How To Talk To Your Real Estate Clients About Mortgage Rates • Learning With A Lender • Joel Schaub

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Welcome to the July episode of Learn with a Lender with Joel Schaub of Guaranteed Rate!

In this episode Joel discusses the rates going up and the importance of informing the buyers. Joel emphasizes the importance of agents checking their client’s profiles and making sure they’re qualified to buy property. Joel also talks about how agents should always inform their clients about the rates since it may affect their loans. Last, Joel talks about how new agents should always have information on their clients and a strategy for them.

If you’d prefer to watch this interview, click here to view on YouTube!

Joel can be reached at joel@rate.com and 773.654.2049.

This episode is brought to you by Real Geeks.


D.J. Paris 0:00
Today you’re going to learn what top 1% realtors are telling their clients about rates in inventory. Stay tuned. This episode of Keeping it real is brought to you by real geeks. How many homes are you going to sell this year? Do you have the right tools? Is your website turning soft leads and interested buyers? Are you spending money on leads that aren’t converting? Well real geeks is your solution. Find out why agents across the country choose real geeks as their technology partner. Real geeks was created by an agent for agents. They pride themselves on delivering a sales and marketing solution so that you can easily generate more business. There agent websites are fast and built for lead conversion with a smooth search experience for your visitors. Real geeks also includes an easy to use agent CRM. So once a lead signs up on your website, you can track their interest and have great follow up conversations. Real geeks is loaded with a ton of marketing tools to nurture your leads and increase brand awareness visit real geeks.com forward slash keeping it real pod and find out why Realtors come to real geeks to generate more business again, visit real geeks.com forward slash keeping it real pod. And now on to our show.

Welcome to a another episode of Keeping it real the largest podcast made by real estate agents and for real estate agents. My name is DJ Parris, I’m your guide and host through the show. And today, once again, is our monthly series called Learn with a lender with Joel shop from guaranteed rate. Now, Joel is vice president of lending at guaranteed rate. And he’s been doing loans at a high level since 2003. It’s his 20th year, actually 21st year. And he got to that level because of what he does specifically for agents, which is that he gives back part of his commission to the buyer on every transaction. And last year alone, Joel gave back over $300,000 in closing costs to buyers who worked with him. And that puts Joe’s volume in the top 1/10 of 1% of all lenders nationwide. In fact, there’s 400,000 loan officers in the country. And Joel is currently ranked number 137 out of 400,000, which is amazing. Last year, he did a tremendous number of transactions, his highest amount ever, actually. But this year, he’s already closed 157 transactions purchase transactions for just shy of $71 million. And if you’re looking for a loan officer, we cannot more highly recommend Joel he’s the very best we’ve ever worked with and he can be reached. So I want everyone if you’re interested in reaching out to Joel, you should be because he’s fantastic. It you can reach him a couple different ways you can email him. So joel@rate.com jvl@rate.com Simple enough, or send him a message on his cell, which is 773-654-2049. And we’re also going to talk about if you’re not currently receiving his weekly newsletter, which is fantastic because it gives agents really digestible talking points so that they can understand what’s going on in the world of lending with respect to rates, and maybe what the Fed is thinking and how the how the loan companies are reacting to that. And it gives you ammo so that you can talk more intelligently to your clients. And so definitely shoot Joel an email joel@rate.com asked to be put on his mailing list. And you’ll get those talking points every single week. Joel, welcome. Oh, I’m sorry. One more? No, that’s it. Okay. Joel, welcome to the show. Sorry, I

Joel Schaub 3:45
Am I no fanfare, but it’s just good to be back. And every single time I come on, it’s one of the best days of the month because we actually get to chat. We get to go through things that will help agents grow their business, and I’m just definitely happy to be here.

D.J. Paris 4:01
I’m happy you’re here too. And I it’s funny because Joel Of course, and his business is not immune to what’s going on in the market. We know it’s a challenging time for real estate with respect to low inventory higher rates than then we all would prefer. So it’s tricky. We know it’s a tricky year. But I loved I asked Joel just before on before he came on. I was like how’s your business? Because everybody I run into whether they’re a realtor, a loan officer and I almost everybody is like, Oh, it’s a tough year. And Joe’s like, you know, I know it’s a tough year but we’re actually doing really well. So I’m excited to talk with you because I want to hear about some of the things you’re seeing that’s working out there right now. Any edge that you can help give to an agent when they’re working. You know on the buy side or sell side possibly I’m sure you see opportunities both but let’s I guess maybe we should just first let’s let’s just get the rate question out of the way we know rates have crept a little bit up closer now to 7%. We know they were down a little bit last year. Last time we talked to in the mid 60s. So they’ve crept up a bit. How you know, what, what are your thoughts on rates and what realtor should be thinking about?

