Ep 21: You Asked. We Answered. The Top Questions We've Gotten From Our Listeners

[00:00:00] Speaker A: La. You know, we're seeing 15 months to 24 months to evict a tenant with major, major legal fees because of how difficult it is. We joke that HOA companies just have a general phone line that will answer, put you on hold, and they hang up on you at 4pm every day. [00:00:16] Speaker B: That sounds lovely. I'd never do that, but that sounds great. [00:00:20] Speaker A: The pool was like, really big. Really, really big. But it was interesting because it had been out of commission for so long, the city Vector control actually filled it in with fish and algae. No mosquitoes would grow in there. [00:00:34] Speaker B: 49% of people under 30 years old are living with parents. I wonder where the floor is on that because, like, Sadie lives with me, but she's six. [00:00:42] Speaker A: Every time you refinance, that resets and you don't actually pay down your principal. You're just paying the bank a ton of interest. And that's one factor that most people don't talk about. [00:00:51] Speaker B: Welcome to all of you360 all things real estate Podcast. With your host, Daniel Gutierrez and Shannon Dempsey, we explore real estate from every angle, giving you insights, tools, and confidence to make smart decisions that support your future. It's time for a new perspective on property. Welcome to AllView360. [00:01:10] Speaker A: Good morning, Shannon. Are you ready for you asked, we answer all the questions that people keep asking us. [00:01:15] Speaker B: Yes. Good morning. I'm ready, as ready as I'll ever be. [00:01:18] Speaker A: So thank you to everyone for the questions that you're putting in the comments and messaging us directly. We love it and are super excited to answer them. [00:01:26] Speaker B: Do you ever go, like, when you're in a social setting and then you say that you're in the real estate world and then you just start getting hammered with questions? [00:01:34] Speaker A: I feel like I get hammered with questions all day, every day, all day, every day. [00:01:38] Speaker B: My hope with this is I could just be like, here's the link to this podcast. When you live my life, I mean, [00:01:43] Speaker A: that's ultimately the goal of. Part of the goal of why we're doing this. But yeah, absolutely. I get. I feel like every day is questions. I get total. [00:01:50] Speaker B: I wasn't sure what we were going to get, and I'm surprised that a lot of them are truly like those questions that pop up every day. [00:01:58] Speaker A: Yeah. Or our conversation yesterday in regards to the stats for the podcast and realizing how many people actually listen and how surprised and I guess, excited we are. [00:02:09] Speaker B: I know people are actually listening more than our moms. I don't even think my mom listens anymore. Yes, it's very Exciting. And I'm very excited with the results of everything. Cool. [00:02:20] Speaker A: So these are the questions that we're getting. People are reaching out to us asking these questions. So we're super excited to answer them and just be able to provide this insight for the industry, our clients, our friends, the viewers. Listeners. [00:02:34] Speaker B: I'm curious to see if we have similar answers to them too. [00:02:38] Speaker A: Probably not. [00:02:39] Speaker B: Probably not. And I'm ready to fight today. [00:02:41] Speaker A: Okay, cool. First question, is now actually a good time to buy a home or should I wait? I feel like that's an everyday question. [00:02:49] Speaker B: Yeah, my answer is the same always. No matter the market. It's depends on your scenario that I think for some people it is a great time to buy. And I think for other people possibly wait. It depends on what factors are going into it. Do you have to sell a house to buy? Do you. Are you renting and you need to buy? Depending on what that person's life looks like and what their goals are, is the answer. Right. So it's never, I guess statistically it's a buyer's market. Actually, we're transitioning more into a balanced market. So big picture, not a bad time to buy. [00:03:18] Speaker A: Yeah. Depending on where you are. But yeah, my, my answer is always depending on your situation. I remember and I think I mentioned this in the past. In 2019, we had a lot of people selling because they thought it was going to be the next Great Recession and huge, you know, dips in asset prices and, you know, just a complete correction. And they sold all only to see the value of their homes skyrocket and not be able to afford to get back into the market or even the home that they were previously in. So you can never time the market. You never know when it's perfect, but, you know, making sure that it aligns with what you need, what you're comfortable with, what you could afford. The marry the home, date the rate is the stupidest thing ever. [00:04:03] Speaker B: That's something we never say. [00:04:05] Speaker A: Yeah, it got a lot of people in trouble. And I think I remember seeing the agents who were saying that. I'm like, oh, man, that is not good advice. [00:04:13] Speaker B: Cringe every time. Time you. Not good advice. [00:04:15] Speaker A: Well, now you're what, five years late and you're still dating the rate, right? [00:04:19] Speaker B: Yeah. And you hate the rate. And you're stuck with the rate. You moved in with it. Yeah. You just can't get rid of it. I think right now there are buyers getting, I mean, the prices. Some are getting really good deals, but it's more the terms for Buyers right now that I'm seeing a lot of credits. I'm seeing more repairs being done during transactions than ever before. So in general I think there are, there is a lot of negotiating power for buyers right now. That being said, don't take this information and go ask for a hundred thousand dollars for nothing because you think that because you're a buyer you can get, you know, something on clearance. It's a fine line. [00:04:56] Speaker A: Most sellers aren't desperate. It's not a situation where people are having to sell. The economy I think is still stable and even in some areas prices are still slightly ticking up, transactions are increasing, but it's not as great as it once was at the end of the day. Like it's dependent upon your individual situation, what you need, what you don't. Interest rate are still high. We hope that they'll drop eventually. But even this last FOMC meeting there's some indication that rates will go up. There's three Fed governors who dissented against not increasing the rates. So I think it's fair and reasonable to expect that rates will probably go up at some point this year unless there's a major shift in the economy in inflation or in, in the labor market. But if you need to buy, you could afford it. This is a long term home. The short interest rates I think are less important, but you don't want to put yourself in a bad position thinking that you're only going to need to pay these rates on a short term basis and get in trouble later. [00:05:58] Speaker B: And everyone, I, not everyone, a good amount of buyers and people in general are hyper focused on the rate and waiting for that rate to go down. The reality is that rate hasn't fluctuate, fluctuated that much. I don't think it's going to go down. They pretty much said that, but prices are not. I think the overall prediction from the. Was it a seminar that I watched yesterday and it was tons of graphs, tons of stats, but that the market by the end of the year will actually be at 0.0. Prices will be up almost 1% by the end of the year. Whether that's true or not, that was just his prediction. But the takeaway from that is while you're waiting for this rate to go down, prices aren't going down with it. So figure out what you can do, be comfortable with it, get into the [00:06:41] Speaker A: market and then for my multifamily listeners and clients, rents are stagnant. There's no way around it. Rents are stagnant. Yeah. Some markets have actually gone Down San Diego, they've been stagnant to like slightly up in some submarkets. Orange county is slightly, slightly up for the year. LA is down, Riverside county is down. [00:07:04] Speaker B: Nationwide, they're down. [00:07:06] Speaker A: Nationwide, they