The Deal Killers In Real Estate

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The views and opinions expressed on this program are not necessarily those of this station JVC broadcasting management or its sponsors welcome back to another episode of cashing out I'm your host Billy Alvaro co-host Wayne Hart's heart we are easy sell property solutions located right over here in Holbrooke New York you can find us online at easy sell formal 1.com by phone 6 3 1 4 2 DZ coz how you doing brother how you doing I'm doing good doing good you just got back from a trip with your father and uncle and your cousin you went upstate the motorcycle action I did a little we do a little family gathering it's become like a tradition now we grew up for I've been going with my dad since probably I was 18 mara Kade yeah but now we got we booked my my uncle my cousin involved so it's pretty cool thing I love it last remaining a couple of hot rods laying around here and we go out and we cruising the bikes barricade bike we go up and Lake George very good cruising the bikes without the old ladies a little male bonding experience it's nice roads up there you don't feel like you're I mean it's just nice you can actually ride I mean when I lived out west forget about those roads are out of control but then you gotta get up there to get some good riding that's too packed people Rania well now it's crazy to speak about Long Island if you have a property you want to sell give us a call 6 3-1 Ford it easy if you don't know us I don't know how you don't know us we're Billy have our wine hearts are easy sell property solutions we literally been buying properties out here for the last 10 years we're going through a nice expansion not rapid but we're growing nice and steady consistently each and every quarter today what I want to talk about I want to give value to the people out there who is selling the traditional way right because it's we're not right we're not the right fit for every single person out there you know we get a lot of phone calls and sometimes you know it's just not the right fit so what I want to do today is I want to educate the home sellers that are gonna be going through the traditional way which is generally through realtor that process and what is some of the challenges that they may be facing so want to outline them and then we'll break through one by one right so the 5 challenges that I've come up with that they seem to be the five that are always deal killers for the home sellers not a not when we're buying but when they're listening through realtor here's the five that I came up with the inspection issues there's always inspection issues have to go through we're gonna break these down one by one number two is the property issues which is going to be CFO issues you know variance issues with with the survey stuff like that number three is the mortgage issues appraisal issues and number five is gonna be the title issues so let's break down one by one so the sellers that are out there that are looking to sell their property I want them to be fully educated on the whole process of what they're in for sometimes these deals go through one two three 100% perfect there's no hiccups no issues which is not the norm there's always issues with everything so let's break down the first one inspection issues right so if you're selling your property through ditional way you have a realtor you have to put the house in the market you get a couple of open houses

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You get an offer once that offer comes in what happens you have folks that buyers are gonna do a home inspection on your property and basically they're gonna pay somebody to come in and turn your house upside down I mean they're paid there to find problems to find problems inside your house and sometimes it'll exaggerate some of them make them worse or sometimes they'll find a ton of problems that really are issues they're going to shine light on those I mean you're gonna get a hundred and fifteen page report done on your home and they're gonna turn it upside down and dependence Peck yes and there's some terminators out they because we use them you know we purchase our properties we recommend them so they find everything I know you're thinking out there Arliss and you know we got these few things that were hiding mold we're hiding this we're hiding crack found it they will find it let's go somebody deal killers write that these inspectors will find right so crack foundations it's a big one yeah you know crack foundations is gonna scare a traditional homebuyer because they're like you know I don't want to be dealing with the crack foundation have to Jack the house up it's it's overwhelming for somebody who's a first-time homebuyer or even the second home buyer who's gonna live in their property for us as investors it's an everyday everyday thing we do it sit over there yeah but if we provide one house every 30 40 years a one in our whole life it's a lot when you get a 515 page report about all these things and all these recommendation I need to be done and all these things I actually have to be done right away or what about the bolt what about the mold the mold is what molds issues in the basement everybody's basement people don't realize you have to have a team in a fire running in your basement literally 24/7 all the year and I on you underground folks most people don't think that and we learned that the hard way if you have more than 50% relatively minute in your basement malts gonna grow people don't even realize that even if it's not that big of a deal with the mold we're not talking about the black Salon CMO we're just talking about regular surface mold it is gonna scare homebuyers absolutely scare me all the black mold stocky Badgers sasquatch is usually behind the wall sometimes people don't even realize it but these will find the inspectors usually will shine the light on it well we're buying it's never an issue with mold with crack foundation what is so many of the issues that the inspects it's gonna happen aluminum wiring yeah that's coming up a lot now it is there was a point in the 70s where a lot of houses were built with aluminum wiring on the mountain and it's an issue it's a fire hazard dis concerns there's a lot of other issues they could find you know non grounding reverse polarity certain things that these you know inspectors they're they're trained to find it that's their part I mean they're gonna go in they can open up your panel they're gonna look at everything if it's up to code and a lot of things we're done on you know not to code years ago how about termites termites is Ujamaa huge on Long Island we've had some house where I can mazing we open them up they're riddled I've had houses that we can literally pouring through the wood the wall the whole whole wall comes out of the outside I mean the sheathing folks is the outside of the house like it literally just caved in these are houses that if you're selling the traditional way through a realtor with somebody who's buying it with a mortgage I can tell you 100% with 100% certainty that it's going to be an issue and those people are gonna be end up backing out and so if you if you're selling that way just realize if you have a house it's in mint condition everything is 100% perfect that was built five years ago

