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Suit Up With Baez
Level up your real estate, mortgage, and business game with the 'Suit Up with Baez Podcast!' Tune in for bold strategies and expert insights to fuel your success!
Suit Up With Baez
Navigating Real Estate Shifts: Mastering Market Moves & Investment Insights
Unlock the secrets to mastering today's real estate market as we dive into the bustling world of property investment and homeownership. From Jerome Powell's pivotal 50 basis point rate cut igniting a refinancing frenzy, to the resurgence of bidding wars akin to the post-COVID era, we navigate these shifting sands with you. We examine the necessity of strategic timing in home buying decisions, urging potential buyers to act swiftly and wisely in this fast-changing landscape. Experience the thrill of our new office opening, a symbol of the return to essential face-to-face interactions in the real estate and mortgage sectors, and learn how to stay informed and proactive amidst these developments.
Embark on a journey through the evolving rules of real estate, where sellers now bear the responsibility of paying buyer's brokerage fees, shaking up the industry standards. P. Diddy's eye-catching $61 million mansion sale serves as a testament to the lucrative potential of real estate appreciation. We also spotlight the crucial distinctions between fleeting indulgences and the enduring benefits of homeownership, emphasizing the importance of stable, long-term investments over temporary luxuries. Discover the array of grants available for first-time homebuyers, and let us guide you on your path to securing your dream home. Engage, subscribe, and continue this adventure with us as we provide invaluable insights and support in your real estate endeavors.
let's get it. Guys, welcome to suit up with buys podcast. I'm extremely excited. As you see, we had a new place, yeah, a new location. We have our new office. We're extremely excited and continue doing this podcast to help others out there, out there, and we're here for you guys. Let's go, angelo let's go.
Speaker 2:But yeah, that's why we've been, uh, you know you haven't seen a video from us from a little bit because, uh, we've been transitioning into a new office here. So if any of you are wanting to, you know, ask any questions in person and whatnot, we'll definitely uh, let you know where our office is located here, guys.
Speaker 1:Now we got an office. You know, I know we've been used to for the zoom for such a long time with this covid, but I've been seeing that people want to meet in person again, angela they do, they do we got to bring it back, guys.
Speaker 2:We have to angela exactly, especially with all the new role changes that are coming into effect, which we'll touch on later on in the podcast. But yeah, it's very important to have a physical office, you know.
Speaker 1:Yeah, we have a physical office. We're here for you guys. Any questions of real estate, we're here. Mortgage and real estate we're here for you guys. So, angela, talk to me.
Speaker 2:Let's get on with the market so right now with the market, it's actually getting a little bit interesting just because of the fact that, uh, jerome powell has announced that there's a rate cut by 50 basis points. Um, you guys are not going to see it. That's just yet. It still has to go through a whole process, lending atmosphere. But, um, yeah, people are getting excited. You know, traction is picking up, a lot of people are starting to refinancing and there's been an uptick of 20% and refinancing. So all those lenders are going to be very happy because now they're going to be able to help a lot more people with their refinancing. And all of that, whatever percentage you were locked in at before right, if you see that it's 2% or higher of a difference in your current interest rate compared to the one being offered now, you should definitely take part in refinancing, because that's where it makes sense.
Speaker 1:I'm with you, andrew, yeah.
Speaker 2:And from my personal experience, the market is getting a little bit hotter just because of that news as well. There's a little bit more homes coming into the market, more uptick in sales and, yeah, people are getting excited you definitely brought a strong point on the rates guys we actually enter our point, our fourth quarter.
Speaker 1:I'm finishing the year. The good thing is that um rates are going to drop, but it takes a process not to happen instantly, but it's going to happen very soon. So everyone think everyone is calling Heidi, for instance, heidi is our preferred lender, mortgage broker, so everyone is calling Heidi to refinance, thinking like it's already five and a half right. But the reality is what you just said, angelo it's going to happen, right, the rates are going to go down, but it hasn't gone down yet.
