There were some changes in the real estate market during September. Thom is here to sum up what exactly went on. He is also talking about our latest and greatest listings that have hit the market.
Halloween is right around the corner, we have some great safety tips for you and your pets.
If you have any questions about equity, you will definitely want to tune in!
Dave Burnett: This is the Idaho Real Estate Buzz with Thom Dallman, the co-owner, and of course the designated, one of the designated brokers out there at Core Group at eXp Realty.
Thom Dallman: I'm unfortunately not a designated broker. It's actually considered an associate broker now.
Dave Burnett: An associate broker.
Thom Dallman: Yeah, we have a new designated broker, a gentleman by the name of Bob Bass, in the industry long time, great wealth of knowledge. It's been great getting to know him over the last couple months since we've joined eXp. Really a great character and just, like I said, a wealth of knowledge that we can pull from.
Dave Burnett: That also frees you up as just being one of the brokers there. Would it be the, so you said-
Thom Dallman: Associate broker.
Dave Burnett: Associate broker. But that frees you up more to get out there and get your feet in the trenches.
Thom Dallman: Exactly, yeah, I'm out there taking on listings, and meeting with people, and helping my agents a lot more. I'm a lot more available to be able to do that stuff. It's definitely a great transition.
Dave Burnett: Before we get to the new listings, because I had somebody ask me about this the other day, because they hear the program from time to time. They said, "So, is this kind of a trend going on in real estate, and this kind of a change going, where Core Group teams up with somebody like eXp?"
Thom Dallman: I think so. I think a lot of the independent brokerages get to a certain point where they realize that they cannot provide the ... How do I want to say it ... the infrastructure that they need to really grow. It's very rare for companies to get to be big companies like Keller Williams and stuff like that. I think it's not uncommon for smaller brokerages after a few years for the brokers to realize, "You know, I could just be happier, and be more efficient, and be able to help my agents better by going to one of these bigger brokerages and being a team within the brokerage, instead of having that responsibility weighing down on you for everything that goes on."
Dave Burnett: It is, as you looked, and we've had conversations off the air about this. As you looked and you are looking for somebody that would best benefit your team there at Core.
Thom Dallman: Correct, correct. When I started exploring options and stuff like that, it was really wanting to figure out a company that matched our Core failures. But also that had that commitment to the training, and the education of agents that I've always wanted and always lived with for the last eight and a half years. A lot of my focus was always on training agents, making sure agents had all the tools necessary to be competitive out there, to be the best representative for their clients.
eXp really had a large database and a wealth of knowledge that has accumulated due to their core value of sharing and knowledge sharing and stuff. So, they have built a whole database. It's all cloud based. All their training is cloud based. They've created this great internet database of knowledge that people can go to, find videos, the agents can. All kinds of training, just in depth training on negotiating skills and how to market listings better. Just everything's in there. It's just been a great synergy with our group.
Dave Burnett: Which all comes right back to buying and selling homes, and finding more efficient ways to do it, and finding better ways. We're living in a new age where really technology changes from week to week almost.
Thom Dallman: It's crazy. It's crazy how fast it changes.
Dave Burnett: It is a different world than it was 10 years ago. We get back to this. We get back to new listings and places that Core Group at eXp has listed. You've got quite a jewel that's out in the west end of the valley.
Thom Dallman: The west end of Eagle actually. It's there between Eagle and Star. This house is at 8090 West Moon Valley Road. We're really excited about this listing. It's a beautiful home on 6.23 acres, so a huge acreage property, a lot of land. It has a huge 1,100 square foot shop on it, detached with power. The husband or the wife, if she wants to have a nice big craft shop or whatever, has that ability, can get out there and do their thing.
The house itself is 2,995 square feet, so almost 3,000 square feet. It is going to be listed around that $828,000 price point, so it's one of the higher end homes in the valley. But the 6 acres, just beautifully landscaped. It's got a lot of green grass. It's irrigated. I'm drawing a blank on the word for it. Flood irrigation, that's it. It's got flood irrigation-
Dave Burnett: Well, you're not far from the river.
Thom Dallman: ... available to it. Correct. It's on an artesian well for the house. So you have really great well water. It's beautifully green. But it also features a lake. I mean, who doesn't want their own property with their own little pond? Well, I shouldn't say a lake, it's a pond. That is filled with bass and bluegill fish. We have, of course, out there in nature, you get all kinds of wild birds and stuff that come in. You might lose some fish to the cranes. We were talking about that at break. But it's also got a setup with a horse corral and covered loafing sheds, fully fenced.
House built in '78, four bedroom, four bath, I don't think we talked about that. The master bedroom is on the main level, which a lot of people like the ability to not have to climb stairs when they get a little bit older and stuff.
But it also has, in the northwest corner of the property, a cellphone tower that they receive $700 monthly stipend for having that cellphone tower on there.
