How do you thrive in the ever-evolving landscape of real estate and mortgage? Discover the answers as Austin Pantuso of United Realty Group of Texas joins me, Mark Jones, in a compelling discussion that promises to reshape your perspective on building a successful brokerage. Austin doesn't just share his own transformative journey—from the wake-up calls of youth to his rise as an associate broker—he also unveils the strategic shifts propelling his company forward. This episode is a treasure trove for anyone with a stake in real estate, offering a candid look at the personal and professional growth that comes from embracing life’s curveballs and the significance of a client-centered business philosophy.
Have you ever pondered the delicate dance between authenticity and meeting clients' expectations? Together with Austin, we tackle how attire and relatability play crucial roles in today's professional environment. As I recount my transition to a TV show host, we spark a debate on the balance between dress codes and genuine self-representation, especially in the digital realm. Meanwhile, we draw the line between confidence and arrogance, emphasizing the power of humility and the Golden Rule in nurturing lasting client relationships. And as we dissect innovative brokerage models that empower agents' financial freedom, this conversation stands out as a must-hear for industry professionals seeking to elevate their craft.
Finally, we confront the double-edged sword that technology presents in real estate. As we navigate through the intricacies of online platforms like Zillow and Realtor.com, we delve into their impact on agents, the market, and the cruciality of financial literacy for consumers. Whether you're contemplating the advantages of buying new homes or seeking to comprehend the forces shaping the property market, this session is your gateway to the pivotal factors influencing real estate today. Austin and I invite you to join us for a robust exploration that promises to arm you with the insights necessary to make informed decisions in the world of property.
Key Factors Podcast is Powered by ReviewMyMortgage.com
Host: Mark Jones | Sr. Loan Officer | NMLS# 513437
If you would like to work with Mark on your next home purchase or as a partner visit iThink Mortgage.
How do you thrive in the ever-evolving landscape of real estate and mortgage? Discover the answers as Austin Pantuso of United Realty Group of Texas joins me, Mark Jones, in a compelling discussion that promises to reshape your perspective on building a successful brokerage. Austin doesn't just share his own transformative journey—from the wake-up calls of youth to his rise as an associate broker—he also unveils the strategic shifts propelling his company forward. This episode is a treasure trove for anyone with a stake in real estate, offering a candid look at the personal and professional growth that comes from embracing life’s curveballs and the significance of a client-centered business philosophy.
Have you ever pondered the delicate dance between authenticity and meeting clients' expectations? Together with Austin, we tackle how attire and relatability play crucial roles in today's professional environment. As I recount my transition to a TV show host, we spark a debate on the balance between dress codes and genuine self-representation, especially in the digital realm. Meanwhile, we draw the line between confidence and arrogance, emphasizing the power of humility and the Golden Rule in nurturing lasting client relationships. And as we dissect innovative brokerage models that empower agents' financial freedom, this conversation stands out as a must-hear for industry professionals seeking to elevate their craft.
Finally, we confront the double-edged sword that technology presents in real estate. As we navigate through the intricacies of online platforms like Zillow and Realtor.com, we delve into their impact on agents, the market, and the cruciality of financial literacy for consumers. Whether you're contemplating the advantages of buying new homes or seeking to comprehend the forces shaping the property market, this session is your gateway to the pivotal factors influencing real estate today. Austin and I invite you to join us for a robust exploration that promises to arm you with the insights necessary to make informed decisions in the world of property.
Key Factors Podcast is Powered by ReviewMyMortgage.com
Host: Mark Jones | Sr. Loan Officer | NMLS# 513437
If you would like to work with Mark on your next home purchase or as a partner visit iThink Mortgage.
Welcome to Key Factors Podcast, where knowledge meets ambition in the fast paced world of real estate and mortgage. I'm your host, mark Jones, bringing you the latest insight, trends and expert advice to navigate this dynamic property market. In each episode, we dive deep into the heart of the industry, dissecting market movement, exploring investment strategies and unlocking the secret to real estate success. Whether you're a seasoned professional, an aspiring investor or simply looking to stay ahead of the curve, this is the ultimate guide to making informed decisions in the world of property and real estate. So grab a seat and let's uncover the key factors that make all the difference. Welcome to Key Factors Podcast. Let the journey begin.
Speaker 1:Welcome back to another episode of Key Factors Podcast. I'm your host, mark Jones, and we are powered by ReviewMyMortgagecom, the largest index of mortgage programs in the nation. And today I've brought along a friend near and dear to my heart, one of the first agents that gave me a shot in this industry. This is his second time on a podcast, not necessarily the same name. Back when I had millennial market talk, he was one of my guests and did fantastic. So I invited him back so that we could catch up and, without further ado, I will give you, austin Pantuso. What's up, austin?
Speaker 2:Happy Valentine's Day.
Speaker 1:Let's go closer to that mic so we can hear you. Happy Valentine's Day. Happy Valentine's Day. Look at you all in red too.
Speaker 2:Yeah, I'm in red for Valentine's Day. You look cute. I'll tell you I love you too.
Speaker 1:Yeah, man, it's been too long.
Speaker 2:I'm in. Happy Valentine's Day to everyone else.
Speaker 1:Absolutely so. We've got Austin, who is the broker and just recently switched names branding the whole nine yards. Now, mind you, he was still previous co-owner of the previous US Realty Pros. But, Austin, if you could tell us or tell the listeners about yourself, number one, kind of how you got in the business, what you're doing today and where it's going.
Speaker 2:You know? Okay, so first of all I got to correct you. So I'm an associate broker. Pull that thing, I'm an associate broker Okay. Perfect, so, and my father is the principal broker, perfect, which you know. My father, oh yeah, so he is the principal broker. So I'm the president of the company, he's the vice president, and then we have another vice president named JD JD, a very smart guy, our director of business development. He handles pretty much everything.
Speaker 1:He's amazing.
Speaker 2:So we got a trio, and then his wife helps as well, so we got a really good team, and then on top of that, we have incredible agents with us. We're up to about 40. Yeah, here you turn me up, there we go.
Speaker 1:There, you go.
Speaker 2:So we're up to about 40. Austin brought his low voice today.
Speaker 1:Yeah, my voice is low. How you doing, how you doing, go, keep going, sorry.
Speaker 2:So we're up to about 40. We have newer agents and then we have seasoned agents, some agents that have been in the business for 15 years plus, that have been with us for a very long time. They're really good at what they do and we're very blessed to have all of them, every single one of them. So we're starting this new business called United Realty Group of Texas. Our sister company is out of Florida and they're a United Realty Group period, but with Florida.
Speaker 2:And then they have another location in North Carolina that they opened last year, so they are one of the biggest brokerages in Florida. I think they're currently number two right now so bigger than a lot of the big box brokerages.
Speaker 2:They have like 6,000 agents and somewhere along the lines of 25 locations, and they're mainly in Tri-County area but they go kind of North State East Coast. So they're big, they're a one-stop shop. They do it all. They have title, they have mortgage. None of the agents are forced to use any of that stuff. They're welcome to use anything they want, but they offer it. It's there, right. So, and we'll be doing the same thing here too. We are about three weeks out from opening up. Very cool, so it's been a process something that obviously it always is, though.
