The Weakest Link Will Wreck Your Real Estate Deal — Here’s Why With Fred Glick and René Pérez Jr. Of Arrivva

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

• Discover why weak project management can derail your deal
• Learn the hidden dangers of neglected documentation
• Discover essential strategies for leveraging technology to streamline real estate deals
• Find out how overlooked property inspections might uncover costly surprises
• Uncover the challenges of securing condo loans—how rising insurance costs and new laws are complicating financing
• Get the latest insights on market trends, mortgage rates, and how economic shifts could impact your next move
• Know what buyers need to understand about pricing, land value, and zip code demand

In this episode with Fred Glick and René Pérez Jr.

Who—or what—is the weakest link in your real estate deal? 

In this episode of We Fixed Real Estate, Fred Glick and René Pérez Jr. uncover the hidden pitfalls that can derail transactions when you least expect it. Is it a missed document? A bad inspection? A condo with financial red flags? They break down the key risks, challenge common misconceptions, and reveal how the right strategies can keep your deal on track. Before you buy, sell, or sign anything—make sure you know what (or who) could wreck your deal.

Resources mentioned in this episode

• Fred Glick on LinkedIn
• René Pérez Jr. on LinkedIn
• Arrivva
• Slack
• Google Meet
• Armadillo Home Warranties

EPISODE TRANSCRIPT

[00:00:25] Drew Thomas Hendricks: We are on We Fixed Real Estate with Fred and René in honor of March Madness. And we’re talking about project management.

[00:00:33] René Pérez Jr.: Talking about projects, we can only manage a project as much as the weakest link. So, you know, I’ve created PDFs, PowerPoints, lists, bullet point lists where you can click on check marks to give people, you know, the A through Z of what they need throughout a transaction.

And either they don’t read them, or they ignore them or they just forget about it, and that actually always hurts the transaction. Right. So a big part of real estate is kind of getting all the documentation in place knowing the order of things. You don’t want to go finding home insurance on day 15 when you know you’ve already waived all the contingencies.

You want to go look out for home insurance before you even write the contract. So a lot of what we do is, I think the industry sometimes thinks like, “Oh, we don’t need real estate agents because they just open doors.” And yes, a lot of why the industry is so hated is because a lot of people just get their license and they’re just well known for opening doors, and that’s all the value that a lot of people in the industry create. That is not something that’s, you know, trying to make a day at anyone. It’s the reality of it. A lot of agents don’t know what they’re doing, they’ve never done a transaction. But what they can do is open doors.

But a lot of what real estate brokers or people in the industry are, is we actually don’t go to a lot of houses. We are actually on the phone negotiating on your behalf. You know, looking at the data, the background of it, because you know, now there’s, I mean, there’s so easy to look at a property and figure out like, oh, well if you go on Google Earth, you can see that there’s a hill. So guess what? We don’t even need to go to the house.

So you’re saving people’s time as well. And that’s a part of project managing. And so like, how do we, how are we able to do as much without having to spend so much of our time, right?

[00:02:45] Drew Thomas Hendricks: Mm-hmm.

[00:02:46] René Pérez Jr.: Being efficient. Anyway, Fred, what are you?

[00:02:48] Fred Glick: Yeah, project management is time management, that’s for sure. And in case you haven’t gone to René’s LinkedIn, he’s got a degree in project management.

[00:02:58] René Pérez Jr.: So I do have a certification actually really hard to get by the way. You take, I think it’s about 200 hours of education and it’s like a six or eight hour test.

I took it maybe six years ago or so. So it’s given by PMI, Project Management Institute, so it’s a pretty well known certification. So I’m not just some random project manager. I’m an actual certified PM.

[00:03:30] Drew Thomas Hendricks: Certified PM. Wow.

[00:03:31] René Pérez Jr.: Yeah.

[00:03:31] Drew Thomas Hendricks: Well that’s good. And you mentioned, one thing I wanted to dwell on, but concentrate on is you mentioned that the key or the weakness? The biggest weakness in project management is the weakest link. It’s the inability, if there’s one cogs out of order, the whole project is in jeopardy. How do you, as a certified PMI, how do you ensure that the weakest link doesn’t break?