Joel Schaub 5:10
What’s funny DJ rate should have slowed buyers down, right if a payment on a mortgage on a 6.75% rate versus a 2.75% rate, but we’re just not seeing that we’re just still seeing buyers out there that are so strong. So in demand for properties, they’re just not finding properties. And that’s kind of comes back to the supply and demand issue. Right now, we’re having buyers still if it’s a hot property, coming in at full asking price and losing right or going above asking price, and lose. And I see this happening for the rest of the year until next year. We’re just not getting enough inventory to make it either a buyer or a seller’s market.

D.J. Paris 5:58
Yeah, it’s sort of that in between. And I wanted to read you something I found from Redfin. And no, you know what, I don’t have it in front of me. But Redfin did some sort of study. And I don’t know how accurate it is, I’m just assuming it’s accurate, where they said that they believe that once the rates get into the high fives, like I think, I can’t remember the exact specific number. But it was, it was, it was around five and a three quarter percent, right around there somewhere. And they said, as soon as that happens, and eventually we hope, of course, all of us hope it does, you were gonna see this mass influx, like that’s the that’s the buying temperature that people really want it to get to before buyers flood the market, which of course, if that happens, we have a whole nother set of problems, because then we have all these buyers flooding the market. So I think there’s a huge opportunity right now, and it’s a little bit of an uncomfortable, maybe opportunity. But I think the smart, the really, really savvy realtors are going to be talking to their clients about, hey, we know that rates are maybe a little higher than you would like. But here’s what happens when they go down. And here’s what happens couple of years ago, when they were at historic lows. Remember how hard it was to even buy a property then and we may see a you know, a duplication of that if rates even go down into the high fives. So I’m just curious sort of what your thoughts are, you know, we know the whole date, the rate marry the home, which I think is about as brilliant of a saying as exists because it is absolutely a smart play. But what are you seeing out there? What are you recommending to agents, buyer’s agents

Joel Schaub 7:31
are hear this all the time. And I want to make sure that we go through a concept where a buyer says, Well, I don’t want to buy it DJ, I want to wait until rates come down, right. And then just reminding the buyer that what happened when rates went down before now you have instead of three or four offers on every property you might have 10 offers on every property. So if you are able to make the payments on the mortgage, it’s still a good time to buy a piece of real estate. Now, if you can’t afford it, it doesn’t matter what the rate is, if you can’t afford the payment we shouldn’t be buying. So we want to make sure that we walk through the client’s profile and understand where they’re comfortable. Make sure that if they can afford rates that are in the sixes, when rates come down, they’ll have already owned the property, they’ll be able to refinance the debt even lower, and then just work with most banks that will allow you to refinance with no fees. Because that’s usually the next hurdle that people say is Well, of course I want to buy. But down the line, I don’t want to be charged 1000s and 1000s of dollars to refinance. And there’s plenty of companies not just mind that if you’re getting a mortgage, they will have no cost refinance rates down the line, we just don’t know when rates are going to drop DJ. And the feds are talking right now, as we’re getting ready to tape this, that by the time this airs, we’ll have another 25 basis point increase to the Fed rates. And we may still have one more to go. Looking ahead to 2024. There’s already calls for the first quarter of Fed cuts. So looking at March or April into next year is when we believe the feds will be cutting rates.

D.J. Paris 9:09
I think if I were if I were practicing agent based on what you just said, what I might do to talk to my on the fence buyers who are waiting for those rates to drop. I would I would go through the data and look back to when rates were in the threes and show the activity in my local market about what what what was the quantity of homes purchased in the price range of maybe what buyer that I’m working with. And look at the at just the production there. How many homes were listed, how quickly did they sell to make the case that maybe yes, maybe today of course rates are higher than they were when rates were much lower, but look at the activity now versus the activity that in other words, it’s a lot less competitive today to purchase a home. So I think there’s that there’s that a balancing act that Realtors need to think about is, let’s remember what rates were like sorry, let’s remember what what being a buyer’s agent was like, when rates were that low.

