Real Estate Market Sees Surging Inventory and Intense Buyer Competition With Fred Glick and René Pérez Jr. Of Arrivva

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

• Addressing the hurdles homeowners face in obtaining insurance in high-risk regions like California and Florida due to factors such as hurricanes and flooding
• Insights from open house events and listing strategies
• Analysis of the current real estate market, noting a surge in inventory alongside heightened buyer interest
• Advice on managing assets during the mortgage application process and how to avoid complications
• Analysis of the long-term impact of millennials entering prime home-buying years
• Insight into Arrivva’s approach to the Texas real estate market, focusing on flexibility and transparency with non-exclusive buyer-broker contracts
• Discussion on navigating intense market competition and making offers more appealing

In this episode with Fred Glick and René Pérez Jr.

Join Fred Glick and René Pérez Jr. as they delve into the multifaceted landscape of real estate, tackling pressing issues and unveiling strategies for success. They explore topics ranging from the accessibility of insurance for homeowners in high-risk areas like California and Florida to the competitive dynamics of the real estate market, offering insightful perspectives and actionable advice.

Listen to practical strategies for making offers more attractive in a competitive real estate market. Fred and René provide invaluable insights drawn from their extensive experience as brokers and industry experts. Each topic is approached with seasoned expertise and a commitment to empowering both buyers and sellers in today’s dynamic real estate environment.

EPISODE TRANSCRIPT

[00:00:00] Drew Thomas Hendricks: Ready to run a podcast? What do we got top of mind for us today on this?

[00:00:03] Fred Glick: He’s sporting the black t-shirt look.

[00:00:06] Drew Thomas Hendricks: Yeah, I know, I’ve recorded too many of these. I got, I’m gonna go for the black t-shirt too.

[00:00:11] Fred Glick: Okay, and then all of us. What the hell? Just turn the heat off.

[00:00:14] Drew Thomas Hendricks: Although I won’t look as muscular as René, so.

[00:00:17] Fred Glick: Yeah.

[00:00:18] René Pérez Jr.: The reason for my black t-shirt is because, well, I actually don’t really own any black t-shirts, so this is actually backwards.

[00:00:23] Drew Thomas Hendricks: Oh, okay. No. Okay, now we’re…

[00:00:25] René Pérez Jr.: T-shirt with logo.

[00:00:25] Fred Glick: That’s even better. Okay. . I gotta take this stupid thing off.

Okay. Hey, we might do some Californian Black t-shirts in San Diego, L.A, and San Francisco man.

[00:00:38] René Pérez Jr.: don’t own t-shirts. So, I don’t wanna like change right now for fricking dress shirt.

[00:00:42] Fred Glick: I could show you my closet. I literally have like I don’t know, 30, 40 black t-shirts or something black. That’s all I got. And they’re all hung up.

[00:00:54] Drew Thomas Hendricks: That’s all I got.

[00:00:54] Fred Glick: My antithesis of his wardrobe. It’s good for you kids. I used to be like that. I used to dress in suits and shit. It was fun.

[00:01:04] Drew Thomas Hendricks: You reach a point, Johnny Cash, dressed in black.

[00:01:07] Fred Glick: Gary Player, Johnny Cash. This guy’s got it. He’s got the best fashion sense in the world.

And every woman in New York and Philadelphia. They all wear black. It’s a thing.

[00:01:19] Drew Thomas Hendricks: Oh, yeah. Well, we are on the We Fixed Real Estate podcast, and as you already can tell, we’re all wearing black shirts looking fly. René, how are you doing today?

[00:01:28] René Pérez Jr.: Oh, pretty good. I mean, it’s sunny over here. I’m hearing there’s still rain out there.

And I saw a lot of videos of the flooding that’s still happening down there.

[00:01:37] Fred Glick: It’s ugly.

[00:01:38] Drew Thomas Hendricks: Yeah, Fred, you were on ground zero.

[00:01:40] Fred Glick: Yeah, well, where I live, I’m kind of In between and there’s no way the wind kind of comes through the weather comes on the roof and down on the ground, but there’s no, it goes off into the ocean.

Thank God. Cause I’m right near there. So we don’t have any drainage problems. Everything was fine here, but man, I remember the day before all this stuff started they issued a warning to get out of parts of Topanga. They knew it was going to happen.