[00:03:54] René Pérez Jr.: I mean, you’ve gotta treat, sometimes we, if we automate everything and we think, “Oh, this is how things should be done.” We kind of loose sense of like, “Hey, there’s different ways of solving things.” So it’s just really getting the person that maybe doesn’t understand the technology. Like, “Hey, why are we using things like Slack?” I’ve got clients who want call me at 7:00 AM and also at 9:00 PM and it’s like that I’m happy to call, answer the phone if it’s, if there’s like a, a roof that is leaking or that we know that the other party is in Japan and they’re going to bed, and then we’re not gonna see them for 12 hours because time does kill deals. Right. But it’s, you know, using a lot of the context of what the situation is to, you know, kind of, kind of train them. So I, I’ve spent, I mean, hours just getting people to get on, on a CRM, on Slack, really, so that we don’t have to always be on the phone, so that we don’t have to be in emails, so that we don’t have to be, you know, losing things. Because I was on a call and with someone else, and Fred could have answered the question, but now because they called me now, the client thinks that I’m not doing my job.

So it, it’s difficult. I mean, it’s, the real estate industry is not a difficult industry once you’re just on top of things. Because half of the time, it’s just being able to respond quickly. It really is. So.

[00:05:24] Fred Glick: Yeah. One thing I learned a zillion years ago is, and remember this kids, there are no emergencies in residential real estate other than there’s a fire or something else.

But you’re not calling us to say there’s a fire, there are deadlines. That’s important, you know, even, and here’s the misnomer. Okay. So an agent who’s a listing agent says, “All offers are due by Tuesday at one o’clock.” That is the softest one o’clock you’ve ever heard. But as long as you contact and say, “Oh look, my client had to go into a meeting so he can’t sign it until three. Is that okay?” ‘Cause they’re not meeting with the owner until seven o’clock tonight. You know, so it’s, but, you know, you still have to then look at a contract separate, separate note, look at a contract. They have deadlines. They are in writing. You’ve agreed to get certain things done by a period of time, but other than that, there’s no emergency.

You don’t need to call me at seven in the morning to talk about a property that’s got an offer date two weeks from now, and you wanted to go see it three days from now. I mean, you know, think before your call. That’s why we have Slack. We love Slack. I mean, that’s actually how the way, that’s the way we’re able to operate and in multiple states and just contacting them.

And most of our clients already know what’s Slack is. Some of them use Microsoft Teams and then we tell ’em it’s Slack. They know, they know it ’cause it’s kind of the same, but it’s really like, you know, iMessage or just messages, it’s just conversations. You’re typing, document storage, you can do what are called huddles where you have audio or video meetings, you know, kind of like Google Meet.

What’s a little frustrating to us is we put out a invite and we tell everybody, clearly says, “This is a Google Meet. Click on this link at the time when it starts.” And people don’t come on for 10 minutes, and they finally do it. They saw it and say, “Oh, I thought you were calling me.” I don’t know where they got that impression from, but you know, those are kind of the old school people who kind of don’t get it.

But anyway, back to project management. I mean, what we try to do is lay everything out and work backwards. We know we have to get this done by this date. So three days ahead of before that. We’re sending out, we with every deal that goes under contract, we send out calendar invites. And, you know, mortgage contingency is due in 10 days.

On the eighth day, you’re gonna get a notice to say, “Hey, this is due in two days. Make sure with your loan officer, it’s all done.” It’s just the way to do things. It just makes sense. We try to make it as easy as we can for our clients by project managing, and we consider ourselves project managers. That are licensed to do real estate.

[00:08:20] Drew Thomas Hendricks: Mm-hmm. You know what I mean? It’s a very good way to put it. I mean it, a lot of people are licensed to do real estate and just see the closing signing documents is the end, is the whole goal.

[00:08:30] Fred Glick: Exactly. And you know, with other agents who come work for us, and there’s only three right now ’cause we’re rolling this out slowly, but we are looking for other agents to come on with the idea that we’re gonna do everything for them on the back end.

Because what agents are good at is having dinner with, with clients and going to parties and making relationships and meetings, groups, whatever, go do that. Go spend your time doing that. We’ll take care of, you know, setting up the inspections for your listing or, you know, everything’s on Slack too, and we’re involved in every transaction.

So you have a buyer, you’re an agent, you have a buyer. The buyer’s in there, you’re in there, I’m in there, René’s in there. Janet does all our transaction coordination in, so we all know what’s going on at the same time. That’s another beautiful thing about Slack. It’s right there. Everybody sees it at the same time.

[00:09:24] Drew Thomas Hendricks: Yeah. What you’re describing as a well-oiled machine too, too often you think of like the project management as like the quarterback, but it’s really more of this team working in unison. There’s one guy calling plays.

[00:09:37] Fred Glick: Exactly. And we all play offense. We all play defense. It’s like hockey players.

We go up and down the ice. We’re cyclists, we’re out there all by ourselves. No, we’re not gonna, no. That is a little shot of Paris-Nice, which happened last week, where they actually near Nice France in March. They were riding bicycles in the snow. Insanity. These guys are nuts. I mean, they really are.

