Speaker 1: Welcome to Mortgage Talk with Mark harriston, the program that
Speaker 1: not only talks about mortgages, taxes, and interest rates, but
Speaker 1: Mark and his guest talk real estate trends and you're home.
Speaker 1: He also answers your mortgage questions to help you make
Speaker 1: the right financing or refinancing decisions.
Speaker 2: Now here's Mark Hairston.
Speaker 3: Happy today, everybody, and welcome back to the show Mortgage
Speaker 3: Talk with Mark. I'm really excited to have to introduce
Speaker 3: my guest today, and here's a couple of reasons why.
Speaker 3: First of all, he's a really a smart guy. Second
Speaker 3: of all, I've had this show about two years and
Speaker 3: he was one of my first guests on about the
Speaker 3: summer of twenty twenty three. As I recall, we had
Speaker 3: a great conversation. One thing I love about Chris and
Speaker 3: you'll meet him just a second, is he knows how
Speaker 3: to speak. I don't have to drag stuff out of him.
Speaker 3: So if you're look at the buyer sell reroll estate
Speaker 3: this year in Austin, Texas or Central Texas, you really
Speaker 3: want to stay tuned and listen to my buddies, Chris Jacobs,
Speaker 3: who let's introduce yourself a little bit and tell us
Speaker 3: that's your background.
Speaker 2: Hey, Mark, Chris Jacobs. I'm with Portico Real Estate. Been
Speaker 2: a real estate agent now about eighteen years. It just
Speaker 2: renewed my license in March. Been an active investor in
Speaker 2: real estate consultant almost the entire eighteen years. I found
Speaker 2: my niche in real estate where I work predominantly with
Speaker 2: investors and commercial and you know, we placed a lot
Speaker 2: of money and manage a lot of portfolios and help
Speaker 2: clients make those strategic decisions on where to invest and
Speaker 2: how to invest and love.
Speaker 3: It what to look for. I love it, you know
Speaker 3: because you're coming from a little bit different angle than
Speaker 3: most of my friends who are in traditional real estate
Speaker 3: where they're broken and then selling properties to individuals years
Speaker 3: more of a portfolio.
Speaker 2: Oh look, absolutely, I've got I've got a couple of investors.
Speaker 2: We holistically sit down, look at hey, what do we have,
Speaker 2: how properties performing, dispositioning assets, reacquiring assets, kind of going
Speaker 2: through those.
Speaker 3: We've actually I've got.
Speaker 2: Clients that have properties they have never seen. Wow, because
Speaker 2: it's it's spreadsheets. We live in Boston, p and ls exactly,
Speaker 2: and that's what we live by.
Speaker 3: And you originally hail from Del Rio, from del Rio, Texas. Yes, sir,
Speaker 3: let's hear a Texas boy.
Speaker 2: Yes, sir.
Speaker 3: You know that market very well down there too. I do.
Speaker 2: Actually I watched that. I watched the farming ranch down
Speaker 2: there quite a bit, and we were landowners down that
Speaker 2: way and got some places out in West Texas far
Speaker 2: further beyond that now buying that. We love to get
Speaker 2: away too.
Speaker 3: What's been this next twenty minutes or so we have
Speaker 3: on sort of central Texas? What's er here? Because, like
Speaker 3: I said, you were here a couple of years ago,
Speaker 3: and things I want to talk about, how things have
Speaker 3: shifted and where you see things today in the future.
Speaker 2: Yeah, so we were two years ago, we were dealing
Speaker 2: with I like to use we're diluting values. Values were decreasing,
Speaker 2: and you know, consumerism was started.
Speaker 3: What around the summer of twenty two.
Speaker 2: Yeah, I want to say the printing presses were turned
Speaker 2: off by the FED and March effectively of twenty twenty
Speaker 2: two where they quit buying all the mortgage backed securities.
Speaker 3: I remember the day. Yeah, it was a sad day.
Speaker 2: It was a sad day. Watch rates go from the
Speaker 2: low threes to four and a half overnight, right right,
Speaker 2: and of course that sends shocked ways through the market.
Speaker 2: Mortgages cost it. It's about one points, about twelve percent
Speaker 2: more on your desk servicing thereabouts.
Speaker 3: So let's talk about that for a minute. One percent
Speaker 3: of interest rate on a mortgage is about twelve percent
Speaker 3: buying power on that property.