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You're not gonna experience these issues and you shouldn't we really speaking to the group right now with this one with the home inspection the older homes and there's a lot of older homes in Long Island oh my god eighteen hundreds nineteen hundreds early nineteen nineteen twenty in 1930 even in nineteen fifty homes we get a bunch of those and most of the neighborhoods were built 50 sixties yeah that was a big boom at the big time you know the baby boom what does some of the other issues on the inspection side they get a dig in the face they look for you know thing that comes up a lot is the older homes have a lot of galvanized piping and it literally just deteriorates so that's a lot of noise coming up in another one that's that's big I mean literally you pipes can just disintegrate at this point you know now we have PVC now we have packed certain things it just falls apart it's become Britta landfall departs when people stay away from that big mechanical issues or that you know the inspectors are always looking at it those are the big-ticket items they're looking at you know your boilers your furnaces your air handlers you're right your condensers that you know they're they're they're expensive ticket items so when you see those big palaces like our listen are you in your house maybe only 16 20 years old but those have a shelf life of like 15 years 20 years and those are big ticket items those guys gonna mark it out and say listen this is towards the end of its lifespan you're gonna have to get new stuff in and you're like whoa it's another 15 16 17 20 grand to fix all this type of stuff and then it's it now they want a discount in price right so hurdles so hurdle number one issue number one if you're a home seller selling the traditional way realize that you have to overcome the first hurdle which is the home inspection for the person who's buying their property when you're selling to somebody like us an easy sell property solutions we have a process called the easy way out it's literally the fastest easiest most hassle-free way to sell your property why because we're not going to come in we inspect all of our properties but we're not going to come in and back out of the deal because the property is has a cracked foundation it has a second story which wasn't you know with the CFO it has termite damage and that's mold and we're not gonna back out we just want to know what those issues are so we know exactly what we need to do in order to bring it up to 2019 code and standards so the next issue that we have before the the mortgage piece is the property issues so they go through the inspection which is just gonna show them what the issues are with the property if it's if it's functional or not then you have a whole nother piece which is is it legal CFO's let's talk about those are big folks a lot of times people like Billy just mentioned they put second stories on houses without a permit they put extensions on they put decks pools finished basements I mean you name it a lot of people didn't care they did what they did and all of a sudden now I go to sell my property and I survey comes nobody wants to get a mortgage and I'm like oh no this is legal and you have to legalize it yeah and legal here's folks I mean most of you already know what the towns are and I get the towns are very very challenging when you go to them now and you have to say listen I want to legalize something from 10 20 30 years ago it's an issue because they want to bring you up to today's code not when you built it 20 30 40 years ago so it's a concern you know let's let's go let's go and push on this because it is a process and for the regular homeowner out there who's selling their property who now is facing the fact that they have whatever it's a dorm at home which wasn't put out on the CFO it has an addition a converted garage it has an additional at the back of the

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Home it has a converted basement in the living space when you go to sell their traditional way to somebody who's getting a mortgage and that attorney the attorneys review everything they're gonna want to make sure everything's legal so now it falls on you the home seller to make sure everything inside there probably is legal and what you're gonna have to do in certain towns all the towns you're gonna have to put in for permits you're gonna have to get a survey you're gonna have to get architectural plans depending on what was done to the property you're talking about expense harassment expense overwhelmed expense over well it's just a process that nobody wants to deal with and they're overwhelmed when you sell to guys like us at easy sell property solutions we don't care yeah we know about it we do our research but we don't care because this is what we do for a living so hurdle number two is a challenge especially in Long Island there's a lot of problems with these properties that we we're buying every prop every property we buy I'd say 80% of them or problem proper salute lee in one way or another there's a problem underlying issue with the home what do we do we take the problems off of your shoulders and we take we take care of them put it right out and let us let us take care of the problems we're we specialize in this we'll go and we'll get second stories legalized we'll get all the stuff done you do not want to deal with the town's trust me folks you do not as you just mentioned you're talking plants architects you're talking inspections making them rip open walls I mean there is what you're getting the bottom line what we were making is it's a freaking hassle yeah it's a hassle hassle and expensive you don't want to be happy if you don't want to have the hassle and you don't want to have that expense and you want to sell your property the fast and easy way call us at six three one three hundred easy however if you want to sell your home the traditional way this show is meant to educate you so you know the hurdles that you're gonna have to face and overcome we'll be right back right after these messages welcome back this is Billy Alvaro Wayne Hart we are easy sell property solutions we're located right over here in Holbrook New York we're talking today to the people out there who want to sell their home the traditional way we're giving you some really good value just telling you exactly what you have to watch out for what you what you should expect and the hurdles that you're gonna have to overcome right so in the first segment we spoke about the inspection issues and the property CFO issues let's talk now on one of the issues that really kills a lot of deals right so so picture this for a moment you have your house in the market you've cleaned it out you've listed it with the realtor if you spent the you know the last two months marketing it having open houses you finally get that buyer that that is mortgageable they come in they give you a good offer you go through the inspection process and you passed the first hardier like I got it thank God got through the first the second hurdle with the property issues you have none everything is good you you have no CFO

