WEBVTT 1 00:00:01.720 --> 00:00:05.440 Welcome to Mortgage Talk with Mark Harriston, the program that 2 00:00:05.519 --> 00:00:09.000 not only talks about mortgages, taxes, and interest rates, but 3 00:00:09.080 --> 00:00:12.199 Mark and his guest talk real estate trends and your home. 4 00:00:12.439 --> 00:00:15.039 He also answers your mortgage questions to help you make 5 00:00:15.080 --> 00:00:19.800 the right financing or refinancing decisions. Now here's Mark Hairston. 6 00:00:20.000 --> 00:00:22.920 Happy to everybody, and welcome back to Mortgage Talk with Mark. 7 00:00:23.160 --> 00:00:25.719 And I'm really excited to bring back a guest who 8 00:00:25.800 --> 00:00:27.800 was on I don't know six months ago, maybe a 9 00:00:27.879 --> 00:00:33.159 year now here. Yeah, yeah, and it's by popular demand. 10 00:00:33.280 --> 00:00:35.640 Ken's back in the house with me, you know. 11 00:00:36.399 --> 00:00:37.920 Ken Renner, by Mark's demand. 12 00:00:38.439 --> 00:00:42.119 Yeah, mind demand. Ken Renners in the house with us today. 13 00:00:42.159 --> 00:00:44.240 And Ken has two ends, by the way, just to 14 00:00:44.280 --> 00:00:47.399 make sure we understand that part. But Ken is not 15 00:00:47.560 --> 00:00:50.759 only an expert at what he does in real estate. 16 00:00:50.840 --> 00:00:53.039 But I want to talk about your experience and welcome 17 00:00:53.079 --> 00:00:54.840 you back to the show because we have a lot 18 00:00:54.880 --> 00:00:57.479 to catch up on. You know, this has been a 19 00:00:57.560 --> 00:01:00.600 crazy couple of years, and you know, I really want 20 00:01:00.600 --> 00:01:02.719 to get your feedback on what's going on and let 21 00:01:02.719 --> 00:01:05.239 people know what's going on so they can make informed decisions. 22 00:01:05.239 --> 00:01:07.200 That's the whole point of the show is to help 23 00:01:07.200 --> 00:01:09.599 people make deformed decisions around their real estate or other 24 00:01:10.159 --> 00:01:13.280 things they need around their home. So welcome, Ken Rinder. 25 00:01:13.319 --> 00:01:13.920 Tell us about you. 26 00:01:13.920 --> 00:01:16.280 Shit, thank you, Mark. Yeah, we go way back, Mark. 27 00:01:16.319 --> 00:01:18.079 I think I met you in the early two thousands. 28 00:01:18.719 --> 00:01:22.000 We're doing some speaking and I think we're helping first 29 00:01:22.000 --> 00:01:24.400 time home buyers back in the day because that's where 30 00:01:24.400 --> 00:01:26.599 the market was kind of like where it's headed now. 31 00:01:27.159 --> 00:01:29.879 But I've been doing this now for four decades, forty 32 00:01:29.920 --> 00:01:32.319 two years. I got my first license in nineteen eighty three. 33 00:01:32.480 --> 00:01:34.000 You got me by two years. By the way, I 34 00:01:34.000 --> 00:01:34.920 know this is about fortieth. 35 00:01:35.159 --> 00:01:38.159 I got a little more gray hair, got good hair. 36 00:01:38.200 --> 00:01:40.519 I got a little bit more gray. You're catching up 37 00:01:40.560 --> 00:01:42.879 to you there. But yeah, so you've been forty years 38 00:01:43.120 --> 00:01:45.120 and we've been through it all. I mean, I've been 39 00:01:45.239 --> 00:01:49.480 through booms and bus in four different states, and really 40 00:01:49.480 --> 00:01:51.400 it's just a matter of what we're here to give 41 00:01:51.439 --> 00:01:54.079 people hope and that there is there are solutions, you know, 42 00:01:54.120 --> 00:01:56.480 And that's the whole thing is that you want to 43 00:01:56.480 --> 00:01:58.920 work with somebody who's been professional, it's been through one 44 00:01:58.920 --> 00:02:02.079 of these kinds of ups and downs and knows how 45 00:02:02.120 --> 00:02:04.519 to navigate the market and talk about financing. And I 46 00:02:04.680 --> 00:02:06.480 used to own a mortgage company. You've known there for 47 00:02:06.519 --> 00:02:07.280 many years, that's. 48 00:02:07.200 --> 00:02:07.799 Right, that's right. 