Joel Schaub 10:09
I just had a client last week call me and they already owned a condo, and they were getting ready to buy a move up property. And they were complaining to me that there’s just no inventory on the market. They just couldn’t find something that they wanted to buy. And then I asked him, I said, Well, what are you going to do with your condo, they go, Oh, we don’t want to list that. I have a rate of two and a half percent. I don’t want to list that. And I said, bingo. That’s the situation that you’re seeing. There are so many people that don’t want to list their home they have on it is now an asset. They are now below market. So why would we list this home, when I could collect rents on this home, right. And so this is where it’s going to change DJ, I truly believe there’s a lot of buyers that are in rates in the twos and threes, that there’s no way they’re going to trade up to a rate that’s going to be in the sixes and sevens, it’s too much to stomach. However, when rates drop down to the fives, it’s going to seem so much lower that sellers are gonna say, Okay, I don’t mind a five and a quarter percent rate, but I sure as heck didn’t want to take that 7% rate. And as soon as we see that, we’re going to see an influx of inventory. And that won’t be q1 of next year. But it’s coming, you guys, literally this is all cyclical. So we start to look and really think about what will happen in the future, there will be a lot more inventory on the market, when those rates come down to the fives. Because all of those sellers, just like my last couple that said there’s nothing to buy, well, they didn’t want to sell their home. So multiply that by 1000s and 1000s of other families doing the exact same thing. And the only time we’re gonna get additional inventory is when those rates come down. And that could be as soon as q2, or q3 of next year. So it’s coming.

D.J. Paris 12:02
Can we just quickly talk about and I know we’ve spoken about this before, but we do have new listeners every single month. Just really quickly for those that are uninitiated unfamiliar with this idea of a rate by down, which is a possible strategy to do right now, which will help make some of those buying those buyers a little bit happier for the next several years. Can we just quickly explain what that is and why an agent may want to explore that?

Joel Schaub 12:29
Well, a seller funded by down is the flavor and it comes in a couple of different varieties. But if the buyer themselves is paying for the rate by down, it doesn’t do the buyer any good, right. But if we can get the seller to give a credit, then the flavor that comes in and I like saying it like it’s a bunch of ice cream, right pick the one that you like, and it’s up to one rate by down which means in the year one, the rate would be 2% lower than the rate that was locked in. In the second year, the interest rate would be a full point lower than the rate that was locked in. And then years three through 30 The rates of the whatever we locked in. Okay, so let’s just take a perfect example, I had a client that was writing a contract on a $300,000 home, and they wanted to get a 3% credit to drive the rate down. Okay. So the interest rate at the time was 6.25. And if the seller were to give them nine grand, which is 3%, that more than covered a two one rate by down, which meant in year number one DJ, the rate the client had was four and a quarter percent. In year number two is five and a quarter. And then for the life of the loan going forward, it would be six and a quarter. And the strategy would be that sometime in the next two years rates will be lower than six and a quarter. Okay, we take it one step further. And I have a question for you. If the client is willing to pay nine grand more for the home versus not paying that nine grand. Do you think that the payment that they get on that mortgage would be better if they just took the lower price or use that to do a rate buydown? Well, that’s

D.J. Paris 14:09
what I was thinking and I I’m gonna I always guessed wrong, so I’m not going to guess but that was my way. My thought is why not just take the extra nine grand and not build it into the rate. So I’m loving. I can’t wait to hear your answer.

Joel Schaub 14:23
Well, on a $300,000 loan, your instinct was right. Okay. However, you’re going to be blown away by the dollar amount of savings of dropping the rate down to four and a quarter. So if they just took nine grand off the purchase price, right, and these clients were doing 20% down. So on a $9,000 reduction, their total payment dropped about $61 a month, right? Okay. I like $61 a month. But if they kept the nine grand as part of the purchase price, what we did was we used all $9,000 instead of spreading it out over 30 years. If we took it and put it into the first two years of the rate, that meant their payment dropped $410 In the first year, right, every single month, their payment was $410. Less. In year number two, the payment was still $224 A month less every single month. And then in year three, it was what they would have signed up for originally. And so it’s just a temporary solution to a real temporary problem. Okay, rates in the next two years, there’s no crystal ball, but we really believe that they will be lower, the Fed is indicating that they’re going to be lower. So let’s see if we can drive the rates down right now, during those first two years. If I’m an agent, I’m listening to this, what it means is, I might have been able to solve a problem for a buyer that said, I just can’t afford the payments with these rates. And you say, What if we got the seller to give you a rate reduction for the next two years? Oh, tell me more. I just heard about it on the keepin it real podcast, I know now how to do this. And you can actually pick up maybe one more buyer. Or if you have a listing that’s being on the market for too long, and it’s stale, why not offer this to the buyers, instead of doing a $20,000 price reduction, we could give a nine grand credit to drive down the rates for a buyer. So there’s all these things, if you can learn a little bit more, you’re gonna pick up another buyer or help a seller.