are down. Yeah, exactly. Cost of maintenance is up, insurance is up, everything is up. So on a cash flow basis it's kind of getting worse. If your rents aren't going up and all expenses are increasing, you're in a bad position. Likewise with interest rates. So not a wonderful time to be an investor in multifamily or even some commercial. Unless you could find a really rockstar deal that has has to meet on the bone or you could use a major value add to increase the cash flow. [00:07:40] Speaker B: So that leads into the next question. Is now a good time to buy a rental property? [00:07:45] Speaker A: And yeah, exactly what I said, whether it's single family, multifamily. One of the crazy things on single family is they trade at such a higher rate than the multifamily. Multifamily trades on cash flow where single family is just what someone's willing to pay. Like Newport Beach, Laguna beach is such a interesting market because you see the single family homes selling for 30, 40, 50, I think one is listed for like $112 million for a single family home in Laguna Beach. Wonderful property, amazing views. But for on like a multifamily commercial investment, industrial, retail, whatever it is, $112 million is going to buy you a lot of cash flow, a really big building. And on the flip side, you know, some rich person is buying, this is probably their vacation home. So it's super unique. Multifamily should still trade on the fundamentals. Single family never does. You could buy, let's just say a $1 million single family home somewhere in California. Right now you're between interest, principal, taxes, insurance, you're probably close to 8,000amonth. That $1 million home is going to rent out for 4,500amonth. [00:08:56] Speaker B: Yeah, those cap rates are low. Yeah, I don't like it. So in general, zero new. Yeah, unless you find that unicorn or [00:09:05] Speaker A: if you inherit a property, you're moving out of yours to to buy another property. If you have a low basis, well maintained, you don't have to sell. This is also a great opportunity to get that cash flow and potentially wait till there's a better market to sell. [00:09:22] Speaker B: Yeah, so that question, there's a hundred follow up questions before there's an answer. [00:09:27] Speaker A: Exactly. [00:09:28] Speaker B: What about what are the good and bad cities to invest in and why? [00:09:32] Speaker A: Yeah, and we get that A lot. I feel like every few weeks, maybe every week there's new laws coming out from the state of California, from counties, from cities in regards to tenant landlord laws. And it's making it more and more difficult to be a landlord in California. So there's some obvious cities that I generally recommend our clients stay away from. Santa Ana and Orange County. The city of San Diego itself is becoming more difficult to be a landlord in, primarily on the multifamily side. The city of LA is really difficult. Unincorporated la, Santa Monica, Venice. There's just really, really strict rent control tenant landlord laws, L.A. you know, we're seeing 15 months to 24 months to evict a tenant with major, major legal fees because of how difficult it is and the city fund to pay for tenants to have free attorneys. I mean, those areas. And not to say that every situation is like that, but those areas are making it very difficult to be a landlord in. And it's like guilty till proven innocent for a lot of landlords where cities and counties are really taking away their rights is difficult. [00:10:44] Speaker B: Okay, I like this one. Someone asked if we could talk about the current misconceptions right now. I know a lot of agents in particular that are really passionate about this and lenders. What are the misconceptions of today's market? And for me, my answer is just centered around kind of the emotion that's in the market right now. There's a lot more lack of consumer confidence and headlines and the mix of what's happening and then social media and everything. I think there's a lot of emotion involved in it. What do you think the actual misconceptions are like? What are the top headlines versus what's actually happening? [00:11:16] Speaker A: I see one of the biggest misconceptions are still around commissions and how it works. There's a lot of uncertainty. There's no clarity. People hear all these rumors and what to expect from what I've seen also, every state is different and every region within states are different. Like I was chatting with a guy in Ohio and their new go to is that on the listing side they'll tell the sellers, hey, I'll take my fee is 3%. You're not going to have to pay a single dime to a buyer's agent and you're actually going to save money. And then on the buyer's agent side, the agents are saying, the, you know, seller's not paying any commission. I'm going to need you to pay my commission. And my commission is 3%. So net, net, it's Actually increasing the cost for buyers and sellers to transact where the that car or that NAR class action lawsuit was intended to decrease it. But across the board, I think the stats have shown that commission rates are actually going up. [00:12:16] Speaker B: I think the goal was to make it more transparent. But yeah, it's interesting how all of that has been playing out. I'm excited to see, like, what the overall stats are at the end of [00:12:24] Speaker A: the year and the impact it had in Southern California. If a seller's not offering commission, I mean, that's going to hugely negatively impact their ability to sell that property. [00:12:35] Speaker B: Yep. Seeing it in some scenarios. [00:12:37] Speaker A: Yeah, absolutely. [00:12:38] Speaker B: Okay. What about what's going to happen when interest rates drop? And we got a little taste of it because for a long time we were looking for that 5.8% to be the tipping point economically. We did drop below 6 March 5th and then shot right back up March 8th. Because of what was happening. [00:12:57] Speaker A: Yeah. Honestly, I don't know. The labor market is strong. You know, there's a war going on, which generally stimulates the economy. You want to call it a war? Whatever. I'm not trying to get political, but whatever that is, I just keep saying [00:13:10] Speaker B: what's happening because I don't know. [00:13:11] Speaker A: Yeah, exactly. So that's happening. I mean, on certain point, we have our own situation going on with Iran, but also too, we're selling billions of dollars of arms to Ukraine to fight their war against Russia. I mean, there's a lot of things happening, but the labor market's strong inflation is still ticking up, or the Fed's mandate is to focus on both of those. And both of those indicators are saying that they should be raising interest rates. If they continue, if those indicators continue to be strong in order to cool the economy and, you know, slow inflation. If that happens. Well, let's say interest rates do go down instead of going up. I think there's going to be some people going into the market and buying, but I don't think it's going to be a major shift because those people who've been on the sidelines for two, three years are going to realize that although interest rates are down, home prices are also up and they're not able to afford what they thought they were. If they've really been out of the market for a few years. [00:14:11] Speaker B: Yeah, the waiting might have priced them out of the market. [00:14:14] Speaker A: Yeah. One of the things I think that we will see and it's going to really think to be dependent upon how far rates do drop is that baby boomer market or that baby boomer class selling their large homes and transitioning into smaller homes as they naturally used to do as they entered later years of life and not having their, you know, large three, four, five, six bedroom homes that they used to raise their kids in. That transition hasn't happened because they're finding that they're going to have the same mortgage, mortgage payment on their massive home than they would on a tiny home because of interest rates. So as that drops, I think we could see that transition finally start to occur. And I think people call it like the silver wave. I've heard. [00:14:56] Speaker B: Yeah. Do you know what the stats are for baby boomers? So 62 to 