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Lisa Wiles with Fairway LTW group.

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Take 10, it's Corey Freels with the same.

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And we're bringing it back.

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Here we go.

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Here we go.

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As always, let's go ahead and talk market first.

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Let's do it.

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I'm gonna have to try and be expeditious,

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which is not one of my strong suits.

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So Monday, we had the inauguration

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and we had a slew of executive orders come out,

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which now this week, the housing industry

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has been trying to digest.

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What do these mean?

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So quickly, the three that I think most impact housing.

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Cause honestly, who's really listening to this stuff?

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Like you have to understand how does it apply to me?

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That's right.

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That's what we're gonna do real quick right here.

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That's right.

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Is how does this apply to your business?

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That's right.

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So the three things that are,

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the executive orders that impact housing,

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one is basically an affordability act.

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So they wanna make things more affordable,

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including housing.

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And they've actually have started to focus

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on the supply side, which is encouraging.

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Because I don't know that we've had any interest in DC

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in the supply side in a long time,

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and that is a bipartisan effort.

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So that's not gonna be just one administration.

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I feel good about that.

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And by supply side, you mean,

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let's build a lot more houses.

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So we have not as much pent up demand.

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That's right.

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We should bring down the prices of the home

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and make them affordable.

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More housing, even talked about zoning regulations locally,

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which we all, if you listen to Hanson's Sale over the year,

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so he talks about that a lot.

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So that's one area, and that was a positive for housing.

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We all know that the Trump administration,

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One quick thing.

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I love it when the government says,

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we're just gonna build a lot of houses.

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So are they gonna do a government like subsidy program?

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How are they gonna motivate people to build more houses?

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How did they even solve that?

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I think you'll see tax incentives for builders.

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All right, that's cool.

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I think you'll see tax incentives for builders.

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One thing I would love to see is,

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and this was another realtor floated this idea

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a few years ago,

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back when it was really hard for first time home buyers

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to get a deal,

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if you're a flipper,

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give you a reduced or wave capital gains

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if you sell to a first time home buyer.

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That's a great idea.

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I think it's a great idea.

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Yep.

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Now we have a bunch of little builders out there.

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That's right.

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That's like the concept of Uber, right?

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That's exactly right.

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I love that.

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So the second thing is,

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we all know that the Trump administration ran on

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and is really passionate about immigration reform.

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A lot of our labor supply and construction are immigrants.

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And unfortunately,

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a good portion of those may be undocumented.

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And so that could present a challenge

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if we have some sort of large-scale deportation.

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I think the odds of that,

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or I don't want to debate the odds of that,

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you hear different opinions about this.

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Logan Motashami with a housing wire says,

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probably doesn't have a ton of effect.

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Mike with Altos Research says,

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it could have some effects.

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So we'll see if it even happens, right?

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So the third thing, and I'll summarize.

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Sorry, back to the second thing.

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Again, how this would apply is,

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if there's a total shakedown of all undocumented people

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in the United States and they get sent away,

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how are the builders gonna backfill?

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And are we gonna have tons of unfinished homes

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sitting out there that maybe push even a builder

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into foreclosure?

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I mean, what are we talking about?

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If supply is there, I'm sorry,

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if demand is there, builders will find a way.

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Somebody will find a way.

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They will find a way, right?

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But demand has to be there.

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So interest rates are by far the most important thing

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for demand.

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And so anyway, I have ideas about that,

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but that's probably another question.

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Number three, sorry.

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The third executive order that affects housing

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is around, I'm blanking, I had it,

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I was ready to roll into it.

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Oh, I'm sorry, I missed you out.

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So we talked about immigration.

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We talked about-

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Supply.

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Supply.

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And then we talked about tariffs, tariffs.

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Okay, so we've heard a lot of talk about tariffs.

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And okay, so this is where I put the part in.

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How many of you, as a parent, have threatened something

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you actually didn't intend to do to your children

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to change their behavior?