Dave Burnett: I was just going to say if there's just some way you could generate some income off that property.
Thom Dallman: There you go, exactly. It's just a beautiful property. Something really worth checking out and seeing for yourself. If you want to give us a call, we have someone standing by that can get you out there and give you a tour of it.
Dave Burnett: Now see, if you live in the south Boise or if you live in east Boise, you may not get out that way. I live out that direction, and Moon Valley Road and all that area out there is just so gorgeous. The river's not far off from right where you're there. Then all the trees that are along there right now, the leaves changing colors.
Thom Dallman: The whole downtown Eagle area is being developed. They've got so many new restaurants going in there. There's some great options for going out for dinner in the evenings and stuff like that.
Dave Burnett: Well, between Eagle and Star, that's one of the hottest areas in the valley.
Thom Dallman: Exactly. Oh yeah, Star is booming, and crazy. Yeah, this is almost right between the two, so go either direction, you'll hit one of them and have lots of options there for all kinds of stuff.
Dave Burnett: Okay, so let me review here. Over 6 acres, you're looking at almost 3,000 square feet. You've got like a ... I don't want to say a tool shed. You've got a shed, an outbuilding-
Thom Dallman: A huge,
Dave Burnett: ... you can build a shop into, acreage for horses, a pond with fish in it. Where do I sign?
Thom Dallman: And don't forget the cell tower.
Dave Burnett: Oh, and the cell tower, $700 bucks a month.
Thom Dallman: $700 bucks a month, yeah.
Dave Burnett: If somebody wants information about that, how do they get a hold of you there at Core Group at eXp?
Thom Dallman: Just give us a call at the 208-933-7777 number, or just go online. You can go to CoreGroupRealty.com. Go to our featured listings page. It should show up there with some of the details. As well as you're able to email us through the site as well to get more information and have someone reach out to you.
Dave Burnett: That is one of the really nice things about the website is to be able to go to get that information, you have a chance to look at it. Because people can intimidate. Like if I'm car shopping, I hate to step on the lot. If I can go and look at the car and look at all that stuff beforehand, it just makes me more comfortable. If you want to go online, you can go to CoreGroupRealty.com and check that out, and check out the house and the listing, and then give a call.
Thom Dallman: You can check out any listings. It'll take you to our search page, which has all the listings from the MLS. You can put in criteria if you want to look at these higher priced homes, see what's out there if you're in the market for that. It's updated every 15 minutes from our local MLS, so it has all the most current information. The homes that get sold or go pending will be removed right away so you're not looking at homes technically that are off the market, which is-
Dave Burnett: Yeah, that's frustrating.
Thom Dallman: ... frustrating and what we hear a lot with people who go to Zillow.com and Realtor.com a lot. They're always calling us, "Hey, we want to see this house." "Well, that sold last week." "Well, Zillow says it's available." Zillow doesn't update very often.
Dave Burnett: You're beating a dead horse. You're not going anywhere with that one. It's a great way to get hold any of the agents. Or if you want to shoot Thom a note, you can do that as well at CoreGroupRealty.com, one of the sponsors of this show along with Eagle Home Mortgage. We get together, in fact we'll be talking to Ron in just a few minutes. Again, talking about who is it that's buying homes right now? We'll talk about that as well. As we continue, it's the Idaho Real Estate Buzz being brought to you by Eagle Home Mortgage and Core Group at eXp Realty. Do this, give a call today, 208-933-7777. That's the phone number for you to call. You can find out why you get more with Core.
Dave Burnett: This is the Idaho Real Estate Buzz with Thom Dallman, the CEO, one of the executive brokers of Core Group at eXp Realty. Thom, another great week out there, as we get ready to talk about real estate and to talk about loans.
Thom Dallman: It's a great, yeah ... Our market continues to be strong, and it continues to be a great market for real estate transactions, whether you're buying or whether you're selling. It's a great point for selling. Obviously, with the prices at all-time highs, it's a great time to get your equity out of your home, for sure.
Dave Burnett: Ron joins us with Eagle Home Mortgage again this week. We've been talking about millennials over the past couple of weeks. and really, I mean, that is where the world is kind of revolving right now. It always has. It's always revolved around that younger generation, though.
Ron Wieczorek: Right. Good morning, guys.
Thom Dallman: Good morning.
Ron Wieczorek: So, wanted to just kind of backtrack a little bit. We covered a lot of ground over the past three weeks. We start talking about ... We always go, in the mortgage industry, back to 2008 in our heads, because we remember the crash. We remember that bubble. And things are starting to appear. Their head's back as far as home values and equity, and some of it's looking similar, some of it's not. I'm here to tell you, it's really, it's apples and oranges. You can't compare the two.
