonna help help you and you want to consider it
1:12:17
Speaker 4: positive debt, then finance the furniture. But I would recommend it.
1:12:20
Speaker 4: I'd rather have to be saved to buy the furniture outright,
1:12:23
Speaker 4: so you again are not putting yourself into more debt.
1:12:26
Speaker 4: So you do have the furniture place. And I know
1:12:28
Speaker 4: you've seen that. It'spence. I keep up with you all renovation.
1:12:33
Speaker 1: You're watching.
1:12:35
Speaker 4: No get to Marble floor.
1:12:40
Speaker 1: But that's important though, right, and sometimes relationships is important
1:12:43
Speaker 1: that can help you in this process. Right. Sometimes having
1:12:45
Speaker 1: people that work in real estate, they have trade accounts,
1:12:48
Speaker 1: and you know, if you have a trade account, then
1:12:50
Speaker 1: you're gonna get you're gonna get twenty percent down. I
1:12:52
Speaker 1: know that for RNH, like even now, like you can
1:12:54
Speaker 1: pay toward that and now you're a member and you
1:12:57
Speaker 1: get a trade account as just being an individual. So
1:13:00
Speaker 1: in some ways, but again, twenty five that's a real
1:13:04
Speaker 1: minimum if you're trying to furnish something three thousand squares.
1:13:06
Speaker 4: Yeah, exactly, So you have to prepare for these expenses.
1:13:10
Speaker 4: You know, I've seen the videos or people walking into
1:13:12
Speaker 4: these empty houses, like I used all my money on
1:13:14
Speaker 4: my down payment and now I'm sleeping on the air mattress.
1:13:17
Speaker 4: It should still be an accomplishment if all you have
1:13:20
Speaker 4: is a bed, and now you have purchased a home
1:13:23
Speaker 4: that you can afford, and you're able to make enough money,
1:13:26
Speaker 4: and you're making enough money to save and then spend
1:13:29
Speaker 4: a certain amount and take your time to furnish the place.
1:13:32
Speaker 4: Take your time. You know, Rome wasn't built in a day,
1:13:35
Speaker 4: and you don't have to build your house in the day.
1:13:37
Speaker 4: But you do want to be realistic about how you
1:13:39
Speaker 4: need to live as you're purchasing these assets.
1:13:42
Speaker 2: Yeah, I think you can definitely furnish a three thousand
1:13:45
Speaker 2: square house with twenty thousand offs. But that said, but
1:13:48
Speaker 2: the thing is, so it's also all right, so we
1:13:51
Speaker 2: painted a very discouraging picture for home ownership, but it's
1:13:54
Speaker 2: a realistic picture. But I think for my philosophy, I
1:13:58
Speaker 2: think this speaks to the point of going down is
1:14:03
Speaker 2: helpful for the average person. Meaning, if you get approved
1:14:06
Speaker 2: for a five hundred thousand dollars mortgage, try to buy
1:14:09
Speaker 2: a home for three hundred thousand, because you're going to
1:14:12
Speaker 2: have all these other expenses. And we'll say all the time,
1:14:15
Speaker 2: you don't want to be house rich and cash poor.
1:14:18
Speaker 2: And that's something that I saw firsthand when I was
1:14:20
Speaker 2: a financial advisor. People cashed out there for in one case,
1:14:23
Speaker 2: literally they have no money and they spend every dollar
1:14:26
Speaker 2: they had to buy a home just to buy a home,
1:14:28
Speaker 2: and then all this other stuff. So that's a trap
1:14:31
Speaker 2: for you to have debt for your whole entire life,
1:14:35
Speaker 2: and that's not a pathway to financial freedom. So that's
1:14:39
Speaker 2: just important for people to keep in mind, Like just
1:14:41
Speaker 2: because you get approved for something, that doesn't mean that
1:14:44
Speaker 2: you have to go to that same amount, right, Like
1:14:47
Speaker 2: you can go lower than that and then have excess
1:14:50
Speaker 2: money to do all of the renovations and buy furniture
1:14:54
Speaker 2: and pay you know, the taxes and all that stuff,
1:14:57
Speaker 2: as opposed to going up to that max liquid in
1:15:00
Speaker 2: all of your savings borrowing money and then you're in
1:15:04
Speaker 2: a home. But as soon as something happens, then you're screwed.