Speaker 1:But, they already announced it for sure that they're going to bring it down. Right, they re-announced it for sure that they're gonna. They're gonna bring it down. So everyone just get ready to collect those documents and then, once the race go down and go ahead, do your refinance, start buying. But I am seeing something with the buyers. Um, do you guys remember what happened when covid happened? Race started dropping tremendously dramatically down and what happened was that race dropped and what happened with the buyer was that it was a bidding war. People were going crazy and I've been witnessing, we've been listing properties that right now rates are estimated to go down now and everyone's already going back out.
Speaker 1:And we are seeing more buyers going out there right, the market's getting better. Prices are still high, but inventory is very low, and if rates come in lower, inventory is low. It creates more bidding.
Speaker 1:so if you're qualified, now go buy yeah, absolutely you know before you get stuck in the bidding war paying 50 to 100 000 more. So the bidding wars were happening when covid happened. Right, hopefully doesn't go that route, right? Those are all predictions. Right, hopefully it doesn't go that. But Definitely, guys, rates are going to go down. Hasn't gone yet. It's a process, like Andrew just said. Yeah, it's a process.
Speaker 2:Absolutely. I mean always. You know, before buying a home, just know that you should be buying home because you need to, not because you want to. Your family's expanding and all of that and you need a home. Right now would probably be a good time, since rates are starting to go down. When we mentioned like the rates and stuff, I know me and chris right we were hitting up heidi and saying, oh, what are the new rights like?
Speaker 1:how can I get? I had already past clients reach out to me um heidi, especially letting us know like, hey, I'm ready to refinance. Is it five, five and a quarter, five and a half? You know it's in the process, right, it's not happening now, but, as all the feds mention it, it's in the process, right, not happening now, but some of the feds mention it, it's in the process right now exactly because we thought it would just take an effect immediately, right.
Speaker 2:We were like, oh right there.
Speaker 1:And then, like I'll be honest, I was on the same page with you guys because I was already telling my wife it's race went down right really well, let's buy a property. I was already telling heidi because you know I always tell heidi like we got, you gotta continue property. Just like how we tell you guys to buy property. We also put it in our life Like we also need to be buying properties too. It's such a huge benefit to be a property owner and also creating a portfolio for your family.
Speaker 2:Right For future generations to. You know, thrive on that, because you're going to have income coming from that. And you're actively just like, well, you're just passively getting that income I. And you're actively just like, well, you're just passively getting that income I think most important, today's price is, not tomorrow's price.
Speaker 1:And if you sit and think on that like we buy the property today for $500,000. You don't know what's going to be 10 years down the line, what it's going to be worth. You might see it so much today, but 10 years from now what is $500,000? We don't know. The more years pass, the more value the properties get and more expensive they get. Yeah, buying property is huge and I always highly recommend to always buy a property. Instead of buying cars, having credit card debts, go buy a property that's my, that's my opinion on this absolutely.
Speaker 2:I mean the home prices, basically appraise, like for such higher amounts during a longer period of time, like their appreciation is just crazy where when you say like get a car, like don't get a car, a car as soon as you buy a car and brand new it's already depreciated like 10 or something like that I definitely want to share some one of our past clients.
Speaker 1:We sold him a house about a year and a half, if I'm not mistaking. The rates when we sold it, the house were like I think, about seven. Right now he's calling heidi to refinance and guess what? His house value just went up about about seventy thousand dollars. Now he's refinancing with seventy seventy thousand dollars of equity in his property. So you see, even if rates are high or low, always, always, go buy a house. Rates wereates were high, he took advantage, he still bought the property and now he's sitting on $70,000 equity on his property.
Speaker 2:Right and appreciated equity. Appreciated equity yeah.
Speaker 1:You see what's the benefits of still buying with a higher interest rate? The property still goes up and back, so it's a win-win for everyone and anything. Yeah, that's my opinion on that.
Speaker 2:I completely agree. I mean, it's one of those properties where you can't go wrong buying it right, Unless you don't know what you're getting into. That's why it's always important to discuss with your agent, like all the ins and outs. If you do have any questions, reach out to your agent and see, I'm your agent.