Speaker 2: Correct, No, no, no, Like if you let's just say, if
Speaker 2: your mortgage was going to be my understanding, so correct
Speaker 2: me if I'm wrong. If the mortgage is going to
Speaker 2: be two thousand dollars and mortgage rates go up a point,
Speaker 2: that mortgage effectively now would be about twenty fifty fifty
Speaker 2: exactly right.
Speaker 3: Yeah, so about twelve percent decreases you're buying power.
Speaker 2: Decreases buying power. And then when we watch rates climb
Speaker 2: up to seven or higher or higher, we you know,
Speaker 2: we all were like because we had been addicted to
Speaker 2: cheap credit right the last ten years, and it was
Speaker 2: really all that too, I'll be honest.
Speaker 3: So was I.
Speaker 2: I bought a car last year and tiers zero credit
Speaker 2: was seventy nine wow at Ford Motor Credit.
Speaker 3: And I was just like, you know, what happened to
Speaker 3: a point nine?
Speaker 2: What happened to point nine? And I was I kind
Speaker 2: of paused. I took I took pause because you know,
Speaker 2: I bought my first car with a loan in nineteen
Speaker 2: ninety three, and my rate was six and a half
Speaker 2: in nineteen ninety three. And I'm looking at going. I
Speaker 2: was a kid at eighteen, right here, I am a
Speaker 2: full grown adult right with paying a premium, paying a
Speaker 2: premium compared to what I'm used to.
Speaker 3: So well, I just bought a brand new Ford. Uh
Speaker 3: not four. I bought a Ram pickup truck this weekend. Okay,
Speaker 3: you know mine's five point six four. So there you
Speaker 3: have it.
Speaker 2: Oh dude, there we go, they're coming down. Ford introduced
Speaker 2: private Sorry we got on a tangent with cars here
Speaker 2: for get that.
Speaker 3: Yeah.
Speaker 2: So yeah, So basically, let's pivot back. So rates were
Speaker 2: kind of in a purgatory, and buyers weren't buying because
Speaker 2: things were more expensive. We watched prices decrease, So we
Speaker 2: have two metrics. Goldman Sacks had that article come out
Speaker 2: where he said Austin's going to lose twenty five percent
Speaker 2: of values?
Speaker 3: When was that so last year? God?
Speaker 2: That was twenty twenty two, twenty twenty two. It's spent
Speaker 2: some time, got it? So on a rolling thirty day
Speaker 2: number because they didn't define how they were gonna lose
Speaker 2: twenty five percent. It was that story, the story of
Speaker 2: the leads, the story of the bleeds. Brandon Finial to
Speaker 2: tell you that what you're talking about, Beffini, he's the
Speaker 2: one who drilled that into my head. So we did
Speaker 2: drop twenty five percent from a.
Speaker 3: Thirty day peak value to a thirty.
Speaker 2: Day bottom value. But when we go look at it
Speaker 2: and over the last three years, during a three year period, yes,
Speaker 2: there was a there was a hot moment that those
Speaker 2: two numbers did come into alignment and we did hit
Speaker 2: twenty five percent. But nobody cares about thirty day windows, right.
Speaker 2: What matters is what is the three hundred and sixty
Speaker 2: five day the seasonally adjusted numbers doing, and seasonally adjusted,
Speaker 2: we gave up about eleven percent of values in Central.
Speaker 3: Texas across the board.
Speaker 2: Across the board, it's just eleven percent. Now, I know
Speaker 2: that's reasonable.
Speaker 3: I mean it's not a well if you think about
Speaker 3: rates that royal recession.
Speaker 2: No, no, and mortgage rates are up basically four points,
Speaker 2: so it cost you fifty percent more to buy at
Speaker 2: home if values only came down ten percent. So I
Speaker 2: don't think there's that perfect crash everybody was waiting for.
Speaker 2: But we have started to see and literally this is
Speaker 2: just materialized since February one. I do some regression analysis,
Speaker 2: we have some algorithms, and we are actually starting to
Speaker 2: see the forty five day seasonally adjusted line show some
Speaker 2: downward pricing pressure, still still surprisingly And I saw.
Speaker 3: That on one of your charts on Facebook. Yeah, and
Speaker 3: it was kind of what you were impressed. I gotta
Speaker 3: get back a hold of.
Speaker 2: Cross exactly, and I was just like, oh my god,
Speaker 2: here it is. Because I still didn't think for an
Speaker 2: investor perspective, it was a great time to buy. Yet
Speaker 2: it was more of the if you could find the
Speaker 2: right opportunities, it's a great time to buy it. Opportunities
Speaker 2: you don't pass up. And I'm looking at going. I
Speaker 2: really think Q three, late Q three, early Q four,
Speaker 2: that's when those sellers who weren't opportunity sellers are still
Speaker 2: in the marketplace, and those sellers truly we'll be ready
Speaker 2: to wheel and deal.
