The Real Estate Happy Hour Show - Episode 51

Watch the Real Estate Happy Hour Show - Episode 51

America’s Hottest Real Estate Live Show, The Real Estate Happy Hour Happy Hour is Live and Ready for You! On today’s show Collier Swecker & David Arnette are talking about Kylie Jenner Becoming the Youngest Billionaire, 14 Common Home Buyer Mistakes, Southwest Airlines Lands in Hawaii and an Interest Rate Update. Join us every Thursday at 4pm for the live show on Facebook Live or watch or listen to the Real Estate Happy Hour on replay or listen to the podcast that can be found on Apple Podcasts, Google Podcasts, Stitcher, Spotify, and Tunein Radio.

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Collier: All right! It’s it’s 4 o’clock on Thursday! It’s time for the Real Estate Happy Hour! Hope everybody’s having an awesome week! Hey, it’s that time, it’s gonna be another awesome, awesome show today. David is actually up in New York City and he’ll be joining us here in just a second here, give him time to join us, hope everybody’s having a great week, it’s actually cold here in Birmingham! We’re coming up on the, what is this? The really, the end of the first week of March and cold, but daylight savings time here this weekend, so that’ll be interesting hey, we gotta a good show today we’re gonna be talking about hey, Kylie Jenner, Kylie Jenner is a billionaire, who would believe it? Forbes came out with their list this week, let’s say that while we get David all right? And I’ll tell ya what else we’re doing in one second, after we get him outta here, let’s see if we can get him, he may be shy. There he is! The man!
?David: Man, live and in color!

Collier: Man, you are in New York City! Tell us about it!??David: Man, it’s, it’s cold! I’m telling ya what, it’s awesome, but it’s very cold! I mean talking about 25, 30 degrees here.

Collier: Well, what I was just saying that it’s cold here in Birmingham, but I guess that’s nothing on the Big Apple huh? ??David: Man, you got to bundle up out here, so went for a little walk today for only about 30 minutes or so and just freezing.

Collier: Yeah, you were???David: And (inaudible).

Collier: Well, you and I were talking on the phone and we were talking about, man, talking about expensive real estate, you’re staying in the high rent business???David: Yeah man, we’re just a little bit above Soho here and I did get on to Zillow and checked that out, actually you told me a little while ago and there’s not much under 3 million dollars.

Collier: (Laughter), 3 million.??David: I mean there was like 6,000 square feet for 15 million, but we are staying here, this, this area is called the Bowery, it’s the Bowery Hotel, it’s really nice! It’s, you know old, very, very cool looking stuff, but you know this city’s just amazing because I mean building on top of building, there’s construction everywhere, they’re tearing up the street everywhere!

Collier: Yeah.??David: Yeah! And, and the, the, the first night we went to dinner to this place called Beauty in Essex and literally the fun of it was a pawn shop.

Collier: A pawnshop???David: Yeah you walk up to it, it’s a pawnshop, you walk through the little 10 feet or 10, 15 feet, and then there’s this huge restaurant behind the pawnshop, it’s, it’s, it was interesting.

Collier: Who would know to even go in, I guess right? ??David: Well I don’t, unless, unless you’ve been here, you don’t, you don’t know about the place

Collier: Well, we were getting ready to talk about it, but we’ll go ahead and start the show here and you know Kylie, we talked about it about 4 months ago that she was on her way to being a billionaire, Kylie Jenner is a billionaire according to Forbes.??David: Well, it’s 907 million from her cosmetic line and I was reading an article it looked like she doesn’t even do any marketing, like she doesn’t pay for any marketing, she’s got what? A hundred and twenty million followers?

Collier: It’s just crazy, she just says something and it happens.??David: It, it is and I think that’s the first time that, that anything like that’s happened where there hasn’t been any money spent on marketing and has such success for that company, it’s amazing.

Collier: What???David: Twenty-one years old right?

