April 13, 2025 • 36 mins
Buying a fixer and fixing it for equity or buying something updated? Guest: Christine Hatch – The mortgage group to talk loans. What does the listing price represent nowadays?
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Speaker 1 (00:00):
You're listening to KFI AM six forty on demand.
Speaker 2 (00:04):
Justin Warsham here talking southern California real estate. Last break,
I was talking about it is California a good state
to invest in, and I kind of ended because I
want to talk about flipping. I stumbled upon this because
and I'm shocked I didn't think too in preparing this segment,
because this happens so often. I get so many clients
(00:25):
or friends. Everybody wants to flip houses, and in my experience,
most of it has to do with the TV shows
because even with the drama that they have in those shows,
they make it look so easy. The most egregious thing
about these TV shows is the budget they talk about
flipping houses with, like thirty forty thousand dollars.
Speaker 3 (00:41):
I have listen.
Speaker 2 (00:43):
If there's somebody who could pull that off out there
and you're listening, hit that talkback feature let me know,
because I don't know who you're getting to do these
jobs for you. When I flipped houses, and when I
say when I have a flipping business, I have a partner.
She's great, she does like the design she makes, she's
so spatially awhere, but sorry, I'm heaping praise on her
because she's the best. But anyway, the point I'm saying
(01:04):
is that we kind of had to hit pause on
looking because the market there's so much demand for housing
that what people are paying for what we would consider
a distressed house, right, that's a house that needs some work,
needs some updates to it, need some love put in it,
money put into it that people were still willing to
pay so much for that by the time we put
in the rehab, we weren't really making and our bare
(01:25):
minimum to buy a house was ten thousand dollars each,
So we're looking for a twenty thousand dollars profit to
buy a house and fix it up and have it
for about four to six months tops, So you're working
four to six months to maybe make twenty thousand. Now,
during the early part of the pandemic, because of the
appreciation and some time it took us to get permits,
(01:45):
we it went great. So then it becomes about a volume, right,
because you've got to be cranking through at least ten
houses a year, and that's just really really hard to do,
especially with the low inventory. So I've yet to see
our rehab costs were about I always tell people that
you want to look at about two hundred dollars a
square foot if you're doing what's salt called inside the box,
so you're not adding square footage at all, you're just
(02:08):
updating things inside the walls. Two hundred dollars of square
foot is a fair budgeting estimate. Four hundred dollars of
square foot for the new construction part, right, So anything
you add on is going to be four hundred dollars
a square foot.
Speaker 3 (02:20):
So there's just there's no room.
Speaker 2 (02:21):
There's no room in there to really make money in
flipping in southern California. I trust me, there are people
out there doing it, and in my opinion, they're either
they've got some kind of an inside track into getting
the properties on what we call the up leg when
they buy the property, or they've just gotten the prices
down so much because they can keep these crews busy
so they can afford to pay them less because they
(02:43):
know that they're going to be doing year round work
for these people. That's the only way that I could
see that It's it's profitable, but it's it's really hard.
But we got some great talkbacks, so I want to
get to some awesome questions Robin hit me with that
first question.
Speaker 4 (02:55):
Please, do you think there's any value in converting some
of this vacant commercial property into residential units, you know,
like the shopping malls or some of the larger shopping centers.
Speaker 1 (03:08):
It's just a lot of open space. Is it practical
to do this?
Speaker 5 (03:11):
Could this be a good source?
Speaker 2 (03:12):
This is like, I feel like you were planted, my friend,
because that's a that's great, that's a great question. During
the pandemic, what they found was employers found that people
were actually more productive working from home, and really by
more productive, because I think anybody who.
Speaker 3 (03:28):
Works remotely is like am I?
Speaker 2 (03:29):
I don't think so, it's that they could get more
hours out of you because it became less about punching
in nine to five and more about people just getting
the job done. And so people would like they would
pick their shots. So maybe they'd dip out for the
afternoon and catch a matine movie and then they'd come
back and work until ten or eleven o'clock to get
caught up. Now I'm not saying that's obviously across the board,
but anyway, what they found was that there was a
(03:51):
significant drop in the need for commercial office space and
just two years into the lockdown from the pandemic, there
was already data coming out from to realtors saying that
there was about one hundred and fifty thousand commercial units
in the state of California that they projected would be
rezoned for housing. And they use that very example like
(04:15):
a mall right, because everybody retail brick and mortar. It's
really tough when you're competing against places like Amazon, so
they're like, how do we repurpose this? And that's definitely
an option where you would see I've seen it. There's
a Oh, I'm blanking on the city. I think it's
Lincoln Heights. I sold a loft and it was an
old factory that they'd converted into lofts. And then there
(04:36):
was a jail that was across the San Fernando Road
over there that they were also looking to convert into
mixed use. Mix use means they put businesses down at
the bottom and then they put condos on top of it,
and those could be rentals, those could be for sale.
But yeah, I do think there's a chance. The problem
is that now we've these high interest rates. Commercial loans
are crazy expensive. If you're really in the high end
(04:58):
of investing. You're hearing that you know these loans are
due to commercial loans. Actually, they don't have thirty year
terms like you do for residential. It's usually three to
five years. So all of these new apartment buildings across
the US that we're being built are probably going to
go under and be sold for pennies on the dollar
because they're not going to profit. They're not going to
pencil out, and these people have to get out or
they're going to go bankrupt when they get hit with
(05:19):
these new interest rates on their commercial loans. I think
we had another question, Robin.
Speaker 3 (05:22):
Please hi there. I have a quick question.
Speaker 6 (05:25):
My wife and I were looking to buy a home,
but the problem is that the monthly mortgage and interest
rates are so expensive, so we've been looking at manufactured homes.
What are your thoughts on buying manufactured homes and mobile
home parks. We're looking for somebody that has a low
lease payment around the two hundred thousand dollars two hundred
thousand dollars mark. Is it worth the investment? What do
(05:45):
you guys think we want to start building equity and
not rent.
Speaker 7 (05:48):
Thank you?
Speaker 2 (05:49):
Yeah, so, my and I think you had a second
part to that question too is do you have that too, Robin,
I want to answer both.
Speaker 7 (05:55):
Also, second question in regards to manufactured homes, if you
don't mind me asked, if a manufactured home monthly mortgage
payment and lease payment are equal to what my wife
and I spend in rent in our apartment, would it
make sense to go down the mobile home route or
should we just save our money and just buy property?
Speaker 5 (06:12):
Layers on the line.
Speaker 1 (06:13):
Thanks love the show.
Speaker 3 (06:15):
Thank you so.
Speaker 2 (06:15):
Without getting into the weeds and understanding your situation, like
I would love to talk a little bit more, just
I'm going to give you a surface level answer. I
don't think a manufactured home or a mobile home is
the solution to home ownership because they don't appreciate in value.
I would, as much as I railed against condos and
townhomes earlier in the show, I would much rather see
you in a condor a town home than a manufactured home.
I think that's the lowest level of purchase because you're
(06:38):
already buying. So why do those exist, right? I think
they exist because it's a primary way for real estate
investors to make money because they basically get rental property
with zero responsibility for upkeep on the actual individual units.
They only have to upkeep the infrastructure of the lot,
the mobile home lot. It's also difficult to get loans
for manufactured home. My mom she owns a manufactured home
(07:01):
in northern California, and I help her rent it, and
it was hard for her to get a loan. My
wife helped her, and she had to make all these
like jump through all these hoops to get it. So
there's a manufactured home that comes as like a prefab
single family home, and then there's like what we all
think of as like a mobile home. Mobile homes might
as well be like a mo an RV that just
parks there forever it loses value like a car over time,
(07:23):
it doesn't appreciate in value, and you're still paying rent,
So you're making payments like you're making a car payment,
and you still have rent that can go up on
the individual spaces. And I think maybe it makes sense
for retirement. I mean, I know my mother in law
was trying to get into one, but the problem was
she couldn't even qualify for the income for the rental
space at the mobile home park where she lives. And
(07:43):
even if I co signed for her they didn't allow
non occupant co signers for that exact reason. They didn't
want it to get flooded with people who could barely
afford to live there. So all in all, I think
this is probably the first time I've said this out loud.
I think if your only option is a mobile home
or a man manufactured home, I think you're better off
renting and trying to figure out some way to save up.
(08:05):
I would take my tip last week is look at
what it would cost for you to get a mortgage
on maybe a condo or a town home, and then
take the difference between what you're paying in rent and
pay yourself that different. So let's say you're paying one
thousand dollars a month in rent and it's twenty five
hundred dollars a month. I know these are low numbers,
but just for the sake of the example, twenty five
hundred dollars a month for your projected mortgage payment, you
(08:25):
start acting like you're paying it but saving up. That'll
help you save for a down payment and see how
much it impacts your financial lifestyle. Okay, thank you guys
for the questions. When we come back, we're going to
be talking to a mortgage broker, my friend Christine Hatch
from the Mortgage Group and going over loan tips.
Speaker 1 (08:41):
You're listening to KFI AM six forty on demand and.
Speaker 2 (08:46):
I'm excited to have my friend Christine Hatch here with
me today. Christine is a mortgage broker. Feel free to
jump in and correct me anywhere I'm wrong, but I
try to help everybody understand the different roles. So, like,
you could go talk to a loan officer at your
bank right and they would give you, like wherever you bank,
they would give you whatever lending or loans that they're
(09:08):
offering there. You could do the same thing for your
credit union. But what Christine does is she works with
multiple lenders at the same time, so she kind of
looks around and figures out based on your scenario, she'll
place you with a lender that is the best fit
for you. Do you also represent like private investors as well, Christine? Yeah,
no private investor. So some brokers will also have private investors.
(09:29):
And what that means is like I'm a billionaire and
I just got a ton of coins sitting around, which,
by the way, I don't know if you would agree
with this, Christine, but if I did have a million dollars,
just chilling that. I was like, what am I going
to do with that million dollars? What I would do
is I would buy mortgages because there is a secondary
market out there where you could buy mortgages eighty cents
on the dollars. So if it's a nine hundred thousand
(09:49):
dollars loan, you could get it for probably eight hundred
eight around eight hundred thousand dollars. You buy that nine
hundred thousand dollar loan and then they make the payments
to you.
