0:00

Welcome back Castle

0:00

Dwellers to Keys to the Castle.

0:02

I'm your host, Bisendra Melaram,

0:02

and today we're tackling the

0:05

state of the housing market. Joining me in the studio today

0:06

are our trusted advisors, Mr.

0:10

Jason Kleiger and Mr.

0:13

Marcus. So let's unlock the door

0:18

to the keys of the

0:20

castle. Oh my god. We'll work on that.

0:23

What do you want me to say, man? I want you to say your bit,

0:25

whatever you're gonna talk about.

0:28

You already said it. State of the housing market.

0:30

State of the housing market. Okay, let's go. Let's get into it.

0:32

Dude, I'm an attorney. I just

0:33

read off the paper. Alright, let's go. Alright. This is going to be our That

0:35

was, that was wonderful.

0:38

Okay. So, Bisendra.

0:41

We all hear pundits on TV describe

0:41

the national housing market.

0:47

These pundits only use a handful of

0:47

statistics to describe the entire U.

0:52

S. housing market. However, we all know that Long

0:54

Island and the five boroughs,

0:57

it's its own Niche market. Can you break down the niche market using

0:59

your own language and your expertise

1:05

pertinent to buyers and sellers listening?

1:09

Okay, well

1:09

the five boroughs and Nassau and

1:13

Suffolk are their own independent

1:13

Neighborhoods, let's just call it.

1:19

Yes. So they had their own dynamic.

1:22

And, I'm sure Mr. Marcus can jump in at any time

1:24

to let you know that each, each

1:28

county, each of those counties all

1:28

have their own lending criteria.

1:34

How is it different

1:34

though, than Ohio, how is it different

1:38

than Oklahoma, the market that we're

1:38

in right now, but as it applies

1:44

to Long Island, you know, the, the

1:44

Nassau and Suffolk counties, and

1:48

the five boroughs, Queens, Brooklyn,

1:48

Manhattan, Bronx, and Staten Island.

1:54

Cause when I hear about this stuff,

1:54

I, I, you know, I hear it on, um, you

1:58

know, CNN or Fox or MSNBC, basically

1:58

any place that I look, I hear about

2:04

the statistics or the trends, let's

2:04

say of the housing market nationally.

2:10

Now we all know that in 2007, 2008, they

2:10

focused on places like Las Vegas, where

2:17

developers were just, over producing

2:17

housing and there weren't enough buyers.

2:23

Well, what's going on

2:23

right now that you see?

2:27

Well, it's a different demographic. If you're comparing Ohio and New York,

2:29

New York is ultimately in has always been

2:33

the Petri dish for the entire nation.

2:35

So when you hear the trends, the trends,

2:35

what they're doing is they're taking

2:38

numbers from each coast and everywhere

2:38

in between, and they're just basically

2:42

taking the national average, right? Because you'll hear it at the end, the

2:44

national average, the national average.

2:47

But when you're looking at hyper local

2:47

markets like Queens, Brooklyn, the

2:51

Bronx, Nassau County, Suffolk County,

2:51

those numbers are vastly different.

2:55

So if someone asks me, I'm just

2:55

going to take it a little sideways.

2:59

How's the market? What market are you talking about?

3:02

Right? That's my next question because

3:02

the market is great depending

3:06

on where you are looking. So, Ohio.

3:10

I don't know what the average sales

3:10

price is in Ohio, but I'll tell you

3:13

that, as of the end of February,

3:13

2024, the median sales price for

3:18

Nassau County for a one to four family

3:18

was between 760, 000 and 780, 000.

3:25

Right. So I, I'm going to make an assumption

3:25

on Ohio is going to be about half for

3:31

property with the same square footage. And that's the other problem.

3:34

Square footage is different in. where you're looking, because I have

3:36

some friends that live in Ohio and

3:41

their houses are 2000 plus square feet,

3:41

where in Queens, the average one family

3:47

is about 1100 to 1300 square feet. So there's, there's a lot of

3:50

little, very, a lot of variables

3:53

in between that dictate price.

3:55

So we really

3:55

shouldn't go based on what we hear

3:58

in the news, but what we should

3:58

hear based on Our local realtor.

4:05

Yeah, all the time.

4:06

Everything like

4:06

when it comes down to it, you're

4:08

talking about supply and demand. So let's break this down.

4:11

Okay? You're sitting there in New York.

4:15

Okay? You got a ton of baby boomers that own.

4:20

Okay? So what are they looking to do?

4:23

Um, Most of them get to retirement age.

4:27

I want to move down south. So now we're talking about North Carolina,

4:29

South Carolina, Georgia, Florida, fine.

4:35

If the inventory in those states

4:35

are, is low, which it is right now,

4:42

up here, Bisendra would get to list

4:42

won't list because they can't find

4:49

a property down there to go to. So it's like, you got these.

4:53

other factors that are affecting

4:53

our market in particular, versus

4:59

where that would be elsewhere. So I'm not really sure what the baby

5:00

boomer in Ohio is looking to do.

5:07

Are they also trying to move south? Are they going southwest?

5:09

Are they looking out west? Are they looking Vegas?

5:12

I know just in our demographic, it seems

5:12

that most people And if you look at the,

5:17

just the average of where people live,

5:17

you're talking mostly along coastlines.

5:22

So it would just kind of stand to

5:22

reason that somebody that lives in

5:25

New York is most likely going to, if

5:25

you're going to look for that retirement

5:29

property, go down the eastern seaboard.

5:31

And now we're getting affected by the

5:31

supply and demand curves in those states.

5:37

And we're seeing a direct correlation

5:37

on our inventory being at a historically

5:43

ridiculous low because of that.

5:46

That generation isn't the risk generation.

5:49

They're not rolling the dice on all

5:49

right I'm gonna go down south and if

5:54

I don't find something I'm still gonna

5:54

sell up north and then I'm gonna get

5:57

left homeless They are very like no it

5:57

is this to this to this their planners

6:02

So we can't get them to list their house

6:02

before they find somewhere else to move

6:07

and they can't find somewhere else to

6:07

move so they're not listing their house.

6:10

Yeah, that's right on

6:10

the nail because, and so, and that comes

6:14

into play with new construction builds.

6:17

Right. So new construction was at a halt or it

6:17

was moving at a molasses pace for the

6:21

last two years for a lot of different

6:21

factors that they claim, supply chain

6:25

issues, manufacturing issues, so

6:25

that prevented and slowed down new

6:30

construction builds in the areas that Mr. Marcus just said, right?

6:33

actually played into the low inventory

6:33

because if there's new no new construction

6:36

bills, these boomers cannot move to

6:36

the areas that they want to go to.

6:40

So they're, they're staying in their house.

6:42

So we're basically

6:42

saying like, it's kind of a domino

6:45

effect where Okay, I'm looking to sell

6:45

my house, but I want to buy a house.

6:50

But there's no inventory. So it, you know, I've seen it

6:52

around where people sell to buy.

6:57

Okay. And they try to coordinate everything

6:58

and that's fine, you know, it's doable,

7:03

but in order to sell, you need that

7:03

money from your sale in order to

7:09

carry it forward to your purchase.

7:11

So, in my, you know, experience,

7:11

especially of late, you know, this

7:18

is a little difficult, especially

7:18

to not only coordinate, but to sell.

7:21

You know, what comes first, the chicken

7:24

or the egg? Typical Catch 22, Jay.

7:26

I mean, it's exactly that.

7:28

It's, this is where part

7:28

of that's problematic.

7:32

And there's not, there's not a

7:32

immediate solution to this problem.

7:38

Then there's the other problem. Which, this is a weird problem,

7:39

because this is different.

7:43

The Baby Boomer, Wealth that has

7:43

accumulated that is now getting passed

7:51

down to our buyers where There are

7:51

people out there just bidding at

7:57

numbers that like as if we're playing

7:57

Monopoly Monopoly money It's like what

8:01

are you doing buying a six hundred

8:01

thousand dollar valued house for seven

8:05

hundred and fifty thousand dollars. It's almost Irresponsible on what's

8:07

going on there all cuz mommy and

8:12

daddy like aren't going to be able

8:12

to spend all the money that they've

8:16

acquired Before they die and god bless

8:16

them good planning But that doesn't

8:21

give you a license to be Ridiculous.

8:24

Ridiculous. It's absolutely ridiculous. And I, I know, case in point, I know that

8:26

there's a buyer that I sent, I referred to

8:31

you, that contacted you about a property

8:31

that she wanted, she was looking to buy.

8:36

So the property was listed

8:36

at 749, she, I just found out

8:40

yesterday that she was looking to

8:40

make, against my recommendation.

8:45

Clearly. Always. Against my recommendation. She got caught up in the

8:49

paparazzi of the open house.

8:54

There were so many people there, right?

8:57

So many people, because spring

8:57

sales season is a real thing, right?

9:02

Because homeowners wait till the

9:02

springtime, and buyers look to move

9:06

between spring and summer, so they're

9:06

ready to go to, their kids are ready

9:09

to get situated in school districts

9:09

to go to school in September, right?

9:12

Everybody understands that. But the season is beginning

9:14

earlier and earlier every year.

9:18

So she wanted to make an 800, 000 offer.

9:24

And I'm like, but wait, we got to

9:24

figure out all the math out first.

9:29

You know, and this is a buyer that I,

9:29

I know personally, but you know, I know

9:33

most of her math is already done in her

9:33

head, but I told her I need it on paper.

9:38

I need a credible person like Mr.

9:41

Marcus to tell me, this is how

9:41

I'm This is the numbers that I

9:45

need to structure her financially. So after Mr.

9:49

Marcus set her straight. Very politely, very politely.

9:53

It's

9:53

all about bringing people

9:53

back down to earth, because exactly

9:56

what you're saying, Bisendra, it's like,

9:56

you got, like, there are people out

9:59

there, and it's, and I see this a lot. Like, they're not realizing,

10:01

like, when the smoke clears,

10:04

they are left paying a price.

10:07

pretty high nut. And on top of it, if you're going

10:08

multifamily, now you have this layer

10:12

of risk where you're depending on

10:12

the renter that you're going to

10:15

put into this space to cover it.

