We are lucky to have Ron Wieczorek from Flagstar bank join us for two segments today! First up, the guys are re-visiting the market crash from 10 years ago and talking about how it still affects us today. After that, they move onto home equity loans and some of the dos and dont’s. Thom and Dave chat about the stresses of simultaneous closings!


Segment 1


Dave Burnett:                    This is the Idaho Real Estate Buzz. He is Thom Dallman, the co-owner and also an associate broker at Core Group Realty at EXP. CoreGroupRealty.com, that's a website you can always go to, and, of course, (208) 933-7777, that would be the phone number for you to call.

Thom Dallman:               Yep.

Dave Burnett:                    As always, get a chance to talk to Ron Wieczorek ... with Flagstar Bank, equal opportunity lender, to talk a little bit about some of the things happening in the lending world. During the break, you were mentioning that we are looking at... Well, we need to look back 10 years.

Ron Wieczorek:                We do have to look back because we're still being haunted by sins of 10 years ago.

Thom Dallman:                  The last crash.

Ron Wieczorek:                When I say we, I was not part of any of the organizations that will be mentioned or were mentioned in any of these slaps on the wrist.

Thom Dallman:                  That's a little disclaimer there.

Ron Wieczorek:                A little disclaimer.

Thom Dallman:                  I was not involved in any of these organizations.

Ron Wieczorek:                I did not inhale.

Dave Burnett:                    But let's do this. Let's refresh people's memories for those maybe that weren't really aware of what was going on back in 2008. We hit a huge slowdown. There were banks and lending corporations that were giving out loans to anyone that had a breath.

Ron Wieczorek:                Yeah. We called them pulse loans. A lot of people called them Ninja loans. No income, no job, no asset loans.

Dave Burnett:                    But that's okay because-

Ron Wieczorek:                Yeah. How could that go wrong?

Dave Burnett:                    Yeah.

Thom Dallman:                  Right?

Ron Wieczorek:                Exactly.

Dave Burnett:                    But it's okay because you said you could afford to pay it.

Thom Dallman:                  Right.

Ron Wieczorek:                I think a part of it was the housing market at that time was going so good up to that run-up that... and you looked at different pockets. You couldn't go wrong by investing in real estate and seeing a huge return within six, 12, eight months. I was living in Florida at the time, and I bought a condo in Palm Coast, Florida. I was living in Jacksonville. It's about 45 minutes south of Jacksonville, and it was a resort area.

Me and a buddy bought a condo that were being built. We bought it purely speculative. We never had to make a mortgage payment. We sold that contract when it... because it was eight months in the making. We agreed on a price. By the time it was getting its finished touches, it was worth 60, 70 grand more.

Thom Dallman:                  Wow.

Dave Burnett:                    Wow.

Ron Wieczorek:                He was like, "You want to sell?" I was like, "I was hoping you'd say that.".

Thom Dallman:                  Right?

Ron Wieczorek:                That was only a couple of years before the crash, and I didn't see a comment. I'm not going to act like I had a crystal ball. I just knew that-

Thom Dallman:                  You had the crystal ball. You had the foresight of like-

Ron Wieczorek:                Yeah, right. I just knew I was single at the time and my beer budget was dwindling, so I had a replenish.

Thom Dallman:                  Yeah.

Dave Burnett:                    But it was one of those things that hit very quickly. We suddenly started hearing news reports that businesses are cutting, banks cutting back, and- The next thing you know, layoffs were taking place. People are doing jingle keys, mailing their keys back to their bank.

Thom Dallman:                  Yeah. It felt like overnight the median home prices just dropped. It was just this dramatic drop in home prices.

Ron Wieczorek:                Yeah, just the bottom completely fell out.

Thom Dallman:                  Yeah. People kept trying to sell their houses and had to follow the market down and could not get their houses sold.

Dave Burnett:                    Which always made me kind of go, "They mentioned it, and within 30 days, it's hit.".

Thom Dallman:                  Yeah.

Ron Wieczorek:                Well, I remember being still on the lending side, and I've been on the lending side for 19 years. They came out with what they called MSAs, and they came out with... I was with a national bank at the time, and they would say, "If you're lending in this area..." I'd never seen this before previous, and I haven't seen it since but, "If you're lending in X area, the maximum loan value," meaning how much equity you can have to buy a house, "has to be X," or, "To refinance a house, it has to be 15%. If you're in this area, it has to be 10, and this area is five. In this area, it's 25." They were really singling out areas that were most affected and saying, "These areas that are losing ground fast, we're not going to lend unless you put this much down in that area.".