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Issues no second stories no problems at all you like ma'am but this is gonna be great sailing smooth sailing we have a feels like 60 days down the road everything is going smooth you're packing up you have another home you're buying you're moving to Florida whatever your situation is and now what happens all of a sudden 15 days before the closing you get a phone call from your attorneys paralegal and they say mr. Johnson I got some news for you this the buyer of your property unfortunately just got denied for his mortgage and your mouth drops right open and you're like what the hell is going on this guy was approved well I'm sorry to tell you his credit score was dropped because his wife went out and he went out and they bought furniture for the house and they dropped their credit scores by 40 points this happens all the friggin time so so here's the deal guys when you passed the first two hurdles and you think you're at the home stretch you have to realize you have to realize that the mortgage process and there's another piece that it's the appraisal issues which we're gonna get into but the mortgage process is critical I used to own a mortgage bank I've trained my cousin and the staff he runs a tight ship over there on how to underwrite these files to ensure when we sell what we're renovating and selling to an empire that we get these these buyers approved so we can close and we still with everything we know we still have challenges selling our properties because people want what happens they go out they buy stuff it's amazing they'll go out and release a car I mean is every mortgage loan officer nightmare they'll go out and buy furnish like you said we'll take out a new credit card be at home you know what the Home Depot everybody owns stuff they're gonna be ten percent back I'm right it kills they could I'm gonna go over to Ashley Furniture we got a prepare honey we got to get oranges or something happens with the loan officer up front and this is this is scary because some of these loan officers not all is this good and bad in every single industry but some of these loan officers do not know their freakin ass from your elbow and they give these BS pre-approvals thinking that they're Priya you're thinking they're pre underwritten it's a pre-approval they go through the whole on the writing process and their credit scores didn't drop but now their debt to income ratio is completely off and they can no longer afford your property he may have he may have miscalculated the taxes he may have said you qualify for the home thinking the taxes was six grand but your taxes really the buyers taxes are really ten grand which blows out his debt to income ratio yeah so the hurdles you have to face when you're dealing with this it's serious it's a process it's a problem but a lot of Realtors don't go over this with the home sellers they just say this is the value we're gonna get this is the number we're gonna get they don't tell them the problems so the home sellers are actually educated enough to realize what the next steps are the the attorneys very rarely go through this way now it's amazing a most real desert folks if you're out there my entire team when it comes to me when we're selling the properties I want to know we want to scrutinize every single buyer I want to know what they're doing for a living what their credit score is what their DTI is I want to know where the down payments coming from we want to know so many things and we do that we have to check that stuff and we've still been stumped after even though I checked this this is when we're selling from it when I'm selling probably so folks you gonna do the same thing when you try sell the pot you want to know everything about