But when we start looking at ... We further that conversation to look at what the debt looks like across the U.S.. Where are people leveraged, similar to 2008, as far as the mortgage and credit cards? But we saw one outlier. We saw an outlier in student loans, as being a culprit of what is weighing down, or at least starting to bubble up on the radar, and it's mostly millennials. And millennials are our biggest purchasers right now. I think 34% of the market is millennials buying, and the millennials who are buying are buying first-time home buyers.
Dave Burnett: Right.
Ron Wieczorek: So they're buying in areas, price points, that are maybe lower than maybe myself, or maybe if you'd wind up buying another home, just because you're at a further place in your life. And so, what I wanted to concentrate is where they're looking, and what they're looking for, and how that looks. Because we've talked about in the past as well, we've talked about how there's a clog in the market. We've talked about inventory with Thom.
Thom Dallman: Mm-hmm (affirmative). But we know inventory is still going on.
Ron Wieczorek: Still going on. Still low, and the reasons for that are a lot of different reasons. Because there's so many people that are not selling their homes. There's an aging population that is staying in their homes, because they're healthier than they were before, so they're taking up some of that inventory. So, it's forcing millennials to be a little more creative, and find places to live that's not building. You know, you get that building part of it, too.
Thom Dallman: Right.
Dave Burnett: Ron, help me paint this picture. So, for those ... If you're thinking of a millennial, this is somebody who was probably a kid in 2008, and watched what their parents maybe went through employment-wise, housing-wise. So, that is this generational group now that is in the buying market.
Ron Wieczorek: Yeah, that's 25 to 34, just to kind of blanket it. It's a good point. In 2008, they watched maybe their parents struggling with the mortgage. Maybe they had a foreclosure. Maybe they had a short sale. Maybe they financially struggled for a little bit. Maybe it was a long bit. So, you get that exposure to that, and then you start being a little gun shy, you know? And they focus more ... When I say "they," millennials focus more on quality of life versus working too hard, or putting 60 hours a week in. And they want to get more out of it, so that leaves them with less money, because they're compensated for that hours they worked, so they have to look at other areas to buy.
So there's already that mind frame of, "Maybe this isn't a great investment. Maybe it is." But then they start matching up what rent looks like, and they're like, "Well, shoot. It's better than renting." So, starting to come around. That's part of the reason why they're a little bit late to the game, is maybe they had that exposure, maybe they have that bad experience. Or maybe they just started their careers later, and now it's time that that makes sense, that they can get into the market. So-
Thom Dallman: Yeah.
Dave Burnett: So, could it perhaps prove the fact that real estate is a good investment? I mean, we heard during the recession, "Gold, gold, silver, silver. No. Invest, invest." And the bottom line, when it comes right down to it, real estate's a pretty good investment to have.
Ron Wieczorek: At the end of the day, it comes back.
Dave Burnett: Yeah.
Thom Dallman: It is.
Ron Wieczorek: What almost was proved by this last stretch was, you know the what goes up, must come down? I look at it the other way. What went down must come back up. Maybe it took 10 years to do it. We're back at those levels now. I think that it's built off. And I've talked about this in the past. Just stronger mortgages. We're qualifying folks differently, and that was one of the benefits that came out of the regulations. So, we're coming out of this a little bit better.
But to your point, it's a great investment. It's where you want to put your money. You don't want to pay your landlord's mortgage, and have him be free and clear of a mortgage, and fund his kid's college. They won't have the student loans, so that'll go. That'll take away part of my problem. But at the end of the day, it's a great investment. It continues to be a great investment, and it's a great place to park your money. And, you know. You want to diversify, right? But mortgages, or I should say real estate, is always a great place to be, in my opinion.
Dave Burnett: Thom, you were recently at a seminar that you went to-
Thom Dallman: Yup, yup.
Dave Burnett: ... and it was talking about millennials. You know, for a while, we thought they were avoiding purchasing. But at this seminar, you were-
Thom Dallman: No, they ... Yeah. The seminar, they talked about they had interviewed 1,000 millennials across the U.S., just to get survey information back, and it was over 90% of the millennials wanted to own homes. Which, not a big surprise. Most people in America want to own a home eventually, at some point in their lives. But the surprising factor was, over 60% ... I think the number was around 68% of the millennials wanted to own a second home, whether that was a vacation home, or whether that was a rental property. So it lent a lot towards that concept, that they're seeing this as an investment. They're seeing it as an opportunity to invest in themselves, and so forth. So, it was a interesting number, to see so many millennials wanting to own a second house, a rental property, or a vacation home, if it is.
Dave Burnett: Ron, at Eagle Home Mortgage, your experience with millennials that you have dealt with personally ... We're not talking surveys, but the ones you've talked to. What are you seeing in a trend, in that generation?
Ron Wieczorek: They're coming around. They're now starting to see what Thom's talking about, a little bit. I'm a little shocked at that number, that so high are on a second home and investment, because it's eye opening to me that this generation is now starting to see the value in real estate as an investment. Which was scaring me, that they weren't, because I think that would have been a misstep, to not look at it as an investment for the future. What I do see, as far as them coming back around ... They look in certain areas. Because I mentioned they have to be creative, and they're drawn to a few things.
