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Two real estate agents and a lender talk about real estate in Utah. It‘s a homegrown real estate podcast for buyers, sellers, investors, and agents.
Episodes
Tuesday Nov 16, 2021
Tuesday Nov 16, 2021
This episode is available on YouTube.com: https://youtu.be/4_OyHWqShGI
Do you know how to quickly evaluate a potential investment? CAP Rate helps you understand how much return the potential investment will earn, and give you a hint about whether or not it's a "good" investment.
1:06 - What is CAP Rate? Capitalization Rate is a way to evaluate investments. The higher the CAP rate, the better the investment.
1:45 - You need Net Operating Income (NOI) and Purchase Price to calculate the CAP rate.
2:10 - Net Operating Income (NOI) is calculated by adding up all your revenues and subtracting expenses. For example: revenues of $30,000 / yr - expenses of $10,00 = NOI of $20,000.
3:15 - Divide the NOI by Purchase Price to get the Capitalization Ratio or CAP Rate. For example: NOI $20,000 / $500,000 Purchase Price = 4% CAP Rate.
3:46 - Is 4% good or bad? It depends on your investment objectives. CAP rate is biased toward income properties (as opposed to appreciation properties). Make sure you do you due diligence to figure out more accurate income and expenses. Use the CAP rate as one of your investment evaluation data points — it doesn't tell the whole story.
5:42 - CAP Rate Inversion is taking a known CAP rate and calculating a purchase price for a desired CAP rate. Offering less for the same income will increase the CAP rate. For example: NOI / Desired CAP rate. For example, $20,000 / 5% (instead of 4%), gives us an adjusted purchase price of $400,000. Areas have a normalized CAP rate. If CAP rates in the area are around 4%, for example, and you spot an investment around 3%, offer a 4% CAP Rate.
6:57 - What'd we learn today?
8:32 - Bloopers
* No investors were harmed were harmed in the filming on this real estate discussion.
Please contact us to tell us you love us, you want to hire us! Call or text:
Realtors with Hive Collective at Presidio Real Estate:
Tyler Cazier: 801-210-0230
Aric Wiszt: 801-228-7687
Lender with Elite Team at Security Home Mortgage:
NMLS: 178787
Jason Christiansen: 801-669-7271
NMLS: 240472
A Production with Security Home Mortgage's Jason Christiansen, and Hive Collective at Presidio's Tyler Cazier and "Mr. Suit" Aric Wiszt.
Tuesday Nov 09, 2021
Tuesday Nov 09, 2021
You can watch this episode on YouTube.com: https://youtu.be/yhuUdE7PuVM
Getting ready for winter can feel challenging. Here are some tips to make your life easier when snow is ready to fly!
1:22 - Making your home ready for winter.
1:36 - Removing hoses from hose bibs before frost.
3:39 - Clean your gutters before water freezes.
4:11 - Sealing cracks around doors, windows, etc.
4:49 - Automatic (programmable or learning) thermostats.
5:38 - Turn off your sprinkler water and drain it.
7:13 - Ice melt pellets. Don't use too much - it's bad for your concrete and your grass.
8:03 - Switch the direction of your fans to push air down.
8:56 - Clear your yard of leaves and trimmed branches, etc.
9:37 - Have ice scrapers ready for car windows - or use Tyler's Ziploc life hack.
10:57 - Change the batteries in your smoke detectors, carbon monoxide detectors, and flashlights.
11:42 - What'd we learn today?
13:30 - Bloopers
* No icicles were harmed were harmed in the filming on this real estate discussion.
Please contact us to tell us you love us, you want to hire us! Call or text:
Realtors with Hive Collective at Presidio Real Estate:
Tyler Cazier: 801-210-0230
Aric Wiszt: 801-228-7687
Lender with Elite Team at Security Home Mortgage:
NMLS: 178787
Jason Christiansen: 801-669-7271
NMLS: 240472
A Production with Security Home Mortgage's Jason Christiansen, and Hive Collective at Presidio's Tyler Cazier and "Mr. Suit" Aric Wiszt.
Tuesday Nov 02, 2021
Tuesday Nov 02, 2021
You can watch this episode on YouTube.com: https://youtu.be/X8FxSNhlMiY
Determining your ROI is an important part your investment strategy. It helps you differentiate investment opportunities. It's not hard to calculate, but there are some tricks.
1:00 - Returns on Investment - where do I make the most money. This is how you calculate it.
1:23 - A quick example. Say you purchase for $300,000, then sell for $400,000. You make $100,000 profit, right? But that's not ROI, which is always expressed as a percentage. The formula is Profit divided by Cost. (Profit/Cost) = ROI.