1:15:08
Speaker 2: But then I got to ask you this too, well us.
1:15:11
Speaker 4: Say Tom, Yeah, I'll say this. It depends on what
1:15:14
Speaker 4: how you see the value of home ownership. Like I
1:15:16
Speaker 4: worked for a corporation when I purchased my first property,
1:15:18
Speaker 4: and I did take money out of my four one K,
1:15:21
Speaker 4: but I didn't take all of my money out of
1:15:23
Speaker 4: my four to one K. I leveraged it towards the
1:15:25
Speaker 4: down payment of a property which subsequently became a rental
1:15:29
Speaker 4: property for me. And then like six years later when
1:15:31
Speaker 4: I finally did sell that asset, I made about one
1:15:34
Speaker 4: hundred and sixty thousand dollars on selling that asset, which
1:15:38
Speaker 4: was pennies compared to the nineteen thousand dollars I took
1:15:43
Speaker 4: out of my four oh one K at the time,
1:15:45
Speaker 4: So being smart, but that asset was actually less than
1:15:48
Speaker 4: two hundred thousand dollars. Now, that was obviously a long
1:15:51
Speaker 4: time ago, but that goes to show that when you're
1:15:54
Speaker 4: looking to buy your first property, if you're keeping up
1:15:57
Speaker 4: with your own budget, you understand your entry in your
1:16:00
Speaker 4: exit strategy, and you're buying this property to one build
1:16:04
Speaker 4: your own internal wealth and you no longer want to rent.
1:16:08
Speaker 4: You understand the value of home ownership, then use a portion.
1:16:11
Speaker 4: I'm okay with using a portion of your four one K,
1:16:14
Speaker 4: but you don't wipe it out trying to buy a
1:16:16
Speaker 4: million dollar property that you know you cannot afford. That
1:16:19
Speaker 4: is what happens. That is why, that's what normally happens.
1:16:23
Speaker 4: When people are buying a property. It's like they're trying
1:16:26
Speaker 4: to get something they can't afford, to flex on people
1:16:29
Speaker 4: that don't care, like you should be only flexing on yourself.
1:16:32
Speaker 4: And if you are proud of yourself and what you've purchased,
1:16:35
Speaker 4: I don't care if you're sleeping on an air mattress.
1:16:37
Speaker 4: Be happy that you purchase an asset, and then you're
1:16:40
Speaker 4: leading your way and you're working your way towards wealth.
1:16:43
Speaker 4: The hardest thing for most people to recognize is the
1:16:45
Speaker 4: houses that you see that are the things that you
1:16:48
Speaker 4: want to see that it's like, Wow, that's a beautiful
1:16:50
Speaker 4: house that gets the most likes on social media. That's
1:16:53
Speaker 4: not going to be the house you buy and you
1:16:55
Speaker 4: live in. There are people that are making the millions
1:16:57
Speaker 4: of dollars that refuse to buy those type of ass
1:17:00
Speaker 4: this because they see it as liabilities. At that point,
1:17:02
Speaker 4: they're only buying certain things within a bare minimum of
1:17:04
Speaker 4: their budget of their income. So stay within your own
1:17:07
Speaker 4: budget and then you'll be just fine with understanding the
1:17:10
Speaker 4: value and seeing the value and home ownership.
1:17:13
Speaker 2: And then I got to ask you this before we
1:17:16
Speaker 2: wrap this, is that for people, you're a real estate agent, right,
1:17:21
Speaker 2: So for people saying that they don't need a real
1:17:23
Speaker 2: estate agent because they're going to save money that way,
1:17:26
Speaker 2: or they want to negotiate real estate agent's prices, So
1:17:29
Speaker 2: what's the commentary for that?
1:17:33
Speaker 4: I think that you have to assess the risks. That's
1:17:37
Speaker 4: how I feel as the risks if you want to
1:17:39
Speaker 4: work with an agent. There are agents out here, and
1:17:41
Speaker 4: there are different companies that have flat fees that basically
1:17:45
Speaker 4: means you kind of they just do just enough to
1:17:47
Speaker 4: keep you within to tell you what you should expect
1:17:50
Speaker 4: on the contract, and you can negotiate a flat feed.