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Yes.

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Or at least want to do.

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You're like, I would.

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I really don't want to.

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We will leave our friend's house right now

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if you don't shape up.

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And it's my friends too.

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I don't want to leave.

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I don't want to leave, right?

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Why are you being a jerk?

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So I think that you've seen this already demonstrated

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in Canada where we talked about a 25% tariff to Canada

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and all of a sudden Justin Trudeau resides.

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And I'm not sure that that's correlated,

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but that was very quickly thereafter.

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I think that most of the tariff talk is actually a threat

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to put together a more fair trade deal.

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However, if it's not, and it could not be,

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if you have a 25% tariff on China,

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I mean, half the stuff that goes into our houses

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come from China, right?

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You talk about appliances.

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Those quick cookie cutter type houses,

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the cheaper, the better deal.

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That's right.

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Because they get supplies at that low, low price.

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That's right.

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And so that's going to push prices off.

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That would be a negative for housing.

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So we'll see how it all shakes out again.

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There's what you say and what you're actually willing to do.

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And a lot of times your threats are,

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speak softly and carry a big stick kind of thing.

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So yeah, so we'll see how it all shakes out.

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Interest rates are by far the most important thing though.

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And that one thing that the Trump administration

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has talked about is taking Fannie Mae and Freddie Mac

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out of conservatorship.

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So the government right now,

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Fannie Mae and Freddie Mac purchase almost every loan

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in the country right now,

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most loans in the country right now,

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and they are under government conservatorship.

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There's opinions that take them out with raise rates.

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There's opinions that take them out with lower rates,

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but Trump being a real estate guy

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and a proponent for lower interest rates.

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That's good, right?

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Yeah, I think that could be a positive.

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So we'll see how it all shakes out,

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but welcome some questions.

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I spoke about this for like 25 minutes

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and didn't stop yesterday.

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So I had to make that into five and a half.

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I think actually you hit on it really well.

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Yeah, I think that's good.

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Okay.

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And I think also just since we're already talking rates,

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just to mention, they've kind of stabilized for a little bit.

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And when is the next big report coming out in February?

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The, yeah.

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Into February, I think is when we're gonna see the next,

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maybe middle of February is when we'll see

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the next big improvement.

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Okay.

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And I'm, well, chance for improvement.

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And I'm hopeful.

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I think it'll happen.

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Otherwise it's been kind of like,

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same thing, same day, same thing.

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That's right.

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So now like what take 10 is all about is how do we,

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how do we get you one more deal?

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One more deal.

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One more deal.

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And I'll tell you one that I kind of love this little trick.

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It was kind of cool.

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Had a person reach out to us as an investor

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and he said, I wanna buy this house.

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And you know, we always ask the question

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behind the question as an investment.

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And I'm like, okay, well, tell me a little bit

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about what you're looking to do and how that plays out.

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And he's like, well, ultimately my mom is gonna move

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into it so we have childcare closer to us, et cetera.

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And then once, you know, she rolls out,

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then we'll have an investment property that we can rent out.

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That's closer to us, which is great, right?

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And I said, okay, right.

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Your mom's gonna move in.

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He's like, yeah.

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And I was like, well, why aren't we putting her on the loan?

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She doesn't, well, she doesn't have any income.

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Well, I don't care.

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I don't care if she has income.

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So now instead of an investment loan

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with a half a percent higher interest rate,

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we have an owner occupied loan.

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Mom is the owner occupant.

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We're not looking at her income at all,

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just that she has a credit score.

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And then the son and wife are the non-occupant co-barwars,

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giving the strength for the credit and all that.

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Also, they were like, we have 20% put down,

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but also we wanna renovate.

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And on an investment loan, yeah, you probably want

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20% down, owner occupied, what, three?

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What do you wanna do?

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Three, five?

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What do you want?

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How much money you need for renovations?

