On this week's Idaho Real Estate Buzz, find out what it takes to start building your real estate empire. Learn about the different requirements for buying your primary residence and rental property with Michelle Guth from Diversified Mortgage. Thom Dallman and Dave Burnett also discuss what goes into becoming a Real Estate Agent.


Segment 1


Dave Burnett:                    This is the Idaho Real Estate Buzz. I'm Dave Burnett along with Thom Dallman of Core Group Realty. CoreGroupRealty.com, that is the website for you to go to. 933-7777, that's the anytime phone number for you to call Core Group as a customer care agent is standing by even as we speak to answer any questions you might have about the website, about the Core Group, or about this radio show. Thank you for joining us. Thom Dallman back in the studio as we get ready for another week.

Thom Dallman:                  Ready for another week. What a crazy week.

Dave Burnett:                    I was peaking across the table at your secret listing list you have over there and I'm not sure if you have stuff added in there or if that list.

Thom Dallman:                  No, we've got a ... Yeah, we've had quite a few homes that have got under contract with us and that are working through their process to get listed, and so we put them on our secret listing tab on our website. These are homes that are getting prepared to come on the website. I'm happy to report that summer I guess has hit and we're starting to see a little bit of an increase in the marketplace as far as listings go, which is really needed. As we've talked about on the radio show, our inventory has been so super low, the last six months.

Dave Burnett:                    At least.

Thom Dallman:                  Yeah, at least. We had continued to kind of drop and so we've leveled out a little bit and actually increased inventory a little bit in May. Hopefully, that's a projection of homes coming on the market.

Dave Burnett:                    If you're new to the show, let me say this. A secret listing, what it is are homes that are going to be listed by Core Realty. As of yet, Core Group hasn't listed them officially. They haven't gone to MLS. The whole world does not know about them and that's why they're a secret because we're sharing this with you. It's a chance for you to take a look at these properties on the website and decide that's something I'm interested in, so you can have a head start there.

Thom Dallman:                  Exactly, yeah. This is only available really on our website as well as we do syndicate it out to Zillow on their coming soon features as well. So there's only two places that people can see it. It's not out there on the broad internet just yet. So that's why we kind of refer to them as secret listings but most people commonly refer to them as coming-soons but we like to call them secret listings because in this marketplace, where we have so many buyers and so few listings, it's good to have a little secret listing.

Dave Burnett:                    Well, let's jump into it. You've got a lot to go through here.

Thom Dallman:                  Yeah, oh my gosh. I don't even know where to begin. I guess we'll start a little bit out in Nampa way and kind of move across the valley. So our first one is at 1525 Southside Boulevard. This is in Nampa. This is not in a subdivision, so those people who are wanting to avoid homeowner's associations and stuff like that, this is a great opportunity for that. This is on an acre, so 1.07 acre. This is a 6 bedroom, 3.5 bath house with 2,682 square feet.

Dave Burnett:                    Wow.

Thom Dallman:                  Big house, lots of bedrooms. Lots of rooms in there. There has been a report that there may be a seventh bedroom in there but they're advertising it as a six bedroom. It's a two-story with a pantry. They do allow for chicken and horses on that one acre. They have garden space, RV parking. They have either bamboo or cork flooring as well as carpet throughout the den and office. Just kind of a little bit of everything that you could need including some extra bedrooms.

Dave Burnett:                    Do you have the listing there of what year that was built?

Thom Dallman:                  This one was built in 1989.

Dave Burnett:                    That's not that old of a home, but a little bit older of a home and huge.

Thom Dallman:                  Exactly. Huge, a huge opportunity.

Dave Burnett:                    Wow.

Thom Dallman:                  It's going to be listed at around $300,000, so a really good opportunity for a nice big house with a three-car garage too, so it's…

Dave Burnett:                    Even still at that price, that's a great bargain. That many bedrooms, that much property. Wow.

Thom Dallman:                  Yeah, yeah. Six bedrooms, one acre, three-car garage, RV parking. All for $300,000 at 1535 Southside Boulevard. So a huge opportunity for that one, for sure.

Dave Burnett:                    Check that out on the secret listings at CoreGroupRealty.com.

Thom Dallman:                  Exactly.

Dave Burnett:                    Number two.

Thom Dallman:                  Two, 1265 West Waltman Drive in Meridian. This one is a three bedroom, two bath, single level, with a two-car garage. You're looking at about 192, coming on the market, when it does come on the market. So a really nice opportunity for kind of that starter home, investment home. Anything under 200,000 right now is a really good opportunity for those first-time home buyers or for starter homes, and especially in Meridian, where property is really poppin'. To get something under $200,000 is rare. This is in The Landing subdivision. Once again, that address is 1265 West Waltman for the three bedroom, two bath, single level house.

Dave Burnett:                    It kind of makes me smile when you talk about Meridian that way because when I first moved to town here in the 1980s, Meridian was just a cow town.

Thom Dallman:                  Yeah. Oh, for sure.

Dave Burnett:                    You know, that's what it was. It had a bunch of dairies. People referred to it kind of as a cow town.

Thom Dallman:                  Exactly.

Dave Burnett:                    Now, it's one of the hottest places in America to move.

Thom Dallman:                  Oh my gosh, yeah. It is really super hot, and speaking of, we have a second one there as well. So it's 6200 West Kostalota, I'm not exactly sure about the spelling on that or the pronunciation.

Dave Burnett:                    Spell it for me.

Thom Dallman:                  It's K-O-S-T-A-L-O-T-A, Kostalota. Kostalota Lane. What's that?

Dave Burnett:                    I'm not going to argue with you.

Thom Dallman:                  That sounds good. Once again, this is not in a subdivision. This borders the Canyon County border line. This is on 5 acres, 5.15 acres. It's a 3 bed, 2 bath, 1,800 square foot manufactured home on this, which is on a foundation. The nice thing about this is that it's an original foundation, so it does qualify for all financing. So it's a great opportunity for 5 acres, 3 bed, 2 bath, 1,800 square feet, coming on at $330,000, which is a great price to be able to have that much acreage. To have your RV parking, your ...

