MLO | Mortgage & Real Estate Guide

LIVE Studio Recording | COVID 19 | #1 You Tube Agents | Real Agent Now Group Jesse Dau & Jackson Wilkey

April 06, 2020 Addy Nett Season 1 Episode 2
MLO | Mortgage & Real Estate Guide
LIVE Studio Recording | COVID 19 | #1 You Tube Agents | Real Agent Now Group Jesse Dau & Jackson Wilkey
Chapters
MLO | Mortgage & Real Estate Guide
LIVE Studio Recording | COVID 19 | #1 You Tube Agents | Real Agent Now Group Jesse Dau & Jackson Wilkey
Apr 06, 2020 Season 1 Episode 2
Addy Nett

COVID 19 will change the way all industry will conduct business moving forward. Live Studio Recording as COVID 19 Pandemic approached the Pacific Northwest. Predictions, insights, 2008 all over again? These #1 You Tube Agents break down their outlook on the industry and what direction Real Estate will head during these uncharted waters. 

Show Notes Transcript

COVID 19 will change the way all industry will conduct business moving forward. Live Studio Recording as COVID 19 Pandemic approached the Pacific Northwest. Predictions, insights, 2008 all over again? These #1 You Tube Agents break down their outlook on the industry and what direction Real Estate will head during these uncharted waters. 

Jackson Wilkey:   0:00
Cove. It Bank team. It's changed

Addy Nett:   0:03
our industry forever. How are we adapting? What will happen

Jackson Wilkey:   0:07
next? Is this 2000? All of my boys Jesse, raid out Jackson, right? Wilkie, give us some keen insight here from a live studio recording. They are the real agent now. Group hitting heavy own channels like YouTube, Facebook. Anything else? You could almost search real estate with an important, great, great great insight. My name is Addie Net, and this is M. L O Live. Live here in Portland, Oregon. We're talking about Spode, ease and all sorts of good things. Way our live. We are the real agent now, Groom. My name is Jackson Wilkie. Jesse, Now adding, adding net, Um, we are your eyes, ears, everything. This is a live Q and A. So when you join us, make sure you ask us any questions that you have about Portland about Corona virus about interest rates, about literally any neighborhood, whatever you want to know about the Portland Metro, and if you are want to know you're not one of our subscribers, make sure you tap that subscribe button and click the little bell. She notified Every time we do a new video and when we go live. So we talked about this little bit, guys. Just kind of like keeping everybody up to date on what's going on in the Portland Metro with, you know, the Corona virus. We're not shut down yet. We don't know if we will be or not, but right now, housing market is not shut down. Um, the only thing really shut down, like in my world is schools of stuff. But Jesse will start with you with the housing market. What do you been seeing out there?

Jesse Dau:   1:45
Yeah, the housing market. Ah, it's still really strong. And, ah, still getting multiple offers. You know, we've had some Ah, you know, buyers that were in contract pre Corona have, ah eternity contract just because they're unsure, like their jobs. And, you know, it's threw out of this situation. I watched I had a market watch on the ah, back on the market houses this week and day was the first time I ever saw, like a massive influx in houses come back on the market. So that means that they were under contract. The buyer terminated for some reason or another. And now the house is back on the market. So last weekend it was absolutely bonkers with, like, open houses and showings and, you know, the ah that are molest. Reports of lockbox triggers air still showing growth. This will be the true indicator weekend after we've been in this now for a solid week of like, you know, people talking about quarantines, shortage of foods, you know, California's on lock down now or they're grounded. Um, so, yeah, we'll see what happens this weekend. You know, interest rates this week or up and down. Kind of crazy. Like so, Yeah, that's kind of weird, right?

Jackson Wilkey:   2:55
Let's, um and that's kind of I think what everybody's wondering about is this stock market. You know what's going on with the stock market? With the interest rates we've seen, you've seen literally some of the most record jumps. Let's touch on some of these jumps and what it means.

Addy Nett:   3:11
Yeah, man, you guys know we all work together here. It's been a grand in couple of weeks, a lot of ups and downs and very uncharted waters. So yesterday they're saying out there one of the mortgage groups that I'm a part of online, that unanimously yesterday was the most volatile day in mortgage history since rates.

Jesse Dau:   3:31
since they've been tracking

Addy Nett:   3:32
you since they've been tracking rates. So just to kind of give everyone up to speed. Two weeks ago, we were seeing fantastic interest rates. So some most people walking in the low threes and and very, very happy with that, and they slowly crept up into the fours. Then by the end of the week and, um, then the feds announced the zero slash 

Jackson Wilkey:   3:57
What does that mean? Man, let me hear a splash.

Jesse Dau:   4:00
That was a fake news.

Addy Nett:   4:01
The fake news. Well, I mean, they did slash their rates at zero, but not the mortgage interest rates. So usually in traditionally they do fall suit. However, it's not like take one step in the next step, follow. So there is a course. Um, Monday was a very positive move, so we got a lot of the gains back from the losses a week prior, and then it became really volatile the rest of the week. Really, really rough things. Moving around 1/4 to 1/2 percent in rate, Um, even at some points, pulling some ray cheats on the 5% switch is really, really challenging to build a strategy around for our clients. And, um, you know that this is affecting monthly payments by anywhere from 75 on the low toe upwards to $300 a month. So we're in a market right now where you need to be working with the quality of what, Officer?

