The Real Estate Happy Hour Show - Episode 56

Watch the Real Estate Happy Hour Show - Episode 56

The Most Intelligently Fun Show in all of Real Estate is on the air! It’s time for The Real Estate Happy Hour Happy Hour Show. On today’s show Collier Swecker & David Arnette are talking about the benefits of a pre-listing home inspection, refinance loan craziness, Collier’s appearance on the Money Girl podcast, and Collier’s thoughts on the Mötley Crüe documentary The Dirt! 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 four o’clock on Thursday; it’s time for the Real Estate Happy Hour!?

David: We are back again.

Collier: Man, this is exciting.

David: You guys knew we were coming back, because you always wait on us to get started I know, I know, we’re back!

Collier: Hey, Aerosmith (inaudible), Aerosmith.??David: Yeah, Dream on.

Collier: Hey! One of the greatest rock and roll band, I saw the other day were they (inaudible), as one of the, it was only like three bands in the Billboard magazine whatever said, really could, sell themselves the same way they could in the eighties, they could today, you know over time.

David: I tell you, they’re a big deal, the song is dream on and we are, we are (inaudible), the American dream, helping with the American dream.

Collier: That’s what we do every day! 

David: Busy this month, doing the.

Collier: It’s back, the Real Estate market is back.

David: Real Estate Market is back, we’re doing good, everything is cooking (inaudible).

Collier: Man, you’re, you’re a, every time I call you man, and you just get enough from the call and back to another call, or I call you back ‘cause I’m on the phone with a client.

David: It’s going good, you know I think, I think that the rate’s cooling off and then staying low is helping out in inventories, definitively going to uh…you know how is it gonna come in the market, you know I think, I think people the fierce and the anxiety for last year’s album.

Collier: I hope so.

David: (Inaudible), out there.

Collier: They’re getting out there, you know I was talking to one of your colleagues here, in the office, you know, he was talking about. I mean, there’s a lack of inventory, you hit a back club with eighteen people he was saying all right? They’re ready to go, so if you are looking to sell your house you may want to get out there, because there’s people willing to buy it.

David: Yeah, there is plenty people in the market looking around so I’d be a good time to do that if you are looking to sell, give Collier a (inaudible), call and do it.

Collier: Do it, anyway man, I’m just now getting over (inaudible), loss by the way, I didn’t know if I could do this show today, ‘cause I’m still so, I mean I have never let this bother me like I have this one.

David: Man, this was upsetting ok? I tell you, they, they were on a great run and they had a great attitude, they had a great team, some good players.

Collier: Man! I mean the fact that matters of course, you know this, but comes down to the very last second all they inbound the ball (inaudible), champions, inbound the ball, left basically a second left, goes, shutter goes off, releases the ball after that gets touched in the leg like a girl touch, I mean nothing big.

David: Yeah, it really was and I mean, ok technically, it’s a foul but in the last second of the game is not foul, I mean you cannot determine you know, all that effort, all that work to come down on that (inaudible). I don’t think personally, I don’t like the call, but what we were gonna talk about is how Obrin responded say look kids make mistakes, coaches make mistakes, players do things wrong, referees make mistakes and they called foul whatever.

Collier: Yeah, my (inaudible), yesterday in a post he made, this is a politician talking about the greatest thing he got out of the tournament was Obrin in a loss because I mean (inaudible), fan, but, the maturity he saw out of these kids; but that was this team’s was special for Obrin. I think you said it in every program that there is a team that shifts a program and this was it is for Obrin and these kids. I mean, on top of their athletic ability, the boys, the kids you know, that committed that foul. He sat there and took every question, didn’t make an excuse and (inaudible), looked at the cameras and just said hey, you know what I don’t tell the ref how to ref, he didn’t have to tell me how to put the ball in the hoop, so we move on and that’s a life lesson for all of us really.
?David: And that’s really good for, for the attitude, for the team, for the program going forward, that’s awesome, you know I’d like to see Virginia win, Virginia is the one and only (inaudible), that’s ever lost to a 16, the next year they come back and win, the whole thing.

