Welcome Home with Monique

Kevin Krall 0:00
The content of this program is paid for by Monique Buchanan LLC. The content of this program does not reflect the views or opinions of 91.5 Jazz and more. Or the University of Nevada Las Vegas. You see me

Unknown Speaker 0:25
good morning. This is Monique Buchanan, the host of the welcome home with Monique show. And on this show, I talk all things real estate. Listen, I want to thank you for tuning in. Hello,

Unknown Speaker 0:36
hello hello Las Vegas. This is Monique Buchanan with the welcome home with Monique show. And of course I have yet again another great show for you. I've got none other than Miss Karen Johnson. Hi, Karen. Hey everybody. Hey, Las Vegas. And of course my other partner by the way, Karen's my partner and so it's Bilbao Sharif out of Atlanta, Georgia. Hi, Blau.

Unknown Speaker 0:59
Hey, what's going on? Y'all doing? Okay. And

Unknown Speaker 1:03
so if you guys have never been on and heard Mr. Blau, and this is Karen, let me just give you a quick look at them. Give them actually I'll let y'all give you a backdrop on exactly what your expertise is. In real estate. Blau, you want to kind of expand on what it is that you you focus on when it comes to real estate? No,

Unknown Speaker 1:21
yes, yes, yes, I have a heavy background and started as an investor myself. So I really help investors leverage up as well as we also assist homebuyers with the removal of home by relocating homebuyer first time homebuyer, you know, we have teams and so kind of serving as a team lead also with a business partner. So to Karen Johnson, with that team.

Unknown Speaker 1:47
Exactly. And how much you miss Karen, tell them what your superpower is. Oui,

Unknown Speaker 1:52
boy. HaCha you superpower that sounds so exciting. But I tell you when it boils down to it, I just love real estate. I think I've tried almost every genre, but where I've landed, I absolutely love development and land. And I still have a great affinity for homeownership as well. Yes, I

Unknown Speaker 2:12
love it. I love it. So you guys know that whenever I speak on anything, I do my absolute best to bring you nothing but the best. And these two that are on with me today. Let me tell you, they're hands down. Nothing but the best. Mr. Blau, he used to do is our yields Blau.

Unknown Speaker 2:29
Yeah, that started, you know, acquiring Oreos, and you know, fixing and selling them myself. And as the first one, not the first one of the last recession hit around. Oh 2008. I repositioned myself as a real estate agent and went directly with a team I use these utilize to acquire REO properties to help them expand their reo operation, and also plug in my contracting company to just about the preservation and clean out excetera. And, yeah, so reo. I'm a numbers guy. Acquisition and valuation specialist, because I was started in that thing. So I'd had to know my numbers. So I knew that they had to liquidate on the back end. But once I became licensed and learned how to do BPOS, which are broker pricing opinion, pretty much like a real estate agents appraisal, it took my crown of home values to another level. So I kind of pride myself on valuing properties and REO assets are near and dear to me, especially as we know, some of you may not know, but there are going to be quite a few hidden back to the market in a little bit.

Unknown Speaker 3:40
Right and exactly. So that's one of the things that I have you and Karen on for ism. The last couple of weeks, I've been preaching to my, my base, my listeners, listen, all of us that have purchased property, even just a year ago, you know, especially if you purchased within like five years ago, you're sitting on quite a bit of equity. And my last couple shows have been Hey, don't sit on the equity. Go ahead and put that equity to work for you start reinvesting those funds into you know, the current market. So that's why I invited you guys on you guys are from Atlanta. And by the way, it's because I'm doing this show out of Atlanta. I flown out here to be with Karen and Bullough for a real estate convention. And I want to make sure to do this show and take advantage of that. And then pat coming on the show with me. I can't talk anyways. Karen you specialize a lot in land as well. Is that right?

Unknown Speaker 4:35
Yes, absolutely. I love land.

Unknown Speaker 4:39
Yeah, so land is you know, like, like they say, you know, I forget what rapper was actually I think it was a jay Printz and listen by all the land you can because it's not making no more. Is that right? That's a good thing, right?

