Jason Bramblett Real Estate Radio Show Podcast     CLICK HERE TO LISTEN 11.17.18 PODCAST

JB: Good morning and welcome to Real Estate 911 with your host Jason Bramblett. I am JB. The next thirty minutes, we are going to talk all things real estate, and we invite your participation. Participation.

Jason:  Yeah, that is a word.

JB:  That is a word.  I just made it up, but anyway, if you want to join in the conversation, give us a call.  The number is (336) 553-0796.  And we welcome to the show Mr. Jason Bramblett.

Jason:  Good morning. Hey, I was in la-la land and I still knew what you meant.

JB:  Well it is a little chilly out there.  I cannot get the lips moving, man.

Jason:  That is it.

JB:  A little numb.

Jason:  It is that first little, I do not know, cold front, I guess.  It is –

JB:  Chilly.

Jason:  It is here.  We are getting ready to go do the Turkey Day thing with all the relatives, and some of them have snow, and I am like that cannot happen.

JB:  Oh really?

Jason:  You have got to get rid of that.

JB: Where are they at?

Jason:  Missouri.

JB:  Oh.

Jason:  They got 8 inches?

JB:  Really?

Jason:  Yeah, they can keep that stuff.

JB:  Wow.  It is that time of year, I guess.

Jason:  It is. It is.  It is that time.  Be ready or not be ready, it is still happening. Life is happening. You have just got to get your mind, the mind is actually the most important thing to get prepared, I think.

JB:  That is right.

Jason:  If you lead with the mind, the body follows.

JB:  That is right.

Jason:  I think that is how it goes. I put in my note here is it spring yet?  It would be nice.  But also, it is interesting.  We are getting some of that I am ready to sell my house, but it is winter.  Here it is.  We have been talking about it all year, and now I am ready and now I am missed the boat.  Well, maybe.  We are going to talk about that. Can you even sell a house in winter? Is it even possible?  Is it something you can do? Some other questions we get are is the market shifting?  Oh another question we get: Can you sell a house in winter?  Oh by the way Jason, what happened to all the houses that were, and by the way Jason, can you sell a house in winter?  You kind of get the repeating question there.

JB:  I think I know where that is going.

Jason:  Every week it seems like can you even sell a house in the winter?

JB:  Yep.

Jason:  Uh, yeah.  Absolutely.  Yes, we can.  I promise you it can happen, and we have got many, many, many hundreds and hundreds of stories to tell you that we can show you that yes, people do move in the winter.  Maybe not your neighbor, but there are people that do it, I promise.

JB:  Absolutely.

Jason: The other thing is Happy Thanksgiving.

JB: Yeah.

Jason:  It is like right here.

JB:  Coming up, I guess, Thursday.

Jason:  I think you say it before the holiday.  I think that is the protocol, right?

JB:  That is correct.

Jason: Happy Thanksgiving before and then, because after is just what, Black Friday.

JB:  Well, we kind of forget about Thanksgiving sometimes.  Here we are right in the middle of all the Christmas sales already.

Jason:  Yeah.  Oh.

JB: Do not get me started going down that road.

Jason:  Yes, yes.

JB:  I know, I know. I get it. But come on, let’s give Thanksgiving its due, and then we will jump into the Christmas stuff.

Jason:  Right. 

JB:  All right. I will get off my soapbox now.

Jason:  I almost bought tarantula ornaments the other day because I was like wow, oh that was for Halloween.  Oops.

JB:  Oh, okay.

Jason:  They were still out.  Pretty soon there will be Easter Bunnies flying around.

JB:  There you go.

Jason:  Everybody kind of gets busy and traveling and stuff, so it is always to take time to reflect, think about life.  Right?

JB:  Yeah.

Jason: This time of year, I usually get back from a country in which it is very easy to come home to and be very thankful --

JB: Exactly.

Jason:  -- for everything that you have. We exercise one of those great things to be thankful for – the option to vote.

JB:  Right.

Jason: And actually have a say, maybe depending on who you ask, but anyway, I can assure you it is better than some of the alternatives methods countries are ran.

JB: Right.