Collier: I mean yes, I mean at 21 and, and you know the other thing, you know the big debate right now is whether or not she claims to be self-made. I agree with her, in the sense that sure she started with a little bit of a head start, but so do a lot of millionaires, not many billionaires make it there without a little clicks put to ‘em.??David: Right, yep, certainly she had a good, certainly she had opportunity, she had money, she, she had people that knew her, people that knew her family. Obviously, those things help, but yeah, she is definitely.

Collier: I mean.??David: Worked on social media following.

Collier: I mean if you look at it, it all started with a sex tape by her sister, so there, you get any more self-made than that.??David: Oh yeah.

Collier: You know???David: Yeah, I don’t, I don’t know how many stories are gonna start that way, but I’m sure we’ll, I’m sure we’ll find out huh?

Collier: Oh absolutely, hey big news out of Southwest Airlines, Southwest is now flying to Hawaii, can you believe it? ??David: Yeah, I think I saw, I saw some of those headlines and it’s interesting that the, the expenses are pretty high for that route and I think that’s kind of a challenge to Southwest isn’t it?

Collier: Yeah well, they’re, they’re, they’re of course coming up with marketing, very 49-dollar fares from the West Coast, the biggest thing though is gonna be, you probably noticed it, if you’re listening from Birmingham or anywhere on East Coast. You, you go on the app, you go wherever and you can’t get a ticket, you can’t just buy a ticket to Hawaii from Birmingham and I’m here to tell you the reason, and the reason is Southwest does not do red, red, I almost said redhead, but red or debt? Red eye flights. ??David: Yeah.

Collier: And because of that most of these overnight, they’re mostly overnight flights back from Hawaii, so in order to leave there, you would have to leave at like 5 in the morning and hope to connect and so there’s really, there’s really not a good connection back to the East Coast. So, you’re gonna have to if you’re planning on going out there, you’re gonna have to go to say, fly from here to Vegas, here to Austin I think was as far east as they go.??David: Ok yeah, that, that’ll be, that’ll be a challenge flying from Birmingham to Hawaii, specially not, you know certainly they’re not doing it for 49 dollars.

Collier: No, not from Birmingham, but cheaper, but now one thing that you know we talked about it before, you know the companion pass we talked about? That’s where it’s gonna come in really handy is that you’ll be able to fly the companion for free. But anyway, Mario Neves? I hope I didn’t. ??David: Nieves?

Collier: Yeah, he wanna know where you’re at, Dave.??David: I’m in New York City, just a little bit called the Bowery, district maybe? Just a little bit north of Soho, just up here for the last couple of days in through the weekend and enjoying, enjoying the city really, it’s nice!

Collier: Living the dream.??David: Man, and it’s busy, it’s busy, so many people here.

Collier: By the way, by the way, did you see Lending tree, just came out with a study they just released about, they were looking at the difference between renting and, and buying a home and they looked at the average median mortgages, a price people pay for a mortgage, average price people pay for rent and they, and they look all over now. They’re taking the greater metro Birmingham area. Well, they took the greater metro everywhere if you will, and in the Birmingham market there was only a difference with rents and a mortgage of 11 dollars, I was kinda surprised by that.??David: Right, so they’re saying the cost is about the same between mortgage and rent so.

Collier: Yes so, the average, the average rent was 9, was 11 dollars more, you know, so can I???David: About the same yeah, yeah that’s very interesting.

Collier: I would also say, that that’s very hyper local because we, we got price points all over the map here in Birmingham, so I’m, I’m quite certain if you go to Mountain Brooke that that difference is not there anymore. ??David: Yeah, yeah, well I know that, I know the whole you know rent mentality it’s; it’s being talked about a whole lot more, it’s coming back and I, you know when you told me to go to Zillow and look up some price out here. I, I know rent is probably prevalent here in New York.

Collier: Yeah, can you imagine? I, I, David, I don’t think that you and I could go in together and even bring Michael Bruno with us and actually afford to buy a house.??David: (Laughter), well I don’t know, you’ve got Bruno though, you throw him in there that changes everything.