One thing they're drawn to is relative affordability. They have to find somewhere that they can buy, that they can afford. They want it to be somewhere near a strong local economy, and they want it to be somewhere near ... I talked about their lifestyle, and more emphasis on the quality of life. They want them to be near cultural amenities. That's big right now, is what cultural amenities are around me? Where can I live, breathe, and do the things I want to do?
That leads me to a study that realtor.com did, and they named the top 10 hottest zip codes that millennials are buying in. This is 34% of the market share that's purchasing homes. They're drawn to these three things that I talked about. Where are they buying? Typically, it fits all that criteria. It's somewhere close to a strong local economy. It's similar to a cultural amenities.
Number six on that list ... While I'm gonna belabor this point ... is 83704. We know that zip code. That's Boise, Idaho.
Dave Burnett: Wow.
Ron Wieczorek: And that's very near ... You know, it's close enough to downtown, but it's far enough that it still has some of that value.
Thom Dallman: Mm-hmm (affirmative). Affordability and everything.
Ron Wieczorek: Other places on that list are Kentwood, Michigan, which is not too far from Grand Rapids, Michigan. Castro Valley, California, which is kind of in ... That's almost the Bay Area, San Jose.
Dave Burnett: But a little bit away.
Ron Wieczorek: A little bit away, right? You're just stretching out a little bit. And I'm not even know if I'm pronouncing this right ... It's Watauga, Texas, which is right on the outskirts of Fort Worth, so that's that Dallas area. So, you see that's where they're flocking to. That's where they're wanting to buy. They get those three rewards that we talked about: The cultural amenities, the strong local economies, and they get that relative affordability, and they're starting to build the bricks to their retirement and/or future, by buying those homes in those areas.
So, we're fortunate to have number six on the list. I think that speaks to what we've talked about before, with how attractive Boise is, even if we see a cooling off in the market, which I think we'll see a cooling off in the market. And when I say "cooling off," it's gone up at a rate that can't be sustained.
Dave Burnett: So, instead of being red hot, on fire, it's just gonna be hot.
Ron Wieczorek: Right. Exactly. And when I say "cooling off," people start backing up, and they're like, "Whoa, what do you mean? Are we gonna bubble? Are we gonna crash?" No, that's not what I'm saying. I'm saying that we're not gonna get 15%, 18% every year. We're gonna get maybe five or six or seven. Great investment, still. Still paying your own mortgage instead of someone else's, but you're not getting to a point where no one can afford a house. As your income grows, it probably doesn't grow 15% every year, unless you're just skyrocketing in an industry where you're fortunate. So if you're in that two to three percent growth of income, like most people are, that five to six is more manageable than what we've seen in the valley.
But, I think it's gonna stay hot. Maybe not red hot, but everything that we have ... And you see downtown Boise growing. People that come here are impressed. My parents are in town right now, and every time they come in town, they look around and they're like, "Man ... "
Thom Dallman: "I could live here."
Ron Wieczorek: "I could live here." But, you know, the secret's out, guys.
Thom Dallman: Yeah. Oh, yeah.
Dave Burnett: There is no secret.
Thom Dallman: There is no secret anymore. I mean, that's why so many people are moving to town, and why we've become one of the fastest-growing cities in the U.S., is because of all the people getting the word that it's a great place to live. So ...
Dave Burnett: Like it or not, that is the reality-
Thom Dallman: Exactly.
Dave Burnett: ... that we live in right now. Which, you know, will add to traffic. It will add to the other things. But it also adds some benefits to the area that we didn't have before.
Ron Wieczorek: It adds a lot of stability. It builds on our local economy. At the same time, the same people complaining that we're getting too big ... We like that. That's part of the reason. That's part of the lure. That's part of the draw of Idaho, is to have that. Maybe be insulated from a lot of things going on. You know, you pick up a paper from Chicago, and some murders don't even make the paper or the front news.
Dave Burnett: Yeah.
Thom Dallman: Oh, yeah.
Ron Wieczorek: We have kids that are stealing Halloween decorations, or making-
Dave Burnett: That is true, and that's a good thing. Tell me, if somebody wants to get a hold of you at Eagle Home Mortgage ... Equal opportunity lender. I need to get that in there for you as well ... How do they get a hold of you?
Ron Wieczorek: You can always reach me on my cell phone, which is 208-869-9154.
Dave Burnett: If you're a millennial, pick it up, give it a call. If you're maybe looking to downsize, maybe you're a retiree ... Ron can help take care of you there, at Eagle Home Mortgage. They are of course an equal opportunity lender, and one of the sponsors of the Idaho Real Estate Buzz, along with the folks at Core Group at eXp Realty. Give them a call today, 208-933-7777. Find out why they say you get more with Core.