[00:02:12] Drew Thomas Hendricks: I saw that. Yeah.

[00:02:14] Fred Glick: Yeah. And obviously it’s close to get the mountains and where you don’t have any, you know, way to stop massive amounts of water. It’s going to destroy things. And I think we’ve all seen the pictures down the L. A. River and out to the ocean and that water just goes away. But, you know, better safe than sorry.

[00:02:33] Drew Thomas Hendricks: We got off relatively okay down in San Diego. I mean, I think the storm is to the most to the north of us.

Yeah, but man, across the West, across the West. That was the biggest topic last week and it’s topic this week. How did that open house go that you guys did on Saturday?

[00:02:48] Fred Glick: Well, wait, before you do that, before we forget about the weather. What’s interesting is the two states that get the most water, I guess, put it the best way as Florida and California.

And in California, we’ve slowly seen some of the insurers. Get out of the state temporarily, at least but Florida literally just shutting it down. Getting insurance there’s just absolutely ridiculous. And it’s mostly because of the hurricanes. And, you know, we got the flooding now and the damage that it causes. So keep an eye California on insurance because that’s probably going to be our next crisis.

So, if there’s any legislators out there who have some answers and can solve the problem before it happens, which is always nice to do, that would be beautiful.

[00:03:36] Drew Thomas Hendricks: I’ve been hearing this quite a bit though about this house insurance and all these people, just the insurance company is just pulling out.

But yeah, on a federal level, it seems like they’ve gotta, somebody’s gotta step in because you gotta have insurance.

[00:03:50] Fred Glick: Well, the states are gonna have to make their own reinsurance type of thing. The insurance of last resort. I think the, that’s the way it’s gonna work. The Feds, it’s too big for the Feds and every state is completely different laws.

It would be impossible. So we’re not going to solve that problem here. Just let everybody know it’s every politician now that it’s election season, let them know it’s going to be a problem.

[00:04:20] René Pérez Jr.: So, I think the solution is simple. I think people should not be forced to have insurance. Simple as that.

[00:04:26] Fred Glick: No, mortgage companies demand it. That’s why.

[00:04:29] René Pérez Jr.: Exactly. For sure. Yeah. Yeah. No, that’s what I’m saying is people shouldn’t,

[00:04:33] Fred Glick: That’ll never happen. The mortgage company is not giving the insurance.

[00:04:36] René Pérez Jr.: I’m sure it’s never going to happen, but you know, if I would, if I were to be asked what the biggest scam in the world is, it’s insured, insurance.

[00:04:44] Fred Glick: Well, I’ll take it one step. I’ll take it one step farther and take it right into our industry. I have very, very, very, very, very, very, very rarely ever seen a claim on a title insurance policy. That being the fact there is this whole thing going around that they’re trying to get approved by Fannie Mae and Freddie Mac to have these attorneys just do title reviews because it’s all electronic now.

So, why do you need this insurance and bring the cost down significantly, especially on a refinance? You own the place. All they do is check to see you still own the place and that you’re the owner’s record and attorney can do that, ends. So, but the title industry is fighting it, of course, because they do more and blah, blah, blah, we’ll see what happens with that.

So I can’t concern myself with it. The title insurance is there now we’ve talked in the past about escrow fees from escrow companies that you don’t know. And so after you sign a contract, you can go back to our podcast there and hear all the, the issues with that. So moving on. And what was your question, Drew?

[00:05:56] Drew Thomas Hendricks: On the last show, we talked about the showing on Saturday.

[00:06:01] Fred Glick: Yeah. Okay. So here’s what happened. I went there on Saturday. The open house is between 12 and I’m sorry, 1 and 3. I got there around 12 and kind of looked around the house. Everything looked fine. Opened all the doors and windows and lights on and whatever I needed to do to get it going in addition, brought an apple pie and threw that in the oven.

People love that, the smells because you don’t have any other smells. Should bring some candles though next time. Anyway, so it was very good. Funny thing was right in front of the house right where you’d walk up in the path was parked a truck that was attached in the back with a smoker, a giant metal.

[00:06:59] Drew Thomas Hendricks: Smell like a barbecue truck?