Thom Dallman:                  Wow. That's crazy.

Ron Wieczorek:                That was internal.

Thom Dallman:                  Yeah.

Dave Burnett:                    That takes us back to where we were, but we're still living with the demons of the past.

Ron Wieczorek:                Yeah. I'm not picking on anyone. These are just recent articles. We've seen fine after fine, company after company get fined by the CFPB. General Electric just got hit with $1.5 billion for something they did 10 years ago. General Electric was never really into the mortgage lending world. They had a subsidiary called WMC Mortgage. WMC Mortgage were giving out a lot of these loans, and a lot of the loan originators were the licensed employee. We can see sometimes when something is either black or white or gray or even what's beyond gray. They went back to a lot of these files and saw that the loan officers knew things going into it and just said, "Okay. We're okay with that risk."

Dave Burnett:                    "Sign here.".

Ron Wieczorek:                "Sign here." Then the underwriters, of course, at the time were being told, "The market's good. Don't worry about it. Forget what you know. Don't underwrite to the file." It's finally caught up with them. GE never admitted fault, but they cut a check for 1.5 billion, which means-

Dave Burnett:                    Yeah. That's 1.5 billion.

Thom Dallman:                  -it sounded like you said billion.

Ron Wieczorek:                Billion with a B.

Thom Dallman:                  Did he say billion?

Dave Burnett:                    Wow.

Thom Dallman:                  Wow. How do they come up with that amount of money...

Ron Wieczorek:                It's pretty-

Thom Dallman:                  ... to decide that that's what the fine's going to be?

Ron Wieczorek:                They tell us that it's based off the harm that was done or what effect that it had or they contributed to the meltdown, and there's really no way to know that. At the end of the day, I've done enough research and seen enough, and I made this reference earlier, it's based on how big your pocket is. That is solely how they determine what your penalty is.

Thom Dallman:                  Crazy.

Ron Wieczorek:                The same crime, or the same violation, I should say, by three different companies gets, no matter where you are in that, it can be, it could be the first time you did it, the penalty is different for all three. It's based off how deep your pockets are and how big of a fight you're going to put up. if they put that number. 1.5 billion was comfortable enough for GE to cut the check and not fight, which is amazing.

Thom Dallman:                  Wow. Yeah.

Ron Wieczorek:                I referenced it too like if you're driving down the street, and you get pulled over for a speeding ticket, and the cop asked you to see your W2, and that's what your fine was based off of. That's what's going on with this government now that it's government-run and has been government-run, and we've talked about ending that government-run. But as long as that is in place, that's how they dole out the penalties just-

Dave Burnett:                    That's for something 10 years ago.

Ron Wieczorek:                10 years ago.

Thom Dallman:                  Crazy.

Ron Wieczorek:                Well, it's been billed enough.

Dave Burnett:                    Yeah.

Ron Wieczorek:                Right? They've known about this, so I don't know how long they've deferred these penalties or how long they've were dodging it-

Thom Dallman:                  -dodge it? Yeah, right?

Ron Wieczorek:                Yeah, right? They knew something was coming down. They just didn't know to what effect. Morgan Stanley, a couple months ago, 150 million, still from 10 years ago, which for Morgan Stanley, that's not even a blip on the radar to cut that check, and we're talking about 150 million. We're not talking about-

Thom Dallman:                  Did it say what the violations were that these people...

Ron Wieczorek:                Yeah. The GE one was completely for falsifying the ability of the client to repay, putting them in a position that they already knew they couldn't repay based off all the numbers they had, but the market's good enough that this loan will perform, right?

Thom Dallman:                  Yeah.

Ron Wieczorek:                But once the market turns, all that goes out the window.

Thom Dallman:                  -for sure.

Ron Wieczorek:                Everyone's got 20/20 vision when it comes to that.

Thom Dallman:                  Right?

Dave Burnett:                    Let me ask you this question. $1.5 billion, where does that go? Who profits from that?

Thom Dallman:                  Right.

Dave Burnett:                    Where does it go?

Ron Wieczorek:                That's a great question.

Dave Burnett:                    What's it used for?