Jackson Wilkey:   4:57
Yeah. I want to transition to that, too, because, you know people, obviously. Well, if you're watching live, please, literally at any question you have about the Portland metro neighborhoods. Interest alone, your interest rates, Corona virus, whatever will answer those. But these are the conversations that you know we're having every day. Especially Addison. These swings, you know, and waiting for that perfect interest rate. Are you seeing that really affect some people trying to await for that perfect one?

Addy Nett:   5:23
Yeah. Particularly in the re finance sector of it all. You're seeing people who quote I don't know how many times I've heard, but there's additional meat on the bone, right? Um, and those air challenging conversations for me to navigate through is an advisor who's here too. Advise on getting you the best terms possible with the market conditions and few tough conversations in the mid threes, and people thought they would go down and they wouldn't. So, you know, you got to ride the ups and down together, but historically looking at if you pull up the historical interest rate chart, I mean, you're going to see a range from Mike. Even our parents had 17% mortgage interest rates. So when you're sitting at 3.5, which is an amazing, historically low interest rate, I'm a loan officer. I have 3.6 to 5 grind it for that last year. So 3.5 is not good enough. So at a certain point, like people also just need to take what they can get and dilute the risk. But now we're up higher and I'm rambling. So sorry, I could go. Jesse is looking at me. It's like he's going on his rate. No. Yeah.

Jesse Dau:   6:33
Like, for you know, like I've heard people talk about like, you know, I've heard historical low rates for the last two years.

Addy Nett:   6:40
That's an overused term.

Jesse Dau:   6:41
Yeah, interest. And for me, it's like what? Like what? This historical low mean, especially if you're, say, 18 years old in 2010. The rates for four and 1/4 like so Thio, certain buyers it's not. It's in their history of buying. It's not historically low. So you know, I like to just tell people what the rates are and where they have been in the past history and just say this is like, you know, that's the way it's been for the last decade or so because, you know, as we know, some people are sitting and they wanted to float down and stay there, you know, at three and 1/4 352 weeks ago, or even in the twos. And then today, there at five. Guess what This actually is actually prevented people from closing on their house. Exactly. So that's really where it comes into being when people start getting greedy and I don't really greedy, some people actually just say that they're gonna roll the dice and see what happens. The thing is, Addison has alert set. He's in the he's up every morning at you know, 5 a.m. Watching the opening bell. He's you know, he's got a 20 minute like head start on, like what the rates are going to do. It So, you know, just know that we have your benches Best interest If Addison's telling us. Hey, man, if we have anyone else there, that's like, you know, floating, they're rate. You know, they need to lock in now because, you know, thankfully for us without us in here, if you don't have Addison and someone else isn't paying attention. You know, nothing is worse than going to close on your loan and you get a rate quote for, say, your mortgage is gonna be, say, $2000 a month. It you know, when you got that record at 3%. But now you're locked in at five. The day of closing, and your mortgage is now say it went from 2000 to 2600 because of a two point swing. I mean, that's a reality. That's a realistic situation. I know If I was a bar, I'd be pissed off

Addy Nett:   8:20
really frustrated. And I think transitioning from now to the bigger picture because the biggest question I'm getting all the time is like, What do you think's gonna happen next? Right. And we can't predict, however, from looking over the historical charts 2000 being a completely different crisis than this. If you look at when the Fed sash, the rates, the mortgage interest rates had a tiny little jump up and then they followed suit Maur course to the feds. So I think we're in that tiny little re correction phase. And everyone asked me how long is that gonna be? Right? And I think that timeline is directly tied. Thio the media and how the nation responds to the current Corona bears.

Jackson Wilkey:   9:04
Absolutely, totally agree. We got it. We got a question popped in here. We're gonna get thio and again we invite any and all who's listening out there to ask us whatever questions you have about, um, the Portland Metro literally anything. And this one's kind of directed towards you, Addy? Yeah. Um and I don't know, You might have to go through a few of these, but this is good for a lot of people moving here. What preferred first time Homebuyer program? Should I research, given what's available to out of state home buyers, if any.

Addy Nett:   9:32
Yeah, I think a good thing to know, um, first time home buyer programs are gonna vary from state to state, So if you're Googling something in your own state. That program my hair might not be here in Oregon most of the time, the first time Homebuyer any down payment assistance programs are gonna be tied to household income. So a lot of the programs are referred to is qualifying for 80% area medium income. Which is am I out in Portland, Oregon, for this year? That's a roughly 72,000 household income. So if you're exceeding 72 K, you're not gonna qualify for a majority of those down payment assistance programs that are out there. However, there are ways to take advantage. Like the first time Homebuyer does have the ability to go 3% down on a conventional loan a second time home. Mary does not have that. Another kind of thing A lot of people don't know is first time Homebuyers defined by ownership of a property within the last three years. So if you owned a home more than three years ago but you've been renting, you are now first time Homebuyer again. So there are a lot of ways to structured on the back end with mortgage insurance rate reductions, and those are things that we go through, um, typically and the mortgage strategy call one thing I always advise to Jesse and I talk about this Just because it's a down payment assistance program doesn't mean you're getting the terms that you're seeing all over bang great or the best prima like Nothing's free. It's America. It's all financed in. So those are things we analyze, whether having the liquid cash or if it's your only option, everyone's got their own journey and there could it.

