The Real Estate Happy Hour Show - Episode 59

Watch the Real Estate Happy Hour Show - Episode 59

It’s always an Awesome Time during The Real Estate Happy Hour Happy Hour Show. On today’s show Collier Swecker & David Arnette are talking about 7 Factors to Help You Decide Whether to Rent or Buy a Home , 4 Bank Account Types to Help You Save More Money, The Impact Home Staging has When You Sell 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 is four o’clock on Thursday! It’s time for the Real Estate Happy Hour show!

David: Yeah, we’re just letting you guys fill in your own song for the day.

Collier: The intro music is phenomenal!

David: Yeah, yeah.

Collier: Thanks!

David: So we just, we just skipped that part.

Collier: He looked down and he’s like oh-oh.

David: But hey, we’re closer to on time! Listen, we’ve got, we’ve got a lot of stuff today, we’ve got some, some staging, owning versus rent.

Collier: Yeah, yeah, oh and deciding if you’re the buyer or future renter.

David: And we’re talking about recasting a loan, which has been a big, kind of a big topic lately.

Collier: You know it’s funny, it, it came up all of a sudden and a lot in droves, I mean a lot of people just.

David: Yeah.

Collier: I’ve noticed numerous people asking.

David: A lot of people in comparison with different bank accounts, let me tell you something I learned on, on Tuesday about myself, I learned that I am not a big fan of seeing old blood.

Collier: Oh! What happened?

David: I was at the house and was just breaking down some boxes, had a box cutter.

Collier: It always starts good with the box cutter.

David: Hold it towards me, cut the thumb, oh I cut it good and this section is sponsored by the favorite group.

Collier: Yeah, that’s right, that’s right. What’s up DJ?

David: Line it (inaudible), so I cut it good and I knew it, blood was gushing.

Collier: So this is, this just your thumb but.

David: Oh yeah.

Collier: You need to do it in the right spot.

David: Oh, I knew I got a good too, so I get it there, get it wrapped up and go upstairs and told Courtney you might need to take me to a hospital to get stiches. She said no, no.

Collier: I’m glad to know she was concerned.

David: You’ll be fine, so she puts a pack of gauze and look you’re gonna sit down for this one, a pack of gauze and painter’s tape.

Collier: Hey, she is going old school with you!

David: We’re going painter’s tape, I’m surprised we didn’t have roller duct tape around.

Collier: Courtney was worried about having to pay that part, she have to cope and pay.

David: Yeah, yeah, so we wrapped that up, you know fine, good, no pressure on it (inaudible).

Collier: Yeah, and you think is about to fall off.

David: So whatever yeah, later on that night ready for bed, I’m like we probably should change this you know?

Collier: Call me crazy.

David: Just changed it out, so I pulled it off and look at it and we changed it and I guess it didn’t make me feel so good, so I started to get a little (inaudible) I put, I put my hands down and I’m on the kitchen counter and then I just went out, I fell.

Collier: So hold on you (inaudible).

David: The table, I fell straight down, I hit the counter right between the arms.

Collier: Ha ha!

David: Granite, granite counter top.

Collier: You haven’t done this since college.

David: Yeah, all the way down.

Collier: Ouch, you mean completely, do you remember anything?

David: Oh yeah, I remember most of it.

Collier: You remember the granite.

David: Oh yeah, I remember most of it, then I got up and we went down again, she’s trying to help me, fell down again, finally made it to bed, but man!

Collier: Wait hold on, you finally made it to bed, you’ve been bed.

David: Yeah, I was knocked out.

Collier: And so how is the thumb?

David: It’s good.

Collier: You went from a stack of gauze to that?

David: Yeah ‘cause I didn’t go to the hospital till the morning.

Collier: Oh, you did go.

David: (Inaudible), a little dot in the boxes or something because I needed to go to the dentist shop, and these things could kill you.

Collier: Let’s be honest, odds are that Courtney was worried about the cut pay in the emergency room.

