JASON BRAMBLETT REAL ESTATE SHOW PODCAST

CLICK HERE TO LISTEN TO 01.19.19 PODCAST

JB: Good morning and welcome to Triad Real Estate 911 with your host Jason Bramblett. I am JB, and for the next thirty minutes, we are going to be talking everything real estate. If you have got something on your mind, maybe a question or comment for Jason, we invite your calls. We are live in the studio. (336)553-0796 is the number. (336)553-0796. And we welcome on this Saturday morning the man with the plan, Mr. Jason Bramblett. Good morning to you.

Jason: Good morning, everybody. And it is, what a good start to 2019.

JB: It has been great.

Jason: It has been good. It has been, it has been the best January we have seen since like I do not know 2005.

JB: Really?

Jason: So yeah.

JB: That is great.

Jason: So, it is good to see all indicators are moving in the right direction. But it so weird. It is like jumbo shrimp. I am watching the market and things are moving and houses are selling, yet, prices are still dropping.

JB: Really?

Jason: It is interesting. Yeah, we get these little graphs and it is like houses under contract, price reductions, and they do not really, you would not think they would correlate. You would not think the big bar going lots of homes sold to price reductions in the market and there it is. Some of it, I think, is some folks got way optimistic and excited and pushed the envelope, and they are like hey, you know what, there are not that many of them, so add $25,000 on to it. We will see what happens. Well, what happened was is it probably did not appraise.

JB: Right.

Jason: So even though you got somebody that was willing to buy it, and that is frustrating, having it happen to me, having someone, having multiple people like five offers on a house, clearly showing that the market demand is there only to have it snatched out of your hands when the appraiser goes out and it is a way different number.

JB: Right.

Jason: But hey, it is as they say the Golden Rule. They that have the gold, rule.

JB: I like that.

Jason: And in this case, it was the bank. Right?

JB: That is right.

Jason: But anyway, how is your year going? That is the question. How are you guys doing out there?

JB: Yeah.

Jason: Are things going well? Are you ready to upgrade? Downsize? Buy your first house? Get a bigger house? Get a smaller house? Find that one with the amazing yard that you have been talking about forever.

JB: Oh yeah.

Jason: Maybe it is time for you to step up, find that, maybe there is a farm out there for you. You never know. We have got a lot of folks like those little backyard chicken things and stuff like that.

JB: Yeah.

Jason: It is amazing where you will see a chicken these days. That fad took off and it stuck.

JB: That is right.

Jason: It stuck pretty good. Usually when you are in town, you are like, did I really just see a chicken in that yard? I sure did.

JB: Keep the bugs out of the yard.

Jason: There you go. But whatever you are dreaming, we have got a solution for you. We can find it. We can go out there and get it. I will tell you I had one client seven years it took to find the right place.

JB: Wow.

Jason: Buddy, but it was very specific and here was the cool thing though. As soon as we walked on the property, call the listing agent. This is bought, done. Like this is our house. We are not negotiating. We are not asking. This is it.

JB: Love at first sight.

Jason: Absolutely. They did not even go in the house yet. It could have been a bomb went off in there. Did not matter.

JB: It was the one.

Jason: It was just like done. Make it happen. This is it. This is our place, and boy, that is fun.

JB: Yeah, it is.

Jason: We just had to actually, one of the agents at the office just had the happen with a client. Four years. She wanted a very specific property, and four years later it showed up. We found it. It is like wow.

JB: That is cool.

Jason: Hey, what is your next step? Maybe it is time to downsize? Maybe it is time to upgrade. I do not know. We have got options for you, and we do not give up.

JB: Right.

Jason: That is the thing. We have got to stay in the game, stay in there and beat some bushes sometimes. You have got to go knock on doors, and sometimes you have just got to have patience because maybe what you want is not even built yet.

JB: Right.

Jason: We have had that before.

JB: There you go.

Jason: It just now was not there, and then one day it pops up, and it is just like all the heavenly angels are singing up there.

JB: Ahhh.

Jason: Exactly. This is it. That is fun when you go out there and it just like everything is clicking. And what is so funny is you would think it would be I like the way it looks, I like this, no it is all emotion. It is all the house. It just feels right.

JB: Right.

Jason: You can just sense it. You can also sense, I have been in some houses where I am like I do not know what has been going in here, but this house has got a bad vibe.

JB: Yeah.

Jason: You could just sense it. It is an angry house or something. It is like we are going to leave. It is time to put things in motion. So, hey, guess what? Time is not going to wait on you.

JB: That is right.

Jason: You have got to go make it happen.

JB: All right.

Jason: There you go.

JB: Well, let’s make it happen right now because we get a lot, I know you get a lot of emails –

Jason: Yes.

JB: -- from listeners out there. So why don’t we go through an email or two?

Jason: Let’s do it. Let’s do it.