Jesse Dau:   11:09
And, uh, I think a lot of people reference back to the first time Homebuyers program, like thinking back to like 2010 when the coming out of the, you know, market collapse from the financial situation that we were in. So I think a lot of people think there's gonna be this amazing benefit for first time Homebuyers. However, I will say if you're a first time home buyer and have 5% down or your second home second time Homebuyer 5 to 10% down, you're still gonna get amazing benefits that are equal, too. The first time Homebuyers program per se, right?

Addy Nett:   11:39
Oh, totally. And I think one of the things I even forget in a lot of our meetings is I'm always structuring it to make it the best time. It's possible. Yeah, I think there's this perception that lenders, the way they structure structure, it is tied to my salary or however my company pays me. But that's completely false, and that's illegal. I want every one of my clients to get the absolute best terms that they possibly can. So I structured accordingly, taking advantage of those things.

Jesse Dau:   12:08
Yeah, eso se somebody listening now called in and they were like, Hey, out of said, I want to talk to you about first time Homebuyers programs in Portland. Could you give them a You know, obviously it costs nothing to talk to you. How long would it? How long? Have a conversation? Should somebody expecto take on the phone with you? Tow, understand? And what's available?

Addy Nett:   12:27
Yeah, I think I taken out the buffer in the small talk. It's a hard 78 minutes

Jesse Dau:   12:32
s. So for seven or eight minutes, you could talk to a extremely high qualified professional, tell you exactly what programs are available. What's the best route to go without pulling any credit and having any attachments needed,

Addy Nett:   12:44
and I don't pressure anyone. I think these guys love it, too, because like whether it's like your uncle's alone officer, you want to use your whatever community person and I'm here for, like, I'm a part of the team of part of the experience on and I'm a resource. So no one pressures anyone to have the conversation. And, yeah, it's good. It's good to explore, and it's really hard to i d to preface being a license. One officer, like all of these things depend on an application. Your credit. Yet the loan product, like we're not even really supposed to be talking about rates without a 1,000,000 frickin small print things. So I want to make it clear that's why we push the console so we can, uh, accurately speak to your situation.

Jesse Dau:   13:23
Exactly. I've been talking a lot about fake news because of everything that's going on. It's kind of driving me crazy, but I will say that when it comes the home loans, a lot of people that contact us have done a lot of research. Then we get on the zoom, calling them. We start talking through things and what they're researching. They're finding out is, you know, not true or not applicable here. So the best thing that I could advise everyone is just to reach out. Let us tell you exactly what the programs are today because programs change all the time as well.

Addy Nett:   13:52
Well, And I think to your 0.2 there's a lot of click bait out there on the Internet trying to funnel in buyers. So one thing one example is like there's a particular down payment assistance program that technically here in Oregon, you only need a 620 credit score. That's the guideline. But I know through hundreds of pre approvals and applications that it rarely works unless you've got a six CD or higher. So really, they're just thrown in click bait to get you as a lead and then structure back. So those air things where we can save a lot of time and I can we can all just be very transparent with each other reference, the guideline and the reality of it working out in our history.

Jackson Wilkey:   14:31
Yep. So I got a really good question that we're gonna, uh you know that I'm gonna ask you to, but I do want to get to one of our viewers here. Huah reset with a question. Again, we invite anybody to ask whatever questions you have literally about neighborhoods, whatever about the Portland Metro. Um, and we'll get those answered and this one's directly to you, Jesse. And it's actually it sounds like, you know, real estate. The real estate agent, Um, and I think it might help. Your answer might help to our give some of the people thinking about moving, relocating here and buying here. Um, just some information, whether it's pros, cons, whatever. But the question comes in from Anthony, you know, how are you guys talking your clients? Um, about this current hysteria that's going on? He's had two buyers and a listing, you know, all kind of canceled because of the fear based reactions. What's your message to these clients?