Dave Burnett:                    Space.

Thom Dallman:                  Horses. Yes, just space. You can do almost anything on here.

Dave Burnett:                    Now, the downside on this property is you'll have to explain the pronunciation of the street name to everybody.

Thom Dallman:                  Yeah, exactly. Yeah, you're going to have to spell that to most people because I don't think that's going to be one that people are going to gravitate to very easily.

Dave Burnett:                    We have to ... Now, how do you pronounce that again? I have to tell 'em every time how to spell it and how to pronounce it.

Thom Dallman:                  Exactly. So 6200 West Kostalota, with no HOA. Next, let's move into Boise. We have a couple properties in Boise proper itself. The first one is at the Westland Acres subdivision. It's 1279 North Cole Road. This one is a 3 bed, 2 bath, 2,500 square feet, with a 2-car garage. So built in 1955. It's got two fireplaces, fully fenced. It's got a great deck patio on it, RV parking as well, and coming on the market at 284, when it hits. So another good price point in Boise and prime location on Cole Road. 1729 North Cole Road.

Dave Burnett:                    This is nice after so many weeks of just one or two coming-soons, to have a choice and a wide variety of different kinds of properties.

Thom Dallman:                  Exactly.

Dave Burnett:                    Yeah.

Thom Dallman:                  Yeah, we'll be getting to some other variety, here in a second, because we've got a recreational property up in Pine, Idaho, that we've got and we're going to begin listing too, so we'll talk about that here in a second.

But let's talk about 11337 West Tioga Street. This is another hard one to pronounce, Tioga.

Dave Burnett:                    I think it's Tioga.

Thom Dallman:                  Tioga? Is it Tioga?

Dave Burnett:                    Yeah

Thom Dallman:                  T-I-O-G-A. This is at the Five Mile Estates North subdivision. So it's a 4 bedroom, 2 bath, 1,500 square foot, 2-car garage, single level home on 0.41 of an acre. So once again, a nice lot size and it has a shop that has electricity going to it. So for that tinkerer and that person who wants to get out there in his shop and do some work or her shop and do some work, it's perfect for that. So this one's coming on at $240,000, so another, one again, great price point for Boise, and so forth.

Dave Burnett:                    Nice.

Thom Dallman:                  29 Mores Creek Circle in Wilderness Ranch.

Dave Burnett:                    Okay.

Thom Dallman:                  Mores Creek Circle is up in the Wilderness Ranch area, so a great little spot if you're wanting to really just live out of town and out kind of in the rural area.

Dave Burnett:                    But still close enough that everything is right there.

Thom Dallman:                  Right there. You can just jump down the hill and get to wherever you need to go. This one's on 2.39 acres, so a nice big property with a 3 bed, 2 bath house on it, 1,500 square feet. This one's coming on at $250,000. It does, once again, allow the chickens and horses, and RV parking and all that stuff. It does have road maintenance that goes to it and it has hardwood and carpet throughout the house. So 29 Mores Creek Circle, if you're looking something kind of out there and out of the way, and coming on at $250,000.

Dave Burnett:                    The kind of place you want to live, where the neighbors are at arm's length.

Thom Dallman:                  Exactly.

Dave Burnett:                    You can go out and sit on the deck on a Sunday morning in your underpants and read the newspaper and just enjoy yourself.

Thom Dallman:                  Exactly.

Dave Burnett:                    That's my kind of living.

Thom Dallman:                  Exactly. Speaking of kind of that rural living, we are privileged to highlight a property that is super unique, super different than what you normally see. This one is a 20-acre property up in Pine, Idaho. The address is 1543 South Hall Lane. Check it out because it is actually has been used as a family retreat. So it has several buildings for the living quarters. It has a separate building that's actually the mess hall, if you will, with the kitchen and everything involved. It's actually kind of set up as a retreat center. A retreat for the family to go up and have their own space but still get together for their family dinners and stuff like that. 1543 South Hall Lane. I don't really have square footage and stuff because of the separate buildings and stuff like that but something definitely worth checking out.

Dave Burnett:                    Any photographs online?

Thom Dallman:                  There should be some photographs online, yes.

Dave Burnett:                    Okay.

Thom Dallman:                  Or will be shortly. This one is coming on at $400,000, which is really a great price for a retreat property like this and to be getting 20 acres up in the mountains if you will.

Dave Burnett:                    Oh, I know, yeah. That's incredible.

Thom Dallman:                  It's a great fun featured property that we have the opportunity to list and to get out there for everybody.

Dave Burnett:                    Let's put it if you're driving down the road right now and you're going, Herbert, at 20 acres, how much is that? That's a lot.

Thom Dallman:                  Yeah.

Dave Burnett:                    I mean that is a whole lot of space up there.

Thom Dallman:                  Really, it's a lot of space for people to run around.

Dave Burnett:                   If you're ever up in Pine, that's the kind of property where suddenly you realize you have elk and deer running all over your property.

Thom Dallman:                 Exactly, exactly. I wouldn't doubt that you would wake up and find some wildlife running around the yard and stuff. So definitely worth checking out and seeing it in person, if you want. If you can take a drive up there and see it in person and walk around, it's a really lovely property.

Dave Burnett:                    Nice.

Thom Dallman:                 Yeah. Something unique and different.

Dave Burnett:                   So quite a few coming-soons or I should say secret listings on the CoreGroupRealty.com. You might want to check these out. Any other you have or at we at the list?

Thom Dallman:                 We talked last week about 18393 North Can-Ada Road in Nampa. That's the manufactured home that's on owned land. So it's a 2 bed, 2 bath with 1,100 square foot on 2.76 acres, coming on at $265,000. So that is also on the list as well.

Dave Burnett:                    Plenty to look at it.