49 00:02:08.080 --> 00:02:10.439 And so it's called River City. It was River City 50 00:02:10.439 --> 00:02:11.000 Home Loan. Now. 51 00:02:11.000 --> 00:02:12.520 I will always tell us about the name. I love 52 00:02:12.560 --> 00:02:14.000 the name. Take it. 53 00:02:14.199 --> 00:02:18.319 Yeah, well that's you can have it now. Yeah. I 54 00:02:18.360 --> 00:02:19.560 was going to write a book how to get out 55 00:02:19.560 --> 00:02:22.960 of the mortgage business there. So I've written some books 56 00:02:23.000 --> 00:02:25.639 and things like that, real estate books and some goals setting. 57 00:02:25.719 --> 00:02:28.680 Even have a book on Christian goal setting, which oh 58 00:02:28.719 --> 00:02:31.800 that's awesome called So it's so yeah, I like, I 59 00:02:31.919 --> 00:02:35.240 like to share, and I'd like to see but we're 60 00:02:35.319 --> 00:02:37.599 using my you know, my years of experience to be 61 00:02:37.599 --> 00:02:39.159 able to see over the horizon. I think that's what 62 00:02:39.240 --> 00:02:42.800 people why they gravitate to use me. Because when you 63 00:02:42.840 --> 00:02:44.680 have this many years like you do in the business, 64 00:02:44.719 --> 00:02:47.800 you you not only have you these networks of connections. 65 00:02:47.800 --> 00:02:50.400 We call it good old boys, right, you know that 66 00:02:50.479 --> 00:02:52.879 you just it takes years and years to develop. And 67 00:02:52.919 --> 00:02:55.120 so what's great about our vendors and people I've been 68 00:02:55.159 --> 00:02:57.840 working with when I picked when I call them, almost 69 00:02:57.960 --> 00:03:00.439 including you, almost every time they picked up the phone 70 00:03:00.439 --> 00:03:03.039 because they know there's going to be someone's going to 71 00:03:03.080 --> 00:03:04.919 be needing help on the out of line with right 72 00:03:05.120 --> 00:03:07.919 where transaction is going to happen. So yeah, So I've 73 00:03:07.919 --> 00:03:10.319 been doing a long time, over half a billion in sales. 74 00:03:10.439 --> 00:03:10.800 Wow. 75 00:03:11.400 --> 00:03:14.479 And a lot of that came thanks to the pandemic. 76 00:03:14.639 --> 00:03:18.120 So we I did one hundred and twenty million between 77 00:03:18.120 --> 00:03:21.639 twenty twenty and twenty twenty five, and that was almost 78 00:03:21.919 --> 00:03:24.960 near just about almost five hundred homes. Wow. So we 79 00:03:24.960 --> 00:03:27.000 were selling. We were just selling a lot of new construction, 80 00:03:27.080 --> 00:03:31.439 and we're taking advantage of the interest rate, atmosphere and everything. 81 00:03:31.439 --> 00:03:34.159 But we we kind of really stopped buying in Austin 82 00:03:34.280 --> 00:03:37.759 during that crazy time, stopped really focusing on Austin. We 83 00:03:37.800 --> 00:03:39.800 didn't stop buying it, but we stopped focusing on so 84 00:03:39.879 --> 00:03:42.960 much because between twenty twenty and twenty twenty two we 85 00:03:43.080 --> 00:03:43.919 got so crazy. 86 00:03:44.960 --> 00:03:46.199 If you didn't get prices in Austin. 87 00:03:46.280 --> 00:03:49.120 Yeah, prices in Austin from nineteen twenty nineteen to twenty 88 00:03:49.400 --> 00:03:52.120 twenty two probably went up, but it went about eighty percent, 89 00:03:52.639 --> 00:03:56.120 almost double. That's crazy. And that's that's that's ten well, 90 00:03:56.120 --> 00:03:59.680 it's ten years of appreciation crunched into two years, and 91 00:03:59.840 --> 00:04:02.120 so now we've had an adjustment down of about twenty 92 00:04:02.159 --> 00:04:04.240 percent from the very peak, which was June of twenty 93 00:04:04.280 --> 00:04:07.360 twenty two. So it's it's it's down twenty percent. That's 94 00:04:07.400 --> 00:04:08.960 what you see in the news, and that's what that's 95 00:04:09.000 --> 00:04:10.840 what that's where we're here to give the good news. Yeah. 96 00:04:11.360 --> 00:04:13.759 Yeah, I'll want to back up just for a second. Yeah, 97 00:04:13.759 --> 00:04:15.919 because you mentioned some just a minute ago. That's that's 98 00:04:15.960 --> 00:04:22.199 so important because people don't realize how much experience matters. Yeah, 99 00:04:22.879 --> 00:04:25.560 and going, this is my fourth recession, if you will. 100 00:04:25.839 --> 00:04:27.399 You know, I went through one in the eighties and 101 00:04:27.439 --> 00:04:29.519 I thought we'd never get out of it, and then 102 00:04:29.560 --> 00:04:31.720 by ninety it started to turn. And then you know, 103 00:04:31.759 --> 00:04:34.160 Austin has always done well over time, over time, you know, 104 00:04:34.160 --> 00:04:36.759 it's never been hurt. And but you know, for you 105 00:04:36.839 --> 00:04:38.720 to come on and talk about your experience from that 106 00:04:38.800 --> 00:04:42.000 perspective looking across the horizon, right, you know, what could 107 00:04:42.040 --> 00:04:44.680 be possible here, you know, in the next couple of years. 