Speaker 1:Call me guys At all times. Alex is your agent.
Speaker 2:Or Chris or myself, whoever you feel comfortable with, or your local real estate agent. But yeah, just make sure that you're prepared for that. There are a lot of things that comes with home ownership and you have to be prepared for that, but other than that, it's something truly special to own something of your own, you know, like a property of your own where you're not being washed over a landlord or anything like that. You could just like customize the home how you want within reason.
Speaker 1:I will always say this to everyone always speak to two to three professional realtors before you hire one don't just go to the first road.
Speaker 1:So we all offer different services, we all have different opinions and wherever you feel comfortable with hire, but speak to at least two to three professionals realtors, right, because everyone does different services. So if you want to get the best service, talk to two to three and see who you feel more comfortable with and who you've got a connection with, which realtor. But definitely pick and choose a realtor that you feel more comfortable with. Speak to two to three people at least.
Speaker 2:Yeah, absolutely, and since we last did a podcast, new rules have been implemented.
Speaker 1:Oh, real estate industry had changed a lot dramatically. I mean, it's a lot of things going on with the buyers, right.
Speaker 2:Exactly Buyers, specifically Buyers you're going to have a different way of doing things right. Previously, agents were allowed to show you homes without you having signed anything right. But now that the new rules are in play, with the NIR settlement and stuff, you are going to be asked by your agent right to sign a buyer agency agreement which states that you know they're going to be representing you and it's going to outline also like the commission structure. That's going to be the normal practice going forward. Essentially, how it's going to work is that you're going to sign that it's going to make clear how much your agent is charging you. But, honestly, that charge can also be it can be transferred to the, to the seller. So the seller pays it, not the buyer, which is a seller concession, correct Seller concession or just the seller pays it directly, right, there's three ways how your agent is going to be paid now, and it's going to be either the seller pays it directly, which then there's no problem, it's just like the seller paying it. Another way the seller can pay it somewhat is through seller concessions, but you have to make sure that the value, the appraised value, meets the offer that you're submitting, because, like, yeah, you're submitting an offer with the compensation included in there. If, let's say, you're submitting 730, right, 730,000 for a property and it includes the commission there to be paid out through seller concessions, then that means when the bank appraises that property, it has to come in at $730 or above so they're able to essentially cover the compensation within that loan.
Speaker 2:Now, the third way that the agent can be paid is basically that the buyer pays out of pocket. Essentially, and most of the time it's going to be probably the seller's going to pay the whole thing or a big portion of it. At least, that's what we're seeing right now. Just have that in mind. Right, your agent is going to discuss that with you, basically outlining those three methods of how they're going to get paid, because it's very important, right? No one works for free. You got to put money, you got to put food on the table for your family and whatnot. Yeah, just know that that's something that's implemented now In our brokerage. Right, we have to do three documents. So you're going to be hit with three things at once, and that's going to be the buyer brokerage agreement agency disclosure, which outlines our obligation to you. Buyer brokerage agreement agency disclosure, which outlines our obligation to you. And the third one would be the anti-discrimination, your right to not be discriminated against, and whatnot. So, yeah, those are the three forms for sellers. What has changed, do you know?
Speaker 1:august 17. This it went in effect for buyers. So I'm I'm actually excited about it. Why? Because everything will be now structured. Now you will know exactly for the seller and the buyer will know exactly where the commissions are going, who's getting paid, how much each person in the transaction, each realtor, is getting paid. So now it's more professional. In my opinion, it's more professional and beneficial to the buyers and the sellers.
Speaker 2:Everything is in writing now.
Speaker 1:It's extremely more professional and it's more straightforward to what we're doing On the seller. So now sellers have the option of paying buyer commission or not.
