Can Crypto Get You Approved for a Mortgage? With Fred Glick of Arrivva

Here’s a glimpse of what you’ll learn: 

• How cryptocurrency could play a role in your next home purchase
• The Fannie Mae 120% rule and why it matters for crypto owners
• Borrowing against crypto—what lenders really look for
• A unique first-lien HELOC that could replace a traditional 30-year fixed-rate loan
• How inspection timing can create leverage for buyers and sellers
• Disclosure rules that could impact negotiations and legal risk
• Hidden costs and conflicts in escrow most buyers don’t see
• Strategies to keep your transaction smooth, transparent, and in your control

In this episode with Fred Glick

Can crypto really be used to buy a home? And what mortgage strategy are most crypto owners completely missing? 

In this episode, Fred Glick of Arrivva breaks down a powerful approach that could change how digital asset holders think about financing. Plus, he reveals a brand-new mortgage product that may surprise even seasoned buyers and stick around because we’re diving into buyer disclosures and why they can make or break your deal.

Resources mentioned in this episode

• Fred Glick on LinkedIn
• Arrivva
• Live Mortgage Rates
• Schedule a Call

EPISODE TRANSCRIPT

[00:00:11] Fred Glick: Get her started.

[00:00:13] Drew Thomas Hendricks: Get her started. This is the most current recording of We Fixed Real Estate.

We have Fred Glick, today we’re gonna have a conversation about crypto and mortgages, a brand new mortgage product that you might be interested in and stick around ’cause we’ll be talking about buyer disclosures.

[00:00:34] Fred Glick: We talk a lot about real estate, but we also do mortgages and I wanted to get into some stuff, explain some things that maybe people don’t know about.

So a whole bunch of you are sitting with Coinbase or a Robinhood account with crypto and this coin and that coin, and we will not go into if it’s real or not. And that’s for you to decide. But if you wanna buy a house and get a normal mortgage, as they would say, you can use your crypto.

[00:01:10] Drew Thomas Hendricks: Yeah.

[00:01:11] Fred Glick: But. Okay. The bank will still do a fund, a trailing of funds. So you need to give them the last two months statements from, let’s say, I’ll just use, let’s use Robinhood as the example. But what you must do for them to count it, for you to actually use is to convert it to cash. It’s gotta be USD.

So the idea is right when you’re, you apply for a mortgage, sell the crypto, put it in your bank and show the transfer, you’ll be able to show the transfer. Let’s say your bank is Chase. So you got two months of Robinhood, you give ’em two months of Chase and they see Robinhood out 10,000. Chase in 10,000 from Robinhood.

So it’s a, every mortgage goes through what’s called an audit trail of all your funds. So, and I’ve said this before, don’t put any large deposits into your bank account that you can’t prove, like pile of cash from your lottery winnings or something or whatever. So it’s very important to document it that way.

[00:02:23] Drew Thomas Hendricks: Check with each lender. Because they can have their little nuances. You can do a margin loan against your crypto, but when you do, again, you have to transfer it to your regular account and have it be USD. But there is the 120% rule that would, that you can use leverage of crypto without having to liquidate it.

[00:02:50] Fred Glick: Yeah. Let me read this right from the guidelines so we get started. If this is the 120% rule, if retirement assets plus stocks, bonds, mutual funds, and crypto equal 120% or more of remaining funds needed to close, no liquidation is required. No proof of liquidation is required. If assets fall below the 120% threshold, funds must be liquidated, deposited into a checking and savings and fully documented.

[00:03:25] Drew Thomas Hendricks: Hmm.

[00:03:25] Fred Glick: Why this matters to buyers because of strong balance sheet gets flexibility. The rewards asset diversification, not just cash heavy bars. It’s a big deal for crypto native clients who don’t want forced liquidation. That’s absolutely necessary because hey, there’s some crypto you don’t wanna sell.

[00:03:45] Drew Thomas Hendricks: Yeah. You only say capital gains on it.