Jesse Dau:   15:19
Yeah, my message is the same as it was two years ago, two months ago, two days ago is that I will always support my buyers and sellers with what their best interest is in to protect their family. So if I have a client, that is, you know, um, you know, skeptical or scared or wants to just hold tight. You know, at the end of the day, I'm going to support them, do it everything that I can to make them feel comfortable because did in the day. A man like this is this is people with lives in our hands Like when we're messed Boomer, you know, putting forth contracts and helping people buy and sell real estate. It's most 90% of time. It's most people's, you know, most valuable asset. So I want to make sure that they're comfortable moving forward. And if they tell me that they need to just hold tight and terminate a contract, you know, I'm gonna support that. But, you know, the best thing that I could dio is give them up to date real information of what is going on in the market and let them make the decision. If they ask me what I would d'oh, I give them You know what? My two cents are? How I'm feeling about things going on. So you know the best thing I could you just give them true, honest advice and, like, let them, you know, I've actually done face time with tons of clients showing them like that there people still out enjoying the sun and in the parks. And, you know, because when you hear the news and see it and you think that we're in frickin locked out and everything's Cortina and everyone's walking around in suits, you know, but like, you know, safe suits, clean room suits. But, you know, in Jackson her tears because this family lives out of state. But the reality is, is everything that's still moving here. And I feel, um, you know, the market is still super strong, But like I said earlier, we're going to see what happens here in the next couple weeks. And one thing I will note on all of this is that when I talk to my clients like that on and let them know that their decision is their decision, I supported 100%. I get out in front of that. As soon as this hit, I restocked everyone, let them know, you know, this is what my stance was on it. And, uh, everyone is very thankful and grateful. And then I I get to hear them be open and honest well during the whole conference transaction, because the last thing we anyone wants is somebody getting blindsided. The last second you know, which we had on, you know, our client was selling their house in another state, and they got blindsided at the last second. And, uh, there's no indications that anything was happening in the domino affected down the pipeline,

Jackson Wilkey:   17:36
So yeah. So this is kind of what I wanted to talk about. Um, I think for the past few years, we've been hearing this from everybody that the market's gonna crash, and that's when everybody is gonna be buying, right? So in a way, you know, a lot of people gobbled up houses who could, and that's when. And that's what we've all heard, you know, um, for years is that they're waiting for this market to crash so that they can buy low. Do you feel, um I guess nationwide, but specifically in Portland, like or housing might like, it could crash in and prices of homes will drastically fall.

Jesse Dau:   18:09
You know why we're talking about the other day? And I've studied the recessions of ah, all of our polling market through all the recession's and only during the Great Depression the market fell 7% when the housing market collapse were we got hit hard at 28. But then almost every other recession after that has been a positive growth. The, you know, And we have to have, you know, so many quarters in a row of negative growth before we're actually in a recession. But I know everyone's been waiting another month that we were negative. It was down like 1/10 of a percent. So, um, our inventory is really tight, and people have more equity in their house than ever before. So I highly doubt that we are gonna end up a position where people have to sell their house or they're gonna lose equity. And with the way that everything's lining up with inventory rates, you know how much equity people have in their house. I I highly doubt that anyone's gonna be seeing discounts on houses. The thing I will state, though, is that you know, if people do decide to start slowing down and going out and seeing the multiple offers air going to slow down, you know, so it's gonna be less competitive. So if you have been waiting to buy and you are looking for you know, not overpaying for a house or getting a good value. You know, for your dollar, which I always tell everyone we priced houses to sell in the first week is the longer they sit on the market, everyone says, How long has this house been on the market? So that's why sellers usually try to sell in the first week is because they want to get full price. So we look at statistics. We look at active spending sold in the neighborhood and very comparable products to see what the true value of the home is. There's also an appraisal, so we make sure that our clients are never buying a house with negative equity. So this is really where it comes to a professional. And like I mentioned earlier to this weekend to me is gonna be a total side to see what's really a ninja cation of what's going on in the marketplace.

Addy Nett:   19:49
Well, yeah, and add to your point there, Jesse, You know, I had that question come up with to me three times today. People ask me, what do you think's gonna happen with the market? What do you think is in value? I love what you said before, where you got to do what's best for your family, and we're gonna support that 100% of the way. Um, recording the long term value of real estate, though every once in a while we all need to take a break of the perspective. We're looking at it because a lot of people are gonna like this month where values going to go in this month. The strategy of real estate is the long term game for the majority of primary homeowners. So don't forget you're walking in your overhead for 30 years. You are. It is a cost, a fixed cost You will have either way. So

Jesse Dau:   20:34
I think, like I was also looking at the average sales price in 1995 or 96 that 25 years ago. And, uh, it was said that the average home sales price in Portland that year was like 150 grand. Now it's 4 50 so the prices increased $400,000. The thing that we have to know is they're not making any more land. And if you even look at back up 20 years before that, it was way less expensive. So I mean, just in continuous growth, like in 20 years, we're probably looking at these prices being like, Oh, my gosh, this is crazy. I would've bought 20 houses at that time, but everything's relevant for inflation.