JB: All right. Because we got one in from Steve. Let’s kick it off with Steve’s email. It says Jason, I have recently been transferred out of state, and I have fallen behind on my mortgage payment. I think that I am just over $6000 behind. The bank suggested that I start a short sale. Is this something you can do? I listen to your radio show every week. Thank you, Steve. So, Steve has got a little dilemma there.

Jason: He does. He does. And this goes to what I was saying before. It kind of does not make sense. It is like homes are selling, yet here is Steve. He is behind. He did not say if his house was for sale or not for sale. Presuming he probably gave it a shot –

JB: Right.

Jason: -- and he is upside down more than likely. That is why we are talking about a short sale.

JB: Right.

Jason: First of all, Steve, thanks for listening, and we are going to do what we can to help you. But yeah, a short sale, oh boy, it is something we did for a lot of –

JB: Can you tell us kind of what a short sale is? That might be easier. Some people, I have heard that term, but they might not really understand it.

Jason: Again, this must be the oxymoron show because you go short sale and most people think fast.

JB: Yeah.

Jason: Short. It has nothing to do with speed.

JB: Oh man.

Jason: The short part is basically you do not have enough equity in your house to pay off the mortgage, but the bank is going to allow you to sell the house for less than you owe shorting the mortgage.

JB: Gotcha.

Jason: And this is where short sale comes from. Many people get it confused with fast sell. Not fast.

JB: Right.

Jason: It is so inconsistent. Now we have not done many of these in a while, but back in 8, 9, 10, 11, oh man, we probably did 1000 short sales.

JB: Really?

Jason: It was unbelievable. We did them all over the place. What is frustrating for the homeowner is you are kind of stuck in a limbo and it is not, the bigger the place you loan the money, the longer it takes. And some small banks can move through the short sales much quicker, but some of your big institutions, we have done them in as quick as three months and as long as forty months.

JB: Wow.

Jason: Yeah, think about that.

JB: Wow.

Jason: Three years. Now what is interesting, and this is, hey, you got a lemon, make some lemonade. Right? We are going to turn something bad into something good.

JB: Right.

Jason: I have actually taken folks that are in this situation of a short sale, if they were living here, and sometimes it is just they got downsized and they are making half as much money, so they cannot make the payment. So, to qualify for a short sale you must be delinquent on your loan. You cannot be current and do a short sale.

JB: Right.

Jason: You have to have a hardship. We have taken families that have been in 20, $30,000 in consumer debt, cars, student loans, credit cards, all this stuff, and during the short sale process, because they cannot make their mortgage payment, the bank will not take the money, we have taken, re-appropriated, there you go. There is a government word for you.

JB: That is a good one.

Jason: And taken the funds that they would have used to pay the mortgage and paid off all their consumer debt. So actually, by the time we got the house approved for the short sale, they were debt free.

JB: Right.

Jason: So, we took a bad situation, and at least, made something good out of it.

JB: Right. Something they could work with.

Jason: It comes back to this is why I have said for 11 years on the radio, doing these 100% loans, I know everybody has got to get started, but if you feel that you are going to move in a short amount of time, 3 years, 5 years, whatever, the market is not appreciating at a level that you can get out at zero. It is just not. If you put 3 ½% down on a house and you got to move in two years, you are going to write a check. It basically comes down to you can either bring your down payment when you buy it, or you can bring it when you sell it. But you are going to bring it. It costs about 10% to sell a house today. Okay? By the time you factor in everybody that is involved, real estate people, the cost of moving, closing costs, attorney’s fees, you are somewhere real close to 10%. Well, if you only put 3 ½% down, you have got a math issue. Right?

JB: Right.

Jason: Unless your house went up in value, but if it did, it probably did not go up that fast in our market in this area.

JB: Right.

Jason: That is where we see it. It does not take that much of a shift. Think about that. If you are in a $200,000 house and the market moves just about a percent or two and you want to put 3 ½%, you are done.

JB: Right.

Jason: Who is going to come up with the money to sell? And that is where we see the problem is. We do not have the funds to do it if the market shifts. Now if everything is roses and unicorns and rainbows –

JB: Yeah.

Jason: -- great. It is not state law that you make money on your house. Although some people really believe that you cannot lose on real estate. Baloney. I will promise, now most people do not say that any as much because of the collapse. Right?

JB: Right.

Jason: When everything went sideways. But I have had owners just sit down and argue with me like house appreciation at 3% a year period. Where do you get that at? Somebody said it once in high school. I do not know. It does not work. It would be awesome. I would love it. It would be great.

JB: Yeah.

Jason: It would make everything so much easier because then you could with ease and predictability say hey, you have got to stay here X amount of time –

JB: Exactly.

Jason:  -- to be able to sell your house to get to zero as opposed to hey, you are going to have to write a check for $19,000 if you want to sell this house.