D.J. Paris 16:29
And this is a great time to mention that these are the kinds of tips and advice that you don’t just give us once a month on the show, which of course, we are so honored that you do, but also that you send these out to everybody in your database, in the form of these agent, sort of data points and Agent information on a weekly basis that any one of our listeners can subscribe to, to find this and literally get this force fed to them in their inbox once a month or sorry, once a week, so that they can then take that right to the to their client and seem you know, more knowledgeable and in the know. And so anyway.

Joel Schaub 17:03
Yeah, they’re hot. Yeah.

D.J. Paris 17:07
Now you’re making me hungry. But I would like I would always like some hot nuggets to be able to feed to my to my clients. And so the best way to do that, just shoot an email to joel@rate.com say, newsletter, please or newsletter, you know, just write newsletter in there, they’ll sign you up. And you’ll get this. And this isn’t a super long document that you get every week where you have to pour through it and look at so many things to actual, it’s really concise. It’s perfect for exactly what you need to know to be able to communicate intelligently.

Joel Schaub 17:38
Yeah, breaks it down and simple so that you can have one more piece of talking point when you’re out doing showings, you say, Hey, did you know about a rate by down? Or did you know that there’s other options in the market besides just 30 year fixed rate mortgages, right? Looking at Adjustable Rate Mortgages, looking at different terms on the mortgage. And in a way that’s not so cumbersome. We make it fun, we make it easy. And I’ve had such good feedback from agents that say I was actually able to get another buyer because of one of the information that you provided in the newsletter. So really, really powerful stuff joel@rate.com. And it’s as simple as if you’re driving, just sending a message saying add me to your newsletter, and then we’ll put you on and then you’ll get follow ups for weekly update, I want

D.J. Paris 18:23
to I want every one I want you to send an email to joel@rate.com get on his newsletter. And now I want to tell a story about you that I was just that just occurred to me that as you were talking, and I want people to really think about everyone listening, think about how to incorporate this into your own business. And so I apologize, I’m going to take over just for a moment because I want to share a strategy that I should be nervous. A little bit. No, no, no. So Joel was naked? No, he was not naked. So so this was during I want to say that in I can’t remember the exact timeframe. So Joel, you may need to correct me a bit. But But I noticed Joel was doing this, when several years ago when it was really It might have even been before rates went down. And we were kind of in COVID and everyone was struggling and no homes were transacting. And it was really tricky. And it must have been outside of COVID Because you were doing events. But regardless, this was a time in the market. I’ve known Joe for a long time. So I can’t again exactly recall when this happened. But it was a time in the market where it’s really difficult. So it’s kind of similar to now. And I was asking Joel cash, how are you doing? Because Joel is such a top one percenter that you know, any change in his business that dramatically affects his team and you know, he’s got a lot of responsibilities and and he goes you know, what we’re doing right now is we you know, yeah, in but you know, our transactions. This is years ago, our transactions are down, but here’s what we’re doing. And what he said was so simple and yet so brilliant. And it’s really paying off for him today. So I’m going to tell you something that is is is has worked for him to now be where most of the other loan officers are really struggling. Joel is actually thriving. So several years ago, I was asking Joel cash, you know, everyone’s down. And he goes, Well, what we’re doing is we’re putting our foot on the gas for a client appreciation events and Agent appreciation events. And I said, Okay, well, what does that mean? And Joel and his lovely wife, Christine, and their team that their team is amazing. They were doing you and Christine in particular, you guys are such a powerhouse team. You were doing events every single night, I think for a month straight, you had like two nights off, which of course, is a lot for anybody to handle. And I was like, Oh, my God, how are you doing? He goes, this is how we stay busy. During this time we do. We do events to make our clients feel appreciated. And we just hope that you know, down the road that ultimately will result in some business. And that’s not really the entire reason to do it. Joel loves giving back. He loves celebrating with his clients. And I thought, I don’t know any other loan officers that are literally doing events every single night for a month straight. And this is like kind of your life all the time. And obviously, not everyone can can do an event every single night. But I think this is the time to do as much of that stuff as you can, because you have some time. And I don’t mean Joel, of course, I mean, all of our listeners Joe’s already doing it. But can we just talk a little bit about the importance of these client events, I know they mean a lot to you, you really love doing them. And ultimately, you know, could that be one of the success secrets of your team?