Collier: They did, it’s a great story, I had a couple of texts or a couple of emails, from our CEO going on about Couch Bennett and his beliefs in God and how he runs the program, I mean, such a great guy. The best thing about couch Bennett is always gonna have an (inaudible), next to his championship so.

David: Yeah that’s why, that’s why, that’s beautiful. Carter says look man, he is you know, they came from, from a devastating loss last year.

Collier: Oh, oh, as bad as it gets for the program!

David: As bad as it gets, I mean the only team, the only one seemed to ever lose 16.

Collier: And by the way was down again this year in that same game.

David: And then they come back and won, I mean it’s, it’s a great story on both sides, really.

Collier: Well, (inaudible), for their, for them, now hey! I wanted to tell you this before we get in the rail safe, on Netflix, have you watched this documentary called the Dirt, Motley Crue, about Motley Crue, I’m a huge eighties, hair band, metal band fan, now have you watched this?

David: No, not seen this, I’ve heard about it several times.

Collier: Phenomenal! Right, well do not watch this in front of your mother, your grandmother, your kids, anybody from church, do not watch it. These dudes were wild, I mean like, like I saw in an interview Vince Neil, loved Vince Neil but everything he said we are talking the (inaudible), he said that was kinda PG, compared to what really happened, so if you, if you are a big Crue fan, a big music fan, man watch this ‘cause dude I’m telling you, you thought anything we ever did (inaudible).

David: I could only imagine Motley Crue and Michael (inaudible), loves them but I can only imagine Motley Crue in their popularity in what? The eighties? Nineties, was it?

Collier: Early eighties, I mean (inaudible).

David: I can only imagine.

Collier: I mean didn’t you think about Tommy Lee? I mean think of Tommy Lee right? He is (inaudible), up I mean, not that I mean he is a decent looking guy, but think about the two pin ups from our generation. He, he basically married or dated seriously Heather Locklear and Pamela Anderson, I mean, that’s pretty strong, I mean.

David: It’s funny to talk about it that way, but yeah I mean.

Collier: Bruno their posters in his room, so.

David: Had to, had to.

Collier: All right!

David: Now, so tell us about this money girl podcast.

Collier: Yeah, thanks to the success of the Happy Hour, we got to appear represented at homelive.com at Google, on the money girl podcast Laura Adams is the host over there, great podcast by the way, down, this is a show that’s been downloaded about as much as we have, it’s been downloaded forty million times.

David: Oh yeah, yeah, just a little bit above us.

Collier: Yeah, just a little, she’s been going since ’08.

David: I think we are about thirty-eight million.

Collier: That’s right, thirty eight that’s it, anyway was on there talking about selling your home and what mistakes to avoid, you know it’s a really eye opening exper, she’s a very professional lady, really big in the personal finances, really kinda what we want this show to get to, in terms of what we talk about the personal finance. The (inaudible) and breaking those topics down, but it’s episode five eighty seven, five eighty seven, this is episode fifty six, so we got a few more to go to catch Laura.

David: Yeah, so by then we will be forty million, I mean no doubt.

Collier: Yeah, so you go check her out, actually I do recommend her, a phenomenal lady and a good time and thanks for having us on Laura.

David: That’s awesome, look, a quick update on (inaudible), we’re at, yeah, rates, yeah taking up, look, some people call you for a meeting from another lender that said that rates are getting worse which is a little confusing ok? Rates are great right now, technically yes, they are getting a little bit worse, but we’re talking about a minuscule you know, right now 4.12 on the 30-year, 3.6 on the 15. Guys, this is a, this is a trend now, that rates are improving, I just watched a, a post yesterday, the National real estate post, (inaudible, guys very intelligent, been watching them for years, and he was talking about the potential of recession on the next, let’s say twelve to twenty four months and typically you know, real estate prices do well, home prices do well, rates actually get lower in the recessions, so look, we’re, we’ve got good times ahead.

Collier: Oh, you aren’t talking about (inaudible), in the war times, war breaks out, hey great time to buy a house ‘cause murder rates go down.

David: Until, look I think this, the real estate market is gonna be protected because you know, it almost crumbled the economy in two thousand eight (inaudible).

Collier: It really did, absolutely and that’s why you are seeing these edges.

David: And who are you going to take care of first? I mean, we saw, we saw what happens when you mess with the housing market right?

