Black Hole Of Real Estate Podcast
Florida real estate news, commentary, information, interviews, and market reports
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There Is A Noticeable Difference in FSBO... Episode 244
11/17/2025
There Is A Noticeable Difference in FSBO... Episode 244
There Is A Noticeable Difference in FSBO... ...and the data results are quite interesting In a market such as this One might think that homes sold "for sale by owner" Would be setting records - with regard to how many are doing it The fact is that records are being set just not the ones that you would expect The NAR - National Association of Realtors reports that in 2024 there was a record LOW set for FSBO sales Only 7% homes sold in America sold their own home A record was also set for homes sold by agents at 91% All of this despite a robust set of tools available for people to sell on their own what's even more suprising is that the numbers are even lower in 2025 the year to date data available shows FSBO sales at a mere 5% so why aren't more people selling on their own? digging deeper into the data we find the median sales price of a FSBO home is $360,000 the median sales price of a home sold by an agent is $425,000 40% of FSBO sellers invested $0 in marketing their homes these numbers on their own don't tell the whole story but they are certainly eye opening what's becoming very clear right now for most is that it's much easier to sell on your own when the market is hot and trending upward than it is to sell in a netural or a buyers market listen to today's show for the down and dirty details as I give some tips to those thinking about selling on their own
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Here's What No One Is Telling You About 50 Year Mortgages... Episode 243
11/12/2025
Here's What No One Is Telling You About 50 Year Mortgages... Episode 243
Here's What No One Is Telling You About 50 Year Mortgages... ...and the reasons that you may not want to dismiss the idea There are plenty of negative ideas out there that argue against this product And they have merit 50 years is a long time you may never pay it off in your lifetime 20 more years of interest to pay much slower equity buildup but let's examine a few things that may change your mind most people do not keep their homes 30 years about 95% of payments on a 30 year mortgage goes toward interest in 1st 5 years lower monthly payments help buyers qualify for the homes they really want buyers can pay extra each month as their income increases over time to reduce interest more money available to start a family less dependency on other forms of credit there is more than meets the eye on 50 year mortgages listen in to hear more details to help you make the right choice
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BRRRR Your House vs Flipping It... Episode 242
11/11/2025
BRRRR Your House vs Flipping It... Episode 242
BRRRR Your House vs Flipping It... ...a guide to making the right decisions to maximize profits Most people are aware of the home flipping process It's hard to miss all of those shows that have been created on the subject BRRRR is something that is far less familiar but is definitely worth a little investigation Buy - Rehab - Rent - Refinance - Repeat Let's face it pretty much everyone has at least imagined doing a house flip it sure looks like fun on tv and there is $$$ to be made what could be better? but when you take a closer look BRRRR might be a superior option lower taxes on profits total ROI is higher per property long term wealth strategy income for life playing with the "houses $" starting with taxes - I am not a CPA so do your own research just keep in mind that if you flip a home before you own it for 1 year and a day the tax due is based on your ordinary income rate which is most likely higher than the 15% long term capital gains tax by renting out the property you will have monthly cash flow profits that you can reinvest in more homes each property that you own will most likely increase in value in the long run and the rents should only go up over time the most interesting part is that when you refinance you may very well get all of the money back that you put into the property which provides the cash needed to do it all over again tune in to today's show to learn more about how to get started
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This is NOT The Time To Be On The Sidelines... Episode 241
11/07/2025
This is NOT The Time To Be On The Sidelines... Episode 241
This is NOT The Time To Be On The Sidelines... ...The Real Estate market is heating up in ways that some are just in complete denial of while others simply aren't sure of the dynamics in play It's actually a great time to buy homes and it's also a great time to sell homes This isn't just theory I am personally actively buying and selling in this market 2 properties sold in the past month 1 purchase closed and another offer in play right now to close in November and more of each to come before the end of the year and here's why... this is the most opportune time to make a purchase I have been saying this consistently over the past few months while the majority of home buyers are stilll hesitant there is a very active segment of early adopters making deals buyers are getting homes under contract with very little competition so why is this also a good time for sellers ? its simple - inventory is still low and prices are up in year over year comparisons I am not saying that the market is fully recovered what I am saying is that we are in the bottom of the trough and leading indicators are beginning to show an upturn if you are watching the right data and not relying on reports that are based only on emotions it might help you decide if its the right time to get off the fence tune into today's show for all the down and dirty details