Joel Schaub 21:30
It really is, it’s one of the things that if I’m an agent right now, and you have loan officers that are courting you reach out and find somebody who’s actually willing to do this with you. Okay, because the number one thing that you want is a true partner that will actually execute not just on the mortgage side, but also help you and RESPA compliant dollars to help marketing. So I can’t do it in every single state. But there’s so many realtors, where we are doing events for them, planning it, getting it set up, doing the invites, doing the catering, the food, the flowers, the bartender, and these don’t have to be major expenses, sometimes we get away with just a $600 event. And we split it, we each pay $300. I had one last week on South Michigan Avenue, a beautiful $4.2 million home and we spent about $6,600. But for that home for each of us to spend a little over $3,000 It really made sense. And so if I’m an agent, right now, I’m reaching out to one of those loan officers that I’m working with and saying, I want to do a party, I want to invite my clients, I want you to help me, and then find somebody that really will put their money where their mouth is. And this is why a lot of mortgage people don’t like me. Because I’m always the money preaching this go work with somebody that wants to support your business, all these loan officers call you and say I’m really good. We have great rates, I’m here to tell you, we’re almost the same. Okay, we really are. If you’ve been in the business a long time, everybody has good rates unless they have bad rates. Everybody’s fast. Okay, so what you want to do is partner with somebody that actually wants to help you financially, what a novel idea, right? And good loan officers will do that in droves. And it’s not so much having people come to the event DJ, it’s making the phone call and telling people, Hey, I have an event coming up. It’s the reach out in the touch. And that’s what makes all the difference if they can’t make it. Fine. But now you’ve connected with them. And you’ve done it in a way where you’re not asking for business. I mean, how many times can you call somebody and say, Oh, by the way, if you know anybody looking to buy or sell, send them my way. That’s old, that’s stale. That’s lame, go invite them to something fun, okay. And it doesn’t have to break the bank, but partner with a lender, or an attorney or a title rep or an insurance agent, get your team of people around you as an agent right now. And over the next couple of years. When you have people that are in your corner, you’re going to grow your business.

D.J. Paris 24:13
I want to just add to that to the team because I a couple nights ago was out in an event and talked to a divorce attorney and I always sort of forget about what it’s sort of an unfortunate position. You know, depending on on how you look at it. But you know, one thing we can say about divorces is they usually end up with somebody moving, maybe both people or certainly one person is going somewhere new and you know, in most situations, so I was talking to this attorney and I was and I said how did COVID affect marriage because of course it had to have some sort of measurable effect. And I expected him to say what he did say which was divorce rates are up. We all spent a little bit too much time with somebody that we weren’t I’m planning on spending in a smaller a small space. And some of us it bounded bounded us closer together and others about it took us further apart. And so my point is, is this is a great opportunity also to reach out to some divorce attorneys. They are very in demand right now. So it’s tough. But this is a great opportunity when you’re doing these events to say, hey, you know, would you like to participate? Would you like to come in and be there, and in a divorce attorneys again, are, are really, really busy right now. So that that’s an opportunity to to add somebody like that to your team. I wanted to also last, lastly, ask about oh, I wanted to talk about back to the client events for just a moment. Because one thing that I think Joel, you do exceptionally well, and I encourage everybody to follow Joel and I forgot to mention this earlier, follow him on social media, just called Joel is Instagram handle a Facebook as well just search for Joel, guaranteed rate just called Joe, you’ll find them and we’ll have links to it in our show notes. But you I want you to see the way that he takes these really generous events to really help you know, some some agents business, help their clients, you know, these appreciation events or parties. And I want you to see how effectively Joel makes sure that that he has people there that are photographing the event, he then takes those photos, he makes them look really professional. And then he sends them out via social media. And he tags the people in it. So they get notified that oh, I’ve been I’m in a picture with, you know, this event that I was just in, they may share it, they may comment, and you get a lot of marketing capital for just telling the story of hey, I just did this event. So it’s it’s, it’s the event itself, which is amazing for the people that are there. And then all the people that get to see this generous thing that was done. And you know, their friends are tagged in it or whatever also get to see the same thing.

