Rightfully So Podcast

Rightfully So (00:00.16)
Yeah, if we chat too much craziness. Hello and welcome. Today I have with me Lucas mortgage. This is Lucas Hernandez. He is one of my very close mortgage colleagues in the business. We've worked together for a couple of years now. Yeah, we talked about our first client who ironically

has the same birthday as Danyella, They celebrated it a couple of weeks ago. And I looked back at the closing photo and now it's like, I think it was 2022 when we first got connected. Time flies and now your family's growing. Your family better start growing. Noelia, let's make it happen.

I said it. I said it here first. You heard it here first. Breaking news. Breaking news. We were talking about the fish, the sponge bob fish, the breaking news fish. If you know. If you know, know. You know. All right. So I think we just kind of wanted to talk a little bit on what we see. now halfway through the year, right? Yes. And 2025 in real estate is especially in New Jersey is still strong.

Yeah. Property values are still high. there, you still see people bidding above asking price, right? Definitely. Oh man. You still, when you don't expect it all of a sudden, Hey, we had 16 offers. Oh my God. I know. And it's going back to those buyers that you really build a relationship with and you're like, Oh, this house is perfect for you. And you have to tell them, Hey, 18 other people wanted to buy this nice house. Uh, it, it, it, it's still a challenge.

and you have to be, you know, still competitive. And when you're submitting offers, you have to work with the right team. And that's what we have here. Yeah. And make those offers competitive because a lot of the time it is about the price, but it's more than that for most sellers these days. What are you seeing as like one of the most common things that make an offer competitive that are separate in price? Right now?

Rightfully So (02:14.702)
Well, I think right now and maybe always inspection contingency. Okay. If you could limit it, waive it ideally, that is really attractive to a seller. Not because they might think there's so many things that are wrong with the home, but it just takes away that uncertain hazard point of the process where, you know, there might be a disagreement on a credit or a repair and you may lose the deal.

So knowing that the person is buying the home as it is, as they're seeing it, they could still do an inspection, but it would just be for informational purposes. And that means, okay, inspection is done and there's no other conversation about it. No disagreements, no negotiations. We're just moving on to the next step. So that's a big one for sellers and appraisal, which of course is a tough one because for...

99 % of the time you need an appraisal and you don't it's an art. So an appraiser is this literally it's based on obviously comps and actual facts. But at the same time, the way that an appraiser judges the home and makes their report. love the way you said that because when I explain a lot to first time home buyers or even investors that are purchasing multiple properties, I have to explain to them an appraiser

and an appraiser, all they're doing is they're giving their opinion of the value of the property. Opinion is the strongest word there because everyone's opinion is different. What somebody may think is $500,000, it may be 490 or 550 to other people. So as a mortgage bank, and like you said Danielle, about 99 % of loans are going to require a certified appraisal done by a neutral third party.

that does not represent the seller, does not represent the buyer if it's a purchase transaction. They are asserting an opinion of value. And a lot of times sellers want to see that appraisal contingency maybe waived or maybe an appraisal coverage gap. the buyer has no control over it. Your mortgage bank definitely has no control over it. All we can do is provide comparable sales or comps

Rightfully So (04:40.226)
to the appraiser to hopefully get the value that we need to have a successful and smooth transaction. But at the end of the day, they're a third party that is doing a job and their opinion of value is what the loan and the purchase price is gonna be based off of. So it's hard to explain that to not just the buyer, but also explain it to the seller. I'm sure that you get, when you're listing people's homes for sale, you'll get an offer that...

is probably really attractive because the purchase price is so high, but I'm sure you had to go back to that seller and say, hey, if it doesn't appraise, you may not get all this money. Yeah. And that's probably... They have to understand It's difficult conversation. And eyes light up. You see that higher number, but 20 days from now, we're discussing, okay, where is this gap going to come from? And if it means that the deal is off...

and you could have probably taken an offer that was maybe 5, 10K lower, but had that cushion of the appraisal gap or waiving it completely. Can you explain what happens and where the money would come from for that gap in case of a shortfall in the appraisal value? Good question. Good question. My opinion, when buyers are submitting their offers and they're doing maybe an appraisal gap where they're waiving their ability to

have that appraisal contingency, the bank is still gonna do an appraisal no matter what, even if a buyer waives their contingency. What happens if there's any shortfall or difference between the appraised value and the purchase price? I explained to the buyer, there's a couple of different options, but the most common is that because you agree to waive your appraisal contingency and there's a little bit of a gap, you as a buyer then would have to cover that gap with their own funds. Out of pocket. Out of pocket. So for example,

Let's say we are submitting an offer for $500,000, but the appraised value is $490. There's a $10,000 difference there. Buyers would have to come up with an additional $10,000 to give to the seller to sell and meet them whole at $500 because we're only going to give them a loan for that appraised value of $490. So some buyers are under the misconception that, OK, that $10,000 goes to down payment.