1:17:54
Speaker 4: As an buyer, I have had this happen to me
1:17:56
Speaker 4: a lot because I represent a lot of sellers, and
1:17:59
Speaker 4: so they'll come and say, well, I don't have an agent,
1:18:03
Speaker 4: and so Therefore they think that they're going to save money.
1:18:07
Speaker 4: So the way that I do my listing agreements is
1:18:10
Speaker 4: there's a fee that I'm going to get paid regardless.
1:18:12
Speaker 4: So they come in, they negotiate their fees, they advocate
1:18:16
Speaker 4: on their behalf, and now there's a delay or they
1:18:18
Speaker 4: let's say they're asking for certain things during the home
1:18:20
Speaker 4: inspection period. Well, they're asking me, how do I read
1:18:24
Speaker 4: this home inspection or what should I ask? I'm sorry,
1:18:27
Speaker 4: I don't represent you. I represent the seller. You are
1:18:30
Speaker 4: a customer. Tell me what you want me to ask them.
1:18:33
Speaker 4: That's how it goes. Tell me what you want me
1:18:35
Speaker 4: to ask them. I'm not here to advocate for you.
1:18:37
Speaker 4: I don't represent you. When i'm representing the buyer, my
1:18:40
Speaker 4: job is to protect your best interests and save you
1:18:42
Speaker 4: as much money as possible. When i'm represent in the seller,
1:18:45
Speaker 4: I'm there to advocate their best interests and make them
1:18:48
Speaker 4: profit the most money as possible. So if you feel
1:18:51
Speaker 4: like you're savvy enough to understand these contract laws and
1:18:55
Speaker 4: what you read, then try yourself. I can say nine
1:18:59
Speaker 4: times doesn't work.
1:19:01
Speaker 3: Is it a conflicent interest? If the agent represents the
1:19:03
Speaker 3: buyer and seller, I do it all the time.
1:19:06
Speaker 4: It's called dual agency. It's allowed it instead of Georgia
1:19:09
Speaker 4: where the seller is going to be my client and
1:19:13
Speaker 4: the buyer is my customer. I'm always fair, but the advocate,
1:19:17
Speaker 4: but when it comes down to it, I'm advocating for
1:19:21
Speaker 4: the person that hired me and that's paying me the compensation,
1:19:24
Speaker 4: which is the seller. And that's what normally happens a lot.
1:19:27
Speaker 4: So when sell when when they're coming saying, hey, I'm
1:19:30
Speaker 4: going to save you some money, and then they're like, well,
1:19:33
Speaker 4: what's going on in the contract? The way I broke
1:19:35
Speaker 4: down due diligence periods, financing contingencies, nobody's breaking that down
1:19:39
Speaker 4: to you. I hope that you know what those periods are,
1:19:41
Speaker 4: because if I'm representing the seller, I'm going to make
1:19:44
Speaker 4: sure that by the time you if you submit your
1:19:46
Speaker 4: inspection a day after the due diligence period, I'm going
1:19:49
Speaker 4: to tell you sorry, thank you for providing us with this. However,
1:19:52
Speaker 4: you're due. The diligence ended yesterday and we don't have
1:19:55
Speaker 4: to make any changes. You want to terminate, you can terminate.
1:19:58
Speaker 4: We're going to retain your twenty five thousand dollars earnest money.
1:20:01
Speaker 4: I wish you the best on your home buying journey.
1:20:04
Speaker 4: That's how it goes. So you're not saving, but you
1:20:07
Speaker 4: you only you know accesster rists, Accester, riss.
1:20:11
Speaker 1: Here's one of those things and people get disconfused. Right
1:20:14
Speaker 1: when we think about real estate, we think about our
1:20:16
Speaker 1: pathway to home ownership. People will sign the title, some
1:20:20
Speaker 1: people end up on the deed. Talk about the difference
1:20:23
Speaker 1: between the two, because there is a difference and if
1:20:26
Speaker 1: you end up on one or the other, it could
1:20:28
Speaker 1: determine a lot of things in your future.
1:20:30
Speaker 4: Well, what happens is this, people always want to be
1:20:32
Speaker 4: on the title and the deed. When you're buying the
1:20:35
Speaker 4: property and you it's in your name, right, you finance
1:20:38
Speaker 4: it through the mortgage company, you get it all finance.