Speaker 3: Now.
Speaker 2: The question is is how do we wheel and deal
Speaker 2: and make it with everybody? Is it a wrap?
Speaker 3: Is a short sale? Is it?
Speaker 2: What is it look like?
Speaker 3: I don't know about Q three this year.
Speaker 2: I'm talking about Q three, so I think we're early
Speaker 2: Q two. I'm thinking in sixteen weeks after this plays
Speaker 2: out that it may be buying season for investors.
Speaker 3: You think some of this depression we're failing right now
Speaker 3: is political, im from the markets being poy nervous about things.
Speaker 2: It feels like that to me, it does, And we
Speaker 2: talked about that, you know, kind of talked about the
Speaker 2: politics of where we're at. And you know what, I've
Speaker 2: been studying the market in Austin the entire time. Coming
Speaker 2: out of the semiconductor world, where I was a metals buyer,
Speaker 2: I had to track metal markets. We worked with hedge
Speaker 2: buying commodities. I'm just used to charts, and when I
Speaker 2: came into real estate, there was no real good charts.
Speaker 2: There was no real good metrics. Texas A and M
Speaker 2: does a great job with what they do, but they
Speaker 2: are reaction based metrics that come out forty five days
Speaker 2: after the fact, and I needed a data set that
Speaker 2: was more where's the market going? Because we live in
Speaker 2: today when we execute our tracks, that's exactly right. We
Speaker 2: don't live in what happened forty five days ago. So
Speaker 2: everybody's like, it doesn't matter which party. I'm trying to
Speaker 2: be a little diplomatic here, it doesn't matter which party.
Speaker 2: It happens, like markets always get better after presidential elections.
Speaker 2: Like president elections don't do a blip to any of
Speaker 2: these things. It's just rhetoric you like to spit out
Speaker 2: of your mouth because you don't may or may not
Speaker 2: like the party that was in power.
Speaker 3: That's right, And.
Speaker 2: I'm sitting here going, I don't think it's a go.
Speaker 2: I don't think the change of the presidency was going
Speaker 2: to cause any changes. But I do believe that with
Speaker 2: what's going on with Terras, what's going on with everything,
Speaker 2: that there is some chaos in the marketplace and it's
Speaker 2: causing institutional investors who consume our mortgage backed securities to
Speaker 2: be guarded, right, and we're still seeing those high yield spreads.
Speaker 3: Everybody's guarded.
Speaker 2: Everybody's guarded, and they're like, well, lend you the money,
Speaker 2: but it's going to cost you.
Speaker 3: Yeah.
Speaker 2: So I don't think that we're going to see I
Speaker 2: don't know what more rich are gonna do, but I
Speaker 2: don't think until we see that yield spread change between
Speaker 2: the ten year t built and thirty year fixed rate mortgage.
Speaker 2: We're going to be back to normal and we haven't
Speaker 2: seen that in three years. So it doesn't mart which
Speaker 2: administrations and.
Speaker 3: Power that needs to come down.
Speaker 2: It needs to come down because until that happens, we
Speaker 2: don't know what the market truly will bear, because, in
Speaker 2: my opinion, the investors have hazard pricing on mortgages right
Speaker 2: now because their scared rates are going to drop. They
Speaker 2: got to make back all their money to generate those mortgages,
Speaker 2: so they frontload all the loans. But they've been front
Speaker 2: loan loads now for three years.
Speaker 3: I know, tell me about it, and we're sitting here
Speaker 3: going it's like, give me a break. Yeah, loans all
Speaker 3: been front loaded.
Speaker 2: Because now guess what the mortgage backed security investors the
Speaker 2: generated loans in Q three of twenty twenty two are
Speaker 2: making super big profits. Oh sure, Now what happens? Are
Speaker 2: they going to report that the Wall Street? And now
Speaker 2: are they going to get addicted to the profit? So
Speaker 2: are we going to see a fundamental shift in mortgage
Speaker 2: backed securities? So we're going to see a fundamental shift
Speaker 2: in home buying. I don't know these answers right well,
Speaker 2: time will tell.
Speaker 3: Time will tell based on your experience and your yeah,
Speaker 3: market knowledge and expertise, where do you see opportunities right now?
Speaker 3: You know, I'm in the residential space.
