Lisa Wiles with Fairway LTW group.
Take 10, it's Corey Freels with the same.
And we're bringing it back.
Here we go.
As always, let's go ahead and talk market first.
Let's do it.
I'm gonna have to try and be expeditious,
which is not one of my strong suits.
So Monday, we had the inauguration
and we had a slew of executive orders come out,
which now this week, the housing industry
has been trying to digest.
What do these mean?
So quickly, the three that I think most impact housing.
Cause honestly, who's really listening to this stuff?
Like you have to understand how does it apply to me?
That's right.
That's what we're gonna do real quick right here.
That's right.
Is how does this apply to your business?
That's right.
So the three things that are,
the executive orders that impact housing,
one is basically an affordability act.
So they wanna make things more affordable,
including housing.
And they've actually have started to focus
on the supply side, which is encouraging.
Because I don't know that we've had any interest in DC
in the supply side in a long time,
and that is a bipartisan effort.
So that's not gonna be just one administration.
I feel good about that.
And by supply side, you mean,
let's build a lot more houses.
So we have not as much pent up demand.
That's right.
We should bring down the prices of the home
and make them affordable.
More housing, even talked about zoning regulations locally,
which we all, if you listen to Hanson's Sale over the year,
so he talks about that a lot.
So that's one area, and that was a positive for housing.
We all know that the Trump administration,
One quick thing.
I love it when the government says,
we're just gonna build a lot of houses.
So are they gonna do a government like subsidy program?
How are they gonna motivate people to build more houses?
How did they even solve that?
I think you'll see tax incentives for builders.
All right, that's cool.
I think you'll see tax incentives for builders.
One thing I would love to see is,
and this was another realtor floated this idea
a few years ago,
back when it was really hard for first time home buyers
to get a deal,
if you're a flipper,
give you a reduced or wave capital gains
if you sell to a first time home buyer.
That's a great idea.
I think it's a great idea.
Yep.
Now we have a bunch of little builders out there.
That's right.
That's like the concept of Uber, right?
That's exactly right.
I love that.
So the second thing is,
we all know that the Trump administration ran on
and is really passionate about immigration reform.
A lot of our labor supply and construction are immigrants.
And unfortunately,
a good portion of those may be undocumented.
And so that could present a challenge
if we have some sort of large-scale deportation.
I think the odds of that,
or I don't want to debate the odds of that,
you hear different opinions about this.
Logan Motashami with a housing wire says,
probably doesn't have a ton of effect.
Mike with Altos Research says,
it could have some effects.
So we'll see if it even happens, right?
So the third thing, and I'll summarize.
Sorry, back to the second thing.
Again, how this would apply is,
if there's a total shakedown of all undocumented people
in the United States and they get sent away,
how are the builders gonna backfill?
And are we gonna have tons of unfinished homes
sitting out there that maybe push even a builder
into foreclosure?
I mean, what are we talking about?
If supply is there, I'm sorry,
if demand is there, builders will find a way.
Somebody will find a way.
They will find a way, right?
But demand has to be there.
So interest rates are by far the most important thing
for demand.
And so anyway, I have ideas about that,
but that's probably another question.
Number three, sorry.
The third executive order that affects housing
is around, I'm blanking, I had it,
I was ready to roll into it.
Oh, I'm sorry, I missed you out.
So we talked about immigration.
We talked about-
Supply.
And then we talked about tariffs, tariffs.
Okay, so we've heard a lot of talk about tariffs.
And okay, so this is where I put the part in.
How many of you, as a parent, have threatened something
you actually didn't intend to do to your children
to change their behavior?
Yes.
Or at least want to do.
You're like, I would.
I really don't want to.
We will leave our friend's house right now
if you don't shape up.
And it's my friends too.
I don't want to leave.
I don't want to leave, right?
Why are you being a jerk?
So I think that you've seen this already demonstrated
in Canada where we talked about a 25% tariff to Canada
and all of a sudden Justin Trudeau resides.
And I'm not sure that that's correlated,
but that was very quickly thereafter.
I think that most of the tariff talk is actually a threat
to put together a more fair trade deal.
However, if it's not, and it could not be,
if you have a 25% tariff on China,
I mean, half the stuff that goes into our houses
come from China, right?
You talk about appliances.
Those quick cookie cutter type houses,
the cheaper, the better deal.
That's right.
Because they get supplies at that low, low price.
That's right.
And so that's going to push prices off.
That would be a negative for housing.
So we'll see how it all shakes out again.
There's what you say and what you're actually willing to do.