David: I think she just didn’t wanna go.

Collier: Oh let’s see, I don’t know which is worse, right, right.

David: Hey, the cut pay was hefty, so I tell you some.

Collier: That is funny, what’s up Darren James, hey! Good to hear from you or see you!

David: Yes sir, Darren James doing things.

Collier: Yeah, down at Dan Springs Louisiana.

David: Anyway, want to share that, let’s go (inaudible).

Collier: Hey, I tell you, we had, I tell you what David, you and I were talking about sometimes the market gets heated as it is, folks lose their marbles about how to treat each other in a transaction. You don’t mean like they’re so determined, I had a deal this week, go right up until the day of closing a home seller, literally that we had the house on the market they agree to do some repairs to the house, a deck in this case, it was a deck that had to be rebuilt and well because of the rain and everything else, the contract got a little behind and because of it being an appraisal we had to have it finished. Well, the buyer just decided at the last minute ‘cause we can’t close right on the exact day they wanted, to now whether they can or they can’t it’s a different story, like I said we’re back and out of this contract, I mean everything has gone through, right?

David: I’m telling you, this is not a time to do it, I, right now it’s as busy as I’ve seen it in a long time and that means that appraisers are busy, contractors are busy, I mean underwriters are busy.

Collier: And if you start at my, my point to their agent who is a fantastic agent here on town, was, do you want it done right? I mean we could’ve met the deadline and done it correctly right? And all I’m talking about is in the busy time, you know be flexible I mean, we know it’s stressful.

David: Yeah I think overall, I mean everybody’s got to understand, everybody in the business is busy closing attorneys, closures, people working on cities, people working on all these different steps in the process. Everybody is busy, everybody is trying to get it done and so that might require a little patience on your (inaudible).

Collier: Yeah, inconvenient.

David: Yeah, a little patience to let everybody get everything done, you know we’ve been getting loans done all the time.

Collier: Yeah, you have.

David: You know certainly been and there’s been plenty of understanding people and there’s been plenty of wonderful transactions.

Collier: Oh, most of March.

David: So, but I’m just saying you know.

Collier: Yeah, you’ll see.

David: Going into it right now, you should need to be patient.

Collier: How much in this year are you seeing? You know folks that we’re getting right up to closing and they’re getting and you find out that last credit ball, they’ve open rooms to go to a credit line.

David: Oh, it happens sometimes you know I’m not telling, but it does happen from time to time where somebody has done something on their credit that we catch to in the last week of the deal.

Collier: It is so crazy that right? ‘Cause you guys, I know you do a great job but telling them, hey no open credit lines, don’t do anything like that you know, interesting naturalization realtors came out with a survey and an annual profile of home staging and come to find out after they surveyed that not only listing agents but also buyer agents, that up to 10 percent increase sales price just by having the home stage to sell.

David: Up to 10 percent increase yeah, the thing is, it’s a big deal, people you know everybody wants a deal, but everybody knows it’s competitive and I guess people just assume they just walk in and things don’t look nice, the house just doesn’t look nice or well kept, they’re already discounting in their minds what they’re gonna offer.

Collier: Yeah that’s right.

David: And if they walk and they see the house looks good, they’re already thinking man, somebody is gonna get this before me.

Collier: Well you know what’s funny, I was laughing with a home seller that we were talking about his twelve thousand dollars Oriano Road is not staying with the house and you know, I said you might wanna take that up so (inaudible), but that 12,000 dollars rough yes, but they’re not buying that (inaudible).

David: I mean but it’s cool.

Collier: I guess if you’re into it right, but you know the other thing they talked about was that 60 percent, 2 percent of listing agents said that staging decreases the amount of time a home spends in a market.

David: Yeah I mean that’s, that’s easy, this stuff seems obvious but you know a lot of people still miss it. You know if you really wanna make that look as good as possible and as attractive to a buyer as possible, man you gotta (inaudible).