2:44 - In our example the ROI is a 33% if it happens in one year, but what if it takes 7 years? Well, the ROI's not so good. 33% / 7 years = 4.7% ROI year over year.
3:38 - It's not just how much money did you make, it's how much money did you make over time?
4:00 - What's the opportunity cost? Calculating ROI can help you determine where to put your dollars.
4:38 - What'd we learn today?
6:12 - Bloopers
* No rates of return were harmed were harmed in the filming on this real estate discussion.
Please contact us to tell us you love us, you want to hire us! Call or text:
Realtors with Hive Collective at Presidio Real Estate:
Tyler Cazier: 801-210-0230
Aric Wiszt: 801-228-7687
Lender with Elite Team at Security Home Mortgage:
NMLS: 178787
Jason Christiansen: 801-669-7271
NMLS: 240472
A Production with Security Home Mortgage's Jason Christiansen, and Hive Collective at Presidio's Tyler Cazier and "Mr. Suit" Aric Wiszt.
Tuesday Oct 26, 2021
Tuesday Oct 26, 2021
You can watch this episode on Youtube: https://youtu.be/wlaT6KBml5E
Is paying down your mortgage the best way to "get ahead?" Maybe. It depends on what you want to do. There are better ways to leverage your money than converting it to equity in your primary residence.
0:48 - Any extra money I have, I pay down my mortgage. It ads equity, but is it the best? Really, the question about "What's best?" revolves around the goal — what do you want? Equity is a good "safe haven" for money, but leverage could actually bring you ongoing wealth. Are you afraid of leverage?
2:36 - Many times people don't know what the options are, and so they settle on paying down a mortgage. We've got a case right now where the seller is selling for a huge gain and could go a few different ways with the cash. Should she pay capital gains and keep the change? Or should she leverage the cash into investment properties that generate income on 1031 tax-advantaged funds?
4:45 - The thing that's different is that you have one home paid off and cash in the bank. But an investment property has someone paying the mortgage, and now she has exponential growth.
5:18 - Do you buy a house because it's a place to raise a family? Think about it slightly differently: buy an investment that you also have the opportunity to sleep in. Create wealth longevity.
5:48 - Avoid unnecessary debt. This is good advice. What is "unnecessary?" Story about Kmart vs Walmart. When the market went down, because Kmart owned the property, they also went down. Walmart, on the other hand, leases its buildings, and they are much more nimble if a market turns downward.
7:05 - We see the misnomer all the time: "I'm going to pay off my mortgage, and then I'll be free." It can take years, and in the end, you're really not free. So, in the moment, while you're here, leverage it, and make the most of it.
7:51 - Parable from this guy that gave to one 5, to one 3, and to another, 1. It didn't work out so well for the guy that only had one.
8:11 - What'd we learn today?
9:58 - Bloopers.
* No Dollar Bills will harmed in the filming on this real estate discussion.
Please contact us to tell us you love us, you want to hire us! Call or text:
Realtors with Hive Collective at Presidio Real Estate:
Tyler Cazier: 801-210-0230
Aric Wiszt: 801-228-7687
Lender with Elite Team at Security Home Mortgage:
NMLS: 178787
Jason Christiansen: 801-669-7271
NMLS: 240472
A Production with Security Home Mortgage's Jason Christiansen, and Hive Collective at Presidio's Tyler Cazier and "Mr. Suit" Aric Wiszt.
Tuesday Oct 19, 2021
Tuesday Oct 19, 2021
How do you know you have a complete and binding contract? What's a dual contract and an incomplete contract? How do you avoid them?
0:54 - Story time with Jason. FHA amendatory language addendum that a builder doesn't want to sign until near closing (because it gives the buyer a veritable "get-my-earnest-money-back-for-free" exemption). See our episode on "Addenda" for more info: https://youtu.be/ZoVXSjSk_qg?t=150. Do you have complete contract if everything EXCEPT the FHA addendum is signed?
1:41 - It depends on whether there's a signed addendum stating that the FHA addendum will be signed.
1:59 - "Complete Contract" is what you're after. Texts and emails do NOT constitute a contract.
2:28 - If it's in writing, it's enforceable in court, but do you want to go to court with a complete contract, or with a contract, 4 emails and 15 texts? As always, no one cares about the contract UNTIL there's a disagreement, then it really matters what the contract is and what it says.
3:15 - What's the worse thing that can happen? A Dual Contract. That means you have two contracts on the same item for different prices...also known as "fraud."
4:20 - The most-common dual contract is when you present one contract to the lender, and another for what's really going on. That's known as the f-word in real estate...fraud.
5:08 - Complete contract allows for other self-contained contracts, like a bill of sale or repair agreement.
5:38 - What did we learn today?
7:14 - Bloopers.
*No complete contracts were harmed in the filming of this real estate discussion.