10:18

And I am not in the

10:18

ruining lives business.

10:21

I'm in I take a conservative

10:21

approach with this.

10:24

And sometimes I have to be the little

10:24

angel on your shoulder, kind of zoning you

10:28

back into the reality of what's going on

10:28

here because you're so caught up because

10:34

there are that Percentage of people that

10:34

like to gamble and this becomes like a

10:43

Gambling situation to certain people and

10:43

I could see it I watch it like oozing

10:47

out of them where they are so caught

10:47

up in the I want to win I want to win.

10:52

I want to win but at the end of the

10:52

day inevitably you're left with this

10:56

and I don't want to ruin your life. So I'm going to sit there and advise

10:58

you financially that this is not a smart

11:03

play to go and acquire a house for 25

11:03

percent above value that's relying on

11:09

a rental income for you to make ends

11:09

meet, even though you can figure out

11:14

a way to finagle to get to the point

11:14

where we can get this thing financed.

11:18

It's called suitability over eligibility.

11:20

And I am constantly. Going to be on the side of

11:24

suitability and

11:24

going back to how we got here.

11:27

Her grandmother was gonna front her the

11:27

money Grandma yeah, I'm not gonna I'm

11:32

like grandma down No, so between her

11:32

savings grandma savings and somebody

11:36

else or wherever else she was gonna get

11:36

The additional funds from, I was like,

11:42

you really think this is the best play? So she wasn't hearing what I was saying.

11:47

So I was like, I immediately defer to Mr.

11:49

Marcus. I'm like, call Jay. Whatever he says is i'll Right.

11:52

Other than that, I'm not

11:52

gonna listen to you right now.

11:55

I'm like the annoying dad that

11:57

you know is right. And it's like, you're right.

12:00

No, but you see

12:00

the, the thing is, I don't really

12:02

get involved in people's numbers. You tell me.

12:06

Let a banker tell me this is how

12:06

much you can spend and I will

12:09

show you how to structure it. Right?

12:12

That's not my job. I'm the negotiator.

12:14

I'm the locator. I'm, you know, I'm not the nice guy that's

12:16

going to tell you, Oh yeah, yeah, yeah.

12:19

Let's talk to whoever

12:19

and we get the number up.

12:21

No, no, no, no, no, no, no. I do the reverse. So I know he's on the conservative

12:24

end and that's where I like to be

12:27

because I work in worst case scenario. So if Mr.

12:30

Marcus says, yeah, not a dime over

12:30

700, then it's not, it's, it's.

12:35

700,

12:36

you know, and that brings

12:36

me to my next point, which is inflation.

12:41

Okay. Now we're talking about being a numbers

12:42

person and looking at the numbers

12:46

and looking at the numbers on paper.

12:48

Now, a few weeks ago, inflation actually

12:48

ticked up for the month of February.

12:53

Correct. Okay. And that's despite the

12:54

fed keeping rates steady.

12:59

Okay. And, and it's still one up now.

13:02

Um, we always hear when inflation

13:02

goes up that mortgage rates follow

13:07

lockstep, but that's not always the case.

13:11

Mr. Marcus, what in your professional

13:11

opinion do you see happening

13:15

in the lending market? And what other factors, because, you

13:17

know, to be honest, I have no idea.

13:21

What other factors go into,

13:21

let's say, mortgage rates when

13:26

it comes to lending on houses?

13:29

So I used to play this

13:29

game called SimCity and When I would sit

13:34

there and I would build out my city one

13:34

of the things that you can control is

13:37

the interest rates So one of the things

13:37

that if you did crazy and you basically

13:43

move the needle Aggressively crazy to one

13:43

side like all of a sudden you were gonna

13:48

bring Interest rates down to nothing.

13:51

What'll happen is, is your community

13:51

builds very rapidly, but then you're

13:57

not generating the income so your

13:57

crime's gonna go up, you're not able

14:02

to pay the police, you're not able

14:02

to pay the fire department, and it

14:06

throws things completely out of whack. Your initial response to that is

14:07

to move the needle completely to

14:11

the other end of the spectrum. I'm giving you guys this example

14:13

because this is what happened in COVID.

14:17

The Fed at that point in time

14:17

was aggressively raising interest

14:23

rates, but at a moderate pace.

14:26

Not like insane. COVID hits the markets if you guys

14:28

remember what going bananas like

14:34

these crazy swings that we never

14:34

saw before all based on fear.

14:38

So the Fed overnight decided I'm going

14:38

to drop our Fed funds rate to zero.

14:44

So what that did was it created all

14:44

this chaos and craziness that they

14:52

now can't counterbalance by doing

14:52

what I just said, and that's bringing

14:59

the needle aggressively the other

14:59

way, which is what they tried to do.

15:04

They then did that. So now we're at this place where

15:05

these interest rates are insane.

15:09

And this was all to kind of slow

15:09

down the momentum of the economy.

15:13

And now the feds in a position where

15:13

they're going to need to very slowly

15:20

and carefully Sorry, CAF er, CAF,

15:20

care, carefully, carefully, I'm

15:28

just glad it wasn't me this time. Sometimes we all get it.

15:31

Yeah, we all get it. So, they have to be careful with this,

15:31

and they have to slowly move it back.

15:36

But, these reports, have

15:36

them a little bit twisted.

15:40

Because, in a perfect world, they were

15:40

hoping, okay, we jack these rates up,

15:45

Inflation rates like these reports come

15:45

in the CPI report or any of these reports

15:51

wind up coming in and are showing gradual

15:51

deceleration of inflation because for

15:59

the longest time, guys, we were in a

15:59

ridiculously deflated market, and I always

16:04

try to point that out to people where,

16:04

like the Fed, the Fed wants to keep that

16:10

if you want Inflation rate at around 2%.

16:14

I mean, we were sitting there at like

16:14

under 1 percent for like a decade.

16:19

It was like crazy how long,

16:19

like nothing was inflated except

16:23

the housing market, obviously. And that never stopped where like, it

16:25

just continued to rise, rise, rise.

16:29

But to get back to the point at hand,

16:29

they now are looking at these reports

16:34

and they're kind of in a catch 22.

16:38

Because it's like they know that they

16:38

can't raise rates They have really made

16:42

that stand where they're not planning

16:42

on raising rates but they also have

16:46

to be smart and I kind of give them a

16:46

little bit of an applaud of Not starting

16:50

to bring down those interest rates

16:50

yet because a couple of hot Inflation

16:54

reports came out and it's like alright

16:54

guys like we're still in a position

16:59

where these are coming out and February

16:59

especially because With January, like,

17:04

those reports are reflecting, like,

17:04

especially on the consumer part, we're

17:07

talking about what went on with Christmas

17:07

sales, and it's like, it wasn't true.

17:12

The February report was really true.

17:14

And, like, the Fed did something

17:14

intelligent where they didn't

17:19

kill us by saying, Oh my God,

17:19

we're not doing these cuts.

17:22

They're like, no, we're going to

17:22

still continue with these cuts,

17:25

but instead of doing a March cut,

17:25

we'll start to do this in June.

17:30

So now fast forward, what actually is

17:30

controlling long term interest rates and

17:35

that's the buying and selling of something

17:35

called mortgage backed securities.

17:39

So people sit there and think that

17:39

the fed controls long term interest

17:43

rates and they don't, they correlate.

17:45

And usually, like, they follow

17:45

each other, but when it comes

17:49

down to it, it's Wall Street. Wall Street buying mortgage backed

17:51

securities is what's making long

17:55

term interest rates go up and down.

17:57

So right now, because of the fact

17:57

that rates jack so quickly, nobody

18:03

has, like, has been sitting in a long

18:03

position on a 7 percent interest rate.

18:07

Because interest rates were so low, any

18:07

treasuries that were purchased were all

18:11

like in between where at it's low and now.

18:15

So anytime you're seeing these interest

18:15

rates spike a little bit or come down a

18:19

little bit, it's all short term money.

18:21

What we're all rooting for is Wall

18:21

Street goes long and for them to

18:27

go long, that's going to be very

18:27

profitable for them on holding these

18:32

higher interest rate securities.

18:35

And not selling off to try

18:35

to make short term money.

18:38

No, no, that's a lot of

18:38

people, so I'm sorry.

18:41

No, that was a really good way, you explained it really

18:42

well. That was brilliant, and

18:43

I don't know what to say.

18:45

But, one thing I want to ask is, how

18:45

does John Q Homeowner view the reports

18:54

of inflation ticking up a little

18:54

bit, and the Fed not raising it?

18:58

How does John Q Home Searcher

19:02

feel about that? They either care or they don't.

19:05

So at the end of the day, it's again,

19:05

the person who, cause I'm seeing this,

19:11

you're not getting the guy that has three

19:11

and a half percent and needs to finance

19:17

his closing costs out there to buy right

19:17

now, you're getting the guy where it's

19:22

like, mom and dad are giving me 200, 000.

19:25

Like I make an okay income with

19:25

my significant other and on

19:29

a 700, 000 house, I can drop.

19:32

200 000 it's going to be a gross payment

19:32

for me for a little while with the

19:36

hopes that it's inevitably going to come

19:36

down And i'll refinance that that is

19:41

obviously A generalization of the clients,

19:41

but that is more clients than not.

19:47

I agree I agree because

19:47

everyone I speak to everyone that's

19:50

looking to buy They're when I ask them.

19:52

Okay. Well, how much cash are you working with? my parents my relative is gonna

19:55

Gift me x dollar So I know how

20:01

much money they're working with. So it's a lot of gift funds.

20:05

That's I

20:05

mean, God bless the parents,

20:08

right? Yeah, but it's becoming more and more

20:08

common since Oh, let's just call it.

20:14

I will call it the height of covid

20:14

because People didn't want their

20:18

kids living in their basement.

20:20

Yeah And now

20:20

you got the financial side.