80 is the baby boomers. What percentage of the market of buyers and sellers they make up right now? [00:15:07] Speaker A: It's super small, isn't it? [00:15:09] Speaker B: No, this. I was shocked. They make up 42% of the buyers and 55% of the sellers. Oh, wow. [00:15:16] Speaker A: Okay. [00:15:17] Speaker B: I learned that stat when we were talking about if social media has an impact on your real estate business right now. And the theory is that it doesn't, because that's not. I mean, it does, but not. There's a huge chunk of buyers that are not even on it. But yeah, I didn't realize how much of a percentage they make up of buyers and sellers right now. And they're impacted in a whole different way than the first time home buyer, the move up buyer. I also think if interest rates go down, there's going to be a lot of headlines around it because there's so many headlines around it in the particularly the residential world. I would imagine inventory is going to go up because there's buyers that are waiting to buy, but there's sellers that don't have to sell, but they're waiting for the right time. So we'll probably see an uptick. It's not. The floodgates aren't going to open. [00:15:59] Speaker A: Millennials are finally being able to afford some homes. Gen Z is, I think, going to be perpetual renters for the majority of their lives. Baby boomers also within that, within that cohort and those numbers, I think they're also the biggest demographic of investors in the market as well. [00:16:18] Speaker B: Who? [00:16:18] Speaker A: Baby boomers. [00:16:19] Speaker B: Baby boomers. Yeah. So this number keeps going up. I follow it because it's shocking to me. But it's gone up again since we last spoke about it. The average age of a first time home buyer reflected in 2026. [00:16:30] Speaker A: What is it, late 30s? [00:16:32] Speaker B: 41 now. Oh, geez, it was 40. Now it's 41, which is shocking. And we were talking about this before we recorded the percentage of Americans under 30 living at home with parents. 49%. 49% of people under 30 years old are living with parents. I wonder where the floor is on that because, like, Sadie lives with me, but she's six. [00:16:54] Speaker A: Yeah. [00:16:54] Speaker B: So I wonder if it. I'm assuming it would be like 18 to 30. [00:16:57] Speaker A: Yeah. We need to get Sadie her own place. Yeah. She needs to figure out her life. [00:17:03] Speaker B: She needs to figure it out. She needs to move out, get a job. [00:17:05] Speaker A: Yeah. [00:17:06] Speaker B: Oh, gosh. Okay. What about. Where do you think the market will be a year from now? [00:17:12] Speaker A: My initial guess, when I think about that, and it's 100 a guess, I think it's going to be very similar to how it is now. I don't think much is going to change. [00:17:19] Speaker B: I hope, Mike. It could go one way or the other. I truly feel that way that we have two paths and we're going to go extreme, down one or down the other. My hope is that there's no change or a positive change. But. Yeah, I don't see it. I like. I think we're. It is what it is. For a long time, barring a black [00:17:36] Speaker A: swan event that no one could predict, I don't foresee there being any major shifts up or down. I see a lot more of the same going forward. [00:17:44] Speaker B: Yeah. Just like plugging along. [00:17:46] Speaker A: Yeah. [00:17:47] Speaker B: Okay. What about. I got a lot of these. Are hoas worth it? [00:17:53] Speaker A: I have a hate, not love, hate relationship, just generally hate relationship with hoas. Sometimes they are. But the prices of hoas are going. Are so astronomical these days that they really impact the kind of properties that you could buy. At the end of the day, though, they do ensure that your communities. Well, not sure they should ensure that the communities are well maintained, that there's continuity that you don't have. That crazy neighbor who, you know, turns their front yard into a auto mechanic shop or leaves their trash cans out for two weeks at a time. So that's the component that I do like. But generally the HOA really only does whatever the board members are focused on in any given year. [00:18:34] Speaker B: Yeah. When I always dive into. Because you see all different costs of HOAs and it's a big part of the contingency period with a buyer. We're looking at the cost of the HOA and what you're getting for it. So sometimes they're higher, but you're getting, you know, a certain level of insurance and sometimes it's covering water. If you're in a condo or townhouse if you're in a community, like what are your amenities? Like how what did this money go towards and what is it going to go towards? How strong are they? Hoas can become a huge liability if they're not financially savvy and managing the money properly. And specifically with attached units, you get hit with a special assessment. The roof needs to be done and they don't have the money to do it. So hoas can definitely be worth it and they can definitely be detrimental to the overall value of the property and your bank account if, you know, depending on how they manage things. So I'm split on that. Sometimes they're worth it, sometimes they're not. And you need to do your due diligence when you're purchasing a property as to the stability of the HOA and what's actually happening behind the scenes, 100% [00:19:35] Speaker A: or even one of the big ones was last year when all those big apartment or big condo complexes had to redo all the balconies, the stairs, just massive, massive reinvestments. And so we know all of you has a large property management division. You wouldn't believe the number of inquiries we get from HOA president or board. More board members saying, I hate my HOA property management company. You know, you guys have great reviews. Could you do it? And being clear, we don't do any HOA management whatsoever, but the messages and stories we get are insane. And likewise, we also have to work with a lot of HOA management companies because of the properties we manage. And yeah, they're impossible to get a hold of. The only, it feels like the only times that they pick up their phone or email you back is when they're trying to find you for something or complain about something you've done. But if you need something from them, it's like it's game over. We joke the HOA companies just have a general phone line that will answer, put you on hold and they hang up on you at 4pm every day. [00:20:35] Speaker B: That sounds lovely. I'd never do that, but that sounds great. I think there's a big misconception because you have the HOA board. So those are residents typically that are managing the HOA board making decisions. Then you have the HOA property management company that needs to be a really solid company. They're executing what the board decides. The board usually meets once a month. You know, they're kind of, they're making the decisions and then the property, HOA Property Management Co. Is the one responsible for the communication, the execution, the follow through. So Sometimes you can have a really solid board and a really crappy management company. Whatever that management company does, though, the residents are blaming the board, so. Yeah, it's just, you need to have a solid. [00:21:18] Speaker A: Well, the board also keeps the management company. Yeah, some of them are really terrible. Like, I've. I've been in industry events where there are HOA managers and they brag about how much money they make on producing the documents during a sale. And at that point, you're kind of being held ransom. And some of them are charging, you know, thousand plus dollars just to produce HOA documents, which is insane. [00:21:41] Speaker B: Insane. And a good board will be aware of all of that. And what. What does it look like for the resident based on your systems and costs and execution and what's my resident's experience? And. Yeah, some are good, some are bad. [00:21:55] Speaker A: Yeah. But it still frustrates me when you get the letter from the hoa. It's like your screen is slightly out. You need to come to this hearing and explain to us why your screen is protruding in the corner. It's like, do you not have anything better to do? And, like, how much are you charging the