Addy Nett:   21:07
Well, into your point on the prices of homes. Look at the comparable cities north and South. We have Seattle way, more expensive, way more expensive. You think those $123 million homes, they're gonna have issues prior to your you know, you 2 500,000

Jesse Dau:   21:23
And I'd also like talking about recession talking What? Not everyone always goes back. And it's like anyone that I was talking about. That maybe 18 years old listening is that everyone correlates recessions to what happened in 2008 which was caused by the financial markets that, you know, had everyone's mortgage loans in there. So when that collapsed, of course, the thing that's housing everyone's mortgage industries is going to cause the house prices. They drop out because all the houses were falsely inflated with prices

Addy Nett:   21:49
on the guy lines were in place to prevent people that couldn't afford the home to do so. So this is a totally That's a really good point because a lot of people are asking, Is this what's happening in 2008? And it's a totally different situation, not only with the current state of health in the nation, but also it it's not a corrupt financial system or a broken financial system. And I keep reminding that like I'll get financial advisors calling me like Are you seeing underwriting? Underrating Tighten up here is like the guidelines of the guidelines. They're not changing. Fannie and Freddie's guidelines for 2020 have not changed in the last 48 hours. So it's just funny, just from a perception all standpoint,

Jackson Wilkey:   22:29
you know, we got we got some more people on. Just wanna encourage you again toe ask us any questions and then, uh, real quick, if you are watching this afterward, live we're doing lots of live updates. So we're keeping you up to date on what's going on in the Portland metro It So you've got to make sure you tap that subscribe button. So you know when we go live, we're gonna be answering any other questions you have. We don't care what it is about. Portland will do that. So make sure you're asking any question, but to keep things rolling, we'll start with you. Addy, give us your, um, kind of 10,000 foot. View your your 32nd pitch on. What do you really think's gonna happen here in the next few weeks? Months, like with this Corona virus is

Addy Nett:   23:09
perfect. Yeah. Specific tow er or again. I think this weekend will be a lot of unveiling of what will happen in the terms of our they're going to force people to stay at their homes, which will open up entirely different set of how we're gonna operate and keep life going. Um, I'm confident that we're going to rebound for me and my world. What eye? Staring at mortgage backed securities and interest rates and communicating with people that are in contract, not a contract. Were you financing are getting ready. I have a little bit of a different perspective on it. I think we will rebound. We will see rates at 3 to 4%. Likely. It's just the timeline of how long it will take for the dust to settle. That is the unknown variable, which makes it very challenging, like when we're talking to our clients that air moving or not moving the ones that are trying to do it right now, it's really challenging. But anyone say a month, two months out, I think we're all gonna be looking back on this and and we're gonna be able to move forward.

Jackson Wilkey:   24:11
Exactly. What do you got? Kind of, you know, your opinion to keep going, Jesse, of what you think you're gonna see, especially in this is the housing market with houses.

Jesse Dau:   24:19
Yeah. I mean, it's really this weekend. It's gonna be a really, really good indication, just like I said last week, and it still was very unknown here, and everything was up in the air like we had a crazy amount of people at the open house is, um when you get outside, you don't really still, you don't feel the vibe that there's really It's just that you don't feel the vibe like anything's going on, just feels awkward inside and you go outside and everything seems normal again. So, um, I really want to circle back on this on Monday without giving my two cents of like where I think it's going because I definitely think we're going to see less people out shopping. But when it was flooded in the last couple weeks, it's actually gonna be good for buyers.

Addy Nett:   24:57
And it's beautiful here, by the way, the weather is like,

Jesse Dau:   24:59
Yeah, Primo. That's like mid sixties. Everyone

Jackson Wilkey:   25:02
there's toilet paper at Costco. They restocked the TP. Yeah, we got teepee. We got sunshine, we got brewskis. Um, the only thing we can do is you know, this is definitely out of our hands and our control, so we could just kind of keep pushing on. And we're going to continue to update you guys with everything that we know. I'm going forward. So, you know, follow us. Going live next week. A bunch. Obviously, if they shut down this, we do have ways of going live to continue to spread our message. And what's going on here in the Portland Metro? Only way to Ah find that out, though, and listen to us is to subscribe. Click the bells you notified? Oh, there we go. Um,

Jesse Dau:   25:38
you know one thing I will know it too, is you know, this isn't anything new for us. This is like this actually plays like right in tow. The type of service is we provide. But you know everything that we can provide whether it's showing houses like through face time doing mobile, mobile notary, where we get someone to come and sign your docks for you. All of our documents are initially for contracts are signed electronically. Um, we could do buyer consultation, Seller consultations. Althea Zoom, which is video conferencing system. Uh, you know, the list goes on and on. We schedule all inspections, all repairs, everything. So essentially, we could sell you how the house and represented as a buyer and never even. Um, you know, you would never even have to go to the house once or even a person, you know, in front of us until the day of closing, when you actually signed wet docks.

Addy Nett:   26:28
You having a lot of the county's here? E filing? So Multnomah County. Marion, Kaka. Miss Washington. So all

Jackson Wilkey:   26:35
right, this is the heart of our business. We've got a question. Thank you, Melissa, for asking, and it really hinges often and bounces off what we're just talking about. So we are able to do this, you know, um, from the comfort of your home. Wherever you're at. But if you are planning a move, you know, like this question from a list is you know, if someone was planning an out of state move at one point in the process, would you recommend someone reaching out to learn more about home buying in the area?