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More Home Sales Contracts Are Being Cancelled... Episode 240
11/03/2025
More Home Sales Contracts Are Being Cancelled... Episode 240
More Home Sales Contracts Are Being Cancelled... ...and the very few things that are causing this to happen Recently released statistics have shown a slight increase of 1.5% in buyers backing out of home sale contracts when comparing year over years numbers for September 2024 13.5% of contracts were cancelled 2025 15.0% of contracts were cancelled the most common reasons for this taking place: increased repair costs from home inspections increased homeowners insurance costs increased flood insurance concerns hurricane season and other natural disasters job concerns and inflation in an uncertain economy and with the government shutdown entering its 2nd month we may see more sales being cancelled now before we send everyone into a panic mode 85% of all contracts are closing compared to 86.5% last year so the vast majority are still getting to the closing table intact and it very well be that things are not all that different than last year tune into today's show to hear my breakdown of what is really happening
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How To Maximize The Interest Rate Drop... Episode 239
10/31/2025
How To Maximize The Interest Rate Drop... Episode 239
How To Maximize The Interest Rate Drop... ...as Fed Chair Jerome Powell threw us a cuverball this week rates were lowered .25% at the October 28-29 FOMC meeting which was largely expected to happen what surprised many economists is the forecast that a rate drop at the December 9-10 meeting is no longer guaranteed due uncertainty caused by the 30+ day government shutdown scanning the financials this morning shows the average rate is about 6.125% down slightly from 6.19% last week as markets were pricing in the Fed drop something that I have consistently predicted since the last Fed Meeting and if a home mortage rate shopper was trying to time the market there are 2 scenarios that will play out over the next 6 weeks The Fed holds rates at the December Meeting: rates will hover between 6.125%-6.25% The Fed lowers rates by .25% at the December Meeting: rates will hover between 5.875%-6% My prediction is that the government will reopen next week military pay and SNAP benefits are running out of funds rapidly key elections on November 4 will be over public pressure will reach a boiling point and that will lead to a rate reduction in December and rates will dip below 6% to 5.875% as I have talked about for over a year the question for consumers remains will a .125% rate difference keep you on the sidelines? or have we reached the magical number on rates to move forward? tune in to today's podcast for all of the nitty gritty details
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Interest Rates Set To Drop Again.. Episode 238
10/28/2025
Interest Rates Set To Drop Again.. Episode 238
Interest Rates Set To Drop Again.. ...and the window of opportunity is opening wider for home buyers last week the national average was down to 6.19% for a 30 year mortgage and the 15 year note was down to 5.44% The Fed Meeting October 28-29 is likely to see another .25% rate drop Keep in mind that lenders have begun pricing in the rate drop in anticipation of the acutal move this week so its likely that rates go down a little more this week but not by .25% I anticipate that there will be another .25% drop at the December 8-9 meeting and there is a big possibility that at some point between now and then a 5.875% interest rate will be available to home buyers This is causing some real movement in the real estate market Year over year single family home sales for the month of September are up 13.6% condos and townhome sales are up 8% for the same time period Tune into today's show for the details on how to maximize your savings as I break down an interest saving strategy that is simple and effective
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The Luxury Condo Market... Episode 237
10/24/2025
The Luxury Condo Market... Episode 237
The Luxury Condo Market... ...Is Super Interesting Right Now Residential Single Family Homes are selling faster than condos in general this year and higher end condos have been the slowest selling in that segment a number of things contribute to that and when you think about it it makes complete sense * most people cannot afford to purchase one * many condos are 2nd homes * high end rental market is down * HOA Fees have increased * Special Assessments All of this creates an environment of opportunity for condo buyers looking for the best possible price and owners that absoutely need to sell even in a market such as this there is a price that will make sense for sellers even if its less than what they would accept in a different market today's show goes deep into how deals are being made
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This May Be The Most Opportune Time To Buy Real Estate... Episode 236
10/20/2025
This May Be The Most Opportune Time To Buy Real Estate... Episode 236
This May Be The Most Opportune Time To Buy Real Estate... ...which might seem crazy given the current market environment the market has been quiet everything in the sales process is taking longer interest rates are higher than most people would like the economy has prolonged uncertainty the government is currently shut down so why now? think about all of the above things in reverse when most people are running in 1 direction away from something there is great opportunity going in the opposite direction and yes there is also some risk involved if you choose to do that history has shown that the greatest transfer of wealth occurs in a down market not an upward market lets suppose that you were waiting for a magical interest rate ask yourself if we are actually that far from that number right now the same goes for home prices the price you may be able to get today may be lower than at any time in the next few years as interest rates are likely to be much lower and the economy and inflation will likely be better and people will be buying homes more quickly and more often there is a real reason to examine this further todays show breaks down all the details and then you can decide if its time to make the next move