They go so fast and the worst I figure the best and the worst thing to ever do if you wanna see a sporting event is go watch a bike race because they’re by you in about 10 seconds, all of them. That’s it. You get there hours before you wait. You know, you have to go to the bathroom, you might miss them, you know, but no, it’s a wild sport.

You can’t really tell on tv. You know, it’s like hockey. If you don’t go there and sit in the first 10 rows and see how fast these guys are, it doesn’t look that great on, it looks, it looks okay on tv, but not that great. Anyway, that’s my sports commentary. We’re drifting, we’re drifting off.

[00:10:54] Drew Thomas Hendricks: We are drifting.

But one thing I’d like to drift back to talking about inspections is mold.

[00:10:58] René Pérez Jr.: Well actually on the mold stuff, instead of me just giving you a lazy report on what to look out for inspections, what I’ll try to do is just get a professional mold inspector into the podcast. So if you do listen to this podcast. Stay tuned for us getting a, a guest speaker on mold.

[00:11:22] Fred Glick: Nice.

[00:11:23] René Pérez Jr.: Yeah.

[00:11:24] Drew Thomas Hendricks: Well, that’s a little teaser. Can you give us a little bit more to savor?

[00:11:30] René Pérez Jr.: Wellthe problem with the mold is that it’s usually not visible. Right? A lot of, I mean, you’ve gotta tear apart a kitchen to find out that behind every drawer there’s a bit of mold, right?

Or that someone who’s just renovating a house, they just painted over the mold then a year or so afterwards, it’s gonna pop up, right? So that’s what we kind of want to warn people about, and, you know, what can we do before we get under contract to minimize that potential cost down the line? So.

[00:12:04] Drew Thomas Hendricks: That’s good. I’m excited to talk to a mold expert.

[00:12:08] René Pérez Jr.: Yeah. But what I, what we do wanna talk about perhaps in terms of inspections is the fact that, you know, people sometimes depend too much on disclosures and on documents. Just we understand that when you’re buying a property, there’s a lot of things that are unknowns that you will only find out after you purchase a house and live there for a long time.

Right? The inspection, the inspector takes, let’s say we’re looking at a 1200 square feet property, right? The inspector’s gonna be there for, you know, two, three hours. Sometimes I think it’s best practice and whenever we’re doing walkthrough or looking at a property, I always have a little meter that shows if the the, the proper current is going through.

But sometimes inspectors will, you know, check one in each room and, you know, they kind of make the assumption that if one is working, the rest work. Fred’s probably gonna bring his little device there. The same thing with, with water, you know, the same thing with water, right.

You know, sometimes they, they’ll check, they’ll check one toilet and they’ll skip the other one. You know, things like that. Of course there, there are some inspectors that are better than others that are a little bit more you know, careful and they wanna make sure that they don’t get sued down the line.

But the reality is that the inspector’s only there for two hours. So I’ve, I’ve had it where like I’ve looked at a toilet, buyers have looked at a toilet, and the buyers don’t realize that it’s leaking until two weeks later, right? So it’s like, yeah, maybe the sellers knew about it. Maybe it just happened that like, it’s so close to the shower that people just kind of assumed that it was part of the shower, you know, like having kids.

And they left the shower door open and it, they did, it’s not that the seller were trying to lie to the buyers, they just didn’t really think about it twice, right?

[00:14:01] Drew Thomas Hendricks: I don’t think about it. It’s like just jiggle it a little bit.

[00:14:04] René Pérez Jr.: Yeah. Yeah. So, you know, sometimes, you know, people have to understand that like the inspections are not perfect that you’re going to find things in the property.

So it’s about figuring out, okay, on the things that we can see, you know, how, what is a worst case scenario, right? How if I’m buying a million dollar house. Is this going to be a house where I need to spend $30,000 in repairs or is this a house that I won’t have to spend a dime for a good three to five years and then have like a $50,000 repair on potential plumbing and does it kind of even out right? In the long run.

[00:14:49] Drew Thomas Hendricks: Mm-hmm.

[00:14:49] René Pérez Jr.: Same thing with roofs, right? Like, it’s like you’re, maybe you’re buying a, a house with a really old roof and you know, you have to make that as part of the offer. You know, where like, ” okay, if I was going to make an offer for a million dollars, I know I’m gonna change the roof eventually.”

‘Cause eventually you’re gonna have to get a new house. Right? It’s like it’s $30,000 for the roof. “Okay, well now I know that my offer should be like nine 70 because I’m kind of pricing in that I’ll, I have to change the roof.” That way, you’re not disappointed when you eventually do have to make those repairs. Right? And you know, I think Fred and I have the same kind of philosophy of you wanna buy the fixer, you don’t really want to buy the new property.

