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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
Episode 29:Real Estate Revelations: The Boat in the Backyard
Ever had a home inspection reveal something utterly unexpected? On this eye-opening episode, Chris shares his jaw-dropping discovery of an abandoned boat left in a backyard during a final walkthrough. This remarkable story highlights why these last-minute inspections are non-negotiable when purchasing property—revealing how this unusual situation required a $10,000 escrow hold until the sellers properly removed their nautical souvenir.
Beyond boat tales, we dive deep into savvy homebuying strategies that could dramatically increase your purchasing power. Discover how multi-family properties and Accessory Dwelling Units (ADUs) can help you qualify for substantially larger mortgages by leveraging potential rental income. We break down exactly how lenders view these additional income streams and why this approach might be your ticket to affording more home than you thought possible.
With current market conditions in mind, we tackle the burning question many potential buyers are facing: buy now at higher rates or wait for rates to drop? Our candid analysis reveals why waiting might actually put you at a disadvantage when competition surges as rates decline. Learn why buying with less competition now and refinancing later could be your winning strategy in today's evolving real estate landscape.
From government rental assistance programs to refinancing guidelines, we provide actionable insights for navigating the current market with confidence. Whether you're a first-time homebuyer or looking to expand your real estate portfolio, this episode delivers practical wisdom to help you make informed decisions. Have questions about financing? Reach out to our preferred lender Heidi—her contact information is in the episode description. Subscribe now for more real estate strategies that could save you thousands!
Welcome everyone to another episode of Suit Up With Bias. My name is Angelo Bias and my co-host today is going to be Chris. Chris, welcome back, man. How are you Doing good man About yourself? Pretty good, pretty good. You had a crazy story that happened just recently, right, oh yeah. Yeah, do you mind explaining it? So?
Speaker 1:this story was like a couple of weeks ago. So basically, a walkthrough is basically the final time you're going to see the home before you close, right? So the day of closing, we was going to do a walkthrough, right, we was going to do a walkthrough right. Now. Me, as an agent, I always like to be 15 to 30 minutes early with the walkthrough to see everything looks right. The first thing was that this door it was not opening at all.
Speaker 1:What I had to do is I had to go back to my car right and get some tools to yank the door. You know, thank God no one called the cops on me, but I did have permission to do the walkthrough right.
Speaker 1:So that was one thing that was going wrong doing the walkthrough. Now, when I was doing the walkthrough myself right, I seen that they left a lot of stuff in the house, a lot of junk, and the one thing is I took pictures of it right and from there I was sending to the attorneys so they could review it and see, uh, basically, how much we have to put down on escrow, which I did give them like an estimate of ten thousand and once I was taking pictures of the inside home, the backyard, backyard guess what they left? What did they leave? They left a big boat in the backyard.
Speaker 1:Never seen this in my realistic career at all. Once I saw the boat, I was like what they left? A boat. How are the clients going to see this? So one thing I had to do is take a picture of the boat and send it to the attorneys so they could work on getting escrow from the seller. And when they saw it the clients they're like what A boat? Can we keep the boat? That was one thing they were letting me know Can they keep the boat? But in this case it wasn't their boat and we had to do the right thing, which is getting escrow from the seller's side.
Speaker 2:So basically, for the people that don't know what an escrow account is, can you explain it to them a little bit?
Speaker 1:Yeah, so escrow is basically you're going to able to close on a home, but they're going to hold the seller's fund on the attorney's account. Basically, in this case it was around $10,000 that they're holding Right now. The sellers won't get the funds till they do the job correctly, meaning remove the boat and remove their stuff in the house.
Speaker 2:Got you. So basically the sellers don't get the full amount that they would have gotten. The sale Part of it is transferred to an account the attorney's called an escrow account to be withhold until they fix the problems that are on the premise. Got you All right, Perfect. And how was the boat? Was it in good condition back in the?
Speaker 1:I don't think that boat was working.
Speaker 2:Why do?
Speaker 1:you say that the way it looks. It looked very dusty and it looked like it has never been in the water for four or five years or more.
Speaker 2:Jesus, and that was never there before.
Speaker 1:It was there when I showed the clients, but we did request them to clean out the home prior to closing and in this case, they didn't yeah. Well, the good thing is they already did the job and removed the boat, so that's a good thing.