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This bar cuz what's going to happen is if you don't know this like they were saying sometimes people give a fake pre-qual it's basically a piece of paper saying hey listen mr. Johnson called me and told me it's a piece of toilet paper basically white dress basically said hey listen mr. Johnson called me and told me he makes $100,000 and he has this amount in the bank and he's credit score is this so based off of that we're gonna prove him for that they saw that documentation on the right I'm sorry it's an amazing so like it I'm Cole and I would verify and I have to instill even if we verified all of those hurdles they could still do it you're go out and buy something screw that up they could make a mistake they could do a lot of things and that process because I can't hold we can't handle Holt you know handhold them for the night but now listen now selling their traditional way realize that's hurdle number three when you're selling to a cash buyer we don't we come in we so one of the things that we do to ensure that our cash is available and this is key I'm actually not gonna say it I'm not gonna say because but we do things to make sure that our money is 100% available so we have the money when we close we don't have to go out and get pre-approved we don't have to get underwritten when we have an agreement that money is automatically 100% allocated to your property so if you want to close in two weeks two months one nine months down the road you're not gonna have to worry that we're not gonna have we're not gonna have the money to fund this deal the money is always gonna be there in a side account as soon as we agree to the terms of the price and it's signed it automatically gets allocated into a separate account specifically for your home so it's that's challenge number three we only have five minutes left so I want to burn through these challenge the ladder challenges so you you're you're getting through these humps right let's just say now that everything is still smooth you your mortgage commitment comes in the mortgage commitment comes in there's a whole nother piece to this you have your appraisal piece and you have your title piece let's talk about the valuation and let's talk specifically on the FHA side on what happens so this is a challenge right this is a challenge in this the way we are right now we're not no longer in a market where we're going up like this it used to be a couple years ago the values are going up so much that you had an offer today it was guaranteed that the appraisal was gonna come in at the number you needed however now the environment that we're in you get an offer on the property you accept it it's a high offer you if you're like I love my realtor this is feeling you're feeling and everything is good you're on that high and then what happens is the appraisal comes in it comes in $25,000 low yeah it happens all the time you said won't come in 40-something canarios you're finding it folks on top of that what's even coming worse is now we wires are trying to get tells concessions on top of that but let's just touch on the FHA if the FHA comes in light you're stuck with that appraisal it's stuck with the house but if it's six months I think we're 90 days with six Mike you remember the number so it's C its season and now you trouble so now if you want to sell to somebody else you got it then make sure you go conventional or a different type of loan because it's gonna be stuck with that particular properties so the FHA loans are challenging now and everybody's taking them out I get it you know it is typical gets clear the the challenge with the FHA is that appraisal

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Numbers sticks with the property for either three or six months I'm not 100% positive but if it's even if it's a conventional or a non conventional loan not FHA and the appraisal comes in low you're thinking everything is good but now you have to take a major hit on the sale of that property or you're either gonna have to go find another buyer that's gonna use a different appraisal company or you're gonna have to take in this case where you just had one come in $40,000 light that's a lot of money mmm think about this we have three and a half minutes I want to burn through now so we have the inspection issues when he's selling to a cash buyer there are no inspection issues you have the mortgage mortgage issues that when you sell it with cash buy there are no mortgage issues you have your property issues which is CFO's and extensions when you're selling to a cash buyer there aren't them when you're selling traditionally you have to make sure you have the availability to jump through these hoops the appraisal issues we spoke about let's talk lastly now about title issues this is a deal-killer all the way around and I'm gonna I'm gonna lump in title with survey I'm gonna put those two together so let's have an understanding of what this means so you could be clear with everything your mortgage is clear appraisal came in inspections went good now you have the title company as the legal side and they're saying hey there's judgments attached to the property there's a mortgage that we can't locate which is attached to the property and you which is an old mortgage from your whatever from 20 years ago 18 years ago there's a survey that was done and your property lines are off by 10 foot all of these issues that do come up especially on Long Island and New Jersey with a little especially with the survey piece are issues that are going to cause your property to either get not close or you're gonna take a major haircut off the sale view of your house what do you have to say about that happening all day folks so I added possessions are huge when it comes to the property line so we know that that comes up all the time people are fighting over you know 10 15 20 feet who's moving fences who's not gonna move fences who wants affidavit signed and they got neighbors fighting for weeks and at a time because nobody will agree to move anything so I mean you could just get stuck on something so simple like that a survey comes out he says listen you offenses are off 10 15 20 feet that's a simple one simple one that's a simple one but sometimes the attorney and it will go on weeks and weeks and weeks and weeks that you'll you'll fight over that one you know and then obviously title issues title issues judgments that's judgment you don't realize the judgments on your property that you didn't even realize were there and most people will just get scared and walk right away so here's here's the thing with easy clothes a easy sell property solutions right because I owned a national title company because I owned a national mortgage bank every single one of these issues and because we've been doing real estate investments for the last 10 years every single one of these issues we've been speaking about today when you're selling traditionally I'm telling you when you sell the easy sell property solutions the easy way out there are these issues they're there but they're not your issues their averages we take the issues off your shoulders we put them on ours and we make we cut

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Through the freaking problems so if you have a property that you want to sell you want to get a fair offer understand I'm using the word fair because we give very fair offers for the properties give us a call 631 forward I hope that this this session today was educational for somebody out there that's looking to sell that they got the knowledge now and they're probably gonna go back and so in educating their realtor and their attorney on potential deal killers and hurdles and they're gonna have to jump over right there yeah it's always like nice to get back and educate everybody so if you have questions getting folks give us a call six three one four hundred easy what's the website cost easy sell for 1.com love this show love you cuz everybody's I've loved this guy behind over here he's on the day level everybody gets love Maddy behind the camera over there handsome buddy alright guys we'll be back next week the views and opinions expressed on this program are not necessarily those of this station JVC broadcasting management or its sponsors sponsors sponsors