Podcast

Weatherproof Your Home Sales: California Real Estate Tips With Fred Glick and René Pérez Jr. Of Arrivva

Fred Glick, a Broker, Real Estate Realist, and Founder of Arrivva, holds a stellar track record with over $2 billion in residential transactions while grounded in a lifelong passion for real estate. René Pérez Jr. is an adept Broker and Pricing Savant, who specializes in strategic problem-solving and long-term growth. 

Join Fred Glick, and René Pérez Jr., in the We Fixed Real Estate podcast by Arrivva where they share their expertise and insights in the constantly evolving landscape of real estate. Arrivva is a comprehensive real estate and mortgage brokerage, catering to qualified, motivated buyers, sellers, and mortgagees with a commitment to brokering with love, integrity, knowledge, a well-defined plan, and a transparent flat fee structure.

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

  • Find out the impact of floods on Southern California real estate with unconventional insights from Fred and René
  • Uncover challenges for potential buyers, the importance of weather for property showcasing, and strategies for dealing with natural disasters like fires, earthquakes, floods, hurricanes, or tornadoes
  • Delve into the livability of California for potential residents
  • Stay informed about the Palm Springs real estate market following the cap on short-term rentals, based on a Los Angeles Times article
  • Learn sound advice from the experts for those interested in speculating and purchasing rental properties in Palm Springs
  • The latest affordable loans for first-time homebuyers in California—discover the details of the California Dream For All program

In this episode with Fred Glick and René Pérez Jr.

Join Fred Glick and René Pérez Jr. of Arrivva as they dissect the California real estate landscape. Delve into the impact of floods on property visits, the challenges of livability in the Golden State, and insights on a groundbreaking affordable loan program for first-time homebuyers. 

Get updates on Palm Springs’ real estate trends and valuable advice for potential investors. Plus, discover Arrivva’s unique fixed-fee services for selling a home, combining transparency, technology, and a personalized touch. Don’t miss this episode for a concise yet comprehensive look at the opportunities and hurdles in the California real estate market.

EPISODE TRANSCRIPT

[00:00:00] Drew Thomas Hendricks: Drew Hendricks here, your world-famous announcer. Welcome to We Fix Real Estate. Today we have…

[00:00:04] Fred Glick: Fred Glick, Los Angeles County, California.

[00:00:08] Drew Thomas Hendricks: And René, I can tell you’re joining us. Talk to me, René.

[00:00:11] René Pérez Jr.: Yeah, and René Pérez Jr. from, actually, it’s also sunny San Francisco, actually.

[00:00:16] Fred Glick: All our friends back east and north who have crappy weather, unfortunately, but we’re here. They’re there.

[00:00:25] Drew Thomas Hendricks: We had it last week, the freeway from our, to my house shut down again. They were paddleboarding across it, the 78. And they just, it was closed for the last, for three months, last year to fix the drainage. Three months of it being shut down, the first storm we had, it flooded again.

[00:00:42] René Pérez Jr.: Yeah, there’s a lot of floods down in SoCal these days.

[00:00:45] Drew Thomas Hendricks: How does that affect real estate?

[00:00:47] Fred Glick: You know, it’s hard to get to a house to see it, to buy it. That could be a problem, you know, unless you’re running helicopter shuttles. You’re so desperate to sell. Yeah. I mean, you just, you just can’t at that point, unless you want to give it away. I’m sure there’s people who would take it from you sight unseen.

Because this is what I always say about real estate in California. You’re not buying property, you’re buying land. You’re buying land at a really inflated price that happens to have some real estate on it. That’s it.

[00:01:20] René Pérez Jr.: Now that we’re gearing up for the spring market, there’s a lot of sellers that are wondering when’s the best time to sell.

And, you know, what I tell all the people that are coming in to request timelines as to when they should list their property, I tell them it’s going to be rain this weekend, Fred’s going to counter this in a second, but if it’s going to rain this weekend, we can just do this next week when it’s not raining It’s going to be fine. It’s preferable to just have a good weather.

[00:01:46] Fred Glick: Okay, let me have my counter and I’ll tell you the reasons why. In the quote-unquote old days before you had the internet, everybody had to go to the property to the open house. The open house is a big thing. It actually pulled up something called a newspaper. It’s just like,

[00:02:02] René Pérez Jr.: I don’t know what that is.

[00:02:04] Fred Glick: Yeah, I know.