[00:07:00] Fred Glick: Yeah. Yeah. Barbecue truck. And our owner knew the guy and has been trying to get a hold of him to ask him just to move the truck, but he can’t get a hold of him. So my owner said, you know, this guy is great. He’ll smoke anything for you. You know, he just does it for fun. So I don’t know if your neighborhood has a smoker guy, but they’re usually not too dependable, you know.

So anyway, people got around that. We has about 15 separate parties, you know, one or three or five or whatever viewing it. We had interest. We had some packages that were looked at. And so Sunday I said, no way, no how because the rain started, what about noon ish, I guess. And it just, the wind, I mean, it was just horrible.

And there was an agent who actually scheduled her own showing for four o’clock on that day.

[00:07:58] Drew Thomas Hendricks: Oh, yeah?

[00:07:59] Fred Glick: Yeah. And I’m saying, did you see the weather forecast? She said, well, this is the only time the person could make it. I said, please don’t go. You know, I don’t know if she went or not, or if she’s still alive for that matter.

But I didn’t hear it anymore. I don’t know. Didn’t check on it. Didn’t check on it. So yeah, so Sunday I just said, bag it. You know, it was crazy. We’ve had a couple of showings during the week through agents and we’re going to do two more open houses this weekend and then I’m going to offer a date. Not on Tuesday. I don’t know if you saw this, René.

[00:08:36] René Pérez Jr.: Yeah, know you made it on Valentine’s day.

[00:08:39] Fred Glick: Offers date is going to be Valentine’s day. And we have a new listing coming up in Venice and we’re going to put it on the market on Valentine’s day. It’s just too cute. It’s too like sentimental that remember when we bought that house on

[00:08:57] René Pérez Jr.: Valentine’s Day.

I do wonder if if there’s any MLS rules against like adding like parts and stupid little.

[00:09:07] Fred Glick: Oh, they were the characters won’t work. They’ve stripped them. You can only put in data.

[00:09:12] René Pérez Jr.: No, but I mean, the image, right? Like, you know.

[00:09:15] Fred Glick: No, it won’t accept it. They have got filtered. No, believe me. The fact that you can’t put in paragraphs drives me crazy.

It’s one continuous MLS description, one giant long gated sentences. I mean, my English teacher would cringe.

[00:09:35] Drew Thomas Hendricks: Has to do with the IDX feeds.

[00:09:38] Fred Glick: Yeah, we sure don’t get a start on that.

[00:09:44] René Pérez Jr.: But I think something worth talking about though is like even for our new listing we do have a lot of traffic going into it but you also do see quite a lot of inventory coming out in the market.

People are ready to sell, which means if you’re in the market or if you’ve been in the market to buy in the past year or two it’s time to get your fully underwritten pre-approval up to date because you will and could find a house that you like, but it’s not going to last within a week. I think we’re, we’re getting to the point where the market is as hot as it was back in 2021, which is the height of the real estate market.

[00:10:22] Fred Glick: All right, René, the one we lost with the two different buyers. What was the asking? And what did it sort of kind of go forward where we’re we? So this was in Cupertino. Basically, you know, with stone’s throw away from apple. So it’s serious. Silicon Valley real estate.

[00:10:41] René Pérez Jr.: It’s a nice, I mean, quite beautiful property, right? I’ll list it at 2. 6. Definitely, you know, underpriced, but you know, the comps and the homes in the area, it was looking into the low 3 million. It turns out it received 19 offers and 3. 5 million. No estimate had 3. 5 million in their estimates. Redfin had 3. 3, Zillow had 2. 9, I believe. My estimate was 3. 1.

It’s actually been the house that I’ve been the most wrong in like probably the last year and a half, maybe, which is bad because I’m usually good at knowing what it’s going to go for.

[00:11:27] Fred Glick: Yeah, you are. I mean, what it tells us there’s people with money. There’s people that don’t care.

They want the house. So unless you’re willing to compete against them, you’re never going to get that house.

[00:11:42] René Pérez Jr.: There’s a large infusion of cash from everywhere, right? You have the S&P 500 at all time high. You have people that have been saving for years now to have a better, a bigger down payment. And you have China’s stock market meltdown.

[00:12:01] Fred Glick: Yeah, I have a comment about that because I heard this from a matter of fact, the seller of the guy of the house in Venice, he said, I just didn’t keep up on this, but the Chinese are allowed to take money out and send it to Japan. So what’s happening is tons of money is going into Japan. The Nikkei has gone crazy.