Collier: I think you know, when I too I think the stage time, you know when they’re making that staging it, I’m not really sure I wanna go and take a look at this houses, I think what gives them over that edge really say “you know what I better go see this before it leaves the market”, I think is having a stage and people don’t like a home and dis realizing themselves in that home.

David: Yeah certainly, a stage house you could get more pictures online which gives you, you know more people clicking through and looking at the different rooms and just getting more familiar with the house just before the come, even come in to see it right?

Collier: Oh absolutely, yeah inter trades.

David: So on the tail onto that inter trades have not change this week ironically three point eight two in the third, three point two six on the fifteen, they’re still down, way down and look I read an article at last week from a guy that he’s been in this business for a long time, and he’s kinda been the authority on inter trades, I mean you know he’s been, he’s specialized in this.

Collier: it’s a name of interest.

David: It’s done pretty well predicting the market and he’s saying that we’re gonna see rates lower over the next twenty four months that we’ve ever seen. But ever, ever.

Collier: Ever ever?

David: Ever ever, So.

Collier: Man!

David: That is a great thing to know right now, keep that in mind for this purchase transactions, how you’re setting those up and you know. There’s gonna be some (inaudible), opportunities coming.

Collier: A client asked me the other day ‘cause I was you know, what’s funny you’ve been in this business a long time and I just didn’t realize until you talked to me about it was that the twenty years option right? Cause a lot of folks can handle the fifteen financially but can’t with twenty, what’s the right difference cause we know there’s a half a point difference between the fifteen and the thirty, what is that difference with the twenty?

David: Oh with the 20 there’s a, it just depends on the situation, so the 20’s probably are gonna be so far my average, which is 3.82 on the 30, my 20’s are probably gonna be a little bit less than that, 3.6, 3.7 somewhere in there.

Collier: So, your benefit is that you’re paying more (inaudible).

David: Yeah, but you’re cutting down years going into a 20-year, so is not much an inter trades on that deal it’s more of like how much are we cutting off because a lot of times you can have the same monthly payment because your refinance in front of the 30 down to the 20. Ok so, you just cut off let’s say 6, 7 years, but your payment didn’t change.

Collier: Oh yeah, all right.

David: Ok so, you care what the rate is right.

Collier: Right.

David: So, there is a lot of situations to look our refinance, I know a lot of companies that they look for a client that has a lot of credit card debts, ok?

Collier: (Inaudible).

David: No, no, rolling your credit card debt into that of course, it can make sense because your monthly payment is on that credit card, could be high, your interest could be high, man you just can’t cash out into your house and then go run the credit cards back up you know, you gotta change the way you do things, so there’s a lot of refinance opportunities.

Collier: That’s exactly what they’re gonna do.

David: Yeah, there’s a lot of refinance opportunities you know, you can roll car loans, you can roll interest credit card interest. I mean all of these others debts or higher interest than what you are gonna get in the mortgage.

Collier: Right, right.

David: Ok so, of course a lot of opportunities there, lot of opportunities gonna come in the next 24 months you know, some of the stock is that you know, we talk about the stock market later surprisingly is still up for the 26,000, but also they’re looting to an inverted yield curve.

Collier: Right.

David: Which means the recession. (inaudible).

Collier: Right.

David: And the stocks will be on sale during the recession, so take that for.

Collier: And should be good for the mortgage market, I mean which is exactly what he’s talking about the inverted yield curve.

David: Certainly, now with all this happening the Fed already come out hinting tours, cutting their rates, so let’s see what happens, but a lot of good stuff coming up (inaudible), intergrades.

Collier: (Inaudible), what you’re saying, all right next stop we got 7 factors that matter the folks over at Home light they, they had a blog post we found really interesting and they talked about the 7 factors you gotta consider when you are making that decision should I rent a home or should I buy a home? In other words, you’re moving in, you have any situation really and these are the factors to look at, first is analyze your monthly cost.