Speaker 1:Something that you've done a couple times and it's just, it's very gratifying. I will tell you that it's it is exhausting mentally and physically and it's just one of those things that when you get to the end of what is the end of that process, it's realistically the beginning of what is to come. So it's like you get to see all of the fruits of your labor now shining and ready to be displayed and unveiled to everybody else.
Speaker 2:But that's kind of when everything just begins Well and I remember when you moved to this one, this one, you got up quick. Yeah, we had to, man. Yeah, you got it up fast. You definitely had to, and it looks amazing.
Speaker 1:Shout out to ManMortgage for helping us with that process?
Speaker 2:Absolutely yeah.
Speaker 1:Their onboarding team is fantastic. So going through something like that moving to big branch production, previous customers, all of that stuff honestly I felt like it was plug and play, sure.
Speaker 2:And, like you know, I want to talk about me and we can.
Speaker 1:We'll get there. Oh, this is all about you, Blue.
Speaker 2:I really I want to a testament to you, man, because like when I remember you reached out to me, like I said last time, when I did this and you said, hey, give me a shot of mortgage, and I just you know I'm blunt I say I'll give you one shot, yeah, and then we're done Right. So and you did great and we were friends 13 years ago.
Speaker 1:Yeah, was that deal.
Speaker 2:Wow yeah, so a long time. And now look at you. Now I mean, you're rocking.
Speaker 1:And we haven't aged a bit. Yeah, no not you for sure, man. Okay, so now that you are opening the new location, what was that going through that process of that? I mean I finding the property, so can imagine that you guys are going to own the commercial property right, no, no. Okay, you're going to rent.
Speaker 2:Yeah, and that's the majority of businesses you rent? I mean, if you can't get obviously better, but you rent right and you know I've been doing this. I'm going on 18 years now. You know doing it for about pretty much time. It does go on 42. Yeah, so, and I can tell you. It's just like I'm not extremely well versed in commercial, of course.
Speaker 1:I'm sure Same here.
Speaker 2:In the past, but I'm not extremely well versed in commercial, it's mainly been residential, yeah, so I think that were some new steps. Like I mean, leases are pretty simple, right, but permitting and everything else that's involved with you know, getting things done so that you can do your build out. It's a process Like there's a lot that has to be done and a lot of it just depends on the inspector. What inspector comes out if they like you.
Speaker 1:Yeah, that's very true. In addition to the inspector for the county, the inspector I mean, there's so much that goes into that. But we'll get into commercial real estate a little bit later in this episode, because there's some things that I wanted to discuss that we just talked about JJ and Andy on the previous episode. But I want to give the listeners a little bit more perspective of you, your process in getting into real estate, the journey, and you don't necessarily have to sum it up, but I want people to know why the hell they should be listening to you as we move forward in this discussion. You know, and I will tell you, ladies and gentlemen, austin is not the best at tooting his own horn, so I'm giving him permission to toot away, okay.
Speaker 2:So, and just don't stink up my podcast. Yeah, that's not that I don't, I don't ever want to be arrogant, but even though I never, I tell our, our agencies.
Speaker 2:So if you would have known me from you know, 18 to 21 years old, I wasn't very productive or motivated to do anything. And then I had some negative things happen in my life that really kicked my butt into gear, including my dad kicking me out of the house, Right. So that really kicked my butt in the gear because I was just really just being a leech and just sitting there right, Doing nothing.
Speaker 1:So when I was waiting tape, but you also at that time didn't know any better. I mean, it's not like you went to college with all the other kids that that were seeing. Okay, this is a path that I can take. I mean, your dad was in real estate for many years, created a great life for you guys, and I know you got to soak in a lot of that, but it wasn't time for you to start paying your own bills, buying your own things, building your own wealth, you know?
Speaker 2:I mean so I did go to college, but I didn't complete college. Sure same here so like I didn't complete it. And that's like a big misconception today, like you have to have college to do. Well, right, and I think people are starting to figure that out, that you don't.
Speaker 2:You don't have to have college to do. Well, it's still a great thing to have, it's great to have a degree and it's great to go into a field. So I don't want to knock it like go to college, right, right, obviously, but you don't have to have it.
Speaker 1:Right.
Speaker 2:So anyways, like again, I was not doing the right things, he said, either, you're going to do the right things.
Speaker 2:and I was waiting tables on him I wasn't doing, you know, but I just wasn't serious. He said either you're going to do the right things or I'm going to kick you out. And I was like, no, you're not. And then he was like yeah, I am so. And he came out Watch this. So that's, that's what happened. So then I had some other bad things happen, but if those bad things didn't happen, then I would have just still been exactly where I was at before, and that is probably one of the best things that I can tell people. Bad things happen in your life, but that's what shapes and molds you into the person that you are.
Speaker 1:Right.
Speaker 2:So, and it's either going to go one of two ways, right. If that happens, either you're going to curl up in a ball and cry about it and go south, or you're going to say I'm going to come back 10 times stronger than I did when I got me down and you come back Right.
Speaker 1:So you're, you're in a tenacity and that definitely, in my opinion, is a choice, and I love that you articulated that for our listeners. It is a choice Every time. It is a choice. Feelings, emotions, all of the different forces that are at hand it still boils down to that choice of whether you want to go left or right. We we listened to.
Speaker 1:We gave a presentation yesterday about overcoming objections in today's market. I don't have money for down payment, I'm waiting for rates to come down, now's not a good time, etc. Etc. But at the end of the presentation the presenter played a video by Jaco. Have you ever heard Jaco?
Speaker 1:Okay, so he's got a podcast, but definitely known for his tenacity in military service and things of that nature. He's just the screen, but his message in this video was bad things happen. His response good, yeah to everything. And why? Because it means that you're still here. It means that you still have opportunity to go out and change it. I mean he says things like you didn't get that promotion at work Good, you can now go and work harder for. You didn't get the, the house that you wanted to put an offer on good. Now you understand what it's like to jump when it when it's time to jump, I mean to every Kind of rebuttal. It's good you get to learn from that, because other people maybe hadn't taken it that far or gone down that road and experience that failure that you're talking about. That allows them to Muster up whatever it takes to go one way or another.
Speaker 2:Sure, yeah, and the way I look at it too, and I even tell, like my clients and when I'm working, and even friends and family. So when stuff like that happens, I'm a firm believer that, whether you call it God, a higher power, whatever it may be, someone is looking out for you and it may not have been the best situation for you or the best path, so you're being directed to a different path. Right, yeah, like you said, you didn't get that house. Maybe it's gonna have foundation issues, maybe you're gonna have major plumbing leaks.
Speaker 1:Yeah, who knows huge insurance?
Speaker 2:claims. I mean, who knows right? So you just got to be a firm believer that what happens is hopefully you know for your best interest.
Speaker 1:Absolutely so that's.
Speaker 2:Even if it might seem bad at the time, later down the line, a lot of times it gets you to where you need to be. Yeah, so yeah so that's. That's the way I put it but keep going on your journey.