Japan’s having this boom. And yeah, and the other thing is 2008, 2009, 2010, that era, there was, that’s China dominated. They had, those guys were at the checks. They had the money. They were buying our bonds, et cetera, et cetera. But what they did is, they were smart when it crashed here. They bought every piece of amazing real estate they could.

Tons of things in places like Nob Hill in San Francisco. You know, that would go for 15 million. They picked it up for 5 and what they did

[00:12:56] Drew Thomas Hendricks: The Chinese?

[00:12:57] Fred Glick: Yeah. And what they did, they literally shut down the houses, just closed them down. Boom. Now they need the money. So the high end is going to start getting a little bit flooded with things like that.

And they’re basically all over California and Washington, Vancouver. That’s part of the problem. Vancouver was having Chinese investors. Look at that condo building in downtown Los Angeles next to the crypto dot com arena that got all the vandalism. Did you see that?

[00:13:32] Drew Thomas Hendricks: No, I didn’t.

[00:13:33] Fred Glick: Oh, it’s fabulous. These guys figured out a way to get into the building because it wasn’t secure. And literally on every floor they did their signature stuff, a bunch of them. And it was like,

[00:13:46] Drew Thomas Hendricks: Because the condo was empty due to just

[00:13:48] Fred Glick: Totally empty. And they did two towers. It’s fabulous. It’s really fabulous. I don’t know how you Google that, but it was very cool.

And these things were empty because they ran out of money because they were Chinese investors and they just abandoned it. And it doesn’t make sense to buy for some reason for somebody, you know, I don’t know what’s going on.

[00:14:09] René Pérez Jr.: Well, I actually kind of have an argument against that.

So I think that because the market in China is so bad, I mean, people want to, I mean, people want to still sell their assets in China and infuse the money into the U S. So, there are,

[00:14:25] Fred Glick: It’s harder to get it here because they can take it to Japan. It’s easy.

[00:14:29] René Pérez Jr.: Perfect. But I know some people, we know some people here that have a lot of startups that can help you transfer the money from China to the U S. So we talked to us if you need to do that. If you’re a Chinese investor looking to transfer money to the States, contact me.

[00:14:48] Fred Glick: That’s a bold statement, man. I don’t know what part of the Securities and Exchange Commission’s rules and regulations you violated, but I’m sure there was one or two. Sorry guys, we’re just having fun. Only kidding.

Hey, let’s, let me interject something right now when we’re talking about money coming in, I want to talk about when you are going for a mortgage and what they do to look at your assets, if your income is okay, and they’re going to look at the last two months of bank statements where all your money is, and they’re going to say to you, if they see a big number showing up. 50 grand just shows up in your account. Well, where did it come from? You have to do an audit trail. Then if it’s a gift from your parents and it’s coming from Japan, but it’s labeled another thing, and then it’s all in Chinese and Japanese, forget it. Here’s what you do get the money as soon as you can put it in your account or wherever you buy stock doesn’t really matter what you do with it and don’t apply for a mortgage for 3 months just to make sure that money is in the account.

Nobody’s going to ask about because there’s also if you’re going to go on 1 of these income only verification of your bank statements. Sometimes that can raise some red flags too, because they want 12 or 24 months. So just get the money as soon as you can. Don’t wait for it.

[00:16:21] Drew Thomas Hendricks: They’re good advice on the, on the housing inventory coming up totally makes sense with, I had a friend that helped him.

He marketed real U.S real estate to Chinese investors to buy homes here and he had boom times 08 through all the way to about 5 years ago for luxury real estate. So it totally coincides. I should go back to him and he should go hit up all the people that bought those houses. They may sell now. On another thing though, on that I want to talk about, it’s an old topic, but it’s a new topic.