Ron Wieczorek:                Call up your congressman. Maybe not yours, but it just goes right back into the government, and where that money's going, it...

Thom Dallman:                  That's the big mystery of life.

Ron Wieczorek:                The CFPB is the government entity, so they have to remain with their doors open, but it doesn't take $1.5 billion to run that division. It goes right back into...

Thom Dallman:                  Into the general-

Ron Wieczorek:                ... porky-bellying and misappropriation and spending moneys or maybe trips to Italy for...

Thom Dallman:                  Oh god.

Dave Burnett:                    I'll say this, allegedly.

Ron Wieczorek:                Allegedly.

Thom Dallman:                  Allegedly.

Ron Wieczorek:                Yes.

Thom Dallman:                  Yes.

Ron Wieczorek:                All of that's allegedly.

Thom Dallman:                  Yeah. Wow.

Ron Wieczorek:                I mentioned Wells Fargo-

Thom Dallman:                  It just goes back into the government somewhere.

Ron Wieczorek:                What was that?

Thom Dallman:                  I said it just goes back into the government somewhere and just gets...

Ron Wieczorek:                Just back into the government and that's...

Thom Dallman:                  ... and distributed out somehow and-

Ron Wieczorek:                Yeah. It disappears immediately, and then they're back on the hunt.

Thom Dallman:                  It doesn't go towards paying any deficits or anything like that or-

Ron Wieczorek:                No. It's supposed to go to, well, first of all, to prevent the action again. the penalty has to be big enough.

Dave Burnett:                    Yeah. Punishment.

Ron Wieczorek:                Yeah. Punishment. Then it's supposed to build a reserve fund so if anything ever happens again, this is... or go to the people that were harmed, but the people that were harmed-

Dave Burnett:                    Sure.

Ron Wieczorek:                Yeah, that's not-

Thom Dallman:                  That's not going to happen.

Dave Burnett:                    That's not happening. Wow.

Ron Wieczorek:                I mentioned Wells, and I pick on Wells a lot because they're an easy target when it comes to fines. They're close to 3 billion since the-

Dave Burnett:                    Wow.

Ron Wieczorek:                It's one after another, and I can go all day about the different infractions they've had from... We've all heard them with the car insurance scandal, the opening up false accounts, the mortgage piece.

Dave Burnett:                The bottom line is the penalty is supposed to punish them so that way if it gets tempting to do that again, they go, "No, that cost us $1.5 billion. We can't do that." That's what the purpose of this is, is to keep them from doing it again.

Ron Wieczorek:                Keep from doing it again.

Thom Dallman:                  The-

Ron Wieczorek:                Maybe keep these shoddy loan products out. Thom and I were talking a few weeks ago that we're starting to see these ninja loans come back into the market. It's amazing that we haven't learned our lesson.

Dave Burnett:                    Yeah.

Thom Dallman:                  Wow.

Ron Wieczorek:                My company doesn't offer them, but there are some no income, no asset. I don't think the no job part is there yet, but I could be employed tomorrow. Put my skill set aside. I can create a tax form that says I'm the sole proprietor of anything I want to be the sole proprietor of. Those are coming back.

Thom Dallman:                  Yeah.

Ron Wieczorek:                I will say this. They're asking for healthier down payments than they were in the past. Maybe there's a little more skin in the game, but it doesn't take much for that to go sideways.

Thom Dallman:                  Yeah.

Dave Burnett:                    For me as a consumer, what should I be learning out of this lesson you're teaching?

Ron Wieczorek:                Just be aware that this is kind of happening in the market... It's a very small percentage-

Dave Burnett:                    Because there's nothing-

Ron Wieczorek:                Yeah. It's not like it was before. I don't want to scare anybody.

Thom Dallman:                  Yeah.

Ron Wieczorek:                That's not happening. It's just we see these products peeking their head back in, and different companies, independent companies that pioneer them or-

Thom Dallman:                  I think it goes back to when you get that email or you see the advertisement for, "No money down loan. Contact us," all these internet pop up, stuff like that, just be wary of it. There's always that, "If it's too good to be true, it probably is." Make sure you're researching. Make sure you're looking into those loan products. Make sure you're looking at yourself and saying, "Can I really afford a home at this point in my life?"