Speaker 2:So go ahead. So then you know, I I didn't want to do real estate right, so I wanted to do like psychology or be like a pilot or something right, so something, something cool. I didn't, yeah, I didn't want to do what my dad was doing and, yes, my dad did real estate for a long time, but he didn't do extremely well with a star. He did well when he was in the new build, okay, yeah, so, and he worked for DL, working for like 10 years, so he did really well because I was doing the boom time, right, right, and real estate is really Sick, sickle cool.
Speaker 2:It's like very. It's about timing too, so sometimes you just get lucky, yeah right, and you know when you end up buying properties. Sometimes you're buying at a low time and then you saw what happened, like the last three years, especially during COVID time, like you had a massive spike and people did incredible. I'll tell the story real, real quick, please. I helped someone gain their their most, most equity gain that I've ever helped anyone gain right, and it just was just a coincidence. I mean, I didn't do it right, we just sold their house at the right time.
Speaker 2:So this was in Round Rock, because I do all of Texas do all of Texas so this was in Round Rock and they bought a, a nice like an upper-end builder home for like 386, like that in 2021, okay. And then we ended up selling one year later, february of 2022 no upgrades at all for 615. Wow, 386 to 615.
Speaker 1:Wow, one year. Talk about the tax bill on that. If you don't do a 1035 exchange, they didn't do our 1031 turn 31 exchange.
Speaker 2:Yeah, 1035 is.
Speaker 1:Investments yeah so they?
Speaker 2:they didn't do of course. They were just transferring to a new sure home is what they're doing. So they paid the the capital gains, but no big deal, right, because I mean they were making so much cash now.
Speaker 1:Question it do you believe, had they waited one more year, because after you hold it for two years as your primary residence, you then get to avoid a lot of amount it would have lost that's, that's what, exactly what I was asking. They would have lost one. Okay, yeah, so that market in that area went down a bit.
Speaker 2:I sold their neighbors house just like four months ago, okay, okay, and it sold for almost 100 K less. Wow, wow, yeah. So that just lets you know, like a year and a half difference, and is that because the community had not been built out just yet? No, just to the market. Really, this is round. Rock.
Speaker 2:This is awesome, right, you had some of the highest influxes in the Absolutely yeah, and then some of the highest downturn, and sure right, so I mean it was insane over there. So the home still sold fast. Sure right, the market still strong, but we're talking for much, much less. Yeah, so like at the peak, and I think that that's the.
Speaker 1:The important piece here is a lot of folks believe our market is going to crash simply because there was a fluctuation like that, when the person Timing caught it at the right time. They bought it at the right time and sold it at the right time, and that right time didn't dictate to whether Property values were going to spike or or plummet. It just ended the cycle of those low interest rates, the cash offers that were flooding into Austin, driving prices up by hundreds of thousands of dollars above the appraised value. What happened? You know, yeah, so I can't love that you shared that story, but I want people to know that you're not saying it because there's a crash coming. You're showing them how they were able to put their hat in the ring at the right time and pull it out At the right time as well.
Speaker 2:So you know I mean In general. It's a cliche saying no one has a crystal ball. No one knows when the peak is and no one knows that the markets like truly gonna credit. Of course they'll tell signs like Michael Blurry or something, yeah, but in general right, so it's a smart son of a guy people don't.
Speaker 2:People don't generally know, right so, and you can just do your best to make good, educated Decisions with the information that you have, and that's all you can really do and consult people who are experts in the field you know to to guide you and to lead you and again, they still don't know, no one truly knows that reminds me of something and I'm gonna mention, I'm writing it down now.
Speaker 1:Okay, so let's, let's keep going into that Well.
Speaker 2:So I know you want me to continue going on my story, but you know. So I got into real estate. I did I still wasn't very serious right and I had more bad stuff. And then I got really serious right and I said I'm gonna show these people that don't think I'm serious, that I'm serious right, and Eventually was to kind of like out of spite, like let me show them that I can do what they say I can't right. And then a year after it wasn't I didn't think about them.
Speaker 2:So it was just, it just became almost like a habit. Yeah right. So, and I'm a firm believer and I tell everyone this, and I tell even our agencies it's not about you and it's not about the commission, it's the, it's about the clients always.
Speaker 1:It's always about the clients. I think you and I have always seen eye to eye to that on why we are doing what we're doing. Did we initially get in because of the money? Absolutely, we had to. Yeah, they make some money to do things. But quickly we realized, holy cow, the more people I help, the more money I make. So let's stop worrying about the money and Focus on the people so, okay, I have to tell you.
Speaker 2:So well, let me I say two things in my clients.
Speaker 2:I say, if you're working with someone that makes it about them and working with the wrong person, whether it's the, the Mortgage officer, and your agent, the title company, I don't care who it is it's not about them the sellers of the buyers, depending on who you represent, it's about you. This is your life, your money, your family, your investment, your future. That's what I tell them, right. So, and what a lot of real estate agents don't understand is that you're helping someone make the biggest financial Decision in, or or purchase that they've ever made in their entire life. Most people right, even later down the line, because most people move up, they buy more expensive, unless you're, you know, downsizing, right. So, and your older or your empty nesters? Right, you're making the biggest financial decision that you made in your life.
Speaker 2:And a lot of people don't realize how serious it is. They people get into real estate thinking I'm just gonna make a quick buck, right, and I'm just gonna, you know, go, do, go, do my thing and not really consider the client. And that's not. You will never be Successful, truly successful. That way it'll work for a while. But people aren't dumb. Yeah, they know, they know, and especially if you're considering the Commission or thinking about the Commission. They know absolutely right.
Speaker 2:So I was blessed enough at the start where I was living with my grandma, so I didn't have to you know, really right really think about money and my bills were really low. So, and I tell our agents is now too is that it's a lot harder when you know you have to worry about rent or feeding your kids or whatever next month, to not think about the Commission. Sure, I it's, it's not, but again, they know so the more that you cannot think about that, and I mean that's why we're in our nor right, we'll get to that, yeah, situation, but not think about that and really just focus on the clients, the better off you'll be and the better you'll do, because it is all about them. So, and that's what I did, so those are my, that's my mantra, that's what.
Speaker 2:I live by and it just it comes. Like you said, you don't have to do anything, it comes To you just automatically. If you just take care of people and you put good stuff out there, it comes back. Whether you want to call it karma or whatever you want to call, it comes back to you. So that's that's it. It's that simple, you know, and you work hard. Yes, your diligent and I think you prepare people. If you prepare them, then they'll never be disappointed. If you tell me what can happen, expectations are so crucial.
Speaker 1:Expectations and communication are the two things that in our profession. If you can do that Honestly every single time, I believe you'll go further than most in the industry. Because, for some odd reason, we as humans are scared to tell the truth when it's bad news. Hey, people respect others when they're telling them the news, regardless of whether it's good, bad or indifferent. They want to be filled in because, like you said, it's the largest purchase that they're going to make, period. You want them to be informed about these things, so I'm glad that you mentioned that as well. And and what?