[00:03:48] Fred Glick: That’s the other issue you have with this. So you can do the margin loans. Take that margin money. What you’ve borrowed basically. And transfer that to USD. So they count it. Remember, you have to have that debt counted against you. The margin loan, and there’s all different ways to do that.

I won’t go into those details, but ask your lender if you’re gonna do that. So the bottom line is the easy way. Sell the crypto, put it in the bank. If you have the 120% situation, like I explained, then you don’t have to do the liquidation or, and if you do the margin. Then you obviously don’t have to liquidate, but you still have to have that margin loan counted against you as a loan. And a monthly payment per se. Even though you don’t really have it, you just gotta pay it back, it might get called and whatever happens.

So, but don’t be scared if you have crypto, but talk to the loan officer. Ask them to get the company’s guidelines, copy and pasted and sent to you. ‘Cause the loan officer might miss something or it might be a loan officer who’s great, but just doesn’t understand crypto.

They’ve never had anybody do it, you know? So that’s, that’s what you wanna do. Get a copy of the actual guidelines so you know exactly what you’re doing and do it right.

[00:05:19] Drew Thomas Hendricks: That’s interesting. Yeah. And that’s good for borrowing. Now I don’t know the answer to this, but say you bought Bitcoin back in, you know, 2015 and you now want to just settle the transaction in Bitcoin, would this save you on the capital gains?

[00:05:33] Fred Glick: It’s got nothing to do with the capital gains. What you do with the money has nothing to do with it unless…

[00:05:38] Drew Thomas Hendricks: Unless?

[00:05:38] Fred Glick: Unless you do the margin loan.

[00:05:40] Drew Thomas Hendricks: You’d never sell the Bitcoin, you’re just basically transferring the Bitcoin to settle the transactions.

[00:05:44] Fred Glick: So, so the way the incredibly wealthy don’t have no income on their income taxes ‘ cause they borrow against their assets.

[00:05:55] Drew Thomas Hendricks: Hmm.

[00:05:56] Fred Glick: So if you had a billion dollars cash in the bank and you only needed 200 million to live every year, you give your billion dollars as collateral to the bank and say, I wanna borrow 200 million. And they’ll give to you a prime or prime minus one. ‘Cause you’re a great customer and then they live off of that borrowed money.

This is the same exact thing, but you’re borrowing it and then buying a house with that borrowed money.

[00:06:24] Drew Thomas Hendricks: I see.

[00:06:25] Fred Glick: Okay. So borrowed money is not taxable. Capital gains when you sell, that’s taxable.

[00:06:32] Drew Thomas Hendricks: I see.

[00:06:33] Fred Glick: Right. So that’s how Bezos and everybody else doesn’t pay any income tax. So that’s why California was talking, at least the, one of the unions is trying to push this so that there’s an asset tax.

That’s why one of the owners, one of the original discoverers of Google, Larry Page. He is building a whole bunch of houses in Florida because there’s no state income tax and they’re not gonna have this giant tax against him. He’s prepared just in case his passes. It’s not gonna pass. Things are gonna get modified a little differently, I’m sure, in some way, shape, or form.

But yeah, it’s, we’re not a political podcast, so we’re not gonna get all into it. But just keep an eye on it if you’re a gazillionaire, you know, that’s my, yeah, Larry, keep an eye on it.

[00:07:29] Drew Thomas Hendricks: That’s interesting. So how, what’s your advice though on

[00:07:32] Fred Glick: On to borrow or not to borrow?

[00:07:36] Drew Thomas Hendricks: Do you know of a particular mortgage product or stuff that you can use this with, or is it just something you gotta kind of

[00:07:42] Fred Glick: Oh, you can use it for any product.

[00:07:43] Drew Thomas Hendricks: Oh, you can? Okay.

[00:07:45] Fred Glick: Yeah, yeah, yeah. This is standard guidelines. What I just told you is Fannie Mae guidelines.

[00:07:49] Drew Thomas Hendricks: Oh, okay. Okay.