[00:02:05] Drew Thomas Hendricks: I’ve got my county times right here.

[00:02:07] Fred Glick: See, there you go. That’s a newspaper.

[00:02:09] René Pérez Jr.: That’s how I know you’re above 30.

[00:02:12] Fred Glick: Right. And you went out, you know, you had to have an open house cause there’s no one, no way else to see the house kind of thing. Unless you made an appointment and that was, okay. So now you’re the owner of a property and it’s a nice property.

It’s in an area where, you know, you’re going to get 20 offers. It’s in a great school district. The faster these people buy the house, the happier they are. They’re all like clamoring for it. If you show it during the wet season, yeah, you do some accommodations. You have an area where they have to take their shoes off.

You have an umbrella stand even for, bring the covers for the umbrellas and put them in the umbrella stand. Just make it nice and have people walk around in their socks or bare feet, to see the house. What they see when they get in is they’ll know if there’s any leaks. They’ll know if it smells bad because there’s some kind of penetration behind a wall, it’s causing the smell to come.

So it’s a beautiful time to see a house. And you know, not many buyers really realize that. You know, you as a buyer might come out and then you don’t have to worry about it and then see it again when it’s nice out. Those are some ideas.

[00:03:38] Drew Thomas Hendricks: I agree.

[00:03:39] René Pérez Jr.: Great for buyers to go in when it’s raining. It’s bad for sellers when they list. I mean, sure. You want

[00:03:46] Drew Thomas Hendricks: That makes sense. The one thing also I’m going to add to that is like when you’re for buyers, like when I’m going to buy a house, I drive to the house at rush hour. I drive to the house and when it’s raining, I mean, when you’re saying you’re buying property and it’s all location, it helps to know if you have more than one way to get to and from your house should road close like the freeway.

[00:04:05] Fred Glick: Good point.

[00:04:06] René Pérez Jr.: Yeah.

[00:04:06] Drew Thomas Hendricks: I have many ways to get in, but there’s other parts near me that there’s like one road in and out of these subdivisions. And if it goes bad, you’re kind of stuck.

[00:04:17] Fred Glick: Rain, fire, earthquake, all the fun natural disasters. It’s funny, we had a buyer looking the other day at what’s called the natural hazard disclosure, which is given with every property, and it’s basically public data and some other scientific data that they’ve accumulated.

To basically say at this location, these are the many ways that disasters could happen, fire, earthquake, flood. They give a percentage and a lot of it’s pretty high percentage, but they go into it in detail. And what I basically tell people is here’s the risk of moving to California. It’s going to tell you how you could possibly die.

So just accept it. The only thing you can get away with is flood insurance and earthquake insurance, but even then, or make sure the house is retrofitted perfectly support an earthquake up to blah, blah, blah. That’s all you can do, you know, or get us tear it down, build it in cement. So it’s completely fireproof. That’s the other idea. But anyway that’s another story.

[00:05:27] Drew Thomas Hendricks: And at least until last year, we didn’t have hurricanes hit here or tornadoes, but we had both last year.

[00:05:33] Fred Glick: Pretty much.

[00:05:34] Drew Thomas Hendricks: So we got them all. Everything.

[00:05:36] Fred Glick: Weather. We could talk about weather and traffic for three hours. And this is not even being prepared. I mean, let’s talk about livability in California.

If you’re thinking of coming here, I mean, you’re going to have to put up with aggravation that you basically don’t have other places. You’re going to have to put up with the fact that there’s 10 million people here. There’s a lot of people in Los Angeles. And by the way, guys, San Francisco is not the second biggest city in California. San Jose is.

Everybody keeps forgetting that. So that Bay Area has got those two plugs at each end kind of thing. And there’s, it’s just spread out. So you gotta take a car to get anywhere. You gotta take a train. It’s, and the trains are funky. Caltrain a little better than BART. BART can, it can be a nightmare, both service and just cleanliness.

Depending where you’re come from, you gotta kind of stomach it. You know, everybody calls it San Francisco, the Paris of the US and you know, Paris is trains pretty ugly too, but

[00:06:51] René Pérez Jr.: I’ve never actually heard that, but the culture of public system is getting better. There are a lot of construction products going on, so of expansion.