20:23

Also the younger generation of financial

20:23

planners out there are Realizing More and

20:30

more that you got to do something with

20:30

this excess amount of money Because it's

20:37

like they said everybody into like you

20:37

need five million dollars to retire and

20:42

they got everybody on that and guess what? Some of these people got

20:44

to five million dollars.

20:47

They're sitting there There's like my

20:47

mom our parents these guys like They

20:54

don't splurge on things they're living

20:54

this meager life as if they're gonna

20:58

run out of money I had to have a sit

20:58

down with my mom and be like ma you

21:02

can literally go on a world cruise

21:02

for the rest Of your life paid by the

21:08

interest accruing on these accounts.

21:11

It's like this legacy idea on Like

21:11

passing it along and not living your life.

21:17

There are plenty of these boomers

21:17

that are just not living their life.

21:20

So like these financial planners got

21:20

them into this program where it's like,

21:24

Hey, listen, if we do this right, and you

21:24

have 5 million earning 5%, you're going

21:29

to wind up making 250, 000 in interest.

21:32

You're My mom can't spend 20 grand a month

21:32

even if she tried so this thing's just

21:36

accumulating My mom doesn't footnote. My mom does not have five million dollars

21:38

It keeps accruing accruing accruing

21:42

accruing and it's like these planners

21:42

are just like you got to do something

21:46

like these guys It's like do you want

21:46

the government to keep your money?

21:49

Because if they didn't put this into

21:49

life insurance policies like You're,

21:54

you're wide open, and I mean, don't

21:54

even get me started with the five

21:56

year lookbacks and all these things. Estate tax.

21:59

Yeah, the government's trying

21:59

to take your inheritance.

22:02

So, these accountants and these financial

22:02

planners are like, you need to do

22:05

something with this money, and this

22:05

is something to do with that money.

22:10

Give it to your kids, set them up with a house.

22:11

Are you listening, Dad?

22:14

Yeah, for all those

22:14

rich baby boomers that are not giving

22:17

your kids money, which would help

22:17

all of us in regards to facilitating

22:21

home ownership, shame on you. I am talking to you.

22:25

I see you there.

22:28

Well, okay. So, you know, that brings me to another

22:29

point, really, where, um, you know,

22:33

we have this kind of back and forth,

22:33

you know, the needle swings one way

22:37

and then it swings the other way. We have a little bit of a spike and

22:38

then we have a little bit of a thing.

22:41

of a valley, let's say,

22:41

in, in mortgage rates.

22:44

Now, Bisendra, is there a direct

22:44

correlation do you see where more people

22:50

will come out and look for houses or

22:50

more people will list their houses for

22:55

sale when they see a certain spike or

22:55

when they hear something on the news or

23:01

if the Fed drops their interest rate? Is there some kind of correlation?

23:03

even, even if it's a remote, uh,

23:03

discrete kind of correlation.

23:08

It's very discreet, the correlation. If I had to, if I had to say there

23:09

was a correlation, it's very discreet.

23:13

I'll tell you why. Baby boomers are used to paying.

23:16

They remember their first

23:16

mortgage was in the teens as

23:20

far as the interest rate goes. So them hearing 7%, right?

23:25

I don't remember. I don't know. I don't remember what the rate was

23:26

this morning, but let's just call

23:30

it 7 percent for argument's sake. That's nothing.

23:33

That's nothing. They remember paying 15, 16%.

23:37

So them getting 7, that's good. That's good.

23:39

So if they're lending you the money

23:39

to purchase, why are you complaining?

23:43

And the problem is people

23:43

still continue to need housing.

23:48

That's number one. Families grow.

23:52

Families sizes decline. Kids move out.

23:55

Parents become empty nesters. They're just sitting in this house.

23:57

That's, you know, the equity

23:57

is through the roof to like,

24:01

Hey, Let's go down to Florida.

24:03

Right? So, they find a nice condo,

24:04

whatever, they got a new construction

24:08

build, whatever the case is. They're gonna sell, and a

24:10

new family's gonna move in.

24:12

Right, so the turnover rate is still there. You know, our population on

24:14

this planet is still growing.

24:18

So, there will always be a need. So, yeah, there was a little scare

24:20

there, but the thing I tell people,

24:25

People is it's either you want to

24:25

live in the apartment and pay your

24:28

landlord or you want to pay yourself.

24:31

Yeah. Right. Cause inflation affects people

24:32

differently, Inflation affects

24:36

even just the three of us sitting

24:36

here, it impacts us differently.

24:39

So, you know, like the baby boomers,

24:39

like his mom, for instance, she's

24:44

not worried about inflation. Right. Because she's sitting on 5

24:46

million, you know, accruing 5

24:49

percent interest every month. That she's, you know, 20, 000

24:50

that she's never gonna spend.

24:53

My father was the same way.

24:54

No, no, no,

24:55

but we're just, you

24:55

know, it's just for argument's sake.

24:58

It's not, you know, it's a

24:58

fictitious number, but she's

25:00

probably got 20 million, you know.

25:02

If, if she had $20 million,

25:02

like this podcast would be on a yacht,

25:08

and Jay would be wearing a bikini. Oh no.

25:10

Everyone wants to see that .

25:12

Jason Kleiger: Right. But it,

25:13

it affects every it,

25:13

that it was just a momentary blip on the

25:15

radar that, you know, housing was coming.

25:18

It wasn't, it didn't even come to

25:18

a halt because people were still

25:21

looking, the people who could qualify

25:21

to get mortgages were still out there.

25:25

Mm-Hmm. . And they still are. Yeah. You know, like Jay said, they're

25:26

gonna buy at whatever rate.

25:30

And then when the rates come

25:30

down, they're going to refi.

25:34

Yeah.

25:35

But on the flip

25:35

side is there is, uh, to kind of

25:40

parlay off Bisendra's point, there

25:40

is a pent up demand behind this.

25:47

Like there are those people who

25:47

are, they're not a person that if

25:52

the interest rates seven, and let's

25:52

just say, I'm not buying with the

25:56

interest rates higher than five. They're not going to not ever buy so that

25:58

there's a wave behind this and like that's

26:05

kind of what all of us are waiting for.

26:07

It's like where we understand that

26:07

when the Fed starts cutting their rates

26:14

and Wall Street starts buying back

26:14

into these mortgage backed securities,

26:19

like that there's going to be a tidal

26:19

wave where we're back to flourishing

26:23

on that market and go on a nice run. I mean our last run.

26:27

I mean, shoot, it was, it was

26:27

supposed to be around 2012 to 2020.

26:34

It should have been an eight year run,

26:34

but COVID messed that up and extended

26:38

that run for another two and a half years.

26:42

And now we're kind of

26:42

paying the piper for it.

26:45

Like COVID years shouldn't

26:45

have been that good.

26:48

These years shouldn't be that bad.

26:51

What the Fed, if they play this

26:51

right, they'll get back to a

26:55

normal market and we'll start to

26:55

get into slow but steady growth.

27:03

That's brilliant because

27:03

that just helped me understand because,

27:06

you know, I'm on, you guys have to

27:06

understand I'm on one side of this.

27:10

No, but you should, you should see a direct impact. I, I, yeah.

27:13

And, you know, Since, you know, like,

27:13

let's say, December, uh, you know,

27:17

November December was very quiet.

27:19

Yeah.

27:19

Um, and Since you

27:19

know late January February and

27:25

then early March really picked up.

27:27

It really picked up Yeah, one week

27:30

of 70 degrees.

27:32

Yeah First day breaks. That's it. Think about 20 degrees out

27:34

and snowing No, but I tell

27:37

sellers that are thinking about oh, I'm gonna wait till spring.

27:40

I tell them look your house

27:40

is already clean Mm hmm.

27:43

You've decorated it looks the best. It's gonna look all year And you

27:44

will only get serious buyers.

27:48

So you will fetch the same price

27:48

It's very close to that price that

27:52

you will get in the springtime. I'm amazed.

27:55

Think about it. Just think about it. Did you see

27:56

me with my jaw wide open there? Yeah.

27:58

I love those deals because they're so easy. Because there's no looky loos.

28:02

Yeah. There's only serious buyers out,

28:02

and they're planning ahead, and

28:05

I like to work with planners. Wow. I like with people that have

28:07

foresight and planning capabilities.

28:10

Yeah. They're like, oh. So if I buy in, I close in January,

28:11

new year, close in January, taxes,

28:16

everything else is fresh from day one.

28:19

Yeah. Yeah. Yeah. Right. So January, they can move in in

28:20

February or whatever the case is,

28:25

gives the seller time to move. Then they can make their renovations and

28:27

everything else and move in early spring.

28:31

Wow. You know, I never thought of that.

28:33

I always thought of, okay, you know,

28:33

if it's because if you remember

28:37

in, I think it was October, maybe

28:37

November, there was, you know, Um,

28:40

I've been living in a house for five

28:43

weekends

28:43

of just rain

28:43

and it consecutively and I

28:46

was always like, Oh, okay. Maybe that's why it's quiet.

28:49

Um, but you know, the way that you

28:49

describe it as, you know, hey, people

28:53

who want to see that house and see that

28:53

it's an open house, uh, we'll go right.

29:00

Like, what's the postal service saying?

29:02

Neither rain nor wind nor

29:02

hail, uh, they will go.

29:06

Yeah. And, you know, I've never thought of that.

29:09

Thank you for that.

29:10

Yeah, yeah.

29:10

Because the real

29:11

buyers are still out there.

29:13

Yeah. No, no, no. That's, that's And

29:14

speaking of real buyers Mr.

29:17

Marcus. Um We always hear about cash buyers

29:18

offering less, um, and getting

29:24

the house over higher offers where

29:24

people plan on putting even 20

29:28

percent down and financing 80%. How would, I'm, I'm

29:31

looking for a house, right?

29:34

I'm not really, but I'm

29:34

looking for a house.

29:37

And, you know, look, I, I'm a millennial.

29:39

Um, you know, I have, uh, my obligations.

29:43

I, I have my bills and I just

29:43

don't have accumulated cash.