[00:07:50] Fred Glick: So it’s Fannie, Freddie. There’s a little tweak for FHA and not a big deal. VA, you can do it. And the jumbos from the banks, they all have their own rules, but pretty much they’re gonna follow a  Fannie rule on this as long as they can audit funds. It’s, it’s fine.

[00:08:12] Drew Thomas Hendricks: And previously there wasn’t a conduit, there wasn’t a way to show this like chain of transactions. So suddenly there’s just like a hundred thousand shows up in your account and you say, “Well, it’s from a crypto exchange.

They’re like, “Well that doesn’t count.” Is that, is that this?

[00:08:26] Fred Glick: No. I mean, they, they didn’t know what to do with it before.

[00:08:29] Drew Thomas Hendricks: Okay, so this, this kind of finalize or sediments it.

[00:08:33] Fred Glick: Yeah, exactly. So it makes sense what they’re doing. So bottom line is don’t worry about it. That’s good news.

[00:08:40] Drew Thomas Hendricks: That’s great. So you’ve got, you’ve got the funds, you’ve got the lending.

Let’s talk about this new mortgage product.

[00:08:46] Fred Glick: Okay, so what is the opposite of a 30 year fix is a one month adjustable right. What I’m gonna talk about is actually a loan that can change, oh, let me preface, this is one other important thing. You know how we talk about the prime rate has nothing to do with mortgages? Well, it has nothing to do with the 30 year fixed mortgage. The Fed funds rate, which is what the Fed controls. The word Fed funds rate. Okay. Get it? That’s the place and that’s the rate that they charge member banks, which is all of them. Pretty much to borrow money from the Fed that they can reuse.

So if the Fed funds is at three. I don’t know what it is. I’m just making this number up. Let’s say Chase borrows at 3% and they decide their prime rate is five. So if they offer you a loan at five, you get, they make the spread of 2% over the Fed funds rate, which what? What it costs them.

[00:09:52] Drew Thomas Hendricks: Hmm.

[00:09:53] Fred Glick: So that’s the simple arithmetic of this. Now if you do a vanilla 30 year fix, you’re gonna get, I don’t know, 5.875, no points. APR 5.902, I don’t know, making these numbers up, but,

[00:10:08] Drew Thomas Hendricks: But you can find them live online at Arrivva.com.

[00:10:12] Fred Glick: Arrivva.com/rates. Yeah, exactly. Based on your scenario and you can get updates anytime.

So you will have a rate that is fixed with a 30 year amortization. So you’re gonna be paying principal back, very small amounts in the beginning, ’cause you’re paying back interest based on the amount that you actually owe. So that’s always gonna be higher. It’s simple arithmetic. But the flip side of that is there’s a new loan that’s coming out. Or it’s out. If you’re putting 25% down, you have a 680 credit score, you’re buying a primary residence, a second home, an investment property, you can use it for a purchase, a rate, and term refi, cash out refi. They will do loan amounts up to $3 million with a debt-to-income ratio up to 50%. So that’s higher than the alleged 43% that Fannie Mae has. But really, Fannie Mae does higher than that.

They just don’t tell anybody. You can document your income of full doc, you know, pay stubs, W-2s, 12 or 24 months bank statements. 1099 income is allowed. Asset depletion income is permitted, which means you’re, you have like a retirement fund that you’re taking down every month that they can prove and they use that as income.

So it is a 30 year variable term. Meaning, every time the Fed funds rate changes and the prime rate changes, you’re gonna go up or down. For the first three years, you can draw on the money. What does that mean? Say you did this as a refinancing. You got a million-dollar house, you got a 750 mortgage, you got a, you got a 750 line of credit is what it is, but you only take 200,000 of that to use.

This is great for somebody, you know, with tons of equity that just wants to like redo their house and they do a little bit at a time. So they’re only paying interest on the outstanding principal balance. But you’re only allowed to do that for three years, and then you have to pay it off in 27 years, whatever’s left.