108 00:04:44.879 --> 00:04:47.120 Yeah, well, a lot of that has depends on a 109 00:04:47.160 --> 00:04:50.519 lot of different factors. So I'll just finish what I 110 00:04:50.560 --> 00:04:52.319 was going to say about the about the twenty about 111 00:04:52.319 --> 00:04:55.160 the twenty percent drop you see in the news that. 112 00:04:55.240 --> 00:04:56.040 Which is a real thing. 113 00:04:56.120 --> 00:04:58.240 It's a real thing. We're not but it's twenty percent 114 00:04:58.319 --> 00:05:01.120 from almost one hundred percent. Yeah, right, So if you 115 00:05:01.160 --> 00:05:04.079 bought in twenty nineteen twenty, you had almost one hundred 116 00:05:04.079 --> 00:05:06.120 percent value increases and so you drop twenty percent, so 117 00:05:06.160 --> 00:05:08.680 you're still up eighty percent. Right, So it's great anybody 118 00:05:08.800 --> 00:05:11.279 has their houses. But before twenty one or twenty, I'd 119 00:05:11.279 --> 00:05:13.680 be glad to talk to you because you got equity. Now, 120 00:05:13.680 --> 00:05:15.759 the ones that bought in twenty two, I really I 121 00:05:16.120 --> 00:05:18.240 pray with them and let them cry on my shoulder 122 00:05:18.279 --> 00:05:20.720 because they probably they could have probably lost their down 123 00:05:20.720 --> 00:05:21.959 payment or a good portion. 124 00:05:21.680 --> 00:05:23.519 Of it, or they could be upside down. 125 00:05:23.600 --> 00:05:26.360 And some of them are upside down, which means means 126 00:05:26.439 --> 00:05:28.920 like actually, when you owe more than the houses work. 127 00:05:29.240 --> 00:05:32.279 And that's what happened in the seven eighth. Don't know 128 00:05:32.360 --> 00:05:34.319 that that was all. That was a mortgage driven crisis, 129 00:05:34.399 --> 00:05:38.040 not not what we're dealing with, that's right, and so 130 00:05:38.040 --> 00:05:40.959 so that that was that was, that was where prices dropped, 131 00:05:41.000 --> 00:05:44.519 and so we went through that and everybody, the whole 132 00:05:44.519 --> 00:05:46.759 industry was it was. That was a tough time. Now, 133 00:05:46.759 --> 00:05:47.800 that was an apocalypse. 134 00:05:48.120 --> 00:05:48.439 We're not. 135 00:05:48.720 --> 00:05:50.000 We're not an apocalypse now. 136 00:05:50.759 --> 00:05:53.839 Correction correction, normal economic correction, right. 137 00:05:53.800 --> 00:05:56.399 Right, but that still hurts, you know, and they're apparently 138 00:05:56.439 --> 00:05:58.360 I'm feeling it. I understand there's going to be somewhere 139 00:05:58.360 --> 00:06:01.399 between five and six million loans that are going to 140 00:06:01.439 --> 00:06:03.600 be in default here. Pretty I didn't know that that's 141 00:06:03.639 --> 00:06:05.199 that's a stat that came out. It kind of blew 142 00:06:05.199 --> 00:06:07.759 me away, but that that's the US crossed the nations 143 00:06:07.800 --> 00:06:09.959 around the country shore. Yeah, so Austin itself, you know, 144 00:06:10.000 --> 00:06:12.160 we have our medium price is about flat. 145 00:06:12.199 --> 00:06:14.720 Let's up there on the statue. You're a stat guy. Yeah, 146 00:06:14.759 --> 00:06:16.000 Well it's good, importantly. 147 00:06:15.680 --> 00:06:19.279 Important, Yeah, because it also it feeds where the future is. 148 00:06:19.399 --> 00:06:21.000 That's what people come to me. Let's see just a 149 00:06:21.040 --> 00:06:23.439 little bit over the horizon, because we like Wayne Gretzky, 150 00:06:23.480 --> 00:06:24.800 I'm not we're not going to go where the where 151 00:06:24.800 --> 00:06:26.800 the puck is. We're going to go where it's going, right. 