Speaker 8 (09:57):
Yeah, yeah, Or you could be a hard money lender,
your hard money.
Speaker 3 (10:01):
Yeah, that's a good point too. See, this is why
I love you, Christine.
Speaker 2 (10:03):
Hard money, if you don't know, is like when I
do a flip, it's a hard money loan. So usually
that has about a one year term, right, and you're
going to pay a higher interest rate. You're going to
pay higher points when you originate the loan, but it's
intended just to be a quick, short term loan. There's
less hoops to jump through than if I'm going out
and just buying a house. Yeah right, Okay, here's the
(10:23):
thing I wanted to talk to you about though, Christine,
specifically is I think that the first thing whenever people
come to me looking for a home as a realtor, unfortunately,
what always ends up happening is I have to sling
them back over to you. So Christine is one of
probably the most popular lender that I refer clients to,
and so they'll come to me like I want to
(10:44):
buy a house, but I don't know. And the first
thing is the realtor I need to know is what
they can afford, what they qualify for. And there's also
a difference between what you qualify for and what you're
comfortable with, right, So so I.
Speaker 3 (10:55):
Kick them over to you.
Speaker 2 (10:57):
Tell us a little bit about what are some common
like questions that you get from people, like right out
of the gates when they come see you.
Speaker 8 (11:03):
I think the most common question lately has been to
have too much student loan debt, so I don't think
I'm going to qualify, yes, And they are fearful of
taking the next steps towards home ownership because they're like,
I'm drowning in student loan debt.
Speaker 2 (11:16):
And this is a great point too. Again, correct me
anytime I'm wrong here, Christine. Is that a lot of
times people will make the mistake of not talking to
a Christine or even a me a realtor because they're like, well,
I got so much debt, so I'm going to pay
off my student loans and then I'm gonna because that's
that's what's really messing me up when an actually and
so that example is like, what am I right? If
(11:38):
you have make you have great income, right, but you
don't have a ton of money in a savings account
that you could use for a down payment, Chances are
you probably shouldn't be paying your down paying down your
student loans. You should be saving extra money to build
up the money.
Speaker 3 (11:50):
Is that right?
Speaker 9 (11:51):
In most cases?
Speaker 8 (11:52):
Yes, because the beauty about student loans, which people don't realize,
is that we don't care how much your total balance is.
We only look at the minimum payments. Say you owe
fifty thousand dollars in student loan debt, but your minimum
payment is one hundred and fifty dollars. That's what we're
taking for a loan qualification. So some people think I
have to pay this fifty thousand dollars debt, but one
hundred and fifty dollars in monthly debt doesn't really move
(12:13):
the needle that much, So why pay off the fifty
thousand when you could maybe use that fifty thousand towards
the down payment and purchase. Your purchasing power is higher
at that point.
Speaker 2 (12:22):
Right, Because it all boils down to what they call
the DTI, the debt to income ratio. So that's the
percentage of all of your debt, including the housing payment, right.
Speaker 8 (12:30):
Correct, housing payment, your principal interest, taxes, and insurance in
any hoas, and then combine that with your other debt
obligations that you have.
Speaker 2 (12:37):
So if I have credit cards, right, maybe I have
five thousand dollars on a credit card. You're not looking
at the five thousand dollars payoff of the credit card.
You just want to know that I have a minimum
payment of eighty dollars. That's correct, and so the same thing.
And then this is the other thing. So you got
your car payment, you got your credit cards, All of
that stuff goes into qualifying for the loan based on
your income. What in your experience, Because I know that
(13:00):
a financial advisor would recommend and most of the other
states in the nation can do this, recommend that your
housing payment is about thirty percent of your monthly income.
Speaker 8 (13:08):
Yeah, yes, Now, thirty percent is super low, especially for
southern California, right our market.
Speaker 2 (13:14):
Yeah, yeah, your clients' what's the average are most common?
Speaker 8 (13:17):
I mean, most people will push it up to fifty percent.
Lending guidelines can go up to fifty and a lot
of people will push it to fifty. But I think
a safe space is around.
Speaker 2 (13:27):
Forty forty percent is a good comfort zone. So what
would be a circumstance though, where somebody should be comfortable
going up to fifty percent If.
Speaker 8 (13:36):
They know that they're going to get a raise soon,
if they get bonuses, if let's say they have a
spouse that's not currently working but will possibly be working
in six to twelve months, right, so certain financial situations
that are going to put them in a better financial
picture down the line. Then I would say, okay, well
maybe we can go higher, just as long as they
know they're kind of already at that threshold of your max.
Speaker 2 (13:57):
And this is why Christina and I are such big
fans of that to I've given out I think now
three times where you figure out whatever your projected mortgage
payment is and what you're paying in rent, and you
pay yourself the difference, so you could see what's that good?
How is that going to impact my lifestyle? Because a
lot of people tell me they don't want to be
house poor, right. They like to go to concerts, they
want to travel.
Speaker 9 (14:16):
And that's exactly what I tell people too.
Speaker 8 (14:17):
When I qualify them, I'll qualify them for the maximum
that they lending guidelines would allow for us to lend.
But then I also tell them, based on your comfort zone,
you should be looking at X purchase price, right, because
I don't think they should be house poor either.
Speaker 9 (14:30):
But I too strategy session.
Speaker 8 (14:33):
I too will tell them if you're let's say, paying
three thousand dollars in rent, but your house payment's going
to be five thousand, start paying yourself the difference and
see if you're comfortable with that, right, Because if you are,
then great. If you're not, then maybe we have to
take your comfort zone down a little bit so that
you are comfortable purchasing at that budget.
Speaker 3 (14:50):
So student loans is a big issue.
Speaker 2 (14:52):
Anything else that comes up when you're talking to clients frequently.
Speaker 9 (14:55):
Credit credit score, credit score.
Speaker 8 (14:57):
A lot of people think that they have terrible credit
and it's actually not as bad as they think it is,
and that they wouldn't be able to qualify. We can
actually go down as low as six twenty, sometimes even
five eighty depending on the loan program. But six twenty
and higher you have a wide range of loan programs
available to you.
Speaker 2 (15:13):
Yeah, because I get people like, well, I don't know
my credit like what's the cap credit score? Where it's
like after this, you don't really get what we're talking
about here. Just to break it down a little bit more,
is that your credit score really is probably the strongest
indicator of what your rate is going to be, because
that's the rate is what the lender uses to cover
their risk of lending you this large amount of money.
Speaker 3 (15:34):
Fair to say, yeah, okay, so.
Speaker 2 (15:36):
If that's the case, so your lower credit score, the
five eighty is going to be on the higher end.
But if I have an eight hundred credit score, I'm
going to be on the lower end. Is there like
a capped out max?
Speaker 9 (15:46):
Well, seven eighty and above, So.
Speaker 3 (15:47):
Seven eighty above doesn't get any better.
Speaker 8 (15:49):
Exactly whether seven eighty two or eight ten doesn't matter.
Speaker 2 (15:52):
You're getting the best rate you can get for that
credit score. What are some common mistakes that people make
in screwing up their credit score, But they think is
the smart.
Speaker 8 (16:01):
Thing paying off stuff and closing them out, paying off
credit cards and actually closing them because imagine you have
a credit history. Let's say you have a target credit
card for the last fifteen years, you pay it off
and you close that account, that fifteen year history of
making payments is now gone. So if you're going to
pay down at great pay it down, but do not
close out the actual credit card accounts because that could
(16:24):
actually negatively affect you and drop your scores as opposed
to increasing your scores.
Speaker 2 (16:28):
And what about like balances, Is there are there thresholds
for what kind of balances I should have on the
right question.
Speaker 9 (16:32):
Yes, thirty percent.
Speaker 8 (16:33):
So let's say you have a limit of ten thousand
dollars on your credit card, on your target credit card,
ten thousand dollars. You don't want to exceed three thousand
dollars a month on the balance.
Speaker 3 (16:42):
I've heard fifty percent.
Speaker 2 (16:43):
Also, is it like is it a tiered thing, Like
if you're above fifty percent you get a bigger dean.
Speaker 8 (16:47):
It would be yeah, But anytime thirty percent or more,
that's when you're going to start to see your FYCAL
scoring decrease.
Speaker 2 (16:53):
Okay, So ways that I've heard you give this tip before,
so I'm going to say it, but I'm going to
give you credit.
Speaker 3 (16:58):
Where it's due. If that ways that.
Speaker 2 (17:00):
Let's say I'm right now, I'm like, I want to
start looking for a house, but I'm at you know,
I'm at thirty well above, I'm forty percent of my limit?
Speaker 3 (17:08):
Is an easy way? What's an easy way that I
could just Is there an easy way I could just.
Speaker 9 (17:12):
Fix that get it down to the thirty percent?
Speaker 7 (17:14):
Well?
Speaker 2 (17:14):
What if I can't pay it down? What if I
don't have a couple grands sitting around? Like what I'm
getting at here too? Is I think you could call
and just ask for a credit line increase. Right, So
if I have a ten thousand dollars limit but I'm
already and I have five thousand dollars, if I get
them to bump it up to fifteen thousand dollars, now
I'm at that thirty percent threshold.
Speaker 9 (17:30):
You're all right?
Speaker 2 (17:31):
Yeah, all right, let's uh, oh man talk too much
with Christine. We're going to come back and I think
what we're going to talk about is buying down rates, right,
I want to talk about is it worth it to
pay the extra money to try to get as close
as you can to those fantastic pandemic rates.
Speaker 1 (17:45):
When we come back, you're listening to KFI AM six
forty on demand.
Speaker 2 (17:49):
Justin Warsham here talking Southern California with real estate Sorry,
with my guest Christine Hatch from the Mortgage Group. She's
a mortgage broker, and last break we were talking about
common questions that you get and how to what credit
score has, how that impacts it. But now I want
to talk about rate, right, because it's the thing. It's
(18:10):
probably don't let me put words in your mouth, Christine's
probably the most annoying question that you get as a lender,
not because you think it's a dumb question, but people
always want to know what is the rate? But there's
so many variables, right, that go into the rate. It's
hard to answer that, is correct.
Speaker 8 (18:23):
I get that question all the time and fight go
score your down payment, the type of property, the loan program,
the term of the loan.