Collier: Absolutely man, but so anyway it was interesting to see him, in Miami was the widest margin where it was actually cheaper to, by far! To, it was cheaper to buy the new, it was even close I mean rent was just so high.??David: Yeah.

Collier: And the opposite was Louisville, Kentucky, so anyway.??David: Louisville, Kentucky.

Collier: That’s right, all right moving on David, we’ve got 14 common mistakes for first-time home buyers, well look we can throw out the word first time because there’s so many buyers that act like first time buyers, they have bought their fifth house.??David: Yeah, yeah, definitely and, and you know there’s a lot of, obviously you can Google, you can research, you can do whatever you want looking into this process, but there’s still gonna be some things to get left out and number 1 was, was not getting pre-approved.

Collier: Yeah.??David: I think that’s a big deal, I mean you, you know to not, especially for young people, you know first time home buyers a lot of times are gonna be younger, if you don’t, if you’re not familiar with your credits and you don’t know what the monthly payments are gonna be or how much cash is needed. There is absolutely no point to look at a house, right?

Collier: Yeah, no I mean and what is that seller gonna know about you? If, if that agent doesn’t have the ability to immediately send something over to you, to, to the, to you, meaning the selling agent or the listing agent rather. ??David: Yeah, yeah, so when you submit that offer I, I mean the seller has no idea, especially in this competitive market, they’re gonna wanna know that you’ve at least looked into that option first and, and know, you know what we’re getting into. That we have a serious buyer and that they’re gonna take their house off the market for a serious pre-approved buyer, right?

Collier: Absolutely and I, and, and I think too, you’ve talked about it before, but so that some people understand what is the main difference between pre-approval and an approval letter or the next.??David: You mean pre-qualified and pre-approved?

Collier: Yeah.??David: Yeah so, pre-qualified is basically just a conversation, I would say pre-qualified is just a conversation, a phone call, where we pull credit, you tell me you’ve got the money in the bank and you tell me about your income, so we do some quick math to figure things out. The pre-approval part is when we actually have W2s, paid stuff, bank statements, so we have verified that information. Everything that we’ll need for the file, we’ve actually verified that and it’s not just a conversation, where you tell me things, we’ve actually looked at paid stuff, W2s, bank statements and verified that information.

Collier: You know David, we’ve had it come up in the last few weeks with folks you’ve even talked to, a lot of folks don’t wanna get, have that credit pulled at the early stages of buying, but why is it OK for them to go ahead and do that? ??David: Well I mean, you know people don’t wanna have their credit pulled because it does technically bring down your score a few points, but that credit score is a vital piece of information. I mean it’s the number 1 thing, that’s the place we start to, to figure out what you’re qualified for and what your buying power’s gonna be is that credit score, so there’s really no point, I mean you’re completely wasting time without pulling that credit report.

Collier: Ha! Yeah well, unless you know for sure, I mean the other thing we hear is oh, I checked my Credit Karma, which is great I loooove.??David: Yeah.

Collier: Credit Karma, but that’s not the same.??David: Yeah, yeah so, yeah so and the other people that know for sure have credit scores at 800 ok? And if your credit score is 800 then, them me pulling your credit is not gonna affect anything. So, nobody knows for sure is my point, there’s no point, you’re wasting time without, without pulling that credit.

Collier: Right, number 2 moving on, the other mistaking they use is not using a buyer’s agent, a real estate agent, you know one of the biggest things, I know it’s tough when you see a sign and you see an agent’s name, you’re dying to call that number right now! And get that information, but David why is that a mistake???David: Well I mean, you see a lot of people that wanna, wanna go to the houses and check ‘em out and just talk to the listing agent, have him put all the paperwork together. But, that listing agent that the sign that’s in the yard, they are representing the seller ok? And they’re not gonna do a great job for you as well, but they are representing the seller, so you know think that through. There are several parts of the contract that you need help with, that I just wouldn’t advice doing on your own, I mean.

Collier: Well.??David: There’s so many things.