152 00:06:26.959 --> 00:06:27.160 Sure. 153 00:06:27.399 --> 00:06:29.800 So so right now we're looking to be the medium 154 00:06:29.800 --> 00:06:32.720 price and Austin MSA is four forty nine, about four fifty, 155 00:06:33.199 --> 00:06:35.240 and we talked about before the show. It made it 156 00:06:35.240 --> 00:06:37.800 almost a six hundred at the peak, five five seventy, 157 00:06:37.879 --> 00:06:40.839 I believe, and so that's only down like way, what 158 00:06:40.920 --> 00:06:43.160 media is media is half the homes are selling for 159 00:06:43.160 --> 00:06:45.439 more than half our CNC for less. So we have 160 00:06:45.600 --> 00:06:48.120 it was about down one point six percent. So it's 161 00:06:48.120 --> 00:06:50.800 basically flat from what it was last year. And so 162 00:06:50.839 --> 00:06:53.199 it's not it hasn't hasn't gone down a whole lot 163 00:06:53.240 --> 00:06:55.879 hasn't gone up. And that's that's probably if everything remained 164 00:06:55.920 --> 00:06:58.319 the same, it's probably what would happen. But it also 165 00:06:58.360 --> 00:07:00.959 depends on inventory and what sellers end up doing, because 166 00:07:01.000 --> 00:07:04.839 right now they're flooding the market with with properties for sale. 167 00:07:05.040 --> 00:07:07.399 You've got two different kinds of sellers, resellers and you've 168 00:07:07.399 --> 00:07:11.959 got you've got your builders. Builders are good motivated sellers 169 00:07:12.000 --> 00:07:13.160 because they have to sell. 170 00:07:13.000 --> 00:07:15.480 Their product, right and they have to keep building too. 171 00:07:15.360 --> 00:07:18.920 And they have to keep building. Now. They will pull back, sure, 172 00:07:19.000 --> 00:07:21.680 but they can't just turn it. They can't just turn 173 00:07:21.720 --> 00:07:23.000 the lights off, right because they have. 174 00:07:22.959 --> 00:07:24.399 Because they already purchase these properties. 175 00:07:24.399 --> 00:07:26.759 They got land, they got they got labor, they've got 176 00:07:26.759 --> 00:07:28.519 all their crews and they got it. And a lot 177 00:07:28.560 --> 00:07:31.000 of them are just cutting their margins. And that's where 178 00:07:31.040 --> 00:07:32.800 we're seeing. I mean, we talked about it before the show. 179 00:07:32.839 --> 00:07:35.000 They had up to words of twenty two percent margins 180 00:07:35.000 --> 00:07:37.439 and now they're down to you know, maybe thirteen or 181 00:07:37.480 --> 00:07:40.040 fourteen percent. They're using that difference in margin to buy 182 00:07:40.079 --> 00:07:42.879 the interest rates down, get them down in the in 183 00:07:42.639 --> 00:07:47.120 the in the fives and the fours. They're they're slashing prices. 184 00:07:47.360 --> 00:07:49.439 They because they do have margin, a lot of And 185 00:07:49.439 --> 00:07:52.199 that's the thing if you are a seller in this market, 186 00:07:52.279 --> 00:07:54.759 you need to be realized that I tell them my 187 00:07:54.759 --> 00:07:57.759 clients is if you if you don't need to sell, 188 00:07:57.839 --> 00:08:00.560 it's probably not a good time to sell. So because 189 00:08:00.680 --> 00:08:02.839 those that are actually selling, they need to sell. 190 00:08:02.839 --> 00:08:05.199 They need to get out. Yeah, and they're relocated, or 191 00:08:05.240 --> 00:08:06.959 they're right job. 192 00:08:07.079 --> 00:08:08.639 And a or yeah I got a new job and 193 00:08:08.639 --> 00:08:11.480 we have all we have those conversations. Okay, so you 194 00:08:11.480 --> 00:08:14.480 you know you've got to move, then you know then 195 00:08:14.519 --> 00:08:16.600 you then you need to sell. So the thing is 196 00:08:16.600 --> 00:08:18.279 you have to you have to price it right, you 197 00:08:18.319 --> 00:08:20.160 have to stage it right, you have to talk about 198 00:08:20.199 --> 00:08:23.519 incentives you and these are why you need that experience 199 00:08:23.600 --> 00:08:24.199 real turn. 200 00:08:24.040 --> 00:08:24.959 They've been through. 