[00:15:29] Drew Thomas Hendricks: Mm-hmm.

[00:15:29] René Pérez Jr.: As the new properties that’s, that was remodeled by a flipper’s, gonna have the same, the same issues. Right?

There are still, I mean, some builders are better than others, but some people will just hire contractors, and the contractors will have subcontractors that don’t know what they’re doing. So you can’t depend on like, “Oh, it’s a fully remodeled house. I won’t have to fix anything.” Things happen. So you’re better off knowing, “Hey, I’m gonna have to flip my entire house and I’m gonna fix it to my liking, and I’m gonna spend the 200K, but it’s gonna be fixed.”

[00:16:03] Drew Thomas Hendricks: Mm-hmm.

[00:16:04] René Pérez Jr.: Yeah, kind of a little, little ramp.

[00:16:06] Drew Thomas Hendricks: You have to also, if you’re in a hot market and you’re looking at a million dollar house, you gotta pick your battles. Like you don’t wanna not bid on the house ’cause you have a leaky toilet that is a $90 fix. Versus maybe a $30,000 roof is something you wanna,

[00:16:20] Fred Glick: Well, the first time buyers on their first offer kind of thing, they’ll be like, “Oh, but this is this and it’s gonna come. And so I wanna offer it…” Is like, no, you don’t understand. Basically in California, you’re buying land that just happens to have a piece of real estate on it.

‘Cause what you’re buying is what’s called real property. Which means the, the physical real estate, the mineral rights from underneath and the air rights above. So it’s real property. And, you know, you’re buying this because it’s in a certain zip code. It’s got great schools. Well, people are gonna overpay for that because of demand and the lack of supply.

So. Yeah, they kind of either warm up to the fact that, “Hey, you know, there, there’s stuff gonna happen. You can buy a home warranty.” And by the way, we recommend this company called Armadillo for home fees. And the good thing about them is the guy who started it, we talked to him originally, he used to work for one of the big companies, and your real estate agent will try to sell you like First American or the title companies kind of have this home warranty thing tied in.

They’re all the same contracts and they basically will try to get out of everything. They’re an insurance company. He said he took like all this junky reasons why you deny a claim and like got rid of 90% of them. They’re gonna cover, you know, the appliances, they’re gonna cover certain things. They’re not gonna cover everything.

They’re not gonna cover a, you know, a giant repair ’cause there was a crack in the foundation or something like that. But they’re gonna cover certain things and little repairs with some deductibles. So it’s worth looking into, especially if it’s an older house. But that’s one way of sort of giving you a bit of peace of mind about that.

Now, going back, this is what I was talking about. So, eh, better put it in front of me so you can see. Yeah, there you go. This is kind of an, I bought this when the fires were happening in California because I wanted to find that air quality. So this gives you the a AQI, the air quality index, the PM.

And you can Google all this, but

[00:18:37] Drew Thomas Hendricks: How are you looking today? What’s your quality right now?

[00:18:40] Fred Glick: Oh, we’re looking good. We’ve got a good, we’ve got a green. AQI is only three. What’s interesting, I have this in my kitchen, so when I turn on my gas stove, you could see this thing skyrocketing. So that’s why I got another reason not to have gas. It’s a gas.

[00:18:57] Drew Thomas Hendricks: After one of our podcast episodes. I did buy a EMF detector.

[00:19:02] Fred Glick: Oh, the electric magnetic field. Yes. I have that in my car.

[00:19:07] Drew Thomas Hendricks: I couldn’t figure it out one way or the other. I mean, I was walking around the house and it like spiked for no reason in the middle of a room.

[00:19:13] Fred Glick: Because there’s a power outlet or something.

No, it’s, those things are really used better for when you go, let’s say you bought, you’re looking at a house and there’s power lines behind it. I’ve bought this. There was a house in West Hollywood that was gonna list, and the power lines were like right up against the house in the back of the house.

So I wanted to bring and see what the rating. You know, what it looked like, how bad it was. It wasn’t that bad. But yeah, it’s just good to have these things. Good to know. I mean, they’re more long-term issues, but you know, if there is some kind of leak in the house and some kind of gas, some kind of something, you’ll know it with this thing.

[00:19:52] Drew Thomas Hendricks: My use case is I’ve got six monitors and eight lights. I’m wondering if I like EMF Vortex. But it w it wasn’t that bad right in front of where I sit, if I put the device right against the monitor, it goes freaky.

[00:20:08] Fred Glick: Oh yeah. Yeah. I’m sure it goes for distance. All right. But speaking about the house, so say you’re, and this is especially good for people who live in apartments. You know, you get in there and it’s builder bay.