Speaker 9 (18:30):
Is it a fix it adjustable?
Speaker 8 (18:31):
All that plays a factor, and how the bond market
is performing plays a factor. So if someone says what's
my rate, I say, well, it depends, right, it's not
black and white because of all those variables. So you
have to be really careful on when you see advertisements
right at there, let's say online or at your big bank,
and they say, oh, get a five and a half
(18:53):
percent rate, Well, what's the catch ye, with what type
of down payment? With type of FCO score? All of
that plays a huge factor, and it's.
Speaker 2 (18:59):
Hard to because you can sit down with any lender
right and you can say these are the rate in
terms that I'm offering right now. But on average, it
takes a buyer three to six months to find a house,
even in this market, and so that all changes by
the time you get the contract right.
Speaker 9 (19:12):
And they get misled.
Speaker 8 (19:13):
And that's the one thing that buyers have that you know,
I want to know what my rate is, but it's
so hard to determine because absolutely, if it takes three months,
if it takes six months, well the market hopefully is
better by that time, right, But if it's not, then
you're stuck with thinking you're going to get this rate
and then come to find out it's different.
Speaker 2 (19:28):
So people often will ask me about they don't actually
it's not a lot, but the people who are like
really geeky, right, that really geek out about this stuff.
They always want to know about buying down the rate
because the rates are so much higher. What does that
look like? And can you give me like a top
level example of what where a scenario might make sense
to buy down the rate.
Speaker 8 (19:47):
So a buy down, there's a couple different buydowns. So
when you're buying down, you're paying points to buy down
the rate. It's typically you're paying one percent of the
loan amount to drop your rate, typically a quarter percent.
So let's say let's use round numbers on a five
hundred thousand dollars loan. To drop your rate a quarter percent,
you're going to pay one point, which is five thousand dollars.
(20:07):
So that might change your payment what eighty bucks a month?
So does it make.
Speaker 2 (20:11):
Sense You've got to pay twenty grand to get a
full percentage point? So if you're at a seven and
a quarter rate, it's twenty grand to get a six.
Speaker 8 (20:17):
And a quarter rate, right, So does it financially make
sense to pay five thousand dollars just to save eighty
dollars a month?
Speaker 7 (20:24):
Right?
Speaker 8 (20:24):
So I look at it from a financial strategy because
at the end of the day, a mortgage is a
financial strategy, that's really what it is. And do you
want the peace of mind of the lower payment regardless
of how much it's going to cost you, or would
you rather be a little bit smart with your money
and say, well, I'll save that five thousand dollars or
that twenty thousand dollars maybe for home improvements or my
(20:44):
emergency fund.
Speaker 9 (20:46):
Take the slightly higher rate.
Speaker 8 (20:47):
When rates come down, we rewrite the mortgage refinance, take
advantage of the lower rate, lower payment.
Speaker 2 (20:52):
And I've seen you talk to our clients, mutual clients
that we've had that you talk about like, well, how
long do you think because it if you if there's
a chance that you're not going to be in that
house for five, ten years or more. Right, you could
be putting forty sixty thousand dollars to buy down that example,
which is a very low price, right because we're talking
about a five hundred thousand dollars loan amount. More likely
(21:13):
your loan is north of a million dollars in this market, right,
So double all these numbers really, So you're talking sixty
to eighty thousand dollars to try to buy down two
percent on your rate to get probably a five and
a quarter rate. So you've paid all of that money
and then something happens, right, you get a job change.
Now you're moving out of that house. You don't get
to take that rate with you. So you've paid that
(21:34):
money to buy down that rate without experience the benefit of.
Speaker 9 (21:36):
It, exactly.
Speaker 8 (21:37):
Or what if rates take down a year from now,
two years from now, where you can get that five
and a quarter percent rate.
Speaker 9 (21:43):
You just spent all this money up front, right.
Speaker 2 (21:45):
I've never even thought of that as being an option
because rates have been so low through most of my career.
Speaker 8 (21:50):
Yeah, that's right, and most homeowners actually refinance within the
first five years, whether they refinance to a lower rate,
they go from an adjustable to a fix, whether they
cash out, shortened the term lengths in the term. So
you're probably going to be touching your mortgage within those
first five years. And if you did spend all that
money up front, well, now you just you.
Speaker 2 (22:09):
Just spend all that money for nothing exactly. The other
there's a program that came out after the rate hikes
because I think lenders were like, oh crap, there's nothing
out there, there's no way we could do it, and
everybody was like the Fed just raised the rate, like
it went from three percent all the way up to
six at that time, and so they put out a
two to one buy down. Can you talk a little
bit about that.
Speaker 8 (22:28):
I love this program. Yeah, So in essence, what you're
doing is you're buying down the rate those first two years.
So the two stands for a two percent lower the
first year, the one stands for a one percent lower
the second year. So let's just say, hypothetically speaking, your
rate is seven percent today on a thirty year fixed mortgage.
That first year you would be at five percent, the
second year you would be at six percent, and then
(22:50):
you're three through thirty you would be at seven percent.
So the benefit of that is you're going to get
into the house with a more comfortable payment, and hopefully
within those first three years you refinance out of it, right,
hopefully rates go down to where you can rewrite the mortgage.
It's a fantastic way for people that are worried about
their mortgage payment being high right at that seven percent,
(23:11):
get into it now, and then we monitor the rates
over these next two to three years and hope that
right cross our fingers, hope that we can refinance you
and get the lower and not even see that seven
percent rate.
Speaker 2 (23:25):
And as a realtor, what I like is that this
is a way that you could put your you could
finance your buydown because what you do, what I do
with clients who want to do a two to one
buy down is usually it's about fifteen to twenty thousand.
Speaker 3 (23:34):
Is that a fair guessimate of price to do?
Speaker 8 (23:36):
That depends on your loan size and the purchase price
how much you're putting down, but gets.
Speaker 2 (23:40):
Somewhere around there for most of the places here in
southern California. So what I encourage my clients to do
is they throw on that extra fifteen to twenty thousand
dollars into their purchase price and then ask for that
credit because part of the term to get that two
to one buy down is it does have to come
from the seller as a credit, right correct.
Speaker 8 (23:56):
So let's say the properties listened for eight hundred thousand,
you offer eight fifteen with a fifteen thousand dollars sellar credit,
you accomplish the buydown, the seller still nuts that eight
hundred thousand that they wanted right as their price there go.
Speaker 2 (24:08):
So you've paid for it, like you financed the credit,
but a lot of times when people find out about it,
they want to, like say, make a list price offer
at eight hundred thousand, and they want that twenty thousand
dollars credit, which feels like a little bit of a
slap in the face if you're the seller, going, well, really,
you're only you're offering seventy eighty. That's what you're offering me.
And so that's why I always tell it if you can,
like push it up now. During the break though, before
(24:28):
we let you go, we were talking about you you
are a fan of condos and townhomes for first time
home buyers.
Speaker 8 (24:35):
I actually am, yeah, so I actually bought my first
property as a condo. I think it's a great stepping
stone to home ownership because the price point is slightly
lower than single families. So I would hate for people
to not get into home ownership because they think they
can't afford it. Now, with all the stuff that's going
on with Hway's and California law, I think it does
(24:56):
make it a little bit trickier for condos to get finance,
but still a great stepping stone, especially if you can
build that equity over the next three to five years you,
let's say fifty one hundred thousand equity, you sell that property,
you then have a bigger down payment for your next property,
which hopefully then will be a single family home.
Speaker 2 (25:14):
And admittedly I gave it a Google, and this is
a very quick google. I would love to dig a
little bit deeper because this is really just the first run.
But in Orange County, the median house price for a
condoor a town home is eight hundred and seventy one
thousand dollars, whereas a single family home is one point
four million dollars, which I think feeds right into your example.
But when we start to account for LA County, I
don't know how these condo and townhome prices are so
(25:35):
high or the single family. The single family rate kind
of seem makes sense, but it says the median condo
price in LA is eight hundred and sixty four thousand,
and my only guess is that LA must have a
lot more amenities or something that's driving those prices up.
Speaker 3 (25:48):
And the median house price is nine hundred and.
Speaker 8 (25:50):
Eighteen Yeah, so now if you're comparing that price point,
maybe go with a single family that would make more sense.
But at Orange County, with that big of a difference
in condo versus single family condo is a great opt.
Speaker 2 (26:00):
But I would bet in La that to get that
nine hundred and eighteen thousand dollars house, you're probably living
in a place that you're not going to want to
be living maybe.
Speaker 8 (26:07):
A one to one right, a bedroom, one bath.
Speaker 2 (26:09):
But I would venture a guest that if you're buying
an eight hundred and sixty four thousand dollars condo or
town home anywhere in LA, that's a really nice condo
or town Yeah.
Speaker 9 (26:17):
You're probably sixteen hundred or sixteen.
Speaker 2 (26:19):
Hundred square feet, three bedroom, two bath and a pool
and a gym in of you probably. Yeah, Thanks Christine,
I appreciate How could people find you? You got a website
and give social media handles? How can they find you?
Speaker 8 (26:30):
Yes, my website is www. The Mortgage GROUPCA dot com
and my social media you can find me on Instagram
at CTHELETTERC dot Mortgage sister, and I am on Facebook
as well under Christine Hatch.
Speaker 2 (26:42):
What I love about Christine is Christine is the kind
of person. We both have said this to clients. She
will sit down with a person and educate them and
talk them through stuff. So what we both are like
big fans of We don't want you to come to
us just when you think you're ready, when you're just
starting to think about it, start talking to a lender
that you trust just to get the information, and someone
like a Christine or myself will help you build a
(27:02):
plan to get that home.
Speaker 3 (27:04):
Yeah.
Speaker 8 (27:04):
I always tell people, if you have the slightest thought,
even if you don't think you're going to buy for
two or three years, start that conversation today because you
can start to put a game plan in place and
then work towards that over these next two three years,
rather than waiting and thinking, I'm just going to talk
to you know, Justin or myself right when I'm ready
to buy. So it's always better put your ducks in
(27:25):
a row while in advance and you'll be in good ship.
Speaker 3 (27:27):
Yeah, you're not wasting our time. People think you're wasting
on them. It all right.