Please contact us to tell us you love us, you want to hire us! Call or text:
Realtors with Hive Collective at Presidio Real Estate:
Tyler Cazier: 801-210-0230
Aric Wiszt: 801-228-7687
Lender with Elite Team at Security Home Mortgage:
NMLS: 178787
Jason Christiansen: 801-669-7271
NMLS: 240472
A Production with Security Home Mortgage's Jason Christiansen, and Hive Collective at Presidio's Tyler Cazier and "Mr. Suit" Aric Wiszt.
Tuesday Oct 12, 2021
Tuesday Oct 12, 2021
You can watch this episode on Youtube: https://youtu.be/5i1h56aJPlY
How much heat can you really take? Today, we find out how much Aric, Tyler, Jason, and Joel can go through. Who will crack first?
1:09 - Rules. 1) As much (or as little) sauce as you want. 2) Drink whenever you want. 3) If you wuss out..."I lost" written on your forehead. 4) Profanity may happen.
2:46 - The first sauce: Hot Ones The Classic Hot Sauce: 1,800 Scoville. "What would your family and friends think you had done if you were arrested?"
3:31 - The second wing: Hot N Saucy Garlic N Pepperoncini Hot Sauce, 3,900 Scoville. "If there were only one event you could go to every year, what would it be?"
4:29 - Wing three: Mark's Barbados Style Hot Sauce, 15,500 Scoville. "What's the hardest thing about COVID?"
5:06 - Sauce four: Hellfire Devil's Blend Hot Sauce, 42,000 Scoville. "What's your proudest moment as a kid, 0-18 years old?"
7:06 - Wing and sauce number five: Hot Ones Los Calientes Rojo Hot Sauce, 49,000 Scoville. "If you could make one thing illegal, what would it be?"
7:48 - Wing number six: High River Sauces Tears of the Sun Private Reserve Hot Sauce, 69,000 Scoville. "What area of real estate needs more transparency?"
10:33 - Wing number seven, and sauce number seven: Torchbearer Sauces Honey Badger Hot Sauce, 99,000 Scoville. "Who is the funniest person in your family, and why?"
13:10 - Wing eight: Da' Bomb Beyond Insanity Hot Sauce, 135,600 Scoville. "If you could learn any one skill, what would it be?"
14:48 - Nine. Hot Ones Eye of the Scorpion Hot Sauce, 676,000 Scoville. "How do you express yourself creatively?"
17:15 - Round ten, the final wing. Hot Ones The Last Dab Apollo Hot Sauce, 2,000,000+ Scoville. "What do you secretly hoard?"
18:59 - We're "cognitively not there." Lots of crying, and sniffling. "I will cry with you."
19:57 - What'd we learn today?
*Many (perhaps most) taste buds were murdered in the filming of this real estate discussion.
Please contact us to tell us you love us, you want to hire us! Call or text:
Joel Frost is an Appraiser with
ExcelAppraise
Reach him on Twitter @JustAskJoel
https://twitter.com/justaskjoel
Realtors with Hive Collective at Presidio Real Estate:
Tyler Cazier: 801-210-0230
Aric Wiszt: 801-228-7687
Lender with Elite Team at Security Home Mortgage:
NMLS: 178787
Jason Christiansen: 801-669-7271
NMLS: 240472
A Production with Security Home Mortgage's Jason Christiansen, and Hive Collective at Presidio's Tyler Cazier and "Mr. Suit" Aric Wiszt.
Tuesday Oct 05, 2021
Tuesday Oct 05, 2021
You can watch this episode on YouTube: https://youtu.be/JdJioaHU2bE
It seems self evident: if someone is transacting in real estate, they have the authority to do so right? Well, that's what section 13 of the Utah Real Estate Purchase Contract affirms. But there are other times when it may not be so simple: what if there's a trust? What if someone dies? What if there's a company that owns the real estate?
1:05 - Give us a question in the comments!
1:29 - Story time with Jason about Section 13. Parents trying to sell a property property owned by LLC. Trying to figure out who could sign, and it turns out the son is the owner of the LLC...and it was being used in a Ponzi scheme. Feds ended up seizing the company, but this highlights an important challenge: who can sign on a property?
2:50 - How do you protect against authorization issues? Provide the trust documents, or the articles of incorporation. There must be proof that you have authority to sign on the property. There are a lot of entities that can own a home: trust, corporation, LLC, etc. Listing agent should verify who says they can sell the property CAN actually sell the property.
4:00 - You don't need to use an agent or a title company, but this is a good situation where you're really going to want one. It's for when something goes bad.
5:00 - We often see a trust selling a property. Another situation that happens more than expected is when someone dies and now the heirs are trying to sell the house...but can't because they're not authorized.