Speaker 2:But that's why it's so important to do a final walkthrough right For things just like that Correct, and it has to be either on the day of closing or the day prior to closing.
Speaker 1:It's very important. Yeah, You'd be surprised when a home, especially if it's vacant anything can happen.
Speaker 2:Yeah, absolutely, especially if it's prone to flooding and there's a severe rainstorm that came. Maybe you'll even find out if there's flooding in, uh, in the basement or things like that.
Speaker 1:yeah, and from there. If anything does pop up in the walkthrough, say there's a hole that we never saw or there's a pipe leak from there, uh, we will definitely work on getting credit on, basically, you know, the best for you, yeah, no For the clients.
Speaker 2:Absolutely. I mean, we've heard a bunch of crazy stories of what's happening in like closings sometimes, and at closings, the final walkthroughs and whatnot, and the list goes on and on.
Speaker 1:Oh yeah, especially if it's vacant, you got to guff a bit.
Speaker 2:There's no squatters living there. Yeah, that's very tricky, but thankfully I think New York amended that squatters squatters live in there. Yeah, that's, that's very tricky, but thankfully I think new york amended that squatters rights right, so now it's a little bit more easier to take them out all right, yeah, so you don't need to worry too much about that, but that is kind of like scary to have people living in the house that are not supposed to be there.
Speaker 1:Yeah, last day was pretty nuts with the squatters oh yeah, man and um.
Speaker 2:There was another thing I wanted to talk to you about because I think we we've been getting this question a lot and I think people don't know that sometimes they qualify for more if they're looking at some multi-families, correct? Adus?
Speaker 1:yeah, so if you're buying a single family that has an adu right just basically accessory apartment you can add that income and basically qualify for higher the amount you are. We just got to know if that has that permit.
Speaker 2:that call accessory apartment, accessory dwelling unit, yeah, something like that, adu yeah. And then if they do have that permit and stuff and you're all good to go, then you can use that basement as a source of income for the mortgage to get approved higher correct.
Speaker 1:This is just for strictly single families now if you are looking for more to multi-families, like two to four, then that's something different. Now, um, a lender could definitely add basically the rental income on your loan, so you qualify higher yeah, no, absolutely.
Speaker 2:and um, depending on how much rent you can receive from that apartment, from, like the, the, the unit that you're trying to rent out, you'll be qualified for more or less depending on that. So maybe sometimes it has a one over three and you might tell the bank, hey, I'm going to be living on the one unit, I want to rent out the three units so you can get the most out of that mortgage.
Speaker 1:Correct, and it's also helping your mortgage Exactly Right and in the future this could be one of your portfolios in the real estate market and you could keep buying and renting your buildings Absolutely. I mean if you could reduce that mortgage renting, you know, your buildings.
Speaker 2:Absolutely. I mean, if you could reduce that mortgage as much as you can, right, and then have someone else pay some of it off, then by the time that you know you're ready to move on to another property, you're going to have a lot of equity in that home.
Speaker 1:Oh, for sure.
Speaker 2:Yeah, because you're going to be paying part of it and then your tenants are going to be paying part of it. Maybe you paying part of it and then your tenants are going to be paying part of it, maybe you're only paying, uh, like less than half of the mortgage. Right then, all of that extra payment being made to the mortgage, it's just basically being saved up in your equity and the price is going up as well, so every, every year, the market is going now, yeah, and a good thing is right.
Speaker 1:You could add that as your income, the rental incomes, and you're going to qualify even for more higher if you're planning to buy, maybe in the future, a single family.
Speaker 2:Yeah, you know exactly and though the possibilities are just unless it's, I think for most people we do suggest, like, if you're going to buy a home right and you're looking at a home, maybe look at a multi-family just because, like you could get that rental income and it can help you. It might cost you, sometimes even a little bit more than single families, but it's worth it in the long term because you have more flexibility with that home. As long as you're willing to take on tenants, you do have that flexibility of in the future, like now you're going to have two units that you can rent out and whatnot, if you want to move on to another one For investment properties. How much is your minimum down payment for those?
Speaker 1:Usually it's 20%. 20%, yeah, if it is an investment home. But if you're living there, then it's 3.5% or 5% Gotcha. But for numbers wise, like mortgage, it's best to speak to your lender. Yeah, to see how much is your monthly mortgage and if you're comfortable paying that amount. Yeah, but the good thing is the the tenant is paying partial of your mortgage.