Collier: Oh, every aspect if you think about it, from the greed, everything dealt with, anything that collapses had a finger in real estate (inaudible).
David: And last year, we had a lot of waves ok? A lot of things happened last year, but this year, man it’s just, it’s just been set up for a great year and I really think so, so it’s good to invest in property to put a Popeye’s chicken place on? Oh absolutely, Martin Jones, appreciate the question.

Collier: Yeah, I mean I like Popeye’s.

David: Listen, if you can sell some Popeye’s chicken, then there’s gonna be obviously a good deal, maybe pizza, I heard pizza wears the best margin in the restaurant game.

Collier. Yeah and you know, the other thing that I would also say is that relative to these fast food type or any commercial space, look at Mc Donald’s, Mc Donald’s I remember (inaudible), saying you know, everybody thinks I’m in the burger business, I’m in the Real Estate business.

David: Just buying and buying places, (inaudible).

David: Absolutely, well I wanted to bring up, ok so, Rachel dropped in (inaudible), potential is out there and you have got people calling you, right? They give you information, and a lot of companies live on just rifeness business and I think we, we eluded to the last week, I want people to be careful we have a scenario that popped this week in his office, it was a (inaudible). His client was reaching out, he says hey, I got these numbers from another bank, they’re telling me I should rifeness, he looked through and it was ridiculous, they were adding, this was a no cost rifeness too ok, let’s see here.

Collier: Patton Oswalt.

David: Patton Oswalt.

Collier: Hey, that’s right, he’s a comedian that’s not funny.

David: (Inaudible), picking on you?

Collier: That’s good, that’s a good one but.??David: Patton Oswalt, I’m ok with that, all right so listen, this guy or this client, I mean not gonna put any names out there, there’s no cost (inaudible), and I wanna highlight that real quick, no cost (inaudible), people would mark it that to you.

Collier: Sounds great! Yeah, they’re taking your loan balance adding that too on your loan and, and then giving you a new loan (inaudible), they’re saying no closing costs for your pocket.

Collier: Ok.

David: Yeah, they’re not coming out of your pocket; they’re coming out of the equity of your home because you are actually going to a higher loan.

Collier: Then, you are saying that I’m gonna, if I’m really only needed 200 thousand, I’m gonna go to 2 or 3 in loan amount.

David: Or let’s say that your, your (inaudible), payout is 190 thousand ok? Your new loan is a hundred and ninety five. 

Collier: Yeah, yeah

David: What happens there?

Collier: Is gone, equity is gone.

David: Is that a new cost?

Collier: It costs, it cost me five grand.

David: Was that the penguin in Batman.

Collier: (Inaudible), they’re talking to each other.

David: That’s good, that’s good, so anyway, this one, they were adding about 35 hundred for loan amount and they were bringing (inaudible), 3 thousand the total add was about 65 hundred dollars.

Collier: To the, to the loan that they were getting.

David: And I think this client has been in the loan for less than a year, they were backing this up to third year.

Collier: Ok.

David: So, they were add none about 8 or 9 months you know, 8 to 9, 12 months to the loan, saving 40 bucks a month, so you’re paying 6,500 dollars.

Collier: So, what’s up break even? Just to get that back.

David: The break even on that, I think I read it, was 12 years.

Collier: So, over 40 dollars a month.

David: Yeah.

Collier: It would take 12 years before you start making money on this loan.

David: No cost loan, guys I’m telling you, listen we are (inaudible), bank, like we are a retainer for you all, I mean I had a guy called me about a, yeah, I had a guy called me about maybe selling his property because he’s got a house. He has already got a new one, he’s like well sure I’ll rent it out and I was like yeah, you need to call (inaudible), have him (inaudible), the riddle for you and then down the road, you’re gonna have this asset just sitting there, I didn’t charge him for that advice.

Collier: No? Great advice.

David: Right? But, he’s a past client of mine and that’s what we do, if the (inaudible), doesn’t make sense for you guys, we look at that, we tell you not to do it.