[00:07:01] Fred Glick: Oh yeah, no, I’m trying to give people a feel for coming out here today. Yeah, there’s progress happening all over the place. That’s why we have high taxes because they spend money on stuff. It’s a very pro-labor state. It’s a very pretty much fair and open state and people are more socially conscious, people are more environmentally conscious.

The minorities are the majority, which is interesting because there’s different minorities. There’s no one minority that can become the majority, it seems just because of the sheer numbers.

[00:07:39] Drew Thomas Hendricks: Well, that’s a lot of diversity. One thing, René, have you heard anything about this new tube that’s going in BART? A second pay tube, it’s going to connect the South part.

[00:07:52] Fred Glick: I don’t know from where to where?

[00:07:56] Drew Thomas Hendricks: It’s going to run parallel to the existing to connect in the East Bay to San Francisco, but

[00:08:03] Fred Glick: Under the river.

[00:08:05] Drew Thomas Hendricks: Yeah, well on under the Bay, and then it’s gonna, just expand the route, expand the routes, and I think to alleviate some of the congestion at rush hour.

[00:08:14] Fred Glick: Yeah. That’ll cost a few bucks and take a few million years to do.

[00:08:18] Drew Thomas Hendricks: Yeah, I haven’t read too much about. Traffic weather aside, new news this week that you guys put through my desk, California offers a

[00:08:27] Fred Glick: One last thing, one last, yeah, one more thing. And this is very important because we practice this in our business.

There is absolutely no reason for you to get on any major highway in California on Friday afternoon unless you want to go backwards. So just plan around it, okay? Just don’t get on a highway, okay? Avoid Friday afternoon driving the Friday noon track. It all costs. It’s that is the worst. Maybe Sunday is coming back the other directions, but it’s both directions all the time, anyway.

[00:09:02] Drew Thomas Hendricks: My experience is it’s been, it’s a lot better than some of the other cities that I’ve or areas of the world, areas of the United States I’ve tried to drive in such as Seattle and Denver, where you’ll go seven lights and you’re, you still haven’t moved.

[00:09:16] Fred Glick: Oh, we’re talking about freeways.

[00:09:19] Drew Thomas Hendricks: Oh, the freeways are even worse.

[00:09:21] Fred Glick: Right. That’s my point. Don’t go anywhere on Fridays. And I hear we’re going to a four-day work weekend in parts of corporate America, so Thursday will be the getaway day, and that’ll alleviate some of the traffic from Friday, maybe? I don’t know. Who knows? Who knows?

[00:09:37] Drew Thomas Hendricks: I’d appreciate it.

[00:09:38] Fred Glick: That’ll make for Friday open houses.

Oh. Friday morning open house. How’s that? That’s a great idea. Okay, on the real estate side, what do you think? Give us a comment, Friday morning open houses, we’re going to go to a four-day work week. See the house during the week when it’s a little, could be a little busier or whatever. There you go. I’m starting a new trend.

[00:10:00] Drew Thomas Hendricks: Yeah. Freeze up your weekend too.

[00:10:03] Fred Glick: Exactly. Exactly. René would love like seven to 9 am Friday.

[00:10:12] René Pérez Jr.: Oh no, I would love it. Actually, I would love like 10 pm open houses. That’s what I would actually appreciate.

[00:10:19] Fred Glick: Yeah, with cocktails, I guess.

[00:10:22] René Pérez Jr.: Yeah, would be great, you know.

[00:10:24] Drew Thomas Hendricks: Open bar.

[00:10:25] René Pérez Jr.: He goes out to drink, like, hey, come to the open house.

[00:10:27] Fred Glick: Well, okay, here’s it. Let’s not call it an open house. Let’s call it a preferred house. Meaning, what if, no, let me finish this, and let me, because I’m interested in what you have to say. If you’re fully underwritten, pre-approved, or you’re paying cash, you can come to this special open house at 10 o’clock at night. And there’s an open bar, hors d’oeuvres, tour of the house.

[00:10:52] René Pérez Jr.: No, it’s actually illegal. So, if you want to host an event.

[00:10:56] Fred Glick: Is it?

[00:10:57] René Pérez Jr.: You have to have a liquor license. That’s okay. That’s why it has to be a private event. So you can’t, you know, publicize open for all kind of event of that sorts.

[00:11:07] Fred Glick: It’s a qualified event.

[00:11:10] René Pérez Jr.: I don’t know. You would technically have to, you would also have to be an I don’t know if you would have to, you know, I might be misphrasing the subject here, but at least a person who’s the alcohol, they have to have a bartender’s license. I think that’s what.