Speaker 2 (27:30):
When we come back, I want to talk about more
ho waves. We've got a great huaight talkback question, and
then I also want to talk a little bit about
listing prices and what they mean.
Speaker 1 (27:39):
You're listening to KFI AM six forty on demand.
Speaker 2 (27:43):
Justin Worsham talk in Southern California real Estate. We got
a great talkback question that I want to hit first
before we get into listing prices.
Speaker 3 (27:49):
Can you play that for me? Robin, I justin love
the show.
Speaker 8 (27:52):
My question is I have a town house and what's
to deal with.
Speaker 9 (27:57):
They just keep raising the ho way?
Speaker 7 (28:00):
Are they allowed to do that? And is there a.
Speaker 9 (28:03):
Cap at some point? Because now it's half.
Speaker 5 (28:06):
Of my mortgage?
Speaker 7 (28:07):
Can you give me some assistance?
Speaker 3 (28:09):
Thanks, have a great day.
Speaker 2 (28:10):
I'm gonna try and it's I'm so glad you asked
this question because it reminded me to do some research
into it, because I was literally talking about this yesterday
with clients that were considering getting a condo or a
town home instead of a single family home. And here's
what I found. You're gonna want to talk to a lawyer.
I'm just a license broker. I'm not a lawyer, so
I should not be giving legal advice. But the cap,
according to what the California Civil Code is that they
(28:32):
can only raise it up to twenty percent over the
previous year's assessment. Now, what I don't know and what
you might want to talk to a lawyer or do
some more research into is that is that twenty percent
overall or just the monthly cost or whatever. And then
the other fun fact I found was that they can
they can do a special assessment up to five percent
of the annual budget of the h away without homeowner approval.
(28:54):
So if you get hit with a special assessment that's
more than five percent of the annual budget for the
h away, then they need to get your approval. And
this is part of what I was saying too that
I have concerns about the h aways is that they
can just eight people in a room decide one day
that they're going to raise your dues and you don't
really have a lot of say in that. Now, you
could be the person who's like, I'm going to be
the president and that's how I'm going to regulate that,
(29:16):
But I again don't I don't know that how much
control you're going to have. What I will tell you
is that more than likely, if your town home is
here in southern California, the reason that your hays are
going up is insurance costs. I would, I would it's
got to be insurance costs, because I think the property
taxes a yeah, they're all broken up by the individual owners.
So it's only insurance costs, very rarely unless they're talking
(29:38):
about doing some kind of a major improvement down the road.
I think it's because their insurance costs are going up
and it's crazy for them.
Speaker 3 (29:45):
Thank you.
Speaker 2 (29:46):
And the other thing I want to talk about before
we get to Chris Merrill, who's coming up here next
with his show, is listing prices. This was actually a
question I asked people at open houses before I did
the show. I asked what they thought, and this is
something that I don't know if Christine Hatch is still
here with me with the mortgage group, but the people
are confused by the listing price. And I think that
the listing price is it was at some point was
(30:08):
probably intended to be some kind of a representation of value,
and I think that's kind of gone away. I think
now it's more of just a marketing strategy. The best
example was that I saw a home that was listed.
Does it mean oh, I saw a home that was
listed at eight ninety nine and it was way low
that house should have been. It was going to sell
for at least a million fifty at least one point one.
(30:29):
But when you look at the most common listed prices
in the in the city that it was in, which
it happened to be Burbank, that those were the most
common spots, and so it was it was their way
of getting the most eyes on it. And it was
during the pandemic where you could do that. You could
list a house for a dollar and the interest would
just drive it up. But more recently, because the market
is slow, I've seen people try to list houses more
(30:51):
conservatively and if you have a seller who's not patient,
if they're not if they're anxious, then they and they
might take an offer early. I was able to Arstine
actually helped these clients. But we were able to get
a house for sixty thousand dollars below the appraised value
on the home, just because the realtors had a strategy
of they wanted to list it a little low to
let the interest drive it up. And we just came
(31:12):
in early, right after the first weekend, and the seller
was like, well, I think this is going to be
as good as it's going to get, and it's close enough,
and so we did it. We didn't offer list. We
offered like twenty k above lists, just to show them
that we mean business. You think I missed anything in there, Christine, No,
I think.
Speaker 9 (31:25):
You're absolutely right.
Speaker 8 (31:26):
List price doesn't necessarily mean that's what the home is worth, right, Yeah, So.
Speaker 2 (31:29):
I always tell people try not listen to your realtor,
try not to pay too much attention to a list
price on that one. Chris Merrill is here. He is
coming up in the next hour. Chris, what are you
talking about in your show, sir? Well, first of all,
I guess hey, I'm really enjoying listening to your show.
Oh thanks, man, that mayes a lot. You're like a professional,
You're like the real deal. I'm just here being a
weekend warrior ing.
Speaker 5 (31:48):
I know. No, It's funny because I cracked open Zillow
while you guys were talking, and I was like, is
there really.
Speaker 3 (31:54):
That much of a difference between condos and single thing? Oh?
Yeah there is. Yeah, there's a huge difference. Yeah.
Speaker 2 (31:59):
But those hoa man, they they oftentimes they don't they
make it now. They're just close enough where it's like
it has a lot of buyers going, it's just not
worth it. I feel like I want to push my
budget up just to get a single family home.
Speaker 5 (32:10):
Yeah, But then I lived in a neighborhood where somebody
decided to paint their They had kind of one of
those walls in front of their house, you know, or
there's a like not a fence, but like a solid wall. Yeah,
and they decided to put a mural on it. But
it was not well. They didn't have an HOA and
it was gauny as all hell. It was like a
wolf bang at the moon kind of thing. And and
(32:32):
then they painted their house this like a pastel pink.
Speaker 3 (32:36):
Oh, it's horrible.
Speaker 2 (32:38):
So you wished you had an HOA in that case
for design and Review as they call.
Speaker 5 (32:42):
The one thing I like about HOA is it gives
me a chance to tell other people what to do.
Speaker 3 (32:46):
Yeah.
Speaker 5 (32:47):
I'm a big fan of me having control over them. Yeah,
And I just love that and I hate giving that up.
So that's that's the one thing I'm doing. Hey, we'll
talk about the Grand Prix is in town and that
means that it's time to shoot somebody. So that's happening.
Tariffs are hitting us, and I appreciate that. You guys,
we're talking so much about tariffs. In fact, I'm going
to dive into the tariffs and the home prices of
what they're doing UH in southern California, and what they
(33:10):
are doing nationwide, and then what they're doing to industry
as well. We'll talk about that coming up in the
five o'clock hour, and we're going to open up our
talk back as well. We'll ask the question, what is
the one thing that you won't give up no matter
how expensive it gets? So I was talking to my son.
He's he's a jim He's I gotta go to the gym.
Is a jim rat.
Speaker 7 (33:28):
Yeah.
Speaker 3 (33:28):
He likes to throw some steel, Yeah, a pumps iron
like that.
Speaker 5 (33:33):
How old is he? He's twenty five? Yeah, I swear
he's twenty five going on fifteen. Yeah, But he says,
I'm not I'm not giving up. I'm not giving up
egg whites. I gotta have my egg whites and my
protein powders. And I thought that's really convenient because he
is paying a nominal rent and and I'm thinking, am
(33:55):
I subsidizing his protein powders and and UH and whites?
Speaker 3 (34:00):
Yes, you are, I think kind of am ernest.
Speaker 2 (34:02):
I mean, I actually have a sixteen year old, so
I feel like I was just talking about a thirteen
year old and my younger son is very fast and
loose with my money. Like today, Billiest example, today he
decided to have McDonald's delivered to the house instead of
having his older brother drive him there. And the only
reason I knew this is because I was sitting at
home preparing for this very show and he called.
Speaker 3 (34:23):
His mother, Chris.
Speaker 2 (34:24):
He called the mother and said, can you get I
want McDonald's delivered to me? And then when I found
I was like why, and he goes, well, if I
asked you, you would have said no.
Speaker 6 (34:33):
Right.
Speaker 5 (34:34):
He was right, He was totally right. Well, and then
are the terroriffs? Is the concern people are having? Is
that leading to more petty theft? Are we're going to
see resurgons in portpos Because I actually had about one
hundred and seventy dollars where the stuff stolen from me yesterday.
Speaker 3 (34:49):
I was very unpleased.
Speaker 5 (34:51):
And I haven't told my wife about it because I'm
kind of ashamed and and I'm afraid that she's going
to say, how could you have been so stupid?
Speaker 2 (34:57):
You know what I love is that you're saying this
on the radio where she's you just know, my wife
is also not listening.
Speaker 5 (35:04):
Are you kidding? My wife is like, did you meet Seacrest?
Speaker 3 (35:09):
I love Seacrest? When can I meet Seacrest? That's what
I get from my shot. Listen to this thing.
Speaker 2 (35:14):
I don't even know, no, but I like that. That's
I never would have thought. That's a great idea, Chris.
Not to not to suck up to you, but that's
a great idea. I never would have thought that tariffs
would have an impact on crime, like I never would
have even crossed my mind.
Speaker 3 (35:26):
I'm looking forward to it, man, Thank you so much. Funny.
Speaker 2 (35:28):
All right, Well, we'll see you guys next week again,
two to four. Right here more southern California real estate.
Speaker 3 (35:33):
Reach out to me.
Speaker 2 (35:33):
You could find me at home with Justin on Instagram,
or you could go to Justin Worsham dot com. If
you want to send me an email, you can find
my number anywhere out there. Just type it justin w
O R and then that'll spell the rest of my
name for you.
Speaker 3 (35:48):
Thanks to shout out to Richie and everybody.
Speaker 2 (35:50):
Robin Brigeta, I'm sorry I messed up your name again,
but I think I ended strong.
Speaker 3 (35:54):
I felt good about it. You did I did right.
Speaker 2 (35:56):
I rallied, I locked in, and I rallied and ill
him here.
Speaker 3 (36:01):
Yeah, you know what.
Speaker 2 (36:02):
I found success in betting people pop tarts. Richie scored
himself a family pack of pop tarts because I guess
the affordability next in correctly last week, thank you Christine
as well hit her up.