Jesse Dau:   26:59
Yeah, I would definitely. It doesn't matter if you're one year out, one month out or at one decade out. The thing that we like to do is always stay in communication with our clients and get a good feeling for, like, where you're out with, like, you know, credit. Um, you know, financial situation, because it's a year, two years out and say you needed you know, you're out of 6 60 credit score. But we know getting over 700 could get you in a way, better position and having certain amount of money down. We want at least give you the education to know that these options are available to get you in the best position, because over the course of time, they can save you a significant amount of money and the thing that I like to do as well as you know, if somebody tells me they, you know, are looking to buy a house under 400. We set him up on a search of all the houses under 400 so they can kind of get a feeling For what areas? They can afford specific homes under that 400 marks. So therefore, when they When you do get Thio the chance to move out here, you kind of know what you're gonna get in certain markets.

Addy Nett:   27:56
Yeah. No, you're totally right. And also, like, we've seen people shift their preferences from multiple meetings, hearing from all of us. Heather you Jackson myself on the different areas. And I would have you said that really well. But where I would say we're a relationship based team. And when you're moving in relocating, whether it's across the country from just from California, trust is a big thing. So the more that we can and just have those short calls, those touch bases, those get to know each other's, the trust level just increases on both sides. We get to know what your preferences are with communication, what you're looking for Foreign House, what your financial goals are. So just going back to help start a relationship. It's never too late.

Jesse Dau:   28:40
You don't even like people, like looking for jobs. Or maybe you need a job

Addy Nett:   28:43
that working? Yeah.

Jesse Dau:   28:44
Networking. Huge and even. You know, if you need a listing agent down in your city, you know, a referral for anything like don't ever like. We're one stop shop like that's our motto is You know, we're trying to be a one stop shop team, so we try to have connections with everything that you would ever in a jam. You know, you'd be surprised what you know. Maybe we have to offer what kind of things come about in these conversations.

Jackson Wilkey:   29:05
So to really sum that up, it's never too early. We have people who reach out to us really for in advance, and some of those people will reach out and say, Hey, I think I'm moving there in about a month or two and it turns out to be a year. And then people reach out and they say about a year out, and that turns to be about a month. So with that being said, it's never too early and there is no, you know, credit poles or nothing hard core It's just conversations with your eyes, ears and boots on the ground. You're your team here. So, um are are ah, numbers always down below. You can shoot attacks, call whatever. However, you want to get a hold of us. I don't see any other questions that came up. He either one. You kind of got anything. You want it. I wanted to give a shout out from sand. Um,

Addy Nett:   29:45
my boy, Stephen, I don't know if I can say his last name, but Stephen and his wife, but we closed today. Boom, boom, boom. Awesome. Yeah, I was just fantastic from my first zoom call. Two keys and he and super fun. And thank you for trusting us

Jesse Dau:   30:01
v alone.

Jackson Wilkey:   30:02
Okay, we go. One came in with regards to financing with the bigger banks. What's the number one mistake? First time home buyers make. Who wants it teed up?

Addy Nett:   30:14
Think one perception too. With the big banks and even Jumbo. What were the question was related to big banks and large owns

Jackson Wilkey:   30:21
no bigger banks and first time Homebuyers.

Addy Nett:   30:24
Oh, my gosh. Well, there's nothing. I mean, the bigger banks. I'm trying to be very polite.

Jackson Wilkey:   30:31
Yeah, e I guess just like things they need to watch for things to

Addy Nett:   30:34
watch for. So the process is gonna be last tailored. So most people at an FBI see insured bank do not need an animal s license actually sponsored by the bank itself. So they haven't been through the training. They haven't passed the animal last test most of time you'll see in their email signature. So there's a certain level of education. Additionally, they're having to do a high level of applications and process through. So if you do need flexibility when it comes to advisement, say after five o'clock, which most people only have unless they're stuck in their house, Um, you need to be spoken to on the weekends, which is when people are putting it offers on homes. Ah, you need run numbers. You need to know exactly Now, um, larger banks, typically, they're gonna have that window a 9 to 5, and then why you're being so great for a lot of different sounds like they have a lot of great products out there. They have very great rates. However, you're working in the river of the business system for the most part. Additionally, lastly they will cut you off, don't they? Don't hustle up when it gets too close

Jackson Wilkey:   31:44
in alone. Yeah, you get thrown in the river and you're gone, and they say, I'll see you at the finish line. No one can get older.

Jesse Dau:   31:51
I think, uh, those are all great points. And why

Addy Nett:   31:54
I'm gonna get hate mail.

Jesse Dau:   31:55
There's Addison. But I think one of the questions of that question was, What is a mistake a first time home buyer can make?

Addy Nett:   32:02
Yeah. Oh, what is a mistake? Yeah, like, I think one of the biggest mistakes is the myth that you can't run your credit with multiple people. Um, also, there's a lot more flexibility with Sorry. Keep cutting off you take heat it up. I

Jesse Dau:   32:22
I'll say some things that I've seen destroy deals from first time home buyers.

Jackson Wilkey:   32:26
There would go, Let's get into it.

Jesse Dau:   32:27
One buying a car, right, Right in the middle of closing. You get your loan accepted. Someone gets excited to buy a car. Bam can't close a deal. They stop paying their credit card bills. That's a frickin huge mistake. They start pulling out. Credit cards are getting furniture on credit. Essentially whatever you're doing when we talk to you and we get the deal accepted. Just keep doing the same thing. Just keep everything part of the course. Stay clean for 30 days. And

Addy Nett:   32:53
I thought the question was the something to do with banks.