Rightfully So (07:03.246)
But it doesn't, unfortunately it doesn't because the value, the loan to value is going to be based off that appraised value of 490. So that $10,000 difference is going to only the seller's pocket. It does not go to your equity. It does not help with depreciation. And unfortunately, not every buyer, especially in this economy, has that money to come additionally out of pocket. So it's important to have those conversations early ahead of time if it's possible. Yes. And so basically, if you you allocated,

50K towards your down payment and then you have your closing costs. Let's assume for this home it's 15,000. That means you would have to have an extra 10K laying around in an account that you could include for that contingency. Correct. Or what we could do depending on the loan program that you qualify for and depending of course on your debt's income reach and other qualifications. You mentioned they have 50,000 of down payment.

maybe instead that's 50,000 down payment on the loan. But let's say we take that 50,000 and we only apply 40,000 to the loan and the additional 10 goes to the seller. So your payment may change, your loan to value may change, but the dollar amount out of your pocket won't change. So it is more flexible when someone is putting down more than the minimum down payment. But if you're a family that is, you know, putting down three and a half percent, five percent, some of the minimum loan down payments.

It can, you know, eat into that budget and be a very stressful situation. mentioning down payment, that's where sellers also look at that because if a buyer has a higher down payment and they're putting something in like a appraisal contingency waiver or partial, they want to, it makes more sense to them that you'll be able to afford in case of a downfall in the appraisal because you're like, okay, if they're

putting 25%, they probably have less of an issue putting 20 % down in case the home undervalues. Correct. They're going to look at that a pre-approval or you're going to look at the proof of funds. And if they are over bidding, they understand that the borrower that's putting 20 % down can maybe be okay with a five to $10,000 appraisal gap and maybe put, like I said, maybe or 19 % down on the loan. And that one or one and a half percent could go towards a difference.

Rightfully So (09:28.718)
they'll look at that more favorably typically than a minimum down payment borrower because they assume, okay, they may not have the funds to meet me in the middle or overcome an appraisal gap. So it does affect how sellers are going to view your offer. And they think, you know, someone with a higher down payment is a safer choice because in case of an emergency or just something happening, they still have a solid amount of down payment.

as opposed to someone putting the minimum down payment they want to they feel like maybe they won't be able to come up with all the funds needed at the closing table. Yeah. So I also think that they they're getting their money, you know, whether it's from the bank or whether it's from a higher down payment. at the of the day, to completely judge a buyer on a 5 % down, it could be strategic as well on the buyer's end.

You know, I want to renovate, I want to buy a bunch of furniture, want to put in a pool, whatever the case may be, I want to hold on to my money and I don't mind paying a higher monthly. So sometimes it's just a strategic reason why they're putting a lower down payment. I've had people who can have a 20 % down payment potentially in a bank account and they'll tell me, look, it's not, I want to put down the minimum. I would like to finance as much as possible to exactly keep myself liquid or, you know,

have money set aside for other things that they want to do with their life. They don't want to tie in all their money into one investment, which is real estate. They maybe want to diversify. So as a seller, you definitely don't want to look at it as cut and dry as that. Or as a red flag every single time now. It's not. Like you just said, it could be strategic. And maybe the buyer's OK again with the higher down payment because to them, what's more valuable is keeping their money in other things.

and not all tied up in real estate. And they're approved for the value of the home. Let's say we already crossed the lines of a appraisal and all of that. That's the amount they will be getting. Exactly. Whether it's a 3.5 % or a 50 % down payment. Fantastic. How's the market? Oh, that's such a broad question. And I always respond with, it depends. Are you looking to buy or sell? Especially in New Jersey, sellers are still getting a

Rightfully So (11:53.678)
depending on location, size, and condition of their property. But on the buyer side, there is a little bit less competition, a little bit less demand, because the homes are selling at all-time highs. Rates have been inflated for the third straight year. I saw a post earlier saying that since 2022, we've been in a market where the average interest rate falls between 6.5 % to 7.5%, which is...

a lot higher than 2018 to 2022, which was that late and early COVID stage of the interest rate market and how it affected real estate. Which was a phenomenon kind of state. Yeah, that's not the normal. The normal is also not this high. It should be typically somewhere in the market. I'm sorry, somewhere in the middle when it comes to interest rates. But what buyers

You can correct me or you can tell me what your experience is. Buyers are getting a little bit more advantages and maybe getting seller repairs, seller credits, or asking for price reductions and the sellers are agreeing to it because the sellers are listing their homes at high prices where maybe not everybody A, can qualify, or B, afford, which is more important, affordability, and willing to negotiate a lot more than they were

you know, a years ago. Now, of course, this is New Jersey specific. Yes. There are markets all across America that are affected and your market in Tennessee, Texas is going to be different than right here in New Jersey. But we're lucky here in the Northeast where home values are high. Homes are still appreciating at 45 percent every year. And real estate is still a really good investment here. My favorite truth about this area, especially within 45 minutes of Manhattan, is

all those areas, they're the last to go down when something happens in the market. And they're the first to come shooting right back up when things start getting better. That's so true because we are in probably one of the most desirable areas to live in the country. Everybody from across the world wants to live, like you just said, 45 minutes from Manhattan. And with hybrid and all of that, since then,