[00:11:25] Fred Glick: Okay, well, whatever the conditions, I’m just talking theoretically.

[00:11:30] René Pérez Jr.: Oh, yeah, no, I mean, that’s what a lot of the open house happy hours should be. I know that a lot of agents are probably doing them incorrectly, where if someone from the city would go and check on their events.

They’re probably not doing it and others should be doing it. So, but anyway, no, it’s a fun idea. I like it.

[00:11:50] Fred Glick: Okay. Well, we have one listing for sure. I don’t think it would bring the 10 o’clock at night people in because it’s a single family coming up, but it’s another one that, I don’t know. I think it’s for more high end.

[00:12:03] René Pérez Jr.: Well, I, we, 3 million listing in San Jose. So maybe we’ll test that property.

[00:12:10] Fred Glick: There you go. There you go. Property. Okay.

[00:12:14] Drew Thomas Hendricks: Or one in San Francisco, if you’re in a, you know, high rise and it’s a, you’re in the city. Everyone’s walking around.

Especially if people are moving to the place to see the nightlife and to see the buzzing city.

[00:12:30] Fred Glick: Yeah. Okay. Good idea. Hey, a quick time out, you know, cause usually in podcasts, everybody does commercials. So quick commercial about us for listings, you know, we don’t just rebate. We actually do listings for a fixed fee. It’s 15,750 bucks. That’s it. But here’s what we do. We’re going to order and pay for any inspections we need.

Home inspection, termite inspection, roof inspection, even the scope that goes under and through the pipes if necessary, especially if you’ve got a big tree that’s got tons of roots or there might be issues, and this way and we also get the forms for the seller disclosures, no matter what the state all done, order title, we just get everything and make everything completely transparent for a buyer to get upfront so that you’re not negotiating as a seller twice.

Meaning you come under contract, but you’re not doing inspections and you’re letting them do inspections and everybody comes in with an inspection and then they come back to you and try to handle you for another 20, 000 bucks. So you’ll need this. This way, you know, absolutely upfront. Everything’s fully disclosed.

We also do Matterport 3Ds. We do them with virtual staging and we love it. I think it’s great. We also do regular photography and drone photography. And we love it. It looks beautiful that way. We’re gonna write the descriptions in a really good method. Yes, we might use a little AI to clean it up, but we’re trying to target people.

So that’s how we’re trying to present ourselves in the way a buyer would look at it. We make sure your house is clean. We pay for a cleaning right before we go to market. We want it smelling nice. We bring in the apple cinnamon pie and put it in the oven. I love that. All that kind of good stuff. We have the same open house times as everybody else in the neighborhood.

So that doesn’t upset people. We have René or I are going to be at the open houses. Because we don’t take a ton of listings. We only take listings that we ourselves can concentrate on and work. And make sure they’re right. So it’s a little bit different. Oh, and the one last thing, the elephant in the room is the buyer broker fee.

And it’s 100 percent your choice. You could go from 0 to 2. 5%, whatever you want to do, we’ll have a complete discussion as to what’s going on in the real estate world with commissions because that’s a big thing now. We’re happy to talk with you. And if any of this interests you and you want more details, go to arrivva.com/sellers and that’ll be up there.

Okay. Commercial done. You’re probably back from getting your snack and Drew. It’s back on course.

[00:15:40] Drew Thomas Hendricks: Back on course, full-service selling for a flat fee. No, the one thing. So I was, as I was sitting here listening to that, I was thinking about this next segment and I know we’re going to talk about first-time home buyers, the California is offering affordable loans again for the first time, but on the right-hand side of this Los Angeles Times website, I see and you mentioned this a couple of months ago, Fred. Palm Springs caps short-term rentals. Now home prices are in a free fall. Do you want to give us an update on that?

This might be a good opportunity for someone that wants to relocate to Palm Springs or even a first-time home buyer might be accessible again.

[00:16:20] Fred Glick: I keep seeing three, 400, 000 single family houses popping up on the market. I’m a lunatic. I have Redfin set to like set for everywhere, all over.

And so I get little hits and I just casually look at it. I don’t look at everything, but yeah, here’s this new 350, 000 house. And somewhere around the Palm Springs area. Yeah.