Joel Schaub 26:49
It lives on more than just the night of the event. And that’s the whole point of this, right. So there’s a beat behind the scenes, which is leading up to it the phone calls and making sure that people feel invited to something that’s big and fun. And then it’s afterwards you have all the collateral, right? hire a photographer and the photographer’s don’t need to be expensive, okay? I think every time we do a photographer for an event, it costs us a couple $100 Max. And then they create the photos, they edit them, they get them back. And then I overused photos, I go back and I do photos from an event that I did three years ago, and I repost. And so I’m good about making sure that it lives on more than just the one day that you did the event. And as an agent, you can do the same thing to tagging your past clients and actually sending them out. During the holidays, a photo of themselves, there’s so many ways that you can leverage one event into something so much more so that you could literally be the man or woman in your community that people know when it comes to real estate. And again, it does not need to break the bank, you just need to get outside of this fear of Oh, nobody’s going to come or I don’t know what to do. Sit down and collaborate. Again, with a good lender lenders are big on helping so make sure that you find somebody that’s local that really works for you. And don’t be afraid, right? The biggest, you know, the biggest success stories were people that dared to fail. And I’ve done even just first time homebuyer seminars where one person showed up. But I’ll be damned if that person didn’t buy a home. And they did. So I’ve had first time homebuyer seminars were 100% of the attendees DJ, have bought a home and got a mortgage with me, right? And even if it’s just one, nobody’s too big to get one extra buyer. Okay, so go out.

D.J. Paris 28:45
And it’s kind of like going to the gym, right? You just have to commit to doing it consistently. And especially if it’s a client appreciation event, because you’re right, it could be just a weird weekend where you have this event planned and one person shows and you’re like, Okay, well this doesn’t work never doing this again. And Joel has done so many of these. He’s had massive successes, where everyone there, you know, is is buying and, and, and also big attendance. And then he’s obviously just mentioned low attendance stuff. And those are gonna happen to I mean, it happens on our podcast, some some episodes, we do get 10,000 20,000 listeners and some get 30,000 And then some get 5000. And I can’t tell you exactly the rhyme or reason to any of it. But if I if I looked at those numbers individually, I would cry or I’d be happy. But I don’t have a whole lot of control. And I think that’s the way you need to think about these client appreciation events. You do everything you can to get people’s butts in the seats, and you do enough of them to where you’re going to have some wins some losses. Either way, you just got to keep doing it.

Joel Schaub 29:43
I love that. And you just got to keep going out there and helping new buyers right. It’s not people that have already owned if you’re renting a place right now and you’re getting ready to buy. That’s one of the biggest segments of my business. It’s not people buying multimillion dollar homes. It’s truly somebody who’s never bought a home before, they’re just putting down 5%, or they’re putting down three and a half percent, and they want to feel taken care of they want to understand payments. And really what they want to understand is rates in this market, they’re fearful, am I buying in at the wrong time? And I always go through this analysis of what are they paying in rent DJ, and where we live here in Chicago, it’s very easy to have rent, that’s two or $3,000, right? It’s just not uncommon. And the interest rate on rent, I always like to say is 100%, right, the rate of return is 100%. Out the door, right? So none of that money goes towards yourself. And so I’d much rather have an interest rate of six or 7% than 100%, that’s rent to once we walk through that scenario. It’s something that you as an agent could use to, if you’re renting, every dollar that you pay in rent is interest. You don’t get anything back, there’s no tax deductibility. And you’re not building equity. So paying six or 7%, much better than 100%. And it leads me to this. Most people when they talk about rates, they’re just focused on 30 year fixed rates, but buyers really should talk to their lenders about all the options right now. Okay, because a lot of buyers since they won’t have rates for 30 years in this mortgage should look at adjustable rate mortgages. And I know that can be scary for a lot of people hearing that term, because they think back to the subprime days, where the rates were so low, and then they spiked up on borrowers in the first year or two. That’s not the case anymore. So an adjustable rate mortgage comes in three flavors, five, seven, and 10 are the most common. And having a mortgage that’s fixed for seven years, for example, that’s a long time. It really is. And we believe rates should be lower, probably in the next two years, even next year. So why lock in a 30 year fixed rate if you don’t need to?