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Pre Approval vs Pre Qualification And Why 1 Might Not Be Helping You... Episode 235
10/16/2025
Pre Approval vs Pre Qualification And Why 1 Might Not Be Helping You... Episode 235
Pre Approval vs Pre Qualification And Why 1 Might Not Be Helping You... ...there is a decided difference between the 2 and you need to know what that is A Pre Qualification letter is a rough estimate of what you can qualify for based on limited information provided to a lender: that may/may not have verified a credit report or seen any financial documents it most definitely has not been reviewed and approved by an underwriter in many ways, it may not be "worth the paper that its printed on" and a savvy listing agent will know what questions to ask the lender to see if their seller should even consider this buyers offer A pre approval is typically provided after: the lender has reviewed the credit report reviewed the income and asset documents calculated the debt to income ratio prepared an application package for underwriter review received any stipulations needed for final underwriting approval It quickly becomes very clear which is more attractive to a home seller but that doesn't mean that a buyer should always choose to get pre approved especially if they are in the very early stages of the home buying process a pre qualification letter may be sufficient to get started keep in mind that limiting hard inquiries will be important to keep your credit scores as high as possible and that when applying for a mortgage all inquiries during a 45 day rate shopping window only count as 1 inquiry pro tip: its rarely a good idea to make big purchases such as a new car when you are also trying to buy a home where you will need a mortgage its also a good idea to avoid applying for a bunch of credit cards while holiday shopping tune in to today's show for a whole bucket full of tips to increase your scores and give yourself the maximum opportunity for great rates and worry free approvals
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3 Step Process To Sell Your Haunted House... Episode 234
10/13/2025
3 Step Process To Sell Your Haunted House... Episode 234
3 Step Process To Sell Your Haunted House... ...a much different way to market you home during the holidays Typically you will hear that the best things to do are deep clean de-personalize de-clutter curb appeal But what if you wanted to have a little fun AND also attract buyers that loves your home for the same reasons that you do Stay with me on this I think we can keep deep clean on any list list and then pivot to a full on halloween decorating mission inside and outside you would certainly create noticeable curb appeal many cities/towns have house decorating contests entering this will create and audience of people to show off your home to and among them will be people considering a move to a new home wouldn't it always make sense to have a captive audience when you market your home to sell? It's hard not to notice the long lines of cars driving around to see all the homes that entered these contests defintitely make sure that you have some great things ready for Trick or Treaters once thing that you may want to do during the planning stage is have your photographer take pictures of the home before you decorate so that you will be able to transition to post Halloween market quickly or book them to come back a few days after if your home isn't under contract you can do the same thing with other holiday themes such as Fall Harvest, Thanksgiving, Christmas, and of course Pumpkin Spice Listen in to today's show for more tips for success
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The Next Interest Rate Drop... Episode 233
10/10/2025
The Next Interest Rate Drop... Episode 233
The Next Interest Rate Drop... ...will begin to take place after Columbus Day The Fed released their meeting minutes this week from the September meeting of the FOMC (Federal Open Market Committee) Much of the statement was focused on their signaling of 2-3 rate drops by the end of 2025 1 of those rate drops happened at the September meeting and its very likely that they will announce another rate drop at the October 28-29 meeting the question then becomes will the drop .25% as they did at the last meeting or will they be more aggressive and drop .5%? I believe that it will be .25% and that they will also drop .25% at the December 9-10 meeting I am watching this very closely and my belief is that banks will start pricing in the rate drop very soon and that it will play out the same way as last month where the whole .25% rate drop will be priced in before the actual announcement the same will likely happen in December and if you have been following this show you will know that I have been saying for over a year that rates will get as low as 5.875% by the end of 2025 and probably bounce back up to 6% we will be watching closely to see if the Fed's and Banks patterns of rate drops and bumps up continue tune into today's show for the details on how it will happen
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You Can Get Flood Insurance During The Government Shutdown... Episode 232
10/07/2025
You Can Get Flood Insurance During The Government Shutdown... Episode 232