Thom Dallman:                 Yep.

Dave Burnett:                   Go to CoreGroupRealty.com. That is the website and check those out. We're going to be talking to Michelle Guth about what is happening in the world of finance with Diversified Mortgage coming up. That's what makes all of these things happen, the transaction. If you don't have the finances, nothing's going to happen. So we'll give you the latest with what's happening there, coming up with Michelle. Here on the Idaho Real Estate Buzz, this is 580 KIDO, 107.5 FM. It is the Idaho Real Estate Buzz.

Segment 2


Dave Burnett:                    This is the Idaho Real Estate Buzz, I am Dave Burnett along with Thom Dallman, and Michelle Guth with Diversified Mortgage, equal opportunity lender joining us in studio today. And something I've been wanting to talk to you about and I guess I came up with this idea because somebody mentioned it to me. How do you become, I mean it's obvious how you become a property owner but, if you want to own multiple properties or get involved in investments, how do you do it financially?

Michelle Guth:                  Well there's actually several options, I guess it depends on what is your long term goal for that property, are they wanting to get multi-family units that are apartment sized buildings? Or fourplexes and below, but basically for residential, if you want to purchase a residential property that is able to get a mortgage versus commercial financing, it would have to be a four unit or less, so a four-plex, three-plex, duplex and single family you can get a standard mortgage on.

Dave Burnett:                    Okay, so four units or less.

Michelle Guth:                  That is correct.

Dave Burnett:                    Now, how did they decide that? I can maybe see a duplex, but it seems to be once you go to a fourplex it's pretty much an apartment, isn't it?

Michelle Guth:                  I don't know, I mean we have some four-plex units in the valley that don't require a lot more managing than that of a duplex, and I have some investors that like having the four-plex just because in many cases they can have an on- site tenant that has some property management background where they're living in one unit and then they can maintain the other four versus having four properties spread over the valley, so there's some cost savings there and it can be a little more user friendly for the investor.

Thom Dallman:                  Not to mention, we've had some clients in the past that have wanted fourplexes so that they can live in one unit and manage the other three and get the income from the three to help supplement basically their mortgage payment and everything, so.

Dave Burnett:                    Okay, so if interested in beginning to build my little empire, the Burnett empire of properties, so I go on to Diversified and you get me qualified, I find the property or you get me qualified I guess first for a four-plex or less, and you just go through the standard loan process on that? Even though I own a home?

Michelle Guth:                  Correct, so it's no different than any other mortgage process, we're going to still go through all of the asset income verification and so forth, but there is a higher expectation requirement for reserves and assets when buying investment properties than there is typically with buying a primary residence.

Dave Burnett:                    What does that mean?

Michelle Guth:                  For example, when you're buying a rental property, they want to see that you have reserves in the bank and what that means is that if the property had a $1,500 a month payment, they want to see that you have so many months’ worth of extra payments sitting in the bank to cover that property in the event of vacancy.

Dave Burnett:                    Okay. Alright, so we go through that, so I'd probably need a little more money in the bank-

Michelle Guth:                  You do. So, single family you can get in on a single family residence investment with as little as 15% down, but I can tell you in my 26 year career I have not had anybody want to do 15% down conforming loan just because the mortgage insurance can be a little bit cost prohibitive and the interest rate goes up quite a bit, so it's pretty standard for a single family for people to do 20% down.

Dave Burnett:                    Okay. You need to have some cash to get started on doing this.

Michelle Guth:                  A good chunk of cash, 20% is pretty substantial in most cases.

Dave Burnett:                    Okay, so let's say I find a duplex, we go through the process, Thom has found me a perfect duplex we buy it, it gets sold, it's signed, it's done, it's mine. Now, at that point I have my own home, I own a duplex, and I find another home out there, a good buy that Thom and his people have put together for me, how do I go about buying that one at that point?

Michelle Guth:                  Exact same process, so again now with multi family, since you become duplex or above your down payment requirement has now gone to 25% down. So single family is typically 20, duplex or greater is going to be 25% down. With that, if you were acquiring even two properties at the same time, we can even use proposed rents from the property to help offset the payments. For easy numbers say your mortgage payment was a thousand dollars, and we could get a thousand dollars in rent on that unit, we will give you credit for 75 percent of the rents received to offset that payments, so in easy numbers again, that would be $750 we'd give you credit for so you'd only have to qualify with $250 dollars in expense in your debt ratio against that property.

Dave Burnett:                    As my kingdom grows, does it become easier to get more loans then at that point, or is it still just the same thing?

Michelle Guth:                  It depends on the circumstance and the borrower, not necessarily easy in the fact that as you acquire more and more properties, you're going to have higher debt ratio, so it could impact your ability of getting additional properties until you have a track record of either receiving rents or showing them on tax returns for a certain length of time so we can start offsetting some of those payments.

Dave Burnett:                    Do you recommend that somebody gets one or two rentals and sit on those for a year or two to build a history before you try to grow, what would you recommend?

Michelle Guth:                  Again, I say it depends on the individual, so my suggestion would be if you do not have past property management experience, and even if you hire a property manager and Thom has some great recommendations here, Core Group is to who they could recommend for property managers, but even if you decided to self manage or hire somebody, I would say get your feet wet, do one, maybe two at the most for a first year or two, just to get a good grasp on what is going to transpire with that between again covering vacancies, if you have tenants move out, hot water tanks go out, I mean just really kind of dip your toe in the water, make sure you're comfortable before you get too crazy in trying to acquire multiple properties.

Dave Burnett:                    Let me ask both of you this question, when it comes to owning rental properties, is there kind of a price point where, let's put it this way, more expensive properties in some cases easier to deal with the tenants than the lower price properties, just because of the stability of the renter?

Michelle Guth:                  In some cases from my own personal experience, I've had a higher end rental and I've had starter home rentals and I've had good experience with both of them, so again I think a lot of that is vetting the tenants and who goes in there and that's where property managers are really going to come into play where they're going to hopefully vet that person and make sure that they're getting them a good candidate for you.