29:47

How do I make myself? More competitive to compete with these

29:53

cash buyers What I generally

29:53

will do and not to try to plug the bank

29:59

that I work for but I'm gonna go do it do

29:59

it Do it we have something called secure

30:04

buy so what we wind up doing is I will

30:04

take in the loan Instead of just issuing

30:10

a pre approval I would literally have

30:10

the client go through the entire process

30:15

to get committed Issue the commitment

30:15

so that way they can go out and shop

30:20

with a commitment letter so at least on

30:20

that commitment letter, they're going to

30:25

see in black and white like all of the

30:25

obligations with the exception of the

30:33

homeowner's insurance, obviously wouldn't

30:33

have that in place or the appraisal,

30:37

you're not going to deal with value yet,

30:37

because you haven't purchased anything.

30:40

But at least you have that ironclad,

30:40

hey, listen, an underwriter, not only

30:45

the loan officer has documented and

30:45

cleared all conditions on the assets.

30:50

So it's like, and they've done

30:50

the numbers with the incomes.

30:54

And it all works to the point where the

30:54

bank has committed based on these numbers.

31:01

And obviously based on the house that

31:01

you're looking at, sits with inside

31:04

this criteria, it gives them that

31:04

type of leg that they're going to need

31:08

to compete with the all cash offer. Cause at the end of the day, we all know

31:10

sellers want the most that they can.

31:15

If they're going to make a concession

31:15

for an all cash buyer, based on

31:19

the fear that a buyer isn't going

31:19

to be able to get a mortgage.

31:24

That's one thing, but the more secure

31:24

they are in this process, the better.

31:29

And most of my referral partners, to

31:29

be honest with you, they'll get me

31:32

on the phone with that listing agent. And most agents that are top notch agents,

31:34

they know the right questions to ask me.

31:40

And by the time, and I tell my agents even

31:40

if I didn't have that secure buy in place.

31:46

By the time I get off the phone with

31:46

that listing agent, they should feel the

31:50

confidence that I know what I've been

31:50

doing for two and a half decades, that

31:55

I can pretty much guarantee with out

31:55

obviously external circumstances coming

32:00

in, be it a death of somebody, loss of job

32:00

or something to that effect that based on

32:06

where we are right this second with this

32:06

person still working with the money that

32:09

they have access to, they are undoubtedly

32:09

going to get a, They're going to be able

32:13

to get an accepted offer on this house,

32:13

and they're going to be able to fulfill

32:18

that obligation to get that mortgage. So, a lot of times, I'm having those

32:20

conversations with the listing agents, and

32:24

it's funny, you'll find loan officers to

32:24

get annoyed that listing agents call them.

32:28

And to me, like, they're

32:28

weeding out those agents for me.

32:32

Like, if I got a listing agent

32:32

that's contacting me, I'm like, I

32:38

want to hang out with this agent. You're doing your due diligence.

32:40

You were scratching me where I itch. Like this is my wheelhouse.

32:44

I want you to talk to me. Cause I want to create that rapport.

32:47

I want to know like what you're

32:47

looking for in a loan officer

32:51

and I ain't going to pursue you. So by all means, call me and

32:52

let's go over that pre approval.

32:56

And if you need that secure buy in place. Give me a couple days and I'll

32:58

have that in place for you.

33:01

It's a good tool Yeah, as a listing agent, I'll tell you if a buyer right

33:02

it's an education curve, right?

33:08

It's definitely an education curve

33:08

because the only thing that that buyer

33:11

is missing is now the identification

33:11

of a property that they want To buy

33:14

and the property to appraise so it's a

33:14

much it's it's not as fast as cash or

33:19

as fast as cash can be Right, because

33:19

that investor is paying cash, still is

33:24

going to do their own due diligence. They may or may not want an appraisal.

33:27

They may or may not want it. Traditionally, they don't want

33:29

an inspection, but whatever.

33:31

You know, and then they

33:31

want to run their numbers.

33:34

So within that 14 day span that the

33:34

average investor takes, they say,

33:39

Okay, we can close in 14 days, right?

33:41

So what? Okay, Mr. Mark is going to close in 30. Right.

33:44

What's the difference? You wait, you got an extra 15

33:44

days to pack your boxes, right?

33:47

And that's why that product is good. Okay. That's a good tool.

33:50

It's a good tool. And I, you know, if you, if you can get

33:50

a secure buy because not all everyone

33:56

qualifies for that, it's the way to go.

33:58

If you can do it because it makes

33:58

you absolutely more competitive

34:00

and most sellers aren't

34:00

ready to leave in 14 days anyway.

34:04

So it's like, and obviously

34:04

as we know, the attorney has.

34:10

a decision to make. So generally speaking, after a contract of

34:12

sale, a title report needs to be ordered.

34:18

So most attorneys are going to wait

34:18

for a mortgage commitment before they

34:24

place that order, unless the realtor,

34:24

me as the lender, push up on Jay and

34:30

say, Jay, listen, like, we need to get

34:30

this done in ridiculous amount of time.

34:34

Like, please order the

34:34

title ahead of time.

34:37

But that incurs costs for both

34:37

the client and the lender.

34:40

the attorney that could be like kind

34:40

of left if this thing doesn't wind

34:44

up closing, they could be left on

34:44

the hook for some sort of obligation.

34:48

So with that being said, when you're

34:48

doing the secure buy, that gives me

34:52

a little bit more leverage also to

34:52

go to Jay and be like, Jay, listen,

34:56

I got a commitment on these people. You're safe to go unless as long as

34:57

nothing external in circumstances

35:02

pops, like we're good, place

35:02

the order, let's expedite this.

35:05

And again, most of the time. This is a surreal event for sellers.

35:09

And like the more you understand that,

35:09

like the better you'll understand the

35:13

psyche of how this all kind of works,

35:13

where, and Bisendra can attest to this.

35:19

It's almost like they're in this process.

35:22

Like it's almost dreamlike. We get to the point where we clear this

35:23

file to close as if they're shocked

35:28

about it, like the fact that they have

35:28

to now pack and leave, like it's like

35:33

an amazement, like as if this was not. What was he intended to happen?

35:37

It's not it's

35:38

not the course

35:38

we set. Yeah, and all of a sudden it's just

35:39

like oh no We need another 30 days.

35:42

So you just made me kill myself for

35:42

two and a half weeks I got this done.

35:45

And now you're gonna make me sit for 30 days. Yeah,

35:47

that's the best one.

35:49

I'm gonna come

35:50

well That's where the

35:50

attorney steps in and says hey, we got

35:54

a post closing possession for seven days

35:56

No, and it's

35:56

the same seller that'll tell

35:58

me at the listing appointment. Yeah, I need to be In

35:59

Myrtle Beach by this day.

36:04

Okay. So now we do everything. Everyone's jumping through hoops.

36:07

Oh, but wait. There's more. Mm hmm.

36:10

So,

36:10

yeah. It's like, oh, I need an on or about

36:10

of, of 20 days and nothing more.

36:14

And then all of a sudden, you know,

36:14

who's the one delaying everything?

36:17

It's

36:17

always them. Yeah, and then all of a sudden

36:18

Myrtle Beach is now in California.

36:21

It's like, what happened to Myrtle Beach? Where'd it go?

36:23

Quit murder. Who moved Myrtle

36:24

Beach? They just picked it up. They picked it up

36:25

and

36:26

moved

36:26

it. They just grabbed it and moved it. Nobody even said nothing.

36:31

Well, I like that product, though. Yeah, that is.

36:34

It's helpful.

36:35

You know, um, I'll

36:35

say that, uh, it is, it puts people

36:40

on, on pace with cash buyers.

36:43

And also, you make an offer that's, you

36:43

know, 10, 000 more than a cash buyer.

36:48

And granted, in the scheme of things, now

36:48

100, 000 house, that's a lot of money.

36:53

But if it's a million dollar house, 10,

36:53

000 more isn't that much more money.

36:57

But if you have and you can give the

36:57

assurance to not only the listing agent,

37:01

but the listing agent through to the

37:01

seller Then you know, it's math though.

37:06

It's easy math. Yeah, and you know, you're getting more

37:06

money Wherever if you move to to myrtle

37:11

beach now, you can put that towards a boat

37:11

Whereas if you took the all cash offer

37:16

where you know, they pretty much would be

37:16

vetted similarly You You know, now you're

37:21

not getting that money towards a boat.

37:23

No, but like I

37:23

said before, it's an education curve.

37:26

So, you're, the seller is not getting

37:26

a trunk load of cash at the closing.

37:30

You're still getting a wire. Right?

37:33

Bank check. Or a bank check. So, A buyer coming in saying, I'll

37:35

offer X cash and can close 20 days,

37:41

you know, we'll give them a benefit

37:41

of, you know, or a conditionally

37:45

committed buyer would secure by like Mr.

37:48

Marcus was depicting and

37:48

they're offering more.

37:51

You're getting the same money

37:51

coming across the table.

37:54

Yeah. And, and that's something where, um,

37:54

some people get a little confused.

37:59

I come across it with some of my clients where. They think like cash is

38:01

like a suitcase full.

38:04

Yeah. Yeah. Yeah, and you know, I say no, that's

38:05

not how that's not how it works They're

38:09

really, you know, people look at and

38:09

it's an old school way of thinking but

38:13

people look at an all cash offer as you

38:13

know Just that but what it really does

38:19

is it just does away with the mortgage

38:19

contingency and that's really it That's

38:23

um, you know, and when what are you gonna

38:23

do make a play for their down payment?

38:26

Which is your only remedy if a cash buyer?

38:29

Uh, you know, walks away from the

38:29

deal, uh, without any good cause.

38:32

And, and, and the problem with that is

38:32

no one's walking, if it's a 600, 000

38:37

house, no one's walking away from 60, 000.

38:40

So it's going to take you forever

38:40

to go and sue that person.

38:44

They're going to put a Lis

38:44

Pendens, what a Lis Pendens is,

38:46

it's basically Cloud's title.

38:49

And there's a, when they claim

38:49

that there's a dispute over

38:51

the ownership of this property. And it's going to take you

38:53

forever, it's going to take

38:55

you legal fees and everything. And, and, you know, so,

38:57

so that's just a, a, a.