Make sure you're really consulting with a good lender that's going to sit down and actually have that consultation with you and have that discussion. I think that's super important because people just get so excited. They get these emails or those ads. "Oh gosh, I don't have to put money down and get this loan. They won't check my credit. They won't check my income."

Ron Wieczorek:                I'd be more wary of being the... you said what to be wary of. These go to private investors. These aren't sold to the government, right? There's a market, Fannie Mae, Freddie Mac, VA, FHA that all are sold or insured by the government. These aren't those loans. These are big pockets that are saying, "This investment, if they put X down can have X amount, and you get this much of a return." But that to me seems pretty risky still.

Dave Burnett:                    Ron, if somebody wants to get a hold of you to talk about lending, to talk about Flagstar, and you'll lay out Flagstar's qualifications, what they do, and how they work, how do they get hold of you?

Ron Wieczorek:                My cell phone's always on me. It's (208) 869-9154.

Dave Burnett:                    Flagstar Bank. Of course, Ron, one of the sponsors of the Idaho Real Estate Buzz along with the folks at Core Group Realty at EXP. Do this. Call today, (208) 933-7777. Find out why they say you get more with Core.




Segment 2


Dave Burnett:                    This is the Idaho Real Estate Buzz. He is Thom Dallman, the co-owner, associate broker at Core Group Realty at EXP, CoreGroupRealty.com, the website. (208) 933-7777, that is the phone number for you to call.

Thom Dallman:                  Yeah, just give us a call anytime.

Dave Burnett:                    You know, one of the things I would like to explore and talk about and is something I've recently gone through, I'll share a little bit, but that is using your property, your investment, as an investment.

Thom Dallman:                  As an investment, yeah. That's what it's there for.

Dave Burnett:                    And there are ways to do that, especially in this day and age where the house you live in is going up in value, you're getting more, I guess-

Thom Dallman:                  You're talking about home equity, yeah. We're talking about home equity and I've asked Ron to actually stick around to help with his insight into some of this home equity stuff. Since there's multiple home equity loans out there, I'm sure that we can talk about different programs and stuff if we wanted to. But yeah, home equity, I mean we've talked about that constantly, that just home equity keeps going up and up and up, as home prices go up and people are tapping into that equity, whether they're selling the house, to take that money and go and invest it into another house, whether they're just taking equity lines out for various reasons. But the whole purpose of purchasing a house is to accumulate that equity and hope that the market continues to go up, and that you continue to be able to collect equity on your house.

There was actually just a recent home price expectation survey that was done for the second quarter of 2019, sent out to 100 economists, financial planners, strategists and stuff like that. Nationwide, they're all predicting that we're going to continue to see a rise in home equity, to the point of a lot of them are saying the average about 16.8% by 2023, is what they're saying. 2023 we'll have 16.8% increase in home prices and have that much equity, those people who are buying currently and stuff. I thought that was an interesting number to throw out there, but even they said that the most reserved people who are like, "probably not," they're even predicting 6.7% increase by then, over the next five years.

Ron Wieczorek:                That's a large number for nationwide.

Thom Dallman:                  Yeah.

Ron Wieczorek:                This is Ron. I'm back. How are you guys?

Dave Burnett:                    Welcome back.

Ron Wieczorek:                That's a large number, 6.7, especially when you talk nationwide. Because we've seen, and Boise was top three over the past year in just areas that have seen appreciation. It depends what month you're looking at, what month. Whether it's May to May, or April to April. Anywhere from 16 to 18 to sometimes now it's down to 14% increase, just because home prices can appreciate at a fast rate, but that much of a fast rate is not sustainable. But 6.7 is, and I can see that happening in Boise still. But to see that kind of number and expectations nationwide-

Thom Dallman:                  ... for five years. In the next five years, I was kind of surprised.

Ron Wieczorek:                Yeah, me too. That surprised me because there's a lot of pockets that aren't consistent with that. You have a lot of the places in the Northeast-

Thom Dallman:                  We talked about that.

Ron Wieczorek:                Or the rust belt that really are seeing an exodus. Not a mass exodus, but an exodus of folks just because that economy has just been gutted, and unless they redefined who they are and how they do business and what they do. I grew up in a heavy manufacturing town, and post-NAFTA, manufacturing doesn't exist anymore to the extent that it did before. That plant is still open. There was a locomotive plant in Erie, Pennsylvania that everybody I knew growing up, their parents worked in, and now it's just a fraction. You see that all across those areas. So my point is, long story short, which I'm not good at-

Thom Dallman:                  Too late.