6:19 - You go to the doc for well visits. You should do the same thing with real estate professionals — like your agent, your lender, etc.
7:10 - What'd we learn today?
8:45 - Bloopers
*No trusts, corporations, or LLCs were harmed in the filming of this real estate discussion.
Please contact us to tell us you love us, you want to hire us! Call or text:
Realtors with Hive Collective at Presidio Real Estate:
Tyler Cazier: 801-210-0230
Aric Wiszt: 801-228-7687
Lender with Elite Team at Security Home Mortgage:
NMLS: 178787
Jason Christiansen: 801-669-7271
NMLS: 240472
A Production with Security Home Mortgage's Jason Christiansen, and Hive Collective at Presidio's Tyler Cazier and "Mr. Suit" Aric Wiszt.
Tuesday Sep 28, 2021
Tuesday Sep 28, 2021
You can watch this episode on Youtube: https://youtu.be/JWeNTVSxg54.
How do you get paid? Salary, hourly, commission? Does it matter for a real estate purchase? YES!
1:19 - A story from Aric about a buyer who wanted to change jobs mid transactions. The lender needs to know security — keep the unknowns to a minimum to keep your transaction alive.
3:32 - How's the lender see it? A lender is a professional risk manager. They want to make sure a buyer is going to repay. They do that by verifying income. What you want is a "Non-Contingent Contract" for employment from the employer. It will work just fine because the lender is basing the lending decision on a binding contract. But no contingencies (drug test, certifications, etc) is hard to come by — employers don't want to offer it.
5:39 - What if you go from salary pay to hourly pay? Variable pay creates challenges for the lender because it's MUCH harder to verify variable pay. That's why you may need 2 years of pay stubs to verify what you're likely to be paid in the future. Seasonal work (like construction) fluctuates, and it's tough to verify.
7:55 - If you're looking at buying a home and you're thinking about switching jobs, TALK TO YOUR LENDER AND YOUR AGENT.
8:27 - Jason shares a story about mortgage fraud...it's just up to 30 years in prison and a $1 million fine.
9:32 - You can still change your job, but be smart about it and have a plan! If it's gonna be two years of pay stubs to get a house, talk to an agent. Let's talk about alternative structures for purchase. We all want you to get a home.
11:09 - Let's talk about each of the pay methods: salary, hourly, commission, etc. Salary is predictable and low volatility. Bonuses may require additional verification.
12:10 - Hourly pay convolutes things a little...because you might be "variable" not just "hourly." You know you're "variable" if you don't work the exact same number of hours from week to week.
12:59 - Commission stretches things out...a lot. Commission, bonuses, variable, piece rate, etc — they all require additional verification because they're less reliable incomes than straight salary. Your lender is likely to ask you for 2 years of history. Lenders don't look at just the last 6 months, they're looking at the next 30 years!
14:30 - Rules that surfaced in 2008 are designed to help all buyers accurately represent their income posture and avoid the kinds of situations that brought down the economy. COVID tightened things more as well.
15:20 - Self employed can actually be easier than other forms of income — taxes are really easy to account for. Show history.
17:15 - Fixed income changes the game as well, but it doesn't mean you can't buy a house. Get the "awards" letter from Social Security or the Pension. Just prove that it's going to continue.
18:45 - Plan ahead. If you've got a special situation, talk to a lender. They'll help you.
19:40 - Making non fraudulent statements during signing.
20:20 - What'd we learn today?
22:06 - Bloopers
23:13 - I want you to watch me. I need you to watch me!
*No paychecks were harmed in the filming of this real estate discussion.
Please contact us to tell us you love us, you want to hire us! Call or text:
Realtors with Hive Collective at Presidio Real Estate:
Tyler Cazier: 801-210-0230
Aric Wiszt: 801-228-7687
Lender with Elite Team at Security Home Mortgage:
NMLS: 178787
Jason Christiansen: 801-669-7271
NMLS: 240472
A Production with Security Home Mortgage's Jason Christiansen, and Hive Collective at Presidio's Tyler Cazier and "Mr. Suit" Aric Wiszt.
Tuesday Sep 21, 2021
Tuesday Sep 21, 2021
You can watch this episode on Youtube: https://youtu.be/6apqTdfVK-E
How do you get started in real estate investing? Especially in Utah, there are some things you need to know to make sure you don't get burned.
1:22 - Hey, I want to go do this (investing), no what? Now they have cash to start, but they're getting ahead of themselves. Investing is starting a business. It's not just a deal.
2:10 - Jason's first deal. He started with $200,000 cash on hand. He paid off his house, then got a HELOC (Home Equity Line of Credit). This may not be an ideal strategy today. Told agents, let me know when you have a good deal. "Good deal" usually means "distressed" — there's a timeline, a need, etc that's driving this transaction. He also had a pre-vetted tenant lined up to rent.