[00:16:44] René Pérez Jr.: So Palm Springs was always meant to become like a relaxation in retirement haven.

[00:16:52] Fred Glick: With Springs. Yeah.

[00:16:53] René Pérez Jr.: Exactly. And then, you know, Airbnb came out and it was, I mean, it was a great idea in the beginning, right? Of everybody trying to just buy rental properties. It facilitated rental property management, right? In its essence, they made it easy for the day to day investor to just buy a property and rent it out.

Without having to go through a, you know, full quote unquote, full-service management company, but, you know, it’s creating headaches for people. Like for example, in Palm Springs, it’s creating headaches for people who actually just want to retire and they only have 500k in their accounts to purchase a house.

So a lot of these cities, and it’s going to continue to happen, they’re going to ban short-term rentals, right? I think I mentioned it before, Palm Springs has it, Napa has it, you can’t do below 30 days, I think it’s below 40-day rentals and such, but it’s going to be a sign that you can’t just really short-term rent everything.

And with that, it’s going to create a space for retirees to go back to where they were hoping to afford a place in California, right? And it’s still, you know, only an hour and a half away from Los Angeles. So if you want to go on the weekend to go to the beach.

[00:18:11] Fred Glick: You know what? It’s only like a half an hour away from the tips of Orange County, which have places to go shopping and all those restaurants and there’s restaurants everywhere. So it depends.

[00:18:24] Drew Thomas Hendricks: Fantastic restaurants.

[00:18:26] Fred Glick: Absolutely. I’m saying if you want to change.

[00:18:29] Drew Thomas Hendricks: Oh, yeah. Mix it up a bit.

[00:18:31] Fred Glick: So, yeah.

[00:18:33] Drew Thomas Hendricks: I mean, so what’s happening in Palm Springs? There’s been a lot of speculators that maybe are losing their shorts right now because they can’t do their short-term rentals.

[00:18:42] Fred Glick: It’s a long-term play.

[00:18:43] Drew Thomas Hendricks: It’s a long-term play, but what would you, what advice would you give someone that may be wanting to speculate and purchase a rental property?

[00:18:51] Fred Glick: If you can stand the heat, and that’s the other thing, you gotta understand it gets hot there in the summer. And you gotta have good air conditioning, you know unless you’re really into it.

So, if you can deal with that, or you’re not gonna be around in the summer maybe, and schools aren’t important, that’s the other thing, they gotta improve the schools.

[00:19:11] Drew Thomas Hendricks: Wondering if there’s a source that keeps the rest of the local civic initiatives of wanting their pro short-term rentals.

[00:19:20] Fred Glick: Oh, I am sure it’s like, I’m not involved in that.

[00:19:23] Drew Thomas Hendricks: It might be the new business opportunity, having like, a heat map of short-term rentals and whether it’s a

[00:19:30] Fred Glick: On and off? To get the data will be. Yeah, I don’t know. Somebody’s got the data somewhere. Airbnb’s got the data. Not sure. That’s the problem. Here’s a, you want, you want to do something?

Put a really good private school. If you got money, set up a private school in that area, and then people will come and buy houses. Okay? Hey, here’s a place we can move. I get a house for 400 grand. It’s great. I don’t have to pay a million three to live here. My kids would go to a great school. Build it and it shall come. That’s why property values go up because of school districts. Period. Done. End of sentence. That’s good. School is rule.

[00:20:17] René Pérez Jr.: I’ll give you one better. So have those, you know, build a private school and then get a contract from a local university so that if the student has a general GPA, they can get to that university.

[00:20:31] Fred Glick: College credit?

[00:20:33] René Pérez Jr.: Yeah.

[00:20:35] Fred Glick: Okay, but I’m talking about building a school where these parents expect these kids to go to Harvard. But maybe a UC. How about UC doing it?

[00:20:43] René Pérez Jr.: Well, like San Diego State, right, has that program. So, they’re partnering with a couple of schools.

[00:20:48] Fred Glick: No, running an elementary school? I’m talking about elementary through high school.

[00:20:53] René Pérez Jr.: Yeah, exactly. Middle. It has a middle school and high school. So they have contracts with some middle, high school, and middle schools where if you get a 3. 0 GPA and above, and you fulfill the requirements.

[00:21:04] Fred Glick: Yeah, no, I get that. I’m talking about. I’m taking a step further. I’m telling them to branch out.