You Can Get Flood Insurance During The Government Shutdown... ...but you will need to seek an alternative to the typical policy there is a lot of chatter about this that is incorrect and its causing people to believe that their real estate deals are doomed its untrue and its causing a lot of unnecessary stress for people the most popular flood insurance policies are government backed they are realtively easy to obtain and they are almost always less expensive with the goverment shut down those are not currently available what I would like people to know is that there are alternative coverages available that will satisfy most lenders requests and allow financed home sales to close on time its always recommended to review the policy limits and copays and yes these coverages will probably cost you more $$$ and if a buyer knows upfront they have the information to make an informed decision on how to proceed I have rarely heard from a home buyer 5 years post closing that was at all concerned about paying $1000 or so more for something unexpected at closing what they remember most is that they got the home that they wanted I cannot say with certainty what the acutal cost difference might be but I do know that there are at least 3 ways to pay for that cost 1 - The buyer can just pay it so that they can move in sooner 2 - The seller might pay it to close the sale and unlock the proceeds 3- The buyer and seller can agree to share the cost The 1 thing to watch for is the possibility of a named tropical storm entering into the area in such a way that insurance lines are shut down keep in mind that you do not need to keep an alternative coverage forever you can replace it with traditional coverage once the government reopens there may be some termination fees or restrictions but I don't think that it would prevent anyone from having options that make sense tune in for the rest of the details
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The Government Shutdown Just Affected Some Home Sales... Episode 231
10/02/2025
The Government Shutdown Just Affected Some Home Sales... Episode 231
The Government Shutdown Just Affected Some Home Sales... ...and you are worried that it will affect the purchase of your home Let's start by saying that most people believe that the shutdown will not last long and if that is the case, most home purchases will be largely unaffected But let's suppose that it does drag on for a couple of weeks or if it continues even longer than that home buyers that are using a mortgage to finance the property would have the most concern in these areas homeowners insurance flood insurance qualifying income if the job is furloughed cash to close if they needed to use their savings while out of work any of these could delay or completely derail their loan application and with that the home seller may also be affected if they were making a subsequent purchase with the proceeds of this sale there is a real domino effect that can cascade into a world of pain and problems for those that aren't under contract now its a real possibility that they pause their search and home sellers that are not on the market may delay putting their home up for sale until the situation normalizes into a more stable environment today's show lays out the details of the most important challenges buyers will encounter
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Choosing The Right Agent In A Market Like This... Episode 230
09/30/2025
Choosing The Right Agent In A Market Like This... Episode 230
Choosing The Right Agent In A Market Like This... ...is going to take some deep thought to get it right and it may not be the right time to hire a friend a family member a part time agent the neighborhood expert yourself and sell FSBO most people know someone that may have done really well a few years ago when the market was VERY different the majority of those agents are struggling this year and many now work a full time job in a different industry agents that have made a good living selling in a neighborhood or condo building that they live in are seeing mixed results as the market has been on pause for quite some time here are the questions that you should include when selecting the agent to sell your property now track record of recent sales online reviews quality of website and tools size of database of buyers marketing system to sell for top dollar negotiation tactics proven pricing strategy podcast and you tube presence today's show is real and raw - listen in and definitely hit the subscribe button
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Weren't Interest Rates Supposed To Come Down? Episode 229
09/25/2025
Weren't Interest Rates Supposed To Come Down? Episode 229
Weren't Interest Rates Supposed To Come Down? well...actually...they did right before the Fed Meeting announcement of a .25% rate drop on September 17 but the market had already priced in that .25% anticipated rate drop so when the Fed chose to stick with the that and not get more aggressive with a .50% drop the market went in the only direction that it could which was a slight rise in rates in the days after now before everyone goes off the deep end I think we are all gonna be alright rates are near the lowest that they have been in the last year and its very likely that the Fed will reduce rates again twice more before the end of the year watch for a .25% rate drop in October 28-29 and again December 9-10 that should casuse rates to be in the 5.875% range which we have been forecasting on this podcast for the past year if you are the gambling type and trying to time the market for the lowest possible rate keep a close eye on things right before the next Fed Meeting if you believe that the same thing will happen as last week where the rate drop was followed by a slight bump up that would be your sweet spot to lock in for most people - the idea of rates in the low 6's is welcome news and very few will attempt to time the market this could very well lead to new inventory hitting the market as the gap between the mortgage rates for home purchased in the last 5-10 years is narrowing with the current rates available most of the leading indicators are showing that rates will continue to drop tune in to today's show for the down and dirty details