Rightfully So (14:16.928)
It's even spreading out a little further. So even areas further into New Jersey, further out from Manhattan, they're still getting a lot of equity, surplus and value going up because of that. you know, I could commute for an hour, an hour and a half once a week, twice a week. And it's, it's spreading people out a little more and it's bringing value to a lot more areas. And.

is causing even more attention and more upgrades to a lot of towns that probably weren't thinking they were going to get that way. And now they're like, okay, let's open up some nice restaurants, more cafes, all of that. But with the interest rate, it's higher than what it was a couple years ago. And I think most buyers are just understanding that's where we are now. But, you know, there was a point where interest rates for a home were

18%. Yeah. Yeah. those are insane to think about. It's insane to think about that was definitely, you know, eighties and nineties. And now the home buyer that's coming to the market now, they are fully aware because we have now data for the past couple of years, like where the rates are, it shouldn't be a shock to new buyers. They are actually happy to hear like, wow, thank God they're in the sixes and on the sevens anymore. And I tell them, yeah, take it, take advantage of this now because

A lot of people assumed, and we're hoping, including myself, that change in government this past November, maybe there would be changes to some financial policy and we'd see rate decreases. Rate decreases are trickling down, but when you see a news article or a newscaster say mortgage rates on the decline for, let's say, the fifth straight month, most times rates are adjusted by an eighth of

percent. So I'll get clients tell me, Lucas, heard the rate shock. Yeah, they did. But the difference to your payment is $20. And they're like, I thought it would be more. I Yeah, but the rates have do have an effect on individual on people's affordability, but not that much. But when you combine high prices with inflated rates, that's where affordability shrinks and and it affects people's bottom.

Rightfully So (16:43.05)
I also see, as you said, things more wiggle room for buyers now. What I'm seeing is two things. They're either pricing really low to get that higher price. that could not. Yep. And it's happening a lot. that's those are the homes getting, you know, overbid. And you're like, my God, they got 50k over asked. But that was actually what the house.

was worth is just that the price is so low so more of you could come in the door. Correct. And listing agents do that as a strategy. It's a strategy. And because now they want to go to their seller and say, hey, I have you 30 offers. half of them are people who that's the top of their price point where people who are higher approved, they're going to drive that price 50, 60, 70,000 over asking.

And again, it discourages some buyers who are in that price point because they're like, how can I compete? Well, they're actually at a different price point than you. Like you shouldn't be competing, but the way the house is listed, it's to kind of create a buzz. To see if you could push your limits if you walk in a door and fall in love. And in some cases, some buyers might, but in most cases, they know they can or shouldn't. And then the other ones are the ones pricing.

really, really high or like right there where the price of the home should be and either the house is beautiful and it still gets the attention it wants or the house is not the best and people kind of let us sit for a while and then you might be able to negotiate a couple thousand or so. and the way that the negotiations work, especially in real estate, a lot of people think it's kind of like a eBay or Facebook marketplace.

many, buyers speak to me, how about we offer this number and it's 15, 20,000 or less than even the asking price. And I'll say, they're not going to buy it on that because there's another 10 families that are just like you approved for the same amount and they're willing to give ask. no, let's just see what they say. And sometimes I'm sure you've done this. You'll, okay, I'll, I'll listen to you just so we can show them, Hey, this is what the market is. Here's the response I got on your week offer at the end of the Yeah.

Rightfully So (19:06.102)
And then I'll explain to them and I like to ask, you sometimes they don't get, you don't get the exact number that they got to, but you say, Hey, where did my clients offer rank amongst the 25 offers? And they'll tell you, know, they'll be like, well, 24 offers were a much higher than yours. That's crazy. Or some people really, you know, they want the, I get it. I, everyone wants a deal. Everyone wants a bang for their buck.

but sometimes it's definitely not worth it in this market to offer 50K under 60K. Some people really want to say, you know, the house is listed for 500, but you know, I think we could get it for 400. You're not. You're not. It's unrealistic. It is unrealistic. And I love, I always say I am the most optimist person. I love to believe in

miracles and in the best case scenario, of course I do. But sometimes logic has to hold hands with that optimism and make it make sense. It's got to make sense. From your experience, what I wanted to do was move the camera to the front. Okay. And then I just have to make a quick call. Yes. No problem. let's pause. Action. let's kind of action. Say hello. Mic isn't

Make some action action So a huge thing that I notice with people who are thinking of buying now or later They have a misconception of how much down payment is required So yeah Lucas how much down payment is needed to purchase a home? and what is

What is better about a higher down payment versus a lower down payment and what loan types are available for the options for the different down payment options? No, so I think there depends on the program. So we'll start off with some of the most common. Some of the most common are FHA conventional and VA loan programs. FHA allows for the minimum down payment of three and a half percent conventional