JB: Right.

Jason: That is not a fun conversation to have.

JB: Right.

Jason: Even attorneys say things that are not appropriate sometimes. I was at a closing and this guy, he got a check back for like $140,000, and it was during the time when you just did not see people getting equity back. Right?

JB: Right.

Jason: If you got to zero, everybody was happy if you had a mortgage. It really had been a long time since I had seen someone get a check back for $140,000 when they sold their house. And the attorney made that comment. He was like wow, JB, you did really good. Got $140,000 back, and the guy looked at him and said I put $300,000 down on this house. It kind of changes the story.

JB: Okay.

Jason: The attorney forgot to look at all the paperwork. Right?

JB: Yeah.

Jason: You could have sucked air out of that room. It got real quiet. What do you say?

JB: Yeah, really. That is tough.

Jason: Ouch. That one stung a little bit. It stung a little bit, but it happens.

JB: Right.

Jason: And here is the thing, and that story kind of proves another theory. Just because you have a big home or make a lot of money it does not mean you cannot lose.

JB: Right.

Jason: As a matter of fact, I would say the bigger the house, the more guarantee you are going to lose. We have talked about him before. Maybe I will get to meet him one day. I talk about him all the time. Maybe he will just come up here and want to punch me in the face. Kevin Harvick. Look at Kevin’s house. Guilford County. One of the most expensive homes built in Guilford County. Most people estimate it somewhere in the $10 million range.

JB: Right.

Jason: It sold for 2.3. There are probably not too many sympathy cries for Kevin because he does have a pretty good income.

JB: Right.

Jason: But it is still, that is a horrible return.

JB: Right.

Jason: There is no return. In the car business, they would call that negative equity.

JB: That is exactly –

Jason: About $7 million dollars’ worth of negative equity.

JB: That is right.

Jason: It is interesting, but we can help with that short sale, and what I do see, JB is a lot of this does happen around job relocation.

JB: Right.

Jason: Which typically is a good thing because most people move for a promotion or something like that. But then the house that was a blessing ends up being a curse –

JB: Right.

Jason: -- because they cannot get rid of it.

JB: Right.

Jason: Because there is no equity.

JB: Well, outside of a foreclosure or a short sale, let me ask you this, Jason. Are there any additional options for Steve or someone else in that situation?

Jason: Sure, yeah, we have got a few. So, depending on where the house is at, if it is in a really desirable location, so desirable meaning it grabs an investor’s attention.

JB: Right.

Jason: It would be one that is in the best school district. Its condition makes a huge difference. Right? Has the home been taken care of and that? We have got a plan actually where we can get you caught up on your payments. Maybe we can work out something to where we can catch up your payments, help you avoid having that short sale on your credit, which is going to be great because that does not go away. Once you are tagged with that short sale, it is there.

JB: Right.

Jason: Unfortunately, it is going to follow you around the rest of your credit history. Now, at this point, there are certain loans that they do not have a forever look-back period, but it is still going to be there.

JB: Right.

Jason: It is still going to be hey, what happened? If we can avoid the short sale, then really all we have on your credit is late payments. Well, that does not sting as much. Right? And late payments fall off and go away faster.

JB: Right.

Jason: And late payments could be pretty easy to say hey, I got transferred and it took longer to sell the house, or I did not realize whatever. And it was temporary. If you had no late payments and then you got transferred and had late payments and now you are good, that shows a creditor okay, this is a guy who is going to take care of his business, if you will.

JB: Right.

Jason: But the homes need to be good quality, pretty much where we could rent that thing right away, but we do have a program where we can get you caught up on your payments, get you out from underneath the ness that you are in. Specifically, like Reagan High School, that is one we look at. Northwest, Northern, basically, if you have to carry a gun to get to your house, then it is probably not what we are looking for.

JB: I got ya.

Jason: I am not going to say no. We will look at anything.

JB: Yeah.

Jason: We have had a couple that we have looked at this year already, and some of them are awesome. People do not want to inherit your problem. Right?

JB: Right.

Jason: So, if you have taken care of your home and you are just whatever, man, life got you. It just happens sometimes. Right?

JB: Right.

Jason: We have got some options other than just sticking a sign in the yard and seeing if it will sell.

JB: Right.

Jason: We have got some folks that can step in, get your mortgage caught up, get you square, and then take that house over and they will put it into the rental program. They will put it into their portfolio. They will take all the risk actually. They will take over the maintenance of the house. They will take care of putting the tenants in, and so there is a lot of good that can come from that, especially if you could just remove your liability. Right?

JB: That is right.

Jason: So, it is not a bad thing. Speaking of liability, we better go pay some bills.

JB: Let’s do it.