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Renting Out Your Current Home Without Positive Cashflow... Episode 228
09/23/2025
Renting Out Your Current Home Without Positive Cashflow... Episode 228
Renting Out Your Current Home Without Positive Cashflow... ...Might actually make sense for many home owners I know, I know No one wants to lose money each month or pay for someone to live in their house but what if we took a closer look at things we might just find out that there is actually a gain in your net worth let's suppose that you mortgage payment is $2000 per month and your goal is to rent it out for $2200 per month so that you have $200 positive cash flow if you rent it on your own or hire a property manager to handle everything and at least break even sounds pretty good, right ? but what if the current rent is $2000 per month you would break even doing it on your own but not "make any $$$" and if you hired a property manager you would actually "lose $$$" a closer look at things might change your opinion a bit each month, the rent coming in would make the most of the mortgage payment and you would cover the rest of it by contributing around $200 its likely that your mortgage balance would come down more than $200 in this example, lets say the balance comes down $700 per month so you are now making $500 per month in equity, which is $6000 per year which only gets higher with each mortgage payment made then consider that your property is likely to go up in value 3%-4% each year for a $300,000 home, that is another $9,000-$12,000 in equity each year most people will have their CPA depreciate the property on their taxes which could also save you thousands of dollars each year add it all up and you are in the ballpark of a $15,000-$20,000 gain in your net worth and not really losing money at all I hope that this math helps tune into today's show for the rest of the details
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The Cost Of Buying A Home Just Went Down ... Episode 227
09/19/2025
The Cost Of Buying A Home Just Went Down ... Episode 227
The Cost Of Buying A Home Just Went Down ... ...As The Fed finally reduced interest rates at this weeks meeting which will lower monthly payments for home shoppers the .25% drop is the 1st one in almost a year it was a highly anticipated move and most banks had lowered interest rates in advance of the meeting so the rate reduction is already priced in for most lenders due to that we may not see rates drop futher in the next few weeks what I found really interesting is that Fed Chairman Jerome Powell signaled to everyone that the Fed is aligned to drop interest rates by .25% at each of the last 2 Fed Meetings of 2025 circle October 28-29 and December 9-10 on your calendar if you are trying to time the market for a home purchase oddly enough the rate drop also caught the attention of home sellers watch for an increase in new homes hitting the market as sellers will be more willing to trade their current low rate as today's rates are getting closer to what they have now if there is any downside to all of this it might be that those waiting for home prices to drop may actually see them continue to go higher as purchasing power just increased for most buyers check out today's show for all the details
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Closing A Condo Sale With Special Assessments Involved... Episode 226
09/16/2025
Closing A Condo Sale With Special Assessments Involved... Episode 226
Closing A Condo Sale With Special Assessments Involved... ...is quite common these days Taking the time to understand how they work and why they come about opens the door to the widest possible array of properties for a buyer to consider when condo hunting condo associations have monthly assessessments (HOA Fees) they cover common items such as water, sewer, building insurance, common area maintenace and may also include pest control, electric, cable tv, internet, among other things a portion of that monthly fee is allocated toward long term maintenence items such as the roof, balconies, elevators, exterior paint, parking areas that money is place into reserve fund accounts so that its available when those repairs need to completed quite often, these work orders come sooner than anticipated and there is a shortfall in the reserve accounts meaning additional money is needed the most common way to resolve the matter is to divide the cost among the owners let's suppose that there was a $500,000 shortfall for a major repair and there are 100 condo units in the building then each unit is assessed a $5,000 special assessment fee in some cases, the condo association may select to borrow the money needed this usually happens when an assessment would be more costly than most unit owners would want to pay all in 1 shot SBA loans are popular in these situations where the payment can be spread out over a number years $15,000 assessment could be paid for about $125 per month over 7 years while unpopular, special assessments are a very effective solution tune in to todays show for all the details
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For Sale Buy Owner In Today's Market... Episode 225
09/11/2025
For Sale Buy Owner In Today's Market... Episode 225