Rightfully So (21:30.722)
The minimum down payment typically is 5%. It could go even lower to 3%, but you have to meet certain requirements to get that even lower down payment. And for VA loans, the minimum down payment is 0 % actually So it all depends, I tell buyers, it all depends what's okay with your budget. What money do you actually have set aside to even purchase a property? What are you okay with putting down? And are you okay with a higher monthly payment?

because when you're putting down less money, you are going to have a higher payment than somebody who's putting down more money because you're borrowing more money, your loan amount's gonna be higher. So it all depends on how much the borrower has to actually put towards the house and are they then comfortable with potentially a higher payment because of that. So down payments can vary, but I always tell people the minimum is between three and a half or 3 % to 5%.

and the amount you want to put down is really dependent on you and your budget. So it's not always 20%. It's not always 10%, 15%. There are lower down payment options. then there's even, depending on where you're trying to buy or the amount of income that you earn, there's specialty programs for down payment assistance or first time home buyer programs. may cap your, that's income ratio, or they may require different credit scores in these other programs. But there are ways,

to be flexible with down payment. So it's not, hey, if you don't have 10, 15 or 20%, I can't buy a property. You should definitely speak to you and I so that we can come up with a plan and a solution that best fits your needs. What are you seeing people put down most commonly?

Depending if willing and able most many buyers come in ready with their 20 % Okay, and they know or they learn that The reason why 20 % is what you hear so often Be the down payment amount that you would want to have is because you avoid what's called the PMI PMI which is the mortgage insurance correct on conventional loans on conventions. Yes, so there is also PMI on FHA loans

Rightfully So (23:47.438)
And if you are putting down more than 10 % on FHA loans, the PMI or the private mortgage insurance falls off after the 10th year. But if you are purchasing a house with the conventional loan and you have 20 % down, your payment would be a little bit cheaper because you're putting down 20 % and the mortgage insurance comes off the loan as well. So people who are looking for the cheapest monthly payment.

and have the 20 % down, I would probably advise them to do a conventional loan. Obviously, if they qualify, they have the necessary income, credit, and assets to get approved. That would probably be the best solution for them. But in this market, in this economy, some people are opting for lower down payment options because they're okay with the higher payment, but to get the offset and have their money maybe doing other things and be a little bit liquid instead of having everything tied up in the property.

Yeah, definitely. you know, let me pause because I lost my train of thought.

Yeah, it's really down to what your goal is and what is important to you. if low monthly is your goal, put as much down as you can. If you don't care about the monthly, you're like, have the income, but you know, I just want the house and whatever it is, then we'll focus on getting you what you want. And then you figure out that monthly, but you have to qualify. Of course. What are some of the

first couple questions other than mortgage or financing that you ask your buyer to kind of get to know them, their likes, their interests, and kind of put them in an area or get an idea. Because I'm sure it's hard, you know, to understand what somebody wants in a property. It's hard to find somebody's fashion sense. I can't imagine what it's like to find what's their home sense? What are they looking for? Like what are some questions you ask? Believe it or not.

Rightfully So (25:51.27)
Most people, very few people know exactly what they want because you start learning that. We learn it together once we get out there. So we start with the basics. What do you need? Okay, I have a family of X. I need at least three bedrooms. bathrooms. We could do one, preferably two. Okay, so we know where we are there. And then a single family.

are you willing to do a condo, a townhouse? Do you want a multi? And then you focus on what all the plan they have in their mind of what they think they want at that moment. And then some give you like, need to have, you know, washer, dryer on the second floor. I need this, I need that. And I'm like, I get it. But let's not count all these houses out. Let's check it out because there's always an option, you know? It's something as easy as maybe laundry.

look, this house is so easy to just put it upstairs. You're getting this house for 150 less than your budget. And you could easily just make that, like little things like that. So what I like to do is get the basics. know the area, some people know exactly what area they want to be in, some don't. So we go best based on what their priorities are. They say, let me check out the school districts in these areas if they have kids. Or they're like, I don't care, I just need to be.

at the minimum max 10 minutes from a train. So we know what areas because others don't have that. So we go from there and then I like to show them usually at least three options within that three bedroom, maybe a condo, a townhouse and a single family. And once we go in and they look around, they start realizing what they want, what they need, what their deal breakers are.

And that's when we learn and we bring down that criteria. When they're like, no, you know what? The house was great, but we decided definitely no major road. It's not going to work for us. Like never. We can't deal with the noise we come from. know, the. What are some common deal breakers in that? let's say major. Like what are some things that people are like, I do not want to next to this or live around.