1:20:40
Speaker 4: You're going to be on the title. That's how State
1:20:43
Speaker 4: of Georgia is. You're going to be on the title
1:20:45
Speaker 4: and on the deed. But let's just say you're married
1:20:49
Speaker 4: and the wife is not on the mortgage, but the
1:20:51
Speaker 4: wife wants to be on the deed. Like Tyler Perry say,
1:20:54
Speaker 4: make sure your name is on the d cool you
1:20:58
Speaker 4: add the wife to the deed. The benefit is if
1:21:01
Speaker 4: you cannot sell the asset. Without both people that are
1:21:06
Speaker 4: on the deed signing off, you cannot sell it. But
1:21:10
Speaker 4: let's just say you go into foreclosure. Both people that
1:21:14
Speaker 4: are on the deed are now in foreclosure, even though
1:21:18
Speaker 4: the person that's on the deed is not on the mortgage.
1:21:21
Speaker 4: So the upside is, Okay, I'm going to make sure
1:21:24
Speaker 4: I'm on the deed because he ain't gonna make no
1:21:26
Speaker 4: changes without me. Forget that that works. But then if
1:21:29
Speaker 4: a negative change happened, it also affects you negatively as well.
1:21:33
Speaker 4: So consider that when you're adding yourself to the deeds,
1:21:37
Speaker 4: it's like you do have the responsibility as long as
1:21:40
Speaker 4: the mortgage is in good standing. It doesn't show up
1:21:42
Speaker 4: in your name. And that's how people try to kind
1:21:45
Speaker 4: of house haack marriages. I don't know how to explain it,
1:21:47
Speaker 4: but like offset the debt, So like the husband can
1:21:50
Speaker 4: buy the primary property, the wife can buy the secondary property,
1:21:54
Speaker 4: and it's offsetting the debt. But in the event, in
1:21:58
Speaker 4: the event there's a foreclosure or bankruptcy, everybody on that
1:22:02
Speaker 4: deed is responsible.
1:22:05
Speaker 2: So okay, there's a lot of information, valuable information. And
1:22:09
Speaker 2: then like I said, I think we kind of you
1:22:11
Speaker 2: know it's realistic, but I don't want to discourage people
1:22:13
Speaker 2: from buying a home because it is still, you know,
1:22:16
Speaker 2: a valuable asset that goes up over the course of
1:22:19
Speaker 2: time as long as you buy correctly. But it is
1:22:20
Speaker 2: important to buy correctly, and it's important to actually use
1:22:23
Speaker 2: professionals so you don't make mistakes. You know, we're using
1:22:26
Speaker 2: the wrong lawyer, using the wrong real estate attorney, using
1:22:28
Speaker 2: the wrong anybody that's in the process can actually cost
1:22:31
Speaker 2: you hundreds of thousands of millions of dollars of mistakes.
1:22:34
Speaker 2: So you you know as far as you actually are
1:22:38
Speaker 2: in the field. So I would say the last question
1:22:41
Speaker 2: I would would go to, how can somebody know if
1:22:46
Speaker 2: they're using somebody that's good as far as a real
1:22:49
Speaker 2: estate professional agent? Obviously they should use you if they're
1:22:52
Speaker 2: in the Atlanta eight if they're didn't a metro area,
1:22:57
Speaker 2: And I'll let you say your information, But what are
1:23:00
Speaker 2: some things that you shouldn't ask a real estate agent
1:23:04
Speaker 2: or somebody in your profession to know, Like this is
1:23:07
Speaker 2: the person that I want to work with.
1:23:09
Speaker 4: I think oftentimes we're going too quickly. If I was
1:23:12
Speaker 4: a buyer in this market and the agent that wanted
1:23:14
Speaker 4: to represent me on the largest purchase of my life,
1:23:17
Speaker 4: didn't have the time to sit down with me and
1:23:20
Speaker 4: explain to me the purchase and sell agreement, which is
1:23:23
Speaker 4: something you're going to see this as you're writing offers.
1:23:26
Speaker 4: You may write four different offers on four different houses.