D.J. Paris 32:04
And also, that’s a really smart idea. And also to I mean, I remember when I bought my first property, it was even in the coffers quicker. Sorry about that. I, I didn’t know anything about rates, the rate was what it was. And I think it was in the fives I think or fours, I can’t remember. But whatever it was, it was my first time buying I didn’t know that was high low. I just knew Okay, well, that’s what it is. Here’s what I can afford. And it just wasn’t even a thought because there wasn’t an option. I mean, I guess I could have waited, but I didn’t know anything about it. And so I actually think you’re right, I think talking to renters right now is one of the smartest things you can do because they most of them probably aren’t rate conscious. They’re not thinking about that. They’re just trying to figure out how do I move from renting to buying and, you know, they may be able to do it with these high rates right now. And again, less competition less buyers out there, they might get a better, you know, price on the home they’re going to go for because there’s less buyers. So I think this is I think that is such a smart idea to talk to everyone that’s renting and just ask them Hey, what are you thinking about in terms of buying? Are you thinking about wanting to do that? You know, forget about rates when are you thinking about when would you like to do it if we could wave a magic wand because it might actually be a good time right now. And that’s that’s the conversation I’d be having an I guarantee you nobody is calling those renters and saying that that realtors to pretty much only want to talk to renters when the renter picks up the phone and calls them and says I want to buy something. So here’s an opportunity to bring that to a renter who might not even have thought about buying at this time.

Joel Schaub 33:35
You’re exactly right, low downpayment deejay do not need to break the bank for those first time homebuyer programs. If a client is paying two grand a month in rent over the next year, they’re gonna spend $24,000. Let’s go buy a $300,000 condo, we’re all you need to put down as 15 grand. I’m telling you, if you can pay $24,000 over the course of a year, you can save $15,000 for a downpayment. Most people already do have it saved, but they’re still thinking that rates are too high, or they want to wait. And it’s not wrong. We’re just going to show them something that’s more right. All right. So there’s a lot of opportunities. Get out there as an agent, and speak to renters. Make sure that they know that there’s an opportunity to not be throwing all that money away in rent, buy something, subscribe to the newsletter. I’ll give you tidbits that will absolutely help you close more deals and we like to call them hot nuggets.

D.J. Paris 34:31
Well, to subscribe to those hot nuggets, go. Go to your email and type in joel@rate.com jvl@rate.com send him an email, let him know in the subject line. You want to subscribe to the newsletter and he and his team will get you signed up and they do good good work guys. It’s really really it’s like it’s like getting an abbreviated revert Reader’s Digest style. Nobody knows Reader’s Digest anymore, but an abbreviated version of a lot of complicated information but with enough detail Al, where you’re not going to sound unintelligent or uninformed, you’re going to actually sound really, really well informed, but you’re not going to have to pull out the textbook and start studying because Joel and his team have done that for you. So go to go to your email, send sign up for that. Also follow him on social to see how Joel takes some of this marketing collateral through all these events and how he promotes that on social it’s a great masterclass in promotion. So please do follow him just call Joel is his his username, but you can find him on all social channels, just look for Joel shop, and we will have a link to his social in our show notes. But Joel, this is a great time to wrap up. Also, if you are an agent, and you don’t have a great relationship with a loan officer, or you’re kind of like, hey, maybe I’ll see what else is out there. also reach out to Joel and his team and see if you guys could work together you know, guaranteed rate of license in all 50 states, Joel and his team can help you in certain markets, other markets Joel know who to, you know, to pass you over to but this might be a great opportunity to build a wonderful relationship with a loan officer who will actually help you grow your business as opposed to just be there when you need, you know, a pre approval letter Joel and his team do a lot, lot, lot lot more than that. So reach out to him and see if you guys would be a synergy and work together. Joel, thank you so much for your time today. I’m glad to hear that you your team is still crushing it. It’s always so inspiring when I hear agents doing well in despite, you know, sort of somewhat difficult situation or circumstances. And I love hearing that it’s such a great positive breath of fresh air. And I know it provides our audience with a lot of value. So thank you, of course, on behalf of Joel and myself. We also want to say thanks to the audience for sticking it out to the end of the show. Please tell a friend about our podcasts. That’s the best way you can help us and also one thing I always forget to mention support our sponsors. They’re the ones who pay the bills. We love our sponsors. We have great sponsors, check out their services and consider buying or you know, investing in the products they have. They’re always for realtors that are looking to increase their business and we only choose sponsors that we think actually can help you. So reach out to Joel joel@rate.com Get on his newsletter. Follow him on social and we will see everybody on the next episode. Thanks Joel.

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