That’s a 27-year amortization. There is no prepayment penalties on this loan. So the idea is if rates are on their way down, which it sorta kind of looks like, I mean, it’s not as clear as a bell as as it was. Actually listened to chairman Powell yesterday. He was, the guy’s so good. He’s just so good. Anyway, so if you think it’s going down, this allows you to make payments based on interest-only payments, so you’re not paying any principle back. The rates, they’re kind of all over the place, depending on the loan to value the credit score. You know it’s prime plus something. Prime plus one, prime, plus two, whatever, whatever that comes out to be.

But even if it’s a little higher rate than what the 30 year is, you’re paying only the interest, which is usually tax deductible. So the idea is with no prepayment penalty on this and three years to draw the money, and if it can do it for a sale, you obviously you’re gonna take all of it.

[00:13:39] Drew Thomas Hendricks: Mm-hmm.

[00:13:40] Fred Glick: At the end of when the rates are coming down and you think they’re gonna go back up, that’s when you refinance.

[00:13:47] Drew Thomas Hendricks: Ah.

[00:13:48] Fred Glick: So you’ve had this low payment of interest only for a while. Or this is good for somebody who thinks they’re gonna, you know, get a really big bonus and pay their, their loan down in a short period of time.

So there’s, investors should love this type of loan, get some cash flow for a few years. You can refinance into the same product and get another three years out of it. So it’s really interesting. It’s not for everybody, obviously, but if you think about it and you’re in that kind of situation, it’s pretty good.

[00:14:28] Drew Thomas Hendricks: Yeah. And given the, given the documentation of what you need, I can see this would be really perfect for like self-employed people.

[00:14:35] Fred Glick: Yeah. You know, you’re gonna, especially if you have lulls in the air, if your busiest season is Christmas and then, you know, the middle of the summer you don’t do anything, you know, this kind of makes your payment a little lower.

You can pay it down. There’s, there’s so many different scenarios that this works for, but the fact is you can do it as a first mortgage. That’s the really interesting part of this. ’cause usually these are, you know, HELOCs, everybody knows the word HELOCs, Home Equity Line of Credit, that’s all this is.

But they’re usually a second mortgage. But this product offers being a first mortgage. It’s really interesting. Yeah, so you can’t go to arrivva.com/rates to find out these rates ’cause it’s not part of the pricing engine. But you can ping us and we can go over your scenario and, and tell you what it is, what the payment would be and all that kind of good stuff.

[00:15:37] Drew Thomas Hendricks: So it’s pretty cool. This almost like a hybrid like mortgage kind of crossing lines between a regular one and a HELOC.

[00:15:43] Fred Glick: No, this is a HELOC.

[00:15:44] Drew Thomas Hendricks: It’s a HELOC, but it’s got some regular mortgage qualities, such as it can be your primary.

[00:15:51] Fred Glick: Yeah, but so can a HELOC, so, okay. Yeah. Don’t, you’re kind of going off the reservation a little bit.

 It’s just the antithesis alternative to a vanilla 30 year fix. And it might work for you. Depends on your situation. Just bring it up because I saw it because it’s a first mortgage product, which I thought was really interesting.

[00:16:14] Drew Thomas Hendricks: Yeah. Are there any greater risks that you see?

From like a standard HELOC?

[00:16:21] Fred Glick: No.

[00:16:21] Drew Thomas Hendricks: It’s just the same.

[00:16:23] Fred Glick: Yeah. And they’re gonna take, you know, all the weird documentation, the 12 or 24 month bank statement. So that kind of stuff is pretty cool. For a product like this.

[00:16:34] Drew Thomas Hendricks: That’s good.

[00:16:35] Fred Glick: And that’s,

[00:16:35] Drew Thomas Hendricks: It feels like it fits your need, your needs. Give Arrivva a call. Talk to Fred. I’ll hope you find the best product.

[00:16:42] Fred Glick: And MLS number 133975.

[00:16:48] Drew Thomas Hendricks: Yes, always check that.

[00:16:51] Fred Glick: California DRE number 01507615.

Let’s shift the topic away from mortgages.