David: Yeah, monthly housing cost, I mean lot of times this is what it comes down to, the big thing on the owning, obviously payment and closing cost ok? So, there’s an upfront deal, but when you analyze your monthly housing cost you know is it gonna cost you, you know 1,200 bucks in rent, where you can maybe get a mortgage 9.50 for this same house you know, that’s what we’re talking about analyzing the house monthly cost.

Collier: And the 9.50 though we talked about, he is talking about the mortgage being lower than the rent, but if you have a pay HOA fee, a fire use fee, long maintenance (inaudible).

David: Yeah, maintenance on the house that a landlord at 12A, this example the 1,200, the landlord might be covered some of that stuff.

Collier: Absolutely, so really that’s an obvious one, but next one is the estimate on how long you intend to stay put in the home.

David: Yeah, that’s always important because that gives you a timeline because or a horizon of when you’re gonna be there, if you have these extra costs buying a house you know, how long it’s gonna take to break even on that we’re gonna be there for 2 years, it doesn’t make sense to spend thousands of dollars more.

Collier: Probably not because you’re gonna have to recoup before you start going to positive right? And talk about equity takes time to build right? With this mortgages ‘cause most of them torn out 30-year mortgage.

David: Yes, certainly you’ve got to think about that because the way mortgage is set up, your first payments are going mainly towards interest not the principal, ok that’s a big deal, and then when you sell the house you’re gonna pay real estate commissions. So, if you’re (inaudible), a less than 2 or 3 win, your window though you’ve got this extra costs on the own size, you have to throw all this in and figure it out, just don’t leave these big items out.

Collier: When you and I have a joint client, who’s in the military that’s coming to town we have to have that discussion with them about you know, ‘cause really with this military folks, it’s ok breaking even at the end of this whole deal. By fact all ths costs in having a slight increase in value and all that, but we have to find the right house to give them that because they don’t have the luxury of waiting next couple of years.

David: Yeah, yeah and I’m always a proponent of, in this type of situations renting the house or keeping the house like somebody else, make the mortgage payment you know, like somebody call your maintenance (inaudible), for you and then somebody else would pay the mortgage off so.

Collier: Absolutely.

David: Always, always there is an option there.

Collier: All right next one there, assess your local real estate market conditions, is it a sellers’ market or is it a buyers’ market?

David: Well, I tell you right now, in most real estate markets are gonna be attractive, most of them are, we still, we still probably are in a sellers’ market technically right now.

Collier: Correct.

David: Because of the inventory, so sellers are gonna have a little more control while there’s more buyers out there, but so I think right now obviously a lot of real estate markets are going to be attractive.

Collier: They are and I think we are seeing both hitting here and the problem you’re having is low inventory and when there’s low inventory, when there’s low inventory there’s just not a lot out there, so folks are not allowed out there, so folks gotta make a decision about school these type of things, and what are they gonna do? They won’t be in that area ‘cause one thing’s for certain, let’s say you wanna be in the best Navy Hills school, which is at south up here from Birmingham, they don’t have many apartments right? I mean low cost houses.

David: Yeah, low range.

Collier: Yeah, low range in housing, so you’ll have to make a decision really quick it might help you because of these market conditions. The next one is right up your alley, research mortgage inter trades trans.

David: We just talked about it, the curve, mortgage inter trades trans is down, they’re down now, they’re probably heading further down, so that’s all you need to know about that, obviously a good time to buy and get those low rates, which transfer lower payments on the own sat.

Collier: That’s right, give some equity in that house, evaluate your financial stability you know, sometimes you need to keep building that, that your credit score record.

David: Yeah and maybe save it for down payment or maybe save it for paying off debts, in previous credits scores I was talking about instead, maybe instead of owning maybe you wanna rent and safe retirement, God late, it’s, it’s really, make sure we got our priorities here right?

Collier: You gotta be able just to breathe and live.

David: Yeah, well that’s just what evaluating just your financial steps and stability what’s important and what do you need to do right now.