Ron Wieczorek:                I knew that was coming.

Thom Dallman:                  Just kidding.

Ron Wieczorek:                Long story short is, to see that kind of nationwide, that means other places are bringing those places up. So for every, for every 2.2%, you have someone at 8.2 or 9% because they have to average out. Those numbers have to shake out.

Thom Dallman:                  Exactly.

Dave Burnett:                    So let me share on a personal level and full disclosure, Ron and I talked with Flagstar Bank. We talked about doing a home equity loan and the whole purpose of it. But I'll go ahead and share my life. It's pretty boring. But we took a car payment, we took a RV payment we had, we paid off a credit card that was... I can't remember the interest rate was like 31%.

Ron Wieczorek:                Basically loan consolidation.

Dave Burnett:                    And so we did that and then got enough to redo our backyard. And went in, got a home equity loan, use the equity, which we had plenty of in our house, and the payments were going to be about 450 bucks a month and we're replacing $1,000 a month in payments.

Thom Dallman:                  Yeah, I think that's one of the most efficient ways to utilize your home equity. And this is coming from, let me just put it this way, I have a family member who every two years refinances their house to take money out to fund what's supposed to be a profitable business, but it's more of a hobby if you will.

And so the concern is that yeah, every two years you could probably do that. But once the market evens out or even if we do go down, they're not going to have that ability. They're maxing out their equity in their house as it is to the point where, if something did happen, they wouldn't be able to sell it for potentially-

Dave Burnett:                    They'd get nothing out of it.

Thom Dallman:                  Yeah. So that's what got me going on thinking about, what are the practical uses and best ideas for taking the home equity lines out.

And that would be one of them to refinancing and to consolidate loans into a smaller payment. And I would think that Ron would be able to help you sit down and figure that out.

Ron Wieczorek:                Yeah, Anytime that you can reduce your debt load on a monthly basis and loosen up the belt and take some of that debt that maybe you're not proud of or maybe that life happened and you wanted to get, or maybe you got some entertainment out of it, whether it's like you mentioned an RV and that's going to be with you for a while and then you take that 1,000, $1,100 payment and make it $400, that goes a long way. And that doesn't mean you only have to pay 400 bucks.

Dave Burnett:                    No, we're basically going to keep that $1,000, keep paying their bill, and just pay it towards the second. And there's also the possibility of a tax benefit. Check with your tax accountant on that. But there's that possibility there as well.

Ron Wieczorek:                And it's still mortgage interest so that I believe that still exists for the home equity line. And not only can you pay it off faster, but let's say there's one month where you're just not feeling it. You know, you look at your budget, something happened. You maybe we went to the-

Dave Burnett:                    Car repair-

Ron Wieczorek:                Car repair, right. Something pops out. Or you just wanted to take a trip and you're like, "Let's take a trip. Let's go over the weekend, four day weekend, spend some money and let's just not pay 1,000 towards that home equity line. Because we have the flexibility to do that." And at the same time, you're getting those other benefits. You're getting an effective rate. Well the rates period is lower. And when I talk about effective rate, I'm not talking about the actual rate that you see on your statement. I'm talking about the rate after you get your tax write off and the opportunity cost of the other debt that you're really, it's really a bargain at that point. You're really paying a low amount for that effectively. So I think it's a great idea. Now to fund a business that's maybe not bringing money back to you on a regular basis or has no intention of doing that, I wouldn't do that unless you are just independently wealthy and saying, "You know, even if this goes wrong and I never earn a dime from it, I had fun doing it and that was my hobby," then go for it. If that's what you're doing.

Thom Dallman:                  That's the concern, so.

Ron Wieczorek:                Right.

Thom Dallman:                  And I think that there's people out there that do stuff like that for various reasons. They take equity out for the wrong reasons, if you will. And don't invest it wisely, back into themselves. And so that's what brought me around to this discussion is, what are some of those things that are wise ways of using your equity? Not running off to Vegas, unless like Ron said during the break, you hit that black-

Ron Wieczorek:                Yeah, if you put it all on black and hit black, it's a good idea. If you put it on black and don't hit black, yeah, it was a terrible idea. Even if you do, here's my disclaimer, even if you do hit, it's a terrible idea. I mean there is a lot of risk in that.