Collier: Especially in new construction ‘cause I’ll you what, new construction is a, is a trap because they’re in there and there are some great people in that business, but they are 1,000% representing and getting a paycheck from 1 person and it is not the buyer.??David: Yeah absolutely.

Collier: (Inaudible).??David: Yeah and I’ll give you a small example on something that I see typical, is that you know ‘cause in the state of Alabama, our attorney and title fees are split in half ok? And let’s say on a, let’s just ball park a 300-thousand-dollar purchase price that could be what? Maybe 15 hundred, maybe 2,000 dollars, right?

Collier: Right.??David: Well, half of that to you will be a thousand dollars just for round numbers, some, sometimes on a new construction, those contracts say the, the attorney title is not split, so that’s the difference if we’re talking about negotiating closing costs, that’s a difference of a thousand dollars just off the top, so very, very important to, very important to have that agent representing.

Collier: And experience, well Howard Cannon by the way, Howard Cannon is watching, see he just got out of surgery a few days ago.??David: Oh, man.

Collier: Howard, hats off to ya! Hope everything’s going well with, now that you’re wearing one eye, wearing an eye patch, but you’ve been wearing your Piglet outfit, I think is a Piglet onesie or is it Eeyore? I forget, but man there is no better, he’s a dude’s dude and he wears Eeyore and he’s not afraid to show him. ??David: That’s right, huh?

Collier: I mean, I tell ya you have to be a real man to do that. ??David: (Laughter).

Collier: Anyway, number 3 is if you’re a buyer that wants to see every house in an entire real estate market and needs real people by the way, David.??David: Oh yeah, yeah definitely, there’s people that wanna see every house out there and it’s just not, it just doesn’t matter, I’ve, I’ve had agents say that you know it’s gonna take maybe 5 houses. I know it takes more than that, I’ve heard some people say 10 to 20, but you know you don’t wanna look at every house on the market, but it is true.

Collier: I mean the, the other problem is, if you’re being wise you wanna be in a particular school system, I mean you know you send your kids to a particular school ‘cause you and mom like the school and you chose it for that reason so.

David: Yeah.

Collier: Don’t start looking at houses outside of that ‘cause it’s not gonna do you any good, ‘cause guess what? There’s not gonna be many exceptions.

David: Right, absolutely.

Collier: It’s gonna be.

David: Absolutely.

Collier: So, all right, next one.

David: Next one is getting hung up on the cosmetics, you know paint colors, flooring, things like that, you know sometimes houses can be in great condition and, and obviously that can sell, but you know obviously you understand that paint colors can change and flooring and all that kinda stuff, you can get in and make changes to that once you get the house.

Collier: I mean, I talk to you about every other weekend and you’re doing something right?

David: Yeah.

Collier: And so, there’s plenty of times that you’re home and you change that stuff.

David: Absolutely, absolutely.

Collier: All right, next one’s not doing due diligence on, on a particular neighborhood, look there’s just some things an agent can’t tell ya and one of those is crime statistics. Now, I don’t think most agents are gonna steer you wrong, in terms of is it an overtly dangerous area, but if you’re one of these ultra sensitive sissies that has to have where there’s never been a crime committed and all that. Well, you need to do that research if that’s what you’re worried about right? Because a) that’s not existent, but B) you need to research that, but also you need to know what are the rules, what are the, the regulations of that.

David: Yeah.

Collier: As of late.

David: Yeah, I mean they need to only drive through the neighborhood will tell you a lot of things, people parking on the street, neighbors then, not taking care of their yards, you know several things. I mean, you can drive through the neighborhood at different times of the day and see the type of people that are in there, you can see the way people live their houses, what’s visible in the yard, stuff like that.

Collier: You know one thing, I think folks forget about it too is they’ll see a neighborhood, say like Ross Bridge near Birmingham that’s never done, how is the future construction gonna affect? Do your due diligence and find out if they’re gonna have to use my roads that I’m on to get.

David: Yeah.