Speaker 2: In the residential space, I I'm a firm believer. I'm
Speaker 2: buying central business districts.
Speaker 3: Okay.
Speaker 2: And there's some some theories and I'd be drawn a
Speaker 2: blank if I told you the books. But I always
Speaker 2: advise everybody to buy as close as you can to
Speaker 2: a central business district sixth in Congress. Buy as close
Speaker 2: as you can. You have pricing stability, that's pretty central.
Speaker 2: It's pretty central. The domain and domain the Tech corridor
Speaker 2: now one eighty three from from Cedar Park downward on
Speaker 2: that oney three And I was, you know, I've got
Speaker 2: the cute little first time home buyers are twenty four
Speaker 2: years old. They'd be the third generation of this family.
Speaker 2: I've helped buy homes. So, you know, the first time
Speaker 2: home buyers, we all hold a special spot for them.
Speaker 2: I love them because, yeah, they appreciate what's what's happening.
Speaker 3: Absolutely versus us older people.
Speaker 2: Who are I got to do that for you now,
Speaker 2: I got to do what now. It always seems like
Speaker 2: my older clients complain about the mortgage loan process where
Speaker 2: my younger clients are so appreciative.
Speaker 3: I know they'll do anything I get hold. I gotta
Speaker 3: do what.
Speaker 2: I got to write a letter? Sure, what letter do
Speaker 2: you need me? What do I have to explain? I've
Speaker 2: read exactly. I'll get the novella out for you. It's there,
Speaker 2: it is, that's right, it's I missed my payment because
Speaker 2: I was on vacation. You know, you've had plenty of
Speaker 2: explanation letters over the years.
Speaker 3: I'm sure we.
Speaker 2: Don't do that much anymore, but still I had to
Speaker 2: write a letter about missing a credit card payment that
Speaker 2: you did. I did once I was on vacation. I
Speaker 2: missed it, missed it. It was paid thirty one days
Speaker 2: instead of thirty. If I'd caught it, it wouldn't have
Speaker 2: been days. A little bit the old days handering those letters,
Speaker 2: good lord. Yeah, so I think I think for first
Speaker 2: time home buyers, you know, it's.
Speaker 3: But then we've got to deal with a phil affordability
Speaker 3: Oh my gosh, yeah, business district. But yeah, but your
Speaker 3: opportunities are some people are going to be those are
Speaker 3: even as far as in this case gerald our temple,
Speaker 3: Oh my gosh.
Speaker 2: Yeah, people are moving out, So these first time home buyers,
Speaker 2: they were qualified at like three forty.
Speaker 3: Yeah, it's not a lot of.
Speaker 2: House in central Texas. No, in the five county area,
Speaker 2: being the Austin MS. More of a house though, Yeah
Speaker 2: it is. But I kind of looked at him and go,
Speaker 2: You've got to remember guys this, think of it this way.
Speaker 2: It's like, it's not your parents' house, right, that's right.
Speaker 2: It's not an apartment complex you're renting and has somebody
Speaker 2: above you and adjacent you or below you exactly, and
Speaker 2: it's yours exactly. You get painted, you can landscape it,
Speaker 2: land you can do whatever you want. At twenty four,
Speaker 2: you're buying what might be the appreciation window of an opportunity.
Speaker 2: You have a lifetime in Central Texas, because if you
Speaker 2: wait till you're thirty five, you're gonna get less house.
Speaker 2: You wait till you're forty five, you're gonna get even
Speaker 2: less house.
Speaker 3: Right right.
Speaker 2: You know, if my wife and I hadn't bought our
Speaker 2: first home together, and I'm just going to preach to
Speaker 2: a choir about brian buying, we bought April two thousand
Speaker 2: and five. We scraped every penny together. We had to
Speaker 2: get a home, and if we had not bought in
Speaker 2: East Austin on we were Caesar, Travis and Komal right
Speaker 2: down town.
Speaker 3: Yeah, oh yeah.
Speaker 2: It was one hundred and eighty nine thousand dollars about
Speaker 2: it for I'm gonna thirty single single family home. About
Speaker 2: it from Christina Valdez, who's another agent in this town
Speaker 2: that's been here forever. She was the listing agent, was
Speaker 2: her personal property she was selling. Christina and are good
Speaker 2: friends to this day, and we were so happy to
Speaker 2: be homeowners. Mark. We were in a thousand square feet
Speaker 2: oh wow, one bathroom.
Speaker 3: Wow, you know, just just two of you.