Thom Dallman:                  Exactly, and there are property managers that actually for a small fee vet those without managing the properties long term, they will do upfront vetting and making sure that they check credit backgrounds and stuff like that, rental backgrounds and so forth. There's options out there for vetting those potential renters to make sure that they're getting good people in.

Michelle Guth:                  Absolutely, and I would encourage you to use a professional company as Thom mentioned, even if you're going to self manage because they're going to go as far as even doing background checks in most cases, you want to make sure that they don't have that criminal record where God forbid they turn your house into a meth lab, and now they've completely devalued your property to nothing because of the contaminations in the property.

Dave Burnett:                    Is this something, Michelle, Diversified Mortgage that your folks ... if somebody just wants to come in and counsel and say, I'd like to become my own little kingdom, is there somebody who'll counsel them on what to do and how to go about it?

Michelle Guth:                  Oh, absolutely, and we'll partner with our real estate partners as well and have them give some added advice on that side of the transaction, but by all means we're going to walk them through the credit approval process, what they have to have in assets, reserves, and even things to consider as they're budgeting for what these expenses going forward could be, because we want to make sure that they succeed with this purchase, that they're not stretching themselves too thin that, they do have the proper assets to make sure that they can cover those unexpected events.

Dave Burnett:                    Let's switch gears here, let's say I'm in a position that oh look at that, there's a ten unit apartment complex that I had the ability to buy and it's an affordable great deal, what are the loan restrictions and how does that work when you're dealing with multiple, multiple unit properties?

Michelle Guth:                  Well, then that is no longer a mortgage, so that's then going to go into the commercial arena, so you'd be getting some form of an SBA loan or commercial type transaction, so I have partners in the area that can assist with that, we at Diversified do not do multi-family units, which again most mortgage banks don't, but we usually have a partner that we can refer them to.

Dave Burnett:                    Alright, let's change topics here a little bit and Thom I know this is something you have experienced here in the Valley, let's say I just want to be a home flipper. I have my own home, everything is great, but let's say Thom has run across a home that just needs a little tender loving care, some cosmetics, what is the process I go through for a loan, knowing that it's a flipper, what do we do there?

Michelle Guth:                  Well, I'm glad you bring that up because it's actually something we touched on in the past, as a mortgage banker, we actually take a significant loss and have to pay penalties if the loan is paid off over a certain number of months typically in seven months or fewer. For somebody that their intent is to flip a property, that's not basically a transaction that we're going to be able to assist them with, so it can get a little more challenging if that is their intent is literally to buy, hold them for a couple months, and sell them, most mortgage lenders are not going to want to be involved in that type of a transaction just because we are actually penalized significantly for an early pay off.

Dave Burnett:                    So it's just not worth it for your business to-

Michelle Guth:                  Well not even not worth it, we lose, I mean we are penalized, we pay far out more than we would ever get in revenue on that transaction.

Dave Burnett:                    So is that something, if somebody is a flipper, you more than likely need to have the cash in hand.

Michelle Guth:                  Absolutely, or go to private money investors typically.

Dave Burnett:                    Okay, so I found out a little bit today how to become my own little king and my own little kingdoms, is there a way, I guess it depends on your motivation, flipping would be a whole different thing, and multiple units would be a whole different world than just trying to own a few different rental properties, wouldn't it?

Michelle Guth:                  Absolutely, and if you are considering flipping, it's a great opportunity if you have the assets to do so, but take into account that with flipping, there are also some lending restrictions that if you buy a property and then you flip it and you've only been on title for under 90 days and you go under contract in that 90 days, then that person can't even get certain loan programs, like just and so forth.

Dave Burnett:                    Oh really?

Michelle Guth:                  There are some pitfalls to flipping as far as availability for products when you go to resell.

Thom Dallman:                  So you have to take that into account when you're thinking about your expenses and how long you're going to hold the property and those expenses each month for the property when you're looking at the flipping, I highly recommend if you're going to do a flip, that you do hold on to it for the 90 days so that you can get all the buyers potentially in there that you need.

Dave Burnett:                    I had no idea. I watched these flipping shows, and it's just like we got to get this done this week, oh what a crisis, and the next [inaudible 00:10:43] or them they got to sold this out of here. They don't go into all that.

Michelle Guth:                  Yeah, and you can get financing on it, but there's restrictions, it's typically going to be limited to conventional finance, and in many cases we have to do two appraisals and several other steps, so it's not to say they can't get financing, but the number of programs available are restricted.

Dave Burnett:                    Very good. Michelle Guth with Diversified Mortgage, if somebody wants to talk about counseling, maybe they want to get into property ownership or maybe they're looking for that first loan or looking to get a child into a loan, how do they get a hold of you to get a little bit of information?

Michelle Guth:                  Just give us a call at the office at 853-7878 or visit our website DMGloans.com.

Dave Burnett:                    Diversified Mortgage! Equal opportunity lender. We'll continue on the other side, this is the Idaho Real Estate Buzz where we try to get you a little bit of information and knowledge to move forward in the world of real estate, we'll continue here on the 580 KIDO and 107.5 FM.

Segment 3


Dave Burnett:                    This is the Idaho Real Estate Buzz, I'm Dave Burnett along with Thom Dallman, of Core Group Realty. CoreGroupRealty.com. That is the website to go to, to find out all the things we talked about. To find out more information about the secret listings, the featured listings, if you're looking for a vendor, somebody maybe to do property management for your home, you'll find all of that listed Core Group Realty. Very interactive, and a very useful, easy to use, website. If you have troubles using it, there's somebody standing by right now, 933-7777, that can help guide you through this as well. So check it out at CoreGroupRealty.com.

Thom Dallman:                  They always have someone hanging out on the phone.