1:23:28
Speaker 4: And if they've never explained to you the simple purchase
1:23:31
Speaker 4: and sell agreement and the contingencies and the timelines in
1:23:34
Speaker 4: your state, whatever your state is, your agent should be
1:23:37
Speaker 4: able to tell you at what point do you get
1:23:39
Speaker 4: your money back or what point do you not get
1:23:41
Speaker 4: your money back, so you're very aware of the contingencies
1:23:45
Speaker 4: of the agreement. Then they also need to have an
1:23:48
Speaker 4: understanding of appreciation value. So whatever area you're looking to
1:23:51
Speaker 4: purchase in, they should be able to tell you what
1:23:54
Speaker 4: the appreciation values are in the area and what the
1:23:56
Speaker 4: market trends are in the area. That way, you're actually
1:23:59
Speaker 4: going into an area where your asset is going to
1:24:02
Speaker 4: appreciate and you're going to see more value. They should
1:24:05
Speaker 4: know that. And then beyond that, you should make sure
1:24:08
Speaker 4: they don't have what we like to call commission breadth.
1:24:11
Speaker 4: And it happens all the time, someone trying to force
1:24:14
Speaker 4: you to hurt and make a decision because they need
1:24:16
Speaker 4: the commission. We are all salespeople, but we should be
1:24:20
Speaker 4: advocates for our clients, so you should feel like they're
1:24:22
Speaker 4: advocating on your behalf at all times, actually as a buyer,
1:24:26
Speaker 4: fighting to save you money and showing you the proof
1:24:29
Speaker 4: of them trying to save you money emails, text messages, advocating,
1:24:32
Speaker 4: letting the seller know who you are, why you deserve
1:24:35
Speaker 4: to get this concession, what's wrong with this property. Getting
1:24:38
Speaker 4: a mass negotiator is so important because it saves you
1:24:42
Speaker 4: thousands of dollars. Because I can tell you sellers are
1:24:44
Speaker 4: not just going to give you anything. So you should
1:24:47
Speaker 4: look for all of those qualities when you're looking to
1:24:50
Speaker 4: hire an agent and ask them, can you show me
1:24:53
Speaker 4: your track record of sales? Like, what is your track
1:24:56
Speaker 4: record of sales? I think it's okay to ask that
1:24:59
Speaker 4: question and look them up. I always tell people you
1:25:02
Speaker 4: can google me. I forget social media. You could go
1:25:06
Speaker 4: to Google and you can see my reviews right there. Somebody,
1:25:11
Speaker 4: what other people say about you is more important than
1:25:13
Speaker 4: what you say about yourself. And I just wouldn't trust
1:25:16
Speaker 4: someone that I didn't feel like had my best interest
1:25:18
Speaker 4: at heart. I know they're getting paid, but they're getting
1:25:20
Speaker 4: paid to perform a service, and that service is to
1:25:23
Speaker 4: advocate on my behalf, save me money, and get me
1:25:26
Speaker 4: in an asset that is going to be a positive.
1:25:28
Speaker 3: Asset for me.
1:25:30
Speaker 1: Aka Keanus says she popping in real life. Y'all god like.
1:25:35
Speaker 1: But you know what, I'll end with this. A lot
1:25:37
Speaker 1: of people, and we run to a lot of people
1:25:40
Speaker 1: all the time. They look at real estate as the
1:25:43
Speaker 1: place that they're going to go when their career, you know,
1:25:45
Speaker 1: may not be something that they thought it would be.
1:25:47
Speaker 1: I'm going to get into real estate because they think
1:25:49
Speaker 1: it's a way to make money, and they think it's
1:25:51
Speaker 1: an easy way to make money. I've seen you work,
1:25:54
Speaker 1: I've seen your agent's work, the amount of dedication that
1:25:58
Speaker 1: y'all put into it. What's your advice for people getting
1:26:02
Speaker 1: into this space. What's the things that the misconceptions that
1:26:04
Speaker 1: they should know.
1:26:06
Speaker 4: Oh, and like MJ says, count is your fault. It's
1:26:09
Speaker 4: your fault. You're floating in the room, You're wearing jackets
1:26:12
Speaker 4: on your shoulders. I'm doing it right now. I give it,
1:26:15
Speaker 4: I'll take I will take full responsibility. I'm a glamour person.