Cause I was watching, you know, watch YouTube on that long one. You have nothing else to watch. And I watched a show about the economy and how we’re even though we may think the S&P is high and we may think real estate’s due to a correction, according to this guy who I was watching, who I don’t remember who he is, some investment banker, was talking about real estate’s going to be increasing up until about 2038 because of the millennials and we’ve been talking about the millennial population being the largest population and affecting all aspects of the economy as they go through an age. And now that millennials, you know, they’re about the youngest ones are about 37 now, I think. They’re now at their prime home buying years and they’ve been waiting and they’re going to for the next 20 years. They’re going to be buying and they’re going to be buying like no one else has been buying as the

[00:17:47] Fred Glick: And they’re going to make more money and their kids, whatever the next generation is called is going to get that money and they’re going to buy pieces of real estate. It’s just a question of where. Real estate is you got to live somewhere.

[00:17:57] Drew Thomas Hendricks: They’ve been waiting for their time though. They’ve been waiting for their time to actually exert their force on investments and really start to make their mark on the world. My question is anecdotally from you guys as you’re buying and selling boots on the ground, are you seeing this?

[00:18:13] Fred Glick: Most of our customers are millennials.

[00:18:17] René Pérez Jr.: Yeah, yeah, no, I mean, most of our customers are, you know, they’re, you know, 35 plus there between 35 to 45, I think, or age range.

[00:18:28] Drew Thomas Hendricks: And are they first time or second time homebuyers?

[00:18:31] Fred Glick: About 50 50, I would say. Somebody already bought a townhouse, now they have two kids, they don’t have room, they need to move.

They keep their houses. Like 99 percent of our customers in Silicon Valley keep their houses. They understand that’s, that’ll pay for college.

[00:18:50] René Pérez Jr.: I mean, what we also see is that, you know, probably 80 percent of our clients also have funds from, you know, you know, just parents who are able to assist them, right? Which is

[00:19:01] Fred Glick: Oh, now a lot of turn too. I mean, I don’t know a percentage that high, a percentage getting it from the parents, but there’s every, there’s a combination of everything. Yeah. So,

[00:19:11] René Pérez Jr.: But I think that the largest like, portion of sellers and buyers was the boomer generation.

Right. I do think that the population wise, it is smaller in the millennial population like it’s a smaller market, right?

[00:19:29] Fred Glick: Yeah. Well, they’re the, there are a lot of the sellers now.

[00:19:33] Drew Thomas Hendricks: Millennials are the buyers.

[00:19:34] Fred Glick: Boomers are the sellers of the big houses, and they’re going to wherever they’re going to either move in with somebody or

[00:19:40] René Pérez Jr.: I think it won’t really matter that much just because a lot of the boomers are downsizing.

Right? Where you see the millennials upgrading. So it’s kind of just, you’re just kind of like a cycle. It’s a shift.

[00:19:52] Fred Glick: That’s all it is.

[00:19:54] Drew Thomas Hendricks: The other part about that cycle was my generation, the X generation, wasn’t really big enough to move anything. So we just kind of slipped through between the two. So anything that we saw over the last 10, 15 years was kind of our slacker years.

We bought houses and stuff, but didn’t really move the market. The millennials will be moving it and the boomers exiting will be moving it. So to those people waiting, you may have to wait quite a while.

[00:20:22] Fred Glick: Yep. Yep. Yep. Yep. So speaking of that, we’re full force going into Texas and Drew, we’ll talk about this after the podcast.

We got all our paperwork straightened away. I got to give the Texas real estate board props. They got our thing turned around in about three days. As opposed to California, I think I sent him a form in 1974 and I’m still waiting for a reply. It’s lovely California. They won’t automate anything because they don’t want to lose union jobs.

[00:20:59] René Pérez Jr.: Yeah. No, a lot of the California forms, you have to go to the office and submit it or mail it.

[00:21:03] Fred Glick: You have to mail it in. Yeah. Yeah. It’s crazy.

[00:21:05] Drew Thomas Hendricks: It’s ridiculous.

[00:21:07] Fred Glick: I know. I don’t even know of one down here. I’m sure there is. I know where the one in Oakland is right off.

[00:21:14] René Pérez Jr.: So there’s one in San Diego, there’s one in Los Angeles. There’s one in Sacramento and one here in Oakland.

[00:21:19] Fred Glick: Yeah. I gotta find the LA one. Well, not that I have anything anyway.

[00:21:25] Drew Thomas Hendricks: Yeah, so we talked about, yeah, Texas.

[00:21:28] Fred Glick: Yeah, we’re going to be playing buyer-broker in Texas. We’re going to have a non-exclusive buyer-broker contract. It’ll the realtors all use the same form, which is a exclusive buyer-broker contract.