Dave Burnett:                    That's good, and on a Saturday afternoon, you know? That would be a nice thing. If you're thinking about going out and looking at a property, and you forgot where it was at. You can call 933-7777, tell him a little bit about, and they'll help you find it.

Thom Dallman:                  Exactly.

Dave Burnett:                    You know, one of the things we were talking about during the commercial break is, for real estate agents, there are times, whether it's a buyer or a seller, there's just some oddball things.  Not that it would be a Core Group customer, but those other guys. Just some of those oddball things that buyers and sellers will put their agents through.

Thom Dallman:                  Yeah, we get some very unique personalities. Not only here, but just you hear stories, especially for me 'cause I'm once again associated with agents throughout the nation that I communicate with regularly, every day, and we kind of share some of the interesting things we've encountered, and stuff like that. It's always kind of fascinating, some of the people that we encounter, and some of the things that they want to do in their homes, and stuff like that.

Just for instance, we had one agent that was reported that he had a buyer that had to basically feel the vibe in every house that they wanted to put an offer in. So, if they found a home that they really liked, they would literally go sit in the house, request for additional time to sit in the house, up to an hour, just so that they could lay on the floor, usually about 10 minutes to 15 minutes, but sometimes an hour. Just lay on the floor, close your eyes, and feel the vibe of the house.

Dave Burnett:                    Well, you know there are some people that feel that homes have a vibe.

Thom Dallman:                  Right?

Dave Burnett:                    I guess. Could I have some alone time? Me and the house?

Thom Dallman:                  Exactly.

Dave Burnett:                    I can imagine though for the agent though, it's like, "I need some alone time to just lay down in the house." It's like, "Okay ... "

Thom Dallman:                  Yeah. Everybody has their own thing, their own personality.

Dave Burnett:                    Quirk.

Thom Dallman:                  You can call it a quirk, that they feel that's what defines them and makes them, and we try to help all of our clients, no matter what that is.

Dave Burnett:                    You think about it though, I mean there's times when you're alone in your house in the evening. TV's off, music's off, and you're just kind of in it, and the home does kinda have a feel.

Thom Dallman:                  Exactly. Yeah.

Dave Burnett:                    You know, some homes feel warmer than others, some homes feel friendlier than others.

Thom Dallman:                  Oh for sure, for sure.

Dave Burnett:                    So I guess if they are really sensitive that way, and they kind of see auras, they can lay in the house, and pick up the vibe of the house.

Thom Dallman:                  Yep, that's for sure.

Dave Burnett:                    To me, it's more kind of the neighborhood.

Thom Dallman:                  Yeah, yeah there's a lot of people out there who are more into the neighborhood aspect of things, and want to make sure they do the research on the neighborhood, and make sure that everybody is friendly, and what not.

Dave Burnett:                    I will say this, true story, and they probably thought I was a stalker. We bought a house here in Boise, in West Boise, when we first moved here that I actually went at different times of the day, and parked my car, and just sat in the neighborhood. Just to watch what goes on.

Thom Dallman:                  Just to see what happens.

Dave Burnett:                    In the morning, went late in the evening.

Thom Dallman:                  Wow, you were a stalker.

Dave Burnett:                    Went in the afternoon ... I know! People are probably going, "Who's that guy?"

Thom Dallman:                  Who's that creepy guy sitting in the car?

Dave Burnett:                    I just kind of wanted to get a feel for ... I had little kids at the time, and I wanted to get a feel for the neighborhood.

Thom Dallman:                  For sure, for sure. Yeah that makes total sense, especially if you have kids.

Dave Burnett:                    So I guess I could have been one of those cranky people.

Thom Dallman:                  Exactly. I once had a client that actually had the need to, whenever we found a house that we identified that they wanted to put an offer in, he would use that, what is the electromagnet spectrum ... ?

Dave Burnett:                    Yeah, for the electromagnetic spectrum in a house.

Thom Dallman:                  Yeah, yeah, one of those devices that he would walk through the house, and figure out that we had a certain level of that electric spectrum, that he didn't want to live in the house if it went above that point.

Dave Burnett:                    Okay, wait a minute, I'm gonna come back on you again here. That is a fact that, you know sometimes where some people feel, and especially in older homes, you go in the basement, and you just feel creeped out?

Thom Dallman:                  Yep, it happens.

Dave Burnett:                    That is because of the electromagnetic fields.

Thom Dallman:                  Really?

Dave Burnett:                    All of those older homes, and the homes that have cloth over the wires, all the wires, the electricity causes an electromagnetic field, much like you know if you go into power lines, one of the symptoms for some people is it makes them feel uneasy.

Thom Dallman:                  Oh, that makes total sense.

Dave Burnett:                    Some people have said, "Oh, it shows that a house is haunted." No, the electricity is making you feel creepy is what it's doing.

Thom Dallman:                  I've been in a few of those houses, I did think they were haunted.

Dave Burnett:                    Maybe they were, but the electromagnetic field, that's why some people don't want to live near power lines.

Thom Dallman:                  Exactly.

Dave Burnett:                    Because there is an electromagnetic field. So I guess if you were sensitive to it, I could see where you'd want to know.

Thom Dallman:                  Makes total sense. It makes total sense.

Dave Burnett:                    Yeah,  So they're maybe not as crazy as we think.

Thom Dallman:                  I never said that they were crazy, I just said it was interesting.

Dave Burnett:                    That's very interesting.

Thom Dallman:                  Yeah, I mean we've seen reports, or we've heard reports of people doing everything from ... Here, let's talk about sellers actually.

Dave Burnett:                    Okay.

Thom Dallman:                  Sellers, and some of the unique things that they go through. Sellers get very attached to their properties, and like to offset blame, let's say, to the buyers, when the buyers aren't interested in properties. For example, there's a report of a seller that had lots of dogs, and lots of dogs that were not necessarily trained to go outside, and so when they got their house on the market, and buyer after buyer continuously did not want to purchase the property, that seller automatically went to, "It's because they hate dogs, they hate animals, they're animal haters, I don't want to sell to them anyways."