Collier: Construction trucks and therefore, they, the road gets beat up and who’s gonna pay for that? I mean, is the city responsible? But I did wanna mention I was in your neighborhood the other day; I had no problem finding my way out of your neighborhood, anymore right?

David: No, you shouldn’t, you shouldn’t, you know we, we’ve put up about 75 new signs over the last couple of months to, to help people out just in case.

Collier: I mean.

David: Even though, even though it’s mostly residents, so we should know where we’re going, we had to.

Collier: I mean (laughter), take a left to the obvious exit, thank you.

David: Yeah, yeah.

Collier: Thank you.

David: You gotta love that.

Collier: ‘Cause we don’t get UPS’s in cars anymore by the way, I mean.

David: No.

Collier: We don’t get that.

David: No.

Collier: All right, what’s next?

David: All right next one, next one’s making a low-ball offer.

Collier: Yeah, tough isn’t it? Unrealistic low balls are the best, look if you’re gonna low ball somebody, just know there’s a great chance that they get ticked off and they don’t respond to ya, so you in turn don’t get ticked off. We’ve seen that happen all the time and in this kind of environment quite frankly, just doesn’t work where you’ve got low supply, high demand.

David: Yeah, I mean you don’t wanna upset the other side, this is a negotiation you’re not trying to be friends? But at the same time, you are trying to do business so keep that in mind.

Collier: Yeah absolutely and skipping the home inspection, one of the dumbest things that buyers do, really.

David: Yeah, it’s really, it’s really concerning, obviously a home inspection is not required, but you know either skipping it or you know having a friend do it, not sure if that’s advised either. You might have a, a family member who is a, I know, I’ve had somebody that had their father, who’s been in the construction business for 30 years. Okay maybe you trust him to do it that’s fine, but you know a licensed inspector is going to find the problems, you know it’s their job they’ll uncover everything.

Collier: And he has, he has the insurance and he makes a mistake, things happen, but that’s why he has insurance, I mean.

David: Absolutely.

Collier: I mean (inaudible), these guys, but I am saying that’s, that would be one of their selling points to ya.

David: Absolutely, next one is not purchasing title insurance.

Collier: Yeah, crazy huh? (Cough).

David: Yeah, I mean you won’t, you won’t, you won’t free and clear a title obviously, that’s a big deal you know you don’t want anything coming up from the previous owner bite you in the, in the butt later on so.

Collier: Well.

David: That idea is good though.

Collier: Let’s be real, every, every lender that I know of is gonna require especially under federal guidelines, I assume it’s a federal guideline for you guys to be able to sell the mortgages on the open market, but a lot of, a lot of it, it’s policy so, it’s gonna be on a lender’s policy. So, it’s really not much more and quite frankly it invokes the other splitting of that fee.

David: Right.

Collier: So, you might as well get an honest response because we’re talking figs encouragements, stuff that would’ve been found but it was a mistake made.

David: True, yes, very true, so we, we definitely as lenders have to get the title insurance so not much extra on that. Not understanding closing costs is the next one, you know I have to say this can be very confusing, but you know I guess the mistake would be to not ask those questions and what, which ties into the next one not asking questions. I mean you want to, you don’t wanna just go through this process and not understand everything that’s going on, there are a lot of numbers on the page, things getting paid for, there’s a lot of money, there’s a lot of fees, there, there certainly are. There’s a lot of things that have to go into a real estate transaction and all those things have to be paid for, but if you just work with a good lender, work with a good real estate agent that explains those things to ya, takes time, understands your questions, I think that’s a big deal.

Collier: Hey, I mean you look at these things and quite frankly we, I see it all the time, I, I, we have a lawyer in our office Ryan Sparks and I, I listen to him all the time explaining no! That’s a pro ratio, no, no, no, that’s a credit to you! They’re not understanding and they don’t, certainly don’t come with an open mind ‘cause everybody comes with the idea that you’re screwing ‘em (laughter). You know that you’re taking money and he has to explain no, that’s you getting money back!