Jesse Dau:   32:57
It said, What is a mistake? That first Max and pull it back up

Jackson Wilkey:   33:00
pulling my weight. Need a re draw? Okay, Well, important guy will, actually, cause it does cover. And he said thanks. Because it did answer

Jesse Dau:   33:07
that. I said there was two parts of the questions.

Addy Nett:   33:09
You got it. You make a huge point with the auto thing. I see that a lot over extending on auto auto loans.

Jackson Wilkey:   33:15
Yeah, And it was just, you know, kind of with regards to financing with bigger banks. What's the number one mistake? First time Homebuyers make. And so

Addy Nett:   33:23
also not being on a 0% interest credit card while you're trying to save.

Jackson Wilkey:   33:27
Yep. But yeah, it's around that all out. Um, first time Homebuyers, honestly, and this is because, you know, I was there. You guys have been there. That's when you would like, need the most help. That's when you need the team touch you know, if you bought 345 houses, you understand the process from closing, um, at the end to literally talking to the lender the beginning. So everything in between your kind of familiar with at the beginning of it, there is a lot of moving parts. There's a lot of this dude over here is doing and that's dude. And you know, our real estate team. Everybody is a lot of moving parts. So, um, you know, as a first time home buyer man, getting all that information and having people available is super important

Jesse Dau:   34:03
here. Here's the thing that I'll say is I would say 90% of our deals are written over the weekend, huh? 75% of that 90 percents written on Sunday. Let me tell you who's not working on Saturday and Sunday and someone that works for a federal bank. So, you know, guys don't even know how many times Addison has to step up and in clean up house because all of a sudden, you know, are clients. Uh, lender isn't available on a Sunday to write a preapproval letter, talk to the listing agent, and I don't mind using anyone and we talk about that all the time. Hey, you know, we want you to use your comfortable with, but I just needed it. I needed ah have the conversation and build a relationship without lender. And I just tell him from the very beginning Hey, uh, as long as you're available to write an offer and represent my client our client to the fullest extent possible on a weekend, that's what we need, you know? And I will say that we actually have had lenders tell us that they're unavailable until Monday morning and offers or do on Sunday. And then we do by the buyers are in tears crying because they can't get an offer out of the room. Yeah, exactly. And it's super sad. So

Addy Nett:   35:08
I would also add to the closing costs because first time home buyers a lot of the times have not been properly educated on how to digest Owen estimate in what the closing costs are. A really good example don't like they're already driven. So many times, I go in and the one officer is like, great. Yeah, I can get you in a 3.25 It's all gonna be butter Nice. And, um and then Jesse takes a look at it. Did he realize they're charging in $9000 discount points? Was that not? I don't have nine grand then? No. And then they write, What's a discount point like? Those are things that we go through, and it's unfortunate that happens out there, but getting a proper breakdown of how those work. Um, I see that as a mistake. I didn't know that when we bought the first place. I didn't know I wasn't in the industry.

Jesse Dau:   36:03
I had a client tell me they were getting, ah, massive. They were getting a great rate on a house and then they immunized. They said, Oh, I know how much you're putting down. They're like 3% is forgetting their preapproval letter, go out shopping. And then I looked at it and, ah, they're putting 3% down on, like a $350,000 house in the cash. The clothes was over 30,000 bucks, so they're bringing their charging them 20 grand for closing costs on. I was just like I was literally, like was freaking out.

Addy Nett:   36:29
I don't know how some people sleep at night knowing that they're deceiving people.

Jesse Dau:   36:32
Exactly. So that's one thing. That's a good question. How much are like If somebody was to buy a 10 save $400,000 house here, how much would they're closing? Costs traditionally be around.

Addy Nett:   36:43
Yeah, the way I

Jesse Dau:   36:44
stopped buying any rates down

Addy Nett:   36:45
trying to break. So I tried to break it down into a digestible to bucket explanation. One bucket costs associated with the loan. So those include underwriting appraisal fees, Title county transfer Any of those tax that are associated with the loan thes secondary bucket would be your prepaid Sze, which it goes into your escrow account. The easiest way to remember it is typically one year. Typically, it's a little bit variable one year property taxes and insurance up front, plus those honest associated fees. So it's typically about 3500 to 4 grand for the fees. And then, if you're looking at listing set up by these guys, you look at the annual amount of tax of taxes. Add those two together a little more for the year insurance. So you're seeing seven and $9000 on, you know, on average. Yep, yes, right there

Jesse Dau:   37:39
Yeah, my rate of my rule of thumb is I always assume that it's gonna be around 10 the most. Yeah, or you know, if it's a luxury, Alice, it's obviously anymore. But yeah, that's usually a good baseline.