Dave Burnett:                    No, we just don't want to smell the animals.

Thom Dallman:                  Exactly.

Dave Burnett:                    That is tough. You see these ads where it says, I can't even think of the term they use, but your noses become desensitized.

Thom Dallman:  Exactly.

Dave Burnett:                    What you smell is your house, what they smell is a dumpster. There is a bit of that, that we don't smell our own homes, and so I guess that's where you have to kind of trust the real estate agent, and not get your feelings hurt if somebody comes and says, "It kind of smells like a cat box in here."

Thom Dallman:                  Exactly. Yeah, we counsel sellers all the time about the smells. Even some people, they love their Scentsy, they love their candles.

Dave Burnett:                    It's too much.

Thom Dallman:                  Sometimes it can get too much. So, they can be really off putting for a buyer to come through a home to have those strong smells. I've personally had clients, who the minute we open the door, if they smell any of that kind of potpourri, or anything like that, they instantly would not want to go in a house. They're like, "No, that makes me get a headache, I don't want to even do the house." ... So, you got to be really, super sensitive.

Dave Burnett:                    Potpourri to dirty carpets, you've got a whole spectrum.

Thom Dallman:                  A whole spectrum in their stuff.

Dave Burnett:                    Then, a lot of people are very sensitive, their sense of smell, they got a sensitive nose.

Thom Dallman:                  Exactly. Sellers can be sensitive about that. Gosh, what else? We've talked in the past about, and I think we've mentioned before about inherited plants, planted out in the yard. That's always been an interesting endeavor when a buyer to a house and sees all these beautiful rose bushes, that's what happened to be in my case, is that someone had some rose bushes that had been handed down from a grandmother, mother, to daughter, and were planted out in the yard. We went to sell the property, and after closing, came to the house and found all the rose bushes had been removed, because they didn't intend to leave them, because they were passed down generation to generation.

Those are always a tough situation, and one of those points where we always tell people, make sure you disclose if you're going to take something like that.

Dave Burnett:                    If you're gonna take it ...

Thom Dallman:                  If you're that attached to it, so that the buyers aren't surprised on that level.

Dave Burnett:                    I guess it's something that if you're a real estate agent, if you haven't run across those quirks, you will, sooner or later.

Thom Dallman:                  Oh yeah.

Dave Burnett:                    Some people are just a little different than the rest of us.

Thom Dallman:                  Exactly.

Dave Burnett:                    You get special treatment, one way or another, but I find that fascinating.

Thom Dallman:                  Just all kinds of different situations, and one person's fear can really get to them. I chatted with an agent once, who had a buyer who was afraid of rodents. So, pretty much every time before he wanted to do an offer, he was insistent that they get an exterminator into the house to evaluate the house to make sure that there were no rodent issues in the house. He had to continuously explain to the person that you need go through the inspection process for those type of things, we need to get an offer in on the house first, before we can actually schedule that type of inspection. That was a difficult client that he had worked with, to try to get them to understand, you can't just expect the sellers to let you come in and do an inspection without writing an offer first.

Dave Burnett:                    Go look at their house for mice.

Thom Dallman:                  Exactly, exactly.

Dave Burnett:                    Oh my goodness. Yeah, I got bad news for that guy too, most houses have mice. I mean most do. Most houses have spiders, snakes on the property, and ...

Thom Dallman:                  Some kind of something. Yep, I personally have had Gemtech come out this week to spray for, we have a little mouse in our garage that we discovered.

Dave Burnett:                    They come in and out with the weather, that's the bottom line there.

Thom Dallman:                  Yep, exactly. Well, especially here in the Treasure Valley, with this crazy winter that we had, and the amount of water and stuff that's up in the hills. It's really pushed a lot of that wildlife down into the valley, so people are experiencing a little bit more than usual.

Dave Burnett:                    We first built our house out in Eagle, we were one of the first in the subdivision, and we had a problem with raccoons.

Thom Dallman:                  Oh my gosh.

Dave Burnett:                    We'd wake up, and there'd be raccoons out on the back porch eating the cat's food.

Thom Dallman:                  Oh my ...

Dave Burnett:                    Having a feast ... Three of them out there, having a feast.

Thom Dallman:                  Oh my goodness.

Dave Burnett:                    There's always something out there for people.

Thom Dallman:                  You just never know what you're going to encounter.

Dave Burnett:                    Yep. This is the Idaho Real Estate Buzz, it is a Saturday afternoon. Thank you for joining us Thom Dallman, and I'm Dave Burnett. We're going to continue on the other side, giving you a little more information that will empower you to buy or sell your home, here on the Idaho Real Estate Buzz, on 580 KIDO, and FM 107.5.


Segment 4


Dave Burnett:                    This is the Idaho Real Estate Buzz. I'm Dave Burnett, along with Thom Dallman. Thom is also the designated broker, co-owner of Core Group Realty. CoreGroupRealty.com is the website. 933-7777 is the phone number.

I think we've talked in the past a little bit about how you got started in the real estate business. You were flipping homes and things.

Thom Dallman:                  Exactly, yeah.

Dave Burnett:                    And wound up getting into the real estate business. But I don't think we talked about the nuts and the bolts if ... Whatever I'm doing right now, if I want to become a real estate agent part-time and full-time, how do I go about that?

Thom Dallman:                  Oh, that's an interesting question, an interesting process too. Just kind of starting from the really beginning, A. I really think that it starts at personal attitude, if that makes sense. Just because you are an independent contractor. You are a business owner when you get into real estate. You're 100% commission, so there's a fallacy out there in the world that real estate agents get paid by their brokers, hourly wages. A lot of buyers think that, so we have to educate buyers all the time that our agents are 100% commission. They don't get a paycheck. They don't feed their family unless they can work with a client to get them under contract and help them sell or buy a house.