Rightfully So (28:15.054)
Many a big deal breaker for a lot of people, especially in counties like Hudson is Parking some people are like I I can't do with no parking. They'll see that that block They'll see how how long it took us to park to see the house. They're like, yeah, no, no Don't make the right onto the street and to say and nope because I'm sure I know Hudson County some blocks and from Bayonne the Union City to Jersey City you turn on to them and

90 % of the block is two cars and somehow it's a two two-way street on those narrow it's it's crowded so they they start realizing that that's a big one uh some people they'll start seeing the community and they realize it's not for me we don't even have to go in the house like they'll just the condition of the neighborhood or something like that they'll realize you know it's not what i want or or crowded street like that like i need i have a big truck i can't be going down all these

tight one ways. know? I'm assuming do most buyers actually do any, do they do research into these neighbors? they drive? Do they do any drive-bys before they send you a house? Some do. So let's say they're like, they're really eager or they're in the area visiting a friend and they're thinking to move to the area. They'll drive around, they'll see the listings and they'll say, I drove by the house. Yeah, I want to see it. Or they'll be like, you know what, that one that I sent you.

I don't want to actually see it because I drove by yesterday and the street was too narrow or something like that. some do, some have no idea what this town is, how it is, anything about it. It's really the type of person. You have those type of people that they're very organized and they have their plan and they know more about the town than even if I lived there, more than I know about the town.

And some are just doing based on how the house looked. And I'm like, this is two hours from your job. Are you sure? What do you mean? yeah, it's a lovely home. I'm not denying it. Fully renovated, beautiful, big backyard. But it's out of your budget or, you know, some people just. It's more of the dream they're looking at rather than.

Rightfully So (30:40.662)
the practicality of it. What would you say is the most common thing that people misunderstand about working with a real estate agent? They think some people

think that we're just there to let them in a house. And that's all we could do, get them a key to access. But there's much more to me than just unlocking doors, I promise. Yeah, you take photos. I take TikToks. No. And they just think that you don't know the market, you don't understand.

the home buying process, you don't understand what's needed. You don't understand what sellers are looking for, how to commit. They think some, very few, but some think that you just don't know anything. You just somehow have access to a magic box that lets the key come out and you walk in. I could not agree more. And then some think that just by meeting them and having a quick chat.

that you know exactly what they qualify for, how much, what, imagine their credit score, you know, and that I should be able to tell them what they need, their down payment, what their rate is going to be at that moment. So they overestimate what you know, but, and I have to say, listen, I know a lot about it. I've listened to enough of it. I work with lenders every day, but I,

I don't know your specific situation and the one who's really going to be able to profile that and give you the breakdown is the lender. Yeah. And I see it as I'll have a phone conversation with somebody. I have no idea about their qualification. I have no documentation to verify and I'll say, what can I qualify for? And I'll be like, well, assuming everything you told me is accurate and I can verify it, roughly this number.

Rightfully So (32:54.526)
that's too much or really I thought more and I'm like, well, how about I see everything? Yeah. Because the pre-approval process is the first logical step for people to go home shopping. shouldn't be showing, they shouldn't be seeing homes with you or, or seriously actively looking to even submit an offer unless they know what they can afford and if it's within their budget. Otherwise they're doing themselves a disservice because

they could end up dissatisfied or they could be not aware of what they could potentially be approved for. So it's really important to have that done. Some overplay their approvals and some underplay it. And they don't know that, listen, for your specific situation, for what you're looking for, where you're looking for, what you want, you qualify for this program that will set you ahead in so many ways and that...

could qualify you for what you thought you would never be able to step into. I think it comes down to working with the right team that has the right communication because without the right team helping you, it's so hard in this, especially in New Jersey, to close on a transaction. You need to have expert communication between your bank, your agent, your attorney, the title company, home inspector, home insurance. There's so many people.

that need to collaborate and get on the same page. And if you have miscommunication or something is miscalculated, it's not just setting you back a couple of weeks. You can jeopardize the house you want to buy. You could lose out on opportunity and it's so- Waste money, time. even waste money and time. And the opportunity. It's really the missed opportunity because it's so complicated to close right now. And so having the right team to get you there is really important. One second.

Definitely team is the right word that you said that I was getting to. Definitely the team is so important because that's another thing buyers needs to understand. We're a team and sometimes they feel that each individual involved is separate and that we don't have to communicate or understand where things are with each of us or that they mistrust.

Rightfully So (35:17.644)
bringing us together. You know, like I only communicate with the attorney like this about this and only with you about this and the like, no, it's we all the more aware we are of where the process is and where we each are with the client's file with the client's situation, the better outcome we have, you know? And I tell them, listen, pre-approval, like you said,

you have to actually approve them and get everything to know what they qualify for. And for me is I need that from from you, you know, because I tell them all the time, hey, we could see the house, but don't fall in love because you're not ready to make an offer. And offers are due in two days. So you need to get if you want, if you fall in love with this house and you want it, you have to be ready to make that offer. And until you talk to the lender, you're not ready, you know? And I think

that kind of confusion to a buyer, especially someone doing it for the first time, they think we don't talk or that we don't communicate, which is completely false. We're talking. Or that we're against them or just trying to, we literally, if they win, we all win. Yeah. But you need to tell us everything. And sometimes I think that does this happen with you where they hide a detail that's very important? Yeah. They're hiding the fact that

they want to buy a car yesterday. You know? That, or I've had situations where people are, know, I had the money, but something came up and I needed to spend it. All right, can you let me, can I be made aware because I need to let everybody else know because everybody is waiting on our clear to close, our appraisal, our underwriting approval. Let me let them know, hey, there's a little bit of a bump in the road.