[00:16:57] Drew Thomas Hendricks: Now you’ve got your fully underwritten pre-approval, you’ve got your, a good idea of the type of mortgage you’re looking for. You, you’ve got the chain of custody for crypto, so you’re, you’re all set. Now it’s time to go look and buy and sell a home. Let’s talk about buyer inspections and disclosure duties, specifically to California.

[00:17:15] Fred Glick: Okay. Here’s the deal, kitties. Let’s say you’re buying in Southern California, where they do not do inspections ahead of time. And don’t get me started on that. ‘Cause it’s a second negotiation with a seller because you see the pretty house, it looks nice, then the inspector comes out who gets underneath and finds the ugly.

And so I had a case of that the other day and I’ve had, you know, and this, this comes up every once in a while where we get the report. And we also price out what the repairs are gonna cost and let’s say it’s $150,000 worth of stuff.

And even if we get estimates from contractors or through AI or a combination of the both, all this comes out. So the seller, we send this request to the sellers, you know, lower the price or give us a credit or a combination. And by the way, there’s limits on credits if you’re getting a mortgage.

[00:18:18] Drew Thomas Hendricks: Hmm.

[00:18:18] Fred Glick: The credit can only be for when you’re doing a mortgage up to X percent, and I say X because it depends on your down payment.

If you’re doing conventional loan with up to 9.9% down payment, you’re only allowed 3% of the sale price as a credit. After that, it’s six. At 75% it’s nine. The VA’s 6%, FHA 6%. So everything’s a little different, but it must be no higher than the actual closing costs themselves. So 6% sounds great. Oh, I’ll take a 6% credit.

No, your closing costs ended up being 3.2% of the sale price. That’s all the credit you’re gonna get. So to get the rest of the money, you’re gonna have to lower the sale price, which kind of is not as good, especially if you’re financing 90, 95%, you know, it’s, you’re gonna have to come up with more money.

Because getting the credit is, is dollar for dollar. Lowering the sale price, it’s like your 5% or 10% data is lessening by a little. So that’s the things to watch out for. But anyway, once we send the request for repairs or credits or whatever you send to the seller’s agent, the seller’s agent now has all the documentation and knows about it.

They can’t hide it, which means, and this is the leverage for you to get a seller to do something is, “Look. You now know about all these problems with the house. ‘Cause here’s the inspections. You are obligated now to disclose that to the next buyer.” Let’s talk practical, practical of that in Southern California is they don’t give out inspections or disclosures to anyone until after they sign a contract.

So you’re gonna go, you’re gonna see this pretty house again, and you’re gonna sign the contract. Then you’re gonna get the disclosures in what’s called the SPQ and the TDS, where the seller has to say everything wrong with the property and the area and whatever they know, if they don’t disclose everything that the previous buyer’s inspections pat on them, they’re in violation.

They’re in double secret do-do.

[00:20:53] Drew Thomas Hendricks: What happens when that happens?

[00:20:56] Fred Glick: They can get in trouble with the DRE. They can, if the contract is completed and they find all this stuff out that maybe their inspector didn’t find out, but the seller knew about it, it’s time to call a lawyer.

[00:21:13] Drew Thomas Hendricks: Yeah.

[00:21:13] Fred Glick: And possibly do something. But it, this gets messy and you know, that’s why we make sure and Southern California property owners, please listen. We order and pay for all the inspections when we list your property so you know what’s wrong. No one else is going to do another inspection. You can fully disclose it, and then you only negotiate once.

Maybe you adjust your price right away and you attract more buyers because of it. You’re giving them transparency. You know.

[00:21:47] Drew Thomas Hendricks: The impact’s gonna happen anyways.

[00:21:49] Fred Glick: Exactly. So what’s the point of hiding it for a while? Keeping them in ’cause they’re emotionally tied to a property? That’s bunk. You know, people are not that.

“Oh, I’ll just take it. I don’t care what’s wrong with it,” you know, it just doesn’t happen. So this is what happens in Southern California. Add to that, the escrow companies who are charging outrageous fees and coming up with their own. I had one escrow company that decided to do a contract change and have the buyer and seller sign it without me even knowing about it.