1:26:19
Speaker 4: Whether I was selling real estate or whether I was
1:26:20
Speaker 4: working at the McDonald's rippery. This is who I am
1:26:23
Speaker 4: as a person. But the knowledge that I have about
1:26:25
Speaker 4: the market, my invested interest in understanding real estate and
1:26:29
Speaker 4: all fasts of real estate, that is something that you
1:26:32
Speaker 4: want to have when you get in here. Seventy five
1:26:35
Speaker 4: percent of agents last year didn't even close a deal.
1:26:37
Speaker 4: They're leaving the industry because the influx of people that
1:26:41
Speaker 4: came when we had the pandemic, and what happened was
1:26:44
Speaker 4: there were more buyer demand, interest rates were low. All
1:26:47
Speaker 4: you had to do was post a picture with your
1:26:48
Speaker 4: arms crossed and boom you could get a client, and
1:26:51
Speaker 4: everybody was just trying in a frenzy. Now it's like
1:26:54
Speaker 4: the cream of the crop is coming to the top.
1:26:56
Speaker 4: And because of that, if you want to get into
1:26:58
Speaker 4: this industry, take it seriously. Know that it requires way
1:27:01
Speaker 4: more due diligence, way more negotiation skills than it did before.
1:27:05
Speaker 4: And it's not something that I would say would be
1:27:07
Speaker 4: I'm getting into real estate because this is my way
1:27:11
Speaker 4: out of where I'm at. When if seventy five percent
1:27:13
Speaker 4: of licensed real estate professionals that actually closed a couple
1:27:16
Speaker 4: of deals couldn't close the deal last year. I hope
1:27:18
Speaker 4: that you come into this industry with a different mindset,
1:27:21
Speaker 4: that I'm ready to serve the best interest of people
1:27:24
Speaker 4: and advocate on their behalf and understand the contracts, understand
1:27:29
Speaker 4: the contracts and be able to negotiate. Don't come here
1:27:32
Speaker 4: thinking it's a cute picture and I'm walking around with
1:27:35
Speaker 4: a Chanelle bag and some lubatants all day. That is
1:27:38
Speaker 4: just not the reality of what really happens behind the scenes.
1:27:41
Speaker 4: And if you don't get a good grasp on both.
1:27:44
Speaker 4: I tell people that social media post is to grasp
1:27:46
Speaker 4: your attention. I need something, you gotta yeah, press the
1:27:49
Speaker 4: button in my bio. But when you reach out and
1:27:52
Speaker 4: you go through my system, and you go through my admin,
1:27:54
Speaker 4: and I go through my onboarding process, and I explain
1:27:57
Speaker 4: the contract, I explained the liabilities of the kind. I
1:28:00
Speaker 4: make sure you understand exactly what you're getting into. I
1:28:04
Speaker 4: am like a human computer working on your behalf to
1:28:07
Speaker 4: protect your best interest. As you're buying a home, you
1:28:10
Speaker 4: can't you can't be a hobby. This can't be a
1:28:13
Speaker 4: hobby for you. This is people's livelihood that they're investing in.
1:28:17
Speaker 4: They're using that last twenty thousand or thirty thousand. The
1:28:20
Speaker 4: least you can do is be educated and make sure
1:28:22
Speaker 4: that you're advocating for them. So if you want to
1:28:24
Speaker 4: get in this industry, I don't discourage anybody, but take
1:28:27
Speaker 4: it seriously.
1:28:29
Speaker 3: How can people find you and how can people work
1:28:32
Speaker 3: with you?
1:28:33
Speaker 4: You can find me on social media. My name is
1:28:35
Speaker 4: Keanu Watson. You can link in my bio, go to
1:28:38
Speaker 4: my website Keanuwatson dot com. Everything is Keanu Watson. It's
1:28:42
Speaker 4: easy to find. Go to my website, click my contact
1:28:45
Speaker 4: page call me for zero four nine eight three sixty
1:28:47
Speaker 4: three eight zero. We are ready to work with you.
1:28:50
Speaker 4: I have my agents here at Watson Realty Code. We
1:28:54
Speaker 4: work with all price points, all budgets, investors, first time buyers,
1:28:58
Speaker 4: luxury clients, listings, developers, you name it, we can service it.