Jason:  Look at Venezuela maybe one of them to check out right now. There are all kinds of things going on in the world, so it is a good week to just stop, pause, give thanks, get a plan, and that is kind of where my head is that this week.  We are going to get into your real estate stuff.

JB:  Okay.

Jason:  I had somebody tell me this week, told my wife actually, I do not even give a rip about real estate.  I listen to Jason’s show every week.  I thought that we the greatest compliment you could ever get.

JB: Well, we have a good time and you give a lot of great information.

Jason:  Hopefully.

JB:  So that is what it is all about.

Jason:  When you are ready, I hope to have you somewhat prepared. How about that?

JB: There you go.

Jason: Let’s dig in.  We have got your questions.  We are live in the studio. 882-7874.  We will do our best to answer any and every question flying our way.

JB: Sounds good.  Well, let’s jump right in.  Let me ask you.  I am going to kind of hit you with a heavy question right here. Are you seeing the market shift, Jason?

Jason:  That is one, when you have interest rates moving around like we have had from 3 ½ to almost 5%, maybe even just a little over 5, you get that shift question because it is a change. The truth of the matter is really it is always shifting.

JB:  Right.

Jason:  The market is always changing.  I think some of the guys that are on the radio and TV with Wall Street, they are running out of stuff.  They are like man, it just keeps going up.  We have had a few little move backs and stuff, a couple hundred points or whatever, but I do not think anybody ever saw it getting to where it is.  And sometimes with real estate we are the same way. It is like well, it has been here for a while, and it is shifting.  We are seeing a movement. What is moving?  Well, interest rates are the biggest thing because they have been very steady for seven, eight years. And now we are back up in the fives, and truthfully, that is really kind of where it should be.  Long-term money should be, in my opinion, 6-8% in a healthy real estate market.  I know that is no fun when you had the opportunity to buy a house and it was 3 ½, and you did not do it.  And guess what? You did not do it.

JB:  Right.

Jason:  It is just over.  You have just got to move on.

JB:  Right.

Jason:  That is just the way it is.  It rarely stays the same. We are starting to see inventory creep up just a little bit, which is good.  We need some inventory.  Some price points were moving so fast that it was creating a lot of frustration, and so we had folks that were first-time homebuyers that say were in the $200,000 range, and it is hard to believe, JB, when you have never done something before –

JB:  Right.

Jason:  -- an agent, let’s face it. The relationship, the dating curve is pretty quick.

JB:  Yeah.

Jason:  It is like we are holding hands at breakfast and by dinner, we are kissing.  It is a fast-moving process a lot of times with the way the market is moving.

JB:  Right.

Jason:  It is hard for some first-time homebuyers to trust 100% the agent that says hey, when you find the house, it hits 7-10 of your criteria, you better pull the trigger because you might miss it.

JB:  Right.

Jason: And the folks that we see miss it are the ones that need to think about it, pray about it, call Mom and Dad about it, and by the time they do all that, there are five offers.

JB:  Right.

Jason:  That is okay, and you want to put your name in the hat.  The house is whatever, two hundred grand, and you want to offer 160. No.  The arrow went the other way.  It is probably going to take 210 to buy that house –

JB:  Right.

Jason:  -- with five, six, seven offers. A couple of things.  You are living in the wrong real estate market.  The real estate market where you could offer 10, 20, 30,000 less, that was five years ago.  You missed it.  Okay?  And then the thing that you have to do is make a decision.  You have got to be ready, and you have got to be prepared that when it hits 7-8 of your criteria, be ready to pull the trigger.  The downside is it is usually the first house.

JB:  Yeah.

Jason:  And that is hard. Then everything else becomes the one you compare it to.  I was going to say something else, but I did not want to make anybody mad.  So I am glad I caught myself. Good job, Jason.  Good radio etiquette there.  It becomes tough because you compare everything to that one. It is the one that got away.

JB: Right.

Jason:  So that becomes a challenge.  Anyway, those are some of the frustrations that we run into.  Part of that is just you have got to really trust who you are working with and you have got to do some homework. It is kind of like when you show up to the voting booth.  If you never saw any of those names before and you are flipping quarters –

JB:  Yep.