39:00

You know, it's not like you have

39:00

a play at their down payment.

39:02

Yes, you can make a play But at

39:02

the end of the day, you're still

39:05

going to get the same issues.

39:07

You're going to get that lis pendens You're not going to be able to find a buyer right away If you're going to

39:09

try to keep that person's down payment

39:13

and and that's really the allure

39:13

of the quote unquote Uh cash buyer

39:20

And we're right now

39:20

in a situation where our supply and

39:23

demand curve is So leaned towards

39:23

the seller where you're not really,

39:31

unless you're on the tightest of tight

39:31

timelines, you're, you're going to

39:39

with, you're going to get a better

39:39

deal with somebody with a mortgage.

39:41

Like, why are you going to take

39:41

less in a market where if this

39:45

guy falls through, you can sell it

39:45

fairly quickly to somebody else, but

39:49

let's put that aside for a second. Most.

39:52

intelligent people that would be

39:52

cash buyers, don't leave six or 700,

39:59

000 in their checking account earn

39:59

a point 2 percent with Chase, you

40:04

know, so like this money is earned.

40:07

So and Bisendra can attest to this,

40:07

like if he calls for on a cash offer,

40:13

proof of funds, most of the time

40:13

he is getting handed an investment

40:19

account or something where this is

40:19

tied up where something has to go.

40:22

And trust me when I tell you this,

40:22

if you have ever seen a savvy buyer

40:27

that is dealing A brokerage account.

40:30

These people are obsessed with trying

40:30

to make every last nickel the second

40:36

they can before they are forced

40:36

to sell it to stop earning money.

40:40

So all of a sudden, I've been down this road. I've watched the even

40:42

on the mortgage side. It's like, Hey, it's Monday.

40:45

I need you to sell this off so that

40:45

way we can close by next Monday.

40:48

No problem. Ended a day Monday market was running J.

40:52

I'll sell it tomorrow next

40:52

day market still running J.

40:56

I'll sell it tomorrow It's

40:56

like you don't sell this today.

40:59

I can't document this in time

40:59

to get you closed by Monday It's

41:03

like yeah, but I'm making money. It's like Okay, and like

41:04

then you got that battle.

41:08

So you like and again like this isn't

41:08

Especially in New York where you have

41:13

to close on that second of that day.

41:16

Like there's plenty of states with the honor before. Here it's always on or about.

41:19

So that everybody can sit there

41:19

and play with these times.

41:21

So, me and Bisendra were making

41:21

light of it, but it happens a lot.

41:25

Where it's like, people are

41:25

like, I gotta close on April 1st

41:28

or the world's gonna collapse. And then lava's gonna come

41:29

in and ensue the whole long.

41:31

Long Island's gonna sink into the ocean. It's like, oh no, now I can't, now

41:33

I gotta, now it has to be May 3rd.

41:36

It's like, you just made us

41:36

kill ourselves to get April 1st.

41:40

Well, my kid's got a lacrosse game on Wednesday.

41:42

No, the best is,

41:42

I'm going to Italy for a month.

41:45

What yeah, it has to close, you know,

41:45

I'll have like for example, I'll have

41:49

an honor about of April 1st, right?

41:51

Okay, and so basically you have until

41:51

May 1st until anyone can kind of push and

41:56

prod and everything and You know, they

41:56

say oh well, you know starting mid april,

42:01

you know, so halfway through that that

42:01

adjournment period I'm going to Italy

42:05

For a month. Yeah, because that's just like a

42:06

random thing that people just get up

42:08

one morning and say they're gonna do. I'm

42:10

like, don't you care? Mom with her five

42:12

million

42:12

bucks, see what happens mom? Now you're going to, now you're

42:14

supposed to buy something

42:16

and you're going to Italy. Like, you ever gonna listen to me?

42:19

Yeah, yeah,

42:20

you know and it and

42:20

it's worse for buyers, obviously.

42:23

Sellers can say, oh, what are you gonna do? You know, you're gonna put a,

42:25

you know, sue for a specific

42:27

performance or whatever. And specific performance is

42:28

basically just saying, hey,

42:32

I'm in contract for this house. Sell me this house for the

42:33

price that we agreed on. So it really is kind of boring.

42:37

Um, but for buyers and they decide,

42:37

I mean, previously we've spoken about

42:43

buyers who, you know, go out and buy

42:43

Mercedes and expensive things and.

42:48

You know, now we're talking about

42:48

buyers who just disappear for a month.

42:51

Oh yeah.

42:52

And then, you know,

42:52

part of what I say is we're going

42:55

to probably close right around here.

42:58

Do not plan anything because

42:58

what will happen is you'll

43:01

blow dates in the contract. One of them would be, uh, you

43:03

know, the honor of that date.

43:06

And, and if you don't have

43:06

your, your commitment.

43:09

Forget about it, you'll,

43:09

you'll blow that date.

43:11

Or, uh, if you don't give

43:11

everything to your, your lender

43:15

or your, your, you know, to Mr. Marcus here.

43:17

Okay. You're definitely going to, you know, I

43:18

don't wanna say screw up, but I just did.

43:23

Yeah, that's fine. You're definitely gonna screw up

43:24

your, your mortgage commitment date,

43:26

your mortgage contingency date. And what's gonna happen is

43:27

you're gonna waive it and you're gonna become an all cash buyer.

43:31

You don't get your mortgage too bad. You gotta show up with the money.

43:34

Yeah, too bad is right.

43:36

Yeah, it's really what it is. It's too bad.

43:39

There's a, there's a, there's

43:39

a consonant in there somewhere,

43:41

but I don't want to say that.

43:44

Carefully. Carefully.

43:47

So, um, those are, uh,

43:47

thank you gentlemen.

43:50

Um, I had, uh, you know, a few

43:50

more questions, but because

43:54

they're so comprehensive.

43:57

You've pretty much answered it. Other than the one question

43:58

I have for Bisendra.

44:02

Okay.

44:03

I'm ready. Now, please explain this to me, because I,

44:04

you know, I saw this in the news, um News?

44:10

Yeah, I always see it in the news. Why are you watching the news?

44:12

Ah, I don't know why. Have you learned nothing?

44:15

Yes, no, is

44:15

that the correct answer?

44:17

Um NAR, okay, we hear

44:17

about this 6 percent now.

44:23

Yes. I know we're all But I'm the attorney

44:23

so I don't care so now You know and and

44:32

this goes to sellers because the news

44:32

is telling us that sellers will now not

44:37

have as high as Close not who said that

44:37

I will who slow Joe my Listen listen

44:47

listen, I will always

44:47

I respect the position the person

44:53

currently holding the position right now.

44:56

I don't hold it against him personally

44:56

Because those are things that happen

45:00

when you reach a certain stage in life

45:04

Like being 80.

45:05

Yeah. Yeah. Yeah, right so, uh, you know, I love my

45:06

country and The position is the position

45:12

right but if you're unable to perform

45:12

Okay, it's like live it out, but don't

45:18

do it again at the end of the day. You have a minimum of the day

45:20

coming You have a minimum to

45:24

become president at 35 years old.

45:27

There is no reason that they

45:27

should not throw a maximum.

45:32

I agree. And it like at the end of the day,

45:33

again, no, I don't lean either way.

45:37

Anybody that knows me knows I'm a straight

45:37

independent, but when it comes down to it,

45:41

I need to cap where the age of the person

45:41

running The country is like and I'm sorry.

45:50

I know that like can lead into

45:50

quote unquote age discrimination.

45:54

It's not and it's like it's just

45:54

it's it's the same way the other way.

45:58

You guys at some point in time,

45:58

Congress decided that somebody

46:04

younger than 35 years old.

46:07

Couldn't. They didn't have the capacity. Have the capacity to run it.

46:11

So you have to look at it the inverse way. And it's like if you need to

46:13

cap that at 75 years old, I will

46:16

vote for that to get passed. If like it came down and I had

46:18

a say in something like that.

46:21

And it's just, it's just the

46:21

reality of the situation.

46:24

Well, interestingly

46:24

enough, um, I only recently became

46:27

eligible to run for president. And I do not have the capacity.

46:32

Okay, but you at least you

46:34

I

46:34

admit that I won't run for president. Okay, so let's talk about this NAR thing.

46:38

Let's talk about the statement

46:38

Yeah, we're going to NAR Backwards

46:43

Let's talk about the statement. Okay, commissions have always been

46:44

negotiable Always indefinitely when I did

46:49

the research is in excess of a hundred

46:49

years So I don't know what this what

46:54

he's talking about First of all, cuz he

46:54

made two Errors in his statement that

46:59

they will now become negotiable, right?

47:03

And they've always been and any realtor

47:03

even day one agent will tell you it's

47:07

always negotiable, you know and then

47:07

secondly He said that it will save

47:15

buyers money when it's actually doing

47:15

the opposite Right, because if if you

47:22

actually look at the transaction Very

47:22

superficially it's always the buyer

47:27

bringing all the money to the table all

47:27

that money coming to the table Right.

47:32

So the proceeds from the seller

47:32

the way was structured or it's

47:35

always been structured is a Portion

47:35

of the proceeds from the seller

47:39

gets distributed to the agents to

47:39

compensate them their commissions.

47:43

Okay. So now the way it's Structured

47:44

is the buyer may potentially

47:49

have to bring extra money

47:52

more money for the buyer To

47:52

the closing to pay the real estate agent.

47:57

That's representing them.

47:58

Yeah,

47:59

so how is that fair? I think they just missed because it's

48:00

like you're trying to solve one problem

48:05

Where it's like I feel like they just

48:05

missed the boat by doing it the other way.

48:09

So hear me out on this All right, so

48:09

I do believe You That a buyer should

48:16

be represented by a real estate agent.

48:19

So buyer broker should always exist

48:19

Always exist this whole concept

48:24

of both realtors working on behalf

48:24

of the seller always sounded crazy

48:29

to me Made absolutely no sense. But with that being said There is no

48:31

reason why, or anything that I can see in

48:39

law, or any other reason on earth that I

48:39

can understand justifiably why all of the

48:45

commission can't come from the seller's

48:45

side of it for both of those agents.