And a lot of times your threats are,
speak softly and carry a big stick kind of thing.
So yeah, so we'll see how it all shakes out.
Interest rates are by far the most important thing though.
And that one thing that the Trump administration
has talked about is taking Fannie Mae and Freddie Mac
out of conservatorship.
So the government right now,
Fannie Mae and Freddie Mac purchase almost every loan
in the country right now,
most loans in the country right now,
and they are under government conservatorship.
There's opinions that take them out with raise rates.
There's opinions that take them out with lower rates,
but Trump being a real estate guy
and a proponent for lower interest rates.
That's good, right?
Yeah, I think that could be a positive.
So we'll see how it all shakes out,
but welcome some questions.
I spoke about this for like 25 minutes
and didn't stop yesterday.
So I had to make that into five and a half.
I think actually you hit on it really well.
Yeah, I think that's good.
Okay.
And I think also just since we're already talking rates,
just to mention, they've kind of stabilized for a little bit.
And when is the next big report coming out in February?
The, yeah.
Into February, I think is when we're gonna see the next,
maybe middle of February is when we'll see
the next big improvement.
Okay.
And I'm, well, chance for improvement.
And I'm hopeful.
I think it'll happen.
Otherwise it's been kind of like,
same thing, same day, same thing.
That's right.
So now like what take 10 is all about is how do we,
how do we get you one more deal?
One more deal.
And I'll tell you one that I kind of love this little trick.
It was kind of cool.
Had a person reach out to us as an investor
and he said, I wanna buy this house.
And you know, we always ask the question
behind the question as an investment.
And I'm like, okay, well, tell me a little bit
about what you're looking to do and how that plays out.
And he's like, well, ultimately my mom is gonna move
into it so we have childcare closer to us, et cetera.
And then once, you know, she rolls out,
then we'll have an investment property that we can rent out.
That's closer to us, which is great, right?
And I said, okay, right.
Your mom's gonna move in.
He's like, yeah.
And I was like, well, why aren't we putting her on the loan?
She doesn't, well, she doesn't have any income.
Well, I don't care.
I don't care if she has income.
So now instead of an investment loan
with a half a percent higher interest rate,
we have an owner occupied loan.
Mom is the owner occupant.
We're not looking at her income at all,
just that she has a credit score.
And then the son and wife are the non-occupant co-barwars,
giving the strength for the credit and all that.
Also, they were like, we have 20% put down,
but also we wanna renovate.
And on an investment loan, yeah, you probably want
20% down, owner occupied, what, three?
What do you wanna do?
Three, five?
What do you want?
How much money you need for renovations?
Like keep that cash in your pocket
and put a little bit less down.
That's right.
So there are people out there that think
that they want investment properties,
but if it's for a family member, that's primary Auc.
And the barrier to entry may be
where they think their down payment needs to be.
And maybe it doesn't need to be that much.
Yep.
So there's crafty ways around things.
That's right.
You make that one more deal count.
Yeah, bring it.
And there's a couple of ways to do that.
You can do that even without mom being on the deal,
potentially if mom doesn't, if she has a disability
or she's not able to pay, right?
Oh, that's right.
For a child who has a disability.
Caretaker.
Yep, so I've done a condo downtown before for a child.
Dad was the primary borrower, only borrower.
And it was for a child who had a disability
and wasn't able to pay the mortgage on her own.
So yeah, bring it to us.
We'll see if we can figure it out.
Yeah, there's ways.
There's ways.
The other thing, and I got this question yesterday.
Oh, fun.
They're like, do you think we'll see rates in the fives
by the spring?
And I don't.
But let me know.
And it was, I kind of felt bad I left
and it was like, they were like,
well, that was kind of discouraging.
And I'm like, listen, we took this position
at the beginning of last year.
Our branch took this position.
Rates are never going down.
That's the position we took at the beginning of last year.
And we were up 37% on the year.
And we don't have heartbreak either.
We don't have heartbreak.
And it's because we were like,
okay, what if rates never come down?
How would we do business?
And the way that you do that is your clients
can get the rates right now via a seller paid buy down.
Temporary buy down.
Temporary, permanent, whatever.
We quoted a 321 buy down yesterday.
And the starting rate for the first 12 payments was 3.99.
There you go.
Let's freaking go.
I quoted a permanent 20 or fixed at 599
paid by the seller on Monday.
You want it?
Go get it.
We can do it.
It's just all in how you negotiate the deal.
Correct.
All right.
We do.
After hours at theltwgroup.com,
we are at 10 minutes and five seconds.
Thank you for your time.
We'll see you next week.
Bye.