Jason:  Of course, some of you would have been better to flip quarters maybe.  That is a different show.  We will do that one next week.  Inventory.  Here is what we would love to see.  We would love to see really some more houses in that 220-350 range.  We have sold them all, so if you have some more.  So if you are thinking about selling in the winter, right now, this week, we would love to talk to you.  250-350, I do not care where you are in the Triad, we would love to talk with you. We service everything from Advance to Mebane.  Or Mee-bane.

JB:  Mee-bane if you are not from here.

Jason:  That is right.  From Asheboro all the way to the Virginia line. We can definitely help you out there.  That is our biggest vacant spot that we are in need of right now.  We are also specifically in need of properties in these cities: Clemmons, Lewisville, Oak Ridge, Summerfield.  Those specific towns we have lots of traffic on the website and very little product to deliver. So if you are thinking about selling in winter, like next week, you can get your turkey processed and all that, but if you are in Clemmons, Lewisville, Oak Ridge, Summerfield, we would love to talk to you because we have lots of chatter on the internet and lots of people inquiring about homes in those areas, but very little to offer. There just is not much in inventory-wise.  So if you are thinking about selling in winter, we are ready. 

JB: All right.

Jason:  Do you hear the theme there?

JB:  I get it.  I smell what you are cooking over there.

Jason:  There you go. In Jamestown, little lovely old Jamestown right here just south of us.

JB:  Yeah, just down the street here.

Jason:  200-350, you are in the wheelhouse.  We need to talk to you.  So if you are thinking about selling your home and you are in that 250-350 price range in Jamestown, we would love to talk with you.  We actually have a very high, I was surprised at the number of inquiries we have about that area.  So if that is you, we would love to get in touch with you.  Back to the shift, is it good?  Is it bad? The question, it gets asked a hundred different ways, every year, all the time. Really what the question is really saying is not so much that people care about the market, it is just that they care about me. Right? 

JB:  Right.

Jason:  Because at the end of the day, we really do not, because if you are not in the market, you really do not give a flying flip what it is doing.

JB:  That is right.

Jason:  But when you are in it, it is a big deal.

JB:  It is.

Jason:  So what we are really saying is how is it affecting me, and should I be prepared?  Is it buy, sell, stay, go?  Right?

JB: Right.

Jason: What should I do?

JB:  Yep.

Jason:  In the end, it gets back to is it going to help me or is it going to hurt me?  And that is really the only thing that matters.  And then what I have found is timeline.  Timeline is key.  Timeline is always 100% in 20 plus years of being in real estate now, it is the answer.  Timeline is the answer to 99.9% of your ah-haas and your woes in real estate.  JB, we have been talking about examples for years and years and years on the show –

JB:  Oh yeah.

Jason:  -- and kind of here is what we have, here is an example I guess I could give you is if you are going to be in the house that you bought, you just bought it and you are going to be in it for 20 years, it really does not matter.  Rates could be 200%.  You are locked in.

JB:  Right.

Jason:  You either do not have a mortgage or the one you have is probably fixed.  If it is not and it is adjustable, it has a cap, so it cannot even go to unlimited.

JB: Right.

Jason:  And it really would not make any difference what the rates were.

JB:  Right.

Jason:  It would not matter if they are 2% or 200%, I am not moving.

JB: Right.

Jason: Because it just does not matter. This is my home.

JB:  Right.

Jason:  That is really the truth for most things.  Who does it matter?  My rule of thumb is about ten years.  Ten years and on, there are some things that you need to look at it.  You may want to look and make sure there is not a planned interstate rolling right through your backyard.

JB:  That is right.

Jason:  But, outside of that, if everything is just normal and you are going to live there for ten years plus, I will be honest with you, it just does not matter.

JB:  Right.

Jason:  It hardly even matters what you paid for the house.  It really does not matter what your interest rate is. If you bought it with the way we suggest with 20% down and a 15-year loan, it does not make any flipping difference at all because in 10 years, you are going to owe so little or probably nothing.  It will not even matter.

JB:  Right.