Speaker 3 (36:12):
Thank you guys very much.
Speaker 1 (36:13):
KFI AM six forty on demand
You're listening to KFI AM six forty on demand.
Speaker 2 (00:04):
Justin Warsham here talking southern California real estate. Last break,
I was talking about it is California a good state
to invest in, and I kind of ended because I
want to talk about flipping. I stumbled upon this because
and I'm shocked I didn't think too in preparing this segment,
because this happens so often. I get so many clients
(00:25):
or friends. Everybody wants to flip houses, and in my experience,
most of it has to do with the TV shows
because even with the drama that they have in those shows,
they make it look so easy. The most egregious thing
about these TV shows is the budget they talk about
flipping houses with, like thirty forty thousand dollars.
Speaker 3 (00:41):
I have listen.
Speaker 2 (00:43):
If there's somebody who could pull that off out there
and you're listening, hit that talkback feature let me know,
because I don't know who you're getting to do these
jobs for you. When I flipped houses, and when I
say when I have a flipping business, I have a partner.
She's great, she does like the design she makes, she's
so spatially awhere, but sorry, I'm heaping praise on her
because she's the best. But anyway, the point I'm saying
(01:04):
is that we kind of had to hit pause on
looking because the market there's so much demand for housing
that what people are paying for what we would consider
a distressed house, right, that's a house that needs some work,
needs some updates to it, need some love put in it,
money put into it that people were still willing to
pay so much for that by the time we put
in the rehab, we weren't really making and our bare
(01:25):
minimum to buy a house was ten thousand dollars each,
So we're looking for a twenty thousand dollars profit to
buy a house and fix it up and have it
for about four to six months tops, So you're working
four to six months to maybe make twenty thousand. Now,
during the early part of the pandemic, because of the
appreciation and some time it took us to get permits,
(01:45):
we it went great. So then it becomes about a volume, right,
because you've got to be cranking through at least ten
houses a year, and that's just really really hard to do,
especially with the low inventory. So I've yet to see
our rehab costs were about I always tell people that
you want to look at about two hundred dollars a
square foot if you're doing what's salt called inside the box,
so you're not adding square footage at all, you're just
(02:08):
updating things inside the walls. Two hundred dollars of square
foot is a fair budgeting estimate. Four hundred dollars of
square foot for the new construction part, right, So anything
you add on is going to be four hundred dollars
a square foot.
Speaker 3 (02:20):
So there's just there's no room.
Speaker 2 (02:21):
There's no room in there to really make money in
flipping in southern California. I trust me, there are people
out there doing it, and in my opinion, they're either
they've got some kind of an inside track into getting
the properties on what we call the up leg when
they buy the property, or they've just gotten the prices
down so much because they can keep these crews busy
so they can afford to pay them less because they
(02:43):
know that they're going to be doing year round work
for these people. That's the only way that I could
see that It's it's profitable, but it's it's really hard.
But we got some great talkbacks, so I want to
get to some awesome questions Robin hit me with that
first question.
Speaker 4 (02:55):
Please, do you think there's any value in converting some
of this vacant commercial property into residential units, you know,
like the shopping malls or some of the larger shopping centers.
Speaker 1 (03:08):
It's just a lot of open space. Is it practical
to do this?
Speaker 5 (03:11):
Could this be a good source?
Speaker 2 (03:12):
This is like, I feel like you were planted, my friend,
because that's a that's great, that's a great question. During
the pandemic, what they found was employers found that people
were actually more productive working from home, and really by
more productive, because I think anybody who.
Speaker 3 (03:28):
Works remotely is like am I?
Speaker 2 (03:29):
I don't think so, it's that they could get more
hours out of you because it became less about punching
in nine to five and more about people just getting
the job done. And so people would like they would
pick their shots. So maybe they'd dip out for the
afternoon and catch a matine movie and then they'd come
back and work until ten or eleven o'clock to get
caught up. Now I'm not saying that's obviously across the board,
but anyway, what they found was that there was a
(03:51):
significant drop in the need for commercial office space and
just two years into the lockdown from the pandemic, there
was already data coming out from to realtors saying that
there was about one hundred and fifty thousand commercial units
in the state of California that they projected would be
rezoned for housing. And they use that very example like
(04:15):
a mall right, because everybody retail brick and mortar. It's
really tough when you're competing against places like Amazon, so
they're like, how do we repurpose this? And that's definitely
an option where you would see I've seen it. There's
a Oh, I'm blanking on the city. I think it's
Lincoln Heights. I sold a loft and it was an
old factory that they'd converted into lofts. And then there
(04:36):
was a jail that was across the San Fernando Road
over there that they were also looking to convert into
mixed use. Mix use means they put businesses down at
the bottom and then they put condos on top of it,
and those could be rentals, those could be for sale.
But yeah, I do think there's a chance. The problem
is that now we've these high interest rates. Commercial loans
are crazy expensive. If you're really in the high end
(04:58):
of investing. You're hearing that you know these loans are
due to commercial loans. Actually, they don't have thirty year
terms like you do for residential. It's usually three to
five years. So all of these new apartment buildings across
the US that we're being built are probably going to
go under and be sold for pennies on the dollar
because they're not going to profit. They're not going to
pencil out, and these people have to get out or
they're going to go bankrupt when they get hit with
(05:19):
these new interest rates on their commercial loans. I think
we had another question, Robin.
Speaker 3 (05:22):
Please hi there. I have a quick question.
Speaker 6 (05:25):
My wife and I were looking to buy a home,
but the problem is that the monthly mortgage and interest
rates are so expensive, so we've been looking at manufactured homes.
What are your thoughts on buying manufactured homes and mobile
home parks. We're looking for somebody that has a low
lease payment around the two hundred thousand dollars two hundred
thousand dollars mark. Is it worth the investment? What do
(05:45):
you guys think we want to start building equity and
not rent.
Speaker 7 (05:48):
Thank you?
Speaker 2 (05:49):
Yeah, so, my and I think you had a second
part to that question too is do you have that too, Robin,
I want to answer both.
Speaker 7 (05:55):
Also, second question in regards to manufactured homes, if you
don't mind me asked, if a manufactured home monthly mortgage
payment and lease payment are equal to what my wife
and I spend in rent in our apartment, would it
make sense to go down the mobile home route or
should we just save our money and just buy property?
Speaker 5 (06:12):
Layers on the line.
Speaker 1 (06:13):
Thanks love the show.
Speaker 3 (06:15):
Thank you so.
Speaker 2 (06:15):
Without getting into the weeds and understanding your situation, like
I would love to talk a little bit more, just
I'm going to give you a surface level answer. I
don't think a manufactured home or a mobile home is
the solution to home ownership because they don't appreciate in value.
I would, as much as I railed against condos and
townhomes earlier in the show, I would much rather see
you in a condor a town home than a manufactured home.
I think that's the lowest level of purchase because you're
(06:38):
already buying. So why do those exist, right? I think
they exist because it's a primary way for real estate
investors to make money because they basically get rental property
with zero responsibility for upkeep on the actual individual units.
They only have to upkeep the infrastructure of the lot,
the mobile home lot. It's also difficult to get loans
for manufactured home. My mom she owns a manufactured home
(07:01):
in northern California, and I help her rent it, and
it was hard for her to get a loan. My
wife helped her, and she had to make all these
like jump through all these hoops to get it. So
there's a manufactured home that comes as like a prefab
single family home, and then there's like what we all
think of as like a mobile home. Mobile homes might
as well be like a mo an RV that just
parks there forever it loses value like a car over time,
(07:23):
it doesn't appreciate in value, and you're still paying rent,
So you're making payments like you're making a car payment,
and you still have rent that can go up on
the individual spaces. And I think maybe it makes sense
for retirement. I mean, I know my mother in law
was trying to get into one, but the problem was
she couldn't even qualify for the income for the rental
space at the mobile home park where she lives. And
(07:43):
even if I co signed for her they didn't allow
non occupant co signers for that exact reason. They didn't
want it to get flooded with people who could barely
afford to live there. So all in all, I think
this is probably the first time I've said this out loud.
I think if your only option is a mobile home
or a man manufactured home, I think you're better off
renting and trying to figure out some way to save up.
(08:05):
I would take my tip last week is look at
what it would cost for you to get a mortgage
on maybe a condo or a town home, and then
take the difference between what you're paying in rent and
pay yourself that different. So let's say you're paying one
thousand dollars a month in rent and it's twenty five
hundred dollars a month. I know these are low numbers,
but just for the sake of the example, twenty five
hundred dollars a month for your projected mortgage payment, you
(08:25):
start acting like you're paying it but saving up. That'll
help you save for a down payment and see how
much it impacts your financial lifestyle. Okay, thank you guys
for the questions. When we come back, we're going to
be talking to a mortgage broker, my friend Christine Hatch
from the Mortgage Group and going over loan tips.
Speaker 1 (08:41):
You're listening to KFI AM six forty on demand and.
Speaker 2 (08:46):
I'm excited to have my friend Christine Hatch here with
me today. Christine is a mortgage broker. Feel free to
jump in and correct me anywhere I'm wrong, but I
try to help everybody understand the different roles. So, like,
you could go talk to a loan officer at your
bank right and they would give you, like wherever you bank,
they would give you whatever lending or loans that they're
(09:08):
offering there. You could do the same thing for your
credit union. But what Christine does is she works with
multiple lenders at the same time, so she kind of
looks around and figures out based on your scenario, she'll
place you with a lender that is the best fit
for you. Do you also represent like private investors as well, Christine? Yeah,
no private investor. So some brokers will also have private investors.
(09:29):
And what that means is like I'm a billionaire and
I just got a ton of coins sitting around, which,
by the way, I don't know if you would agree
with this, Christine, but if I did have a million dollars,
just chilling that. I was like, what am I going
to do with that million dollars? What I would do
is I would buy mortgages because there is a secondary
market out there where you could buy mortgages eighty cents
on the dollars. So if it's a nine hundred thousand
(09:49):
dollars loan, you could get it for probably eight hundred
eight around eight hundred thousand dollars. You buy that nine
hundred thousand dollar loan and then they make the payments
to you.
Speaker 8 (09:57):
Yeah, yeah, Or you could be a hard money lender,
your hard money.