So we’re just doing the right thing. If you don’t like working with us, why should we work with you and lock you in? It’s utterly ridiculous. If you don’t like us, we don’t want to, you know, we don’t want to tie you in either.

[00:22:00] Drew Thomas Hendricks: Yeah, last week we talked about this and I was going to bring it up right now.

You mentioned towards the end about that non-exclusive contract. Tell everyone again, in case they didn’t listen last week, about how revolutionary this is.

[00:22:14] Fred Glick: Well, here’s the thing. You find us and we’d like to start every conversation and every relationship with a Google Meet. You tell us everything about what you’re looking for.

We’ll go through the entire process. And so we talk. If we agree that we want to move forward, we open a Slack channel. You know, most of the people I never ever talked to ever again, because we’re in the Slack chat. We’re dealing with it that way. But it may be that you decide for 1 reason or another, you want to work with somebody else and go see, you know, let’s say your cousin gets license and your mom says, you got to use your cousin.

And it’s like, okay, we understand. So you go and use your cousin. Maybe you saw one house with us and we took care of doing an offer or something. So you’re kind of bound to us for that house. Cause we actually did things more than just, you know opened a door. And it’s procuring cause, Google it kids.

But if you go to somebody else, go to somebody else. So that’s, that’s what a non-exclusive contract is. Exclusive says we’re married for a real estate transaction and you can’t get divorced. Let me put it in the worst way possible.

[00:23:30] René Pérez Jr.: Well, I guess Fred, you know, hates marriages. I think marriages.

[00:23:35] Fred Glick: I don’t hate marriage. I’m just saying.

[00:23:36] René Pérez Jr.: Exclusivity. No exclusivity. I don’t think it’s a bad thing unless you can’t cancel it. So my understanding is everything is cancelable, even if it’s exclusive. I mean, if you don’t want to work with us, so I think what I think about exclusive contracts is that the biggest reason why I would like a type of exclusive contract is so that people are on the same page, right?

Like if you don’t want to work with us, It’s, I think it’s, it would be nice to know, like, hey guys, like, I’m no longer working with you guys versus just being ghosted, right? I think.

[00:24:09] Fred Glick: Yeah, but that’s what people do.

[00:24:11] René Pérez Jr.: Well, sure, but just because people do it doesn’t mean it’s right.

[00:24:14] Fred Glick: Oh, I agree. I agree. I agree. So it’s like, let you know what we did wrong or whatever.

[00:24:20] René Pérez Jr.: Yeah, no, I mean, I think exclusive contracts, like you going into a buyer saying, like, I’m here with you. You can only work with me. I think that’s slimy and sneaky, right? But there should, even in non-exclusive contracts, there should be a clause like, “Hey, if you don’t want to work with us anymore, like let us know.” So I think some form of exclusivity there.

[00:24:37] Fred Glick: Yeah. But then it’s not an exclusive contract because it’s easily cancelable. So it’s a non-exclusive contract. I mean, we’re not lawyers, but I mean, that’s

[00:24:44] René Pérez Jr.: Yeah, no, no, no. I’m sure I’m just, you know, just arguing to argue.

[00:24:48] Fred Glick: I mean, sometimes you can agree. It’s okay.

So, but yeah, we’re plugging this into Texas. We got a great broker there. We’re going to you to the Dallas area is really kind of our concentration. There’s a lot of houses there, a lot for sale, a lot of people. So we’re going to start there. Yeah, I know. I’m not a Cowboys fan. Let me declare that right up front. Don’t talk. Let’s not talk football.

[00:25:19] Drew Thomas Hendricks: Edit that part out then. So, yeah, we do have the Super Bowl coming up this weekend. Any prognostications?

[00:25:27] Fred Glick: Oh, God. Well, there’s

[00:25:29] Drew Thomas Hendricks: It’s gonna air afterwards, so whatever you say. Yeah, yeah, yeah. It’s that chance.

[00:25:33] René Pérez Jr.: Yeah. I mean, the biggest betting odds right now, it’s like the biggest kind of so, I guess here’s what happened, right?

Four years ago, what happened, it was during presidential elections, the Super Bowl was also the 49ers against the Chiefs, and Chiefs won.