Dave Burnett: This is the Idaho Real Estate Buzz with Thom Dallman. He's one of the co-owners, also an associate broker with Core Group at eXp Realty, and I was going say dot com, that's not the website.
Thom Dallman: No.
Dave Burnett: At eXp Realty.
Thom Dallman: At eXp realty.
Dave Burnett: Stop that. I'll get it all down here. There's a few changes in the name, but the company is the same at core group.
Thom Dallman: Same group of people.
Dave Burnett: It is. Good group of people and I like to say ... And I can say this because I'm not part of your company. No pressure, you're not going to be pressured into anything.
Thom Dallman: No, not at all.
Dave Burnett: They want to make sure that you get the home you're looking for. And that you get the deal you're looking for. And there's a reason for that. If you're satisfied, five, six years down the road, you'll be back.
Thom Dallman: Yeah, exactly. We want happy clients that will tell people about us. Referrals are our number one source of business and so we want people who have such a great experience with our agents that they're going to tell everybody and encourage other people to come to us and work with us because that's what ... Everybody's all about the reviews, and all about getting that positive feedback from their family members on who they trusted. And who they had a great experience with. So we're trying to provide those great experiences with all of our transactions.
Dave Burnett: And you can get a hold of the folks at Core Group at eXp Realty by calling 208-933-7777 or go to CoreGroupRealty.com and check them out on the web. You know we were talking during the break about ... We wanted to cover a segment we've never talked about before. And I was scratching my brain here, well maybe it was my head, not my brain. But I don't think we have ever talked about this. Rent to own. You see that once in a while. You'll see, oh this house is rent to own.
Thom Dallman: Yeah.
Dave Burnett: What the heck does that mean?
Thom Dallman: You don't see it very often. That's something that's kind of gone a little bit to the side of the road. What we see more of is the seller financing or owner carriers are what they're called.
Dave Burnett: Right.
Thom Dallman: Rent to own was basically creating a lease with an owner of a property, agreeing to pay X amount of rent for the next couple of years. And then in two years or three years it's in the contract that you're going to purchase that property for X amount of dollars. So the owner still owns the property. The owner is still paying the mortgage on the property. If there's a mortgage.
Dave Burnett: Paying the taxes.
Thom Dallman: Paying the taxes, doing all that stuff. And so you're in essence just renting the property from them. It used to be that you would pay a little extra rent with the agreement that the owner would hold onto that little bit of extra so that that would go towards a down payment by the time the two years came up.
Dave Burnett: And kind of a way of saving up.
Thom Dallman: Correct. Correct. So that kind of fell to the wayside. There's a lot of regulations around a seller being able to provide the down payment and stuff like that. And so that's kind of why that has kind of dis-adhered a little bit.
Dave Burnett: So you don't see it as often as ...
Thom Dallman: Very rarely.
Dave Burnett: At one time we saw it a lot.
Thom Dallman: Yeah, oh yeah it used to be a big thing a while back, but now what we're seeing a lot of is the owner carries. A lot of people calling us saying, hey can you find us someone that can do seller financing, also known as owner carries. And what that is, is the seller actually sells the property to the buyer. But they become the bank. So they actually are the ones that are financing it. They are taking the payments, taking the interest. And accumulating the interest on the property so that they're getting paid for it. They carry that note. So they go onto the deed just like a bank would.
And can go through the foreclosure process with the buyers if they falter on the loan. But the buyers are actually put on the deed and actually own the home. I see a question.
Dave Burnett: Let me ask you this, if somebody is looking for that kind of a deal, I'm looking to buy a house and I'm asking you for what do you have that's owner carried contracts? What's usually my motivation? Is it bad credit?
Thom Dallman: Yeah, the motivation usually is my credit is not good enough right now to purchase a home through traditional financing. So we're looking for a nontraditional financing if you will.
Dave Burnett: Okay.
Thom Dallman: That owner carry, that someone that I can make payments to and still own the house and buy a house that is basically investing in myself.
Dave Burnett: Is there a benefit for me buying that way? What are the benefits for me buying that way?
Thom Dallman: The benefit basically is that you don't have to wait the year or two. We don't know what interest rates are going to do. We don't what property values are going to do. So you're buying a house at the current market value. So if it increases, you get that value. If interest rates go up, you're locked in at an interest rate that is decent. The problem with that usually, one of the cons of this transaction is that typically the owner does not want to carry that forever.
So in two or five years, whatever the term is, they're going to want to see that buyer get financed. And get a loan on the property so that they can get out of the property. So the owner can then, the original owner, the seller can get out of the property and move onto whatever they want and collect all the money. All the equity that they were originally going to get. So you're looking at having to refinance in two to five years. If interest rates dramatically go up in that timeframe then you're in trouble.
Dave Burnett: You're in trouble.
Thom Dallman: You're refinancing. And if you are not diligent about your credit, and you get into this house and you're not doing what you're supposed to be doing and that term comes up and you can't get refinanced, then you're going to be in a little bit of trouble.