5:10 - That's a viable way to get a house. But there was relatively little research. He had some good luck. Are you willing to risk luck on such a high-dollar purchase?
5:55 - We're in the industry, and we learn new things all the time.
6:20 - Cash on hand could be a HELOC, inheritance, saving like mad, etc; but your going to need some cash on hand. You can also make your current home that you own your first investment property by NOT selling it when you move out — this requires MUCH less capital to get you started. Putting 5% down is way better than putting 20% down because you have more cash to purchase other properties.
7:55 - Tease 4 Pillars of Investment. We love 4 Pillars, and we'll talk about it to no end.
8:25 - Have a strategy. Here is a list of ideas.
9:09 - Are you looking for Cashflow or Appreciation? In Utah, in general, we are an investment-appreciation state. But that doesn't mean they're bad investments. You can leverage those properties in the future. You're going to be hooked on investing once you purchase your first one. From there, you'll need more cash to buy your next one. There are ways to do that that we'll talk about in future episodes.
10:25 - Tyler's first deal. Used a HELOC to purchase. Purchased for "organic appreciation", but also made updates the property to create "forced appreciation".
11:51 - Come to lunch with us to discuss your investment strategy! 🍔 Where's the wow? Have a plan, and you'll find it.
12:15 - Aric's first investment. Took a 401k draw to fund it. He had a plan, laid out the numbers. Be intentional about the purchase. Don't kill your investment by overreaching.
13:59 - You're going to be amazing at some stuff, but DO NOT try to do everything. Farm out things you don't want to do.
14:31 - You're either Time, Money, or Skills. You may have 1 or 2 of these things, you'll never have all three. Partner up to bring in what you don't have.
15:39 - What'd we learn today?
17:15 - Bloopers.
*No investment plans were harmed in the filming of this real estate discussion.
Please contact us to tell us you love us, you want to hire us! Call or text:
Realtors with Hive Collective at Presidio Real Estate:
Tyler Cazier: 801-210-0230
Aric Wiszt: 801-228-7687
Lender with Elite Team at Security Home Mortgage:
NMLS: 178787
Jason Christiansen: 801-669-7271
NMLS: 240472
A Production with Security Home Mortgage's Jason Christiansen, and Hive Collective at Presidio's Tyler Cazier and "Mr. Suit" Aric Wiszt.
Tuesday Sep 14, 2021
Tuesday Sep 14, 2021
You can watch this episode on Youtube.com: https://youtu.be/vUKESItdiR0
What improvements actually ADD value to your home? We talk with Joel Frost, expert Utah appraiser, about what improvements add value or reduce value.
0:59 - Joel's credibility - He seen 16,000 homes. Today we're talking about improvements, and what you get out of them.
1:49 - Specialty kitchen with $50,000 Hibachi grill upgrades. How much value did it add in an appraisal? None. It actually REDUCED value! A typical homeowner won't use it - it's not an upgrade for the average buyer. The underwriter is going to want a comp showing value.
4:25 - Which improvements give you the most bang for the buck? Fannie Mae and Freddie Mac track kitchens and bathrooms. Kitchens and bathrooms get you money back the easiest.
5:19 - What about quality of improvements? Granite counter tops vs Formica, for example. Q1 - Q6, highest quality is Q1. There are a lot of Q3 and Q4. Condition is ranked the same way (C1 - C6). You can have a high quality finish Q1 at C6 condition.
6:31 - So, should I clean my house for the appraiser? Appraisers should be able to "see through" the clutter, but it can't hurt.
7:22 - If you're planning a remodel, talk to an appraiser or experienced agent. Overbuilding is a serious issue that kills improvement value. It can leave you without comps. Is it amazing? Yes. Will it recover value? Unlikely.
8:40 - What's a Q1? A Mansion, Parade of Homes house. Built to the nines. Comps will include only high-end (Q1) homes.
10:30 - Appraisers are limited to a very transient inventory.
10:59 - What are appraisers doing to account for this "Seller's Market?" Appraisers should be making "market time adjustments". How do you know you have a good appraiser? Look at their market time adjustments. You CAN contest an appraiser's opinion of value. Appraisers pull data from the MLS, just like agents. A good agent can give you statistics and information. Reatlors are NOT appraisers, but they can do some good work based on information. Make sure your lender has a good pool of appraisers.
17:30 - What did we learn today?
19:27 - Bloopers
*No hibachi grills were harmed in the filming of this real estate discussion.