[00:25:50] Fred Glick: Oh, okay.

[00:25:51] René Pérez Jr.: So whoever wins the Super Bowl is going to define who is going to be president.

[00:25:57] Fred Glick: Oh, God.

[00:25:58] Drew Thomas Hendricks: So if the Chiefs win, Biden’s in office.

[00:26:00] René Pérez Jr.: Yep. If the 49ers win, it’s going to be Trump.

There is a website called electionbettingodds.com and there is. What they do, they just do an average of all the national polling, right?

[00:26:15] Fred Glick: So which, which, by the way, let me explain to the electorate out there that a national polling of national things up or down means absolutely zero.

Tell me what 270 to win dot com. It’s the only thing that matters. Give me the electoral college. Remember that kids. I just want to know, you know, you can have a gazillion, everybody in Kentucky and Montana who wants to vote for him. And then they’re red states and it doesn’t matter, but Arizona goes blue.

Nevada goes blue. New Mexico goes blue, Wisconsin, Michigan elections over. Okay. That’s all that matters. Give me the polls in the swing States. That’s all that matters. Nothing else matters.

[00:27:01] René Pérez Jr.: Okay. Well, I think it, you should look into the actual States because also those swing States are turning red. So just out there.

[00:27:09] Fred Glick: What date is this? February the 8th.

[00:27:12] Drew Thomas Hendricks: February the 8th. A lot of prognostications going on right now. It’ll be fun to revisit back to real estate. What’s the good word?

[00:27:23] René Pérez Jr.: Good word is we are seeing 15 plus offers in all properties.

[00:27:30] Drew Thomas Hendricks: Like that’s incredible.

[00:27:32] René Pérez Jr.: It’s madness.

[00:27:33] Fred Glick: Well, how many were in Porter Ranch?

We just won one in Porter Ranch. We should bring that up. Because there’s

[00:27:38] René Pérez Jr.: So, obviously it’s market to market. So down in SoCal, we had a property in Porter Ranch received four offers. So it’s, you know, in the big scheme of things, it’s not that competitive. The reason we got that though was because of our terms, you know, clean offer. No inspection contingency and

[00:28:00] Fred Glick: That well there’s a little history to that. Yeah. So the same people, their last offer, they lost because somebody waived the contingency and they’re gutting it out. And we worked out a thing with a company called Inspectify that we work with that they can send out an inspector, kind of go with you and kind of walk through the property and just make sure it’s not falling apart because there’s always going to be stuff that needs to be done in an old house.

But this way you can try to go in and waive the inspection because, you know, it’s not, you know, destructed. So it’s risk, it’s total risk. We’re not telling you to do it, but people are doing it and they’re getting that crazed about doing it. Because it’s a way to win because all this is about is the seller being most comfortable.

It’s like highest number and I don’t have to worry about anything. And then we have the nuclear option that I call, which is you, if you’re going to waive everything, the mortgage, the appraisal value, the inspections, you got all the disclosures, everything’s done. What you do is you say to the seller. “Dude, I’ll give the escrow company the money.” Which in California is 3 percent of the sale price, so it’s 30 grand on a million dollars. And if I don’t, and you know what? You can have it right away. After the escrow company gets it, you can release it to the owner. Non refundable. I’m scaring the hell out of a lot of you right now. But think about it. If you don’t show up for closing, they can keep your money. So that’s just what the contract is.

[00:29:40] René Pérez Jr.: So it’s already not refundable. Pretty much.

[00:29:43] Fred Glick: Yeah. Yeah, pretty much. I mean, we actually, René did a great job on one deal where you got the money, part of the money back or all the money back.

[00:29:50] René Pérez Jr.: We got all the money back. Yeah.

You know, sellers aren’t inherently evil, right? So their whole goal is not to keep the 3 percent deposit if something wrong happens. You know, like, “Hey, I got laid off and I can’t buy the house anymore.” Or “The mortgage didn’t go through because I had some funds from family members that didn’t go through.” whatever it may be.

Now, the good thing about such a hot market is that there’s going to be other offers. So a good real estate listing agent will have backup offers, right? So if you can’t get to closing, you know, you know what, fine, whatever I’ll just pick someone else. So keeping the 3 percent is not going to be something that a seller wants in their conscience.