This is an old school thing with these escrow companies. They think they’re in charge of the transaction, you know, once it gets to them. But they’re not. The Department of Real Estate says buyer has an agent, seller has an agent, they prepare the documents, they get ’em signed, they get ’em approved.

I never have this problem in Northern California. The the title companies who do the escrows for us charge less, don’t get involved in the transaction like this. And we’re doing what we’re supposed to do.

[00:22:58] Drew Thomas Hendricks: Hmm.

[00:22:58] Fred Glick: We don’t need their help, but they get all flustered and pissed off if I point that out to them. It’s, you know, I had another one that said, “If you don’t close, there’s gonna be a per diem.” That’s not in our contract, so why would I

[00:23:16] Drew Thomas Hendricks:  Per diem for what?

[00:23:17] Fred Glick: If for if you’re late on the contract. That’s not in the contract between buyers. The escrow company put that in. It’s like, “What? What are you talking about. So.

[00:23:29] Drew Thomas Hendricks: Yeah, it’s unrelated, I have to say. When you said old school, I immediately thought of every escrow company’s logo. They, they all look like their 1890-

[00:23:37] Fred Glick: Oh. And they all put like artwork, you know, a gif in there, their name and their logo and their phone numbers, and their email addresses and their websites, which aren’t linkable because it’s in a picture.

[00:23:49] Drew Thomas Hendricks: And then some, then after like three exchanges, they’ve got 25 logos.

[00:23:54] Fred Glick: Uhhuh. It’s like, that’s not gonna get you any more business. Just put in a regular signature

[00:24:00] Drew Thomas Hendricks: Uhhuh.

[00:24:01] Fred Glick: Okay. Just type it in like everybody else does. I mean.

[00:24:05] Drew Thomas Hendricks: We digress. We digress.

[00:24:07] Fred Glick: We digress. Exactly.

[00:24:09] Drew Thomas Hendricks: So on the, I have a question.

So on the seller, you’re selling your home. You do the disclosures before it goes to market. Well, it comes back with some pretty interesting stuff. Can the seller remedy that situation and add it to this?

[00:24:23] Fred Glick: Absolutely. I’ve had sellers, once we did the inspection, they literally went through everything, did absolutely everything.

So we mark up the inspection report, completed, completed, completed. We put that in the SPQ, TDS, whatever was done, that we had this problem, but we repaired it. Here’s a copy of the bill. You know, the more you do as a seller and the more, let me say more devoted you are to making sure everything is right, the more money you’re gonna get for your property, period. Period. Because hey, buyer doesn’t have to worry. Same thing when you’re submitting an offer in reverse, you know, you waive the inspections, you waive the mortgage, you waive the appraisal, you close in 15 days, the seller doesn’t have to worry, everything’s done. Here it’s the flip side. The buyer doesn’t have to worry ’cause everything’s done. Everything’s repaired. It’s a beautiful thing, but.

[00:25:23] Drew Thomas Hendricks: And you can just make notes. You don’t have to get like a second inspection and add that too.

[00:25:27] Fred Glick: No. I mean, if you want, you can have the inspector come back and say, “Yes, it’s clear.”

[00:25:31] Drew Thomas Hendricks: Oh, okay.

[00:25:33] Fred Glick: Yeah. Not a big deal. They’ll charge a few bucks to do it, but it’s worth it.

[00:25:37] Drew Thomas Hendricks: Yeah. Full transparency.

[00:25:41] Fred Glick: Yeah. And a buyer can still get an inspection if they want. If they negotiate that with the seller. Then it’s probably not gonna find anything else. But you never know.

[00:25:51] Drew Thomas Hendricks: It’s just setting the sale up for success.

[00:25:54] Fred Glick: Exactly. You You know, you have to wanna sleep at night with these transactions and not have this goofy stuff hanging out there. But between the doing the inspections and disclosures and everything after you sign a contract and the price of the escrow companies that, the listing agents aren’t looking out for your best interest of finding, you know, the least expensive and high quality escrow company.