Jason: All right. We will take a quick break. We will be right back. You got a question, shoot it over. (336)553-0796 or go to Jason Bramblett dot com. Shoot us an email, and we will probably talk about you on the air.

JB: There. We can do that. We do that quite often. Stay with us folks. We will be right back. (in/out music) And welcome back. You are listening to Triad Real Estate 911 with your host Jason Bramblett. Jason, we have got another email. You want to dive in here?

Jason: Let’s do that. Let’s do that.

JB: All right. It says Jason, I saw your billboard. Well, actually, I have noticed a bunch of your billboards, which I have seen them up and they look great, by the way. Could you tell me more about the 72-hour program? Thank you, Bill.

Jason: All right, Bill. Absolutely.

JB: Oh wait, we have got a PS on here. It says I owned a company for 40 years. Great job on the advertising.

Jason: There you go. Somebody that owns any business and invests in advertising understands –

JB: They get it.

Jason: -- the pain sometimes of that. But it is good to be in a position. There was a time, I actually met with a young gentleman yesterday as a matter of fact, and he was like how do you do this and how do you do this. And I was like you start with the telephone.

JB: Yeah.

Jason: You do not start with billboards. You have got to build business and the best way, and the most effective way is a conversation. Start with the phone, get face to face. You do not need to go spend thousands and thousands and thousands of dollars when you are starting.

JB: Right.

Jason: You cannot leverage yourself that way. Unless you just got a big old pile of money that you do not have anything better to do with it.

JB: That is right.

Jason: But I do not recommend doing it that way. Build yourself into that position over time. Dave Ramsey used to say, and it is funny. He goes everybody is talking about us and they are acting like we are overnight success, like we just started this up last year. I have been doing this for 30 years. That is how I feel about real estate. I have been doing this 21 years.

JB: Right.

Jason: This is not like last week we just said let her rip.

JB: That is right.

Jason: No. It takes time. So, we do have options that other companies do not, and some of that is just because we have been around a long time. Opportunity shows up when you have a presence and you are around and companies from out of state come in and they are like hey, who do we want to partner with? Well, they usually want to partner with somebody that has been around for a little while.

JB: Right.

Jason: So, we have been fortunate to have some venture capital companies approach us and they are wanting to buy as many, they want to buy homes and they want as many opportunities as they can. We created a program in which we can get you an offer on your house in 72 hours. Now it is just like any other home buyer. There is only so much you can put on a billboard. Right?

JB: Right.

Jason: So, yeah, are there details? Yeah, they are not going to buy a home that is structurally deficient, that is about ready to fall over. Guess what? Nobody is. Your momma will not buy that house from you. Okay?

JB: That is right.

Jason: You have got to use some common sense –

JB: Right.

Jason: -- and again, as I said before, people are not most of the time just going to buy your problems because they have a good heart.

JB: That is right.

Jason: These are companies. So, the process is this. It is really pretty simple. Once you have your home listed with our company, we will get all the data that we have collected, the photos, the details, the condition report, rental estimates, neighborhood data, HOA if there is one, and we send that over to the investment company, and they guarantee this in about 72 hours, they will burn through the data and they will present a letter of intent or offer on the house. Now, it is not going to be, you have got to think about this. It is an investor. They are not a non-profit. Okay? They have to make money. So, they are not going to pay you as much money as Sue and Joe out here that plans on living in the house for ten years. It is a different number. Okay?

JB: Right.

Jason: So, what you are getting with this particular process is convenience. And there is a price of convenience. We have talked about that in the past.

JB: Right.

Jason: The milk at Sam’s Club is a different price than it is at the Circle K convenience store. Right? And why? Because you are paying for the convenience. You do not have to walk 19 acres to go get the milk –

JB: That is right.

Jason: -- under the big box store. Right?

JB: Yep.

Jason: I have looked at many of these, and I have actually been kind of surprised at some of the prices. They actually paid more than I thought they would pay –

JB: Right.

Jason: -- but it also went back to the house is in great condition.

JB: There you go.

Jason: You have got an owner that took, that had service records, like hey, we get our heating and cooling checked out every year. You could tell they had a lot of pride in ownership, but what they did not want to do is they did not want strangers walking through the house, they did not want to show it, they did not want a sign in the yard. They just wanted to move. So, this worked out perfect for them. They get an offer. You pick the closing date, and like man, it is good to go.

JB: Yep.

Jason: It would be awesome if we could do it with every single house. If you guys would just clean them and take care of them, we would be good. But that is a whole different radio show there. We will do that one next week. How is that?

JB: That is good.

Jason: Anyway, get in touch with us. Jason Bramblett dot com. You can give us a call at the office, 553-0796. If you want an offer on your house, it is pretty simple. Call us. We will get working on it right away.

JB: All right.

Jason: 553-0796 or Jason Bramblett dot com. Everybody have an awesome weekend. We will see you next week, right here.