Speaker 2: Then it was just two of us and a dog.
Speaker 2: And you know, we were on an eight thousand square
Speaker 2: foot lot in a little thousand square foot house.
Speaker 3: But it was ours exactly. My first one was nineteen
Speaker 3: ninety so I remember, yeah, oh yesterday it.
Speaker 2: Was ours and we painted every wall of crazy color.
Speaker 2: We you know, we did everything we couldn't do. And
Speaker 2: we were young. Yeah, My wife was twenty seven, I
Speaker 2: was twenty nine, and had we not bought that first home,
Speaker 2: we wouldn't be living in Central Austin to this day.
Speaker 2: I'm now over in Brentwood, you know, We've got a
Speaker 2: great twenty three hundred square foot home to nineteen fifty
Speaker 2: eight beautiful And you know.
Speaker 3: I couldn't agree more with you. And we talked about
Speaker 3: before the show that you think and I think this too,
Speaker 3: although I've been saying this for a little bit, that
Speaker 3: this is a good time to be buying now. I'm
Speaker 3: not trying to push anything on anybody because I don't
Speaker 3: really know exactly what's going to happen, but it seems
Speaker 3: to me the it's a perfect storm right now. So
Speaker 3: let's talk inventory.
Speaker 2: A lot of man we are at so inventory is
Speaker 2: a great question, great comment. There we are at yesterday
Speaker 2: eleven thousand plus active listings in central Texas.
Speaker 3: When you say central TEXTA, you talk about the.
Speaker 2: Troupe five county, the five county so to MSA technically
Speaker 2: to people who don't know, it's Travis County, Williams County,
Speaker 2: Hayes County, Cadwell and Bashtrump. Okay, that's our the statistical
Speaker 2: area that is Austin. Eleven thousand plus active listings. And
Speaker 2: you know what, we have more demand than we did
Speaker 2: last time we're at this point, which was July of
Speaker 2: twenty ten. But there's opportunity in there.
Speaker 3: Yes, you mentioned twenty ten earlier before the show. Yeah,
Speaker 3: which was the perfect time. Oh my gosh, we bought tons.
Speaker 3: I worked with a lot of investors.
Speaker 2: We placed a lot of money in such tyxes at
Speaker 2: twenty twenty or twenty ten, and it got liquidated in
Speaker 2: twenty twenty at about a four hundred percent increase ten
Speaker 2: years in ten years, And I don't think we're going
Speaker 2: to see another run like the pandemic. That was a unicorn.
Speaker 3: That was a unicorn. Wet likely won't happen.
Speaker 2: Again, most likely will never happen again. But I want
Speaker 2: to step back a little bit and go why I
Speaker 2: think it's a great time in Austin to buy a
Speaker 2: home for investors looking for appreciation place, and for first
Speaker 2: time home buyers, and for any home buyer. If we
Speaker 2: go and look at most of the United States, homes
Speaker 2: are selling for what they did during the pandemic. That's
Speaker 2: just there's very small interest. It's a nationwide and in Texas,
Speaker 2: if we like at Texas as a whole, homes are
Speaker 2: selling at peak pandemic pricing right now in the whole
Speaker 2: state of Texas. Now, real estate is local, it is
Speaker 2: not global.
Speaker 3: That's right. You know, it is a hyper low micro cosm.
Speaker 2: It's a micro It can get to street to street
Speaker 2: even on what why.
Speaker 3: I don't get it, certainly neighborhod neighorhood.
Speaker 2: Neighorhood, neiborhod and street to streets. So something I really
Speaker 2: have just been digging in going this is why I
Speaker 2: think Austin's gonna be a great appreciation play coming into
Speaker 2: Q three for investors, and I think it's gonna be
Speaker 2: great for first time home buyers who had the flexibility
Speaker 2: of time. Is Austin is trading ten percent to eleven
Speaker 2: percent below pandemic.
Speaker 3: Values, if not a little bit more in some areas
Speaker 3: some areas, but but that's let's just use that.
Speaker 2: Yeah percent, Yeah, ten percent, got it. My neighborhoods probably
Speaker 2: fifteen to twenty in central Austin, which means there's neighborhoods
Speaker 2: that are five or six percent above. I live in
Speaker 2: Lakeway and that could be fifteen percent exactly. So one
Speaker 2: of the things that I'm really excited about is Dallas
Speaker 2: and Houston are trading at pandemic peak values.
Speaker 3: Unbelievable.
Speaker 2: Austin is not. San Antonio is not.