Dave Burnett: -
Thom Dallman: Exactly.
Dave Burnett: So I don't want to say it's a bit of a gamble, but it is. You are ... You better be careful on what you're doing.
Thom Dallman: Yeah, there's some like I said pros and cons to the whole thing. There are a lot of miss concepts. A lot of people think that it's just like regular financing. You just have the three and a half down or maybe I don't even have to put down a down payment. The owner will just let me move in and start paying a mortgage payment. But traditionally on an owner carry, the owner is always going to want some kind of a large down payment of some sort.
Dave Burnett: Just like a bank, they want you to have skin in the game.
Thom Dallman: Just like a conventional loan. They want you to have skin in the game. Typically there are realtors involved so they're going to pay realtor commission. So there's got to be a down payment to offset the payment for commissions and stuff. So typically the owner wants that 20% just like a conventional loan. They're going to want at least the 20% down, which a lot of people don't understand that. They think they can just get an owner carry and with nothing down.
And they don't realize that the owner's going to want to do a credit check.
Dave Burnett: Yeah. Oh yeah.
Thom Dallman: They're going to want to look at your history and stuff like that. And I always encourage if an owner is thinking about doing an owner carry, you need to make sure that you have your ducks in a row for being able to do that background check on people because you're inherently selling the property, yes. But you could inherit it right back when you go to foreclose on it.
Dave Burnett: Now let me clarify this too and if it's an owner carried contract, you still go through the title company. You still go through everything that you would, other than if you didn't ...
Thom Dallman: Correct. All the owner carries that we've ever done, we've always encouraged them to still go through the title companies. We even use the title company for long term escrow. So they're the ones that the buyers will make the payments to. And then the title company will calculate interest and all that stuff. And get a payment off to the seller. So let them have that responsibility. Let them figure all that stuff out. Let them do the transaction. I think the title company's a very important part of that process to make sure it's done and they will hep with the foreclosure process if it comes down to having to foreclose at some point and so forth.
So I think it's super important to have a title company involved in making sure that all your paperwork is laid out. And even possibly get an attorney involved. Make sure you have an attorney that's right in double checking the paperwork. Make sure that there's no legal issues on both sides for the buyers and the sellers.
Dave Burnett: It's something that a bank would do. They've got their own staff of lawyers.
Thom Dallman: Yeah.
Dave Burnett: That's something they do. So you basically want to act as the bank would act when it comes to that property.
Thom Dallman: Correct. Correct.
Dave Burnett: Now I guess so if I ... What are the positives? If I own a property, obviously I have to own it outright. I can't have a loan on itself.
Thom Dallman: Yeah, that's one of the myths that I wanted to kind of talk about a little bit is that a lot of people think that you can just do an owner carry on any property. You cannot do an owner carry on a property that already has a loan on it. So if you own a property and you're paying a mortgage payment, typically they have in their mortgage paperwork what's known as a due on sale clause. So if you try to sell the property in an owner carry, that's considered a sale of the property. They want their loan paid off.
Dave Burnett: The balance is due. Yeah.
Thom Dallman: So you can't typically do an owner carry when you have a mortgage on it. So that is one of the big myths because we get these people that are like, I want to do an owner carry on this house. And it's like, you can't just pick a house and say you want to do an owner carry on it. It doesn't quite work like that.
Dave Burnett: The bank is interested in getting their money out of the deal.
Thom Dallman: Exactly.
Dave Burnett: And it needs to be obviously ... And that's where the title company would come in. It needs to be clear and free of any leans or anything else like that.
Thom Dallman: Exactly.
Dave Burnett: Okay.
Thom Dallman: Oh yeah, for sure.
Dave Burnett: And just so you know, I actually have done one of these before.
Thom Dallman: Oh have you?
Dave Burnett: Yes. My father-in-law was retiring and sold his house. And had this big chunk of change. And went, I don't know where to invest it because I'm only going to get 2% interest blah, blah, blah. And so we said, you want to buy our house and sell it to us? And so he did that and carried the contract. We went through the title company. We did everything just like we would a bank. But he got the money for it on the interest. All of those dollars that you see paying to your mortgage company and going, we're only getting $20 a month in principle and all this and whatever. In interest, he was able to collect that. So for him to sell it as an owner carried contract, it was a nice financial viable option for him.
Thom Dallman: That's great, yeah. Yeah. There's great options for it. And one of my agents, she personally has an owner carry that she's carrying right now for one of her properties. Basically a tenant that was living in it really loved the home. She was at a point where it's like, I got to sell this or do something with it. And so he said, well I'd like to buy it, but that whole don't necessarily have the best credit for it. He was a general contractor, so his finances weren't at a point where a bank would lend for him and stuff. And so she did an owner carry and he's been there for I think two years now paying his payment.