Collier: Well, absolutely and next one is wait the home maintenance responsibilities, you nailed it.

David: Man, this is crazy because I mean look, we got a lot of loans and every mortgage company is going to, we’re, we’re verifying just enough for them to put down payments, pay closing, closing cost, everything. I mean they just barely get in this house, so what happens in the first week, now we got home warranties, ok so (inaudible).

Collier: Still insurance companies and they might not pay.

David: Let’s say something happens in the week it just closed and obviously there’s not a whole lot of cash left in your bank account, what are you gonna do?

Collier: Be in trouble.

David: So, this is a big one where are the home maintenance responsibilities? Even in big neighborhoods even in, in big, look I’ve seen it in nice neighborhoods, people get in and they can’t afford the maintenance on a 4-500,000 dollars for the house and I mean come on.

Collier: You know I just saw it, you know a massive 6, 7 better a house and almost 8,000 square feet that has 4 air conditioning units, it’s 4 and if 1 of them goes out, what, causes Murphy’s Law and guess what happens another 1 goes out and so, do you have the money to withstand it? We are seeing a lot of folks stretching because this don’t keep up with the jobs you know, whatever the saying is right? I mean we a lot of times in that price point, we do see that where people are just trying or buying way too much house than they need.

David: Yeah, yeah, you gotta be able to maintain the house, there are HOA rules for a loan maintenance and care and things like that, I mean there’s extra expenses, so you need extra money on for that.

Collier: Just like a cruise ship, if we could live on a cruise ship, it would meet your long-term needs, you would need to find a neighborhood that meet your long term needs.

David: Yes, yeah and that depends on were you are in life, kids and things like that, you know obviously it’s maybe a bad example, but you’re not gonna bring kids in to an orderly neighborhood, yeah you want kids in a neighborhood with kids right?

Collier: That makes your life easier right?

David: Yeah exactly.

Collier: And near your family I mean, the good thing with you is you got family in your neighborhood, which is nice ‘cause you all can mingle.

David: Absolutely.

Collier: And kids can play.

David: Absolutely, so you know bottom line is you know when you’re looking rent versus buy, there’s a lot of things to look at, there’s a lot of extra costs and things associated on both sides really.

Collier: Yeah and you said it many times on the show before that you know, if you’re building, you’re trying to build well a stealthy way ‘cause you know you’ve talked about the, it’s not a direct way it’s kinda like for savings.

David: Yeah.

Collier: Yeah, by owning it’s for savings that your money is gonna come back to you, but you be able to pocket that money and use that equity down the road when you need it.

David: Yeah and you can’t spend it right away, you can’t take it to the front door often go and trade it in for cash so.

Collier: (Inaudible).

David: Well, so a couple things we wanted to bring up here, moving on to our next segment is you know recasting, so a lot of people, lot of people right now with the way the market is and the inventory they got a house to sell, ok they might have a little bit good of equity position in that house. They don’t wanna sell that house and then have to choose what’s left on the market at that time, they rather go ahead and look out for the house that they want, find what they want, buy it and buy it for less you know, let’s say they buy it for less, you know 5 percent down because they got a 100,000 in their current house, but they got 5 percent on a bank account that they can put down, so they wanna go ahead and buy that house they’d have to qualify both mortgage payments and then they’re gonna buy a house, move in and then sell the other one and then have an extra 100 grand that they wanna turn around and put on the mortgage.

Collier: They’re not trying to keep it, they want to put it right back into the house.

David: Yeah, they want to put it right back on the house, so in that situation you don’t have to refinance the whole loan, if you refinance the whole loan then you gonna pay the closing costs again.

Collier: Ok.

David: Ok, what we do is we call it as a recast, a lot of people are not familiar with this, but we’ve been doing it forever.

Collier: The recast.

David: Yeah, it’s a recast so you take, let’s say a year goes by, you take a year to sell the house.

Collier: Yeah!