Speaker 2:Yeah, especially if they're in a program. A program pays quite a lot from what I've seen in the government websites correct and it's guaranteed money. I know some people have a stigma against um, program vouchers and stuff but honestly, from our experience, they're just like any other, any other renter. The benefit is that you just have someone who will automatically pay you every month. The government will automatically pay you. It might be delayed a little bit sometimes, but they are going to pay you, yeah, and yeah, I mean if you have any questions having to do with financing, we have a preferred lender that we use. Yeah, her name is hitakil. If you want any more information about her, we can always put it down in the description below so you could give her a call if you have any financing questions.
Speaker 1:She is amazing and will help you throughout the whole process yeah, and just know that you could always refi you know, even though the interest is, you know, going up a bit right, just know, down the line you could always refi right once it reaches to you know, four or five percent right, because if you want to keep waiting right, just know, if the interest does go lower, there's gonna be a lot of buyers out there. Oh yeah, a lot of competition is gonna start competitions out there. Yeah, it's best to start early then and keep waiting, because everyone is.
Speaker 2:The mindset is like let's keep waiting until rates go lower because then that'll be a better opportunity. It is, in a way, right, but the problem is that everyone has that mentality and everyone's waiting for the rates to go down so they can all jump into the market.
Speaker 1:Yeah, and also the rates to market is going to keep going higher.
Speaker 2:Yeah.
Speaker 1:So it's best to Right.
Speaker 2:And if you buy now less competition, of course, right. And also, even though you're going to be paying a little bit more, when rates eventually go down, because I'm pretty sure they're going to go down in the future, once they go down by 2% or more, that's a good time to refinance. Usually that's when it makes sense to refinance. But again, heidi can definitely answer any and all questions regarding that, because I know one of the most important things when it comes to buying a home. It's like can we afford it? And if we can afford it, how can we make it maybe cheaper in the future? And that's where refinancing comes in. If you have any questions regarding that, definitely contact Heidi. She can help you out with any and all those questions. And I think, having said that, there's one thing that came to my mind right now that's been bothering me, and that's the Knicks game.
Speaker 1:Oh, I don't know what happened with the Knicks. They're supposed to win the Pacers, but they lost.
Speaker 2:They lost man. That's crazy, but can you imagine, if they won, how crazy the city would have gotten?
Speaker 1:They would have to call the army the National Guard.
Speaker 2:You seen the video right? Oh yeah.
Speaker 1:I saw one video that they were boxing a Pacers fan and a Knicks fan. It's nuts Out there. It's nuts. It's crazy. A lot of people have Knicks fan, it's not out there.
Speaker 2:It's not. It's crazy. A lot of people have been saying that it's going to become Gotham. If they would have won, yeah.
Speaker 1:Knicks fans are a different story.
Speaker 2:They're a different breed for sure, just like the Yankees fans, not as much as Knicks fans yeah, knicks fans are kind of crazy but yeah they lost.
Speaker 1:Let's see what happens in the future where we're Cat and Brunson.
Speaker 2:Maybe Giannis joins.
Speaker 1:It'd be difficult.
Speaker 2:It'd be difficult.
Speaker 1:What picks are they going to give them?
Speaker 2:They're going to give it to Miguel, you could maybe trade Cat for Giannis, get some more persons there like trade Cat trade. You really think milwaukee wants cat. Well, at milwaukee, if yannis requests a trade, right then milwaukee. They're kind of, like, you know, in debt to yannis because he did win a championship for them, so it's like you know you should treat them good if he wants to go to the Knicks, you know, and if they trade Kat along with someone else and maybe some I don't even know if they have picks. I don't think they have picks, but if they can make a package together and keep the core team and stuff, giannis replaces the power forward position and he's a way better defender than Kat, a way better defender and he'll drive to the basket and stuff. I think he just fits. Honestly he fits.
Speaker 1:but it'll be tough. We got to see what players are going to trade to Milwaukee and see if it makes sense for both parties.
Speaker 2:Yeah, let's see, man, because that could happen. Maybe you even throw in Mikkel Bridges in there, even though you basically sacrificed all your first round picks for Mikkel Bridges.
Speaker 1:Too much picks, I'm sorry.