Addy Nett:   37:48
The taxes is the big one. And when we bought a home, my wife and I had no idea what what this was all about. Sweet. Hey, how much is this house in this house? Right and back. The closing costs air, you know, 11,000 on this property and 7000 on this one. And I thought the guy was scamming me. I thought

Jackson Wilkey:   38:06
the guy was scamming

Addy Nett:   38:07
me, but it was property time. What

Jesse Dau:   38:08
if it's a condo? Did it the prepaid Julie. If he's up front,

Addy Nett:   38:10
it depends on the H away. I haven't seen one in a really long time, but there are two fees. Um, not a lot of people know, and sometimes loan officers neglect to disclose them On initial estimate. It's the condo cert fy in any H away transfer tax, which is never identified until you're in contract. Anyways, it's just like 150 box 400.

Jesse Dau:   38:29
But what if they do collect fees upfront, then usually that's gonna be an additional safe. It's 300 bucks a month, $3600 at closing

Jackson Wilkey:   38:37
and something that probably doesn't need to be, Um said. But that that could go on to the loan. Daddy, the closing costs.

Addy Nett:   38:45
I mean, we're opening up entirely different subject line of everyone says like I wanna finance in the closing costs and they think that it's like a secondary Well, so for easy math like, say, it's 10 grand is your closing costs, they would really think that they're able to take another loan for $10,000 finance it in. The only way to quote the action is called rolling in your closing costs is tohave. The seller in return, give you credit, which you can apply toward your closing costs. So an example. Let's say a house is listed all used. Try to use easy math 400 grand. They're asking for $100,000 you want to give a full price offer, but you need $10,000 in credit toward your closing costs so that you only bring in your down payment. You would to give them that full on that offer, you would need to offer 4 10 and have the sellers give in return 10 grand toward your closing, and they would net 400 the original asking price. So that's rolling in the closing us. That's the term used financing. And that's actually the exchange the seller's air, paying him for you and off they agreed upon sales price.

Jackson Wilkey:   39:50
Jesse, is that in a market like ours, are you seeing that on some of the offers?

Jesse Dau:   39:54
Oh, yeah, almost like 100% of them. I see that in the offers. And if the house has been on the market for a couple weeks, you know, I usually am able to negotiate at least the seller to pay closing costs. But I will say if it's like most pull offer situation, we need to have the offer looking as clean as possible. So that means, you know, we're not gonna ask for closing costs. Typically at the right, a little bit over Titan of contingencies. I have a list of the items that I could give my buyers that actually shows you how to like one. What how how are the offer's actually ranked in ascending order from greatest the worst. And then also, what can you do this? Strengthen your offer?

Addy Nett:   40:29
You have a really nice system, Thio of communicating with the sewers and working out a lot of the back and forth that maybe some other junior agents make it do multiple offers air back and forth, addendums like you're excellent getting on the phone, talking to that listing out. Okay, where do we need to be at and kind of navigating through

Jesse Dau:   40:47
it, just like anything else in life? Man, it's communication is key. And I tried to Even if they're not reviewing offers until, say Monday at five, like I'm still inconsistent communication over the entire weekend. You know, even if we submit the offer on, say Friday, because you never know what's gonna happen, they might all of a sudden decide that they're gonna review offers on Saturday at 9 p.m. And they're not telling anyone because at the end of the day, you know that they're the ones with the power and they have all the offer. So

Addy Nett:   41:11
when going back to the closing costing real quick and the reason why I wanted people, people want to do it because 10 grand is a lot of money in that example. So we'd rather you be liquid. So the general thumb is 10 grammars the needle, usually on a 30 year fixed, about $50. Rather have the 10 grand

Jackson Wilkey:   41:28
50 bones. All right, guys, I haven't seen any other questions rolled through. We've been going good 40 minutes again. We invite anybody to ask any questions, literally about anything. Port.

Addy Nett:   41:37
What about you, Jackson? How's it going with kids and the schools? And you're the one with the kid as, uh,

Jackson Wilkey:   41:42
we got we got kids running around. Hank's been chopping it up in the studio, and that is the one thing. Yeah, schools are shut down. I think that's basically nationwide, but I'm here over a month, but they sent home. I love the organ School district, man. They already within three days sent us home schooling curriculum, so they're gonna have structure every single day. So for parents, it's a big deal because you trying to scramble to figure out what to do with these kiddos every day.

Jesse Dau:   42:07
Everyone needs a world campus like we D'oh!

Jackson Wilkey:   42:09
Yeah, that's right,

Jesse Dau:   42:10
Vera Bella, Give them a free shot out uh, not a sponsor yet,

Jackson Wilkey:   42:16
so we appreciate everybody's time here, and that's what we're doing. We're gonna be going live as much as we can and keeping you guys up today if you're catching this afterwards. Ah, and you aren't a subscriber yet. Where you're watching this right now? We're literally doing so many videos. We got a bunch of them coming out here real soon. That's gonna help you. Um, you know, figure out your perfect area, figure out what it's like to live here and everything else, so make sure you tap that subscribe button. Quick little bells. You notified every time we go live and do new videos. And again, here's our number down below. Shoot us a text call. Day nights, weekends. We literally never stopped working. So reach out to us and we got your back. We're moving to the Portland Metro. Um, I don't see any other questions. So, guys, I think that wraps it up for this Friday. We will catch all of you later. See you brewski. Time