Speaker 3: Is it? We had such a high run during during COVID.
Speaker 2: I mean there's so many, there were so many people,
Speaker 2: and I think what we've got right now on our
Speaker 2: sale the people selling is you know what is I
Speaker 2: don't know the factual number, but I presume most mortgage
Speaker 2: backed securities are a three to five year product for investors,
Speaker 2: just through the natural right just to say five years
Speaker 2: five years. So we're three years out of the pandemic.
Speaker 2: So that means people who moved here early on could
Speaker 2: be getting the bug for a new home, ye, or
Speaker 2: they're relocating in and out. My wife and I keep
Speaker 2: our home for an average of ten years. We don't
Speaker 2: We don't move like some people. I've got friends who
Speaker 2: move every three to five years.
Speaker 3: Like a car.
Speaker 2: It's like a car to exactly said exactly. I'm like, no, moving,
Speaker 2: I like, movie is terrible. Yeah, it's not worth it.
Speaker 3: No.
Speaker 2: I bought a second house Mark and I was like,
Speaker 2: we filled that house with a lot of stuff from
Speaker 2: our current house. I was like, I got out of
Speaker 2: having to buy another one to clean approache the house
Speaker 2: because we just bought another one, moved everything out there.
Speaker 2: I still got stuff of the story to man, But yeah,
Speaker 2: I think it's I think we're really on this cusp.
Speaker 3: Of and let's talk about an opportunity that very few
Speaker 3: people think about. And you're the one that brought it
Speaker 3: up to me this morning. And it's really an opportunity
Speaker 3: for sellers too. Absolutely, you bought a property in twenty
Speaker 3: twenty one, twenty, you know, late twenty twenty. Your rate's
Speaker 3: probably three or below. See, And I was looking at
Speaker 3: my my inventory, not my database. I'm like, all these
Speaker 3: low interest rate loans.
Speaker 2: Talk about the potential there, the opportunities as a seller.
Speaker 2: So we were just talking about this and I was
Speaker 2: I was a firm I'm a firm believer, you know.
Speaker 2: I speak with real estate agents every day. My Facebook
Speaker 2: was quiet for four months, five months. I really was focused.
Speaker 2: I'm working with some pretty big investors and focusing my
Speaker 2: energy and production. And I've made five or six posts
Speaker 2: in the last two weeks. And MYA, you were, you
Speaker 2: were like, boom, I've had forty two thousand interactions from
Speaker 2: a forty two forty two thousand interactions on my Facebook,
Speaker 2: between engagement reaching out messages like I have a professional
Speaker 2: Facebook profile. It gives me the metrics. And I was like, wow,
Speaker 2: people are in need they want to know, they want
Speaker 2: to know what's going on. So one of the most
Speaker 2: common messages I'm getting from agents is like, my sellers
Speaker 2: are upside down the word price, where's priced? Because that
Speaker 2: gets them out of the mortgage. And Mark, I'm looking
Speaker 2: at going is that bad advice because that mortgage, those
Speaker 2: two don't valuable. It is those three and a half rates.
Speaker 2: Those are hugely valuable instruments. Goal And I think as
Speaker 2: we distance ourselves from the pandemic, the hindsight's always twenty
Speaker 2: twenty and I want to put that out there for everybody.
Speaker 2: The mortgage back instrument from twenty twenty to twenty twenty
Speaker 2: two will be the biggest short of the US dollar ever.
Speaker 2: You may not know what shorting is and how short
Speaker 2: is taking a bet something's going to lose value. Well,
Speaker 2: what have we had inflation?
Speaker 3: What does that? Do?
Speaker 2: You lose value on your dollar with inflation? But you've
Speaker 2: got a thirty year financial instrument locked. You got to
Speaker 2: sell the sell that. You've got an instrument to sell that. Hey,
Speaker 2: I'm you know, I was telling Mark Ago. I think
Speaker 2: with us A buyers on appreciation, there's gonna be sellers.
Speaker 2: You need to get out that we could walk in
Speaker 2: and get them out of the mortgage responsibility with virtually
Speaker 2: nothing into it, with virtually nothing into and still give
Speaker 2: them a couple of points every month on the mortgage
Speaker 2: because I'm willing to take a note at five percent,
Speaker 2: they're at two and a half.
Speaker 3: They're making money.
Speaker 2: They're making money on the asset, and that money can
Speaker 2: be made.
Speaker 3: It's not on the asset, it's on the loans.
Speaker 2: On the loans the asset at that point, that's true.