Collier: I think that the funny thing of this whole thing is, is that a lot of that we’ve talked every week with this national lenders, the rockets and the stagecoaches and stuff like that. A lot of these guys are teasing into get involved in these refinances that sounds phenomenal and quite frankly, I think giving you, if what they were advertising was true, truly! There’s no (inaudible), but the problem is the (inaudible), says something different.

David: Yeah, they’re just trying to get a deal, regardless of whether is good for you or not, they’re trying to paint a picture that there is benefit for you saving 40 bucks a month, but we’re tacking on 6,005 dollars in just extra stuff.

Collier: Always like to think what, what are the guys with true wealth, what would they do, right? And doesn’t makes sense not to (inaudible), the other thing you know, we talked about before is like total cost of the loan right? People aren’t looking you know, people aren’t looking at the total cost, that’s why you all use the APR for and those type things and these things can get out of hand. I mean, the fun days were while the closing attorney watched some of these come across, remember the warehouse loan that they have, 3 percent origination fee and man!

David: Yeah.

Collier: I mean it would get you out of hand.

David: Just I mean don’t, don’t just look at the monthly savings you know, look at your overall financial picture and make sure that that’s improving, don’t take a 25-year, you got 25 years left on your (inaudible), and stretch that back up for 30 years, of course you’re gonna save some money every month.??Collier: Well, that’s, that’s right (inaudible), just said what’s the most expensive property that you have bought? Well, on top of our house I did do a development one time, so that was very (inaudible), it was on borrowed, other people’s money, but that was very expensive.

David: Good, good.

Collier: What, but hey, that was for business.

David: For business, so next moving on, we are the benefits of the pre-listing home inspection.

Collier: Yes hey, we’re not talking about, we’ve talked about (inaudible), Tom Horn, talking about when you were gone, ah on your cruise, I believe we talked about the prelisting appraisal which really gives you the value of a home. The other thing that affects it… uh the sell and alter the value is the home inspection at the very end. And what are some other things you will benefit from by doing it.

David: A pre-listing home inspection, you were right.

Collier: Right, so we need to reduce the stress of selling your home and what that means is, I just before coming in her, I just got a…a home inspection on the back side of the transaction, I’m a buyer at one of their listings and there’s an extensive list, one of most which are tricky tax have we known on the front side, we would have gotten fixed right? And so, it would have made a smoother transition here, now we’re under the gun, I have two days now to get contractors out, (inaudible), we’re recording this if you are watching a replay on a Thursday. A lot of these contractors will not show up on a Saturday, but my timeline ends on Saturday, yeah right? So, it makes a lot of that easier, the other thing is to, they can request that we use professional people like, like if something is easily done by a non-professional. I’m not gonna say professional I mean (inaudible), right, right? Man, you know you really got to be careful and go ahead and think about get it up front, for that reason and the next one, which is help with pricing your home correctly, you got another condition of the home, so that we know if there were any issues may or may not perform that repair or it has this certain condition (inaudible), price it accordingly.

David: Yeah, there are certain things you know buyers are gonna ask for you know, and I will you know, play the devil’s half ‘cause some of this because I know that you know, some of these things come up and they get dealt with in the process. So, sometimes I’m not sure how much of this information would help before like (inaudible), pricing your home, you know, because some of this stuff, you’re, you’re saying you are gonna price it last, you may have to disclose that, so we really know about it.

Collier: Well, the, the, you do, but I don’t think a lot of people really know what’s going on, like I asked my wife, the upstairs HVAC is doing? ‘Cause it blows cold air, that’s because I’ve been nursing it for ten years right? But, she really thinks man, this is phenomenal!
?David: Yeah.
?Collier: You know, so I do think that there and, and we may say pricing it correctly, I don’t know what a better word for it would be, but it’s more of getting in the right head space relative to price right? That no one is gonna take the house in this condition, unless I fix these things.

David: Yeah, I think the biggest thing here is just the, the buyer, I mean, I’m sorry, the seller understanding the items that come up on an inspection, so they’re not caught off guard ‘cause they get a little bit offended right? When they see this inspection, part come across.

Collier: It’s not bothering me.

David: Yeah, like what in the heck is all this stupid stuff?