Speaker 2:So maybe you put Kat and Mikkel Bridges for Giannis.
Speaker 1:That's not about trade, I don't think so, but yeah, who do you think is going to win the?
Speaker 2:finals. I think heavy favorites is gonna be okc and I just think that they have defenders everywhere. Right, pacers have defenders here and there, but I think okc can just defend it everywhere and that's. I feel like defense wins, championships and okc. When I saw that they held the Wolves to nine points in one quarter, that was crazy to me. I was like you can hold off the Wolves, right. That's just insane. I feel like if OKC loses that's going to be such an upset, an insane upset. But if OKC wins, I just hope it's not a stomp where it's 4-0 and Pacers don't even have a chance.
Speaker 1:My prediction I think OKC winning, maybe in six, in six, maybe pushing to seven yeah.
Speaker 2:You think they could push it to seven the Pacers?
Speaker 1:Yeah, the way they were playing against the Knicks they were playing a lot of defense, especially game six.
Speaker 2:Yeah.
Speaker 1:Especially with Brunson. That guy wouldn't even let him breathe, right Just on top of him.
Speaker 2:Oh, nembhard. Yeah, Two of them. First it was Neesmith and then it was Nembhard. Yo, brunson was getting frustrated, like so frustrated he was like I'm done with it, yeah, so I think they could push it to seven, but OKC is definitely going to win the series. For sure, you should put money on it.
Speaker 1:No, but OKC is a very young team, I think younger than the Pacers.
Speaker 2:They might be younger than the Pacers. Yeah, because, shea, how old is he? Like 25. 25? Yeah, he's so young.
Speaker 1:The whole team is young.
Speaker 2:Yeah, it's nice that we're going to get a new champion this year, like from previous years, although Denver did win it Two years ago. Two years ago In.
Speaker 1:Milwaukee. Yeah, Boston won last year we don't really talk about Boston.
Speaker 2:Boston's won too many. Yeah, I think in like the 60s or 70s they won like nine out of that transit, out of that 10 years. Yeah, they bought they, they won nine, and then the uh, the sixers won one. It was like in a 10-year span. It was crazy, uh, so never talk about that. So it's in that sense. Yeah, it's gonna be amazing. Just hope it's not a stomp. And I, I, I remember that you told me that you were watching the Yankees game also.
Speaker 1:Oh yes that Saturday it was going wrong. But first I was watching the Yankees game that Saturday because they were facing the Dodgers yeah and it was so bad. You want to guess what was the scoreboard. What was the scoreboard? 18 to 2.
Speaker 2:Oh, my God. You got a murder. Basically, jesus, is there any player that stood out on the other team that just killed you guys?
Speaker 1:The whole team, the whole team. They were doing home runs hits. There was no one that did bad at all.
Speaker 2:At what point in that Yankees game did you feel like it was over?
Speaker 1:Oh, once the Knicks come up at 8 o'clock I change the channel. That's when it was over. We were losing, say, about six, seven runs. Oh, my goodness. Yeah, Saturday was pretty bad and the Knicks lost, so that even made it worse yeah, and then I heard your order guide messed up a little bit. Oh yeah, on top of that too, wing stop.
Speaker 2:They forgot my chicken sandwich. Um, and it happens, they're so busy. That's why, on game nights like that, especially when you have yankees and the knicks playing, oh my God, everyone is ordering Wingstop and I feel like that's the fastest growing chain right now. Wingstop, the fastest growing fast food right now, because everyone loves Wingstop.
Speaker 1:Pretty pretty good.
Speaker 2:The fries somewhat okay, but the wings pretty pretty good, yeah, absolutely, but expensive, oh yeah, oh, very expensive it's. Oh yeah, oh very expensive it's worth it, though it's worth it. Yeah, what's your favorite flavors, man? Uh, it's the lemon pepper. Lemon pepper. No other ones, not really.
Speaker 1:Oh, mine's mango habanero I'll never try it, just try it yeah, you should try mango habanero.
Speaker 2:it's so nice. But having said that, I think that's the end of the episode. Do you have anything to say to the audience? No, no, I got you Well, guys. Thank you so much for tuning in to this week's episode of Suit Up With Bias. Please feel free to have any questions put into the comments below and we'll try to respond to them as fast as possible. Thank you, guys. So much, bye, bye, guys.