Speaker 3 (10:01):
Yeah, that's a good point too. See, this is why
I love you, Christine.
Speaker 2 (10:03):
Hard money, if you don't know, is like when I
do a flip, it's a hard money loan. So usually
that has about a one year term, right, and you're
going to pay a higher interest rate. You're going to
pay higher points when you originate the loan, but it's
intended just to be a quick, short term loan. There's
less hoops to jump through than if I'm going out
and just buying a house. Yeah right, Okay, here's the
(10:23):
thing I wanted to talk to you about though, Christine,
specifically is I think that the first thing whenever people
come to me looking for a home as a realtor, unfortunately,
what always ends up happening is I have to sling
them back over to you. So Christine is one of
probably the most popular lender that I refer clients to,
and so they'll come to me like I want to
(10:44):
buy a house, but I don't know. And the first
thing is the realtor I need to know is what
they can afford, what they qualify for. And there's also
a difference between what you qualify for and what you're
comfortable with, right, So so I.
Speaker 3 (10:55):
Kick them over to you.
Speaker 2 (10:57):
Tell us a little bit about what are some common
like questions that you get from people, like right out
of the gates when they come see you.
Speaker 8 (11:03):
I think the most common question lately has been to
have too much student loan debt, so I don't think
I'm going to qualify, yes, And they are fearful of
taking the next steps towards home ownership because they're like,
I'm drowning in student loan debt.
Speaker 2 (11:16):
And this is a great point too. Again, correct me
anytime I'm wrong here, Christine. Is that a lot of
times people will make the mistake of not talking to
a Christine or even a me a realtor because they're like, well,
I got so much debt, so I'm going to pay
off my student loans and then I'm gonna because that's
that's what's really messing me up when an actually and
so that example is like, what am I right? If
(11:38):
you have make you have great income, right, but you
don't have a ton of money in a savings account
that you could use for a down payment, Chances are
you probably shouldn't be paying your down paying down your
student loans. You should be saving extra money to build
up the money.
Speaker 3 (11:50):
Is that right?
Speaker 9 (11:51):
In most cases?
Speaker 8 (11:52):
Yes, because the beauty about student loans, which people don't realize,
is that we don't care how much your total balance is.
We only look at the minimum payments. Say you owe
fifty thousand dollars in student loan debt, but your minimum
payment is one hundred and fifty dollars. That's what we're
taking for a loan qualification. So some people think I
have to pay this fifty thousand dollars debt, but one
hundred and fifty dollars in monthly debt doesn't really move
(12:13):
the needle that much, So why pay off the fifty
thousand when you could maybe use that fifty thousand towards
the down payment and purchase. Your purchasing power is higher
at that point.
Speaker 2 (12:22):
Right, Because it all boils down to what they call
the DTI, the debt to income ratio. So that's the
percentage of all of your debt, including the housing payment, right.
Speaker 8 (12:30):
Correct, housing payment, your principal interest, taxes, and insurance in
any hoas, and then combine that with your other debt
obligations that you have.
Speaker 2 (12:37):
So if I have credit cards, right, maybe I have
five thousand dollars on a credit card. You're not looking
at the five thousand dollars payoff of the credit card.
You just want to know that I have a minimum
payment of eighty dollars. That's correct, and so the same thing.
And then this is the other thing. So you got
your car payment, you got your credit cards, All of
that stuff goes into qualifying for the loan based on
your income. What in your experience, Because I know that
(13:00):
a financial advisor would recommend and most of the other
states in the nation can do this, recommend that your
housing payment is about thirty percent of your monthly income.
Speaker 8 (13:08):
Yeah, yes, Now, thirty percent is super low, especially for
southern California, right our market.
Speaker 2 (13:14):
Yeah, yeah, your clients' what's the average are most common?
Speaker 8 (13:17):
I mean, most people will push it up to fifty percent.
Lending guidelines can go up to fifty and a lot
of people will push it to fifty. But I think
a safe space is around.
Speaker 2 (13:27):
Forty forty percent is a good comfort zone. So what
would be a circumstance though, where somebody should be comfortable
going up to fifty percent If.
Speaker 8 (13:36):
They know that they're going to get a raise soon,
if they get bonuses, if let's say they have a
spouse that's not currently working but will possibly be working
in six to twelve months, right, so certain financial situations
that are going to put them in a better financial
picture down the line. Then I would say, okay, well
maybe we can go higher, just as long as they
know they're kind of already at that threshold of your max.
Speaker 2 (13:57):
And this is why Christina and I are such big
fans of that to I've given out I think now
three times where you figure out whatever your projected mortgage
payment is and what you're paying in rent, and you
pay yourself the difference, so you could see what's that good?
How is that going to impact my lifestyle? Because a
lot of people tell me they don't want to be
house poor, right. They like to go to concerts, they
want to travel.
Speaker 9 (14:16):
And that's exactly what I tell people too.
Speaker 8 (14:17):
When I qualify them, I'll qualify them for the maximum
that they lending guidelines would allow for us to lend.
But then I also tell them, based on your comfort zone,
you should be looking at X purchase price, right, because
I don't think they should be house poor either.
Speaker 9 (14:30):
But I too strategy session.
Speaker 8 (14:33):
I too will tell them if you're let's say, paying
three thousand dollars in rent, but your house payment's going
to be five thousand, start paying yourself the difference and
see if you're comfortable with that, right, Because if you are,
then great. If you're not, then maybe we have to
take your comfort zone down a little bit so that
you are comfortable purchasing at that budget.
Speaker 3 (14:50):
So student loans is a big issue.
Speaker 2 (14:52):
Anything else that comes up when you're talking to clients frequently.
Speaker 9 (14:55):
Credit credit score, credit score.
Speaker 8 (14:57):
A lot of people think that they have terrible credit
and it's actually not as bad as they think it is,
and that they wouldn't be able to qualify. We can
actually go down as low as six twenty, sometimes even
five eighty depending on the loan program. But six twenty
and higher you have a wide range of loan programs
available to you.
Speaker 2 (15:13):
Yeah, because I get people like, well, I don't know
my credit like what's the cap credit score? Where it's
like after this, you don't really get what we're talking
about here. Just to break it down a little bit more,
is that your credit score really is probably the strongest
indicator of what your rate is going to be, because
that's the rate is what the lender uses to cover
their risk of lending you this large amount of money.
Speaker 3 (15:34):
Fair to say, yeah, okay, so.
Speaker 2 (15:36):
If that's the case, so your lower credit score, the
five eighty is going to be on the higher end.
But if I have an eight hundred credit score, I'm
going to be on the lower end. Is there like
a capped out max?
Speaker 9 (15:46):
Well, seven eighty and above, So.
Speaker 3 (15:47):
Seven eighty above doesn't get any better.
Speaker 8 (15:49):
Exactly whether seven eighty two or eight ten doesn't matter.
Speaker 2 (15:52):
You're getting the best rate you can get for that
credit score. What are some common mistakes that people make
in screwing up their credit score, But they think is
the smart.
Speaker 8 (16:01):
Thing paying off stuff and closing them out, paying off
credit cards and actually closing them because imagine you have
a credit history. Let's say you have a target credit
card for the last fifteen years, you pay it off
and you close that account, that fifteen year history of
making payments is now gone. So if you're going to
pay down at great pay it down, but do not
close out the actual credit card accounts because that could
(16:24):
actually negatively affect you and drop your scores as opposed
to increasing your scores.
Speaker 2 (16:28):
And what about like balances, Is there are there thresholds
for what kind of balances I should have on the
right question.
Speaker 9 (16:32):
Yes, thirty percent.
Speaker 8 (16:33):
So let's say you have a limit of ten thousand
dollars on your credit card, on your target credit card,
ten thousand dollars. You don't want to exceed three thousand
dollars a month on the balance.
Speaker 3 (16:42):
I've heard fifty percent.
Speaker 2 (16:43):
Also, is it like is it a tiered thing, Like
if you're above fifty percent you get a bigger dean.
Speaker 8 (16:47):
It would be yeah, But anytime thirty percent or more,
that's when you're going to start to see your FYCAL
scoring decrease.
Speaker 2 (16:53):
Okay, So ways that I've heard you give this tip before,
so I'm going to say it, but I'm going to
give you credit.
Speaker 3 (16:58):
Where it's due. If that ways that.
Speaker 2 (17:00):
Let's say I'm right now, I'm like, I want to
start looking for a house, but I'm at you know,
I'm at thirty well above, I'm forty percent of my limit?
Speaker 3 (17:08):
Is an easy way? What's an easy way that I
could just Is there an easy way I could just.
Speaker 9 (17:12):
Fix that get it down to the thirty percent?
Speaker 7 (17:14):
Well?
Speaker 2 (17:14):
What if I can't pay it down? What if I
don't have a couple grands sitting around? Like what I'm
getting at here too? Is I think you could call
and just ask for a credit line increase. Right, So
if I have a ten thousand dollars limit but I'm
already and I have five thousand dollars, if I get
them to bump it up to fifteen thousand dollars, now
I'm at that thirty percent threshold.
Speaker 9 (17:30):
You're all right?
Speaker 2 (17:31):
Yeah, all right, let's uh, oh man talk too much
with Christine. We're going to come back and I think
what we're going to talk about is buying down rates, right,
I want to talk about is it worth it to
pay the extra money to try to get as close
as you can to those fantastic pandemic rates.
Speaker 1 (17:45):
When we come back, you're listening to KFI AM six
forty on demand.
Speaker 2 (17:49):
Justin Warsham here talking Southern California with real estate Sorry,
with my guest Christine Hatch from the Mortgage Group. She's
a mortgage broker, and last break we were talking about
common questions that you get and how to what credit
score has, how that impacts it. But now I want
to talk about rate, right, because it's the thing. It's
(18:10):
probably don't let me put words in your mouth, Christine's
probably the most annoying question that you get as a lender,
not because you think it's a dumb question, but people
always want to know what is the rate? But there's
so many variables, right, that go into the rate. It's
hard to answer that, is correct.
Speaker 8 (18:23):
I get that question all the time and fight go
score your down payment, the type of property, the loan program,
the term of the loan.
Speaker 9 (18:30):
Is it a fix it adjustable?