Please contact us to tell us you love us, you want to hire us! Call or text:
Joel Frost is an Appraiser with
ExcelAppraise
Reach him on Twitter @JustAskJoel
https://twitter.com/justaskjoel
Realtors with Hive Collective at Presidio Real Estate:
Tyler Cazier: 801-210-0230
Aric Wiszt: 801-228-7687
Lender with Elite Team at Security Home Mortgage:
NMLS: 178787
Jason Christiansen: 801-669-7271
NMLS: 240472
A Production with Security Home Mortgage's Jason Christiansen, and Hive Collective at Presidio's Tyler Cazier and "Mr. Suit" Aric Wiszt.
Tuesday Sep 07, 2021
Tuesday Sep 07, 2021
You can watch this episode on YouTube.com: https://youtu.be/BqTCvNIqdMo
View a house on Tuesday, offer on Friday, it's accepted on Monday — Fridge is included, but they replace the fridge with a cheap one on Saturday. Which fridge is included? The Utah state REPC stipulates which fridge you get!
0:49 - Announcement! We're doing the HOT WINGS challenge, where we eat progressively hotter wings while we talk real estate. Stay tuned for date and episode!
1:37 - Aric's story: buyers went walk through a house on a Tuesday, they thought about it for a few days, wrote an offer on Friday, Monday the offer is accepted. When as that contract BINDING?
2:52 - Contract is binding at acceptance, which is important if something changes between when the buyers walked through and the time an offer is accepted. Are the sellers wrong? Are they misleading? Legally no, ethically...maybe. The contract is binding from the time of acceptance until the time of settlement (not before acceptance).
5:05 - Aric's section 11 story: buyers get property under contract with a fast close in a couple weeks. They walk through the home the night before settlement and find the "nice" fridge is missing. There's a hole in the wall that wasn't visible until the sellers moved furniture. The expensive window coverings were missing. That's what the due diligence period is for!
7:43 - The buyers lost the nice fridge, per the terms of the contract. You can be completely legal, but be unethical. What do you think on the hole in the wall? The buyers that lost the curtains received over $2,000.
10:01 - AVOID CONFUSION, BE SPECIFIC. We don't want the sellers offended, and we don't want the buyers confused about what's included.
11:09 - When do you do the final walkthrough? You have 7 days before closing. Have communication with the sellers. Make sure the sellers haven't changed anything. Don't kick out the long term renters. Short-term renters can be accepted during the contract, until the due diligence deadline.
13:11 - What'd we learn today?
14:59 - Bloopers
*No fridges were harmed in the filming of this real estate discussion.
Please contact us to tell us you love us, you want to hire us! Call or text:
Realtors with Hive Collective at Presidio Real Estate:
Tyler Cazier: 801-210-0230
Aric Wiszt: 801-228-7687
Lender with Elite Team at Security Home Mortgage:
NMLS: 178787
Jason Christiansen: 801-669-7271
NMLS: 240472
A Production with Security Home Mortgage's Jason Christiansen, and Hive Collective at Presidio's Tyler Cazier and "Mr. Suit" Aric Wiszt.
Tuesday Aug 31, 2021
Tuesday Aug 31, 2021
You can watch this episode on YouTube.com: https://youtu.be/jblruMRggiE
How does an appraisal work? What gets counted, and what doesn't? If you've ever wondered about how this mystical voodoo math gets done, Joel Frost is here to help you understand!
1:20 - Joel, tell us about yourself. Appraising since 2006, and has completed 16,000 appraiser files. The appraisal is one of the most-stressful parts of a purchase or refinance — mostly because not very many people understand what an appraisal is and what it's for.
2:40 - What do appraisers look at? What's a comp? Appraisers assume your house is working just fine (they're not inspectors!). How is the market reacting to homes for sale with your characteristics?
Appraisers keep their finger on the pulse of what people are paying for different features.
3:50 - The appraiser's job is to establish how much money could the home be foreclosed for to get the lender's money back.
4:13 - What are the key features appraiser look at? Solar panels, for example. No money for leasing solar panels. No money for a loan on solar panels. If you use a HELOC, they're paid off, and they DO add value. Appraisers need information about the system for context. Appraiser also needs a comp.
7:00 - Can a real estate agent influence an appraiser's evaluation? Giving information is not against the rules, but pressuring for value is a big no-no.
8:03 - Mother in Law apartments (MIL) vs Accessory Dwelling Unit (ADU) vs Duplex. MIL is contiguous — there's no separation between the living spaces. An ADU almost always has a separation — you have to go outside in order to go into the other unit. A duplex is like an ADU, but it was zoned for duplex. It will often come down to how it was zoned...not if there are separate utility meters.
10:33 - What makes a house a "comp" (or not a comp)? Pick the most similar properties that have sold recently, but appraisers will depart from style in order to get comps that represent all the aspects of the property. The lender requires a minimum of 3 comps because they want to ensure you're not basing value entirely on one property.