For Sale Buy Owner In Today's Market... ...is a strategy that can absolutely work for some home sellers most of which want to save the cost of real estate commissions long term data has shown that 12%-14% of FSBO sellers are successful they are typically very good at sales can pinpoint home values excellent marketers experts are negotiation proficient with real estate contracts but what about the other 85%+ of FSBO sellers? they fall into 3 categories those that linger on the market in perpetuity those that take the house off of the market while the majority hire a real estate professional oddly enough, there is solid data readily available that shows that sellers net significantly more $$$ at the closing when they hire an agent to sell the home the reasons that FSBO sellers quit is simple no one wants to pay their price they tire of the process they don't like lowball investor offers they don't like hearing negative feedback they get tired out people wasting their time listen in to today's show for all of the details if you prefer to watch a video this show
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The Jobs Report Just Changed The Direction Of The Market... Episode 224
09/08/2025
The Jobs Report Just Changed The Direction Of The Market... Episode 224
The Jobs Report Just Changed The Direction Of The Market... ...and interest rates are dropping faster than at any time this year A ton of news dropped on Friday 9/5/25 regarding the new job report numbers estimates as high as 70,000 new jobs were anticipated the actual number came in at 22,000 jobs created and the market went a little crazy almost immediately if you are considering a home purchase using a mortgage this is really big news as interest rates have dropped noticeably since job creation is down sharply this may be the catalyst for the Fed to finally drop rates for the 1st time in almost a year but they won't be doing it to save the housing market they will do it because new jobs that pay well are a pressure point and with a lack of them available, unemployment figures may climb inflation might also increase despite the Fed's year long fight against it the real news is that no matter how you slice it it's going to lower the monthly payment for most buyers that are buying now watch for the Fed to drop interest rates at their September 16-17 meeting most economists are predicting a .25% drop but my research is showing that the markets have already adjusted rates downward and since the rate drop is already "priced in" I believe that we will actually see a .5% rate drop by the Fed otherwise there will be little or no effect in the days after the meeting listen in to get the details on my data research
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This Real Estate Market Isn't Unique... Episode 223
09/05/2025
This Real Estate Market Isn't Unique... Episode 223
This Real Estate Market Isn't Unique... ...In fact it reminds Me of the post recession markets 2010-2012 Buyers are once again taking their time buying a home similar to back during those troubled times Which absolutely makes sense as the current market is seeking direction It's the biggest purchase most people will ever make And prices are much higher than the last time current owners bought a home its not easy for most to overcome the indecision and inactivity The Great Recession ran from December 2007 to June 2009 We clearly are not currently in a crisis level market like that one But rather we are in a market very similar to the 2010-2012 when it took a long time for properties to sell it took a few years of stagnant activity for the market to recover Which is the common bond between these 2 markets BUT here is where the markets are different and the reason that I don't see this market heading into another massive downturn back then - close to 70% of the homes were short sales or foreclosures traditional sellers that had solid equity in their homes and no financial issues were forced to sell at distress sale prices or they wouldn't be able to sell today a very small percentage of the homes are foreclosures and the majority of homeowners have significant equity as values have risen sharply over the last 5 years so there simply aren't a lot of homes that would be distress sales today 15 years ago, interest rates were lowered to 3%-5% in an attempt to get the economy going now interest rates at 6%-7% are much higher in an effort to control inflation that is a key differentiator with the anticipated interest rate drop at the September Fed Meeting we may very well be seeing the 1st signs of a market revival where an uncertain market slowly begins to take a new direction and with that, a lot of hesitant sellers will begin to consider putting their homes on the market which will get the wheels turning in a positive direction today's podcast lays out the scenarios that are in play
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Here's Why Some Feel It's Better To Just Rent For 1 More Year... Episode 222
09/02/2025
Here's Why Some Feel It's Better To Just Rent For 1 More Year... Episode 222
Here's Why Some Feel It's Better To Just Rent For 1 More Year... ...and are giving up on buying a home right now Time and Money it always comes down to those 2 things price and value always need to make sense on a BIG purchase and timing is a huge part of any decision for those that are renting right now and have an affordable place to live that works for them they could absolutely be tempted to avoid the time and cost of moving rent + security deposit + moving truck can add up quickly and it can cause a lot of people to feel stuck where they are the question then becomes when will the circumstances ever be 100% perfect to make the big leap? the answer is that its unlikely that things will ever be pefect there is a 1 time pain to own a home and it involves some change, in order to break a cycle of renting despite all of the challenges, there are still some that are focused on buying let's take a deeper look at the true cost of things 1st month rent can be similar to 1st mortgage payment security deposit from your current rental is refunded at move out you may have friends with trucks to avoid the cost of a moving truck you typically don't have a mortgage payment due the 1st month there are a number of scenarions where the cost owning a home is about the same as it costs to rent a home there are still people that believe that you need a 20% down payment to purchase a home with a mortgage when in fact that are a variety of options avaialable with 0%-5% down payments and in many cases, a monthly mortgage payment is similar to renting today's podcast get's down and dirty with the numbers and breaks down the financial impacts of renting vs buying