201 00:08:25.040 --> 00:08:28.000 These can have these hard conversations like I'm having every 202 00:08:28.079 --> 00:08:30.360 day that you don't want to chase the market down 203 00:08:30.519 --> 00:08:31.040 right and. 204 00:08:31.120 --> 00:08:32.000 Get ahead of the market. 205 00:08:32.240 --> 00:08:34.639 Yeah, the stats are that you know, back in January, 206 00:08:35.320 --> 00:08:38.039 back in December January, we had ninety six hundred homes 207 00:08:38.039 --> 00:08:39.240 on the market, which isn't. 208 00:08:39.000 --> 00:08:41.759 Best a few months ago yes, oh wow, but. 209 00:08:41.720 --> 00:08:45.000 Now we have fourteen thousand and six, five thousand, five 210 00:08:45.039 --> 00:08:48.919 thousand more homes on the market. So we're at fourteen 211 00:08:48.919 --> 00:08:50.399 thousand and six seventy three as May. 212 00:08:50.799 --> 00:08:51.679 And what does that cover? 213 00:08:51.759 --> 00:08:56.000 What area? The five county Yeah, Williamsey County, Williams Travis, 214 00:08:56.080 --> 00:09:00.519 you know, yeah, got home all so so that's the 215 00:09:00.559 --> 00:09:02.799 five county radius. So that that is a very It's 216 00:09:02.960 --> 00:09:06.200 up seventeen point five percent in inventory from the previous year. 217 00:09:06.679 --> 00:09:09.360 That's those are that's a that's a big number. Now 218 00:09:09.360 --> 00:09:12.159 look at the closed sales. There was only three three 219 00:09:12.200 --> 00:09:15.120 thousand closed sales. So if they keep putting, then it 220 00:09:15.240 --> 00:09:17.360 was fifty seven hundred new listed listing. So you have 221 00:09:17.720 --> 00:09:19.919 they have two thousand month twenty seven, you have twenty 222 00:09:19.960 --> 00:09:23.639 seven hundred more listings then you have closed sales. So 223 00:09:23.799 --> 00:09:27.200 for just the month, just say yeah, right, so you're 224 00:09:27.240 --> 00:09:29.559 you're looking at you're looking at fourteen thousand, six hundred 225 00:09:29.600 --> 00:09:31.720 and that number will probably go up, be on fifteen 226 00:09:31.759 --> 00:09:35.720 closer to sixteen thousand, and that that that's where supplying 227 00:09:35.720 --> 00:09:37.919 demand is going to stay. Say say that prices are 228 00:09:37.960 --> 00:09:40.440 going to have to adjust down. And so what I'm 229 00:09:40.440 --> 00:09:42.759 telling my clients is get ahead of that adjustment. You know, 230 00:09:42.919 --> 00:09:45.399 take take take your take it what what's worth? 231 00:09:45.559 --> 00:09:46.399 Take your all. 232 00:09:46.399 --> 00:09:48.120 We're saying really is if you're going to listen to, 233 00:09:48.120 --> 00:09:50.840 probably listened five percent under the last comp and if 234 00:09:50.840 --> 00:09:52.600 you look at the close to the average close to 235 00:09:52.639 --> 00:09:55.639 list price ratio is ninety four percent. So even at 236 00:09:55.639 --> 00:09:58.799 a good price, they're still taking another five percent. So 237 00:09:58.799 --> 00:10:00.320 if you have a five hundred thousand dollars listing, you 238 00:10:00.360 --> 00:10:02.200 should be listening at four seventy five right now, and 239 00:10:02.240 --> 00:10:04.919 you probably may want to. And that's exactly what's happened 240 00:10:04.919 --> 00:10:05.879 in the Santa Rita ranch. 241 00:10:06.639 --> 00:10:07.679 Were you listing that I have? 242 00:10:07.759 --> 00:10:11.720 Yeah, a great property on Glen Arbor and this property 243 00:10:11.759 --> 00:10:15.480 is absolutely amazing, unique house backing up to a lake. 244 00:10:15.879 --> 00:10:18.759 It's twenty four hundred square foot, four bedroom, three bath 245 00:10:18.799 --> 00:10:21.360 with a study, three car garage, Perry built home, you know, 246 00:10:21.480 --> 00:10:25.159 custom house, yea, And we listed it for four ninety five, 247 00:10:25.200 --> 00:10:27.639 gotne offer right away, but it didn't pan out. And 248 00:10:27.720 --> 00:10:31.120 then and then an how we're at four fifty yeah, 249 00:10:31.200 --> 00:10:34.039 and and so this is this is unprecedented that you 250 00:10:34.159 --> 00:10:36.919 took to took ten percent off and and we're still 251 00:10:36.919 --> 00:10:38.840 not seeing a contract, right, So. 252 00:10:38.759 --> 00:10:41.679 This was a good reason around that is holding cost. 253 00:10:42.080 --> 00:10:44.080 You know, you maybe got a mortgage payment. If not 254 00:10:44.200 --> 00:10:46.399 even that, you're gonna have tax insurance holding cost. 255 00:10:46.559 --> 00:10:46.720 Yeah. 256 00:10:46.799 --> 00:10:48.679 Yeah, So there's expenses holding a property. 