David: Yeah.

Collier: So, ask early and often in the process I think and that’s one thing I’ve always valued about your services, is that you’ve always been good and it makes you so mad when people don’t ask questions, I know that.

David: Well yeah, it’s just like the, the, the example we alluded to earlier about the contract, the you know when the half trade, half title is not. Look, if your contract says that they’re not gonna, that they’re not, that you’re not gonna pay it as a seller that’s fine, but I mean look, that’s not standard ok? Most all contracts have 20 half title and you may disagree with me, I mean whoever’s the seller might disagree with me that they need to disclose that, make sure it’s understood but look, I will make sure it’s understood fits outside of the norm. I will make sure it’s understood, those are two of the things that I really stress, it’s gonna the cash to close and the monthly payment, that’s what people are really concerned about, so that’s, that’s where we are making our money, it’s taking care of those, making sure everybody understands what’s going on and making sure there are no surprises in those 2 things.

Collier: All right, Ray Williams said hello!

David: Hey Ray! How you doing buddy?

Collier: All right, next one not budging for operational costs of the house, you know.

David: Yeah, now this is a, this is a big jump from renter to ownership, right? So, not, not knowing how, what the, the or having money to plan the kind of expenses you’re gonna have for owning a home right?

Collier: I mean it is funny, that is one of the fun things ‘cause I was there, you were here, we were all there, that’s, there’s nothing more fun than that 23-year-old that calls you and going “Hey, who pays for this plumbing leak? Who do I call?” Well, call a plumber and you pay him with your credit card

David: Yeah.

Collier: You now are in the real world.

David: Yeah.

Collier: But by the way, Howard Cannon just said is that not the key reason, going back to the unexpected expenses explained, is that not the key reason to have a real estate agent, a mortgage broker that you fully trust, absolutely! And, and you know what? There’s so many out there, but you have to trust ‘em, like you as the buyer or the seller need to make sure you trust.

David: Yeah.

Collier: The one you’re working with.

David: Yeah and I think it goes back to information and planning and, and just be aware that you know we can even get into this with, with down payment options you know, it might be better to put a little less money down and save for these unexpected expenses. But you know again, you’re, you’re looking for advice, we, a lot of times we have people call us asking about rates and you know that’s just what people know to ask m, but you know you’re looking for advice, you want help on are you to purchase a home? I mean you know and, and things like this are, are one of those items that we can bring up and talk about.

Collier: Well you know the next one is, we seen this happen too, a lot of these younger folks remodeling too soon, I mean they watch HCTV, it all happens in an hour and hey everything goes smooth, it never goes out of budget so.

David: Yeah.

Collier: Remodeling too soon.

David: Yeah remodeling too soon, yeah that can be a big mistake, now one, another mistake on the other side is not remodeling at all and then.

Collier: Yeah.

David: You get ready to sell the house and you gotta do all these upgrades at the end to get it sold, but you didn’t get to enjoy any of it.

Collier: Well, un.

David: Right?

Collier: Unfortunately, my wife is mad at me about that, but hey, I had a, I have a 9-year-old, things get destroyed so.

David: That’s right.

Collier: Hey, that’s why (laughter), that’s why is so nice now that we’re remodeling right? To sell it but.

David: Contin, contingency plans, right?

Collier: Absolutely all right, now this is one that you and I have talked about lately and will be talking in future episodes about this, well kinda what we talked about the market but hoping to turn a profit ‘cause you, you know I’m a big believer that a lot of this profit talk out there is phantom profit, ‘cause no one wants to talk about inflation and how much we’re really making on these houses and whether or not is really a good investment, that kinda thing. I’m not a bear, but I’m right in the middle and you’re very much of a bull on this, but talk about this.

David: Well I think, I think the home, purchasing a home is sort of like a forced savings account, I still think that real estate’s gonna appreciate it, I still think you’re gonna make money overall, but you’re right if you take into account the, the expenses on the sale side of it along with inflation, man you’re gonna, it’s gonna take ya you know some years to actually make a sizable profit as some money that you can put in your pocket.