Collier: Yeah and you know, one of the things I always tell everybody is if you, if you’re gonna stay in that house you need to fix it, if you’re gonna stay because I talk about most of the things relative to things like electrical, plumbing, these kind of things, water leaks. But, the thing again we have this guy, there’s nothing wrong with the water heater is twenty years old, for instance on this one that we got today there’s nothing wrong with it, it, it’s a water heater that warms water and it’s not broke, I mean you’re old and you still work I think right? But if it’s not broke, don’t fix it.

David: So, what’s next? Speed up the sales process.

Collier: Absolutely, he would right? Because right now, I’m on lockdown with this contract until such time, I can finalize it with these people, but in this relates to you guys, a realtor, a good realtor is not gonna give you the release under appraisal until this is completed.

David: Yeah and I think it also, I would cut down the time that the seller sees and get (inaudible), it there are already ready, they could go to the other agents and hey we, we did a pre-listing inspection, we already knew about a couple of this little tick tack (inaudible), right? So, I think is important, it buys you time to make the repairs ready before (inaudible).

Collier: Absolutely, I mean like we talk about earlier, the fact that you’re gonna have a gun to your head those final days, when you’re getting these things done and that, that buyer is putting in (inaudible), said hey, you need to use a license in this and a license in that. It’s funny how many agents put like, I don’t know license painter to do this, there’s no such thing as a license painter, you might have a business license, right, right? It’s just funny to me, it’s like license landlord I mean, I don’t know.

David: Yeah, yeah, avoid the need for renegotiation.

Collier: Yeah, which is exactly what happens when a lot of these people, they wanna renegotiate, oh, Amanda just popped up and she gets mad if we don’t say hi, hi Ginny! You know.

David: There’s Ginny!

Collier: We, we, we almost did renegotiation, we (inaudible), make the repairs and renegotiate basically the terms of the contract, we might have to reduce the price, offer more for concession, but that can become a problem because you guys said I’m only allowed with a certain amount of concession.

David: Yeah, yeah, let’s say, let’s say, you take the contract, it’s already, we already watch what the seller can do, so we just have to (inaudible), at that point sometimes we have to pay the contract directly to the sellers, out of the sellers’ money, on the closing disclosure. So, lots of things to think about there, and if you’ve done this prior to the listing right, you already thought about all this, you’ve had this conversation with your realtor.

Collier: Absolutely (inaudible), married to Courtney Cox, wrong Courtney.

David: It’s a David (inaudible), yeah, better than Courtney Cox.

Collier: Yeah, Courtney.

David: But, I found the Courtney thought.

Collier. Your Courtney is better looking than that one.

David: So there.

Collier: Yours is hot.

David: There you go.
?Collier: I can’t believe it; I’m calling your wife hot, man, why not?

David: Just call your (inaudible), you never know (inaudible), it will help improve buyer confidence because, why?

Collier: Because it’s already done and they’re not gonna see this ticky tax stuff all over the place, they’re not, here’s the thing, the problem is when you leave a lot of things done only report, he’s marking a bunch of little things you know, it’s funny when I was talking to the seller today I talked him down real quick because I said hey look, I know this looks bad right? Because they’re numerous, they’re not bad, but, I don’t blame them.

David: But it’s a lot of things, items.

Collier: Absolutely, I mean you see twenty things and you think oh my god right? But, we cannot, even I can do, well no.

David: Yeah.

Collier: I can’t, I can’t do it.

David: Not gonna do that and number 7.

Collier: Most importantly.

David: You make your agent’s job easier.

Collier: Yeah, that’s the most important; you make your agent’s job easier because you know what? We won’t have to do 1 to 6.

David: It can really help the process, it can really help streamline the process and let me tell you something, right now in this real estate market for the next and least 45 months were, we’re gonna be busy, anything you can do to streamline the process and make things simpler for everybody involved. It’s gonna be a big deal and getting these things done early, cutting down on the little things that your buyers get hung up on, it’s gonna make the experience better for them too.

Collier: Before we are about to move to the personal finance, but before we do I’ve, I’ve just remembered this, you know I’m a big fan of Walmart of the seas, I mean Carnival cruise lines ha! Did you send me a story today? Hey, I’ve been telling everybody Carnival is awful so, tell me what she saw.