Speaker 2:can happen right so. I tell people it's buying a home is like, or any piece of Real estate. It's like a running, a marathon right. So it's not done until they have your money and you know the other party has your keys. Right, you know your deed or whatever you want to call. Right, you have to wait until it's done, because there's a lot that can happen in between them. Oh yeah, and then you prepare them. It might not appraise, right? Yeah, they might go buy a car.
Speaker 1:They might, they might die if you don't give them those expectations. They might, and sometimes even if you do, they might. You want to, you want to move out.
Speaker 2:You want to go get a lease, you know, 20 days before your, your home is sold. Yeah, that's at your risk, but I'm telling you it might fall through and then you're paying your mortgage annually. Absolutely so you know, as long as you prepare people and you let them know, when that scenario does happen which is pretty inevitable, it will with someone right then they're like at least he told me about this, so yeah, and they're not gonna hate you.
Speaker 1:Well, that was a great Summary of who you are, but I'll toot for you. Austin, in his 18 years in the business, has quickly become one of the top realtors in San Antonio and surrounding, to the point that he's rocking on shows and whatnot. So I'm happy to share that information. So let's, jc, throw that reference on the screen real quick so we can talk about this, the American dream. Oh, tell me about that without telling me too much.
Speaker 2:So what this is? It's a lifestyle show. It's kind of what you see on. I don't wanna say network, but let's say, like you know, bigger networks where they do shows with million dollar lists or whatever right so and it doesn't necessarily have to be that it's a lifestyle show, for that's a country-wide show that displays lifestyles in certain areas, with a little bit of real estate mixed in.
Speaker 1:That's what it is.
Speaker 2:And this show. They interview a bunch of realtors and they select realtors or loan officers right Cause they have loan officers on there too and then sometimes just regular individuals that are professionals in certain fields and they throw them on this show and it airs on national television and then it's also on Roku Amazon Fire Stick on their app. It's a nice thing. It's a professional production type show, something you would see on TV, cause it is. It is absolutely yeah, so it's neat. So I just started doing that in December.
Speaker 2:I did my first episode in December and then you'll see it air in March, more than likely like at the beginning of March. So it'll be on national television and it'll air and then you can also watch it on the app. But it was fun, it was neat. I'm not good at it yet, so I'm getting better at being a host.
Speaker 1:I mean, we are also the toughest critics on ourselves. So I'm sure you did fantastic and the preview that you showed me. You look damn good in a suit. I didn't have really a suit.
Speaker 2:You feel uncomfortable, yeah.
Speaker 1:I did. It's like suit from here up from down. Here I got board shorts, that's exactly right, believe it.
Speaker 2:Well, and that's why I tell people I'll get a million dollars in a shorts and a t-shirt, absolutely Right. So, because I'm all about being real and there is no flash, because that isn't me, yeah, so I don't. And then hopefully you're going to listen to me and take my advice, and if you don't, it's OK. I want you to work with someone that you trust.
Speaker 1:Yeah, no, I agree with that. And, matter of fact, let's talk about that for just a brief moment the concept of attire in our industry, in my opinion, and since COVID has changed a little bit my take on it, I will tell you. I wear something like this every day. Why? Because I'm having Zoom calls with customers. We meet with very minimal customers in person these days. I wish it would come back, to be honest, but Zoom satisfies that appetite for now. But what I've noticed is that by me dressing this way, I'll even jump on the Zoom call with the hat flipped backwards. Say a little joke. I may wear many hats, most of them are backwards.
Speaker 2:And they start laughing.
Speaker 1:The concept is you're trying to relate to your customers best you possibly can and nine times out of 10, they look just like me right now and they're normal clothes. Why? Because most of them work from home these days. But even if they're not, they're not in the suit and tie like they used to be. What are your thoughts on that? So you used to dress a lot more. Always, you're exactly right A lot more.
Speaker 2:And I would say me, I never really did, I've never really been like that and do I want to say I'm being more real, it's just not me, right.
Speaker 1:That's why it feels uncomfortable.
Speaker 2:I can dress up. It's not like it feels uncomfortable to dress that way. I feel sharp. But I will say there's a time and place for everything. So you wouldn't want to go that way in certain circumstances, and especially on the way you would be surprised this way.
Speaker 2:Well, now it's a little different with COVID it is a little different, but now that I'm the president of a company I need to show up in better attire. It's also just respect too. But you'll notice it is changing. It is getting different. People do want to be able to relate to you and some people who dress up all the time are going to think this guy's putting in no effort.
Speaker 1:And that's what I want to kind of squash and he's just lazy.
Speaker 2:So some people who dress up all the time they might think that, and that's OK, but also it could go the other way too, where, like I said, people that don't dress up they're thinking that, hey, this guy thinks he's better than me.
Speaker 1:I'll take you a third, which is this person is trying too hard Because, essentially, you're about to meet with your customer. If you do have customers on a Zoom call or in person, they're going to sit across from you looking like I look right now and see you in a suit and, honestly, I don't know. I don't even want to God, I don't even want to answer that question, because back when I would wear a suit, I would have customers that would be like why are you so dressed up?
Speaker 2:Yeah, Some people look really good, though, in dress clothes, and we have especially like our younger agents. They're trying to project an image.
Speaker 1:I'm successful. They're trying to start their business.
Speaker 2:They're trying to brand, so I respect that I do. They look a lot better than I do. Let's put it that way.
Speaker 1:Yeah, most same here these days. I want to stay in the shadows and just meet with the customers and put the loans together.
Speaker 2:So people work with who they like and who they connect with those. It's like 50-50. So it just depends on. I wouldn't go to a million dollar listing in shorts and a t-shirt if they were a cold lead, If it's a warm referral and they already kind of have her.
Speaker 1:And sure, and it's funny that you say that because chances are that customer that called million dollar listing is probably going to show up in board shorts and a t-shirt. They very well might. But you are correct, I do agree with that Time and a place for everything, and fill out your customer. I mean, at the end of the day, be yourself. And that's the piece that I want to make sure people understand is be yourself. Don't put on this facade for this occasion and change for a different occasion. That's similar, but people are going to look back and go wait a minute, where's your suit? Aren't you the guy that wears?
Speaker 2:a suit. I mean you're right, you want to be real right.
Speaker 1:You want to be consistent.
Speaker 2:You want to be consistent, so I had the chance to participate in representing a buyer on the biggest purchase that I've ever dealt with and in Dallas. Less OK, ok, ok On acreage and, let's put it this way, it was upwards. It was over $15 million. Wow, on one house. Wow, probably one of the biggest homes that sold more.
Speaker 1:How much land was that?
Speaker 2:On three acres Wow.
Speaker 1:OK, yeah, wow, and a very ritzy part of Dallas OK.
Speaker 2:So the home is incredible, it's in magazines, it's amazing. But I'm thinking when I meet the buyer, who's an incredible guy, amazing and his family is incredible and so is his wife, but I'm thinking, do I need to be dressed up? And I really wasn't. I was like this Sure and I go in and the partner agent, which was from our sister company in Florida. They both show up, they're in shorts and a t-shirt, like to see the house for the second time. Just do the walkthrough and yeah, I mean, there's normal people Even buying something like that. You would think, oh, they're going to roll up and a Rolls Royce in a suit.