13:41 - What is bracketing? Selecting comps that spread the gamut of features in the home. This means an appraiser may include a low-weight "weird" comp that doesn't look like it belongs. It's so they can show bracketing. Discussion of 2-car and 3-car garages.
15:40 - Geographic bracketing makes sure you don't have a "mini market". Use some comps from within the development and some outside of it. One of Joel's investment secrets.
16:51 - What about basements? Why isn't my basement being considered? They are, but appraisers always distinguish between "above grade" and "below grade". If any portion of a lower level is below ground level, that entire floor is considered to be "below grade" or basement. They are valued separated, because above grade square footage is considered more valuable. Discussion of a "mullet house".
20:23 - What'd we learn today?
22:22 - Bloopers.
*No mother-in-law apartments were harmed in the filming of this real estate discussion.
Please contact us to tell us you love us, you want to hire us! Call or text:
Joel Frost is an Appraiser with
ExcelAppraise
Reach him on Twitter @JustAskJoel
https://twitter.com/justaskjoel
Realtors with Hive Collective at Presidio Real Estate:
Tyler Cazier: 801-210-0230
Aric Wiszt: 801-228-7687
Lender with Elite Team at Security Home Mortgage:
NMLS: 178787
Jason Christiansen: 801-669-7271
NMLS: 240472
A Production with Security Home Mortgage's Jason Christiansen, and Hive Collective at Presidio's Tyler Cazier and "Mr. Suit" Aric Wiszt.
Tuesday Aug 24, 2021
Tuesday Aug 24, 2021
Watch on Youtube.com: https://youtu.be/tGqQdajB3q4
This is how we see the market from here and beyond.
1:15 - The bubble's bursting! Are we in a bubble? Is it 2008 all over again? "Underwater" means your home is worth more than you owe. People believe they see a similar trend to 2008, so we must be in a bubble.
3:45 - Personal story of a friend who didn't buy, and wished they did. Values outpaced their ability to save.
5:22 - There are solid economics driving the Utah market. Utah jobs are up in a big way.
6:07 - Supply and demand. There aren't enough homes for the people who want to buy them. Inventory graph. Almost the entire home inventory was sold in Q3 of 2020. What do you pay for a hamburger in Disneyland? That's how home prices work as well! The median price is now at $440,000!
7:49 - Joel, why are townhomes the perfect economic barometer? They are all comparable — they have all the same characteristics. You can use them to identify trends.
9:45 - Housing starts. These are permits to put a house on a lot. 2007: 2.3 million housing starts, 2009, 550,000 housing starts. We were "underbuilding" by over a million homes per year. That lack of inventory kept building up until 2020.
12:30 - What happened to construction workers? People shifted away from the construction industry, creating a shortage of trades workers. Everyone who owned a home for the last few years is an investor now - they all have at least $250,000!
14:20 - Buying power is heavily influenced by interest rates. 3% interest rate vs a 4% interest rate. It leads to a $60,000 of purchasing power! Affordability isn't getting better. Five years ago, 70% of renters could afford to purchase a home, in 2021, that number is down to 20%.
18:35 - Tech is exploding in Utah. People are coming to Utah in droves, which mean the demand for housing is increasing. This is a great place to invest for appreciation. Idaho was the only state that out-appreciated Utah.
20:17 - When should I buy? You cannot time the market, quit trying!
21:07 - Rates are likely to increase, what do I do? Own something that's not money. Own something that's worth money.
22:20 - But the market is softening (a little), especially since late June. A lot more price drops on homes, but doesn't mean we're crashing! The market is correcting. Buyer fatigue, increase of inventory, the get-into-school push — these are all factors of a softening seller's market. You see it in selling price to original list price (over 100% is a seller's market), and you can see it in the days on market statistics. It was 22 in 2019, and it was 6 in July...but that number is increasing.
27:45 - Commercial activity is still in the works. They're less concerned about trends.
29:41 - What'd we learn today?
32:10 - Bloopers
*No economics were harmed in the filming of this real estate discussion.
Please contact us to tell us you love us, you want to hire us! Call or text:
Joel Frost is an Appraiser with
ExcelAppraise
Reach him on Twitter @JustAskJoel
https://twitter.com/justaskjoel
Realtors with Hive Collective at Presidio Real Estate:
Tyler Cazier: 801-210-0230
Aric Wiszt: 801-228-7687
Lender with Elite Team at Security Home Mortgage:
NMLS: 178787
Jason Christiansen: 801-669-7271
NMLS: 240472
A Production with Security Home Mortgage's Jason Christiansen, and Hive Collective at Presidio's Tyler Cazier and "Mr. Suit" Aric Wiszt.
