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The Hidden Real Estate Opportunities Nobody Is Talking About · The Jon Sanchez Show

• Jon G. Sanchez, CEO: Good Tuesday afternoon to you. Welcome to the Jon Sanchez Show on Newstalk It's a pleasure to be with you and a pleasure to be with my co-host. Round the horn we shall go. Mr. Dwight Millard on Q Home Loans. How are you, my friend? Dwight Millard: I'm doing fantastic, Jon. As always, how are you? Jon G. Sanchez, CEO: Fighting the battles doing great fighting the battles each and every day. That's all we can do man. That's all we can do. I gotta be honest with you. When I was jotting down my notes of where the 30 year mortgage closed at today, I'm like 629 and that's down. I'm taking your thunder away down seven basis points. So you guys were like 635 or so the other day. 634 635. Dwight Millard: Okay, I know. Keep that smile going, right? Yeah. Yeah, yeah, yeah. I mean, isn't that crazy? And just less than probably two weeks ago, a little over two weeks ago, about this time two weeks ago, we were at 599. So that's amazing how fast it goes up. Jon G. Sanchez, CEO: Holy moly. Crazy. Yeah, amazing, amazing. Well, love to get your take on it ahead of tomorrow's. Yep, yep, I'd love to get your take on it as we get close to tomorrow's FOMC interest rate decision. We'll tell you what everybody is predicting on that side of it. But let's bring on our other co-host of the day was Aaron Clark of Edrylity. How you doing biggie? Yeah, no kidding, I'm not. Aaron Clark, Edge Realty: I'm doing great. Enjoying the weather. 85 this week. Did you see that? We should be golfing. Can we do our show like on the golf course on that day? Jon G. Sanchez, CEO: Golfing out on a boat. Yeah, any anything. I was just talking to a buddy of mine right before the show lives in outside the Atlanta area and he's like, yeah, about 40 degrees right now. It's getting down to 20 degrees at night. I said, well, we've kind of slips, you know, a flip flop because that's normally the way it is here in Northern Nevada this time of year. And yeah, it's crazy weather across the country. Absolutely crazy weather. My goodness. ⁓ So Aaron Clark, Edge Realty: It's definitely pushing the real estate market into spring mode for sure. Yeah. Jon G. Sanchez, CEO: I was going to say, yeah, it's gotta be bringing people out that are like, nope, not waiting around for, you know, quote the snow to melt because there is no snow and are probably not going to get any, maybe one more little dusty, but I don't think anything major is going to come our way for the rest of the year, which where is the heck out of me because this is melting the snow very, very fast for us farmers that we don't like to see that. So, but yeah, is that what you're seeing at this point? Are people starting to come out of the woodwork? No kidding. Aaron Clark, Edge Realty: Yeah, there is no snow. Oh yeah, definitely. And a lot of sellers that were waiting for that springtime to come and the grass to turn green and the flowers to bloom, they're like, it's happening, get the photographer here. Yeah, so definitely happening. Jon G. Sanchez, CEO: Yeah. It's happening. ⁓ my gosh. Incredible. Incredible. Yeah. Wow. Fascinating. Well, love to get your take on that in more detail we go down the hour here. All folks, let me tell you what we have lined up. We're going to give you the stock market recap, of course, which really was a very interesting day, which I'll absolutely take it. knows we've had share of volatility here lately. Even the president spoke today out of his office and Rubio and JD Vance, everybody sitting by his side, ⁓ just talking about how upset he is and disappointed that not seeing ⁓ many allies to the rescue of his plan of wanting other countries to ⁓ help assist ships through the Strait of Hormuz. So ⁓ he had pretty harsh words about that and ⁓ oil spiked little bit on the news, but then back down. Oil wasn't a major factor. Matter of fact, we only gained $2.70, 96.65 a barrel. We actually broke $100 again overnight, but that seems to be what's two days in a row. happened Sunday night, happened last night. We're seeing oil break above 100, and as we're tucked into our biz, but oil pretty much trades 24-7. And then the market rolls around, and we're like, okay, that usually backs down into the high 90 range. And I think, guys, I think if we can get this oil to settle, anywhere around high 70s, low 80s. Frankly, I hate to say this, but I don't think anyone's really gonna be thinking much about the war or what goes on when some outlier story happens. It's just, people become accustomed to it. Again, I'll be 100 % transparent. I am shocked, absolutely shocked that this market is holding up as well as it is with these oil prices where they are. But it's not so much the oil side of it, it's just everything that's looming. mean, UAE got attacked again today, another major attack. Aaron Clark, Edge