Speaker 1:No, yeah, I think relatability is at an all time high, especially because we've been so compartmentalized. People are missing that interaction and that interaction you want to have it with somebody that's like you, so to speak. So, anywho, moving on, that was just a random thought I had.
Speaker 2:I have to say also, the media and overall everything that goes on these days pushes you to try and be like that. Keep going Right, they do. They push you to try and be like that. You're own inspiring emperor. Yes, right, yes, and I hate to say it, but that is against that Same. I'm not for that at all and it comes across a lot of times as arrogant. And we live in a generation where it's all about show and a lot of the times, the people who show and flash the most are the people who are really not doing well. I agree.
Speaker 2:So, and that's the best way I can put it, and not in all circumstances, no, but from what perspective that you're giving.
Speaker 1:I have to agree 100% with the idea that we already know that things are getting faster the ease of access to information, tools, resources, things of that nature but from what social media has created in a alternative mindset, is this sense of entitlement and ease of access? On another scale, it's like I should have this job and I should make this amount of money and I'm only going to work this amount of hours and I'm going to work from home and an influencer who are you? And an influencer Right, and I'm going to blog about it every single day.
Speaker 2:That's what I'm going to ask you. And again, I'm not saying everyone who flashes doesn't isn't doing well, there's a lot of people who are Sure. And that's just their MO, that's just the way to do it. But I mean, I don't know, there's no substitute for hard work.
Speaker 1:I agree, I agree.
Speaker 2:That's at least what I've found.
Speaker 1:Well, what I can say is there and I haven't talked about this on the show at all which is the concept of being cocky versus confident and what that means to another person's view of you. There becomes a certain point and I can only speak for myself with this, I definitely want your feedback but there comes a certain point in time in somebody's career, life et cetera, that they've gained enough experience that they themselves, without even knowing it to the outside world, speak with a sense of confidence and many see it as cockiness when it's like we can't go backwards with our experience. We can't go backwards with the way that we talk and the way we approach different things. But how difficult is it to tote that line? You know it's a fine line. Does that make sense what I'm saying?
Speaker 2:Yeah, absolutely. It's a fine line and in my opinion, it comes down to knowing your worth right. Knowing your worth and setting boundaries and not being so cocky that you think I'm too good for this because I treat someone who's buying a hundred thousand dollar home just the same way that I would treat someone who's buying a million dollar home. And I've had people where I'm representing multiple clients and the million dollar buyer says like I should be getting better treatment, and then I have responded back to them is that the way you treat your clients?
Speaker 1:Ooh, that's so good. Is that the way you do that?
Speaker 2:Is that what you do to the people that you work with? That's right and I don't care. I'll drop you in a heartbeat. Everyone deserves the exact same treatment that I would want If it were me. I would want someone to treat me that way, so I'm for a believer. Treat people the way you want to be treated, and that is the difference between being cocky and confident is setting boundaries and knowing your worth and still being willing to help people, no matter what their situation is.
Speaker 1:Wouldn't that be amazing if we all adopted the one thing that our parents taught us growing up? I mean, that was like one of the first things. I don't know if it's because we're in Texas, but treat others the way you want to be treated. Could you imagine everything that would be solved by just doing?
Speaker 2:that I think in Texas you get that more.
Speaker 1:Yeah, for sure, for sure. No doubt you go up to New York and they pick you out of a crowd, knowing that you're from Texas, without you saying anything. They're like, well, you're too nice here.
Speaker 2:You get that Southern hospitality, but I don't think you can ever be too nice as long as you're not getting taken advantage of or sale.
Speaker 1:That's the best way I can put it. Good point. So we've got some topics up on the board. We've already talked about your star appearance on the network. I'm excited to see that. We've talked about the new brokerage. That's almost complete. You guys are already operating under the name, correct?
Speaker 2:We're operating under the name. It's going, let's put it that way it's going. Almost all of our agents have switched from US Rolte Pro, and then we're about to start. We haven't really focused a lot on recruiting, but we're about to start opening the doors for more agents to join. It's an incredible model because it's a flat fee brokerage that has such a bad taste for a lot of people. They associate flat fee with no help.
Speaker 2:With little value, correct Little value right Little value, no assistance, can't speak to my broker, I have no tools right, so it's just like go fend for yourself. It's an amazing model for an agent. I say it sounds too good to be true, but it actually is. Usually things that sound too good to be true are. But this really is, and you get everything that a big box brokerage would offer you workstations, closed offices, an actual office like branding studio, printers, kitchen, coffee machine, everything you'd want. Full broker support, full agent support, mentorship programs everything that you would get from a big box brokerage, but for a flat fee, an extremely low flat fee.
Speaker 1:So it's like going to Costco in regards to real estate, versus going the other route of EXP or Reel to where it's in my opinion. You are paying a small fee or what have you, but there's this idea of let me go out and recruit other agents instead of focusing on real estate.
Speaker 2:Sure, so let's talk about that I don't want to be really short and sweet about this because I don't want to fend any of this. So the brokerages are great models.
Speaker 1:Yeah.
Speaker 2:They have their own system. So you're not going to get life insurance, you're not going to get rev share, you're not going to get stock options, so things like that. So stock positions with our company. But the way that I look at it is that look at and this is by no means to offend anyone but look at their stock from opening to now, or peak to now, and you'll notice that if you would have just gotten that money and invested in something like Apple or Nvidia or something else, or in real estate like what you actually do for a living, you would have made a lot more money than feeding the machine of their stock and you have to keep in mind that people who started the company.
Speaker 2:they have a big share of that, smart cats yeah. And they're very smart and it's an incredible business model for them and for people who get in early Right, and that's what it really is. But in general there could have been better investments and hindsight is 20-20.
Speaker 1:Right.
Speaker 2:Some people don't know that and don't want to do that, and just getting the stock is good enough for them, and that's okay too, right? So, again, there are benefits to that. But if you can utilize the money in a way that you can be smart with it, there are ways to capitalize on it and make more money. So that's what we're about is you put more money in your pocket, use it the way that you can really capitalize and multiply it in I don't want to say a better fashion, but potentially a more beneficial fashion where you're going to gain more.
Speaker 1:Well, I like that premise of this because, instead of buying into this whole philosophy of we're going to create multiple streams of income with you recruiting or what have you, and we're going to shortchange the things that it really takes to do your job better, you're saying we're all about real estate, we're going to help you, we're going to give you the tools, we're going to put more money back in your pocket. No, there's not opportunities to become a multi-level marketing company, but that's okay. You didn't join a multi-level marketing company, you joined a real estate firm.
Speaker 2:Sure, and that's more about we want pros.
Speaker 1:I like that.
Speaker 2:We want people who really know real estate.