Speaker 8 (18:31):
All that plays a factor, and how the bond market
is performing plays a factor. So if someone says what's
my rate, I say, well, it depends, right, it's not
black and white because of all those variables. So you
have to be really careful on when you see advertisements
right at there, let's say online or at your big bank,
and they say, oh, get a five and a half
(18:53):
percent rate, Well, what's the catch ye, with what type
of down payment? With type of FCO score? All of
that plays a huge factor, and it's.
Speaker 2 (18:59):
Hard to because you can sit down with any lender
right and you can say these are the rate in
terms that I'm offering right now. But on average, it
takes a buyer three to six months to find a house,
even in this market, and so that all changes by
the time you get the contract right.
Speaker 9 (19:12):
And they get misled.
Speaker 8 (19:13):
And that's the one thing that buyers have that you know,
I want to know what my rate is, but it's
so hard to determine because absolutely, if it takes three months,
if it takes six months, well the market hopefully is
better by that time, right, But if it's not, then
you're stuck with thinking you're going to get this rate
and then come to find out it's different.
Speaker 2 (19:28):
So people often will ask me about they don't actually
it's not a lot, but the people who are like
really geeky, right, that really geek out about this stuff.
They always want to know about buying down the rate
because the rates are so much higher. What does that
look like? And can you give me like a top
level example of what where a scenario might make sense
to buy down the rate.
Speaker 8 (19:47):
So a buy down, there's a couple different buydowns. So
when you're buying down, you're paying points to buy down
the rate. It's typically you're paying one percent of the
loan amount to drop your rate, typically a quarter percent.
So let's say let's use round numbers on a five
hundred thousand dollars loan. To drop your rate a quarter percent,
you're going to pay one point, which is five thousand dollars.
(20:07):
So that might change your payment what eighty bucks a month?
So does it make.
Speaker 2 (20:11):
Sense You've got to pay twenty grand to get a
full percentage point? So if you're at a seven and
a quarter rate, it's twenty grand to get a six.
Speaker 8 (20:17):
And a quarter rate, right, So does it financially make
sense to pay five thousand dollars just to save eighty
dollars a month?
Speaker 7 (20:24):
Right?
Speaker 8 (20:24):
So I look at it from a financial strategy because
at the end of the day, a mortgage is a
financial strategy, that's really what it is. And do you
want the peace of mind of the lower payment regardless
of how much it's going to cost you, or would
you rather be a little bit smart with your money
and say, well, I'll save that five thousand dollars or
that twenty thousand dollars maybe for home improvements or my
(20:44):
emergency fund.
Speaker 9 (20:46):
Take the slightly higher rate.
Speaker 8 (20:47):
When rates come down, we rewrite the mortgage refinance, take
advantage of the lower rate, lower payment.
Speaker 2 (20:52):
And I've seen you talk to our clients, mutual clients
that we've had that you talk about like, well, how
long do you think because it if you if there's
a chance that you're not going to be in that
house for five, ten years or more. Right, you could
be putting forty sixty thousand dollars to buy down that example,
which is a very low price, right because we're talking
about a five hundred thousand dollars loan amount. More likely
(21:13):
your loan is north of a million dollars in this market, right,
So double all these numbers really, So you're talking sixty
to eighty thousand dollars to try to buy down two
percent on your rate to get probably a five and
a quarter rate. So you've paid all of that money
and then something happens, right, you get a job change.
Now you're moving out of that house. You don't get
to take that rate with you. So you've paid that
(21:34):
money to buy down that rate without experience the benefit of.
Speaker 9 (21:36):
It, exactly.
Speaker 8 (21:37):
Or what if rates take down a year from now,
two years from now, where you can get that five
and a quarter percent rate.
Speaker 9 (21:43):
You just spent all this money up front, right.
Speaker 2 (21:45):
I've never even thought of that as being an option
because rates have been so low through most of my career.
Speaker 8 (21:50):
Yeah, that's right, and most homeowners actually refinance within the
first five years, whether they refinance to a lower rate,
they go from an adjustable to a fix, whether they
cash out, shortened the term lengths in the term. So
you're probably going to be touching your mortgage within those
first five years. And if you did spend all that
money up front, well, now you just you.
Speaker 2 (22:09):
Just spend all that money for nothing exactly. The other
there's a program that came out after the rate hikes
because I think lenders were like, oh crap, there's nothing
out there, there's no way we could do it, and
everybody was like the Fed just raised the rate, like
it went from three percent all the way up to
six at that time, and so they put out a
two to one buy down. Can you talk a little
bit about that.
Speaker 8 (22:28):
I love this program. Yeah, So in essence, what you're
doing is you're buying down the rate those first two years.
So the two stands for a two percent lower the
first year, the one stands for a one percent lower
the second year. So let's just say, hypothetically speaking, your
rate is seven percent today on a thirty year fixed mortgage.
That first year you would be at five percent, the
second year you would be at six percent, and then
(22:50):
you're three through thirty you would be at seven percent.
So the benefit of that is you're going to get
into the house with a more comfortable payment, and hopefully
within those first three years you refinance out of it, right,
hopefully rates go down to where you can rewrite the mortgage.
It's a fantastic way for people that are worried about
their mortgage payment being high right at that seven percent,
(23:11):
get into it now, and then we monitor the rates
over these next two to three years and hope that
right cross our fingers, hope that we can refinance you
and get the lower and not even see that seven
percent rate.
Speaker 2 (23:25):
And as a realtor, what I like is that this
is a way that you could put your you could
finance your buydown because what you do, what I do
with clients who want to do a two to one
buy down is usually it's about fifteen to twenty thousand.
Speaker 3 (23:34):
Is that a fair guessimate of price to do?
Speaker 8 (23:36):
That depends on your loan size and the purchase price
how much you're putting down, but gets.
Speaker 2 (23:40):
Somewhere around there for most of the places here in
southern California. So what I encourage my clients to do
is they throw on that extra fifteen to twenty thousand
dollars into their purchase price and then ask for that
credit because part of the term to get that two
to one buy down is it does have to come
from the seller as a credit, right correct.
Speaker 8 (23:56):
So let's say the properties listened for eight hundred thousand,
you offer eight fifteen with a fifteen thousand dollars sellar credit,
you accomplish the buydown, the seller still nuts that eight
hundred thousand that they wanted right as their price there go.
Speaker 2 (24:08):
So you've paid for it, like you financed the credit,
but a lot of times when people find out about it,
they want to, like say, make a list price offer
at eight hundred thousand, and they want that twenty thousand
dollars credit, which feels like a little bit of a
slap in the face if you're the seller, going, well, really,
you're only you're offering seventy eighty. That's what you're offering me.
And so that's why I always tell it if you can,
like push it up now. During the break though, before
(24:28):
we let you go, we were talking about you you
are a fan of condos and townhomes for first time
home buyers.
Speaker 8 (24:35):
I actually am, yeah, so I actually bought my first
property as a condo. I think it's a great stepping
stone to home ownership because the price point is slightly
lower than single families. So I would hate for people
to not get into home ownership because they think they
can't afford it. Now, with all the stuff that's going
on with Hway's and California law, I think it does
(24:56):
make it a little bit trickier for condos to get finance,
but still a great stepping stone, especially if you can
build that equity over the next three to five years you,
let's say fifty one hundred thousand equity, you sell that property,
you then have a bigger down payment for your next property,
which hopefully then will be a single family home.
Speaker 2 (25:14):
And admittedly I gave it a Google, and this is
a very quick google. I would love to dig a
little bit deeper because this is really just the first run.
But in Orange County, the median house price for a
condoor a town home is eight hundred and seventy one
thousand dollars, whereas a single family home is one point
four million dollars, which I think feeds right into your example.
But when we start to account for LA County, I
don't know how these condo and townhome prices are so
(25:35):
high or the single family. The single family rate kind
of seem makes sense, but it says the median condo
price in LA is eight hundred and sixty four thousand,
and my only guess is that LA must have a
lot more amenities or something that's driving those prices up.
Speaker 3 (25:48):
And the median house price is nine hundred and.
Speaker 8 (25:50):
Eighteen Yeah, so now if you're comparing that price point,
maybe go with a single family that would make more sense.
But at Orange County, with that big of a difference
in condo versus single family condo is a great opt.
Speaker 2 (26:00):
But I would bet in La that to get that
nine hundred and eighteen thousand dollars house, you're probably living
in a place that you're not going to want to
be living maybe.
Speaker 8 (26:07):
A one to one right, a bedroom, one bath.
Speaker 2 (26:09):
But I would venture a guest that if you're buying
an eight hundred and sixty four thousand dollars condo or
town home anywhere in LA, that's a really nice condo
or town Yeah.
Speaker 9 (26:17):
You're probably sixteen hundred or sixteen.
Speaker 2 (26:19):
Hundred square feet, three bedroom, two bath and a pool
and a gym in of you probably. Yeah, Thanks Christine,
I appreciate How could people find you? You got a website
and give social media handles? How can they find you?
Speaker 8 (26:30):
Yes, my website is www. The Mortgage GROUPCA dot com
and my social media you can find me on Instagram
at CTHELETTERC dot Mortgage sister, and I am on Facebook
as well under Christine Hatch.
Speaker 2 (26:42):
What I love about Christine is Christine is the kind
of person. We both have said this to clients. She
will sit down with a person and educate them and
talk them through stuff. So what we both are like
big fans of We don't want you to come to
us just when you think you're ready, when you're just
starting to think about it, start talking to a lender
that you trust just to get the information, and someone
like a Christine or myself will help you build a
(27:02):
plan to get that home.
Speaker 3 (27:04):
Yeah.
Speaker 8 (27:04):
I always tell people, if you have the slightest thought,
even if you don't think you're going to buy for
two or three years, start that conversation today because you
can start to put a game plan in place and
then work towards that over these next two three years,
rather than waiting and thinking, I'm just going to talk
to you know, Justin or myself right when I'm ready
to buy. So it's always better put your ducks in
(27:25):
a row while in advance and you'll be in good ship.
Speaker 3 (27:27):
Yeah, you're not wasting our time. People think you're wasting
on them. It all right.