Realty: Yeah, me too. Jon G. Sanchez, CEO: just everything going on and on. And something that the president said that back that meeting that had that kind of concerns I don't know if you guys saw this, he said he was disappointed. He contacted basically the UK and said, look, we need some help. We've put the call to all our allies and NATO and ⁓ so on and so forth to help But what we really need is we need some minesweepers. I think they offered an aircraft carrier. So he's like, no, we don't. ⁓ We don't need your aircraft carrier. We need minesweepers. I thought to myself, is that really something that you want to say to the world that we're lacking minesweepers? Because ⁓ minesweepers, there are going to be no ships that are moving, right? There's been a few that have trickled out. There are going to be none. And so if Iran and you're hearing that, and you're going, OK, so they don't have a lot of minesweepers, ⁓ we how to hit them. That's exactly right. So I don't I didn't see anybody else make any comment about that. Aaron Clark, Edge Realty: Ha! We know how to hit them. Yeah, exactly. Jon G. Sanchez, CEO: Yeah, I thought that that was interesting that that was the case there. anyways. Yeah. Aaron Clark, Edge Realty: Well, do you think, Jon, that because I know we've talked about in the past, but because trading has become more out algorithmic, I don't even know if that's a word, but you less people that are getting in and doing things emotionally in response since, let's say, maybe 10 years ago when something like this would have happened or. Jon G. Sanchez, CEO: I think you have a very valid point, but I think the other thing too, people realize that in a worst case scenario, are a net exporter of oil, we're not a net importer anymore. And that's one thing, Aaron, that's really changed a lot since the last oil crisis ⁓ we've had in the past, we relying upon bringing oil, oil in, importing oil in, that doesn't make sense, importing oil, now we're a net So I think in the back of people's minds, going, hey, know what really hits the fan? ⁓ we've got enough oil here at home that we can do it ourselves. We can take care of our country, which was the whole idea behind it. I think you hit that factor. But back to the algorithms, I think that's a great point you bring up. I think people now, and I'll it down, we gotta look at two classes of investors. We gotta look at the retail investor, then we have to look at the institutional. The retail investor, they're not really I mean, our phones are not ringing of clients being panicked about what's going on. Hopefully, it shows we're doing a good job and having more diversified and. ⁓ They hear the show every day, they know what's going on. But normally, years past when you had a war going on, people were very nervous. You'd get a few clients here and there like, ⁓ you what, I don't care, I'll grab my portfolios, get me the heck out. I just don't want to be a part of it. That's just not happening. It's just not happening. So I think the retail investors are very calm. They're continuing to what they do because as you and I and Corey and all of us have about, as long as they have job, as long as they're not seeing their 401k Aaron Clark, Edge Realty: Mm-hmm Jon G. Sanchez, CEO: plummet 10, 20%. They're going, hey, you know what? I'm OK. I can live through this. And yeah, it hurts a little bit at the gas pump, but hey, it's temporary, and so on and so forth. I think the is not panicking whatsoever. None of the data we're receiving is showing the consumer's panicking. University of Michigan consumer numbers or consumer sentiment numbers, none of is showing the consumer's panicking. So retail investor doing Institutional side, you know what? That's where the algos really kick in, Aaron. That's where. ⁓ You've got a lot of algorithmic trading going on in the stock market, obviously in commodities and so on and so forth. And they're the ones that are swinging this market dramatically. what I'm seeing is they're coming in and they're trying to either ⁓ the price up ⁓ really run it down. But there's algo on the other side. Every time they run it up, here comes an algo that brings it down and vice versa. And that's why we're really not getting anywhere. And I think that's why ⁓ you're thinner volume, of course, after hours and overnight. that's why you're seeing it just takes a few ⁓ trades on the buy side to jump that price back up above 100. And when the human beings sit down at their desk, the commodity traders, the morning, they're like, you know what? No, we're going to bring this thing back down. ⁓ it's yeah, you really are. You really are. Because remember, the algos are programmed. If this happens, we're going to buy. If this happens, we're going to sell. The human being sits down and goes, OK, wait a minute here. Aaron Clark, Edge Realty: So really you're seeing the offsetting sort of numbers going in. Yeah. Sure. Jon G. Sanchez, CEO: We know the straight's going to get opened eventually. Trump's asked for a lot of countries to help, even though no one's really stepping up to do As a human being, we rationalize. We look at the positives, we look at the negatives, then we make a decision. ⁓ think the human emotionist side says, ⁓ let's keep the soil under 100 bucks. The algorithms, of course, they have no feelings. They want to run it up or do they want to do for whatever reasons, because all they are is they're just programmed. If this happens, run it up. If this happens, sell it off. It's real interesting marketplace to be in. Aaron Clark, Edge Realty: Yeah. Yeah. Jon G. Sanchez, CEO: Controls what? Aaron Clark, Edge Realty: The big swings you mean? Jon G. Sanchez, CEO: gosh, the institutions. hands the institution. ⁓ yeah. Exactly. ⁓ Yeah, I'm trying to the stat. I'll look it up at the break, but ⁓ if I remember, hold me to it, I think 70 % plus of all trades just on the New York Stock Exchange are done by institutions, ⁓ right? In ⁓ trading, right? algorithms and things. ⁓ Retail investors don't the algos. Yeah. I mean, few people but. Aaron Clark, Edge Realty: Yeah, I would assume it would be high. Jon G. Sanchez, CEO: Correct, that's right, that's right, because there's no emotion, right? And that can be the positive side to algorithmic trading, right? There is no emotion, you can't go, ⁓ my God, ⁓ you have, algos are just gonna go, yep, if this happens, we're gonna do this, if that happens, we're gonna do that, and you go from there. So it's interesting dynamic, guys, it really is. ⁓ Aaron Clark, Edge Realty: Now did you see the article that was talking about how they're like rolling oil blackouts in various countries to conserve on oil and gas? Yeah, I thought that was pretty interesting. Jon G. Sanchez, CEO: Yeah, I did. I talked to it. I think I mentioned this on the show last week here. And I talked to a client who spoke with somebody, relative or a friend or somebody in China. And they said, and I haven't seen this on the news, but they said the lines are like a mile long, quote, quote, in China to get fuel. we're not seeing that. Because you've to remember, China gets 90 % of their oil coming through the strait. 90 % of their oil. Aaron Clark, Edge Realty: Mm-hmm. ⁓ yeah. But you would think you would get more effect from the economics of these other countries being so loud in their sort of doom and gloom scenarios that would cause big swings. But like you said, market isn't reacting like you would expect. So I find that fascinating. Jon G. Sanchez, CEO: Right. Right. Not at all, not at all. I'll be honest again, my and I think I mentioned this when I did the weekly recap on Friday, my fear is there something looming out there? ⁓ My gut me after doing this for so long, I can't see that we're going to escape this with just this damage. mean, until ⁓ coming into this trading we were down just, I'll round up the numbers, roughly 5%. Aaron Clark, Edge Realty: Mm-hmm. Jon G. Sanchez, CEO: 5%, that was it from our highs, all time highs. We're not that far away, right? And we saw some big moves yesterday and so on and so forth. So we could get back to that. And again, it's just all the cards are lining up for this to be a good sell-off. I keep saying this market is very posed to have a flush, right? That's where, once again, you get one of these dramatic 1,500, 2,000 plus point drop days just out of the blue. And that's one of the big fears that I have that we haven't had that during this time period. Aaron Clark, Edge Realty: Yeah. Jon G. Sanchez, CEO: And there's a lot of issues. I this is a global situation. This isn't just one country. This is one country that's you know, getting 21, 22 % of the world's oil supply and, you know, can't get the ships really moving at this point. So I don't know. hope I'm, this is one time I absolutely hope that I'm wrong. Please trust me. I hope I'm wrong, but it just feels like this has been too easy. You know, just way too easy. When we started bombing the... Aaron Clark, Edge Realty: Yeah. Jon G. Sanchez, CEO: island, ⁓ big shipping terminal on Friday. thought, okay, here's where it goes. The other part that's got me a little concerned, we sent 5,000 Marines. Okay, what's going Why are we sending 5,000 Marines there? Are we gonna do a ground assault, which is, God forbid, whole other significant chain of that none of us want to live through again, right? We've seen that before, so. Aaron Clark, Edge Realty: Yeah. Jon G. Sanchez, CEO: Yeah, so it's a lot of moving parts at this point. But real quickly, before we go to break, let me tell you what we have lined up. is focused on home prices and interest rates, right? hear Aaron, you hear Dwight talk about this every single week. But a little thought for you. What if the biggest real estate opportunities right now are sitting there right underneath our noses and no one's even talking about them? ⁓ Aaron a