[00:30:31] Fred Glick: Well, here’s something interesting in California, the money goes all to the seller. In Pennsylvania, the money is split between the owner and the real estate broker, and that’s in the listing contracts and everybody normally does 50%. So, you know, the agent wants the money because it’s like, wow, bonus commission.

So, anyway, contact your lawyer before you do anything. That’s all we can say.

Yeah, so it’s crazy market out there and my big word is it’s more than one word, but I got to say it fully underwritten pre-approvals. I can’t say it. I just I can’t stop saying. We get people come in. “Hey, I got a pre-approval with xyz.” And we tell them why it’s worthless. Some of them, most people listen to us, but there’s some are just like, “I don’t know. That sounds weird.”

We do this every day. I write contracts and we waive because we got fully underwritten because here’s the other really important thing. You’re not negotiating with a seller. You think you are and the offer is going to the seller. You’re competing against other buyers. I don’t know how many times I say that, but think about it.

You know, you don’t know who those buyers are. You don’t know what they’ve been through. You don’t know what they’re going to offer. You don’t know their conditions of their mortgage, but most of them are fully underwritten because you just, the agents know that and they tell people to do it. Or most of the agents, but there’s still some that haven’t a clue.

And if your agent doesn’t tell you to get a fully underwritten pre-approval, get another agent. Because they’re, you’re uncompetitive now. You’re, your thing goes right to the bottom. You have zero chance. No matter what price you put on it, because here’s the little thing that the seller thinks. “Oh, you’re going to offer me a million five, but everybody else is offering me a million, but you need a mortgage contingency of 10 days.”

Well, what’s going to happen is it’s never going to appraise and they end up selling it at a million. So it’s just a game to get it under contract sometimes. You know, especially when it’s an outrageous offer with a mortgage contingency or an inspection contingency, you know, they’re trying to get out of the deal.

They’re trying to renegotiate. So good agent will sniff that out. God, it’s talked a long time.

[00:32:54] Drew Thomas Hendricks: Yeah, this has been a very interesting episode. We will check back next week to see how the prognostications are. See where we’re at. Actually, we don’t think we even said who’s going. So we’re all clear.

[00:33:05] Fred Glick: Come on, René. Just make something up.

[00:33:07] Drew Thomas Hendricks: Okay.

[00:33:07] René Pérez Jr.: I live in San Francisco, right? So I have,

[00:33:10] Fred Glick: There you go. Yeah.

[00:33:11] Drew Thomas Hendricks: You kind of have to go to San Francisco.

[00:33:12] Fred Glick: And you’re always arguing with me anyway. So yeah, you have to pick the 49ers. There we go. Arrivva picks everybody to win.

[00:33:21] René Pérez Jr.: Yeah. I hate that. I hate that everybody’s like the golden star. Like, oh, you’re a winner. Ridiculous.

[00:33:27] Fred Glick: Oh yeah, you’re a winner. We, by the way, we have no award ceremonies in our company.

[00:33:33] René Pérez Jr.: No, I should start giving myself award, award ceremony.

[00:33:36] Fred Glick: Oh, yeah, yeah, yeah. You put it on LinkedIn, you know, broker of the year or something. Yeah. It’s like, I hereby acknowledge René is broker of the year.

[00:33:47] René Pérez Jr.: There you have it.

[00:33:48] Fred Glick: Hey, real quick thing, while we’re talking about that, there’s a lot of people who say to us after we have the Google Meet, “Okay, well, you’re gonna assign me to an agent.” And it’s like, “No, dude, you don’t understand you’re getting us.” You’re getting top level brokerage who’ve been doing this for a long time and know the market.

And we deal with everybody. We must have, I don’t know, kind of 10 to 50 active people all the time and control it all in Slack. It’s a beautiful thing and we love it and it works. And the two of us basically have our emails and Slack open 24/7-ish, but I’m up early. He’s up late. But yeah, you get us, we don’t have the outside agents.

In Texas, you will get Hallie because she’s the broker there, but you’ll still get our expertise.

[00:34:38] Drew Thomas Hendricks: Recently rare to have first-hand contact expertise.

[00:34:43] Fred Glick: There you go.

[00:34:46] Drew Thomas Hendricks: Well guys, check back next week. We’ll see how everything happens.

[00:34:50] Fred Glick: There you go.