just so that they know what to expect. Because then you have to manage expectations with the seller's attorney and the seller's real estate agent. And the seller's. And the seller's. Because the seller's agent is going to speak to the seller. And then you look like you didn't do your part, but it was something that you had no idea your client did. It's unfortunate. And then something happens. Maybe that deal falls through and the client is mad at you, but they never spoke up about that. And they see it as

Rightfully So (37:41.834)
transactional. They see it as this person is just to get what I need and some buyers who see it that way, they have a less enjoyable experience. if they are upfront, honest and kind of communicating with the us at every step of the process, home buying is not that bad. It's actually kind of fun. You see a lot of pretty houses. You meet a lot of people who can open up connections and opportunities.

for other aspects of your life because I definitely know as a real estate professional, I know so many people from people who can renovate properties to different attorneys, to other people that help homeowners and other services. And I'm sure you too, you have a Rolodex of people that you can refer and connect your clients with, but clients who do not.

see us as that, they lose out on these opportunities. They Because they just see us as... They set themselves back. I see that with very few people. You you have the clients that they know that I'm doing this every day. I've seen people do renovations. I've seen people paint. I've seen people do all the jobs involved in anything real estate. I'm not going to recommend someone that I think will do a bad job, that's out to get you, that's going to rob from you, that's going to...

mess an opportunity up for you. Why would I do that when I not only will I ruin things for you, I'll make myself look bad and I'll become untrustworthy. But some people think that that's the goal. And maybe, you know, I feel bad if they've been let down by maybe a previous realtor that lied to them, cheated them out of something, forced them into something that wasn't a good thing. But I have

their best interests in mind. truly care. And if I recommend someone or if I suggest, you know, hey, I worked with this person, I know their work. I trust them. I know how they do things. It's not because you're paying me a million dollars for sharing your number. There's nothing there. There's actually laws against those kinds of things. But it's because I know that the stronger your team is,

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the stronger your offers will be and the better chances of you finding your home. Yeah, because reputation, as many deals as there are in New Jersey, the circle is small. It's small. Your reputation matters. Our reputations matter. I'm sure there's certain things you do share on Instagram or Facebook or posts that you would not share or post or whatever if you didn't have your business tied behind it.

Yeah. Like our reputation is more important to me. My relationships are more important to me than any one or two transactions. Yeah, than getting the deal done and over with. Because we do this every day. We do this for a living. We do it to support our families. We understand how important it is to, yes, the client who is maybe buying something or moving forward, buying their first property. But it's equally as important to us because

We have a reputation to uphold and we're doing the best that we can. And a lot of times some clients may not see that, but there's been a lot of times where I'm dealing with a difficult transaction with a difficult client because the scenario is super challenging to get approved. And they think it's your fault sometimes. When you're actually going above and beyond to make it happen. And I go to sleep now comfortably.

and it took me years in the business to understand that feeling, because I know I'm doing my best. And it's not all on me. All I am is a banker trying to get you approved and get you to the finish line so that we could fund the home of your dreams. But some people, they sometimes take advantage of that kindness or us taking the extra step. And that's when they expect so much from you. It's because we give them access to us. And give them access and boundaries are definitely important.

But at the same time, you know, if it's a time and we're in a crunch and there's a reason why I need to prioritize that client, I will, you know, it's no problem with me. But then some people, they want the world on the silver platter and then they treat you like you're worthless, like there's nothing to it or they don't listen to you. And then everything that goes wrong because of the...

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other people that putting on their team, they blame you and it, not blame you, but they lose trust in you when unfortunately they should lose trust in those people that they found on Google with the worst reviews. I think especially in this industry, cheap can be very expensive. And I don't mean by cheap in terms of

spending I see I think cheap with some even the people you're trusting and the advice you're trusting if you're listening to that person who is you know, maybe even a family member or friends saying don't do this don't buy this or negative on the condition of a property Don't Listen to the people who do not do this every day. Yes trust the opinion of somebody who Is not just doing this every day, but doing it successfully helping families every month

And they're listening to the uncle that doesn't have a home, never had a home, or, you know, one time in 1993, they had a condo that someone kept insisting, oh no, don't buy in a building because one time my sister in the 90s, she bought a condo and the window wasn't working. Yeah, like something terrible.

whatever to fix the windows. now like, why don't we just look at the windows? How about we do that? And, or when I will have a client that is like, Lucas, why is this so difficult? I had a friend that closed and it took them this amount of time and their process was so much more simple. Say, well, you're everyone, especially when it comes to financing, everybody's money credit is

Individual. Individual. No one has to the T exactly the same file. That's why I really like what I do is because I never get the same exact scenario or set of circumstances twice. It's literally impossible. Everybody has different credit. Everybody has a different job. Everybody has different money in their bank account. Everybody has a different family that they're purchasing with and a different set of circumstances surrounding why they are purchasing a home. Even the credit score. It could be the same score.