48:50

Like, I don't understand why they can't

48:50

just split the commission, like, as if,

48:55

oh no, whoever's getting the commission,

48:55

you have to work for that particular, no.

48:59

Once again, this is negotiable. If a seller wants to sit there

49:01

and say, Hey, listen, I am putting

49:04

out 4 percent on this listing, 2

49:04

percent on the, for the buyer side,

49:09

2 percent for the listing side. Again, this can still be negotiated,

49:11

but what buyer is going to turn to

49:16

their agent and say, you know what,

49:16

Bisendra, I know I'm not paying you,

49:20

but instead of you receiving 2%, I

49:20

want you to receive one and a half.

49:24

What. Person is going to do that.

49:28

No, I none, you

49:28

know Why because the person they chose

49:32

to represent them should be worth

49:32

what they're gonna pay them, right?

49:36

So if they don't feel that they're

49:36

getting the best representation

49:39

go find another representation

49:39

because this process is nothing new

49:43

for me But but there's a big but

49:47

if your agent is worth

49:47

that, let's just use mr.

49:50

Marcus's number two percent I like

49:50

that number for a buyer's agent.

49:54

Don't, don't ask. That's just my opinion, right?

49:57

Yeah, it's even better, right? If the agent is able to get you the

49:59

property that you want in the location

50:03

that you want for the price that

50:03

you're willing to pay and that you're

50:05

comfortable with, are they not worth 2%?

50:08

They just did exactly what you asked

50:08

for them, asked of them, right?

50:12

So I agree with Mr. Marcus. Everything should come from one side.

50:16

and as it works and a seller that does not

50:16

want to pay a buyer side because I've seen

50:20

it all over the MLS since this actually

50:20

right before the actual ruling came out.

50:26

It's saying zero across

50:26

the board, which is fine.

50:29

Mr Mr. Seller, I'm pleading to anybody that's

50:30

in the air shot of this sound right now.

50:34

Do you want a buyer's

50:34

agent coming in and saying?

50:37

Yeah, this is the house or

50:37

hey, check out the skylights.

50:44

Look at the detail in the molding, you

50:44

know, all these great things pointing

50:48

out the great aspects, helping you

50:48

get the price that you're looking for.

50:53

Or somebody just opens the door.

50:55

Yeah,

50:55

that's the difference. That's literally what's going to happen.

50:57

Well, no, nevermind. I was going to talk about the PCDA,

50:59

but that's coming from the seller side.

51:01

But can I,

51:02

can I just ask

51:02

the United States one question?

51:05

You guys. Don't have enough things To try

51:06

to fix that you need to try to

51:12

fix things that aren't broken.

51:14

There's a reason why The Major

51:14

League Baseball didn't wake up

51:19

one day and go, You know what?

51:22

Let's have everybody run to third first.

51:25

Because it wasn't broken. You're trying to fix

51:27

something that's not broken.

51:31

Nobody's complaining about it. Also, you guys can go get elected

51:32

and say you did something.

51:36

You didn't do nothing here. You're not doing anything anywhere else.

51:40

You guys need to start pulling

51:40

your weight in Congress and making

51:44

laws that actually make sense. Because we're all damn sick and

51:46

tired of you picking on people

51:50

that are trying to make money in

51:50

a free market system and trying to

51:53

turn this into a communist nation. Go deal with the problems we have.

51:57

Stop messing with things

51:57

that aren't broken.

52:01

Yeah, I'm getting mad about it because

52:01

all we're hearing about is this.

52:04

He's right though, he's right. Infuriating.

52:06

You did it to my industry, now you're

52:06

trying to do it to this industry.

52:10

It's enough. You got problems to fix, go fix them.

52:13

No, but people don't understand. He's right because real estate

52:14

runs the entire secondary

52:19

market for everything, right? Let's, we'll take the three of us.

52:22

You want to buy a house? You call me. I tell you go get pre approved.

52:25

You call Mr. Marcus up, you get pre approved,

52:25

and you go buy something.

52:27

Then what happens? You work, you start to do renovations,

52:29

then how do those products get to your

52:34

local store that you go to purchase

52:34

all your materials from, right?

52:38

And the trades, and the trades. And all the trades, right?

52:41

So, you hire trades, you hire,

52:41

you know, your plumber, your

52:43

electrician, those are the trades. and then you go buy supplies

52:45

at, you know, Your local store.

52:48

If there isn't one, then you go

52:48

to big box, you know, then how

52:51

do those things get to the store? There's employees there, you know, it's

52:52

this whole trickle down effect that people

52:55

don't realize that's what's running the

52:55

economy And if you look at it very Not

53:01

even close It's easy to figure out because

53:01

that money gets funneled right back

53:05

into the economy and then what happens? Inflation will start to come down

53:07

because people are actually spending

53:10

the money that they earn Right. And then more jobs, more, you know,

53:12

it's just like very cyclic, but you

53:17

know, what they're trying to do is

53:17

basically stunt, in my opinion, the

53:21

real estate market, because it's

53:21

creating, it's creating too much wealth.

53:25

And it's always has been, but

53:25

you know, the last few years I've

53:27

seen spikes, you know, cause I, I

53:27

independently look at the market.

53:31

The housing market across the board

53:31

like you were talking about very

53:34

early the housing market You know

53:34

locally in different areas different

53:38

sectors, but what's happened? I actually saw spikes on Long Island

53:39

in very in pockets of appreciation

53:45

of 22 percent annually Wow You

53:45

know, and traditionally real estate

53:48

brings, you know, on average, 6%, you

53:48

know, appreciation annually, right?

53:55

So once you start outpacing that you're

53:55

creating real wealth, you know So you're

54:02

looking at people that you know what

54:02

five years ago six years ago that bought

54:05

their house for let's just say 500

54:05

They can bring a million dollars now.

54:10

That's that's

54:10

something right, right?

54:12

And so

54:13

what's happening? The government's not getting their cut

54:13

I mean, that's just my, my opinion.

54:17

Cause somebody's gotta get, somebody's gotta win. Right?

54:20

And they don't want the little guy to win. But I want the little guy to win.

54:23

Well, and

54:23

you know, it's also kind of

54:25

slanted against certain people. Um, you know, when we talk about gains

54:27

tax, um, you know, it really just hits

54:34

at, uh, and gains tax is an income tax.

54:37

It's not, it doesn't really have

54:37

much to do with real estate, but it

54:39

does come into play with real estate. Uh, when you've, for example, a lot of

54:42

people lived in their house for over 20

54:46

years and they bought their house for

54:46

a hundred thousand dollars and now they

54:49

sell their house for a million dollars. Now, if you're married, you

54:51

get a 500, 000 exemption.

54:54

And then all of the proceeds after that

54:54

is taxed at the capital gains rate.

54:59

Um, and you know, you're also, you're

54:59

also taxing people at the same capital

55:05

gains rate who are making millions and

55:05

millions and millions and millions and

55:07

millions of dollars on Wall Street. So, you know, here you have, uh,

55:09

you know, John and Jane Q homeowner

55:13

and, you know, they, they, they,

55:13

Bought into the suburb lifestyle.

55:17

They raised their kids. Their kids are out, now they're

55:18

empty nesters and they wanna sell.

55:22

Now they're gonna have to pay not only

55:22

the New York State Transfer tax, and

55:25

if you're in the city of the New York

55:25

State, uh, the New York City, city

55:28

RPTT Transfer Tax, they're also gonna

55:28

have to pay income tax at the capital

55:33

gains rate for the pound, the, the

55:33

period of time that they own the house.

55:37

It's crazy. And, and it's just, it, it's insane.

55:40

It's like, you know, part of it is

55:40

almost like kicking the, the ladder down.

55:44

Um, you know, you don't want certain

55:44

people to accumulate a certain

55:49

amount of wealth at a certain

55:49

amount of time in their life,

55:51

at a certain time in their life. But, and, you know, you have them taxed

55:53

at the same rate as people who make,

55:57

uh, you know, millions of dollars buying

55:57

and selling, day trading, whatever.

56:00

Day trading? Yeah. Those guys are making a killing.

56:03

And I know Mr. Marcus wants to say something.

56:05

Just,

56:06

I'm, I'm

56:06

still mad about that.

56:09

.

56:09

Jason Marcus: I'm, I'm trying to, I'm

56:12

No, you're get

56:13

there. You're good there. Don't take you, you looked,

56:13

you looked ramped up a bit.

56:16

We, we

56:16

let the, we let the, the demon out. we did.

56:18

You like all of a sudden

56:18

it's just like, ah,

56:21

gosh. Just No, but it's a touchy subject. I'm not gonna lie.

56:24

It's a touchy, it's infuriating ' Jason Marcus: cause it. You just sit there and you watch

56:27

just these handshakes and like

56:31

how they make this these tax

56:31

codes they're so complicated and

56:35

it's it's constantly targeted to

56:35

just Annihilate the middle class.

56:41

It's it's Infuriating and it's like

56:41

these are my these are my friends.

56:45

These are my colleagues. These are my brothers These are my

56:46

sisters like these are my people.

56:49

It's like I like as much as like

56:49

The hierarchy and the super uber

56:54

wealthy doesn't care about me. I don't care about you guys I care about

56:56

these guys and I'm tired of like the way

57:02

that this system works to just reward

57:02

those people because of this concept with

57:08

this Trickle down system that doesn't

57:08

ever happen Like these people don't

57:13

give back like they say they do and

57:13

I know you there's gonna be arguments

57:16

with this and it's like yeah It works. It works.

57:18

It works, but it's like I sit there

57:18

and I watch billionaires become multi

57:24

billionaires and inevitably gonna

57:24

get into trillionaires and you guys

57:27

are gonna tell me that I should thank

57:27

them for that point Oh, oh, oh one

57:32

percent they give back like Thanks.

57:34

That nobody ever sees. You know, thanks, I guess?

57:36

Like, you know what? Like, it just doesn't happen.

57:39

And it's like, Congress is embedded. Like, the tax codes are ridiculous.