David: So, now you have 29 years left on your mortgage, so we take the same rate to 29 years left and then your 100,000 payments are gonna reduce that balance, we take the new balance and we recast and give you a new payment.

Collier: That’s awesome.

David: So, you’re not paying the high payment still.

Collier: And a lot of folks asked me, how long has this been around?

David: Oh yeah, it has always been there, it’s just, it’s becoming more and more popular, I’ve heard it more this past year that I have in 15 years.

Collier: Did the cost come down over the less?

David: No, I don’t think as many people were in the positon to do it.

Collier: I catch it, well that makes perfect sense.

David: Yeah, because I mean you gotta have a large equity position in the house that you’re selling, so you see it happens a lot, there’re a lot of differences between so ask a lot of questions up front, I’ve got a couple of loans that were holding on at Fairway, we’re gonna retain the servicing ‘cause we can do that because our process for recasting is pretty simple and I can help out, if you run in any snacks, so there’s a lot of differences between company services.

Collier: What’s the cost on some like this?

David: Typically is about a 150, it can be a 150 to 300 bucks, that’s it, one time fee to recast the mortgage.

Collier: Is there any eligibility stuff that people need to be aware of?

David: Yeah, so a lot of times it depends on service, services, servicer, but let’s say I look (inaudible), the differences, someone was after the, I was after the first payment and any time after you make your first payment you can recast, some of them are up to 6 months after transfer the servicing.

Collier: Oh, because they transferred it out.

David: So, let’s say we close the loan and then 2 months later, we sell it to somebody else for sure. When they pick it up they don’t got to wait for 6 months after they pick it up.

Collier: And that make sense when it’s moving like that ‘cause they’re trying to track it, it’s not easy to track.

David: Right, so these are a couple of things, now the minimum amount that you got to put into it and be anywhere from 10,000 to 20,000 a minimum, locks some amounts that you’re paying to the principal balance or 10 percent of the balance sometimes, so those rules are different from servicer to servicer.

Collier: It makes sense ‘cause you (inaudible), thumb is what about 50 dollars per 10 thousand bars I’d be about 50 dollars less in the payment you’re gonna pay right?

David: Yeah, I mean if it is not a really large one, you know if you only put maybe 10, 15,000 dollars down, that makes better sense just to keep paying the same payment, pay the loan off faster.

Collier: Yes, I got you.

David: Sometimes, this can take up 8 to 12 weeks, so does take a little while to do but that’s a good option for you in this situation and if you got a large amount to put down and recast instead of refinancing the whole loan, it would be a lot better.

Collier: How long does it take, how long this process take to recast and when will I see the benefit? (Inaudible).

David: Yeah, it will take, it will take about 8 to 12 weeks once you start.

Collier: Does somebody need to keep paying their payment and?

David: Oh yeah.

Collier: And then let the bank automatically change it?

David: Yeah, yeah absolutely.

Collier: ‘Cause I can see that being an issue, and somebody (inaudible), David said it’s done, well.

David: Well, you can do the same with the PMI as well and you can have with a huge loan some payment early on and.

Collier: It’s like we’re paying off.

David: Yeah, you can get that (inaudible), too, we can get off the purchase price.

Collier: Is that really a good deal though? ‘Cause you may be able to finish it early at some point right? Is that what you’re, oh, you’re saying, you’re going to the equity not pre-paying.

David: No, no, I’m saying once you pay out that balance.

Collier: That makes more sense.

David: You’re less than 70 percent of the purchase price, so then you can get that P&R removed as well.

Collier: Absolutely.

David: So yeah, so keep that in mind, the recast is what that’s called.

Collier: Well you know, of course listen to one of my favorite guys, Clark Howard and one thing Clark was talking about you know, we got to train ourselves to save more money and one way that he and his staff have done this is ‘cause you’ve talked about, and I’ve talked about the ease of these online bank accounts and using them and having four different accounts, I was about to say checking accounts, but you really (inaudible), to check into savings accounts and really not keeping a lot of money there’s a couple of reasons Clark’s real big on not keeping a lot of money in your everyday checking and one of the biggest ones is we have that number out there everywhere and all this (inaudible), from (inaudible), PayPal, all these places and somebody gets access to that account, you do not want them.