Jason:  The most powerful person in real estate is the guy that owes zero on his house –

JB:  That is right.

Jason:  -- because he can sell it no matter what the market is doing.

JB:  That is right.

Jason:  The guy that is in trouble is the guy that is at 100% or 103 and people are like, Jason, we do not do those anymore.  Yeah, we do.  Unfortunately, we do. There is a great credit union that I actually like them a lot, but they do way too many 100% loans.  But I will not mention any names to protect the guilty.

JB:  Right.

Jason:  I mean the innocent.  There are situations out there where it just does not matter.  If you have purchased the home at a fair price, you are going to be in it longer than ten years, and you financed it on a 15-year mortgage, there is just not a lot of stuff that bad can go wrong.

JB:  That is right.

Jason:  I did short sales for a number of years, corporate relocation for a long time.  What I have yet to see is a 15-year loan get foreclosed on.

JB:  Right.

Jason: Now, I am not saying that it has not happened.  I just have not seen it, and I have done it, well, I do not even know.  Probably well over probably 1000 short sales.  Pretty much all of them were 30-year loans. 

JB:  Wow.

Jason:  Got a few foreclosures in situations that were outside of loan issues, but very few.  Most of the time, it is a 30-year note with very little money down, and that is what gets folks.

JB: Wow.

Jason:  Every detail matters.  In markets, it simply would be better, in certain markets it is going to be better to rent than it is to buy.  So those are things that we need to take a look at as well. If you are buying and you think you are going to be there for less than five years, renting is the way to go.

JB:  Really?

Jason:  In my opinion.  Right now, it is just, renting is smart for some folks.

JB:  Right.

Jason:  That is all I can say.  I will tell you what. Why don’t we do this?  Because that maybe seemed like an oxymoron to some folks.  Let’s break that down, and we can do that.  Let’s take a quick break.

JB:  Let’s do it.

Jason:  Because we are right there at the break time.

JB:  Okay.

Jason: Let’s do that.  We are going to go pay for some groceries.  Need to get that turkey paid for right now.

JB:  That is right.

Jason: Because he is out running in the backyard.

JB:  And we will pick back up when we come back.

Jason:  Yeah, let’s do that, and if you are curious as to why in the world you would think that renting might be a good answer, stay tuned.

JB: All right.  Sounds good.  You are listening to Triad Real Estate 911 with your host Jason Bramblett.  Stay with us folks.  We will be right back after the break. (in/out music) And welcome back.  You are listening to Triad Real Estate 911 with your host Jason Bramblett.  I am JB, and before the break, Jason, you were giving us some great information, but I have got to say it kind of seems odd to hear a real estate guy that was talking about how it might be best for somebody to rent.

Jason:  Sure.

JB: Let’s pick back up there.

Jason:  First thing is the reason why we coach them is it truly is in their best interest.  That is how we have created repeat customers for 20 years.

JB: That is right.

Jason:  It is doing things that are in the client’s best interest and not in our best interest.  Here is what I mean and why is it 100%, it is not 100% of the time that people need to rent, but there are definitely cases where they do.

JB:  Sure.

Jason:  One, if you are just not prepared to own a home.  There is a difference between being financially ready and responsibly ready.

JB: That is right.

Jason:  We have got a lot of homeowners that were financially ready but not responsibly ready.

JB: That is right.

Jason:  And you do not believe me?  Go check your air conditioning vent right now.  If you do not know what that is, you are financially ready but not maybe responsibly ready.

JB:  Right.

Jason:  And all my HVAC guys said yes, tell them.  You can get double the life out of those things if you just change the filter, I think.

JB: That is right.

Jason:  Here is the breakdown and here is where we look at it from analyzing this.  Let’s just say that your rent is $1000 a month.

JB:  Okay.

Jason: $12,000 a year and it is not going to cost you a penny more than that. Presuming you pay on time.  You do not have any late fees.  But if you make your payments on time at $1000 a month, you know at the end of the year, your housing allowance, your housing cost is twelve grand.

JB:  Right.

Jason:  It is going to be twelve grand every single year that you pay $1000 a month.

JB: That is right.