Dave Burnett:                    So you've got the broker who owns the agency, Core Group Realty.

Thom Dallman:                  Yeah.

Dave Burnett:                    You are the designated broker.

Thom Dallman:                  Correct.

Dave Burnett:                    Then, you have agents that work in your office but they work with you, not necessarily for you?

Thom Dallman:                  Yes, and no.

Dave Burnett:                    Yeah.

Thom Dallman:                  It depends on the type of brokerage. There's all kinds of different brokerages out there and different ways that they format their business. Some of them are brokerages where you just hang your license and you generate your own business, and you go and you work with clients. Ultimately, you still have to have supervision from a broker. So the broker is responsible for those agents

Dave Burnett:                    It serves you as well to have the benefits of the company.

Thom Dallman:                  Correct.

Dave Burnett:                    Yeah, other than just a desk.

Thom Dallman:                  Exactly, exactly. Whereas there's other brokerages like mine, where we have very specific team members that we generate their business for. So we give them a lot of their business and so there is a little bit more requirements but at the end of the day, they're still independent contractors who manage their own business. And really, that's what I was referencing is kind of that business mentality of understanding that this is your personal business and that you're in charge of it. You're in control of making as much or as little money as possible. You really need that attitude or that sense of pride of your business ownership

Dave Burnett:                    And self-drive.

Thom Dallman:                  And self-drive.

Dave Burnett:                    Yeah.

Thom Dallman:                  Big-time self-drive. You can get all the leads given to you, all the business given to you, but if you don't have that self-drive, you're not going to be successful.

Dave Burnett:                    If you decide you want to stay home and watch "The Price Is Right"…

Thom Dallman:                  Exactly, exactly.

Dave Burnett:                    You're not going to be very successful.

Thom Dallman:                  That's why I have the office because I can't work from home. It gets your distracted. If you have that mentality and that state of mind, the next step is making that conscious decision to jump into schooling.

Schooling runs usually about, depending on which avenue you take, there's day classes that take about two weeks to get through and then there's evening classes. I believe that they take about six weeks to get through that teach you everything that you need to pass the state and federal tests to get your license. So you have to go through school and testing.

Dave Burnett:                    It's basically laws, laws and rules.

Thom Dallman:                  Correct.

Dave Burnett:                    Okay.

Thom Dallman:                  Correct. Laws, rules, they talk about the contracts. A really brief overview of contracts and stuff during those classes.

Dave Burnett:                    They don't teach you how to sell a home though.

Thom Dallman:                  Nope.

Dave Burnett:                    They teach you the nuts and bolts of what to do to ...

Thom Dallman:                  What to expect in real estate and what the rules and regulations are. They don't teach you how to generate leads, how to actually get out there and sell. That's something that you get to learn in the process, after you get licensed.

Dave Burnett:                    Okay.

Thom Dallman:                  Schooling, depending on where you go, runs on average around $500. And then, I usually tell people to anticipate another $1,000 to $1,500 for the licensing fees, for membership dues, for your going through the MLS for your key to get into real estate. Overall, total contributions to get going in real estate runs about 2,500, I'm going to say, being conservative on the upper end so that people save for it. And that time off, that if you have a full-time job that you're dependent on, taking that time off to go through classes or that time to be able to take classes in the evenings and stuff like that. The time commitment that is involved in getting into, then actually getting your license and stuff is a whole other level of finding that right brokerage. Finding that right fit for you, your personality, your culture, your style, and what you're looking for in your business.

Dave Burnett:                    Would you recommend trying to find a brokerage before you get your license or is it something you wait until after, and come in and say, hey Mr. Dallman, I've got my license. I want to work for you.

Thom Dallman:                  Exactly. Well, that once again kind of goes back to your situation, everybody's situation is a little unique and a little different. Some people have jobs that they're working while they're kind of searching and stuff like that. So they have the ability to look a little bit longer and kind of investigate and really dig. Whereas other people, they quit jobs and go and try to get straight into it, so they need to get into someplace a little bit sooner than later so that they can hit the ground running once they get their license activated and start getting into business.

Keeping in mind that the traditional transaction takes about 30 to 45 days once you write a contract to get closed. Traditionally it takes about on average around 30 days to get someone under contract. So once you meet someone, they say that they want to buy a home, you kind of meet with them and go over their expectations and get out and start looking at property. It can take anywhere from a week to four weeks to actually find a property that they want to write an offer on and to get that offer accepted, especially in today's market or there's multiple offers and everything.

Dave Burnett:                    So realistically, the best you can expect is a couple months before you actually get money in the bank.

Thom Dallman:                  Yep. I usually ...

Dave Burnett:                    That's the best you can expect.

Thom Dallman:                  Yeah. Unless you happen to stumble across that cash buyer that's ready to go and can close in two weeks, I usually tell people anticipate at least two months to three months before you get your first closing. So have enough reserves to pay your bills for three months if you're going to jump into real estate full-time and not have any other income coming in. Make sure you have enough reserves for at least three months.

Dave Burnett:                    Correct me if I'm stupid on this or not. If you have a real estate license, you can't just work for yourself. You have to work under a brokerage.

Thom Dallman:                  Your license has to go under a broker.

Dave Burnett:                    Okay.

Thom Dallman:                  Unless you get a broker's license but you can't get a broker's license until you've been in the business for two years.

Dave Burnett:                    Okay. So you can't just go I'm going to go to real estate school and I'm going to sell real estate out of my house and this is going to be great.

Thom Dallman:                  Correct. Nope, you have to hang your license with a brokerage. All real estate agents have to have a responsible broker that supervises them and manages them to make sure that they're doing things correctly.

Dave Burnett:                    Otherwise, it'll be total pandemonium.

Thom Dallman:                  Oh, total craziness.

Dave Burnett:                    Yeah. There's craziness as it is.

Thom Dallman:                  Yeah, right? As the designated broker, I can tell you that there is a bit of craziness out there sometimes and things that we're constantly managing with our agents, and helping them with best practice and stuff like that.