David: Oh, Carnival cruise line, almost got banned from any US port, banned from docking the ships on any US port.

Collier: (Inaudible).

David: Which obviously, there’s a ton of ports where they load up.

Collier: Where they embark, we use the proper word.

David: Whatever, embark.

Collier: Wait you have been cockt, every time we go cocktailing doing that hour.

David: Yeah, I don’t know.

Collier: I don’t know, it’s called embarkation.

David: Embarkation, but anyways so, they were caught lying about dumping oil.

Collier: Little thing.

David: Dumping oil and they’ve been, they’re on provision for that, now they recently got caught for dumping gray water, some plastic and some other things just to the ocean.

Collier: During their provisionary period.

David: Yeah.

Collier: Brilliant.

David: Yeah, 40 million things.

Collier: (Inaudible), that’s phenomenal, but the curious thing is that the judge basically told the CEO or the CFO or whatever, what are you doing? I’m going to, I mean, but the fact that you have to tell a major cruise line, this is ridiculous!

David: Oh yeah.

Collier: Anyway moving on to personal finances.

David: Some more said (inaudible), somebody barely fixed the trampoline bathroom floor and wait (inaudible), the roof before they sell their house.

Collier: Yeah!

David: Yeah, I mean, things like that can ‘cause a huge problem, obviously the process, but moving on to stock market, stock market is absolutely killing it right? Twenty six thousand on the Dow, 28 hundred in ACP and a list. I pulled this article today ‘cause I thought there is great stocks in here, very interesting stocks, they think gonna do well and do poorly, but we’re still seeing another 7 percent moved from here to the SNP, to 3.97 over the next 12 months ok? And what I thought was interesting was just some of the, some of the stocks they picked up would do great A-biomed.

Collier: Do you know them?

David: I never heard much about them, it has a 54 percent upside, again this is the next 12 months season, just a collection from L.A’s, I think they pulled some, 12 months price targets, so added them up, for the overall market, whatever, I don’t care about that Cigna, another one with 52 percent.

Collier: Ensure Right or Cigna Health, should be a health conglomerate.
?David: Right, Donning back energy, look this up and when you guys, when you guys get upside a 48 percent, Jeffrey’s financial group 56 percent upside, Nektar Therapeutics.

Collier: Nektar baby, I love the word nectar.

David: Nektar Therapeutics, a 110 percent upside over the next 12 months, so check that out, look at those, here’s something that I thought was very interesting, advanced micro devices, now this is a Chips company.

Collier: And they’ve been around forever.
?David: Yeah, they’ve been around forever and they are also linked to a lot of the smartphones downside 18 percent, coming up, oh here’s another one, their stock has just been all over the place last couple of years are big right now, Chipotle Mexican downside minus 50 percent.

Collier: I still do not see how this chain is making.

David (Inaudible), franchise chain, I mean the stocks are like, like 5 or 600 bucks.

Collier: Burritos! I mean, ridiculous.

David: Franklin resources (inaudible), minus 16 percent.

Collier: Waters.

David: Waters Corporation.

Collier: I bet they sell water.

David: Down 13 percent and SYLink.

Collier: SYLink it’s in tech, but (inaudible).

David: Minus 14 percent.

Collier: Now I would say or, or the chat company, Twilio’s been holding itself, I mean (inaudible), next thing I wanna hear is from you only, only where there (inaudible), 25 dollars and we told you about them, Twilio, they are the only ones gaining their space so.

David: So anyway, guys be careful on the refinance (inaudible), the propaganda, whatever you get, make sure that there’s, there’s financial benefit to that, listen, rates are down, but, but make a good financial decision.?Collier: That’s right; we’ll see you back next Thursday at four o’clock on the Real Estate Happy Hour! Also, don’t forget the podcast, anywhere you can find great.

David: Pod.

Collier: That’s right, Google podcast, Apple podcast, Spotify, Stitcher, we’re there.

David: Thirty eight million downloads.

Collier: And hey! Don’t forget to share the show please, I mean come on, come on, do it for this guy, look at this!

David: Hey, we are a big deal!

Collier: That’s right, share the show, we love you and we’ll see you next Thursday!

David: Have a great week!

Collier: All right, bye-bye!