57:43

Every year I cringe. Like, just in regards to what I have

57:45

to, like, sit there and contribute

57:48

more and more and more and more. And it's never enough.

57:52

And I'm blessed. Like, thank God I do well. But it's like, It's painful, because

57:54

like then you see like the other side of

57:58

it, and it's like you're just keeping,

57:58

you're keeping everybody down, and

58:03

it's, it's, it's when, when is enough?

58:06

Yeah, it's kicking

58:06

the ladder down, it really is.

58:09

You know, it's the people who either

58:09

get in power or they get in wealth.

58:14

They don't want people following them,

58:14

and they enact policies or lobby.

58:19

And I know we're getting a little bit

58:19

away here, but, um, you know, they

58:22

enact policies and lobby, you know,

58:22

politicians to, uh, make laws and

58:27

skew, uh, especially the tax code in

58:27

favor of, uh, Certain people and and

58:32

it really does kick the ladder down

58:32

and and you know people don't want to

58:37

have People follow in their footsteps

58:37

or accumulate the wealth that they have

58:41

well There's a lot of

58:41

people that feel like the two of well

58:43

the three of us And that's why Americans

58:43

are leaving right Americans are leaving

58:50

the country no no they're becoming

58:50

expats and I try to beat the draft

58:54

No, they're leaving the country there. They're going to places in Central

58:56

Central America South America and abroad.

59:05

Late last week, since the

59:05

1930s, there's never been a

59:09

mass exodus of this magnitude.

59:14

and everybody knows, I'm not shy about it.

59:18

When Bisendra retires, Bisendra

59:18

is going to Costa Rica.

59:21

But I have my own reasons for that. And I'm really getting tired of what Mr.

59:27

Marcus depicted. It's just like, there's no benefit.

59:30

No matter how hard you work, no matter how

59:30

much you put into the system, The system

59:35

is not fruitful for the middle class

59:37

no, and it's like until

59:37

the middle class realizes that they have

59:40

to start Electing independents like it's

59:40

never gonna change like you gotta get

59:45

away from like they're so smart on how

59:45

they divided all you guys And it's like

59:50

the funny thing is is I sit there and

59:50

have these conversations Where it's like

59:54

you guys picked the left or the right and

59:54

it's like most of you guys even making

59:58

that choice You're down the middle and

59:58

it's like how are you not recognizing

1:00:03

the fact that we can have power To change

1:00:03

this thing, but it's like they're so Have

1:00:10

you so twisted that you think you need to

1:00:10

be on one side of this fence or another?

1:00:14

I have never met in my life

1:00:14

a person that I agree with

1:00:21

everything that they say You Never.

1:00:23

I've never met it. So you're sitting there on

1:00:24

either side of this fence.

1:00:28

You're sitting there and you're swallowing

1:00:28

the garbage that they're feeding you

1:00:33

and Literally going against your own

1:00:33

personal ethics to agree with somebody

1:00:40

that doesn't represent the ideologies that

1:00:40

you believe in just because 70 percent

1:00:46

of what they say you believe in or 60 or

1:00:46

80, whatever it is, and you just think

1:00:51

that it's like the other side so bad.

1:00:54

But guess what? You still agree with 20 30 percent

1:00:55

of what they're saying and it's like

1:00:59

you're not voting down the middle

1:00:59

like I just don't understand it

1:01:02

It's been driving me nuts forever. I know I'm on my soapbox I was a

1:01:04

political science major and like this

1:01:09

kind of gets me all heated I could have

1:01:09

got what basically become a teacher go

1:01:12

to law school or go into mortgages like

1:01:12

I went that route because at the end

1:01:17

of the day and My wife kind of gets a

1:01:17

little annoyed at me that I disconnect

1:01:21

myself from politics for most of the

1:01:21

reason probably because you guys see me

1:01:25

go ballistic and explode like a lunatic,

1:01:25

but it's because I understand that.

1:01:31

I can't tolerate the way that we're

1:01:31

getting controlled by all these guys

1:01:36

and it's, it's, it's embarrassing. It's straight up embarrassing.

1:01:39

We should all be embarrassed.

1:01:40

It, it, you know, it, it,

1:01:40

it sucks that every four years it comes

1:01:45

down to who is the lesser of two evils.

1:01:48

It really has become that. And it, and it's horrible.

1:01:51

Because, Maybe on one party, I agree with

1:01:51

one thing that I put so much weight behind

1:01:58

that it, you know, it forces me, I guess

1:01:58

you could say, to vote for that party.

1:02:03

Rather than, you know, maybe

1:02:03

I agree with that one thing.

1:02:09

And the other side has, you know, you

1:02:09

know, well, that's a couple things I agree

1:02:12

with here and there, but you know what? They're not they're not killers.

1:02:15

Okay, but that one thing I

1:02:15

need to have and therefore I'm

1:02:19

voting for this You know party

1:02:21

and that's what they bank on. Oh 100.

1:02:23

That's what either side banks on

1:02:23

that you you find some That one

1:02:27

attribute that you connect with

1:02:27

and resonate with that you will you

1:02:31

like lay down for it's not happening

1:02:33

I'm constantly trying

1:02:33

to take the eyes off the like where

1:02:36

I really You sat down and I'm like,

1:02:36

Oh my God, these guys are good.

1:02:42

Like to sit there and go put abortion

1:02:42

as the main focus, again, trying to

1:02:53

fix something that wasn't broken. Doesn't matter what side you lean

1:02:55

on on this, you got to understand

1:02:59

that was done for a reason.

1:03:02

It's like you have that

1:03:02

immigration problem.

1:03:05

You have these foreign lunatics

1:03:05

doing all these things.

1:03:09

You got all these crazy, bigger problems.

1:03:12

So what do they do? They plop something that Our generation,

1:03:13

like it's just been this way.

1:03:19

Mm-Hmm. , since we've been alive and you have

1:03:19

the highest court in the nation,

1:03:24

you try to take my focus off of all

1:03:24

these problems and put it on that.

1:03:28

Mm-Hmm. , like, I don't care what side of

1:03:28

this fence that you're on, I'm

1:03:32

disgusted that that's what you're

1:03:32

trying, you're embarrassing me.

1:03:36

Yeah.

1:03:37

It's a, by you

1:03:37

trying to like sit

1:03:37

there and shove things down my throat,

1:03:40

like, and make me think about things

1:03:40

that I don't need to think about.

1:03:44

So again. Take a deep breath, Jay.

1:03:46

You're gonna be okay. You're gonna be okay.

1:03:49

But this is the type of stuff that

1:03:49

agitates me, where it's like, they

1:03:53

are pulling the strings, we all, like,

1:03:53

the intelligent people in this nation

1:03:56

understand this, we can do nothing

1:03:56

about it, and it's just like, I, I've

1:04:01

chosen to shut that television off as

1:04:01

opposed to fight one way or the other.

1:04:04

Yeah, you're right. That's the only way to do

1:04:05

it, is shut, shut it down.

1:04:08

You know and I combat that every day

1:04:08

people are like, oh I saw on the news.

1:04:11

Oh, I saw on the news Oh, I saw on the news. I yeah, that's

1:04:16

We know this is the

1:04:16

craziest thing anybody that's been in

1:04:20

this business knows this NAR thing Has

1:04:20

everybody twisted and going crazy with

1:04:26

talking about it weeks, weeks, and

1:04:26

like this isn't gonna be a big deal.

1:04:29

It's not. It's not. Cuz like the market itself

1:04:30

is a free market system.

1:04:33

It's going to adjust to it and

1:04:33

no matter what like we'll play

1:04:36

with inside your stupid rules. But at the end of the day

1:04:38

it will get dealt with.

1:04:41

Like we already are starting to

1:04:41

plan and understand how we're

1:04:43

going to work through this. And it's like, okay,

1:04:45

congratulations, high five yourself.

1:04:47

You did nothing for consumer

1:04:47

protection and you think you did.

1:04:50

Congratulations. Nothing's really going to change.

1:04:52

The seller's still going to continue

1:04:52

to pay the entire commission

1:04:55

and it's all going to work out. The only thing that you stopped

1:04:56

is basically real estate

1:04:59

agents, double siding deals. And they'll still find a way to do it.

1:05:03

Listen,

1:05:05

It doesn't bother me,

1:05:05

because I don't like to double end deals.

1:05:07

I, because I like what Jay depicted,

1:05:07

which is equal representation.

1:05:12

Equal representation! You got that right! Yeah, which is great!

1:05:16

Right?

1:05:16

But leave everything

1:05:17

else

1:05:17

alone.

1:05:17

Leave it alone.

1:05:18

Leave it alone. It works. It's fine. Nobody's complaining about it.

1:05:21

You would think that, like,

1:05:21

you see some sort of documenta

1:05:24

Can you guys show me They

1:05:25

can't.

1:05:26

The complaints on

1:05:26

the way that the system was where

1:05:29

you had people losing their mind or

1:05:29

somebody that got taken advantage.

1:05:31

Can you show me where that is? Anywhere?

1:05:34

So, I did a little deep dive. And there's no, there's no

1:05:37

evidence. There's no evidence of anyone

1:05:37

taking advantage of the system.

1:05:40

Or, a system that was broken. So what I've been able to surmise Is

1:05:42

that there had to have been agents in

1:05:51

some capacity that represented a buyer

1:05:51

and took and did it too many times.

1:05:57

what I call the reverse double end. Mm,

1:06:00

that's

1:06:01

right. Yeah, yeah, yeah. Please go on. It is not non-sexual seller.

1:06:04

His

1:06:04

money and charge

1:06:04

the borrower charge double dip.

1:06:06

Yeah. He double dipped. Right. Took money from the buyer and the seller.

1:06:11

I've seen that, and then they

1:06:11

must have done it too many times.

1:06:15

And then somebody was like, wait, wait,

1:06:15

wait, no, no, no, because that's the

1:06:19

only thing that makes sense because the

1:06:19

only piece of that I've seen come out

1:06:23

of this litigation is that a buyer's

1:06:23

agent has to state the max commission

1:06:30

they're going to charge in totality.