Speaker 2:That's what we want and because, like we talked about, you're helping someone with the biggest financial investment for most people that they've made in their life. So if you don't know what you're doing, you might know how to go recruit other agents. That's great, but if you can't help your client again you're going to be a disservice to them and that's the best way that I can put that. And in general, you'll notice, if you know your stuff, because you got into real estate to do real estate, absolutely Not to go recruit other people might as well.
Speaker 1:Most people did.
Speaker 2:And again, there's nothing wrong with that, and there are all kinds of ways to make money in this business, absolutely. So you can do apartment locating, you can go do commercial rentals, you can do all kinds of stuff. So I don't want to knock it, because there are other ways to make money in this business. But if you got in real estate to do real estate and to really genuinely help people with real estate, that's what we're here for To really teach you everything that you need to know and so you really know it. So we get really deep into real estate, go over everything from contract to close to loans to everything you would possibly need to know, so you can be at the top of your game.
Speaker 1:In addition to direct support from Austin Pantuso himself.
Speaker 2:And my dad and other seasoned agents. But again, it's so you can go rock and roll and be the best that you can be and be better. There's a saying in the business 20% of the agents do 80% of the business. It's really like 90, 10. And this is going to sound harsh, but most agents are not the best. They have a lot of room to grow and a lot of them are new and they will be great. And there's so many agents that are better than me and I'm still learning to, but you only have to be just a little bit better than Extraordinary.
Speaker 1:It's a little extra.
Speaker 2:Yeah, it's that little extra. That's exactly right. It's true, to be the top agents in San Antonio or agent in San Antonio, you just have to be a little bit better than that 80%. So it's not that hard, it's just having the right tools and resources and guidance to get there.
Speaker 1:Well put, very well put. Okay, we've got about 15 minutes to cram some of this stuff in here, so we're going to spit fire some of these topics that we have here, starting with your thoughts on the NAR ruling. Before you came in here, or before we got mic'd up, you mentioned that they're going to, they're going to, they're going to appeal it, 100% it's going to take like two to three years to appeal.
Speaker 1:For sure, and that's a process just like everything else. Um, but what are your thoughts on the actual number one, the ruling and the validity of the actual?
Speaker 2:suit. So it's funny, you get this blasted out all the time. Absolutely, you have to receive emails like you hear about this all the time, but most agents still have no clue what it means or even what it is Right. So, and most people in real estate don't even having even heard of this, like they just brush it over. That's right. Most things right, like politics or anything else, because it's not important to them at that time. Right, and they don't really face the effects of it until later. Right I?
Speaker 1:agree.
Speaker 2:So what they're trying to say is it's going to be like Australia, where there is no buyer's agent and Yadda and it's going to be the sellers. You can see, the Texas doesn't have dual agency, so you would have to completely change the whole rules of Texas to come, you know, conform with what they're trying to do, right. So, and in my opinion, I think there were some big players behind this move, right that, you know who I'm talking about. Big websites, absolutely Right, that triumph, funnel business, lead generation, lead generation to them. And I say these major websites that I'm not going to mention.
Speaker 2:But you know, what I'm talking about Go ahead and mention it.
Speaker 1:We're talking about Zillow Realtorcom. All of the above.
Speaker 2:Yeah. So these websites and I explain this to our clients too. You know before and I'll hashtag it, so hopefully they see this Before this these companies it's a love hate relationship with these companies, and the reason why is because it puts resources at the consumer's fingertips. So it's nice Like they can send you a house and say, hey, I want to go look at this because they saw it online.
Speaker 1:Right.
Speaker 2:So maybe something that you didn't send them through MLS. But MLS is our Bible, right, it's what us Realtors have private access to to see all the data, all the resources that we would need to help out a client Right, but now it's becoming, you know, more readily available to a consumer, which is good and it's also bad, and here's the paradox of it. So us as agents right, we as agents we are the ones who are going out and meeting with the clients, doing all the paperwork, measuring the rooms, paying for the pictures, putting in every little bit of data that you see on those major websites, right, so we're doing all the work. Then those major websites pay our boards, which we also pay, yeah, Right.
Speaker 1:So the board's indication for it?
Speaker 2:Yeah, For to syndicate out every about 15 minutes. So the boards are making more money, not only off of us but off of those websites. So they're pimping us out. That's basically correct. That's exactly what's happening, and then they're, in turn, selling it back to us in the form of leads, our own hard work. Think about the paradox of that and how horrible that is, but how also great it can be, because you can capitalize on it If you use properly?
Speaker 2:yeah, If you use properly, you can make good money off of leads and help a lot of people, right. So it's just the on. The truth is it costs a lot of money for it to be anywhere near worth it. And when I say a lot, I'm talking usually like $10,000 a month, a lot, sure, okay. And most agents can't afford that. So most agents are getting screwed. That's the on the truth of it. Their hard work is getting sold out and they're not reaping the benefits of it, right? And then, in turn, they're also that hard work is getting filtered to another agent that is paying for these leads, instead of them getting it off their sign call or them seeing it on their website or whatever else, right?
Speaker 2:So that is the unfortunate truth of how the current system works, and I'm probably I said I might be going to a long shot, but they were probably behind this lawsuit because they don't want agents to be on the buyer side. They want, they want it all filtered to them, because then they can filter it to who's paying them Right With mortgage and with with their agents, right.
Speaker 1:So that's actually a great point that you bring up it. It all the dots just connected in my head while I was listening to you. Because, essentially, if buyers representation goes away, or if it is affected, or do you want better if the seller no longer has to pay the buyer's commission, well, who's going to pay it? The buyer themselves? Well, if they don't have it, well then who pays it next? So big, big companies like Zillow that say hey, use our agent, who is either salary or small fee, a commission, off of something, but they're getting their money from Zillow. Who is getting their money from NAR?
Speaker 2:Sure, Wow, and and they're already showing that a lot of our MLSs are being purchased by corporations, right, so it's like it's just the corporation, the corporation of America. That's already happening, right, yeah, so in general it's again. It's a shame most buyers they can't even afford their downpayment, correct, they're not going to be able to afford to pay to pay an agent, right, and so when it comes to downpayment and closing costs, it's just out of the cards.
Speaker 2:A lot of people can't afford it. Now, yes, you can ask for it, and do the sellers have to pay both buyer and seller commission? No, that's what the whole lawsuit's about. Right, because agents were telling them yes, you do like, you're paying both, that's what you have to do, and that's not the case. You don't. But the other argument was and I got to be really careful how I say this do agents go towards listings that have more commission? And the answer is absolutely they do.
Speaker 1:Yes, they do they do Right. We've determined that on this show. Thankfully, the guests that were on here were truthful about it, and you are correct.
Speaker 2:They do. A lot of agents do that, which is not right, right. But again, you have to look at it in another. It's in another aspect. This is the norm, right? This is what it's like. It's like having a painter come paint your house and he's used to getting $1.25 a square foot for a painting your house, and then now they're being told that they shouldn't be getting $1.25 a square foot for a painting your house. They should be getting 75 cents, right, right. So that's the norm that's been set for so long. When a painter gets a bid and it's 75 cents, most times they're not going to take it. They're just going to go to the one that's paying $1.25 a square foot. That's correct. So it depends on how you. That's just not regulated. How you. It's not regulated. So it depends on how you look at it Right.