257 00:10:48.799 --> 00:10:51.440 Yeah yeah, yeah, And and and properties are and they're 258 00:10:51.440 --> 00:10:53.440 not meant to be vacant. They they're meant to be 259 00:10:53.480 --> 00:10:55.080 you know, the dishwasers are meant to be run, you know. 260 00:10:55.440 --> 00:10:57.000 So so that's the thing. Then we have to have 261 00:10:57.039 --> 00:10:58.919 the conversation, Okay, you can leave it vacant or do 262 00:10:58.960 --> 00:11:00.960 you want to rent it out? And you might have 263 00:11:01.000 --> 00:11:03.279 a three percent interest rate on that. And that's the 264 00:11:03.320 --> 00:11:06.519 conversation I have because I'm an investor and I've kept 265 00:11:06.559 --> 00:11:08.519 a bunch of my previous homes I lived in and 266 00:11:08.559 --> 00:11:10.600 I still have the one in Round Rock. And what 267 00:11:10.679 --> 00:11:12.720 it is I'd teach my first time home buyers, this 268 00:11:12.759 --> 00:11:14.840 would be a great proper for you to keep. Yeah, 269 00:11:14.919 --> 00:11:17.559 ask your grandfather, ask your father, or your grandfather. You know, 270 00:11:17.879 --> 00:11:20.759 if would would you keep your first house? Absolutely, And 271 00:11:21.120 --> 00:11:26.240 I've never heard anybody Usually it's one of those like heck, yeah, 272 00:11:26.440 --> 00:11:28.600 you know, give me another one. You know. 273 00:11:28.720 --> 00:11:31.679 Well, at first house was in nineteen ninety for ninety 274 00:11:31.679 --> 00:11:34.240 thousand dollars. Yeah, twenty four and oh kill twenty four 275 00:11:34.240 --> 00:11:35.960 and scare feet off waven Ken, you know, yeah, yeah, 276 00:11:36.039 --> 00:11:39.080 it's worth more than that today. Yeah, I sold. 277 00:11:38.919 --> 00:11:41.120 It, Yeah, I do so. Don't you wish she kept 278 00:11:41.159 --> 00:11:43.519 all those houses? So that's what that's what really started 279 00:11:43.559 --> 00:11:45.519 a whole business plan for me that I started working 280 00:11:45.519 --> 00:11:47.559 with first time homebars. But then I found out those 281 00:11:47.559 --> 00:11:50.200 first time homebar product that the entry level housing was 282 00:11:50.240 --> 00:11:52.720 great for investment. So in the nineties I started doing 283 00:11:52.759 --> 00:11:55.720 presentations at Renaissance Hotel, and you saw that doing marketing, 284 00:11:55.720 --> 00:11:58.360 I would have first time home buyers on the first hour. 285 00:11:58.399 --> 00:12:01.759 In the second hour, I would have investors the same product, 286 00:12:01.799 --> 00:12:05.279 different buyer, Yeah, yeah, and and so yeah. And then 287 00:12:05.360 --> 00:12:07.759 what happened in the late late nineties things slowed down 288 00:12:07.799 --> 00:12:10.320 here and so I but I saw the market in 289 00:12:10.360 --> 00:12:12.759 California was way up here in accelerating while we were 290 00:12:12.840 --> 00:12:13.120 kind of. 291 00:12:13.039 --> 00:12:14.759 Which is for you hail from is California. 292 00:12:14.840 --> 00:12:17.559 Yeah, from California. So I've got a big I got roots. 293 00:12:17.840 --> 00:12:20.600 I was born in San Mateo, so so I have 294 00:12:20.639 --> 00:12:22.639 a big I have more. I actually have more clients 295 00:12:22.639 --> 00:12:25.399 in California and Silicon Valley in southern California and back 296 00:12:25.440 --> 00:12:28.519 east and Chicago and other cities than I do actually 297 00:12:28.559 --> 00:12:32.879 in our hometown because I go out there and visit 298 00:12:32.919 --> 00:12:35.399 with them and shake hands and kiss babies and and 299 00:12:35.440 --> 00:12:37.200 make them feel good about you know, you could. It's 300 00:12:37.200 --> 00:12:39.320 about five to one ratio. You can buy five houses 301 00:12:39.320 --> 00:12:42.080 for the price of one, so and that and that 302 00:12:42.080 --> 00:12:45.039 that's very attractive. We've had many people that have sold 303 00:12:45.080 --> 00:12:47.320 their their Bay Area property or their one that they 304 00:12:47.399 --> 00:12:50.840 inherited or whatever and bought ten ten houses and frame 305 00:12:50.960 --> 00:12:52.480 clear tax text to first. 