Speaker 2 (27:30):
When we come back, I want to talk about more
ho waves. We've got a great huaight talkback question, and
then I also want to talk a little bit about
listing prices and what they mean.
Speaker 1 (27:39):
You're listening to KFI AM six forty on demand.
Speaker 2 (27:43):
Justin Worsham talk in Southern California real Estate. We got
a great talkback question that I want to hit first
before we get into listing prices.
Speaker 3 (27:49):
Can you play that for me? Robin, I justin love
the show.
Speaker 8 (27:52):
My question is I have a town house and what's
to deal with.
Speaker 9 (27:57):
They just keep raising the ho way?
Speaker 7 (28:00):
Are they allowed to do that? And is there a.
Speaker 9 (28:03):
Cap at some point? Because now it's half.
Speaker 5 (28:06):
Of my mortgage?
Speaker 7 (28:07):
Can you give me some assistance?
Speaker 3 (28:09):
Thanks, have a great day.
Speaker 2 (28:10):
I'm gonna try and it's I'm so glad you asked
this question because it reminded me to do some research
into it, because I was literally talking about this yesterday
with clients that were considering getting a condo or a
town home instead of a single family home. And here's
what I found. You're gonna want to talk to a lawyer.
I'm just a license broker. I'm not a lawyer, so
I should not be giving legal advice. But the cap,
according to what the California Civil Code is that they
(28:32):
can only raise it up to twenty percent over the
previous year's assessment. Now, what I don't know and what
you might want to talk to a lawyer or do
some more research into is that is that twenty percent
overall or just the monthly cost or whatever. And then
the other fun fact I found was that they can
they can do a special assessment up to five percent
of the annual budget of the h away without homeowner approval.
(28:54):
So if you get hit with a special assessment that's
more than five percent of the annual budget for the
h away, then they need to get your approval. And
this is part of what I was saying too that
I have concerns about the h aways is that they
can just eight people in a room decide one day
that they're going to raise your dues and you don't
really have a lot of say in that. Now, you
could be the person who's like, I'm going to be
the president and that's how I'm going to regulate that,
(29:16):
But I again don't I don't know that how much
control you're going to have. What I will tell you
is that more than likely, if your town home is
here in southern California, the reason that your hays are
going up is insurance costs. I would, I would it's
got to be insurance costs, because I think the property
taxes a yeah, they're all broken up by the individual owners.
So it's only insurance costs, very rarely unless they're talking
(29:38):
about doing some kind of a major improvement down the road.
I think it's because their insurance costs are going up
and it's crazy for them.
Speaker 3 (29:45):
Thank you.
Speaker 2 (29:46):
And the other thing I want to talk about before
we get to Chris Merrill, who's coming up here next
with his show, is listing prices. This was actually a
question I asked people at open houses before I did
the show. I asked what they thought, and this is
something that I don't know if Christine Hatch is still
here with me with the mortgage group, but the people
are confused by the listing price. And I think that
the listing price is it was at some point was
(30:08):
probably intended to be some kind of a representation of value,
and I think that's kind of gone away. I think
now it's more of just a marketing strategy. The best
example was that I saw a home that was listed.
Does it mean oh, I saw a home that was
listed at eight ninety nine and it was way low
that house should have been. It was going to sell
for at least a million fifty at least one point one.
(30:29):
But when you look at the most common listed prices
in the in the city that it was in, which
it happened to be Burbank, that those were the most
common spots, and so it was it was their way
of getting the most eyes on it. And it was
during the pandemic where you could do that. You could
list a house for a dollar and the interest would
just drive it up. But more recently, because the market
is slow, I've seen people try to list houses more
(30:51):
conservatively and if you have a seller who's not patient,
if they're not if they're anxious, then they and they
might take an offer early. I was able to Arstine
actually helped these clients. But we were able to get
a house for sixty thousand dollars below the appraised value
on the home, just because the realtors had a strategy
of they wanted to list it a little low to
let the interest drive it up. And we just came
(31:12):
in early, right after the first weekend, and the seller
was like, well, I think this is going to be
as good as it's going to get, and it's close enough,
and so we did it. We didn't offer list. We
offered like twenty k above lists, just to show them
that we mean business. You think I missed anything in there, Christine, No,
I think.
Speaker 9 (31:25):
You're absolutely right.
Speaker 8 (31:26):
List price doesn't necessarily mean that's what the home is worth, right, Yeah, So.
Speaker 2 (31:29):
I always tell people try not listen to your realtor,
try not to pay too much attention to a list
price on that one. Chris Merrill is here. He is
coming up in the next hour. Chris, what are you
talking about in your show, sir? Well, first of all,
I guess hey, I'm really enjoying listening to your show.
Oh thanks, man, that mayes a lot. You're like a professional,
You're like the real deal. I'm just here being a
weekend warrior ing.
Speaker 5 (31:48):
I know. No, It's funny because I cracked open Zillow
while you guys were talking, and I was like, is
there really.
Speaker 3 (31:54):
That much of a difference between condos and single thing? Oh?
Yeah there is. Yeah, there's a huge difference. Yeah.
Speaker 2 (31:59):
But those hoa man, they they oftentimes they don't they
make it now. They're just close enough where it's like
it has a lot of buyers going, it's just not
worth it. I feel like I want to push my
budget up just to get a single family home.
Speaker 5 (32:10):
Yeah, But then I lived in a neighborhood where somebody
decided to paint their They had kind of one of
those walls in front of their house, you know, or
there's a like not a fence, but like a solid wall. Yeah,
and they decided to put a mural on it. But
it was not well. They didn't have an HOA and
it was gauny as all hell. It was like a
wolf bang at the moon kind of thing. And and
(32:32):
then they painted their house this like a pastel pink.
Speaker 3 (32:36):
Oh, it's horrible.
Speaker 2 (32:38):
So you wished you had an HOA in that case
for design and Review as they call.
Speaker 5 (32:42):
The one thing I like about HOA is it gives
me a chance to tell other people what to do.
Speaker 3 (32:46):
Yeah.
Speaker 5 (32:47):
I'm a big fan of me having control over them. Yeah,
And I just love that and I hate giving that up.
So that's that's the one thing I'm doing. Hey, we'll
talk about the Grand Prix is in town and that
means that it's time to shoot somebody. So that's happening.
Tariffs are hitting us, and I appreciate that. You guys,
we're talking so much about tariffs. In fact, I'm going
to dive into the tariffs and the home prices of
what they're doing UH in southern California, and what they
(33:10):
are doing nationwide, and then what they're doing to industry
as well. We'll talk about that coming up in the
five o'clock hour, and we're going to open up our
talk back as well. We'll ask the question, what is
the one thing that you won't give up no matter
how expensive it gets? So I was talking to my son.
He's he's a jim He's I gotta go to the gym.
Is a jim rat.
Speaker 7 (33:28):
Yeah.
Speaker 3 (33:28):
He likes to throw some steel, Yeah, a pumps iron
like that.
Speaker 5 (33:33):
How old is he? He's twenty five? Yeah, I swear
he's twenty five going on fifteen. Yeah, But he says,
I'm not I'm not giving up. I'm not giving up
egg whites. I gotta have my egg whites and my
protein powders. And I thought that's really convenient because he
is paying a nominal rent and and I'm thinking, am
(33:55):
I subsidizing his protein powders and and UH and whites?
Speaker 3 (34:00):
Yes, you are, I think kind of am ernest.
Speaker 2 (34:02):
I mean, I actually have a sixteen year old, so
I feel like I was just talking about a thirteen
year old and my younger son is very fast and
loose with my money. Like today, Billiest example, today he
decided to have McDonald's delivered to the house instead of
having his older brother drive him there. And the only
reason I knew this is because I was sitting at
home preparing for this very show and he called.
Speaker 3 (34:23):
His mother, Chris.
Speaker 2 (34:24):
He called the mother and said, can you get I
want McDonald's delivered to me? And then when I found
I was like why, and he goes, well, if I
asked you, you would have said no.
Speaker 6 (34:33):
Right.
Speaker 5 (34:34):
He was right, He was totally right. Well, and then
are the terroriffs? Is the concern people are having? Is
that leading to more petty theft? Are we're going to
see resurgons in portpos Because I actually had about one
hundred and seventy dollars where the stuff stolen from me yesterday.
Speaker 3 (34:49):
I was very unpleased.
Speaker 5 (34:51):
And I haven't told my wife about it because I'm
kind of ashamed and and I'm afraid that she's going
to say, how could you have been so stupid?
Speaker 2 (34:57):
You know what I love is that you're saying this
on the radio where she's you just know, my wife
is also not listening.
Speaker 5 (35:04):
Are you kidding? My wife is like, did you meet Seacrest?
Speaker 3 (35:09):
I love Seacrest? When can I meet Seacrest? That's what
I get from my shot. Listen to this thing.
Speaker 2 (35:14):
I don't even know, no, but I like that. That's
I never would have thought. That's a great idea, Chris.
Not to not to suck up to you, but that's
a great idea. I never would have thought that tariffs
would have an impact on crime, like I never would
have even crossed my mind.
Speaker 3 (35:26):
I'm looking forward to it, man, Thank you so much. Funny.
Speaker 2 (35:28):
All right, Well, we'll see you guys next week again,
two to four. Right here more southern California real estate.
Speaker 3 (35:33):
Reach out to me.
Speaker 2 (35:33):
You could find me at home with Justin on Instagram,
or you could go to Justin Worsham dot com. If
you want to send me an email, you can find
my number anywhere out there. Just type it justin w
O R and then that'll spell the rest of my
name for you.
Speaker 3 (35:48):
Thanks to shout out to Richie and everybody.
Speaker 2 (35:50):
Robin Brigeta, I'm sorry I messed up your name again,
but I think I ended strong.
Speaker 3 (35:54):
I felt good about it. You did I did right.
Speaker 2 (35:56):
I rallied, I locked in, and I rallied and ill
him here.
Speaker 3 (36:01):
Yeah, you know what.
Speaker 2 (36:02):
I found success in betting people pop tarts. Richie scored
himself a family pack of pop tarts because I guess
the affordability next in correctly last week, thank you Christine
as well hit her up.
Speaker 3 (36:12):
Thank you guys very much.
Speaker 1 (36:13):
KFI AM six forty on demand
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