They’re in the school business. So make an elementary junior middle school and high school in Palm Springs. Private schools charged for it. They’re in the school business, public slash private, whatever, make it a public school and put great teachers in there.

[00:21:28] Drew Thomas Hendricks: There you go. Fred, throwing out million-dollar ideas.

[00:21:31] Fred Glick: Oh, it’ll probably, it’s got to be a teacher’s union. Sorry. Okay. That’s where the wrench into it, but of course to join the union, but I don’t know. I’m just trying to invent something as a utopia to, for realistic, for an area. Got the proud real estate numbers. Put a school there. Start with that. Once you get the school, then you get the parents, and parents drop the kids off at school.

They stop at the fancy coffee shop and then the cute dress shop. And then guess what? You know, your economy gets rock and roll and you just get it on a sales tax. I’m sure the math is there to do this, but I got plenty to do. Sorry.

[00:22:14] Drew Thomas Hendricks: Leave that one up. What you do need to do is illuminate us on this new affordable loans for first-time home buyer.

[00:22:19] Fred Glick: Okay. So, okay. Don’t get too excited kids. I’m going to explain the program and then come up with really an idea from that. So what the state of California has done, and we’ll get a link up for you so you can go there, is say, look, you make under X certain areas, you can get the 20 percent down payment.

We’re going to give it to you. You don’t have to pay it back. All you do is pay the 80 percent mortgage. You get it, you gotta be qualified for a mortgage and all that kind of stuff under normal conditions. So with the 20%, they’ll say, okay, let’s say it’s a million-dollar house. They put up 200 grand. You sell it in 10 years and you get 200 grand, 2 million for it.

So now you’re 200, 000 really became 400, 000 in equity for them. So they get a piece of the equity for giving you that money. So, now I’m going to harken back to the 1990s, 80s, something like that. So, disco. Anyway, there was a program that FHA had that was called, it was a shared equity program.

Basically, you can get somebody to put up your down payment, which then I think was two and three-quarter percent or something like that. It was a low down payment and they would share in the equity appreciation of the property. So I’m saying, why Fannie Mae, Freddie Mac, FHA, VA, USDA, private lenders, Wells Fargo, et cetera, why can’t you allow that now?

Who cares? Like you would do a 10 percent down mortgage that the people came up with the 10 percent of their own money, but you won’t allow for a 20 percent mortgage where you have now more equity, there’s more equity and it’s a less riskier loan where the other 10 percent came from a third party could be related or unrelated because this is a business proposition.

I’ll put up the other 10 percent for your house and when you sell it, there’ll be a second mortgage recorded behind the first mortgage. Just say, “Here’s the mathematics on how it’s going to work.” And that’s it. Why don’t they allow this?

It’s a rhetorical question because I don’t know the answer why they don’t allow. You would sell more houses. I know we’re in a thing now where it fires or whatever, but this is all those people who can’t afford the down payment or can afford 10%. But if you had 20 percent is no PMI plus your payment is lower, it helps make the payment too.

It’s just one of these things that makes so much sense to me that I’m sure there’s some inherent little reason that either nobody wants to take the risk out of doing it, or there’s some little legal loophole, or I don’t know. If anybody knows the answer to why they won’t allow this, please let me know.

That’s my rant.

[00:25:30] René Pérez Jr.: We’re talking about this Cali HFA Dream for All, right?

[00:25:35] Fred Glick: Yeah, but by the way, they’re gonna run out of money like instantaneously.

[00:25:38] René Pérez Jr.: Yes, but this is going to be different than the way it’s been done before. Right. So this first-time home buyer and patient program is going to be done as a raffle.

We’re in the, it’s as a first time, you know, first come first serve kind of thing. So what you need to do is get your credit up. You need to start the application, the pre-approval application and just stand by for the raffle.

[00:26:01] Fred Glick: Yeah. And there’s a list of lenders on the website.

[00:26:04] René Pérez Jr.: Yeah. Now the problem with this kind of, you know, appreciation share programs is that it’s not solving the issue of people wanting to move up in a, you know, a higher valued home later on in life, right? Because once you want to refi or sell a house, then you lose all the appreciation, a lot of it. So it’s only, and it’s only a cap of to like maybe homes are at the 700K mark.

Right. So it’s also not going to, you know, in California, you can’t really find anything that’s nice and in a big city or 700K. So

[00:26:47] Fred Glick: Maybe in Richmond, Oakland.