Jason:  Now, I can buy a house with the exact same $1000 payment and end up writing a check in five years when I go to sell the house. Sometimes I can write a big old check. Now my payment was still the same.  We are equal.  We are still out the $12,000 a year as far as payment goes.

JB:  Right.

Jason:  But if we go back and look, and here is the gamble is attempting to predict the market of a really large purchase item on a short-term basis.  I know for some of you guys when I say five years, you think that is an eternity. 

JB:  Yeah.

Jason:  I will promise you, when you get as old as me, five years is like last week it seems.

JB:  It goes by quicker.

Jason:  It goes by like unreal.  I can remember as a kid the summer seemed forever.  The summer seemed like a weekend with kids.

JB:  Yeah, tell me about it.

Jason:  Take me here.  Run me here.  I can see why my parents maybe just ride your bike. Here is what we have got to look at, and it is very possibly not only could you potentially write a check, let’s do this.  Let’s just give a real-world example.  How about this?  $200,000 house, okay, let’s just say you bought it for two hundred grand, and in five years it did okay.  It went up to 215.

JB:  Okay.

Jason:  For whatever reason, you got a job relocation year 3, 4, 5.  Whatever it is. On the surface, it appears that you made $15,000.  Okay. But appearances can be wrong as they say sometimes because if you look at what it costs you to sell a $215,000 house, it mysteriously starts to look like at about $15,000 to be honest with you.  By the time you factor in real estate commissions and closing costs and moving expenses and all of those types of things, you are going to eat up pretty much fifteen grand.  Here is the other thing. During that five-year timeframe, you ended up putting on a new roof that was $7200.  If we do the math, if we look at it, the gross side was okay, I am good.  I am $15,000 plus. But the net side, I am in the hole.

JB:  Yeah.

Jason: I owned a house, but did I really own the house?  Did I really get anywhere? And that is why on short-term occupancy or short-term ownership, we have really got to look at every detail. The safest thing is to put a larger down payment to buy a newer home or a home with warranty because if you end up putting a heating and cooling system in, a roof on, or any of these major things, and it is out of your pocket, it is just coming right of the proceeds.  Right?

JB:  That is right.

Jason: This is why I have said for years and years and many people do not agree with me, and some of my real estate friends do not agree with me, but your house is really just a really, really horrible savings account.  The reality of it is that is kind of what it is because a lot of us at the end of the day, well no, not a lot of us, almost everybody I have ever met always over improves their house. We just make it the way we want it.

JB:  That is right.

Jason:  That is okay because if you are buying the house to live in that is what you should do.  And if you are buying the house to make money on, you are buying the wrong type of property.

JB:  That is right.

Jason: The type of house you buy to make money on is the one that you do not live in.  It is the one that your renters live in and that is what you want to put your money in. Even though we have a higher gross number, the net number is not the same.  And here is another place where you could see that is your paycheck.  For those that you guys that have one out there, you will see this gross number.  It is a nice, big, shiny number.

JB:  Yeah, it looks good.

Jason:  It is the number they hired you on and you got excited.  You were like wow, I can make that?

JB:  Look at me making bank.

Jason:  For some reason, when I got my check, there was another number on there.  It is called the net number, and it was different than the big number they hired me on.  For some reason the number I am getting it does not equal the number they hired me on.

JB: That is right.

Jason:  What happened there?  The difference is what the government takes to fund their turtle tunnels and all that fun stuff.  Sidewalks to nowhere.

JB: Oh yeah.

Jason: All those things that we need in America. Here is the thing. They realize that when you get, if they gave you the gross, it is hard to get the difference back from you, so they just decided to take it right away.

JB:  That is right.

Jason:  The interesting thing is it does not work in reverse because I have also found that once they get the money first, it is real hard to get it back from them, too.

JB:  Yeah it is.

Jason:   It is interesting how that works. Guys, this week, if you are traveling, be safe. Take it easy out there.  Take time to reflect, be thankful.  We are going to be selling real estate in the wintertime if you want to give us a call.  Go to Jason Bramblett dot com. We will be right there with you.

JB:  All right.  Have a great weekend everyone.