Thom Dallman:                  Loan consolidation, home improvement, like you said, you invest some of it into your backyard and... You know the home improvement stuff, if done wisely and done on the right stuff, will just bring that equity right back up. It'll increase the value of your home in the long run, updating it into current technologies, adding the smart technologies that they have nowadays, the nest furnace, thermometers and stuff like that. Thermostats. Those kinds of things will bring the equity back into your house and are great ways of using that equity to-

Dave Burnett:                    Can it be used if I wanted to buy, maybe this is the point I'd want to jump off and get an income property. Get a rental property. Can it be used for that?

Ron Wieczorek:                Yeah, absolutely. You can use it, because your home equity is a secured... That's secured financing. So you're home is secured by a lien, and that home equity is a lien. The no-nos are if you have a $20,000 available balance on a credit card and you're using none of it and you go pull that out, we can't use that. Unless you're paying all cash and you can do whatever you want with it. And that's... I wouldn't recommend that. But pulling equity out of your home to build the empire, then that's very common. And that's... I'd spread that out. If you have $100,000 equity and you're putting 20,000 on one 20,000 on other, you could pretty fast invest in those different avenues that way.

And I think that's wise. And there's always that take a look at your first mortgage to see what you're paying on that to see if the home equity makes sense. If you owe a low balance on your first, and or the rate is really low, you don't want to disrupt that. You're comfortable with that, and it's already working for you. So you don't want to refinance the whole balance into one mortgage. That's where the home equity-

Dave Burnett:                    Which was where I was at.

Ron Wieczorek:                Right. And that's where a lot of people are at. If they financed late 2016 when rates were in the mid threes, there's no reason to get out of that one. So you get the second lien on the property and do those kinds of things. What I've seen the common too, just to piggyback off what you said on wise. One thing that you didn't touch on that I see more in my end that people are starting to talk about, and this is the aging population is starting to talk about this, because we've talked a lot about student loans and we talked about how much now the newer generations are saddled with that student loan and they may never pay it back.

                                                It may take them 30 years, they may never even be able to build their wealth. So what we see some homeowners doing is, again, this is parents sacrificing for their kids, is taking a home equity line of credit out. If they didn't save enough for that college and who really... That number could be almost to infinity, really. You could save $50,000 for kid's college and end up with a bill that's $150,000. So it's even people that have saved. But we've seen some people saying, "Hey, I'm going to shoulder some of this for him or her so they're not just destroyed." Like they're already going into their life, handicapped with this debt. So we've seen some people use that home equities in their home to finance some of their children's student loans and say, "Hey, we'll help you out. We'll pay this back or you can help us with it if you want." Probably not. As a parent, I'm like, "This is a dangerous game here." But I'd probably do it.

Thom Dallman:                  Yeah, for sure.

Dave Burnett:                    When it comes to refinancing and doing that, have you got a quick list of do's or don'ts?

Ron Wieczorek:                Like while you're doing it?

Dave Burnett:                    No, just in general, is there a bad time? Obviously we talked about the bad investment, to take it and run to jackpot. That's a bad idea. But are there some really good ideas and really bad ideas with that reinvestment finance?

Ron Wieczorek:                Yeah, I would say that, first of all, it has to make sense. If you're just going to refinance your first mortgage, and we're talking more about the home equity line of credit. But you always take a look at what you have right now and where your positioned, because everyone's positioned differently, how much they owe compared to what the value of the house is.

The second piece to that for the home equity piece of it, I think there's just a... It's different for everybody, because you may have that play money that you have that you just want to tap into some of the equity and not tap into your savings because the savings is there maybe. And you're just doing it for fun and maybe you're buying that RV or you're buying into your business that you have as a hobby or maybe it's a legitimate business you want to see get off the ground. I'm not one to judge what that looks like for you, but the most common ones, the slam dunk ones are the ones that, I'm paying $20,000 at 24.9% interest rate. I'm paying the minimum payment and that number is growing every month. That's the no-brainers.

The don'ts are running off to Jack Pot. Outside of that, I'll tell you really... I'm not going to... It's hard to tell people who are working their butts off to make a paycheck to say, "You shouldn't take it out to go on this vacation." Or, "You shouldn't do it to..." You know, that's still good.

Dave Burnett:                    Well, I guess the other thing is, as I think about my wife and I discussed, is that you don't pay all these things off and reconsolidate and then go, "Hey, let's go spend more money on stuff that's frivolous."