Speaker 2: That it's it's producing money for them every month. And
Speaker 2: I think we're gonna see you just sold one. I
Speaker 2: just sold one in San Marcos on an owner carry
Speaker 2: and for an investment personally, not for a client.
Speaker 3: Yeah, well it was one thing.
Speaker 2: It's a beautiful thing, and it goes from it wasn't
Speaker 2: making any money as an investment property too. It makes money,
Speaker 2: and we have no responsibility as the investors if I
Speaker 2: have through foreclothes and take it back. No harm, no fires, yeah,
Speaker 2: no no ac unit, no capacitor oute, no hot water
Speaker 2: tank going bad, no hailstorre and tearing up the roof.
Speaker 2: You know, these are the three most common box money.
Speaker 2: It's now mailbox money is and I'm looking at going
Speaker 2: I would buy another twenty homes in Central Texas personally,
Speaker 2: if I could wrap them, get somebody out of a
Speaker 2: bad situation, make it a positive for them, make them
Speaker 2: some money. We take the upside. It may suck, you know,
Speaker 2: you don't get the upside, But for an investor, hey,
Speaker 2: you know, I'll buy more homes all day long. Given
Speaker 2: the opportunity for a minimum, minimal amount of cash or
Speaker 2: a small down payment five to ten percent, I'm a
Speaker 2: buyer all day long.
Speaker 3: Yeah, you know. It's also it also speaks to and
Speaker 3: we can't go in the detail run that strategy, but
Speaker 3: it's a good one. And so let's let's talk about
Speaker 3: how to get ahold of you.
Speaker 2: Yeah, well, if you want to get ahold of meal,
Speaker 2: I'll just throw my cell phone on here. It's five
Speaker 2: to one two nine eight three three one three two.
Speaker 2: I'm Chris Jake on Facebook. You can find me. Put
Speaker 2: christ Jacob housing report. You'll find me on Twitter. You'll
Speaker 2: find me on Facebook.
Speaker 3: It's a great report. You need to follow.
Speaker 2: Yeah, in my my cell phone once against five one
Speaker 2: two nine eight three three one three two to make
Speaker 2: sure I said it clearly, but yeah, I'm always available
Speaker 2: to help and have a conversation and talk through scenarios.
Speaker 2: It's kind of funny because my wife will tell you
Speaker 2: I talk myself out of more business than I talk
Speaker 2: myself into because she's like, you truly put everybody first.
Speaker 2: Well that's cool, not yourself, it should be. And I
Speaker 2: got past dividends in the long run.
Speaker 3: You called yourself pious. Yes, yes, you love it.
Speaker 2: Just a pious way of living is a good way
Speaker 2: of doing it.
Speaker 3: It's good. But let's talk about some of the negatives,
Speaker 3: potential negatives, and this could be pressures on rents. Yeah,
Speaker 3: so so that's all the inventorial apartments going.
Speaker 2: Oh we were talking about that earls Also, it's just
Speaker 2: like you know, single family rentals have had a lot
Speaker 2: of pricing pressure on them, much less the air BA
Speaker 2: B market. Oh my god, here and B market. I'm
Speaker 2: in many of those groups, and those guys are all
Speaker 2: I believe the airbnb market's hurting the little because it
Speaker 2: was easy to make money during the pandemics, right, nobody so.
Speaker 3: Much movement of people. Oh, there's so much.
Speaker 2: Movement to people. And I remember fondly my wife. Fourth
Speaker 2: of July weekend, twenty twenty, looked at me and goes,
Speaker 2: we need to get out of this house.
Speaker 3: Was that the way awsome?
Speaker 2: No, this we're in Brentwood.
Speaker 3: We had been.
Speaker 2: We were in Brentwood now eleven years. She's like, we
Speaker 2: just need to get out of this house.
Speaker 3: I was like, where do we go?
Speaker 2: She's like, we liked durano I go, let's go pandemic
Speaker 2: and DURINGO and we literally went and runted a house
Speaker 2: for two weeks and grocery shop, cooked meals, did everything
Speaker 2: we did. Stuck at home. It was just someplace different,
Speaker 2: right right, People.
Speaker 3: Did it all the time. That's how they lived.
Speaker 2: Yeah, that's how they lived back then. And there were
Speaker 2: some there were some rentals in Fort Davis, Texas, which
Speaker 2: if you don't know where Fort Davis is, it's a
Speaker 2: the highest county seat in the state of Texas. There's
Speaker 2: twenty eight hundred people in the whole county. Wow, there
Speaker 2: were airbnbs and Fort Davis making one hundred and two
Speaker 2: twenty dollars. Ye, that's crazy for properties to sold for
Speaker 2: two hundred k. Because they were just getting crazy money.