1:29:01
Speaker 4: So we look forward to you guys reaching out to us,
1:29:03
Speaker 4: especially in the metro Atlanta area.
1:29:05
Speaker 3: Is it outside of Atlanta or just Atlanta?
1:29:07
Speaker 4: Oh no, worries, See I got you have a training
1:29:10
Speaker 4: academy of over fifteen hundred agents throughout the nation, some
1:29:14
Speaker 4: or even in Jamaica, and have some people outside of
1:29:17
Speaker 4: the country Toronto. So with that being said, no matter
1:29:19
Speaker 4: where you're looking to purchase the home, if you reach
1:29:21
Speaker 4: out to me, I can connect you to a licensed
1:29:23
Speaker 4: agent that has been through my training, that actually understands
1:29:26
Speaker 4: the process and they're looking to advocate and serve your
1:29:28
Speaker 4: best interest. So make sure you contact me for whatever
1:29:31
Speaker 4: state you are. So I just sent someone a referral
1:29:33
Speaker 4: to Dallas, one to Miami. I sent another referral to
1:29:36
Speaker 4: another client looking in Birmingham. And New Jersey's on a lot.
1:29:39
Speaker 4: I tell you I got such I have to go.
1:29:42
Speaker 4: The only reason I do my events in DC is
1:29:44
Speaker 4: the middle of New Jersey. So I always tell you, got.
1:29:47
Speaker 3: Me somebody in New York.
1:29:49
Speaker 4: Oh, y'all forget y'all did get you somebody in New
1:29:51
Speaker 4: York and they was in my training academy.
1:29:52
Speaker 2: So yeah, so you definitely connected. And yeah, Keana is
1:29:56
Speaker 2: somebody that you know, definitely has been a one from
1:29:58
Speaker 2: the beginning. Always appreciate you coming in and dropping information.
1:30:03
Speaker 2: But you're in the home buying process or you're looking
1:30:06
Speaker 2: to rent too, I think can you help people that
1:30:08
Speaker 2: we rent?
1:30:08
Speaker 3: I think your agents absolutely.
1:30:10
Speaker 4: Yeah, my agents can assusu you with rentals. I think
1:30:12
Speaker 4: that that's a bridgeway. Everybody is not in a position
1:30:15
Speaker 4: to purchase. Who are we to judge? I think that
1:30:18
Speaker 4: we all need housing, and that's our job an advocate
1:30:20
Speaker 4: as real estate professionals is to give you housing and
1:30:23
Speaker 4: make sure you understand how that works.
1:30:26
Speaker 3: Or if you're looking to sell your home, you might
1:30:28
Speaker 3: need help too, So.
1:30:29
Speaker 4: Absolutely are you're gonna need help to sell it. I'm
1:30:31
Speaker 4: gonna tell you that right. You will need help. We
1:30:36
Speaker 4: represent buyers and sellers. You will need assistance, and mostly
1:30:40
Speaker 4: you guys can see if you look me up. I
1:30:41
Speaker 4: work with a lot of developers. They're developing building, which
1:30:44
Speaker 4: is why I'm pretty abreast of the building process. So
1:30:47
Speaker 4: even if you're looking to build a custom home or
1:30:48
Speaker 4: you want new construction, I can assist you there as well.
1:30:51
Speaker 1: Yes, there you have. Congratulations on all all the developments
1:30:55
Speaker 1: that we've been watching on social media as well.
1:30:57
Speaker 4: I know, oh I knew your wife. I'm here, I
1:31:02
Speaker 4: know who's watching it. Why are you making those design selections?
1:31:05
Speaker 4: They look good?
1:31:08
Speaker 2: Yeah? Always a pleasure. All right, thank you guys for rocking,
1:31:13
Speaker 2: listen listening. We'll see you guys back here next week.
1:31:16
Speaker 2: Hopefully you got your pins and pads and watch this
1:31:19
Speaker 2: episode a few times so you can get all the
1:31:21
Speaker 2: information that's important and download the app for the podcast
1:31:27
Speaker 2: app too if you listen on the audio side on
1:31:30
Speaker 2: iTunes of Spotify.
1:31:31
Speaker 3: But all right, guys, spin Rail Peace Bye.
1:31:35
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