Tuesday Aug 17, 2021
Tuesday Aug 17, 2021
You can watch this podcast on Youtube.com: https://youtu.be/f5MHE_mWbS0
Every house has something that is less than ideal, and these surface during home transactions. As a buyer, how do you ask for repairs in a way that won't scuttle your deal? For sellers, how do you work with buyers to ensure any repairs are acceptable?
0:42 - Introduction. We're talking about repairs!
1:04 - How do inspectors make money? They go through a home and categorize issues into 3 categories: red, yellow, and green. Red NEEDS to be fixed. Yellow SHOULD be fixed. Green is information only. The buyers get that list, and most freak out. Knowing what's coming helps buyers deal with a list of "imperfections" on a house — even brand new homes!
3:06 - Examples of some items you might get...on an addendum. Oh man! Listing repairs (in non contract language can totally kill your deal!) Requested repairs need to be specific and clear; and written in contract language. Start verbally or in email. Once you've agreed upon repairs, use contract language to describe explicitly what will be done. Make sure it could stand up in front of a judge!
5:38 - Repair requests happen in a two-part process: 1) the request, and 2) the confirmation. "Repairs have been made to buyer's satisfaction," doesn't contractually resolve the repairs. The underwriter doesn't care if the buyer is satisfied — the underwriter cares that a home is "safe and sound" and could be collateralized should the buyer fail to repay. If a repair appertains to "safety" or "soundness" the underwriter will NOT allow a transaction to proceed until they see that issue is resolved (in an addendum).
7:17 - What'd we learn today?
7:47 - Aric's naked out. Write your addenda right so you can have luxurious soft water as well!
9:12 - Bloopers.
*No repairs were harmed in the filming of this real estate discussion.
Please contact us to tell us you love us, you want to hire us! Call or text:
Realtors with Hive Collective at Presidio Real Estate:
Tyler Cazier: 801-210-0230
Aric Wiszt: 801-228-7687
Lender with Elite Team at Security Home Mortgage:
NMLS: 178787
Jason Christiansen: 801-669-7271
NMLS: 240472
A Production with Security Home Mortgage's Jason Christiansen, and Hive Collective at Presidio's Tyler Cazier and "Mr. Suit" Aric Wiszt.
Tuesday Aug 10, 2021
Tuesday Aug 10, 2021
Watch the show on Youtube.com: https://youtu.be/ZoVXSjSk_qg
Is it addendum or addenda? More importantly, how do you use one to modify the contract without breaking it?
0:41 - What's the difference between "addendum" and "addenda"? An addendum is a modification of the contract.
1:25 - What if you like some, but not all, terms of an addendum? All addenda and included terms are now part of the body of the contract. Any unaddressed terms remain part of the contract. You only modify as necessary. Let's talk about the FHA addendum specifically.
2:50 - Know what you're signing! Read every item ("term") of an addendum. "There are ways that work, and then ways to do it right." — Jason Christiansen
3:55 - You can include multiple terms on a single addendum. You don't need a new addendum for each change.
5:05 - Sharp agents can (and SHOULD!) take advantage of any loop hole the other side leaves open. If it goes to court, the judge is going to weigh your contract by the words you managed to get signed, not by what you *meant*. Any contract language that ends up in front of a judge has to stand on its own.
6:09 - Tyler's personal soap box: if you're going to put something in an addendum, number it! It makes everything easier to deal with.
6:19 - Good real estate agents don't just open doors, they protect you and your contract interests.
6:40 - Don't send an addendum for everything. Go back and forth on the phone or in emails until you work out the real agreed upon language, then document it using an addendum. The State of Utah provides tons of forms and agreements. Some are part of the official contract, others are part of the overall intent of the transaction. ONLY addenda require an addendum number and to be added to the contract. If it's NOT contractual, don't throw an addendum number on there. Underwriting will hate you.
8:26 - If you don't know what you're doing, you might lose the house, the deal, or money.
9:15 - Real estate agents are not attorneys. We CAN'T write contracts — we can only use the State forms.
9:50 - Facebook doesn't represent you. The broker does. It could cost tens of thousands of dollars!
10:44 - What'd we learn?
12:20 - Bloopers
*No contracts were harmed in the filming of this real estate discussion.
Please contact us to tell us you love us, you want to hire us! Call or text:
Realtors with Hive Collective at Presidio Real Estate:
Tyler Cazier: 801-210-0230
Aric Wiszt: 801-228-7687
Lender with Elite Team at Security Home Mortgage:
NMLS: 178787
Jason Christiansen: 801-669-7271
NMLS: 240472
A Production with Security Home Mortgage's Jason Christiansen, and Hive Collective at Presidio's Tyler Cazier and "Mr. Suit" Aric Wiszt.