Speaker 1:That's what changed for the sellers? It's beneficial for the sellers because some sellers are going to offer and some sellers are not. Sellers are not obligated to offer buyer commission right, only for their listing agent. They will be paying for their service, so they have the option. It's going to be more seller concession than anything my opinion, but we'll see what happens. Right, it just went into effect the first year. In my opinion, it's going to be a roller coaster, right, it's a lot of. It's huge in this industry, right, been like this for years that the seller pays for it. It's going to be a roller coaster. Stay tuned. It's going to be a whole year. I'll give at least a year or more for everyone to basically get used to it. Right, it takes time for people to get used to right. When right when gas prices went up, everyone was panicking. You wasn't even seeing traffic and then within two, three weeks, you started seeing traffic. So it's about we getting used to it, but it's going to take time for everyone to adjust to it.
Speaker 2:Yeah, absolutely, because now a lot of agents are basically calling other agents to see how the seller wants to move forward. Are they giving compensation or anything like that? And I know you've been on the other end where you're being called so many times to say, hey, are you guys giving compensation? Because I want to see if that factors into the offer and all of that and yeah, so my roots is out there.
Speaker 1:I love you guys, but I prefer text or email. So many calls coming in at once, right, but this is an nar started. Right, we've got to follow the laws and the rules understand it.
Speaker 2:But I'm more with the texting and the emailing and, of course, reaching out to my team yeah, and if any other realtor is watching right, how I think our team wanted structured is that you can just put the compensation, whatever the compensation structure you're you're putting together in in the offer sheet itself yeah in the writing yeah because then we we both have it in writing and, uh, so like in the additional terms of your offer sheet, you could just put we want the seller to compensate for the buyers.
Speaker 2:Um, buyers brokerage free, or something like that yeah, that's the as you guys put in.
Speaker 1:I think it's the best way to do like that. Like when you agent submit offers, just put it right right in your offer. So your offer sheet would say your compensation as well, so seller could see it.
Speaker 2:Which is great about it now is that when we receive offers now, the seller can sign it also the offers that we receive right and uh, everything is going to be basically uh, given to the, to the seller, and if the numbers make sense, the seller will go with it, no matter if it's compensation or not. It's all numbers game. If you submit a strong offer and uh, you're um, you're wanting to get a commission of what? X percent? Right, if the numbers make sense, you're always going to get the deal, no matter what.
Speaker 1:I agree with you, angela 100%.
Speaker 2:That covers pretty much like the new roles that came into play. I think something that you know has been circling the news a lot is this whole P Diddy thing right.
Speaker 1:P.
Speaker 2:Diddy, and the reason why we bring it up is because he has a mansion that he's selling right for $61 million, and when we saw that, we're like wow.
Speaker 1:Where's this mansion at?
Speaker 2:I believe it's in.
Speaker 1:Los Angeles, I saw.
Speaker 2:Yes, in Los Angeles, some exact location, but I believe he's selling it for $61 million. Okay, and I think he bought it for like $34 million. $34 million, let me see it was. I believe it was 39 million, 39 million, and he's selling it for how much? He's selling it for 61. So a total profit of 32.
Speaker 1:What year he bought it, on what year?
Speaker 2:He bought it in 2014.
Speaker 1:Wow, so he got exactly 10 years with it, yeah, and now he's making. How much in profit 32 million, million. You hear that Literally he's getting almost 100% profit out of it.
Speaker 2:Yeah, that's amazing guys, that's incredible. We should buy it.
Speaker 1:Oh my God. I mean he's selling it at the right time, right? Oh, you know he's going to have a lot of legal fees.
Speaker 1:Oh yes, he's selling it at the right time, but the best example of it is that look how much you bought it for and look how much you're selling it for. Guys, right, and that's for all of us. You know everyone that owns real estate, everyone that creates their portfolio. You're always sitting on equity as the years go by. In real estate, it's really no losing market. Go shift could go down, but it's gonna go right back up. Guys, in real estate, I feel like it's more win to anything, right, but of course, in real estate it's a roller coaster. You know, like any other business, you got your ups and down right when you're doing your rentals right with your tenants, they got ups and down, but I'm gonna say it's more beneficial than anything and that's just like one example of appreciation going crazy up right that's crazy yeah, like my friend, for example, who lived in the south bronze, his grandma bought a property back in the day for like around I want to say like 300 something thousand, and now it's worth over 829,000.