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Back To School Moves AFTER classes Start... Episode 221
08/29/2025
Back To School Moves AFTER classes Start... Episode 221
Back To School Moves AFTER classes Start... ...is happening more this year than in the past moving during the break between school years has tradtionally been the preferred path for most families The Summer of 2025 Buying season was really drawn out and in a lot of markets, it never really happened it wasn't out of laziness or lack of desire to move but rather due to economic uncertainty whats interesting to me is that the number of home sales that took place in August that will close in September is larger than usual in the markets that I work in Florida where the school year has already started why now? Fed interest rates have remained unchanged all year home prices have increased - not decreased its inconvenient to move once schools starts my suspicion is that many have tired of waiting out the market and have made a decision to move now as the pain of living where they are at currently is greater than the discomfort of making a move in less than ideal circumstances this is true for both buyers and sellers at this time yet each side is taking a 2nd look at things and are finding deals that can make sense to both sides and with that there is more certainty on what to do next which is what causes markets to move listen in for all the details on where the market is heading
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Mortgage Rates Hit A 10 Month Low... Episode 220
08/25/2025
Mortgage Rates Hit A 10 Month Low... Episode 220
Mortgage Rates Hit A 10 Month Low... ... even though the Fed hasn't dropped interest rates in 2025 So what is causing this to happen? I have some ideas pent up demand banks pricing in future rate cuts a slowdown in mortgage applications alien intervention The reality may just be 3 of the 4 things above are working at the same time Meanwhile, Fed Chairman Jerome Powell spoke at the Jackson Hole Meeting and intimated that a rate cut may be on the horizon leaving many people to believe that rates will be lowered at the September 16-17 Fed Meeting and if there is a .25% rate drop at that time rates many not drop afterwards as it appears that the market is already pricing that in to rates so it may need to be a .5% rate drop to see further decreases for consumers change is on the horizon It is abundantly clear that there will be a new Fed Chair in early 2026 and its looking like there will 1-2 rate drops between now and the end of the year a lot of home buyers got tired of waiting around for a small change in rates and have moved forward on home purchases at the prevailing rates many plan to refinance down the road while others feel that they may only be in the home for a few years and would rather own than rent today's podcast talks about the dynamics in place for those watching interest rates
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It might make sense to pay PMI when you buy a home... Episode 219
08/22/2025
It might make sense to pay PMI when you buy a home... Episode 219
It might make sense to pay PMI when you buy a home... ...despite what you may have been told Private Mortgage Insurance is used when a home buyer is financing a home with less than a 20% down payment It is not homeowners insurance to help the owner if there is damage It is a safety net for the lender of the home loan in case the buyer doesn't pay the mortgage and goes into deafult mitigating the risk of lending money with a low down payment it allows more people the opportunity to become home owners lets face it, it takes a long time for most people to save for a down payment lets examine a home purchase of $300,000 a 20% down payment would be $60,000 and "guesstimate" closing costs, insurance, and lending fees of $10,000 that is a total of $70,000 that the home buyer would bring to the closing table what if the buyer wanted to use a lower down payment of 5% a 20% down payment would be $15,000 and "guesstimate" closing costs, insurance, and lending fees of $10,000 that is a total of $25,000 that the home buyer would bring to the closing table a whopping $45,000 difference in the cash needed to close in order to do that, mortgage insurance would be put in place and it would add a cost of about $200 per month to the monthly payment thats about $2400 per year more paid out for the home and for many people, it's an acceptable tradeoff in many cases the home buyer can get rid of the PMI somewhere down the road they can pay down the loan so there is 20% equity they can do some renovations to add equity they can refinance the loan in the future they can sell the home and buy a different on with 20% down tune in to today's show to learn more about PMI strategies
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If I Was Going To Use An FHA Loan To Buy A Home... Episode 218
08/18/2025
If I Was Going To Use An FHA Loan To Buy A Home... Episode 218