Dave Burnett: That's working out well.
Thom Dallman: Yeah, and she's getting the interest on it. So that's one of the pros for a seller to do an owner carry if you own a house outright is that typically you're the one getting the interest instead of paying interest to a bank. You're getting the interest payments on it and it's an investment. It's your investment.
Dave Burnett: As we close out this segment and talking about owner carry contracts, do you have some listings that's available or that you can find that would be owner carry?
Thom Dallman: There are a few that are showing on MLS these days. We don't personally have any listed that are owner carry type.
Dave Burnett: But there are a few out there.
Thom Dallman: But there are a few out there. Very few, it's very rare to find them. But there are a couple out there.
Dave Burnett: Well let's just say this, if you're interested in finding some that are owner carried, give a call to Core 208-933-7777. Their agents will help track those down and see here are your options that are laying out there for you. And get you in there. Or if you're thinking about wanting to explore it and you want more information, Thom and the staff at Core would love to talk to you and be honest with you. Tell you, here's the pluses, here's the minuses. Here's what you're going to go through. And let you know more about owner carried contracts. This is the Idaho Real Estate Buzz being brought to you by the folks at Eagle Home Mortgage and of course Core Group at eXP. Stop by the website www ... Do we say that anymore?
Thom Dallman: I don't think anybody says that anymore. I said that once a couple of weeks ago and someone laughed. They thought it was the funniest thing.
Dave Burnett: CoreGroupRealty.com is the website. 208-933-7777. Find out why they say you get more with Core.
Dave Burnett: This is the Idaho Real Estate Buzz. He is Thom Dallman. He's of course with Core Group at EXP Realty as get ready for that time of year Thom, once a year whether you want it or not, here it comes, trick-or-treating.
Thom Dallman: Trick-or-treating Halloween time. It is one of my favorite time of the year.
Dave Burnett: Is it?
Thom Dallman: I'm not gonna lie. Yes I love Halloween. Halloween has always been a fun tradition of that dressing up and just trick-or-treaters. I love handing out candy to trick-or-treaters and seeing all the fun costumes and the little kids just enjoy it so much.
Dave Burnett: I think Halloween has changed a bit though from at least I know as from when I was a kid and what's happened is we've all grown up, and we just carried the traditions into adulthood. And it's almost more of a celebration for adults than it is kids anymore.
Thom Dallman: It is, oh my gosh, there's so many parties out there I guess you could say. A lot of adults out there enjoying dressing up as well and me included. If you swing by the office on Halloween day, I'll be dressed up somehow.
Dave Burnett: What are you gonna ... any ideas yet?
Thom Dallman: I haven't quite formulated a plan yet, but it'll be something fun for sure.
Dave Burnett: Well it's also that time of year whether you're hosting a party or whether you're just dealing with trick-or-treaters, you have a major obligation and liability with your home and strangers coming onto your property. So as you get ready for Halloween, you need to keep these things in mind.
Thom Dallman: Yeah, home safety is a huge issue around Halloween. It's the perfect opportunity for those rambunctious teenagers that like to pull pranks. We'll just put it that way, to get out there and cause mischief. There are certain things that you kinda want to do to avoid having your house vandalized.
Dave Burnett: Getting TP'd.
Thom Dallman: Exactly, exactly. Make sure that you have your lights on. First and foremost, lots of people are like, "Oh no, but if I turn on lights, the decorations aren't gonna look as good. We want to be able to see the decorations in the dark." But the darkness can lead to not only vandalism, but people tripping and kids hurting themselves.
I passed a house earlier this week that had ropes, tee peeing off of the house next to the sidewalks and all I could think of is, man in the dark and a little kid running down, getting excited and running down the street, easily hit that rope and hurt themselves. Whether trip over it or just get it across their neck or what. Just not the best idea I think for decorating. Looked cool, created a cool effect on their house, but as far as safety for kids, I just, I didn't get it.
Be aware of your decorations, be aware of trip hazards. You know, people are trick-or-treating usually in the dark, walking down dark streets. I'm a jogger, I jog sometimes in the evenings or early morning when the sun hasn't come up so those are trip hazards if they're interfering with the sidewalk as well for joggers out there. So you would hate to have a lawsuit for someone tripping over something, a decoration in your yard.
Dave Burnett: So making sure your house is well lit. Making sure trip hazards are out of the way.
Thom Dallman: And put your animals away.
Dave Burnett: Oh yeah.
Thom Dallman: You know me and my passion for animals and the Idaho Humane Society and everything. Make sure that your animals are put away so that they're not getting stressed out 'cause that constant ringing of the doorbell and stuff. If you have that kind of high anxiety dog, you may not want to hand out candy. You might want to show off your lights and-
Dave Burnett: Well let's be honest. If your dog, not that I'm calling your dog, but the doorbell rings and it opens up and it's all these scary costumes. The dog's going, what is going on?