Ron Wieczorek:                And that's typically the conversation that's had up front is, you're lucky that the market has bounced back enough that you have the equity to do this. It's a second chance. But we're in the United States of America. Try to convince somebody in the United States of America, it's the American way to just kind of go, "Oh, clean slate.".

Dave Burnett:                    Use it wisely grasshopper.

Thom Dallman:                  Exactly.

Dave Burnett:                    Couple of things. Number one, Ron, if somebody wants to find out about getting a second to getting a home equity line of credit, how do they get hold of you?

Ron Wieczorek:                My cell phone's always on me. It's (208) 869-9154.

Dave Burnett:                    And Flagstar Bank, of course an equal opportunity lender. And Ron, if somebody wants to find out what kind of things can you invest in in your house for that, I was thinking for the remodeling to make it worth more, how do they get information from you with the folks there at Core Group Realty?

Ron Wieczorek:                You meant Thom on that.

Dave Burnett:                    Oh did I say... I meant Thom.

Thom Dallman:                  I heard Ron.

Dave Burnett:                    How do they get hold of you if they want to know more about how to invest in their home?

Thom Dallman:                  How many ways can you get a hold of us? So we've got the phone number, the 933-7777 number. You can email us at info@coregrouprealty.com. You can go to our website, CoreGroupRealty.com. There's a contact us form in there that you can fill out and put in a question. As I always say, I love it when people send me questions because it gives me or this radio show to talk about.

Dave Burnett:                    Very good. Of course, Core Group and the folks at Flagstar Bank sponsors of the Idaho Real Estate Buzz. Call today, (208) 933-7777. Find out why they say you get more with Core.




Segment 3


Dave Burnett:                    This is the Idaho Real Estate Buzz. He is Thom Dallman, the co owner, associate broker at Core Group Realty @ eXp. CoreGroupRealty.com, call them today, (208) 933-7777. That is the phone number for you to call.

Thom Dallman:                  Yeah.

Dave Burnett:                    Earlier in the show we were talking about building and buying new. We touched on coordinating closings.

Thom Dallman:                  The dreaded simultaneous close. It's not that ... You don't have to dread it. It's not that bad of a-

Dave Burnett:                    I told you this during the commercial break, if I were doing a for sale by owner and trying to coordinate getting into the new place and out of the old place, it would scare me to death.

Thom Dallman:                  Oh yeah, it can be really ... Even when you have a trusted advisor and a real estate advisor and all the people that are lined up, it can be such a stressful situation because first of all, just going to what does a simultaneous close mean? It means that you're selling a house to buy a house and you have to have the funds from the one to pay for the other. You're trying to simultaneously close those at the same time so that you can fund the new house. That means at a specific time when that house funds and records, you have to hand the keys to the buyers of your house and you have to be out of it because they want to make sure that the house is cleaned and done and everything's out. Then also you're getting the keys to your new house so you can't move. You have to, at that point, be able to get over there and move your stuff in.

Dave Burnett:                    There is this big black hole in my mind to where I'm standing on the curb with all of my belongings, wondering where to go.

Thom Dallman:                  Right, waiting for those keys.

Dave Burnett:                    But there is a method, there is a technique to it.

Thom Dallman:                  Yeah. If you have your trusted real estate advisor, they'll walk you through that process and make sure everything kind of goes somewhat efficiently, and to help you with the things that you have to think about because there's so much activity that's going on at that point because you're shutting off utilities and stuff at one place.

Dave Burnett:                    I didn't even think about that.

Thom Dallman:                  Yeah, you're turning on your utilities and getting everything going at the new place as well. You're trying to coordinate that during the week. You're trying to pack up all your stuff. A lot of people, like my current clients that I'm working with that are doing this, they're moving their appliances, their taking ... Well, not their appliances, sorry, their refrigerator and their washer and dryer. That stuff kind of has to be packed up. They have to have like their food rationed out or figuring out if they're going to go out to eat or what they're going to do for the couple of days that they have all that kind of ready to be packed up and stuff like that. There's all these little things that you have to kind of think about while you're going through this process. Like you said, are you just having everything out on the curb while you're waiting for the keys so that you can get it moved in, or a lot of times-

Dave Burnett:                    Or do you rent a storage unit for a month and take your time to move in and move the stuff in you want?