association to have this hearing? It's so crazy. [00:22:14] Speaker B: Yeah. But what's impacting property value or not? Yeah, okay. HOAs make me fired up. Oh, here's one. Is it worth it to buy an investment property in California? We kind of already touched on that. [00:22:26] Speaker A: Yeah. You know, that's a difficult one with a lot of factors. At the end of the day, California is a super strong market. A lot of demand. There's a finite amount of land depending on where you're investing. So I think it still makes sense to invest in California. It has much lower risk and certain components of it. Strong appreciation, strong cash flow, but you have to buy the right deal. On the flip side of that, you know, is it smart to buy outside of California? It really depends and depends on where. I always caution people about going into those, like, dying cities because they could buy a house for $40,000. And there's a reason those homes are $40,000. [00:23:08] Speaker B: You get what you pay for. [00:23:10] Speaker A: You get what you pay for. And regardless of that home is 40,000 or 4 million, generally the repairs are the same, that the handyman is going to charge you the same labor. The air conditioner is going to cost the same price with, like, small fluctuations, but you get what you pay for. And you want to make sure that there's a strong basis for where you're buying. And that basis is based on economics, demographics, psychographics like what are the diversification of the employer mix, Universities, Why are people living there? What is, what's going on with like migration of population. All of those have to be solid regardless of where you are in order for it to make sense. I had a good longtime friend of mine who was buying a, a lot in Arkansas around the Tyson Chicken plant factory, whatever you want to call it. And for a little while Tyson Chicken was talking about closing that plant down and it was like employing the majority of the city and everyone else was just around there supporting that plant and everyone who, who worked there. So when they're talking about closing that plant down, I mean he was sweating blood bullets. [00:24:19] Speaker B: Yeah, they're talking about closing a town down essentially. [00:24:21] Speaker A: Yeah. What closed the town down? His real estate would have gone to zero. [00:24:24] Speaker B: What ended, what happened? [00:24:26] Speaker A: They kept it open. He did well, then he diversified. [00:24:29] Speaker B: He said, oh yeah, exactly, yes. [00:24:32] Speaker A: So you really have to understand where you're at. But at the end of the day, California is a super, super strong market and there are ebbs and flows. The pendulum swings. I think for the last while it's gone against landlords but you know, hopefully the pendulum will swing back to some realistic basis because it's just not feasible sustainable continue at this pace going forward. [00:24:52] Speaker B: Okay, I like this one. It's always been a question, but it's a more common question lately. Should I do a 30 year fixed loan or go for a shorter 7 to 10 year ARM, which I know you are passionate about. [00:25:04] Speaker A: That's also dependent on the situation too and also the spread between those, those options. If the spread is relatively tight, meaning the interest rate on a 7 year arm, 10 year arm and 30 year arm are the same, then lock it into the 30. But if you have, you know, let's say a point and a half, one to one and a half percent difference between a seven year fixed to then variable versus a 10 year fixed and variable or 30 year fixed, you know, you'd want to go with the lower, go with that seven or 10. And also too, depending on what you think, if you think five or seven to ten years from now, interest rate, interest rates will be lower, will benefit from that when the interest rates drop or you pay the lower amount for the lower interest rate on that seven or ten year arm and then refinance when interest rates drop, or I should say if interest rates drop in the future. So I think for me I generally go towards a 7 or 10 year arm because it provides a lower interest rate and more flexibility to do things going forward. But some people like the stability of knowing exactly what they're going to do for 30 years. You just really have to do the math and know what you're getting yourself into. One of the things I would caution people on is just thinking that it's easy and inexpensive to refinance whenever or all the time. Every time you refinance, you're going to pay fees on that refinance, which is one component. But what most people don't take in consideration is every time you refinance, your amortization schedule resets. Which means, and if you haven't looked at what an amortization schedule is, is how the banks determine how much of your payment goes towards principal versus goes towards interest every single month for the entire term alone. At the beginning of that loan. The amortization table will indicate and show that you are paying all of that payment is going towards interest because the banks want their money on the front end because they know people generally don't save for 30 years and they want their money on the front end to de risk your loan. So every time you refinance, that resets and you don't actually pay down your principal, you're just paying the bank a ton of interest. And that's one factor that most people don't talk about. [00:27:19] Speaker B: No. Or don't realize until they sign those loan documents. [00:27:22] Speaker A: I don't even think they realize after the fact because when they do their [00:27:26] Speaker B: taxes is when they realize when they get that statement of this is what you paid in interest this year and this is what you paid towards your [00:27:32] Speaker A: loan balance and they realize their loan balance didn't drop at all. [00:27:36] Speaker B: Yeah, you gotta pay attention. And I think if you're making a decision to go seven to ten year arm, it's something you have to follow, it's something you have to be savvy in. And it's. Don't get excited about the lower rate if you're not gonna pay attention through it all and be strategic throughout the process and know that there is a little bit of a risk factor there. [00:27:55] Speaker A: Yeah. Or some people could be crazy and just do like a 15 year loan and pay it off in 15 years. A lot higher payment and if you're gonna live there forever, you get it done. That's called called forced savings. So you're forcing yourself to put the majority or a higher percentage of your income towards your mortgage and pay that down. At the end of the day you have all the equity from your home because you essentially agreed and have no other option. But to do so at that point. [00:28:21] Speaker B: Okay, will there be more single family homes on the market now that big corporations are not allowed to buy single family homes? [00:28:29] Speaker A: I love this question. So this is a question that was, I think a really hot political topic and people who kind of follow what's going on ask this a within the real estate space, but the stats indicate that no, the, you know, the big greedy corporations that own these single family homes make up like a fraction of a percent of homes across the United States. So no, nothing is going to change when these large corporations, the KKRS, the BlackRock, are no longer allowed to buy single family homes. And if they're forced to sell them, there's going to be homes, a lot more homes on the market in those areas. But in general that, that's not anywhere close to the majority of the nation. And in those markets I think are going to really get hammered because there's going to be a large inflow of new inventory relative to the size of those markets. But generally those are the secondary and tertiary markets around the nation where the markets are softer to begin with. [00:29:31] Speaker B: What about should I buy new construction or existing construction and why? I'm seeing a lot of buyers in the market right now. When I get their request for repairs, I want to respond with, you should probably buy a new home. [00:29:44] Speaker A: I was about to say you should respond to this. I think, I feel like you have a stronger opinion. [00:29:47] Speaker