Unknown Speaker 4:51
Yeah. Never be more made. It is one of the most scarce possessions we can have. I think a lot of people don't think of it that way. But that's it, there's no more in fact, land actually decreases because of erosion, and all types of things. So it is a very precious item for all of us to get. land banking is so important. If you see land that you can afford to buy, regardless of it, she used, you know, just land bank, that means buy land, you know, try to put land together so that it can be developed in the future, but they'll never be a greater resource than a piece of property here on Earth. That's absolutely

Unknown Speaker 5:33
right. And so I'm from Texas, while I was raising taxes, you actually had a chance to meet my cousin from Waco, Texas last night. And yeah, and so we were talking about it, because just what, about four or five years ago, he bought a lot, not even an acre. He bought a lot for about $3,000. He said, Monique, last night, we were at the event. He said, Monique, do you know that I can sell that law right now for $30,000? So that's what I'm telling my audience, you know, I treat my audience like they're my family, like they're my cousins or something, you know, I want to try to just enlighten them on the different ways to go about go about purchasing real estate. Okay, so what I wanted to kind of talk about too, was investing, like we said, do a cash out refi you know what I mean? If you don't have the money saved, you can do a cash out refi and reinvest. I know, one of the main things in Atlanta I've heard is the Airbnb opportunities. Is that right? Is that one of your guys's hottest investments right now?

Unknown Speaker 6:32
It is it is Blough has really aligned himself even with some of the corporate leadership locally here for Airbnb, you want to speak more about that below?

Unknown Speaker 6:45
Yes, it came from exit national contacts that they connect with further works in local context here. And Airbnb is actually moving to one of their headquarters here. And one of our, you know, fellow real members is actually assisting them with that relocation move from us, specializes in commercial real estate. But yeah, and there are quite a few people that are really engaged in that as a strategy with Airbnb, you know, kind of house hacking, as they call it, as well. And it's a great strategy to help to build your portfolio and some people actually own and doing Airbnb and some are actually gonna, the home hacking with other rentals that also allow, you know, the Airbnb or or subletting or even rental access or short term. But you have to be careful on those. So I want people you want to make sure that okay, if you are getting the property in the first place to purchase and the real estate agent and professional they tell you that it's okay to to do short term rental and that's not okay with the HOA, you can end up in a little bit of a mess with that. And I think you may have been headed in that experience on one of those situations. Oh, yes.

Unknown Speaker 8:12
We had a listing in a really prominent community. It was actually a loft condo. And the young lady called me frantic because she purchased a year ago, when using another buyer's agent with the intent to Airbnb the unit. She's actually a celebrity makeup artist. And so she traveled all over the world, because she never had intentions of staying in that unit. 365. And when she began to listen to the property, the president of the HOA called her and was like, Hey, that's not you're not able to do that in this building. And they said did you look at your documents and you look at your HOA documents and she was like, my agent contacted someone she was told it was okay. And so we've got to be really careful with that there are a lot of different municipalities that have actually been just do not like Airbnb for whatever reason, and they will not it is actually prohibited or very heavily restricted. So you really got to do your research, you have to know you know the appetite for that homeowners association or condo association, even local municipalities now, in many cases are requiring the homeowner who chooses to Airbnb their house to actually go get a business license and list that property with the county or the city as a quote unquote business for Airbnb.