phenomenal job a few weeks ago. We kind of talked about pocket listings and some other things. But what we're going to do today is the boys are going be uncovering some hidden ways that you as a real estate investor, we're not talking your primary home, we're talking as an investor can make some money in this market, right? Because those who see it early can obviously have a major advantage. And as Aaron said, they're coming out of the woodwork. I hope you've been listening to these guys' advice for the last month. This is going to be an early buying season. Get ready sellers, get ready buyers. And you just heard Aaron mention it. It's already happening because of the warm weather that we're getting. if you, you want to get into something, this is the time. Dwight, of course, is going to tell us about mortgage rates when we come back, his strategy on that. will tell us about his strategies and how we uncover some of these homes that, Aaron mentioned a few weeks ago, we're going to go a whole different direction with him. A of that don't even make it to the MLS listing. Usually those aren't the big deals, the big savings. But he's got some good ideas for you. We'll share that with you when we come back. Let's turn it over to Kristin Snow. She's in the Right Now Traffic Center. Kristin. Welcome back to the Jon Sanchez Show on Newstalk 780KOH with Dwight Mellard of OnCue Home Loans and Aaron Clark of Edge Realty. Alright, like I said, kind of boring session today. Man, oh man, need some action here. 47 point gain is all on the Dow closing. Yeah, I know, yeah, that's truth, I know. Glenton for punishment, you think I'd have enough of it for the rest of the year after what we've gone through these last few weeks. 46,993 is our closing level of the Dow. Nasdaq rose just 16, a quarter percent. Nasdaq... Aaron Clark, Edge Realty: Careful what you wish for. You Jon G. Sanchez, CEO: Looking a little bit better, 105 point gain, .47%, and up about .67 % on the Russell 2000. So I said oil up $2.70, 96.65 a barrel, $7.20 gain in gold, $5,007.50. Down two basis points on the 10-year at yield of 420. And Mr. Millard, again, I apologize. I'll let the cat out of the bag on your mortgages. Go over that again, please. Yeah, yeah, you are. But you didn't have a word a couple of weeks ago. So I've got a question for you. All right, so we have a Fed interest rate decision tomorrow. Wall Street's like, obviously nothing's going to happen. I think Jerome Powell, of course, these are winding down to his final meetings. I think he's going to do everything to kind of keep the markets calm. And obviously, know, the Fed's looking at data that is not the month of March's data when this war started, so we can't see any impact to inflation or anything like that due to higher oil prices. So I think they're going to say we're data dependent. We're going to see what the March data looks like April, come May, that type of thing. And ⁓ not going to do anything at this point. But involved in a lot of different bond and mortgage services. You have 40 years of experience. What do you see? are you hearing from your counterparts, et cetera, where these rates are going to go now that this has changed? The Fed out of the picture. December is what I'm hearing right now if anything and that's less than a 50 % probability as of a couple days ago I haven't seen the last couple days but bottom line Let's just say if you're lucky one cut this year if if not lucky, But we have Kevin Warsh, of course the new if he gets a confirmed, course He may surprise us as I said I wouldn't be shocked if he sat down at Jerome Powell's desk or which will be his new desk and cut rates the first day on the job to do especially if this war is still going on, ⁓ but are you hearing right now? I what's the in the industry at this point? Right. Are you? Mmm. Mm-hmm. Mm-hmm. All right. Everything came to a halt. Aaron, I want to go up north with you real quick before we go to break. I want to go up to the state of Washington. Their Senate over the weekend passed the new millionaire tax. Now it still has to go to their house and then to the Supreme Court. So it's a few years away. This is terrifying that I think this is something, what we've seen in the past is when something gets passed in a large state like Washington or definitely California, it just seems to. Aaron Clark, Edge Realty: Yeah, I that. Jon G. Sanchez, CEO: kind of spread across the country to democratic controlled states. So the reason, what I want to ask you is, so there's supposedly only about 20,000 people that make more than a million dollars in the state of Washington. They're now going to be paying nearly a 10 % tax. Okay? If you make a billion, then I think it jumps up to 20%. They're saying, you know, a lot of businesses, I remember we got Amazon headquarter there, we got a lot of big businesses that are saying, uh-uh, not us. Aaron Clark, Edge Realty: Mm-hmm. Jon G. Sanchez, CEO: But they're also seeing a lot of people that are starting to pack their bags and is talking about it until, you know, probably not going to do much till the Senate passes it or the House passes it. But are getting any calls? The point I'm getting to any calls whatsoever from people moving from Washington to Nevada. Aaron Clark, Edge Realty: No, not so much as direct result of that. Historically, yes, see Nevada sort of a haven, especially just as Californians done so over the past few years, since COVID. But I do suspect that as of these states are changing rules and regulations where it's going to cost people more money to do business and live there, et cetera. Jon G. Sanchez, CEO: Mm-hmm. Mm-hmm. Aaron Clark, Edge Realty: that they're going to be attracted to Nevada. We've seen it. Nevada is a net positive population increased state, to that as a whole, comparison to every state in the US, it's a big statement to say that. I mean, there's only like, I think the last time I looked, there's only a handful. Jon G. Sanchez, CEO: Right? It is, you're right, that's a point. Aaron Clark, Edge Realty: that are net positive. And for those that don't know, that means that we're getting more people coming in than are leaving. And it's a positive number of growth. because of that, I think we're here to stay. I think we're gonna see that growth. Absolutely. Jon G. Sanchez, CEO: unless we turn around and do the same thing. ⁓ Aaron Clark, Edge Realty: Yeah, if we do the same thing, then I mean, I don't know. You might see people leave, but if we do the same thing, we might be the last ones to do it to where people are like, well, I'm here now. Where else am going to go? You know, so it does worry me. Yeah. Jon G. Sanchez, CEO: Well, yeah, I mean... Yeah, I know, I know. It worries me, anything's possible. Yeah. Yeah. Well, you know, guys, this boils down that we got to run this boils down to what we've talked about so many times. And that is you look at the amount of job losses. mean, just met a yesterday said they're going to get rid of 20 % of their workforce. equated that to almost a over 15,000 people, right? On top of the similar size that did last year, right? And they said, because they're spending so much on AI ⁓ and what said over and over again, yeah, we look it ⁓ from a Wall perspective, we look at it. ⁓ my gosh, this company announced the layoff. That one did that one did, but you know what? No one talks about. the cities, the counties, the states, the governments that no longer have that revenue, right? From the payroll taxes and obviously the sales taxes and everything else that a human being, a working human being contributes to the society. So think you're going to see more and more. We've heard it here locally. You're hearing it now from other states that they're financially hurting. They're running deficits. And so if that continues, we know the job losses are, ⁓ just scratched the surface. I said on the show yesterday, I'm so confident we're going to see. Our normal is going to be a 10 % unemployment rate when AI really kicks in. what are these states, counties, governments going to be doing for revenue? There's only one thing they can do. That's if they don't have a state tax, they start one. Or if they have a state tax, they bump it up and their money like they always do from the higher income people. mean, Democrats trying to put in through a rule now that if you make ⁓ $45,000 or less, you pay zero income tax. That's what this. the Senator's trying to push through the Senate right now. are gonna change, right Aaron? On AI, mean, you're as dialed in as I am on it. It's changing the marketplace in more ways than one. ⁓ is. All right, when we come back to hidden real estate opportunities no one's talking about, Aaron's gonna enlighten us as well as Dwight. It's turned over to Jack Saban for News, Traffic and Weather. Hello, Jack. Aaron Clark, Edge Realty: ⁓ it's crazy. Yeah. It's scary. Jon G. Sanchez, CEO: Welcome back to the Jon Sanchez Show on Newstalk 780KOH with Aaron Clark of Edgerility, Dwight Millard of OnCue Home Loans, Dwight will be chiming in in just a moment. Let's give you a recap once again of what happened today. 46 point gain on the Dow, or 47, excuse me. NASDAQ rose 105 and the S &P up 17. All right, we're gonna get to our topic today. The hidden real estate opportunities no one has talked about. You've heard it over and over again from the guys. Look at the best deals that are out there. They're not ones that you're gonna find on MLS or anything. They're gonna be these pocket deals. You have to right now, right? Everyone's in the same boat. Everyone's sitting on the sidelines going, I'm waiting for rates to come down. I'm waiting for housing prices to come down. Aaron had a great opening at the beginning of the show. it looks like spring is here. I mean, we all know that Northern for a while, they'll be shocked. Obviously we have ⁓ another or