Thom Dallman:                  Some people have done that. That's one of the options. I've seen people rent those pods where they'll pack the non-essential stuff into the pod so that they can actually pull that pod out, pull stuff out slowly but surely as they're moving in and then just have the bare minimum basic stuff to live on, all ready to go on a moving truck on the day of, or at least loaded into, ready to be loaded into that day. I've had clients who have had everything the night before, everything loaded up, ready to go in a moving track, locked it securely so that nobody could break into it in the middle of the night, and slept on sleeping bags with an empty house. I've had people who, the week prior, they've had everything out of their house. We were able to negotiate with the sellers for them to move the stuff into the garage a week early into the house that they were buying.

Dave Burnett:                    Oh, okay. That's what I was going to ask you. Does that happen or could that be done to where you negotiate that?

Thom Dallman:                  I would say probably maybe 2 out of every 10 times that this has happened, that's been an option. A lot of sellers are very reluctant to let people move their stuff in because the risk of anything happening to that falls on the homeowner.

Dave Burnett:                    They're trying to get their stuff out.

Thom Dallman:                  Yeah, exactly. A lot of times they're getting stuff out. It works on vacant houses sometimes. There's all that little negotiating and stuff like that. I've actually been able to negotiate with buyers to move in a couple of days later so that the sellers have a couple of days. They'll pay maybe a small amount of rent basically to rent the house from the buyers for two days as they're moving their stuff out, but then that falls also a risk for the buyers because what if the sellers nick something? You don't have any negotiation at that point. You want to ask for a deposit. You want to ask for some security to make sure that if something like that happens, you have that money in hand to cover those things.

Dave Burnett:                    Wow.

Thom Dallman:                  There's so many different things that you can think about and we can play with to try and make it happen, but it's not something that you have to be afraid of. It happens all the time. There's things that we can do, especially if you have a really good real estate agent that's experienced at this stuff who can help you walk through that process and make sure everything's efficient, that you have the time and stuff.

Dave Burnett:                    Well, I hear about people doing it, and so it can be done.

Thom Dallman:                  It happens all the time.

Dave Burnett:                    I guess that's where you need to sit down, consult, if you're thinking about it, if it's something that's a possibility. The folks at Core Group Realty @ eXp can help you walk through and say, "Here's what you can expect."

Thom Dallman:                  Exactly.

Dave Burnett:                    Doesn't mean necessarily it will go that way, but here's what you can expect and here are some of the side things that might happen.

Thom Dallman:                  Exactly. There's other things that we need to discuss like pricing your house aggressively so that it does sell on time and that you can get it under contract to close at the same time. This transaction that I'm doing, we listed the house about two months prior to when our closing was due for our new construction. When we got a contract in, we had to negotiate a longer escrow period, a longer time for that contract, because they wanted to close in mid July but the new home wouldn't be ready until August. We renegotiated back and forth to make sure that the contract that came in on their current house was closing on the same time as the new one. There was some negotiating stuff.

Dave Burnett:                    That's where having that trusted agent really helps.

Thom Dallman:                  Exactly.

Dave Burnett:                    To have an expert, I mean that's what you really need when you're doing ... Because again, as we always say, this is probably the biggest financial transaction you will make in your life.

Thom Dallman:                  Exactly.

Dave Burnett:                    Having a trusted advisor through it all is so very important. Thom, how does somebody get hold of you at Core Group Realty @ eXp?

Thom Dallman:                  Oh, let's see. You can give us a call, (208) 933-7777. You can email us info@coregrouprealty.com, or you can just go to our site CoreGroupRealty.com, where we have all the updated information. All these radio segments are on there in the blog section. There's a contact us page where you can just fill out a little form and it'll send it to us and we can get answers to you.

                                                If you're just looking for a valuation on your home, there's a valuation tab there too, so you can get a quick idea of what your home's value is. Multiple ways.

Dave Burnett:                    Now is the time to do it. You've been thinking about it and if you want to get it done before school starts for the kids again, now's the time to get it done. CoreGroupRealty.com is the website, and of course they are the sponsors of the Idaho Real Estate Buzz, along with the folks at Flagstar Bank. Call them today, (208) 933-7777. Find out why they say you get more with Core.


Ron Wieczorek

Flagstar Bank

208 869-9154


Core Group at eXp Realty

208 639-7700



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