[00:20:28] Drew Thomas Hendricks: Mm-hmm. Swiss Coffee?

[00:20:31] Fred Glick: Swiss coffee. That’s it. Yeah, the standard crap. Anyway, so this company has come out and made and we try to send a link ’cause I didn’t see it. You might just Google it. There is this paint that you put on, it looks like perfect paint, but then you’re ready to move, you just peel it off. It’s fantastic. I gotta try it ’cause there’s a wall.

[00:21:02] Drew Thomas Hendricks: EYO tools.

[00:21:05] Fred Glick: Yeah. No, build your, that’s the name of the city. That’s the TikTok that we, that’s a TikTok channel.

[00:21:11] Drew Thomas Hendricks: It almost looks like a wrap. I mean, the picture I’m looking at looks like a wrap for your car. Like just get the,

[00:21:17] Fred Glick: It’s kind of the same theory. Yeah. Oh, and by the way, they found out that if you wrap a Tesla and once it comes off, it messes up the the body. So I guess like redo the whole car. Anyway, this is a pretty cool idea, especially for apartment dwellers. Kids rooms, they want to change colors after six months as they’re growing older. They’re tired of something. But yeah, this looks like a great thing. It’s expensive. I haven’t tried it, but I’m probably gonna try it, so. Hmm. I’ll let you know. Yeah. Alright. What do we got? Oh, yeah. The other crazy home thing is a, the drone, I’m sorry.

[00:22:06] Drew Thomas Hendricks: The new Inside Drone Auto Robot.

[00:22:09] Fred Glick: Yeah, so Ring doorbell, it’s, I think they’re run by Amazon if I’m not correct, came up with this thing. I don’t know if it’s out yet. It is just prototyping, but it’s a little drone that flies around your house, and I guess you can use it when you’re on a call with somebody.

Hey, let me see what, you know, Susie in the bedroom. Take this to her. Ask her a question or check if the laundry’s done yet so you can come home or it is a million things you could use this for. I’m sure the, “Is my spouse cheating?”

[00:22:45] Drew Thomas Hendricks: When the drone flies in? You would hope they were a little smarter than that.

[00:22:49] Fred Glick: Yeah. Yeah. I forgot I had a drone in the house. This thing could be really interesting. You know, it maps, it can map the house. And I guess this is something we can use if you wanted to tour one of our listings, hey, just turn on, we’ll turn on the drone for you. You can drive around the house.

So we’re gonna, I’m gonna follow this up. Maybe this will be in, in one of our listings to see if it works on an empty house, not a house where people are in there. ‘Cause we,

[00:23:29] Drew Thomas Hendricks: I think it’s a great idea, especially for if it’s a second home and you’re only there once a month. It’s, it’d be nice to like just be able to have it like even be no noise activated and kind of fly over and see what, what’s causing that noise or what’s making sure everything’s not leaking.

[00:23:47] Fred Glick: Yeah. Or can look out a window and see if your driveway’s, you know, got 12 feet of snow and it’s, you can’t park there. I mean, there’s a million uses to this as opposed to having a stationary camera. Three or four years ago, we were talking with these kids from the University of Maryland and put together a company, Door Robotics, I think they called it.

They’re out of business now, but they were trying to do an indoor drone thing. I don’t know if they, you know, what they were using to have it, to prevent it just smashing into things. And the speed at which it can go, ’cause you don’t want it to go too fast. You know, so they didn’t do it, but, but Ring with Amazon’s money, I guess, was able to develop it a lot sooner.

[00:24:37] Drew Thomas Hendricks: Remember the recent advances in light, radar detections so they can go through know they’re not gonna bump into anything.

[00:24:46] Fred Glick: Yeah. Yeah. So that was pretty cool. So we’ll see where that goes.

[00:24:51] Drew Thomas Hendricks: One step closer to a virtual home inspection.

[00:24:56] Fred Glick: Yeah. How you gonna open the cabinet?

[00:25:00] Drew Thomas Hendricks: There you go.

[00:25:01] Fred Glick: It’s like if you ever watched the Big Bang Theory, there was an episode where Sheldon decided he wanted to become a virtual presence and just stay in his bedroom so they could live longer so that he could take his DNA and put it into a computer, the robot, and live forever.

So his idea was he had this, you know, like a what was it? He had like an iPad on a, on a robot that moved.

[00:25:30] Drew Thomas Hendricks: Oh, I remember that.

[00:25:31] Fred Glick: Yeah. He was the actors actually on that episode. But anyway, he gets into his. Office. He’s out in the hallway and Leonard just won’t open the door for him. And he was, he was all like, what do I do now?