Unknown Speaker 9:47
I'm glad you're actually you know, talks about that I brought that up because a lot of people a lot of light so I've been getting a lot of calls from clients and listeners that are saying, hey, we want to do the cash out refi and we want to buy I Airbnb. Now unfortunately, I have to let them know that Las Vegas is actually on the list for no Airbnb. That is illegal. I mean, it's only legal if you do, like you said, Karen, you have to go get a business license, you have to live in the property. There's a lot of stipulations that if you want to do it in Las Vegas, the actual city of Las Vegas, there are some stipulations, some hoops, you have to jump through. And a lot of people are always shocked by that. But listen, I always tell me, the casinos don't want you in their pocket. You know what I mean? So it's doable, but there are definitely some heavy restrictions. Unless you purchase in one of the high rise. Buildings that I have access to, there's a couple of high rises within the city that actually allow you to do Airbnb, and give you a lot of flexibility and ownership. You know, you can do the short term leasing, they actually have management on site that can assist you in renting out the properties if you so choose. And by the way, guys, if you're just jumping on, I'm on with Miss Karen Johnson and Mr. Blau, Sharif, they are my partners out of it and Lanta, Georgia. So if you have family members, or anybody, if you're thinking about investing in Atlanta or just purchasing a home in Atlanta, please give us a call at 70298437007029843700 I will go ahead and connect you with either Blau or Karen. They'll take great care of your loved ones, or yourself and your investment. Like you guys know, I always tell you I've got I've gotten members and team members all over not just America, but in 18 countries. So you're covered. I've actually just got an A referral to somebody out in San Fernando Valley, and I'll be taking care of them out in California. So please continue to refer I do appreciate it, and they're gonna be well taken care of. Again at number 702984 3700. This is Monique Buchanan with the welcome home with Monique show. And my website is welcome home with monique.com. Okay, so let's jump back into it. Karen, you were talking about the Airbnb out in Atlanta is really booming. And Las Vegas is a hotspot, obviously, we've got the Raiders, we've got conventions, all throughout the year, we've got the strip, we've got Vegas, so obviously you know you're gonna win as long as you can do Airbnb, everybody I know that's doing it that did jump through those hoops, they're very happy with the return. And like I said, if you don't want to quite, you know, jump through all those hoops, I sold quite a few properties and high rises that will actually assist you in renting out the high rise. You can do Airbnb, if you so choose. You can just have it for your own, you know, vacation house, whatever it is that you want to use it for. And they come with an amazing amount of amenities. So I always try to talk about that as much as I can. Because I used to talk about the condos that were available. Very near to the Raider stadium and to the strip actually had quite a few that were under 300,000. Well guess what? I checked the other day for an investor. Zero. There's zero left. I'm telling you, no zero. Seriously, there's none. No condos that I could find. Less than three miles away from that Raider stadium right now for sale. I just looked yesterday. Nothing. So these high rise opportunities are the only thing that I see right now that's left. And guess what, guys? They're under 300,000. So you better hurry up because there was only about seven at that particular one. So that's why we're on today. I want to you know, chitchat with you guys about the Atlanta market. Now, how about land out in Atlanta? How's that looking? Karen? Well,

Unknown Speaker 13:40
you know, land has actually escalated in price just like everything else. In our market, we have right at four weeks inventory. And that is extremely low. A normal market and normal inventory level here would be six to nine months of inventory. And so the cure to that what many people believe is to go out and build. So there's a foot race right now and I wouldn't even say Lord, a rocket race where people are just running to buy land in droves, builders, developers, individuals investors, everybody's out looking for land now that can be potentially developed into rooftops. So we do have a shortage of residential inventory right now today, but there are a lot of things that you know, we see coming on the horizon that I definitely think we should talk about that will affect you know, that inventory rate all over the country, the number one right now it's still a squeeze there still not enough inventory. So hey, is the seller is having his way Right? Right. So that also airbag and yeah, and land is included in that. You know, so because everybody's running Get the land of course, it's a good old fashioned rule of supply and demand that we learned in high school. But there are a few things that are coming on the horizon, that I think all of us as investors as real estate professionals, and even consumers should just keep our eyes out on. Number one, we all see that inflation has really kicked in some prices, all commentators have shot through the roof in the last six months. Now, interest rates, they just moved in interest rates just made the first on the Rise, Rise, yes, in the last five years, I mean, literally, in some cases, a point in percentage, and other cases, a percentage and an ace, that's alarming to a lot of us because hey, the rates have been nice in low, they forget their rates will go up to three additional times this year. Depending on who you ask, and who the forecaster is. Some people say we might hit 5%, while other people say we should, we should land somewhere between 3.875 and 4%. Either way, this last year, folks have been getting interest rates in the 2% range between two and three, that's gonna make purchasing a home purchasing this investment property purchasing commercial property purchase and anything unless you have cash, it's gonna make it a more expensive purchase for you. And so what I say is, don't delay, especially the homeowners, you know, go ahead and make a move. Because even if the market begins to balance itself out and slow down just a little bit, it's still gonna cost you more

Unknown Speaker 16:38
to buy along. Right? Right. So I definitely tell them while you're waiting on a discount, the rates gonna go up, and you're not gonna get a discount. So if you're just jumping on, right, this is Karen Johnson and Mr. Bill Al Sharif. And they are just giving us some insight on the Atlanta market, which actually is very similar to the Vegas market, by the way, my number is 702-984-3700. So if you miss something, or you want to get in contact with one of them 702-984-3700 Welcome home with monique.com. What I want to also tell you is that people fly over Vegas, and they see a lot of empty land. And they think, wow, there's a lot of land in Vegas, but they're wrong, that that land is not available for us, Karen, it's actually a lot of it's owned by the BLM. So and they release it in small increments. So we're very land poor in Vegas. And that's why our builders are having such a hard time finding land to build on. And just like you said, supply and demand, we're obviously they're hiking the prices up and who pays for that? My buyers, my buyers pay for that. Well, I want to talk to you and bring you in on, you know, some other ways to invest, you know, the better investment opportunities as far as funding goes, Can you kind of give my my new investors because I'm trying to turn all my homeowners, you know, that listen to my show, I want them to reach out to me because they're gonna be my new investors. So can you kind of give them some idea when it comes to funding?