David: Yeah.

Collier: And there seems to be more safe cards on their savings accounts (inaudible), ‘cause there’s even a wall on you pulling money out to frequently, so they’re gonna know something’s up, but what he says is to have a traditional checking account save at a large monster mega bank like Regions, Bank of America, what have you, the big (inaudible), and then have it and use it just for your fixed expenses, you know this is stuff like utility bills, your car payment, your insurance, stuff like this that happens every month.

David: You know this were, that accounts where you would use the debit card for CheepFly?

Collier: CheepFly, well not really because that would go to your online checking account and fun that will, would be more for.

David: Expenses.

Collier: Daily expenses because we can control that one separately, because we know that our fixed expenses are gonna be kicking out of this one account and then the online account lot of times are (inaudible), interest, I mean we see some of these guys are in (inaudible), so you use the online checking account, I think you all use what? Ally Bank, Capital One 360 is another good one and there is just, another one Schwab is a good one, but he says to use it for things like the online account, groceries, fuel, clothing, personal care items, I hate that word.

David: Personal Care.

Collier: Yeah, seems like a very female thing, entertainment, eating out and haircuts.

David: Yeah, ok so basic daily expenses out of the online checking account were you might be making some on the, somebody on the interest on the balance right?

Collier: Yeah, yeah.

David: Traditional savings account is your rainy day fund.

Collier: Traditional savings account is you rainy day fund which is far less hey Carol, your rainy day fund keeping a thousand dollars, you know there was a staggering statistic, I forgot it, I saw it a few weeks ago again and staggering how many people can get passed one emergency situation on this country.

David: Oh yeah.

Collier: They, they don’t have a thousand dollars to replace a set of tires in their cars and that’s sad, we got to fix that.

David: Or for a you know, could pay for a busted thumb at the hospital.

Collier: Absolutely, if you’re having problems you go to see Courtney Harvey who fixed it for free.

David: Yeah, with some painter’s tape.

Collier: Yeah all right, the next we’re talking about using is, using the online savings account.

David: For the emergency fund, now going back to the traditional I do like this so the traditional savings account is really a little bit to kinda help the traditional checking account, keep a little light extra money there because each are transferred to 4 between those 2.

Collier: Absolutely so, it’s like you’re using that Region’s Bank or that compass so you’re Bank of America, those type accounts and your terror limbered, Northwest argues saying Dave Ramsay’s baby step program thousand dollars absolutely, I mean, listen you know, I have a little love lost for Dave Ramsay, but love his process, his process is dead on and that’s the one for baby steps.

David: Yeah, I think the big thing with Dave as well he does talk about funds right? I think he is (inaudible), propose with small vacations, big vacations anything like that and you can have separate accounts for all that stuff when you separate money out because look it’s really hard to keep all your money in one place, it’s hard to look at it and say I’m making progress on the (inaudible).

Collier: You’re looking at the forest right? You’re looking at the forest, you’re not seeing, ‘cause obviously you do the same thing we do, which is we do, each vacation has it’s own checking account or savings account and really just starting to say the same interesting that look is cool, ‘cause it’s not just mine for you to bargain 500 dollars (inaudible), but anyway, stocks and personal finances.

David: So, so, I’m surprised that stock markets are over 26,000, we did mention the inverted yield curve, we mentioned you know recession could become in the next 18, 24 months, stocks will be on sale during this time, but 26,000, I think on the Dow is a pre-significant level, I don’t know what, I don’t know what takes it. Now we come out to the trade war, talks a little bit, I mean China is gonna subside maybe to meet at the end of the month, Mexico we took that right out of the table, so that kinda have everybody, that kinda have the market shocked for a little bit, but now we’re back for a little 6,000 and seems like you know what could take us to (inaudible).