306 00:12:52.720 --> 00:12:53.919 That's a beautiful thing. 307 00:12:54.000 --> 00:12:55.759 Yeah. Yeah, so I one guy, we went from thirty 308 00:12:55.799 --> 00:12:58.799 six hundred income for the his Salmonteo house and he 309 00:12:58.879 --> 00:13:00.559 went to when he closed with me, there was a 310 00:13:00.600 --> 00:13:04.320 thirteen thousand, six hundred gross in cole times for the 311 00:13:04.360 --> 00:13:05.200 same equity. 312 00:13:05.519 --> 00:13:07.360 And that speaks to another reason people may want to 313 00:13:07.399 --> 00:13:10.000 hire you because you have a larger network. Yeah, that's 314 00:13:10.080 --> 00:13:12.879 nothing networked in Central Texas. Yes, your networked all over 315 00:13:12.879 --> 00:13:13.159 the coast. 316 00:13:13.240 --> 00:13:16.399 Yeah, yeah, and then and we we That's another strategy 317 00:13:16.399 --> 00:13:19.159 of for me going to California. There's so many relocations 318 00:13:19.200 --> 00:13:21.120 coming this way, as I wanted to be the go 319 00:13:21.200 --> 00:13:23.480 to person, get in front of them while they're there, 320 00:13:24.399 --> 00:13:26.000 rather than wait for them to get here, because usually 321 00:13:26.039 --> 00:13:28.080 get hooked up with somebody already by that time. So 322 00:13:28.440 --> 00:13:32.480 it's been very it's been a very lucrative and enjoyable. 323 00:13:32.799 --> 00:13:35.919 And yeah, lots of cultural buyers. So I've learned a lot. 324 00:13:36.000 --> 00:13:39.399 And oh sure, and I really under I really enjoy 325 00:13:39.919 --> 00:13:42.559 the differences in cultures. And that's what makes America great 326 00:13:43.320 --> 00:13:45.639 is that that they they they a lot of the 327 00:13:45.720 --> 00:13:48.360 different cultures think differently about real estate. And I like 328 00:13:48.399 --> 00:13:52.240 the way they think they like real estate, yes, yeah, 329 00:13:52.240 --> 00:13:54.240 and they hold on to it a lot of smart 330 00:13:54.279 --> 00:13:58.720 bar Yeah, they're smart buyers. They there and their homework, well, 331 00:13:58.759 --> 00:14:00.559 you know a lot of people came from other countries. 332 00:14:00.720 --> 00:14:03.279 They they had to work, they had to be really 333 00:14:03.360 --> 00:14:06.759 kind of the most educated, the most the most motivated, 334 00:14:07.559 --> 00:14:10.360 uh disciplined. Uh, and to be able to get. 335 00:14:10.159 --> 00:14:12.039 Here, right because they won the lottery. 336 00:14:12.200 --> 00:14:13.799 Yeah, you kind of do. That's kind of the that's 337 00:14:13.879 --> 00:14:15.559 kind of the you know, a lot of we joked 338 00:14:15.559 --> 00:14:17.559 as they their parents always say you're going to be 339 00:14:17.559 --> 00:14:22.919 an engineer or a doctor. There is no other choice, right. Yeah. 340 00:14:23.000 --> 00:14:25.960 A good friend of mine who has been uh in 341 00:14:25.960 --> 00:14:28.000 industry a long time as a software engineer, went to 342 00:14:28.039 --> 00:14:30.080 work for Apple recently. He says, Mark, you know, now 343 00:14:30.080 --> 00:14:32.879 I go into the to the dining area or whatever, 344 00:14:32.919 --> 00:14:36.320 and probably three out of four are from different countries. Yeah, 345 00:14:36.399 --> 00:14:38.600 you know that have come here for for the opportunity 346 00:14:38.639 --> 00:14:39.200 in the country. 347 00:14:39.360 --> 00:14:42.639 It's absolutely it's absolutely amazing. It's great, and you know, 348 00:14:42.720 --> 00:14:44.720 for the but they love it, love it or don't 349 00:14:44.720 --> 00:14:46.240 love it. It's it's it's here. 350 00:14:46.399 --> 00:14:47.519 It's reality and its. 351 00:14:47.480 --> 00:14:50.440 Reality and and it's at the well we're the tech 352 00:14:50.480 --> 00:14:53.159 one of the tech hubs, you know. So right and 353 00:14:53.639 --> 00:14:55.720 once again our houses are twenty percent of the value 354 00:14:55.720 --> 00:14:57.039 of the houses and there. 