Unknown Speaker 18:12
Oh, yeah, absolutely. And that's what it's all about, you know, making that first purchase is a major milestone for most people. But once they do that, they are now putting themselves in position to not just own one but own multiple homes. I just had a conversation with a gentleman about an hour ago, he's like, had I met you in May, I may have needed to because I bought a home in June, when I say well, when you want to figure out how to expedite, you know, paying that mortgage off and avoid 1000s of either sometimes hundreds or 1000s in in extra fees by just paying directly to your principal and put yourself in a position to as you say get more equity at a faster time take off, you know, the private mortgage insurance or mortgage insurance premium if it was the FHA loan, and then you know, be able to either refi which is a good strategy, as you mentioned, but then also, if for some of my other people that have higher credit profiles and plenty of income, you can try your typical conventional lenders. And of course, there still may be some challenges based off the criteria that's changing right now. And I can interest rates that Karen and you just spoke up, you know, but I will say start there first, with more institutional conventional lenders that may have funded them on a on a first home purchase. There may be a better interest rates, but there'll be higher downpayment, a lot of times a lot stricter, a lot more paperwork. If you're someone that may be self employed and you just you know, that conventional route didn't work. Then you have also private lenders as well as hard money lenders. You All candidates, hard

Unknown Speaker 20:01
money lenders, for my, for my folks that don't know,

Unknown Speaker 20:05
I got you so private and then there's some of the private lenders also do the hard money as well. When we say private lenders, it's more so money that come together sometimes through investment funds also sometimes as funds or even other, you know, smaller banks or community lending institutions. And they will do give you a slightly higher interest rate sometimes right now, you may see about seven or 8% interest, but they will give you a 30 year fixed on the home that you're looking to buy that you want to rent out. And so they would do that based off the amount of rent they were based, you know, what the mortgage can be. So they want the rent to be roughly about 30% higher than whatever that mortgage amount is going to be. And on those types of homes, they want those to already be together to be habitable, not not needed, need a lot of renovation. And then when we start saying hard money, it's more for, I would say more for seasoned investors. Or if if you're not a seasoned investor part, I would say partnering with a seasoned investor, because most times they want you to have either some Navy contracting background or experience or experience flipping a property before you get started. And reasoning,

Unknown Speaker 21:25
connections, correct. I don't mean to cut you off. But do you have those connections? In other words, if my listeners are listening, and they're interested in that you do have a connection to the season? And that is correct?

Unknown Speaker 21:35
Absolutely. And we are seasons investors, our sales. So we also do facilitation, which we partner with investors and, you know, make make it a win win situation where we also split revenues on the back end, and they get a chance to learn and get that experience. So they meet on those projects. But the reason why they call it Yeah, absolutely, they call it hard money is because they're going to be a balloon payment, some lenders give you six months, which not Not, not most times today, but most time, they're gonna give you at least a year, sometimes two years, but it's gonna be an interest only payment, you're gonna have to pay, you know, typically, you know, one, two or three points, which is one, two, or 3% of the loan amount, you know, that'd be built into the loan, and then a downpayment sometimes are anywhere between 10 to 20%. And that's based off the after repair value of the home. So just to use, you know, some simple numbers, the lender will pretty much lead up to roughly between 65 and 75% of the ARV of the after repair value. But they will also give you the money to actually renovate that home as well. So your acquisition price, plus the cost of your renovation needs not to exceed 65% of the after repair value, or what the sales price is going to be. So if you're looking at a home, that's going to be you know, so let's say 200,000, you know, and one of the suburbs out here of Atlanta, because right now, pretty much everything is selling book 200,000, I'm just trying to get some easy numbers to throw out there. You know, so that's going to be about 130,000, all in to that hard money lender. So if you are acquiring a property for $70,000 acquisition price, that means you have roughly about another 60,000 that you can put in renovation and they will actually allow that renovation to go in escrow where you can make throws on that 60,000 to do the work on the home. And so while you're doing that you are paying that higher interest only payment, but it gives you a chance to not utilize all of your money, but then also use the bank's money to actually renovate the home. And so that's what hard money is.