Ends up, Raj opened the door, but still we can get the drone to open the doors and open the cabinet. Yeah. Virtual inspector. Yeah. So.

[00:25:57] Drew Thomas Hendricks: Coming to a home near you soon.

[00:25:59] Fred Glick: Exactly. All right. Lastly, there was a Wall Street Journal article in the headline says, “A Secret Mortgage Blackout is Leaving Homeowners Stuck With Unsellable Condos.”

Okay? There’s not a secret blacklist. There’s an approved condominium list. If you’re not on it, you’re blacklisted. That’s the way it is. So the way they did this, so as a reminder, kids, and we screamed about this before. If you don’t have this reserve study and if you don’t implement the reserve study, and if you have too many people who are delinquent and a whole bunch of other things, you can’t get a loan from Fannie Mae, Freddie Mac, and that trickles down to FHA and VA.

‘Cause they wanna approve the condo names. So all these condos in Florida, you know, let’s find the cheapest condo with the cheapest fee. Well, that’s the stupidest thing you can do because now they didn’t have any money in reserves and you gotta put a new roof, roof on in five years, guess what? It’s gonna cost a hundred grand and everybody’s kind of, you know, gotta get into it then pay.

But if you would’ve gone from the beginning and paid an extra 50 bucks a month, everybody for the last 20 years, this wouldn’t have been a problem. So now everybody’s bitchy and that’s on top of the insurance problems. So you have to have the correct insurance. So that’s another problem with getting your condominium approved. It’s for five unit buildings and up.

[00:27:33] Drew Thomas Hendricks: But, so it’s block list, so you can’t get a mortgage on it, but you could be a speculative cash buyer since no one else will buy?

[00:27:41] Fred Glick: Cash buyer. Yeah. Because that million dollar condo is now worth 700 grand. ‘Cause you, there’s only three buyers in the whole world.

You know, you wanna buy that condo and that location and that view and that everything but have cash. And that’s it. That’s the only way to buy it. And what do you think? They’re not gonna give you, quote unquote market value. Condominiums, you are screwing yourself up your value.

And, but there’s gonna be people saying, I’m not moving for 20 years. I don’t care. I don’t have the money to pay. I don’t wanna pay. My myopic thinking. I mean, it’s just stupid. Okay, so I mean, we’re going through one with a five unit condo. We made them get the reserve study, and you know, this guy who’s running the condo is one of the unit owners, doesn’t have any property management experience, and he Googled something and it’s like, no, you Googled the wrong thing.

You don’t know what you’re talking about. You need to do this. And now that they got the reserve study, they haven’t implemented the new monies that need to come in. So it’s just, I don’t know if it’s gonna get approved or not. We’re trying to get, here’s the other thing, kids. Get your condominium approved by one of the lenders who you deal with, because they will get it done.

And then once they approve it, then Fannie Mae gets it. And then you’ll be able to do other units in the building. Don’t, you know, don’t go under contract and then get the condo approved ’cause you might have no deal. And then the seller’s gonna be all set and blah, blah, blah. So do that.

Here’s another tip. Separately appraised values. You think your area’s going to drop in value. What you do if you, you think it’s gonna go possibly FHA? You can order an appraisal now that value is good for six months. Interesting. And then you can show it to buyers. “Hey buyer, you know we got a house price for 350.”

That’s a real appraisal. So don’t offer us 3 25. Here it is. We got, this is what it’s worth. We have a real appraisal, you know.

[00:29:49] Drew Thomas Hendricks: So that’s, the neighborhood goes down in six months? That’s a pretty…

[00:29:53] Fred Glick: Yeah.

[00:29:53] Drew Thomas Hendricks: Sharp precipice.

[00:29:55] Fred Glick: But that’s for six months.

[00:29:56] Drew Thomas Hendricks: FHA.

[00:29:57] Fred Glick: Yeah. And you can get it done on an FHA approved condominium too.

And by the way, just because you’re Fannie Mae approved doesn’t mean it’s FHA approved, doesn’t mean it’s VA approved. You have to get it specifically approved in FHA and VA, there’s no more what’s called spot approvals for FHA, where you just get one unit approved. Do it, gotta be the whole building.

[00:30:20] Drew Thomas Hendricks: Oh, oh, wow.

[00:30:21] Fred Glick: Yes. The whole economy and projects gotta be approved.

[00:30:25] Drew Thomas Hendricks: So I would say like a smaller, like 10 unit condo, you’re maybe having to do it fresh, but if you’re in like one of the sky rises with a hundred, 200 units, there’s probably one always kind of getting sold.

Yeah, they should be doing that, but professional property management companies should know this and just getting these places approved. Now, you’re always calling out Florida as the, as the den of inequity for condos. I mean, how’s California’s situation or Washington state?