Speaker 2:And the biggest misconception, too, is that people think that agents make all this money Right by the time they're done with their commission, and most agents don't. By the time they're done paying board dues, mls fees, pitchers, advertising, broker splits they're lucky to walk away with like 40, 50% of their commission, you know. So, yeah, if they're getting paid 3% on a deal, they're really only getting paid more, like one and a half. And then you have capital gain or you're asking taxes, taxes. You have income tax with self-employment tax, sure, right. So you got another higher income tax bracket because you're self-employed, right, right, which most agents are. So in general, just, people don't understand that. They think that agents are making the big bucks and the average agent nationwide something like 70, 60,000 a year.
Speaker 1:I think it's actually less than that. I think the average agent closes like three to four deals a year?
Speaker 2:Yeah, it's next to nothing. San Antonio 40% right around there of realtors in San Antonio in the metro area. So one home a year less, yeah, one or less. So you don't survive off of that. There are stay-at-home moms, there are school teachers, they're doing other jobs, right. So a lot of people. They just don't understand. And then they have to pay thousands of dollars each year just to keep their license up with CE courses and board and MLS. So that's the biggest misconception. People think that you're just going to bank it in real estate and no, you're giving away a lot of your money every transaction. So when they lower that down even more, they're making even less. And that's what, in my opinion, they're trying to do is to weed out realtors all together, right, and a buyer. When they don't have representation, they're really being put at risk to get taken advantage of, absolutely In my opinion by the seller's agent.
Speaker 1:And I don't care if you are a teacher or an attorney. Either one, you don't do real estate.
Speaker 2:Yeah, exactly, exactly. You don't. So you are. It's almost inevitable You're going to get taken advantage of as a buyer when you don't have someone.
Speaker 1:It's not if it's when it's when.
Speaker 2:Yeah, it may not be that one transaction, but it'll happen eventually. And there's another kind of catch-22 that goes in with. That is if the agent doesn't know what they're doing, like we were talking about some of these major companies. They may be dishing out agents right and they may get corporatized where it's you're using their agents. They may be so green they don't know what they're doing that you're still getting taken advantage of. Absolutely, because they don't know what they're doing.
Speaker 1:That's exactly correct and I think that is maybe what also led to this is the abundance of agents not explaining it to their customers the right way. Because, for example, if one of your previous customers from years ago because that's what it was came back to you and said, man, you never told me that this was going to be the case, there's no way and I could stake my house on it that that is true because I know how you operate, I know how you talk to your customers. A meeting that takes most people, let's say 10 to 15 minutes, takes you an hour. Because you go through the intricacies, you say does that make sense? Do you understand? So I can move forward to the next piece of in this journey if that makes sense.
Speaker 2:Yeah, absolutely it does, and I think you always have to use an analogy in situations so people can understand, because a lot of times they don't or lay in terms of whatever you want to put it, but like that painter analogy that can be applied to anyone. It would be like a teacher asked to go to school and make two thirds of what they're making. Now I don't want to say it's not okay. If they're okay with it, then fine, but most people are just not going to be okay with it.
Speaker 2:No, you're correct and if your client really wants to see that listing that's paying 1%, you should still take them Absolutely. You should still take them, you still go serve them.
Speaker 1:Right and I think people are missing the concept of that customer is the pot of wealth for you in the future, not just from that one customer purchasing or selling, but their referrals. We forget that this is a referral based business to where you're only as strong as the value that you provided to that previous customer, because they're going to tell their friends, their family, anybody that they come in contact with, especially in the next 60 days after they close, because that's all they talk about who you are and or who you're not, if that makes sense.
Speaker 2:And that's how you got to look at it. You're hopefully going to get referrals off of them because you took good care of them and you put them first, absolutely so it doesn't mean that you just don't go take care of them because you're not getting paid the full amount, but what they're asking us to do is to not get paid anything and to pay to work, and that is straight insanity and I'm sorry. I will never agree with that. I'll never say it's okay, I don't care what show I'm on, I will say that all the time it puts not only the agent at risk, it puts the brokerage at risk and they got families to feed and bills to pay and asking someone to do that. If you're okay with that, I'm sorry you're wrong. I'm right there with you. There's nothing I can ever say that will be said. That would change my mind on that ever.
Speaker 1:I don't disagree at all. You're running short on time and I want to get you out of here on time, but I also have a slew of things left to talk about. I know like 10 minutes, okay. And if we don't, what are your thoughts on coming back and doing a part two of this so that we can mush them together? I'll even wear different shirts, y'all. I'll come back for you, okay. Okay, because there's still quite a bit and I'm loving this conversation. So, last thing that we'll talk about before we let you hop out of here let's go with home. Affordability is going to be a little bit longer for conversation. Let's go over new construction. New construction. Let's do that.
Speaker 2:Okay. So what I'm telling my clients right now and this is going to suck for you for me to tell the sadest for you.
Speaker 1:No, no, no. Tell the truth. I already know what you're going to say. You know what I'm going to say Absolutely, but it's the truth.
Speaker 2:It's the truth and it's an unfortunate nature of the beast. For someone like Mark who does independent mortgages, that's not a builder-tied mortgage right. But this is a very rare time in history at least in my 18 years of doing this where in a lot of cases it's actually cheaper to buy a new home than a pre-owned home. And when I say cheaper, I don't mean dollar-wise cheaper, I mean payment-wise cheaper.
Speaker 1:Absolutely yeah. And what you're going to pay in interest cheaper?
Speaker 2:And a good example is that someone with bad credit right now or not the best credit they're going to go buy a pre-owned home. Let's say $200,000, right, because that's what they can afford, correct, and I'm sorry, even in San Antonio area, $200,000 isn't going to get you too much. It's going to have probably some issues, right?
Speaker 2:So, depending on where you're at. No, I don't disagree with that at all. Actually, you got to look at all these other factors that go into a new home. You have warranties when your doorknob to doorknob two years electrical plumbing 10 years. Structural. It's more energy efficient. You're gonna have less repairs, right it's.
Speaker 2:There's so many other benefits to a new home over a Pre-owned if it's especially cheaper or the same price. On payment, right. And the reason why I say cheaper or the payment is around the same, is because these builders are offering insane incentives interest rate, buy downs and closing cost coverage, right. So, and when I say insane, you have builders out there that if someone were to go buy a preon, they're getting 7% because it's their first time.
Speaker 2:Home buyers would not good credit, but the builders are offering them four and a half or four, nine, nine, and their credit doesn't even matter. And then on top of that, they're covering their closing cost, correct? Are? They're giving them washer and dryer or fridge or blinds or whatever else, with all that and the end the rate, so they can go get a two hundred seventy thousand dollar home for the same price as a two hundred thousand dollar home. Yeah, payment, yeah, same payment price, you're correct and it just makes sense. And when you look at even the long run, yeah, you're still making money when you do a total interest over the mortgage calculator.