[00:26:49] René Pérez Jr.: Okay. But you’re mentioning a lot of, you’re mentioning a lot of neighborhoods that have a lot of problems and it’s, you know, appraisal.

[00:26:55] Fred Glick: Yeah.

[00:26:56] René Pérez Jr.: Properties that already don’t have, you know, the people, I mean, people need these programs in San Jose, right? For a better, better lifestyle in San Francisco, San Diego.

[00:27:05] Fred Glick: Oh, absolutely. I mean, you know, again, all the tech workers in the peninsula, in the South Bay. They all go to restaurants. They all go here and there and there’s workers there and where are they going to live? You know, it’s a problem. It’s a big ass problem.

[00:27:22] René Pérez Jr.: If you are a first-time home buyer and you know, you don’t have parents who have also owned because one of the qualifications is that your parents also don’t have any real estate. It’s a really good program and the limits are actually, the income limits are higher than expected.

I think in counties like San Francisco, it’s up to 180, 000 of salary. So it’s really, it’s really high in the actual.

[00:27:46] Fred Glick: Yeah, I guess in a good condominium because you can get a one bedroom down in Selma under seven.

[00:27:55] René Pérez Jr.: Yeah, But start now. So that’d be, you know, by the time the April deadline comes out, you can actually, you know, get involved into the process.

[00:28:06] Fred Glick: There you go.

[00:28:06] Drew Thomas Hendricks: It’s called the Dream For All program, the Dream For All loan. And there’s going to be about 1700 to 2000 of these loans put out and you get a voucher and it’s going to be,

[00:28:16] René Pérez Jr.: I think you have a voucher, correct?

[00:28:21] Fred Glick: Pardon?

[00:28:21] René Pérez Jr.: I think you need like, you have a year to use a voucher before it expires.

[00:28:28] Drew Thomas Hendricks: Yeah. I’m not sure how long it is, but yeah, you get a voucher that shows that you’ve got this up to about 150, 000 for your down payment.

[00:28:37] René Pérez Jr.: People always, reach out to us. I do get a lot of questions in regards to like, are there real estate grants? Well, this is a real estate grant, so you should look into it. It’s not going to be You know, the best possible free money out there, but it is some form of free money, right?

So it’s always, it’s free money with a catch. Remember that if you’re ever given something for free is because you’re paying something that’s not money.

[00:29:04] Drew Thomas Hendricks: Like the old phrase when I was in the finance industry, there’s no free bagels. All the mutual fund people would come in every morning with their bagels and a short presentation.

There’s no free bagels.

[00:29:15] Fred Glick: Well, let’s see. Last thoughts. What’s the last thought as we part on this January 25th recording today?

[00:29:24] René Pérez Jr.: Well, stay tuned for the market. It is heating up. If you’ve been staying on the sidelines for purchasing real estate, know that it will continue to warm up as the spring comes by.

But at the same time, there is much, much more inventory than we saw in the last few months. So that’s also good.

[00:29:41] Fred Glick: Yeah, stuff’s coming back, plus new stuff’s coming on. But it’s still darn competitive. We just lost one in Los Gatos. Went, like, two, three hundred grand over ask. We had a buyer who did analytics and figured out per square foot kind of thing, that it was only worth, like, fifty thousand under this price.

But I said to him, you’re not figuring in the emotion. And you can’t, you can’t put a number on it. It’s just, and there’s people with a lot of money who don’t care about paying a couple extra hundred thousand dollars, believe it or not, who just buy it because they want it. And you can’t compete against that if you’re trying to be a regular buyer in some of these.

And again, these are great locations, incredible school districts, you know, that’s where the insanity lies.

[00:30:32] René Pérez Jr.: Well, and you’re also, it’s like, we say this, you know, time and time again, square foot measurements for pricing if it’s a commercial.

[00:30:42] Fred Glick: Hold that thought. Drew, write it down. Next week’s episode, we’re going to talk about price per square foot and why you shouldn’t depend on it.

There you go. There’s the teaser for next week.

[00:30:56] Drew Thomas Hendricks: Price per square foot, episode 14 guys.

[00:30:59] Fred Glick: There you go.

[00:31:00] Drew Thomas Hendricks: On that note, everyone, thank you, everyone. Talk to you next week.

[00:31:03] Fred Glick: Goodbye. Episode 13. See ya.

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