Unknown Speaker 24:12
So thank you so much for allow and I know that was a whole lot you guys know it's a lot to take in. But don't worry if this interests you. And you're just like your mind is going crazy. But you're excited you're at you're interested in becoming an investor. Bullough has got you covered. Listen, like once again. And if you're interested in land or commercial, or even investment, Karen's got you covered so I can connect you with these folks. They will take good care of us. 702984 3700 Are you saying, you know the show is we're really quick. Well, we only have a couple minutes. Like I said, if this is something that interests you, I know it was a lot to take in, but I will connect you with the right people. If you're thinking about becoming an investor. I've got you covered 702984 37 times You can jump on my website, welcome home with monique.com. Or you can jump on Instagram at Monique Buchanan and I will get you with my team. They will take good care of you guys. Listen, one last thought Karen and Bill out. I know you guys hear this all the time. And we're gonna wrap our last couple minutes up which we only have about three. We're gonna last. Here's here's the thing that I hear a lot. Oh, I'm gonna wait for the crash. It's gonna be another crash like 2008. Everybody wait. Now, what do you guys who are actually in that crash working as realtors? What do you have to say to that? What are your comments on that? We have to wrap it up just a couple minutes. Karen?

Unknown Speaker 25:36
What crash? That's my comment there right now. I don't truly believe that there will be a quote unquote, class. I mean, crash? Will the market balance in slowdown? Absolutely. Will we start having you know, 20 offers and people paying 30 and 50,000. I was over list price? Yes. Because I believe that we're going to see some short sales and foreclosures bear to the market soon. But it won't be enough to cure our lack of inventory in many of our markets. What do you think?

Unknown Speaker 26:18
Yeah, I kind of agree with that. However, I think there will be some of some markets that are going to get hit harder than others. And a higher price point. But you know, as we talk specifically, since we're here in Atlanta, I tell people down in Atlanta not to hold their breath. Because Atlanta that the word has gotten out. Georgia has been named its number one place to do business for the last eight years in a row. Atlanta is a capital. It's also kind of what's considered a, you know, America for minorities down here. And we have a ton of people that are relocating down here, we have a lot of fortune 500 companies and tech companies that now have satellite down here. And because of the current situation that we're in, with the pandemic, a lot of things are virtual. So as long as a person can relocate within 30 to 50 miles of that satellite office, they also can work virtually. And so you have people, you know, from the West Coast, and north and east coast coming down here, you know, paying cash or looking at our market, because it's so affordable in comparison to some of the other markets that are absorbing a lot of ending inventory to you Karen's previous point. So you don't hold your breath. And not to mention the Beltline. People are trying to mimic the BeltLine, not only across the country, but around the world. And so that's going to keep our markets, you know, thrive and inventory getting soaked up.

Unknown Speaker 27:45
Right, right. And exactly. And so just like I said, big, it's very similar to Atlanta. I just had a client call me you know, about a year and a half ago, he said, Well, I'm gonna wait for the crash. Well, guess what, we're looking at a house now. And he's looking at almost half the house we could have looked at a year and a half ago. He said money can never happen. I gotta buy something now. So he came to his senses in Vegas. We have no state tax. We have legalization of marijuana. We have the raiders and more coming. It's not slowing down. And we've always had a very affordable housing market. Well guess what our average rent now today is $2,000. That's our average rent now. So that's where we're at folks. You know, now you guys heard it, not only for me, but you heard it from Karen and Bella. You know, they're in Atlanta. This is happening across the United States is not just Atlanta is not just Las Vegas. Am I right? Absolutely. All over the world, guys. Listen, that wraps up our show. I want to thank you guys for once again, coming on. Thank you so much for your expertise and your input. All right. All right, guys. Well, listen, I know I appreciate you guys have a safe safe weekend. Thank you Bill out. Thank you, Karen. Everybody out there God bless. Stay safe. Listen until I hear from you. Have a good one. Bye.

Unknown Speaker 29:09
Thank you for listening. This is Monique Buchanan my license numbers S 1788 46 and I am part of EXP Realty Tune in next week.

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