[00:30:52] Fred Glick: Oh, we’re not under, the reason I picking on Florida is because they have that law that came out that said to the condominiums that you gotta get your, you know, what together because of this tragedy that happened where this railing fell and a bunch of people died, it.

So, you know, it’s typical with government to response as opposed to preemptive. And then add that to all the hurricanes. Florida’s a mess. So condominium, you know, the insurance going from 5,000 a year to 200,000 a year for some of these buildings and it’s insanity. But you know, there is climate change in case you haven’t noticed. Anyway, in California

[00:31:43] Drew Thomas Hendricks: We have earthquakes. We haven’t had in a long time.

[00:31:47] Fred Glick: Yeah, we got a 4.6 in Malibu. Big deal. Not a problem. Yeah, we got earthquakes, we got, we had a tornado in I think it was Orange County so to speak. Yeah. You know, we got fires. We got then rainstorms that cause flooding because of the fires and the, the ground is all soft and it’s mud and it’s just a mess here.

But we love our mess.

[00:32:21] Drew Thomas Hendricks: Mm-hmm.

[00:32:22] Fred Glick: Mess. It’s a mess. But we love it. We’re overtaxed and regulated and all. Whatever. There’s one guy who’s got a TikTok there. He just puts really cool things about, you know, a day in California he’s having like out at the beach and whatever and showing palm trees and he does every time, “Parable to live in California. Don’t live here, don’t come here, don’t live here.”

But I mean, still people gonna come here, still people aren’t gonna come here, whatever live where you wanna live, so.

[00:32:59] Drew Thomas Hendricks: True.

[00:33:01] Fred Glick: Yeah, that’s my rant of the day.  There you go.

[00:33:03] Drew Thomas Hendricks: Glick Predicts. Now that we had the FED chairman yesterday give us some new guidance talking about how the government’s gonna be buying more bonds to lower the interest rates.

How’s that gonna affect real estate?

[00:33:15] Fred Glick: Well, yeah, he is. But still remember this kid, the fed’s got nothing to do with mortgage rates. Quote, fed has nothing to do directly with mortgage rates. The 10 year treasury, the mortgage backed securities, the way they sell. And that value and that yield is what determines what the mortgage rates are. So,

[00:33:40] Drew Thomas Hendricks: But if the 10 year goes down, that’s gonna affect the mortgage rates.

[00:33:43] Fred Glick: The yield on  10 year goes down, as long as there’s no supply demand issues with the mortgage backed securities, then yeah, on that day, the rates should go down. But see people look at the  10 year and think that’s it. “Oh, the 10 years, the yield is down 15 basis points. Wow. It should drop an eighth and rate.” But let’s say you got a supply problem in the mortgage backed securities and they’re selling off for some reason. So that’s gonna be an issue. Another issue that’s gonna happen, I, I heard that Canada is going to sell a lot of their US securities and put it into other things.

[00:34:24] Drew Thomas Hendricks: Yeah.

[00:34:24] Fred Glick: Well, you know, everybody get the, the whole world getting pissed off at the United States, the one major problem is they sell our bond, they sell our debt to somebody else, and the more they sell, the higher the price. And they flood the market and to the, well, the price goes down, the yield goes up higher, the yield, so our rates go up.

You know, it’s a day-to-day thing. When you, here’s a tip. When you get to a comfortable place where you say, you know what, that payment, yeah, it could be better, but it’s fine. I’m comfortable with it. Just locking it and do it. At some point you’re gonna refinance anyway. So, you know, the value of your property, especially in California, is just gonna keep going up.

You’re gonna have more equity. Just do it to be comfortable. Don’t try to beat the market. I have a guy who’s doing a 20 year, he had to do a 20 year refi, and all of a sudden, I mean, it was good for a day. And then we decided, you know, he wants to, you know, keep going so he can get any better, and then the rates went up.

And now there’s the 20 year is not getting a good yield. So people buying the thirties and twenties, awful. Sometimes there’s a big spread between 20 and 30. Sometimes there’s no spread between 20 and 30 years. 15 is always gonna be better, but you know, the spread might be down to this.

It depends on the yields. 10 years kind of for the 30 year bonds, sevens for the 20 to fives for the 15, sort of, kind of, it’s not an exact sign. But, you know, we get into inverted curves and we’re still in a slight inverted curve. We’re pretty much, yeah, yeah. We’re in the inverted curve. The short terms are still higher than the long terms.

[00:36:15] Drew Thomas Hendricks: What about, I mean, you don’t talk about it. What about a 40 year?

[00:36:20] Fred Glick: 40 year is much of crap.