Dave Burnett:                    Now, if somebody is wanting to do this part-time, they still go through the same process.

Thom Dallman:                  The same process, the same thing to do it part-time. Yeah, really the requirements and the payments and stuff like that are all the same. There is no difference between part-time and full-time. It's just a matter of then, after you get your license, how much business can you conduct on a part-time basis? How ready are you to show property if a buyer wants to go look at something immediately, especially once again, in this market, where everything is selling so quickly? The clients can be a little bit demanding, I guess you could say, or they want to go see property when it hits the market and as quick as possible so they can get a contract in if it's the right one.

Dave Burnett:                    So let me ask you this, on the personal side of this.

Thom Dallman:                  Mm-hmm.

Dave Burnett:    You can't expect to have an 8:00 to 5:00, Monday through Friday job in real estate.

Thom Dallman:                  It's tough. It really is tough.

Dave Burnett:                    Because weekends are a big time for people to go look.

Thom Dallman:                  Yeah, weekends, after hours, and stuff like that. That's when you're going out and looking at property, you still have to dedicate that time to that cultivating of leads, cultivating the clients, being able to reach out to people and developing your database and your list of your sphere of influence and stuff like that to build clients. So you still need that time to be able to go get business.

Dave Burnett:                    Yeah.

Thom Dallman:                  To do open houses and to door knock, whatever it is that you need to do.

Dave Burnett:                    And an open house may wipe out your Saturday or Sunday.

Thom Dallman:                  Yeah, exactly.

Dave Burnett:                    So there's some down sides.

Thom Dallman:                  There's ... Yeah, definitely some down sides.

Dave Burnett:                    If you want 8:00 to 5:00, Monday through Friday, then you might want to look for a government job.

Thom Dallman:                  Exactly.

Dave Burnett:                    Now, also your evenings, you might get that random phone call in the evening. Hey, it's Bill. Have you found anything for me yet, or I think I found a property, and then suddenly you're watching American Idol and your evening's been

Thom Dallman:                  Yeah, yeah. As a real estate agent, I listen to my agents talk about their phone calls that they've received 10:30, 11:00 at night over contracts that have come up or contract issues or clients that call at 11:00 at night. I just happened to be looking at ... Oh my gosh, this house is perfect, I have to see it tomorrow morning, first thing, and stuff.

Dave Burnett:                    Oh, good.

Thom Dallman:                  Yeah. So managing that expectation and stuff. I've always been one of those people that just nothing against them, I just don't understand those agents that say I leave a message, I return phone calls between 10:00 and 11:00 in the morning and 1:00 and 4:00 in the afternoon. To me, that just is not a way to service clients and to be there for your clients, so I don't get that mentality but to each their own as their real estate agents. If their clients are okay with that, then that's fine but you really are somewhat at the beck and call of your clients. So you have to be prepared if you have family, they have to be conscious of the fact that you may have to all of a sudden cancel dinner and jump up and go run out the door.

Dave Burnett:                    Now, Thom, we've made it sound very negative. As if it's this all-encompassing keeping you but also with this ...

Thom Dallman:                  Sorry.

Dave Burnett:                    Yeah, I mean we have.

Thom Dallman:                  I just like to be realistic with people because people go in there ...

Dave Burnett:                    But there is also some flexibility.

Thom Dallman:                  Yeah. Oh, there's huge flexibility.

Dave Burnett:                    If you need time off I note here ... Now, if you're taking the time off, you're not selling anything, you have to understand that. But if you need a day off or if you need a certain segment of time during the day off, you can have that.

Thom Dallman:                  The up sides are so much more as far as you said the flexibility and the ability to make your own income and the ability to make whatever amount of money you want to make. I was just having a conversation with an agent earlier this week about taxes. We always advise that you set aside 25%, 30% for taxes each year for the end of the year, when the IRS comes knocking, because people are 1099. We don't take taxes out on your commissions and stuff.

In my early years, when I was first starting out, I didn't necessarily worry about it. Just come December, I would push myself to make sure that I had a couple contracts under contract that were going to close in January and February to make sure that I had sufficient amount of commission coming in to make sure I could pay my taxes.

Dave Burnett:                    But the more successful you are, the more the government likes ya.

Thom Dallman:                  Exactly.

Dave Burnett:                    Simple as that.

Thom Dallman:                  So yeah, there's that concept of I want to upgrade my car. I want to get a new house. You just hit the ground and you make sure you push yourself to prospect and get more closings going so that you can then afford that. The flexibility of being able to make the amount of money you want really is there.

Dave Burnett:                    So in short, you need to be a people person. You need to be self-motivated.

Thom Dallman:                  Correct.

Dave Burnett:                    You need to be self-disciplined.

Thom Dallman:                  Yep.

Dave Burnett:                    And you need to like to work.

Thom Dallman:                  Yep, yep. You need some reserves starting out to make sure that you make it through the first couple months.

Dave Burnett:                    Thom, if somebody's interested in a career in real estate, if they'd like to sit down and counsel and talk with you, how do they get a hold of you?

Thom Dallman:                  Yeah, just go ahead and give me a call here at the office. We also have about us on our About Us page, a little bit about join the team, so it has some information on the website at CoreGroupRealty.com. Otherwise, give us a call at 933-7777, and someone will connect you with me to sit down and meet and talk about it. It's one of my favorite things to do is actually meet with new potential agents and help them understand the process.

Dave Burnett:                    It is a career that you can make as much or as little of as you want.

Thom Dallman:                  Correct.

Dave Burnett:                    It's up to you.

Thom Dallman:                  Yep.

Dave Burnett:                    If it's something you're interested in, give Thom a call, here at Core Group. That's it for another edition of the Idaho Real Estate Buzz. We'll be back again next Saturday at 2:00, here on 580 KIDO and FM 107.5.

Diversified Mortgage

Core Group Realty



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