Speaker 2:Absolutely interest matters that much. Banks are rich for a reason, mm-hmm, it's the interest. And if you know anything about mortgages, they're all front-loaded. That's how they get your money right, and this is this is another controversial topic that we can talk about. Okay, and this is what I tell everyone. Well, but when you're, when you get a call from your servicer and they say hey, we can lower your payment a hundred bucks rate drop.
Speaker 1:Mmm, let's refi Mmm right.
Speaker 2:And this is one of the biggest things, one of the biggest cons.
Speaker 2:I'm in America right now, or what you're about one of the biggest cons in America that this is not regulated and that people can just Do this and they can call people and and convince them to do this and calm them into this right without giving them the facts. Okay, so say, someone been in their home for eight years and they get a call from their Wender and they had a higher rate and we're not seeing this now because rates are low right, this is gonna happen in the future go ahead right.
Speaker 2:So they're in their home for eight years and they're 22 years in on the 30 year note, right or server there at 22 years left, eight years in, right on their 30 year note, and a lender calls and they say guess what? You know, bob and Jane Smith, we could get your payment a hundred dollars lower and you can refinance to a lower rate, right half.
Speaker 1:My rates only gonna go down a quarter. How do you?
Speaker 2:do that, yeah, austin.
Speaker 1:Well, well it's, it's gonna go down whatever whatever, even half a percent up, but it's not about the rate. So so that tell us what it's about thinking, damn, I'm gonna.
Speaker 2:I'm gonna save a hundred bucks a month. This is awesome, this is awesome, right, and I'm gonna. You know, 1200 a year, my rates lower. It's all green flags to them. But what they don't realize is the resetting their term to a 30 year term and they're actually paying more interest in the long run and Losing money way, way more than a hundred bucks a month. And there's no regulations against this and people get taken advantage of all the time, right and all the time.
Speaker 1:There are somewhat regulations for churning, but, at the same time, that customer is Not educating themselves enough in that subject to see the red flags, indicators, things that they should be looking at, versus just that monthly payment that, in some cases, hey, does that help someone? Sure, if that's what you're hurting for, totally understand. But where those? Was that explained to you the right way? Do you realize, by doing this, this is what it's gonna take, whereas somebody else that's experienced and a little bit more honest about what we do is show them, hey, this will lower your payment by stretching it out 30 years, but 15 years will save you money.
Speaker 2:That's exactly right and I'm glad you clarified, because it is called churning. That is the actual Technical term. But he said it exactly right. It's that they're not educated. So, yes, it might help someone if they are really hurting, right? And paycheck to paycheck a hundred bucks, but most anyone who is sensible with finances they're gonna be like I'm gonna lose tens of thousands in the long run. Correct, even if I save a hundred now, it makes. What does that look like over time?
Speaker 1:because I'm going to stay in this house for x amount of year. I mean, those are questions that should be asked, but they are not. And they are buckle up folks, because we're going to head for a refinance boom in the next two years, I would imagine. I can't guarantee it, but the writing on the wall says that's what it seems to be shaping up for. Now back to your Story or Concept of the new home. Yes, I love that. And what I want to add to that? To help, and not even to help, but to confirm.
Speaker 2:Let me get stats before you, before you talk.
Speaker 1:Okay, I was actually gonna talk about that, so here's, here's, sabre market.
Speaker 2:Yeah, that's okay for, because I'm all big on stats. I love it, I go over with the agents. But you're over a year. For January, 40% increase in New home sales mm-hmm from January this year, right last year, okay, 40%, and, if I'm correct, existing homes are down 23%. So in the actually in the last.
Speaker 1:Last year was the highest volume of New home construction, new home sales since 20 2008. It was also the lowest year for preview pre-owned homes since 2008. Odd, but it makes sense because the inventory is limited now. I used to educate customers on the concept of if you're going to buy a new home, no problem at all, because back in the day, man, you, marcus, andy, y'all are able to walk into the new home sales and say, hey, he's pre-qualified for mark with mark, he's already prepared the credit, all that stuff. We're getting those incentives period and they would. Now they don't have to, and the reason why they don't have to is because we Just talked about now is a shortage in inventory. There's a ton of buyers sitting on the fence that need inventory in their price range. The builders are providing that to them.
Speaker 1:What I used to tell customers is you realize that the builder is the one creating those comparables in the area that they're using to price this home. But nowadays, because of what has taken place, that Education session or lesson doesn't deem as true or to shape out, because, regardless of whether you stay in the home for two years, like most people do, or eight years, that builders probably gonna still be building in that neighborhood because the inventory is low everywhere else, whereas before, in my opinion, the true values of those homes don't come out until the first person or first couple of people that bought in that neighborhood Sell in that neighborhood. It's true, but these days, with the shortage going on and the Regardless of whether they're keeping the home price at a higher amount, they're still able to take that money that would have lowered your actual home price and move it over to the right side to give you that benefit. I don't have any issues with that. That as actually a good thing for buyers.
Speaker 1:I want more buyers, I want more homeowners, I want more people that got to go through what I went through. I mean, there was no way in the world. You asked me when I was younger where you'd be today and I'd say, yeah, this is what it looks like. There's no way, you know. So let's stop it there and then we'll pick this sucker up to finish this interview off. So for the time being and you have to come back because we haven't done our outros We've got like a ton of different things to talk about here.
Speaker 2:I love it Make it two episodes.
Speaker 1:We can. We can because we talked for a little bit. Yeah, no, but these are good conversations that I believe that people should be hearing and getting different perspectives on. It's been a while since you've been on here and I respect your insight Truly. I mean from somebody that I grew up with and taught me a lot about real estate, and we taught each other about the real estate mortgage side of things and and now have the ability to educate others. Sure, that's a perfect storm, in my opinion.
Speaker 2:Well, I mean, I think, going through our next up it's gonna be this long as well. For sure you should, I would say, just make, make this episode one.
Speaker 1:Episode two Okay Well, is there anything you want to tell people on episode one that I part one?
Speaker 2:I don't know everything. I'm still learning right, I just do do the best I can and with the knowledge that I have, and not everything I say is right, but a lot of the stuff that I say is right.
Speaker 1:There you go. Well, ladies and gentlemen, hopefully you've gotten this far in the episode that once we Complete it we're on to the next one and you guys hopefully get some insight out of this. So I won't even sound it off.
Speaker 2:We'll see you on the next piece of this and part two and thank you for having me, of course, and happy Valentine's Day Happy.
Speaker 1:Valentine's Day to you too. Yeah, thank you guys. Welcome to key factors podcast, where knowledge meets ambition in the fast-paced world of real estate and mortgage. I'm your host, mark Jones, bringing you the latest insight, trends and expert advice to navigate this dynamic property market. In each episode, we dive deep into the heart of the industry, dissecting market movement, exploring investment strategies and unlocking the secret to real estate success. Whether you're a seasoned professional, an aspiring investor or simply looking to stay ahead of the curve, this is the ultimate guide to making informed decisions in the world of property and real estate. So grab a seat and let's uncover the key factors that make all the difference. Welcome to key factors podcast. Let the journey begin.