It’s not a Fannie Mae product, but actually in jumbo, I just got, one of my lenders will do a 10 year interest only, and then a 30 year mortgage after that.

So it’s a 40 year mortgage. It just, it’s just a gimmick to get the payment down a little lower. Like you think about it. No one’s gonna have that loan for 40 years, you’re gonna refinance it. So you’re better off, you know, getting an acre only loan and you’re going to the 40 year loan, I believe you still have to qualify based on a 30 year mortgage.

You’re just getting pay. Same with the interest onlys, the interest only. You don’t qualify at the interest only payment. You qualify at an interest only with a 30 year amortization. So, always they’re giving you the break of the interest only payment. But you have to qualify as if you did not have a 30 interest on it. Yeah. A 30 year. So.

[00:37:19] Drew Thomas Hendricks: Interesting. And pretty much anybody that’s had a mortgage in the last four years is probably gonna be refinancing anyways. Few that got in it, like under three that may.

[00:37:31] Fred Glick: Yeah , they’re not going anywhere.

[00:37:32] Drew Thomas Hendricks: I don’t know if we’re gonna go 30 years, but it’s doesn’t make much sense to refinance.

[00:37:36] Fred Glick: Oh, just pray for a severe economic collapse to get back to those rates, it’s the only way to do it. The idea of lowering rates, is to spur the economy to get it going again. Higher rates are to slow down the economies. So inflation, you wanna get rid of inflation, you raise interest rates normally because then businesses don’t borrow as much.

But in this last bit of inflation, it wasn’t caused by businesses, it was caused by the outside sources of deliveries and you know, it crazy stuff that the Fed couldn’t control. That was part of the problem. You know, everybody blames Biden. Come up with another solution. You know, you had every major economist and government around the world trying to figure it out, but you know, you voted against them because the inflation.

Really genius? Come up with an answer so people don’t. Oh yeah, the tariff economy. We’re gonna tariff the entire world, and I guess you’re gonna lower everybody’s taxes because you’re getting rid of all this government. Isn’t that the idea? We shouldn’t be paying taxes now. There’s no government.

[00:38:51] René Pérez Jr.: Well, that was the entire point, though. The entire point of this is that it used to be that there was no income tax and that the way that the government was funded was through tariffs.

[00:39:01] Fred Glick: In the 1930s? It’s a different fricking world now.

[00:39:06] René Pérez Jr.: Yes.

[00:39:07] Fred Glick: It’s a global economy. Then it was, you know, X country was the only country that made widgets.

[00:39:16] René Pérez Jr.: Sure.

[00:39:17] Fred Glick: So you charge ’em. Yeah. Now 5,000 different companies in 60 countries make the same widget.

[00:39:28] René Pérez Jr.: Yeah, it’s a globalized world, but the world still depends on the US and to say otherwise would be a lie. So.

[00:39:34] Fred Glick: Well, they’re trying to fix that, so I’m sure Canada’s going to join the EU soon.

Who knows? Who knows? It’s, you know what, it’s out of our control.

[00:39:48] René Pérez Jr.: Yeah. And if that were true, that’s why like, you know, half of my friends are ex Canadians who moved to the US because they love Canada. Yeah. Come on.

[00:39:58] Fred Glick: It wasn’t cold there. If Canada was where we are. Oh my God.

[00:40:02] René Pérez Jr.: Oh sure. Yeah.

Well that’s every country. That’s exactly why the US is a US. Yeah.

[00:40:09] Drew Thomas Hendricks: Yeah. Tying it all back to real estate. It’s weather.

[00:40:14] Fred Glick: Yeah. Yep. Location, location, location. It’s not 71 and sunny in Toronto today. You know? Saskatchewan.

[00:40:26] René Pérez Jr.: Yeah, we can see what’s the weather like in Toronto right now?

[00:40:30] Fred Glick: Yeah, let’s check Toronto weather. I mean, this is March what? March 20th.

[00:40:35] Drew Thomas Hendricks: March 20th. First day of March. Madness.

[00:40:38] René Pérez Jr.: Yeah. 45 degrees.

[00:40:40] Drew Thomas Hendricks: 45. Can’t even curl in that weather.

[00:40:45] Fred Glick: Yeah, it’s too warm to curl.

[00:40:47] Drew Thomas Hendricks: Too cold to do anything else

[00:40:50] René Pérez Jr.: Vancouver. 43 degrees.

[00:40:52] Fred Glick: Oh geez. Ugly. Well, it’s just Northern Seattle is all that is. So anyway, got enough annoyance.

[00:41:04] Drew Thomas Hendricks: Yeah. If you’re still listening, this has been another episode of We Fixed Real Estate.