two. But for the most part, ⁓ I people are now mentally starting to shift, Aaron, into the spring buying mood. So what we're to be talking about is this. Aaron Clark, Edge Realty: ⁓ yeah. Jon G. Sanchez, CEO: We're going start off in talking about the setup, which is you. Let's get into your mind a little bit. Now, Aaron, ⁓ seems to, of course, always be chasing the same deal, right? ⁓ money moves where the other money is not going, meaning they're up the rocks. know, just like what Corey says, you know, he's up at three o'clock every morning searching deals so on and so forth. Let's start off with this. Where let's get right to the bulk of it. are investors? not looking at this particular time here. Aaron Clark, Edge Realty: ⁓ my gosh, what a loaded question. Where they're not looking, it's, well, so here's the thing. Jon G. Sanchez, CEO: I figured I'd get the ball rolling. Aaron Clark, Edge Realty: You brought up a great point as the topic title, which is, you they're not the mainstream deals. So when you have investors that are out there that are looking and they're a little seasoned or they're with somebody that's explaining the process to them, you're not going to find them on Zillow. You're not going to find them on MLS. ⁓ If already hit there, they're in there on the shelves at the grocery store. Everybody's seeing them. Everybody's pushing their cart by them. They know what the prices are. They either want them or they don't. So in order to find those, you have to either be very creative and you to use Jon G. Sanchez, CEO: Yeah. That's right. Aaron Clark, Edge Realty: sort of a whole bunch of answers on various sites and things like that to deduce whatever you're going to deduce that something might be a great investment or not. you got to know somebody or you got to get up at 3 a.m. You got to search all sorts of avenues to do that. And one of the main things right now is searching pre-foreclosures or we call like distressed properties, like, uh-huh, like probates, estate sales, sales, things like that. Because, you know, you have a lot of people, they're not so emotionally invested in it. They're more like just wanting to get Jon G. Sanchez, CEO: Mm-hmm. I want to go down that path. Aaron Clark, Edge Realty: and be done and they're probably gonna have, yeah, they wanna move on. didn't live there in most of those cases, know. Unfortunately, grandma, grandpa, somebody passed away. ⁓ And on probate sale, for example, they passed away and they've got a whole lot of other things on their minds, like, you know, funerals and settling accounts and things like that, that they just wanna be done with the house. So finding things that, searching the paper, looking for obituaries, all that. Jon G. Sanchez, CEO: They want to move on with their life, Hmm. ⁓ interesting. Okay. Yes. Okay, let's stop right there, because you gave me goosebumps as you were saying that. Dwight chime in here. So let's do this probate scenario, because I know Cory loves doing these. All right, so Jon and Mary do, all right? Jon and Mary both finally both pass away, and little Johnny is their son. Little Johnny is the only sibling, or only child, he inherits the house. Aaron Clark, Edge Realty: Yeah. Dwight Millard: you Jon G. Sanchez, CEO: It's definitely not a house that little Johnny wants to live in. now they weren't smart enough. I shouldn't say that's rude. They weren't financially savvy. They weren't educated enough. They didn't listen to the show and therefore they did not have a living trust. So therefore ⁓ home is going to probate. Little Johnny is gonna spend a bunch of money with attorneys and courts and everything else. Now, Mr. Aaron Clark, real estate agent extraordinaire, talk to me your strategy. Aaron Clark, Edge Realty: They weren't educated enough. Yeah, yeah, prepared. Yeah. Dwight Millard: Prepared. Aaron Clark, Edge Realty: Mm-hmm. Jon G. Sanchez, CEO: How do you do that? How do you take advantage of that? Aaron Clark, Edge Realty: So from a buyer perspective, finding those is of the first step of the that, you know, they have to be advertised. those will actually on the MLS because they will be on the MLS and people want to move quick. They tend to be at a pretty discounted rate. But where the caveat is. Once those get into contract. So let's for example, that house is on the market, we have it listed. And at that point in time, We're just trying to get it into contract so we can kick the probate into full gear and get the court hearing date and all that good stuff. So once we get into contract, it might be, I don't know, it might be $100,000 under market value, let's say, or $50,000 under market value. We're in contract. know that buyer's doing their due diligence. We've ordered the court hearing date to approve the probate. Now we have a date. At that date, it's open for bidding. So if we're under market value by, let's say, 100K, we get to that court hearing date. Jon G. Sanchez, CEO: Okay, I want learn about that. Aaron Clark, Edge Realty: you can show up and be a buyer who's ready to pounce and most likely the buyer that's in contract if they're you especially if they're not too savvy. they're not going to bid higher than what their expectation is. They have a very simple expectation. I'm paying, you know, I was listed for 400. I wrote an offer for 375. They accepted it. I'm paying 375. So when the judge says at the end of the hearing, all right, is there anybody here that would like to bid against the property? We'll start the bidding from 375 to 380. They kind of go into shock. They don't even understand that that process is happening. Jon G. Sanchez, CEO: Right. I think a lot of people don't know that Aaron. Wow. Aaron Clark, Edge Realty: Yeah. And then a buyer can bid. I'll pay 380. I'll pay 385. It'll go. And I've seen them. I've seen them go up $100,000 more than what they were because an agent, they just wanted to get it in contract because they wanted to get it to the bidding. Dwight Millard: You're welcome. Jon G. Sanchez, CEO: No, what a shock that would be to that buyer thinking they get his. Yeah, so. So the court, the court has an obligation. But why? But why? What's the incentive for the court? Why does the court care? ⁓ Dwight Millard: Yeah. Aaron Clark, Edge Realty: make sure it's the highest amount of money to the Fraud. So think about it. Let's say I have a property that's listed and Jon and Mary Doe, whatever, we get into a contract. Jon and Mary Doe's next of kin. They think they're going to need a smoke and deal on it. It's worth 500. They're like, oh, we're going to buy it for 200 from the family and then we're going to turn around and sell for 400 and we'll put that $200,000 in our pocket. This ensures that it's going for fair market value. It sort of protects the estate from any sort of backhanded fraud. No. Well, I mean, they do in turn because you're not stealing it. But before I could go in there and be like, I get my buddy at the bar to go bid, you know, go buy my parents' property for pennies on the dollar. Jon G. Sanchez, CEO: Okay, okay. It's not so that the beneficiaries get the most amount of money or anything like that. Right, but that's not the intention of the judge, right? Yeah, right. I was thinking about that. Aaron Clark, Edge Realty: No, we as the listing agent, we do in, you know, working with the attorney. So like for me and Corey, we usually wait until the buyer's done their due diligence and then once completed, then we'll let the attorney know to order the hearing date. Depends on how busy they are, how far out. Usually it's a month. It's not that crazy ⁓ you don't want to order the hearing, which costs money for the attorney to request it and file the paperwork. And we get to to the 11th hour of the hearing and then the buyer goes, we did inspections and we found asbestos, we don't wanna buy it now. And now we're canceling the hearing, which costs more money. So it's all about being prepared and doing things so that you spend as little as possible. Cause it all comes out of the estate. Jon G. Sanchez, CEO: Hmm Real quick before we go to break, Aaron, you seen some, to your terms, some smoking deals come out of probate court? Or does it kind of end up in the wash? Aaron Clark, Edge Realty: Not smoking, but good icebreaker deals. Good deals where you can come in, you might be able to save 50 grand. Yeah, and they're ugly. So if you can see past the ugliness or you have some special skills, you can make a good chunk of money on those. Those are great foot in the door type of investments. Jon G. Sanchez, CEO: Okay, good markets, bad markets. People are always dying and are going to probate. So that's a good all weather strategy. Yeah, they are. All right, want to squeak out one more out of you and some good strategies the financing side with with Dwight when we come back. Let's wrap it up with Kristen Snow right now. Traffic Center, Kristen. Welcome back to the Jon Sanchez Show on News Talk we, I I've made an executive decision. ⁓ We're gonna on this probate topic. We were having a heck of a discussion during the break and the knowledge that has in this is absolutely amazing. So I don't want any of you to miss out on what he was telling Dwight and I off air, because it's nothing private, but maybe Thursday we'll continue this and we'll look at some of these other areas again where we're looking for real estate opportunities. Aaron Clark, Edge Realty: Hahaha Jon G. Sanchez, CEO: Aaron, want to, you know, guys, before we do, Dwight, let's get your phone. Thank you, sir, Mr. Clark. Aaron Clark, Edge Realty: 673-6700. Jon G. Sanchez, CEO: Thank you. right, so we're talking about the probate process. Aaron enlightened us to the entire process. Aaron, take 20 seconds if someone just joined us and talk about the estate planning, I'm sorry, the probate process. How, again, you can find, as you said, not a lot of