Collier: Real earnings too, I get this is what’s so funny, I almost feel like a lot of the media doesn’t understand that some of these companies had real earnings and their job is a, companies that trade on the publics markets and share their profit back with their shareholders.

David: Exactly and so it just, it surprises me that the market is still doing as well as it is, but I don’t know how much higher it can go you know, what’s interesting last week it did bring up beyond me was a plan based burger.

Collier: And opened it about what is IPO at 40 dollars shift.

David: Yeah, 40 something rated all the way until 182 and what I thought was great about this was a short squeeze, which means that there was a large amount of people on the short side and there was other people on the other side, binding it up to run the shorts out.

Collier: So, they were pushing them out to get them out of here.

David: Yeah, yeah and it’s interesting, short squeeze it’s funny if you care to google that, it’s interesting.

Collier: I got a main squeeze not a short (inaudible).

David: How somebody would buy one side to run it up because if you run, if you’re short your bet would get sucked and go down, if I’m sure I bet the stock to go down. If you want to make me hurt in that position you would buy it up.

Collier: So, I want to kick you out on the future (inaudible).

David: You’re driving the price up, so I can’t get out because the price is going up, so interesting.

Collier: And the other thing, I think it’s interesting in this economy is the lack of splitting on the stock prices, it’s almost a cool thing if you’re a company no, but it has a massive stock price right?

David: Oh yeah, yeah, I mean you see it with Amazon, I think it turned 80, 90, 100.

Collier: That’s crazy!

David: I don’t like to look into that, it took way off there I’m sorry.

Collier: Where do we see if somebody is sitting out there going, what do they do, where do they put that money? Do you go to cash and you just wait this out or what? What are in the past being good sectors of stocks?

David: What I think you would wanna do with the recession limits, ok 80, 60 on Amazon, I’ll have to check that, so what I would do you know is, is, you know we’ve talked about this before, what percentage of your portfolio is cash doesn’t make sense to sell now when stocks are gonna be discounted in a recession possibly, probably not because you’re, you’re gonna pay at least 20 percent that gains on that right? So, are the stocks gonna drop by 20 percent or more?

Collier: I’m saying (inaudible).

David: Are stocks gonna drop by 20 percent or more? We don’t know.

Collier: I don’t think so.

David: They can drop 40 percent, but not what you hold, but so if prime makes sense and holds what you got, buy whatever you’re planning on saving for investments, let’s say it’s a thousand dollars a month maybe less of that goes into investments now and more stays in cash.

Collier: So, would you pull that into money markets, stuff like that and just hold it (inaudible), inflation.

David: Yeah, you can put it anywhere to draw a little bit of interest, but overall you just, you just kinda hang it on to cash to when you can buy when things are on sale right now would be a really good time to put together your list of favorites, what are your favorite stocks, your favorite companies ‘cause they’re all gonna be on sale, the lower tide will sink all ships right?

Collier: Yeah.

David: So everything is gonna come down, Amazon is gonna come down, Dollar General is gonna come down, Royal Caribbean’s is gonna come down.

Collier: Oh yeah!

David: You know all of those.

Collier: We don’t prefer the word sink in that sit generation.

David: Right, but now would be, now would be a great time to put together your list of winners, so when they do come down you can (inaudible).

Collier: The beautiful thing is, no matter what app you use to track would it be Yahoo! Which is the only thing I like about Yahoo! What is Yahoo! Finance? Yes CBS market, what you got, your platform of choice TD.

David: American Trade.

Collier: All these have areas on their websites where you can just watch and save you know, save the stock for the future, but anyway we will be back next Thursday at four o’clock! Anyway, don’t forget the podcast, the podcast that is anywhere in here you can find great.

David: Pod.

Collier: Yeah, great pod here in Alabama, anyway that would be Google podcast, Apple podcast, Spotify and Stitcher, all right we will see you next week!

David: That’s it.

Collier: All right, have a great week!

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