Speaker 3: Yeah, not to be stuck money. It was it was money.
Speaker 3: It is just flowing away.
Speaker 2: We were all getting money in the check. You know,
Speaker 2: the personal the PPP loans, the stimulus money is the wow.
Speaker 2: It was my wife and I were just talking about
Speaker 2: the heyday of we make the same money, but it
Speaker 2: feels like there's less money, right.
Speaker 3: Tell me about it. So we go on and got
Speaker 3: a couple of years left. Man, Let's talk about opportunities
Speaker 3: real quick for people either buying or selling.
Speaker 2: Yeah, so I think, here, here's my opportunity. I think,
Speaker 2: right enough, you're renting a house, as you call someone
Speaker 2: like you Mark, you figure out how do I get
Speaker 2: an FHA loan and you go and pull that trigger
Speaker 2: and buy something agree more personally.
Speaker 3: This is because rentals are probably twenty five hundred a
Speaker 3: month on average.
Speaker 2: You think, oh my gosh, yeah, single family, you know,
Speaker 2: I just this is the exception. I just did one
Speaker 2: at ninety five hundred dollars in Westlake. But you know
Speaker 2: one on our street was fifty seven hundred dollars in
Speaker 2: Central Austin, just off justin Lane and Lamar. But you know,
Speaker 2: most of our rents because we're not in Central Austin,
Speaker 2: we're out in Hayes County or we're in Williamson County
Speaker 2: predominantly you're twenty five to twenty eight hundred dollars a month,
Speaker 2: which is plenty of money to go buy a home.
Speaker 2: It is the hard part for someone wanting to be
Speaker 2: a home buyer is that down payment, which is faha,
Speaker 2: three and a half street.
Speaker 3: And a half percent. But we've got down payment assistance
Speaker 3: for people like that.
Speaker 2: You know, I would do any more percent from the
Speaker 2: state for free.
Speaker 3: Basically I did not know this.
Speaker 2: This is something I've just learned. Like we were talking
Speaker 2: about me buy my first home, like we scraped every penny.
Speaker 3: There's the first time buyer.
Speaker 2: If I could get a home and I didn't have one,
Speaker 2: I would do it because no matter what you do,
Speaker 2: a proven fact is home ownership creates wealth, Yes, long term,
Speaker 2: long term wealth. Being married and owning a home creates
Speaker 2: exponentially more wealth than being a single person and a home.
Speaker 3: Well, my wife and I owned three properties in Travis
Speaker 3: County and probably ninety percent if you will, of my
Speaker 3: net worth at my real estate.
Speaker 2: I believe it.
Speaker 3: I love re estate.
Speaker 2: Yeah, I'm a firm eighteen years in it now, I'm
Speaker 2: a firm believer in real estate is part of a
Speaker 2: balanced portfolio for people and.
Speaker 3: It's it truly does prove somewhere anyway.
Speaker 2: Well does and if you're able to, and this is
Speaker 2: for my investors out there, if you're you know, if
Speaker 2: we can get you to get qualified real Estate Professional
Speaker 2: status turned on your taxes, it could save you tons
Speaker 2: of money by removing that twenty five thousand dollars cap
Speaker 2: on your schedule E income. And that's that's a whole
Speaker 2: other thing, whole.
Speaker 3: Another strategy and expertise around taxes and benefits of owning
Speaker 3: real estate.
Speaker 2: We need a CPA for that quation because that's the
Speaker 2: qualified real estate man.
Speaker 3: We are out of time. I've really enjoyed it again
Speaker 3: having you on, Chris.
Speaker 2: We'll have to do it again, Yes, sir, thank you
Speaker 2: for the opportunity.
Speaker 1: All right, buddy, This has been Mortgage Doc with Mark Hairston.
Speaker 1: Mark is a mortgage advocate with Texas Mortgage Source LLC,
Speaker 1: offering personalized mortgage solutions, fast customized quotes, great rates and
Speaker 1: service with integrity. Contact Mark at Markhirston dot com. Mark
Speaker 1: Hairston dot com. You can call our text Mark at
Speaker 1: five one two seven eight nine sixty nine sixty seven.
Speaker 1: That's five one two seven eight nine sixty nine, sixty seven,
Speaker 1: and come back next week for more mortgage talk.