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Like keep that cash in your pocket

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and put a little bit less down.

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That's right.

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So there are people out there that think

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that they want investment properties,

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but if it's for a family member, that's primary Auc.

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And the barrier to entry may be

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where they think their down payment needs to be.

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And maybe it doesn't need to be that much.

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Yep.

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So there's crafty ways around things.

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That's right.

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You make that one more deal count.

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Yeah, bring it.

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And there's a couple of ways to do that.

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You can do that even without mom being on the deal,

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potentially if mom doesn't, if she has a disability

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or she's not able to pay, right?

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Oh, that's right.

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For a child who has a disability.

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Caretaker.

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Yep, so I've done a condo downtown before for a child.

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Dad was the primary borrower, only borrower.

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And it was for a child who had a disability

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and wasn't able to pay the mortgage on her own.

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So yeah, bring it to us.

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We'll see if we can figure it out.

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Yeah, there's ways.

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There's ways.

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The other thing, and I got this question yesterday.

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Oh, fun.

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They're like, do you think we'll see rates in the fives

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by the spring?

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And I don't.

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But let me know.

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And it was, I kind of felt bad I left

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and it was like, they were like,

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00:09:15,080 --> 00:09:16,360
well, that was kind of discouraging.

270
00:09:16,360 --> 00:09:18,760
And I'm like, listen, we took this position

271
00:09:18,760 --> 00:09:19,760
at the beginning of last year.

272
00:09:19,760 --> 00:09:21,360
Our branch took this position.

273
00:09:21,360 --> 00:09:22,640
Rates are never going down.

274
00:09:22,640 --> 00:09:24,720
That's the position we took at the beginning of last year.

275
00:09:24,720 --> 00:09:27,040
And we were up 37% on the year.

276
00:09:27,040 --> 00:09:28,600
And we don't have heartbreak either.

277
00:09:28,600 --> 00:09:29,440
We don't have heartbreak.

278
00:09:29,440 --> 00:09:30,680
And it's because we were like,

279
00:09:30,680 --> 00:09:32,120
okay, what if rates never come down?

280
00:09:32,120 --> 00:09:33,320
How would we do business?

281
00:09:33,320 --> 00:09:36,160
And the way that you do that is your clients

282
00:09:36,160 --> 00:09:39,640
can get the rates right now via a seller paid buy down.

283
00:09:39,640 --> 00:09:40,760
Temporary buy down.

284
00:09:40,760 --> 00:09:42,560
Temporary, permanent, whatever.

285
00:09:42,560 --> 00:09:44,920
We quoted a 321 buy down yesterday.

286
00:09:44,920 --> 00:09:48,640
And the starting rate for the first 12 payments was 3.99.

287
00:09:48,640 --> 00:09:49,480
There you go.

288
00:09:49,480 --> 00:09:50,320
Let's freaking go.

289
00:09:50,320 --> 00:09:53,040
I quoted a permanent 20 or fixed at 599

290
00:09:53,040 --> 00:09:55,280
paid by the seller on Monday.

291
00:09:55,280 --> 00:09:56,120
You want it?

292
00:09:56,120 --> 00:09:56,960
Go get it.

293
00:09:56,960 --> 00:09:57,800
We can do it.

294
00:09:57,800 --> 00:09:58,640
It's just all in how you negotiate the deal.

295
00:09:58,640 --> 00:09:59,480
Correct.

296
00:09:59,480 --> 00:10:00,320
All right.

297
00:10:00,320 --> 00:10:01,160
We do.

298
00:10:01,160 --> 00:10:03,000
After hours at theltwgroup.com,

299
00:10:03,000 --> 00:10:04,760
we are at 10 minutes and five seconds.

300
00:10:04,760 --> 00:10:05,960
Thank you for your time.

301
00:10:05,960 --> 00:10:06,920
We'll see you next week.

302
00:10:06,920 --> 00:10:33,160
Bye.