1:06:32

And they can their commission

1:06:32

earned at the table cannot exceed

1:06:36

that dollar that percentage. That's fine.

1:06:39

It's fine.

1:06:39

So that's the only thing that made any sense. I was like wait, cuz the

1:06:41

whole thing is shit, right?

1:06:45

It's it's complete bollocks.

1:06:47

Like it's It's all trash.

1:06:50

I don't know who wrote this thing

1:06:50

or how they came up with it But the

1:06:53

only thing that made sense I was

1:06:53

like, okay, that's not a bad thing.

1:06:56

So like we're capped cool

1:06:56

next and nothing else

1:06:59

makes sense And at the

1:06:59

end of the day, it's like, you find

1:07:03

these little problems, which you can

1:07:03

fix, easily fix, like already came

1:07:08

up like, I mean, this isn't a rocket

1:07:08

scientist convention right here.

1:07:13

Like we're pretty smart individuals,

1:07:13

but like literally can solve the

1:07:17

problem in a one hour podcast.

1:07:21

Just by freely thinking about logically

1:07:21

how like this can be done, but yet

1:07:26

they somehow Continue to create

1:07:26

thing and I am I guarantee I mean I

1:07:33

can't guarantee it But I can almost

1:07:33

bet that whoever Started this whole

1:07:41

Escapade has no experience in this

1:07:45

I agree and it's always

1:07:45

the same thing I agree because they

1:07:48

have no experience inclination as the

1:07:48

inner workings of how the system works

1:07:52

or how a free market system

1:07:52

works because honestly you're going to

1:07:55

get to a point with when you're trying

1:07:55

to limit and structure Commission caps

1:08:05

or any of these things you're inevitably

1:08:05

going to violate the constitution

1:08:09

You're eventually going to get to that

1:08:09

point and it's going to work its way

1:08:13

up the courts and it's going to get

1:08:13

thrown out You cannot tell A person in

1:08:17

a free market system how much they are

1:08:17

limited to making you're you're going

1:08:21

that's what they're trying to run into a

1:08:21

problem with that you congratulations by

1:08:25

pulling that off in the banking world. You are very clever you got

1:08:26

the people like me who are

1:08:30

loan originators to get capped.

1:08:33

So that way you can consumer

1:08:33

protect what you did, leaving it.

1:08:36

So that way the banks on the

1:08:36

secondary market can still continue

1:08:40

to make as much as they want. So all you did was make the rich richer.

1:08:43

You basically took the middle class

1:08:43

worker that's actually originating

1:08:46

the loans and you put me in my place. Congratulations on that.

1:08:50

So good job on that. Dodd, Frank, you guys did amazing.

1:08:52

And now you're trying to do it to

1:08:52

independent contractors who are

1:08:55

working under real estate umbrellas. You can't do that Einstein.

1:08:59

So why don't you get to the point where

1:08:59

the highest Court in the land sits

1:09:03

there and you get this in front of them

1:09:03

and they tell you where to stick it.

1:09:06

You'll remember this conversation on why

1:09:06

you can't do that in a free market system.

1:09:11

This isn't rocket science. We're not rocket scientists.

1:09:15

This is logic.

1:09:17

It is boom. I just I just had an a light bulb go off.

1:09:21

And I've been talking people off

1:09:21

the fence about this thing for

1:09:24

the last better part of a week. I'm like, Why are you worried?

1:09:26

Just calm down. It's a curve. Relax.

1:09:29

It's not that serious. Because business has been conducted

1:09:30

this way in excess of 100 years.

1:09:33

And there's never been a problem until right now. So relax.

1:09:35

It's not that serious. What happens is people get scared.

1:09:40

They get frightened. They're like, Oh, it's the

1:09:41

end of the buyers agents, the end of the buyers agent.

1:09:43

It's not relax. So it's gonna cause a

1:09:47

lot of agents to leave. Right, so this is just what I

1:09:50

now think is indirect impact.

1:09:55

The more agents that

1:09:55

leave, there's less agents.

1:09:58

What's gonna happen? Everyone's gonna raise their price, right?

1:10:03

Because free market, I could

1:10:03

charge whatever I want.

1:10:05

It's what up to you whether

1:10:05

or not you want to pay me.

1:10:10

So if I raise my price, and you agree

1:10:10

because there's not an other suitable

1:10:15

representation, they just inadvertently

1:10:15

made an agent like me more money.

1:10:20

Oh, a hundred percent. Just think of the logic. You sit there and you're a listing agent.

1:10:23

You're like, you go to your your, you go

1:10:23

to your client, you're like, Hey, listen,

1:10:27

I am going to take a 6% commission.

1:10:30

Okay, you're gonna pay me 4%. I'm gonna give 2% out to the

1:10:31

buyer broker in this case.

1:10:36

But now. You guys are sitting there creating a rule

1:10:37

telling the buyers agent that they should

1:10:42

get the money from the From the buyer.

1:10:46

So now the buyer's agent signs a

1:10:46

buyer broker, gets that 2%, but that

1:10:50

listing agent isn't going to be like,

1:10:50

well, I was going to give that 2

1:10:53

percent to the buyer, uh, agent, but

1:10:53

now I'm going to just disconnect.

1:10:58

No, they're going to,

1:10:58

they've agreed to that 6%.

1:11:00

They're going to keep the 6%. You just literally made that listing agent

1:11:02

more money and charge the person who's

1:11:06

struggling to get the money together to

1:11:06

do a transaction because of the agent.

1:11:11

egregious fees that the counties and the

1:11:11

municipalities and the title companies,

1:11:18

all of these crazy things in New York,

1:11:18

that's being charged by the, to these

1:11:22

bar 25, 30, 000 in closing costs.

1:11:26

Now you want them on a 500, 000 has to

1:11:26

pay 10, 000 more on 2 percent commission.

1:11:31

And that listing agent who still

1:11:31

agreed to a 6 percent commission.

1:11:35

All you did was make them more money. Do you think you did a

1:11:37

good job here, Congress?

1:11:39

Do you guys think you're

1:11:39

doing a smart idea?

1:11:42

Can you just talk to somebody

1:11:42

that understands anything

1:11:45

before you make decisions? No, they don't realize what they're doing.

1:11:48

Creating fear for no reason? No,

1:11:50

it, it, because

1:11:50

let's just say the buyer pays, right?

1:11:53

And they finance it. They incorporate.

1:11:55

They now have to pay a portion of

1:11:55

that plus interest, PMI for 30 years.

1:12:03

You know what I'm saying? Like, it makes zero sense.

1:12:05

What consumer's getting

1:12:05

protected in there?

1:12:07

There is none. Where is there consumer protection?

1:12:10

Isn't that what this is about? It's not. They, they make a good argument

1:12:12

that it is, but if you're really

1:12:15

listening, it's not making any sense. It's not protecting the consumer.

1:12:19

At all. That's how

1:12:20

you debate.

1:12:21

At all. But, you know, hopefully, because even if

1:12:22

on the, if I had to take the buyer, like

1:12:27

the other end of the blade, and be the

1:12:27

buyer's agent, I'm charging more money.

1:12:32

Because now I gotta go. Defend twice why I'm worth what I'm worth.

1:12:38

I'm gonna do all this stuff for you. I'm gonna negotiate for you I'm gonna

1:12:40

find you I'm gonna source it I'm

1:12:42

gonna do whatever and then I gotta

1:12:42

go battle to get paid because now I

1:12:45

had the way they structured is I have

1:12:45

to build it in to the contract price

1:12:51

Just just give me the

1:12:51

commission statement and I'll be fine.

1:12:54

Yeah

1:12:55

Right. That's all I care about. It's literally I mean, yeah, we've

1:12:57

all been doing this for too long.

1:13:02

That's why I'm not bothered by it. I'm bothered by the way they're

1:13:04

telling me I need to do it.

1:13:09

Too much, too much government hand.

1:13:11

Yeah, but I'm an independent contractor. What gives you the right to tell

1:13:13

me how I need to run my business?

1:13:16

I'm not violating anyone or any laws.

1:13:18

Leave me alone.

1:13:20

They don't get it.

1:13:21

That's all right. All right.

1:13:24

Before you wanna do

1:13:24

it, , . You won't do it.

1:13:30

Me do it. You're, this is you.

1:13:32

You're running this one buddy. You said?

1:13:33

No, I'm not touching

1:13:33

that one with a, uh, . . Any

1:13:37

closing statements Mr. Marcus?

1:13:39

I think I said it all. Um, thanks for entertaining

1:13:41

my questions, gentlemen.

1:13:44

Um, I'm glad you had some, a

1:13:44

lot, a lot of those questions

1:13:47

were for me personally, because. You guys are like the boots

1:13:49

on the ground, essentially.

1:13:53

And I'm up in my ivory tower. Literally.

1:13:57

Yeah, right. Well, it's actually like grey metal with

1:13:58

some windows and a parking lot outside.

1:14:02

But, um, you know, I feel that Myself

1:14:02

and, and the audience listening, uh,

1:14:08

have learned a lot and, uh, have seen Mr.

1:14:11

Marcus turn red a couple times. That's high blood pressure for sure.

1:14:15

No, but that's the kind of guy you want working for you. No, he, he was, uh, tanning

1:14:16

and yes, uh, I, I agree.

1:14:19

Um, but thank you gentlemen and, uh, I

1:14:19

look forward to hosting myself in the next

1:14:26

state of the market with Bisendra and Mr.

1:14:29

Marcus.

1:14:30

Awesome. You did a great job. Thank you. Thank you. I'm, I'm actually impressed.

1:14:34

That's all for today. Castle dwellers. Remember knowledge is power, especially

1:14:35

when it comes to real estate for more

1:14:38

valuable insights and expert advice.

1:14:40

All of our contact information and

1:14:40

website is in the show description below.

1:14:46

And remember subscribe to

1:14:46

wherever you get your podcasts.

1:14:50

Thanks gents. This was a lot of fun. I really enjoyed it

1:14:52

because I didn't have to do

1:14:54

Nothing,

1:14:55

you did great.

1:14:57

I did terrible.