Rightfully So (44:52.642)
But there's different. There's different trade lines. There's different. There's different things. the way they came to that number is because of different reasons. Exactly. So I explain to people, hey, whatever prior notion you have, it could have been somebody buying in the same area, buying the same type of house, buying the same price, even qualifying for the same loan. Their set of circumstances are different than yours.

Their personality, their mindset, their goals, their priorities are different. Yeah, the way the speed in which they are understanding the process, their ability to comprehend everything may be different. Our process of real estate is so complex and that's why the houses sell for so much. People are not qualifying for 700, 800 thousand dollar loans and it takes, you know, one week to get it done. I would love it for it to get done. I know you would love for it to get done, but

people who understand that you do get it done fast. If need be and yeah, we do it and they get the file going so you could and I tell, I tell it's not a day. No. And I tell a lot of sellers or sellers agents that asked me how quickly can I get it done? I say, listen, I know I can move as fast as possible. have a team and the support in order to do that, but it truly depends on my client and I'll explain to my client, Hey, we're to move as fast as you move. Because if you tell me, Hey,

I can only do this thing every day or I don't get paid and show you all the money until Friday or I can't pay for the appraisal until next Sunday, that's okay, I'm gonna move by your timeline. But keep in mind, I can't promise speed if the other people and other parties I'm relying on cannot keep that same promise. So I always set super realistic expectations, especially with the other real estate professionals involved and most importantly, the client because...

We're all on the same team. We want to achieve the same goal, but it all depends on everybody coming together at the end of the day. And being on the same page. Same team, same page. Know that we're all here with one goal, and it's to help you. Yes, there's bad apples in every industry, in every business, in every job. Not everyone offers the same value. But as long as everyone's

Rightfully So (47:13.048)
communicating, aware, and also keeping each other accountable. Like, hey, remember we needed to get this document? yes. And then it's just all to help you out and to make the process as seamless for you, know, ideally for us as well. If everyone, if we communicate correctly, it makes all of our jobs easier. What would be one piece of advice that you would give a buyer right now looking to close?

own their own home by December. Somebody who is waking up today, as there will be somebody today deciding, I want to be a homeowner. In December. In December. Before Christmas. Before Christmas. What piece of advice would you give them today, July, to put them in the best position to get get done by the end of the year? Call the lender. Look at everything, get all your ducks in a row, get the advice of what they may have for you of what you need to do in the next month or two.

to really set yourself up for success, make sure all your funds, what they are, communicate with the lender, and then start getting an idea of what you want, where you want to be, how much you feel comfortable with spending monthly. And then I say,

start looking. I could get you on something that's called a collection where we'll put your criteria, your areas, and you could start seeing what's out there. And not only that, let's start seeing how much it's selling for. So you could get an idea of like, okay, if I'm going to look at these houses that were listed for 420, I'm looking to spend on those 420 homes, I'm looking to spend maybe 520 max because that's how much they're going over.

You hit the nail right on it. I think that's why we work so well together. probably, I would suggest a buyer take a week to work with our team to understand your budget, understand your approval, make sure your income credit and assets all straight away. And that over the next couple of months, there's, you know, we're anticipating any financial changes. Job stays the same. Hopefully credit stays the same.

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And paying and saving. Knowing what you can do to not ruin your chances. And setting limitations. That's why you talk to the lender. Because they'll tell you, hey, you're thinking of doing that way until after. Yeah, because I even have you wanted to buy a car next month? Exactly. No, don't buy a car next month. Let's get the house. The day you close, go and buy that car. Yeah. And I'll explain to the client that after you, we understand your finances.

put some effort into understanding location. Yeah. And figuring out what are your needs. Take a drive by and then communicate those needs to you. So then you're looking at specific areas and specific price points. I'm even willing to go see a home in September and go show you, let's go one day. Let's see four houses that you think you might like in December, but let's see them now because it most likely won't be available in December. So don't get.

Yeah, just give an idea. Once you walk in and you realize, no, no, definitely, townhouse or single family. I can't do the condo. I realized, you know what? I never lived in a condo and I realized this is just not for me. And then we know perfect. Then once it's. No, no, actually earlier than September, I would say now let's go now, let's go now because I'm the guest. So then by beginning of October, you have to really.

And now we're submitting strong offers. then giving us enough time to close by then. So I think that's a fantastic time frame. Some people they think it's overnight and try and rush it and then they miss things. We're not going to look at houses in November to close by December. No, ideally we want to ahead of possible. We could play with the dates. We could really do something. You want to leave yourself as much flexibility too when you're submitting a contract.