355 00:14:56.840 --> 00:14:59.240 And that speaks to the economics of Austin. Central Texas 356 00:14:59.320 --> 00:15:02.000 is still pretty strong. It's still very have a strong 357 00:15:02.200 --> 00:15:04.960 job line. Even though we have the highest prices median 358 00:15:05.039 --> 00:15:07.600 in the state. We're also but we're about where the 359 00:15:07.639 --> 00:15:11.200 medium prices across the United States. So it's it's all relative. 360 00:15:11.679 --> 00:15:13.840 So and so yeah, we're seeing great. We we still 361 00:15:13.879 --> 00:15:16.159 have some really amazing deals like that Glenn Arbor house 362 00:15:16.200 --> 00:15:19.840 went from four four five hundred to four fifteen. You 363 00:15:19.879 --> 00:15:22.200 can't even touch it, there's no there's no there's no 364 00:15:22.200 --> 00:15:24.879 new construction that beats it and everything like that. So 365 00:15:25.639 --> 00:15:27.799 I hope somebody is listening because that house is a 366 00:15:27.799 --> 00:15:29.639 great deal and he's gonna he's gonna turn around. Speaking 367 00:15:29.600 --> 00:15:31.080 of listeners, let us know how to get a hold 368 00:15:31.120 --> 00:15:35.360 of it. Yeah, house today. 369 00:15:35.159 --> 00:15:37.639 Yeah, absolutely, yeah, give me a call. Well, we part 370 00:15:37.679 --> 00:15:40.279 prayer as part of our as part of our strategy. 371 00:15:42.039 --> 00:15:44.159 So yeah, it's Ken Renner ky and n ri E 372 00:15:44.240 --> 00:15:47.120 n n E R and it's my emails ken k 373 00:15:47.240 --> 00:15:49.679 E double n at my website by Austin dot com. 374 00:15:49.679 --> 00:15:51.120 So ken at by Austin. 375 00:15:50.879 --> 00:15:52.360 Rate great website. 376 00:15:52.360 --> 00:15:54.320 I got that in nineteen ninety five. Wow. 377 00:15:54.480 --> 00:15:58.279 Yeah four websites for ignorant Yeah yeah thing. 378 00:15:58.200 --> 00:16:01.120 Yeah yeah so yeah, so yeah buy Austin dot com 379 00:16:01.200 --> 00:16:03.919 and five one two four two three five six two six, 380 00:16:03.960 --> 00:16:05.639 and we'd love to chat with you and you know, 381 00:16:05.679 --> 00:16:11.720 and discuss strategies market tax ramification implications, sure, how to 382 00:16:11.759 --> 00:16:13.759 shelter your taxes, all that kind of stuff. 383 00:16:13.679 --> 00:16:15.440 And you've worked you speaking of that, you've worked with 384 00:16:15.559 --> 00:16:18.080 hundreds of not thousands of investors and talk about a 385 00:16:18.120 --> 00:16:21.200 strategy where they can take money from one property in 386 00:16:21.279 --> 00:16:22.440 tax defer to buy them. 387 00:16:22.600 --> 00:16:24.840 So it's a ten thirty one tax deferred exchange. People. 388 00:16:25.039 --> 00:16:27.360 One of the biggest benefits of real estate is the 389 00:16:27.360 --> 00:16:30.679 tax benefits. And as you know from home ownership, sure 390 00:16:31.200 --> 00:16:33.519 you know that one of the things you pitched to 391 00:16:33.519 --> 00:16:35.320 your home buyers is that, hey, this is going to 392 00:16:35.320 --> 00:16:38.879 be a tax deductible mortgage, right, but in real estate investing, 393 00:16:38.919 --> 00:16:42.559 there's all of it's deductible, along with another thing called depreciation. 394 00:16:43.159 --> 00:16:45.960 So your depreciation really saves on taxes depending on what 395 00:16:46.080 --> 00:16:49.080 tax bracket you are in this there's there's strategies on that. 396 00:16:49.840 --> 00:16:53.879 But also if you're taking an appreciated property and then 397 00:16:54.399 --> 00:16:56.320 you've got a lot of equity, if you sell it today, 398 00:16:56.320 --> 00:16:58.799 you're going to pay anywhere in fifteen to twenty percent 399 00:16:58.840 --> 00:17:01.559 capital gains, plus you also have to pay back some 400 00:17:02.000 --> 00:17:04.880 other things depreciation, recapture and things like that. So so 401 00:17:05.160 --> 00:17:07.519