times, there's not, know, quote, smoking deals, but you can get some good deals, good values, that type of thing. But there's a lot of things that can go wrong like everything else. So real quickly, recap that, and then let's continue our discussion that we were mentioning. Aaron Clark, Edge Realty: Yeah, so if somebody a home and they don't set up a trust ⁓ They don't include that home in that trust and then they pass away. Then it's going to go through process called probate. Probate is where basically the state decides what happens to that. They're looking for next of kin, who the family members are that are going to profit from that when it's sold, et cetera. And then because of it, we have to follow regulations. We have to advertise it. It will get listed on MLS. There has to be a notice where people can come and look at the property and things like that. And then at the very end, upon the completion of the transaction, they have to open up the probate to what's called an overbid they have to see if anyone there is willing to pay more than what the contract price is. Jon G. Sanchez, CEO: And Aaron was telling Dwight and I that he has seen kicking, screaming, throwing things, cussing people out because ⁓ buyer thought they had it all locked in. They show up at the probate hearing and here comes some buyer out of the woodworks and old relative, whatever the case is, and blow whole deal. So yeah, that's fascinating. And the his ⁓ sole intention again, to get the largest amount of money, hence why they open it up to the bidding process, as we were saying. ⁓ Aaron Clark, Edge Realty: Lots of stuff. Yeah. Yeah, mean, it protects the estate because mean, before you had overbid, you could have somebody come in there who's your ⁓ and was bidding on the property or getting into contract for way under market value. ⁓ And the two family members that were the long lost next of kin are turning around and selling it after the family estate gets settled as their own. know, so had stuff like that happening. So the overbid process is what basically protects for that. Jon G. Sanchez, CEO: Right. Right, right. Dwight, have you ever had someone come to you and say they want a pre-qual letter from you because they're going to a probate court to bid on a property? Mmm. Aaron Clark, Edge Realty: No. No. Jon G. Sanchez, CEO: Okay, okay. So pay cash initially and then refinance it. Aaron Clark, Edge Realty: Yeah, the probate has to model whatever the contract is. So if the contract is in contract with a conventional loan, for example, because that's how they bought it off MLS, once we get to overbid process, whoever's bidding ⁓ it has to have an equal to offer. So can also use a conventional loan to purchase the property, but they do also need to close the property ⁓ and have contingencies that have already been met completed. ⁓ So if got an appraisal, for example, ⁓ we go overbid the new buyer bids with the conventional alone they need to be able to not have the appraisals at contingency so that they could close in the exact same spot. No, they have to accept that whatever's completed it's the same contract but bid so they do not get to do anything that the other buyer has completed which is why we don't go there until it's all done. Jon G. Sanchez, CEO: Can they do their due, does the court give them a due diligence time period? Whatever is, okay. And quickly tell, right, and tell the audience quickly about the estate commission process, because this was a shock to Dwight. Aaron Clark, Edge Realty: Yeah, so a lot of people don't understand this, the buyer agent who's representing the person who's in contract that gets all the way to the hearing date, if they lose their loses to an overbid, they still make half of the commission per NRS. Yep. Jon G. Sanchez, CEO: all that work. Someone just comes in and yeah, yeah. Aaron Clark, Edge Realty: Which is good. I mean, that's what it's for. And I have to disclaimer, I'm not an attorney. You should contact an attorney to discuss probate. This is all for entertainment purposes, yada yada yada. Jon G. Sanchez, CEO: Yep, absolutely, absolutely. Yeah. Well, again, that scenario earned, obviously, all that can be avoided just by having trust and having it properly funded, having moved that ⁓ And if you don't, we're going to give you a solution here in a few short weeks, right, Dwight? And get that handled because it's a long, expensive. Aaron Clark, Edge Realty: Yes, everyone should have a trust. Mm-hmm. Jon G. Sanchez, CEO: probate is a long, expensive drawn out process. And as I've said a thousand times, only people that win are the courts and the attorneys doing it. No one else wins in that scenario. topic, Aaron. We'll continue this on with some more of your ideas on Thank you, Phenomenal job as always. We'll do it again tomorrow on the Jon Sanchez Show. God bless. Have a great afternoon. Aaron Clark, Edge Realty: and so painful in the family. Perfect.