Speaker 1:Appreciation is always wins on it.
Speaker 2:Yeah.
Speaker 1:Instead of renting. It's always appreciation and owning a property so much beneficial. But wow, emily, puff Daddy is Puff Daddy, sean Daddy I don't even know what name he has.
Speaker 2:He has like 10 names, sean Combs or something, sean Combs, you know all those things, but that has been going Through my social media All the time so many articles About new things coming in and also that thing Correlated with Eric Adams.
Speaker 1:Another thing with the mayor. But I would say, like, I'll be honest here, I'm so against doing wrong. Justice for those people, if it's true and they prove him guilty because he's not guilty yet right, they got to prove him. But I'm so strong on doing the right things, I'm so strong on karma. Right, you always got to do the right thing. That's right. In our business. I always tell my team and myself we always got to do right for our clients. It's going to come right back.
Speaker 1:I know he was probably the richest guy, he's one of the richest guys and he's out there. But when you're doing wrong, you're consequencing. Regardless of who you are, you're going to pay for your consequence. I hope that whatever is happening with him, you know it's for the right, you know and for the community, and you know and I appreciate the justice that's protecting the community. If all this um stations is true, right, we don't know right, this is a case that's going to go for a while. I am interested to see how it ends. Right, because you can definitely see that he felt like he was on top of the world.
Speaker 2:Right.
Speaker 1:Right and his actions speak for itself. You know, growing up I heard a lot of stories about it, but you know now we see it going into federal justice system, so it's going to get interesting. I think that's going to be a long ride for him. Right, because you know he's going to come in with his legal team very strongly and I know the feds are going to come in with their legal, which we leave it to them to handle. Right, right, always do the right thing. Guys. Try your best to always do the right. They never do wrong to others. What you want and like to be done to yourself. Always do right to others, and that's one thing that we're strong about is always doing right to others because we want the right. We want to always do the right for others, yeah absolutely, absolutely.
Speaker 2:I mean with all of our clients. I think we put doing right by them at the priority, also because we have fiduciary duty to hold their best interest at hand, and when you do such a great job, we get a lot of referrals because of that.
Speaker 1:Yeah, we get a lot of referrals. I mean, business right now is booming. It's all referrals. Pretty much, to be honest with you guys, it's mostly referrals. We have a great team of guys.
Speaker 1:Also, heidi is our mortgage broker, which is my wife. Heidi she's with Gold Rascal. She's available. She answers any questions you may have or you want to prepare yourself within a year to buy a house. She also goes and helps them out, guiding to get the pre-approval and get qualified the best way. Even if you're preparing yourself, we're there for you.
Speaker 1:Any questions you might have, reach out to Heidi for the mortgages. We are the realtors, the real estate broker. I'm the real estate broker, we're realtors here. Any questions you guys may have, we're here for you. Please don't hesitate. I know a lot of people are nervous or scared to reach out to us. Reach out to us. I promise you we're going to give you guys great information and yeah, we also guys. Very soon we're going to start preparing buyers on seminars once a month at our office. We're going to be doing an invitation to everyone to come out, get some information. We'll have food, drinks. We'll make it very fun for you guys. But more than anything, we want to get the message out there is buy a house, guys. It's so much beneficial to it. I won't stop saying it because it's more beneficial than anything. Right, instead of going buying a car of the year, instead of filling up your credit cards, buy a house for your family. Create those dreams for your family. That's more important than anything right.
Speaker 2:I mean, yeah, I have no nothing else to add to that. I think, um, yeah, just uh, take advantage of the opportunities you're given.
Speaker 1:And one last thing I just want to share with you. Heidi had mentioned to me, to us, that they are offering a lot of grants for first time. Buyer, reach out to Heidi. There's tons of grants she's offering and yet we're here for you guys. I just want to end it with this. This is Sudo with Buys Podcast. We're here for you guys Like, subscribe, ask questions, and we're here for you guys. All right, thank you guys.
Speaker 2:Bye guys.