If I Was Going To Use An FHA Loan To Buy A Home... ...I would be looking at the 3.5% down option FHA Loans have been around since 1934 They are sometimes called a 1st Time Buyer Loan The fact is that they are available to anyone But with the low down payment it is particularly attractive to 1st timers Sellers are allowed to help the buyers with closing cost assistance which lowers the barrier to make a home purchase most common is a 3% credit that can be used for: closing costs prepaid items such as insurance interest rate buy down lets examine a scenario where the purchase price is $300,000 the down payment would be $10,500 ($300,000 x 3.5%) and if the seller is crediting the buyer 3% of the purchase price at closing $300,000 x 3% = $9,000 credit so the actual $$$ to the seller is $291,000 before they pay commissions/closing costs the buyers lender will do an appraisal and it will need to come in at $300,000 or higher if the appraisal came in lower, such as $295,000 the bank would only be able to lend based on that amount this situation could be resolved in a number of ways: the buyer could pay the $5,000 down payment gap in cash at closing the buyer could ask the seller to lower the price by $5,000 the seller could reduce the price $5,000 and reduce the credit $5,000 they could each contribute toward the $5,000 Listen in to today's show for all the details
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If I Was Going To Use A VA Loan To Buy A Home... Episode 217
08/15/2025
If I Was Going To Use A VA Loan To Buy A Home... Episode 217
If I Was Going To Use A VA Loan To Buy A Home... ...I would be looking at the no $$$ down option VA Loans are available to Veterans that have their D214 Eligibility Certificate A program like this is a great way to get thank our Veterans Another great feature of this loan is that it is allowable for the seller of the home to help pay for the closing costs up to 4% of the purchase price can be credited back to the buyer at closing which can be used for closing costs, and prepaid items such as insurance the $$$ could also be used for an interest rate buydown which would lower the monthly payments and save on the cost of interest paid on the loan to give an example of how this works lets examine a scenario where the purchase price is $300,000 and the seller is crediting the buyer 4% of the purchase price at closing $300,000 x 4% = $12,000 credit so the actual $$$ to the seller is $288,000 before they pay commissions/closing costs the buyers lender will do an appraisal and it will need to come in at $300,000 or higher if the appraisal came in lower, such as $295,000 the bank would only be able to lend based on that amount this situation could be resolved in a number of ways: the buyer could pay the $5,000 down payment gap in cash at closing the buyer could ask the seller to lower the price by $5,000 the seller could reduce the price $5,000 and reduce the credit $5,000 they could each contribute toward the $5,000 Listen in to today's show for all the details
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If I Was Going To Use A 401k To Buy A Home... Episode 216
08/12/2025
If I Was Going To Use A 401k To Buy A Home... Episode 216
If I Was Going To Use A 401k To Buy A Home... ...I would start by learning how much tax would be owed when I take the $$$ out and I would definitely contact your 401k plan admin team for more info I always find it interesting when home buyers tell me that they are going to use their 401k to buy a home It's not that I think that its a bad idea as it can make a lot of sense in the right situation but rather that they have no clue that they will have taxes dues when they take the $$$ out quite often, its a clear case of amnesia when they put $$$ into their 401k it went in before taxes were paid on those earnings check your paystubs if your don't believe me the taxes due are deferred until the $$$ is taken out and when a large sum of $$$ is taken out a shocking amount of $$$ can be due at tax time lets suppose that your are in the 15% tax bracket and you want to take out $100,000 to buy a home $15,000 in tax is due and if the home that you want is $300,000 then $45,000 is due if you take out the full amount if you are a high wage earner in a tax bracket above 30% then you are looking at a tax bill of about 100k that would cause most people some discomfort most 401k plans have a way to take a loan out against your 401k and that can be used for the down payment on a home and a mortgage could be used for the remainder of the $$$ needed that is a strategy that works for many people today's podcast unlocks more tips on what goes into tapping into your 401k
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If I Was Flipping A Home Today... Episode 215
08/08/2025
If I Was Flipping A Home Today... Episode 215
If I Was Flipping A Home Today... ...my main focus would be the location of the home and it would be a desirable area for someone to live in so that I would have a large target audience when it was time to put the renovated home on the market this doesn't mean that the home needs to be in a $$$ million $$$ neighborhood an ideal location may very well be where homes are selling below the media sales price it would be attractive to a wide audience of owner occupied home buyers and would also be interesting to investors that want turn key rentals starting with the end in mind makes complete sense I would want to consider the marketing strategy to sell the home as I select the right home to flip among the many options on the market as well as when making the home improvement decisions and the materials to be used money is made and lost when it takes too long to sell the property the clock starts ticking the day that you purchase the home costs for labor and materials are obvious expenses in addition to that are taxes, insurance, permits, taxes and at the eventual closing you will be commissions and fees all of which eat into your return on investment tune in for all the details as I break down the path to profits when flipping a home
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