Thom Dallman: What the heck is going on for sure.
Dave Burnett: It does cause stress.
Thom Dallman: It's always good to maybe get 'em put away from the action, away from where a lot of people are and keep 'em away from the windows. They'll see those people walking down the street, and it could cause them to get anxious as well. Not to mention the fact that your front door's opening and closing, so a lot of dogs go running out, and they get scared, they may run off. You want to make sure that they're not near the front door or if they are, that they're not the type that are gonna bolt.
Dave Burnett: And not to exclude cats, cat safety.
Thom Dallman: Cats as well, yeah cats as well.
Dave Burnett: Keep them put away for the evening in a word.
Thom Dallman: Exactly. I always recommend people make sure if you can, park your car in a garage. This is the time of the year that a lot of vandalism happens to automobiles. Would be interesting to have Ed in from what is he-
Dave Burnett: Oh, the Crime Stoppers.
Thom Dallman: Crime Stoppers yeah. Ed to see what his stats are on Halloween vandalism and stuff like that because people just, teenagers just get rambunctious.
Dave Burnett: For some kids, it's a rite of passage. They go from trick-or-treating to mischief. I don't think there's too many kids out there wanting to really vandalize and do really bad things but there are some that just want to be mischievous.
Thom Dallman: Yeah, for sure, for sure.
Dave Burnett: It's always ... I hate to say it's not a criminal thing, but it's a mischievous thing that can cause your property some damage.
Thom Dallman: Yeah, yeah.
Dave Burnett: As people get ready for parties, if you're hosting parties in your home, any suggestions you might have for hosting Halloween parties that'll help keep the guests happy but safe.
Thom Dallman: No open flames is my biggest thing. It's so easy for people who may have imbibed a little too much to bump into a table or if you have a Jack-O-Lantern with a candle in it, to get a little too close with their costume that might be flammable and stuff, so. My biggest suggestion is always monitor your guests. Make sure they're not overindulging. Make sure that costumes are not the type that will get mixed up in your decorations and pull things off the shelves and hurt people.
Always recommend making sure your sidewalks and driveways are clear as people are coming up them. It's fall, there's leaves on the ground. We've had a wet week this week. So those combination of leaves on your sidewalk as well as the moisture and stuff could cause slip hazards and stuff, so make sure you're cleaning off your driveways and walkways.
But really just I feel like it kinda comes down to a little bit of common sense. Just not put open flames next to flammable items.
Dave Burnett: I think that's a big deal with hay bales and corn stalks.
Thom Dallman: It's so awesome to see that Jack-O-Lantern on top of a hay bale. Put a fake candle in it. They have so many great inexpensive, fake candles that you can put in there that look like the real thing and give that glowing effect without causing a fire hazard.
Dave Burnett: You know we talked about pets and the Humane Society. We have just a couple minutes left here. I want you to be able to give a plug again for the event going on with gathering food for pets.
Thom Dallman: We just went through that this week. So we gathered food all week, and we're actually gathering food all month for the Humane Society. It's our annual pet food drive. This is the second year that we did it. Collecting food for the Humane Society for their pantry. The pantry helps for the homeless, oh not for the homeless, but for less fortunate people who don't have the money to be able to buy food.
Dave Burnett: It kinda goes hand in hand with Meals on Wheels.
Thom Dallman: Yes, and they partner with Meals on Wheels for the elderly and handicapped as well to bring them not only food for themselves but food for their animals. So it's important to help provide to the animals out there in the community. To create less opportunity or need for people to just kind of abandon their animals once they can't afford to feed 'em, they may put 'em out on the street and let them fend for their own.
Dave Burnett: So if somebody has wet food in a can obviously and/or a dried bagged food you'd like to donate, how do they get it to you there at Core Group?
Thom Dallman: Just bring it over to 8665 West Emerald Street, Boise, Idaho. About two blocks west of Boise Town Square Mall. We're collecting 8 to 5 Monday through Friday all month, so the month of October. Just bring it on by and we'll get it over to the Humane Society.
Dave Burnett: Excellent and as always as you get ready for Halloween, make sure you have a plan in mind for your pets as to what you're gonna do with 'em that evening and you know start, four, five o'clock in the afternoon and we'll see. It's on a midweek, it's a Wednesday Halloween this year and sometimes, when it's midweek, it's a little bit quieter than if it's a Friday or a Saturday/Sunday. So that's good news for you as a homeowner. But for your pets, make sure you have a plan for 'em 'cause it does stress them out.
Thom Dallman: Yes.
Dave Burnett: Thom again, appreciate it. And as always, these podcasts are available online at coregrouprealty.com or of course, all the blogs and different information at the website as well.
Thom Dallman: Yep.
Dave Burnett: It's all being brought to you by the folks at Eagle Home Mortgage and of course, Core Group at EXP. Give them a call today, 208-933-7777. Find out why they say, "You get more with Core."
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