Collier: Real, real money.

David: A lot of times people, yeah real money, a lot of times people just turn around and put that money into the next house, which is not a bad thing at all ‘cause remember you’re still growing an asset. But this conversation is changing and it’ll be interesting over the next 5 to 10 years to, to hear.

Collier: Well and one thing, just so we’re clear we’re, we’re not saying it’s not a good thing ‘cause you gotta have a price to live, it’s your expectation that you’re going into the house and thinking you’re gonna get rich off the house. If you were a (inaudible), in terms of after inflation, you, you have that phantom profit we were talking about.

David: Yeah.

Collier: That’s ok because you have to have a place to live and you need to live, if you’re gonna live in the world you need to live in a place you like.

David: Yeah and you own it, you own it, it’s yours, you, you make the decisions, you call the shots so there’s, there’s benefit to that right?

Collier: Absolutely and, and you know it’s a little bit of the argument of the tax issue that’s, that’s overdrawn anyway. I mean, the I get that you lost the tax deduction, well if that was your main draw, right? Unless you’re ultra-wealthy, unless you’re ultra-wealthy! I mean, we’re not talking you make 300 thousand a year, we’re talking you’re making millions a year and you have a massive mortgage, that’s when it was really good right?

David: Yeah.

Collier: ‘Cause you don’t wanna get a deduction when you pay something, you know? So, you know, there’s that so anyway.

David: Absolutely.

Collier: Moving on! We’re gonna talk about one of your favorite things, you’re right near Wall Street right now, so let’s talk about the stuff.

David: Yeah.

Collier: Real quick.

David: Matter of fact, I took, I took the subway you know like some people that went there are not bog fans of taking the subway, I think the subway is entertaining.

Collier: (Laughter).

David: I mean really, you really see the people on the subway in, I have fun with it, I you know, it’s interesting, very interesting, I took the subway down to Wall Street yesterday and the New York stock exchange non-stop, very cool, very cool to see.

Collier: Did you see the, the running of the bulls?

David: No, no I didn’t make it down to the charging bull, but I did walk around the New York stock exchange, very cool.

Collier: Well, I don’t wanna call myself a stock genius, a stock guru, but there is one bull that’s out there and it’s a stock pick we’ve talked about every week and it’s called Carvana, the Utah.

David: Carvana, yeah did you get into it?

Collier: Nah, I didn’t because I keep thinking I’m too late because when I asked you at thirtyyy three, thirty-four dollars, you said well there’s a little trim line here I’m seeing.

David: Yeah.

Collier: And it’s probably gonna be bucking up, I guess that well we talked about being a bull and that bull ride on through that line and now sitting at about 51 dollars a share.

David: Yeah.

Collier: Up 20 percent since Monday of this week.

David: Man!

Collier: Not your fault, David knows what he’s talking about but I was just.

David: It’s just a, another miss all right, really, really the, the entry point was when it broke that trend line so, it gets balanced up against that trend line and it, and it moved up you know just like it should after it breaks through the trend line so.

Collier: In other words, you make money after it breaks through that trend line.

David: Yeah, yeah.

Collier: Well one thing, that I know you got and I know you’re, you did not have a chance to really talk about it, but my advice from the great Larry Toffa is an old Ford executive that relying for some of these stock picks that we give ya. Great guy, knows what he’s talking about he gave me one this week and it was Aris, Ares, I don’t know how you, it’s A-R-E-S, capital corporation which is a A-R-C-C.

David: It’s a symbol?

Collier: Yeah, it’s a closed-in phone like we’ve talked about before, trading around 17 to 18 dollars a share. However, it pays over 9 percent dividend.

David: Yeah, nice!

Collier: And in this market I mean, it’ll protect you from ‘cause I’m hearing a lot of people that are listening to the nay-sayers in this market they’re going “Well, it’s too late now” right? But they’re the same people that’ve been saying it’s too late now and miss the entire run up of 17, right?