B: It's. I do have a strong opinion. I, I mean we don't have a ton of new construction around us. I think just land and cost and everything. I think there's times, I mean, I've purchased new construction before. It depends on what your goals are. Like everything. But new construction, first phase is usually a good decision for a quicker appreciation if you time it properly. I think if it's something you plan on being in for a long time, new construction's not a bad gig. You can get a lot of incentives from developers right now. They're trying to push their inventory and there's no yes or no answer to this. New construction is not a bad deal. [00:30:23] Speaker A: When you're buying new construction, you know that you're getting a newer home. You don't have to worry about those issues. You're also generally paying a premium because it is a new home. [00:30:31] Speaker B: A lot of mellow roos now here. [00:30:33] Speaker A: Yeah, mellow roos. You don't get the, a lot of variability or flexibility in what you're getting. Like for. Personally, for me, I generally wouldn't buy new construction unless it's like a super like awesome builder. Because I would probably and if I had to, I was actually thinking about this other day, I'd probably buy the just the baseline home, like no upgrades whatsoever and on the nicest lot I could and then just tear it all out and really put in the improvements I wanted because I've seen the high like the upgrades the developers put in and how much they charge for garbage and it's insane. Yeah, like oh you want lights in your ceiling, that's going to be $10,000. Like oh you want whatever stainless steel Sink, that's another $5,000. Like it's insane. Just pay for the baseline. [00:31:20] Speaker B: And right now lumped into your loan you have the high interest rate or not high interest rate you have to have but you're paying interest on everything that you do. I think if you're a buyer that doesn't that is nervous about the maintenance or being a homeowner or if you want a certain type of community, the Mello Roos makes sense. I think there are certain buyers that new construction is definitely their best route. I also love the phase one. Like it depends on when you get into the new construction. [00:31:48] Speaker A: Yeah. So what you said is actually super interesting and clever when you're in so. So for a little bit of background, phase one is when developers are building they go into phases. So phase one is you are going to buy the first track of homes that they are done with. Which means you're going to have to put up a construction for the next few years. But every single phase thereafter they're increasing the prices and increasing the prices. So you get a lot of appreciation when that phases or when that development, that community is done, you're going to have a significant amount of appreciation built in relative to what they sold the last phase at. It's brilliant. And there's some areas like Irvine specifically and Irvine Co. What they doing the delta, the difference between phase one to their final phases, sometimes it's like hundreds of thousands of dollars and then when they're fully built out, I mean these look like five star hotel communities and the homes are selling for millions but there's a lot of opportunity there. If you could deal with the construction and are fine waiting a few years. [00:32:44] Speaker B: Yeah, there's buyers that that is their strategy. They buy phase one, they live in it until it's complete. Right time to sell and then they just go buy phase one somewhere else. Not a bad strategy. You just have to pay attention. [00:32:54] Speaker A: Yeah. [00:32:55] Speaker B: Okay, here's one and I want to add to this Question. So it's do you buy a home with a pool or build your own pool or no pool is what I want to add. I mean this is a hot topic. Pre Covid pools were not pulling in the value like genuinely when they were appraised the value that pools were being given or just the overall appeal of a pool to me from what I've experienced has completely shifted. Post Covid people did not care too much about a pool. It wasn't on everyone's list. And then as soon as everyone was, you know, stuck in their houses and having to enjoy life, the pool homes were flying off the shelf at a higher rate. And now they've kind of kept their excitement going forward. Specifically, they'll buy a house with a pool or build your own pool. What do you think of this? Because you literally bought a house with a pool, filled it in and did your own pool. [00:33:45] Speaker A: Well, I like what you said because I didn't thought about it that way. I look at it more so from the construction side. Building a pool is super, super expensive and most people aren't ready for that. And then in general, like pool contractors as an industry can be super sketchy. [00:34:01] Speaker B: So finding a good pool, everybody can be super sketchy. [00:34:04] Speaker A: True. Finding a good pool contractor who's going to do good work, stay on time, finish the project, it's going to cost a lot of money. Where let's say the value of a pool on the resale side adds, let's say just a hundred thousand dollars to rebuild that pool. You're probably two, $300,000 these days. [00:34:24] Speaker B: That is like consistently across the board that it used to be, you know, to put in a decent pool, a hundred grand and now it's 250. Also it's expensive to fill in a pool. I had a client that they. It wasn't, it was originally a model, so they had put the pool was more of a water feature type situation. So they're like, we never use it, we're going to sell our house. They looked into filling it. They're like, we can just make this, you know, a nice outdoor sitting area. The cost to resurface the entire thing was half the cost of what it was going to be to pull the permits and properly fill it in. So they resurfaced it just because it was so expensive to properly fill in a pool. [00:35:03] Speaker A: That's interesting. And then you get into issues with like access and things like that. Especially like zero lot line homes. When I filled in my pool. So I bought a 1964 vintage home and the family I bought it from were the original owners. Never sold it, never renovated, never upgraded it. And nice neighborhood. It was like top of the line back in the day. It was cool. It was like walking into a movie set. But everything was so old and the pool was like really big. Really, really big. But it was interesting because it had been out of commission for so long. The city Vector Control actually filled it in fish and algae so that no mosquitoes would grow in there, because as you can imagine, when it rained, even if you emptied it, when it rained, it filled back up, and so on and so forth. So we had to empty the pool. I called Vector Control to see if they would pick up the fish. They said no. So unfortunately, I think some of the fish probably made it back to the ocean. We drained it. [00:36:06] Speaker B: Murderer. [00:36:06] Speaker A: And, and from there. Yeah, we had a. I mean, it was multiple pieces of heavy equipment. Breaking the shell, filling it back in. We had to import a bunch of dirt, compact it. I think I got a pretty good deal. [00:36:21] Speaker B: And then you just dug it up again? [00:36:23] Speaker A: Well, I dug up a separate. A different area of the home, but remember, I tore down the whole home anyway and that was a component. I was building over where that pool was and had to do so many different phases just because of how difficult it is to permit new construction and go through that whole process. But this is for me, who I am in the space. I do have that experience. Randomly licensed contractor as well. It was a lot of work. Yeah, a lot. A lot of work. [00:36:48] Speaker B: So what's your like, most common quick answer? Buy a pool with a home or build your own pool? [00:36:54] Speaker A: Buy a pool with a home. [00:36:55] Speaker B: Oh, buy. [00:36:57] Speaker A: Buy a home with. [00:36:58] Speaker B: Buy a home with a pool. [00:37:00] Speaker A: Yeah. So buy a home with a pool if you can, or if you have the money, know how or desire, you could build a really awes, awesome pool to your liking. Just know it's going to cost a lot more