They’re just like the last deal I had, “Oh, I’ve been using  Susie for 30 years.” That doesn’t make her qualified. Of course, once we got under contract, we had a problem with Susie. ‘Cause they’re doing it the old way. But when the seller is paying for the title in escrow, I can only fight so much to get it to the regular title companies with escrow, showing them the amount I, I say to the agents, “Look at how much money the seller could save. You’ll look like a hero.” But no, they still do it.

[00:27:02] Drew Thomas Hendricks: Hmm.

[00:27:03] Fred Glick: And they don’t give you the disclosure that the, let’s say the brokerage has an ownership interest in that title company that they referred you to until after you sign the agreement and then get the disclosures, which I think is a violation of some federal law, but I’m not sure. So don’t quote me on that. But it, it’s just awful.

[00:27:29] Drew Thomas Hendricks: Yeah. And you mentioned it was California. Now, in the other states that you’re licensed in, are in inspections required before the property goes to market?

[00:27:37] Fred Glick: No, it’s, it’s not a requirement by law or anything? No, no, no. But like for marketing the property.

[00:27:42] Drew Thomas Hendricks: Okay.

[00:27:43] Fred Glick: It’s just properly marketing the property.

[00:27:46] Drew Thomas Hendricks: So in Washington is?

[00:27:48] Fred Glick: Okay, well lemme talk about Washington State a little bit ’cause they’re a little weird. Right? In the contract it says that the seller doesn’t wanna see the inspection report, only wants to see what we’re complaining about. Or you can send the full report.

So nobody checks. You can send the full report. If they’re a seller, they’re gonna check. Either don’t send it to me or only send me the little bits. ‘Cause then they only have to disclose the little bits.

[00:28:18] Drew Thomas Hendricks: I see.

See what I mean? Or they don’t have to disclose anything if they don’t see anything. Work out there in, in a closed envelope.

They know it’s been done and the buyer’s agents can see it, but the seller has no idea what the report contains.

[00:28:31] Fred Glick: Right? Nor the, the listing agent or no idea.

[00:28:36] Drew Thomas Hendricks: Yeah, that seems like a step back in transparency.

[00:28:39] Fred Glick: Uh, hello. But nobody at the Washington State Realtor Association is bringing that up to the legislature to change.

So it’s not gonna change anytime soon. And wait. If by accident it says don’t send the report, and we send the report, then the inspection contingency is over. Makes it even more ugly.

[00:29:07] Drew Thomas Hendricks: Oh, wow.

[00:29:08] Fred Glick: Yeah.

[00:29:08] Drew Thomas Hendricks: Now, the other state that you do a lot of business in is in Texas and they’ve got their own laws or rules or regulations.

[00:29:16] Fred Glick: You know, I’m not the broker in Texas, so I don’t even wanna say.

[00:29:19] Drew Thomas Hendricks: Oh, okay.

[00:29:20] Fred Glick: One of these days we’ll get her on and she can explain all the, yeah, get Halle, explain all the weird stuff there though.

[00:29:30] Drew Thomas Hendricks: We had three topics here, and there is a common theme, if you wanna know the secret. They all cover the same thing.

Transparency, flexibility, and documentation. Whether it’s crypto assets, alternative lending products, or disclosure law. The deals that survive are the ones built clean from the start. That’s what I drew from you.

[00:29:52] Fred Glick: Amen. Exactly. Exactly. So we keep saying it like a broken record, but you know, get it done up front, you’ll save yourself a lot of aggravation.

[00:30:06] Drew Thomas Hendricks: Absolutely. Well, this has been another episode of We Fixed Real Estate.as been a special episode of We Fixed Real Estate, the Silicon Valley and Bellevue insanity continues, and I’ll throw a little LA in there too.

So you know, it’s the school district thing and so good luck out there.

[00:22:31] Drew Thomas Hendricks: Good luck, everyone. See you next week.