David: Yeah, yeah, I mean you’re never gonna, we say it all the time you can’t time the market, it’s, it’s whether or not you have time to stay in the market, you know it’s just like your Carvana, I mean you, you, if you can watch it every day, if you can see it break that trend line and, and get into the trade, then do it. But otherwise, most people have other jobs, they have other things to do and then they’re watching stocks every day, if you’ve got time to put your money in the stocks and let it sit and grow, then you’re gonna win regardless of if it’s January 2017, January 2018 or March of 2019, so whether you were in it then or in it now. If you’ve got time, you’re gonna make money so I’ll be going with that.

Collier: Absolutely, one thing I wanted to mention, you know we’ve talked, David and I talked about closed in fun, we’ve talked about PCI, a few PEMCO find a few weeks ago, to clarify what a closed in fund is, basically it’s just a limited number of shares that are issued just like a stock of Carvana, there’s a limited number of shares that trades on a daily basis, but it’s more like a mutual fund that you know, if you don’t know what a mutual fund is, it’s assess every day once a day. Your buyers set out a mutual fund once a day and that ‘cause at the end of the day, they come up with a stock or their mutual fund price of the day, unlike a mutual fund, a closed-in fund is trading all of that and generally speaking is able to pass on a lot of their, good and bad, the tax liabilities or the expenses that go with it or the profits ultimately and they pass that back to ya in the form of a dividend. So, you don’t see that Carvana type movement, but you also are protecting that downside, so if you’re somebody that, that wants to get in the market, but wants to make sure that hey, I really don’t wanna lose money, go ahead and put it in something like this or PCI because whatever you’re gonna get, whatever you’re gonna lose in stock value, like last year I lost about 8 percent in stock value on that PCI. But I made about 8 and a half percent dividend every month, in a year where people are losing 8, 9, 10 percent of their true portfolio, I was breaking even with that.

David: Yeah, that’s very true, and that’s a, that’s an annual dividend and so if, if you, you know obviously you gotta watch the stock price, but when the value drops you have that positive dividend offset, there’s losses like you’re talking about.

Collier: Yeah, yeah, they will in fluctuation and.

David: Yeah.

Collier: NPT’s another one, I think it’s their ticker, the Birmingham base maybe invest in hospitals, they pay about 5 and a half percent dividend, so I like them as well.

David: This week, man, what I’ve been looking at is VOO, which is a, an SNP index, it’s Vanguard SNP 500 index we talked about Warren Buffet last week, put his money on the SNP it’s really is just saying look, we’re in America put your money in SNP 500 and you know American businesses are in there, they’re gonna make money and you don’t have to worry about owning an individual stock, you don’t have to worry about all the, the founder of Facebook getting in the news, doing something stupid and, and shares go down right? You’ve got, you’re spread out, you’re owning different percentages or small percentages of different stocks of the SNP 500. So, you know it’s diversify lower risk, but you’re betting on an American business and yeah, making money.

Collier: And, and one thing I would say is that Twilio, is the only one that you did not talk about they’re the only game in their industry, it has almost 300 percent or 280 percent or so, since the beginning of last year. It still has legs, it pulled back a little this week so, if you’re looking for an entry point and it’s not gonna make that kinda money, but it may be a good entry point for ya.

David: That sounds good, I’ll take a look at it.

Collier: All right, all right, we will be back next, David will be back here in Birmingham at the hey, the world headquarters of the Real Estate Happy Hour, but don’t forget.

David: The world headquarters?

Collier: The world headquarters.

David: Yes!

Collier: Don’t forget to check out our podcast! Which is found the Real Estate Happy Hour just search it and any way you find great?

David: Pod.

Collier: Any way you find great pod, Google podcast, Apple podcast, Stitcher, Spotify, all those great things, download it, listen to it on your ride to or from work, I mean works better than most of the utilities trudging gas.

David: That’s right! You guys have a great weekend and we’ll see you next week!