than you ever anticipate and pay for quality. The cheapest guy on Instagram is. May get you into some trouble. [00:37:20] Speaker B: I mean, theme of the episode. [00:37:21] Speaker A: And then the tricky thing with the pool is once the pool's there, there's no going back and fixing it. You can't. Or unless you're going to dig up your entire yard, change the piping, the motors, the. The shell once it's there. So there's no way you're not changing it. But yeah, it's. It's a big investment that has to be done, right? [00:37:39] Speaker B: Yeah. Okay, what about we get a ton of Short term rental questions. So this is kind of a question that's a collection of a few questions. How can I buy a vacation home and rent it out to create cash flow to help with the mortgage. [00:37:53] Speaker A: And I love the idea. It's not always as easy as people think. If you're relying on the cash flow from the short term rental to afford the vacation home, that's risky. You could get into some serious trouble really, really quick. [00:38:09] Speaker B: And those laws change often. [00:38:11] Speaker A: Oh, yeah. If you are just using additional cash flow to help you float some of the expenses and you don't really need it, you're in a great place. And to your point, Shannon, I've known a lot of people, not as many as many now because of the laws of kind of are in place because Airbnb has been around for so long, but there's a lot of people who did that. And all of a sudden the city or the community changed their laws and their rules and no longer allowed rentals and then come up to zero and there's no way around it. [00:38:39] Speaker B: Yeah. There's a premium obviously on short term rentals. And then if you have to go to a long term rental because you can't short term rental, it's significantly less. [00:38:46] Speaker A: Yeah. And you can no longer use it because it is a long term rental. [00:38:50] Speaker B: I would never bank on that as being the baseline of your investment. I would build it out based on it being a long term rental. And then maybe you get lucky with the current laws and you can do short term rentals and this and that, but plan for that to not be the case space and make sure that you can float it. [00:39:04] Speaker A: Yeah. And if you are doing as a short term rental and you, you know, all that's working, know that it is a short term rental, it is no longer your baby. You're going to have people coming in and out, they're going to be partying, they're going to be damaging stuff. You're going to be paying your management company a lot of money to manage it because it is a beast of, of a project work. To be clear, we don't do any short term rentals. It's. [00:39:28] Speaker B: You're running a hotel. Yeah, it's. The expectations, customer service wise are next level. We need to do a whole episode on short term rentals. [00:39:36] Speaker A: I thought we were going to. [00:39:37] Speaker B: I know. It's on the list of things we need to do. That list is long. What about how much money do I need to actually start investing in real estate? [00:39:46] Speaker A: I get that question all the time. And I feel like I'm a dream killer. I think that's one of my nicknames. Wow. [00:39:52] Speaker B: I'm gonna start calling you that. [00:39:54] Speaker A: I mean, it depends on where you're at, but it's a lot of money. Like a lot, a lot of money. And I feel it gets really discouraging for a lot of people. You could go really anywhere in our market, especially now with where interest rates are. You need to put down enough money to where you're actually cash flowing on the rent. As we discussed the mortgages, interest rates are high, rents are low. It's not a great situation. You go to other areas. I was actually a few guys who do a lot of investing in Richmond, Virginia, and they say it's an awesome market because it's a lot of renters, military schools, universities with a lot of inventory and fairly low barrier sanctuary due to the, the home prices. But depending on where you're at, it's going to be a lot of money regardless and highly caution people against kind of living on the edge and being in a situation where, you know, an extended period of vacancy or an eviction or a major repair is going to put you into a bad financial situation because that's when you lose it all. [00:40:52] Speaker B: Yep. [00:40:53] Speaker A: So the number, just to put a concrete number, like for instance, if you wanted to invest in Orange County, I would say probably 500,000 in cash to be in a comfortable place. [00:41:06] Speaker B: Can we put a percentage on that for people that are not, because Orange county is a pricey county? Like 500,000. What would that equate to percentage wise, for the values that you're looking at? [00:41:16] Speaker A: Yeah. So you're putting down $300,000 for the down payment and then you have roughly another hundred thousand dollars for flow on repairs, renovations, closing costs, everything else, and then $100,000 in money just sitting there to, you know, cover vacancy, cover repairs, cover everything else. And that's me being very conservative. But, you know, better be conservative on a situation or a platform like this, then just give a blanket statement that could get people into trouble without having that opportunity to really talk through the situation. [00:41:54] Speaker B: My takeaway from that is down payment to make it worth it and then a good amount of capital after that. [00:42:00] Speaker A: Yeah. Because most of the time you're going to need to, you know, do some repairs. If not, you're going to pay a premium for the home. If it's turnkey ready to go, perfect, you're going to pay a premium and it's going to be even harder to cash flow. So buying a Nice home that you'll probably need to do some repairs on and then be able to go close on the property, go to market on the rental, get a good tenant, move them in, go through all that process, you know, just cost money. And I don't want to put people in a situation where they're running the risk of going negative and potentially having to do a fire sale or lose [00:42:34] Speaker B: a property, something bad. What if the average pro home price in my market is 400,000? How much cash would you. [00:42:41] Speaker A: And you probably get away with? A hundred thousand. [00:42:43] Speaker B: A hundred thousand? [00:42:44] Speaker A: Yeah. Yeah. [00:42:45] Speaker B: Okay. Okay. [00:42:45] Speaker A: And you could go a lot lower. It's just that's not my risk profile. That's not. I don't want to worry about sleeping at night because I'm on the ragged edge of bankruptcy because of the real estate investments I purchased. It's not a good position to be in. [00:42:58] Speaker B: Not healthy. Mentally, physically not good. Yeah. How about is it better? Oh, I love this one. Is it better to buy your primary residence first or your investment property first? [00:43:10] Speaker A: So I think that depends on who you are and what, what lifestyle life you are. [00:43:16] Speaker B: Did you know you were an investor before primary, right? Yeah. Well, you were a house hacker. [00:43:22] Speaker A: Well, no, I was an investor before I was primary because I was investing in Vegas before I ever owned a home in Orange County. But like, if you're married with kids, I think that's a different situation. What your spouse wants, what the opportunities are. I don't think that's a clear answer. I would say about that. I, I would say if you can invest before you're buying your own property, absolutely, you're gonn yourself up for the future. For our young viewers out there, if there are any, there's an awesome book called the Defining Decade and it's all about how what you do in your 20s sets you up for the rest of your life. And it talks a lot about that. So yeah, if you're in early and you can start investing, creating that, that cash flow, that appreciation, learning the ropes before you go and drop all of your money on your own home. Or if you could do a house hack where you buy your own home and then rent out some rooms, that's going to set you up for the future far better than, than just buying an awesome home that you live in by yourself and are house poor or just not generating a return on it. [00:44:25] Speaker B: And I think some, like, even if it's not your first, primary, first investment, like for our situation, for my husband and I, we bought an investment property that was Nicer and larger than the current. The home that we were living in at that time. And that was a decision. Right. Like we can buy a bigger, better home that's more long term for us or we can stay in this one. It was comfortable. Purchase our investment property. Even though we would have rather moved into that and then down the road buy the home that's the, the longer term size and location and all of that good stuff. I think it's all just timing. Like, what's the best decision for you with where you're at in life? What you can afford. Yeah. We couldn't have house hacked. [00:45:06] Speaker A: Another funny thing I see, and it's like so much more prevalent in our current society is you see the guys that drive like G Wagons, Ferraris or Lamborghinis and, and you know, they're out at all the nicest restaurants spending all the money and they live in like a tiny apartment. [00:45:21] Speaker B: A tiny apartment. But I, I mean, I know there's one guy in particular that I'm thinking of. Like, I know he rents a room in an apartment with roommates, but he has a ton of investment properties, so that's good. Yeah, yeah. [00:45:32] Speaker A: The one I'm thinking of rents a room in an apartment and drives a Ferrari and is at the clubs every single night. [00:45:38] Speaker B: Yeah. But I'm like, you wouldn't. And I have such respect for that. Right. Cause you're not, not so much the Ferrari, but the, the financial decisions that you're making now, sacrificing kind of your lifestyle and your day to day, I think is brilliant. Because that guy's going to go probably from sharing a apartment with someone to some amazing house that he finally pulled the trigger on. Because he set himself up over, you know, a 10, 15 year period to do it that way. Yeah. Long term goals, short term sacrifices. [00:46:07] Speaker A: Yeah. [00:46:08] Speaker B: What's the best real estate investment you've ever seen someone make? [00:46:14] Speaker A: So this is a bit of a weird story. The. I had a professor in grad school who bought a very large senior living community. So bought this very large senior living community, essentially lobbied local politicians to increase the Section 8 voucher payments for that community, was able to like triple the income over the course of 12 months. Sold it for like thousands of percent ROI over the course of 18 months. [00:46:49] Speaker B: Like that's a life changer. [00:46:50] Speaker A: Yeah, life changer. I mean it was. I think he paid like $30 million for the bill for the property and then sold it for way more than that. So it was already a very unique situation, but a very clever way of going about it. Mind you, he did no work other than lobbying local politicians to pressure HUD to increase what their Section 8 vouchers would pay, because the majority of the tenants within that senior community were on section 8. [00:47:18] Speaker B: Was that his plan from the beginning or was that something that unfolded? [00:47:22] Speaker A: No, it was. That was the plan from the beginning. [00:47:25] Speaker B: Okay. You can't. [00:47:26] Speaker A: Yeah, like, wild, right? Something so unique. But when he explained it, I'm like, this is brilliant. You. You literally did nothing besides convince the government just to pay more money on Section eight. [00:47:36] Speaker B: I like that. What about. What's the worst investment you've seen someone make? [00:47:40] Speaker A: Oh, God, A lot. A lot of. [00:47:43] Speaker B: A lot of them. [00:47:44] Speaker A: Yeah. [00:47:45] Speaker B: What's the common theme? Like, if you're thinking of them all, what's the common theme? Because mine would be, like, not wealth researched or thought through. [00:47:52] Speaker A: So a difficult one that we run into a lot, especially with our property management division. And it's probably a flack for saying it, but realtors who convince their clients that the home is going to rent out for a lot more than it actually will. So they purchase the home, they close on it, then they call all of you to help them manage the property, and they say, hey, you know, I just bought this. My realtor said, it's going to run for 7,000amonth. I need you to list and get me 7,000amonth. We look at the comps, we're like, you're. You're lucky to get five, you're lucky to get four, whatever it is. And those are just some of our more recent conversations. And at that point, they're screwed. [00:48:30] Speaker B: Yeah. They were basing their whole plan on this particular rental amount, and now that's not the case. [00:48:36] Speaker A: Yeah, exactly. So that's one that comes to mind because we have that conversation frequently, investing in areas that you think are going to gentrify and just never do. People who have, like, really kind of wild, outlandish, creative investment strategies, you're like, that's so complex. If it works, awesome. If not, like, you're screwed. Because no one else is going to fall for this. [00:49:01] Speaker B: Yeah. What about. Ooh, this is a Common 1. Will AI change the real estate industry? And if so, how? AI is changing the world? Absolutely. [00:49:11] Speaker A: Yeah. That's the easiest way to put it. AI is changing the world. It's changing the real estate industry. How? I don't even think we know yet. I think buyers and sellers have a lot more access to a lot more information than they ever have, and I think that's a great Thing more information that people are in people's hands is awesome. On the flip side, there's times where they have too much wrong information and think things that aren't true. So I think it will make the process a lot more efficient. You see like on the portal wars between like Zillow, Redfin, Compass, Google, everything else, they're all trying to get in front of you with their listings and own and monetize that. And I think access to free information is one of the most important aspects of our society and that needs to continue going. I think people being able to be much more informed owners, much more informed sellers, operators, investors I think is wonderful. I think overall it's positive for the industry and generally for a society to a certain point. But of course there could be, you know, Skynet and Terminator situations or even just looking at some of the situations where people are testing how good AI is becoming at hacking databases, mainframes, potentially being the collapse of society. That's all certainly there and hopefully we learn before it gets to that point. But I think in general, at least for the short term it's wonderful and it's giving people a lot more access to what they need to know and should know. [00:50:44] Speaker B: It'll change it with. Yeah, you're right, information access to information efficient systems. I don't think it's going to change it for the worst, for the worse. Okay, how about. Oh, what's one piece of real estate [00:50:56] Speaker A: advice that's outdated to eat the rate, marry the home. Always one of the things that I've and maybe this is me, you know, buy the the worst home in the nicest area. I don't think that applies anymore. I don't know how you feel about it. [00:51:16] Speaker B: I definitely think buying the nicest home is something to be aware of or a home that's overbuilt for the area. It depends on how bad the worst home in that area is. If it's a scraper and you don't have the cash flow, that's not going to make sense for you and you might not be able to recoup anytime soon. But yeah, that's a little dated. I mean the location, location, location, that's never going to change. That's was the best advice I think. Still is the best advice. Yeah, I don't know. Real estate's real estate. A lot of the old school tried and true advice is gonna stay the same. I would not buy the worst house in the nicest area. I've bought the smallest house in the nicest area. The most affordable one. [00:51:55] Speaker A: Another one too. Like home ownership being the American dream. [00:52:00] Speaker B: Ooh. [00:52:01] Speaker A: I think that and may probably unpopular opinion, but not everyone should buy and own a home. [00:52:08] Speaker B: Yeah. [00:52:08] Speaker A: Like, it comes with a lot of expenses, a lot of responsibility. You're locked down. It's super difficult and expensive to transact. Yeah. [00:52:16] Speaker B: Stop shaming the renters. [00:52:17] Speaker A: Yeah. It shouldn't be. It shouldn't be everyone's main priority. Renting is awesome. Like, you get a good property, a good home, a good property manager, good landlord, you could leave when you want. Or worst case scenario, 12 months. Or just break a lease because you're not breaking a mortgage. They have to. To repair your home. They like something breaks, you call them. There's a lot of flexibility, a lot of awesomeness. Now, sure, you're not. You're not getting that appreciation. You're not getting the equity. But at least right now in the current market, you're also paying a fraction of what you would if you actually own the home. [00:52:54] Speaker B: Sometimes your financial plan warrants a different living situation. You can structure things really well. We're renting a property in a location you really want to be in. Structured in a good way. Makes the most sense. [00:53:06] Speaker A: Yeah. [00:53:07] Speaker B: What trend in home design or buyer preferences has surprised you the most? [00:53:12] Speaker A: I don't know. That's probably a better question for you. [00:53:14] Speaker B: We've talked about this before, but like the open concept, I'm surprised at how standard that's becoming of what people want. I know. You know, you had like the modern open concept. You had the older homes that had the kitchen and the former room and this and that. Pretty much everyone is seeming to want. Not open concept or whether they're going to do it or not. Start talking about how they can blast walls out and make it an open concept. So much so that when a house has an open concept, I'm like, this is going to sell, no problem. And when it doesn't, it's going to hinder it. [00:53:45] Speaker A: One thing I'm happy about is people are going from marble. Marble is a nightmare to maintain. [00:53:50] Speaker B: LVP also, that's like a very affordable, durable flooring. It took over, over, like even I'll see some really nice hard. You know, I'll see floors that I know were really expensive and buyers are saying, oh, we're gonna put lv. Can we put LVP over this? Like it really? Do you think because they threw luxury [00:54:09] Speaker A: in there, it's throwing great marketing. [00:54:12] Speaker B: Yeah. Good marketing around the LVP and a good product for the price that it is. If you could change one thing about the real estate industry, what would it be? [00:54:20] Speaker A: Gosh, the ethics standard for me. [00:54:25] Speaker B: Let me answer this. Let me go. I think it would be the actual consequences and follow through on ethics for the professionals in the industry. Like there's so many ways for peop for professionals to screw people over and there's really low consequence with a lot of it. There is a ton of legwork just to get something through that was incredibly wrong for the client. And if you even take the time to bring it to the board's attention, it's just re. You can get away with a of lot lot. And the people that are practicing with bad ethics are aware of that. I don't like being in an industry that leaves so much room to be unethical. [00:55:02] Speaker A: Mine is along the same lines in just a different way. I think the perception of the different aspects or the different, I guess parts of the industry primarily like let's start out with Realtors. Like how there's perception that people like it's super easy. Realtors can be unethical. Just that like kind of that like slimy perception that some realtors have put into the industry. Or property managers. How property managers are just slumlords not wanting to repair anything and just collecting rent, doing nothing else. Real estate investors, how, you know, right now our society is villainizing them of being, you know, all that's terrible without realizing like they're providing homes to our communities and are generally providing great housing and great homes. Films perception in general. I mean there's bad actors in every industry. But I would think that the. I would say that the majority of the professionals within the real estate space, regardless of the sector, are well intentioned and do want to do well for the communities that they serve and live in. [00:56:07] Speaker B: Yeah, I think another one too, if I could change in the industry in general is the understanding around how agents are paid. I think the assumption is I, I guess, how do I say this? I think people think, okay, you're getting that commission. I'm just taking that full commission and putting it in my pocket. And that's not the case. You're paying for a company, a business, lots of cost associated with that business, lots of cost into marketing your home. The amount that actually goes in the agent's pocket from the commission versus the amount that went into the success of the sale of your home are very different. And I don't think people and I think it goes both ways. I don't think agents get their commissions and actually invest a Good portion of it back into their business and run it that way. I hate when agents want to cut corners and be cheap with things. I'm like, you're getting paid this amount of money to do a good job for that client and get them top dollar. And you are not investing some of that commission into doing that. But I think just in general, it's, you know, you don't go to a restaurant and pay your bill and think like, oh, this restaurant owner owners putting all of this in his pocket. Like, no, you. You can physically see, like, there was cost to this food. There's cost for the staff, there's cost for the building. People don't think about that when an agent's getting paid. There's so much cost and investment that goes back into the success that you're going to have. Yeah. [00:57:25] Speaker A: And regardless of the payment, too, like, the amount of effort put in, should it be predicated on the payment that may be coming at the end of the transaction? Like, regardless of our clients, you know, have a one or two, a, you know, a single studio or a mansion or an apartment building or an office building. The all we manages, we're putting in all of the resources, all of the care and dedication, regardless of the size. Likewise, on a transaction, you know, if it's a studio or, you know, a commercial office building, we're putting in the exact same amount of effort and making sure we do everything we can for the success of that client. [00:57:59] Speaker B: Yeah. So I think, yeah, just overall transparency around pay and how it actually happens. [00:58:04] Speaker A: Yeah. [00:58:05] Speaker B: And the slimy, slimy people. I would change that. Did you have any other questions that you wanted to address? I kind of jumped around on the list. [00:58:13] Speaker A: No, those are the questions that I've gotten asked most and that people have asked us to address. And this has been a super fun one. I think we're like 15 episodes in. So this is the questions that we've gotten throughout that time, the questions that we've gotten from our listeners, our clients, and just love being able to. Well, first, love getting the questions. Love being able to help provide this value and this insight to all of our listeners. [00:58:37] Speaker B: Agreed. Keep asking them and like, and subscribe and do all the things, but we love it. [00:58:42] Speaker A: Well, thanks for listening. This was a fun one and looking forward to the next one we have with Jason. Talking about Edus. So super hot topic. Not. Not a lot of people fully understand it. Not as easy as people think, but a ton of opportunity. He's done a lot, I've done a few. And super excited to bring that knowledge to all of our listeners. Listeners. [00:59:06] Speaker B: Amazing. See you later. That's a wrap on this episode of AllView 360, all things real estate. If you found this helpful, don't forget to subscribe, leave a review and share it with someone navigating their own real estate journey. Connect with us anytime on Instagram @AllView360 and on LinkedIn @AllView Real Estate. Until next time, stay curious and keep your perspective. 360.