Maybe a seller needs a longer timeframe to close on a property. That's another one. So you want to give yourself a say that too. Let's, especially the homes that are occupied, let's go see those now because they'll probably be more willing to wait till December when you're ready or when you... Whenever it comes up because yeah, sometimes leases don't always, the expiration of a lease doesn't always work with the seller's timeframe. So you need to find that perfect match. And it takes time, but again, the right team, the right communication, get it done.

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And even let's say you're waiting for December because you have a lease. I say, are you okay with 15 days or a month sooner, which you might actually like more to close November rather than December because you could just slowly move in and start organizing your new house and just kind of do that transition in a slower way rather than thinking like, I want to close the day before.

I my lease is done and then you're rushing to go or something happens and it gets delayed. So I'd say be comfortable with shooting for a closed date that's a month sooner. Yeah. If you're waiting on a lease. Because your payment doesn't start right away for a mortgage. It gives you time and you can move in slowly instead of move out and move in in two days or a weekend. You're kill yourself. Yeah. It's gonna it's it's gonna be too exhausting. So we could actually get active.

Let's say if we want to plan a date, let's get active, know, August first. Let's get active August 1st Let's prioritize all those occupied homes because those might not be gone by you know in 30 days and Then they have they kind of need a buyer that has a lot of flex and then when we're getting closer to that that date We already have an idea of what you want where you want to be because we already ruled that what you don't

and we did all the shopping, the financing, all done ahead of time. But no, I like it. I think we have a lot. Yeah. Because I'm looking at the time. Yes, I 53 minutes. We're going to edit some I know, I'm just thinking, oh my God, 53 minutes we talked. Rogan does two hours. That's crazy. So I have one last question on a personal side because Lucas, I talked to him about our clients. I asked him about a million mortgage things.

But we also chat about, you know, life and personal things. Yeah, we talk all And I know you have an amazing wife. Yes. And you guys are so lovely. She makes a really great coffee and I'll never let her forget it. What is advice for you for newly married couples? I had this question asked to me by a friend of mine and his and his girlfriend, and I told him,

Rightfully So (54:26.178)
You want to be together with your best friend. You want to be with somebody you cannot get sick of, that they truly are your best friend, that you can talk to them about anything. You go through the ups, go through the lows of life, and you're happy to spend time with them. So I think my biggest advice for newlywed couples, people looking to get engaged, are going to be marry your best friend. Because if you're not marrying your best friend, it may not be as fun.

Maybe not the relationship could be successful not saying that I'm just saying it may not be as fun marriage won't seem like work. It won't feel like I gotta do this. I gotta do that. Sometimes that's my life. Yes, but when you're doing it when you're with bestie. Yeah, when you're really doing with your best friend life is life can get really easy. Yeah. Yeah, because at the end of the day, you your best friend. Marry your best friend. If you're thinking, do I want to propose to this girl? Is that your best friend? Is that your best friend?

What would Lucas say? What would Lucas think? But that's awesome. And I think that's so true. It's marry your best friend. Yeah. Everything else fall in place. Especially if you know you have, let's say you have a best friend for years. It's like, isn't that great? You guys have this relationship ongoing. You've grown through things. You've seen them in different stages of your life and you're still best friends. So why wouldn't you want that with the person you're going to spend the rest of your life with? Sleep with, do everything with.

Yeah, and of course, you know, that's people think of soulmates or first loves or love at first sight or I really just think best friend. Yeah. Best friend. Yeah. And I also think people are like, if you love them. I don't know. Love. think what I say is I love everybody. I love everybody. I could have love for a stranger that passed by me and smiled nicely, like sending love your way, even someone that's like.

hot mess of a person or they're rude. like, you know what? I have love for them. You know, they're having a rough time, whatever it may be. Love is easy. But you know, to have respect or to have that connection, that friendship, those are the things that I think are greater than love because love is easy. Yeah. Yeah. Especially love. Love is easy. Love with responsibility and marriage is responsibility is hard. Yeah. Cause you're going to have life. Life's going to be hard.

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because you have responsibilities. But again, if you're going through life with people, with the person that is your best friend and know can support you no matter what, you'll be having happy life. Awesome. Thank you for sharing that. So we'll see you soon. Any mortgage questions? Where could they find you, You can find me on Instagram as Lucas underscore mortgage, or you can just Google me Lucas mortgage.

And you can also now Google me at Lucas the love doctor. Dot org. I will tag all his, his contact info as well. And in the notes so that you have that and you could always. Yeah. I'll send you his number and get through me, whatever, but definitely talk to him. If you're planning about it, if you're thinking about it, get that conversation going with the lender because that's the most important part of the buying.

and then I'll take it from there. Once you have that for your approval, I'll take it from there. And kudos to you. When we first met, we met in your first year in real estate, believe. And now you are raising a family. You do this full time. are a part of your family's growing. So you became an agent where the market turned upside down. All the work that you've done when the market turns right side up, you're going to be doing even more. And I know that. Voila.

into a manifested. Yes. Guarantee it. And you've done so great too. You're one of the most consistent people I know in your business and I love to see you grow. love to see you doing your thing. Can we grow together? Yeah. Grow your girl a baby.