The Most Common Mistake Home Buyers Make | California Live | NBCLA

The Most Common Mistake Home Buyers Make | California Live | NBCLA

WAYS, RIGHT? >> GOOD ONE. >> THATNKS, MALOU. CALIFORNIA'S REAL ESTATE MARKET IS ON FIRE BUT WHAT'S THE BEST WAY TO CAPITALIZE ON ALL OF THE ACTION? JESS IS LIVE WITH AN EXPERT WHO CAN BREAK IT DOWN WHETHER YOU'RE IN THE MARKET TO BUY OR SELL. HEY, JESS. >> HEY, DANI. THAT'S RIGHT, THERE ARE SO MANY QUESTIONS RIGHT NOW SURROUNDING THE REAL ESTATE MARKET. ARE WE IN A BUYERS' MARKET, A SELLERS' MARKET, ARE WE IN ANOTHER REAL ESTATE HOUSING BUBBLE? SO I BROUGHT IN-HOUSING INDUSTRY EXPERT WHO IS GOING TO GIVE US THE 411 ON EVERYTHING WE NEED TO KNOW. HOW ARE YOU? >> GREAT. GREAT TO BE WITH YOU TODAY. >> I AM SO EXCITED TO TALK TO YOU TODAY. THERE IS A BIG DEBATE, ARE WE IN A BUYERS' MARKET, SELLERS' MARKET, AND ARE WE IN A BUBBLE AGAIN? >> DEFINITELY NOT A BUBBLE BECAUSE DEMAND IS SO MUCH GREATER THAN SUPPLY. UNDERWRITING PARAMETERS ARE NOT IRRESPONSIBLE AS THEY WERE BACK IN THE CRISIS AND IT REALLY IS NOT A BUBBLE. WE DON'T HAVE ENOUGH SUPPLY OF HOMES ON THE MARKET.

>> SO FOR THE FOLKS OUT THERE WHO ARE NOT FAMILIAR WITH WHAT A BUBBLE IS, WHAT IS THE REAL ESTATE BUBBLE? >> A BUBBLE IS BASICALLY IT'S GOT A FALSE FOUNDATION. IT BASICALLY IS BUILD ON A HOUSE OF CARDS, YOU MIGHT SAY. AND SO LIKE THE SUB-PRIME CRISIS, ALL OF A SUDDEN WHEN PRICES STARTED GOING DOWN THEN PEOPLE'S EQUITY DRIED UP QUICKLY BECAUSE THEY WERE ALREADY AT ZERO DOWNPAYMENTS WHEN THEY BOUGHT THE HOME, AND OF COURSE THE PAYMENTS DOUBLED AND THEY COULD NO LONGER MAKE THE PAYMENTS BECAUSE THEY HAD REALLY BAD LOANS. >> LET'S TALK ABOUT THE INVENTORY SHORTAGE CRISIS. HOW DO WE NAVIGATE THAT? >> THE BEST WAY TO NAVIGATE THAT, IF YOU WANT TO BUY A HOME, IS TO BE ABLE TO HAVE THE WHY OF HOW YOU WANT TO BUY, WHAT YOU WANT TO DO.

SO MANY TIMES PEOPLE FOCUS ON THE TACTICS. WE LIKE TO FOCUS ON THE STRATEGY, WHY DO I WANT TO BUY. IF YOU'VE GOT A STRONG WHY THEN YOU CAN POWER THROUGH THE DISAPPOINTMENTS OF NOT GETTING OFFERS ACCEPTED. FOR ME IT'S PERSONAL, I GREW UP IN THE PROJECTS, ON WELFARE, AND I JUST DECIDED THAT I DON'T WANT THAT ENVIRONMENT. I WANT SOMETHING THAT'S STABLE THAT I CAN DEPEND ON, WHERE I CAN PUT A PICTURE ON THE WALL WHEN I WANT TO. >> AND THE WHY IS WHETHER YOU WANT TO LIVE IN THERE OR WHETHER YOU WANT TO PURCHASE FOR AN INVESTMENT. SO LET'S TALK ABOUT FOR THE FOLKS WHO WANT TO INVEST. HOW DO YOU KNOW WHAT NEIGHBORHOOD TO INVEST IN? WHAT'S A SMART INVESTMENT, WHAT NEIGHBORHOOD? >> BASICALLY IT'S REALLY LOCATION. IT REALLY STILL IS LOCATION, LOCATION. YOU WANT TO BUY THE SMALLEST HOME YOU CAN IN THE NICEST AREA THAT YOU CAN. IT'S REALLY WHAT IT COMES DOWN TO.

California

AND THEN PUT ENOUGH MONEY DOWN SO YOU CAN HAVE POSITIVE OR AT LEAST BREAK-EVEN CASH FLOW TO START WITH. >> AND FOR THE FOLKS THAT WANT TO LIVE IN THE HOME, HOW DO YOU SET YOURSELF APART FROM OTHER OFFERS? HOW DO YOU MAKE SURE THAT YOUR OFFER IS GOING TO GET ACCEPTED? >> GREAT QUESTION. THE FIRST THING TO DO IS MAKE SURE THAT YOU ARE IRONCLAD PRE-APPROVAL. IF THERE ARE ISSUES, COMMISSIONS, IF YOU'RE SELF-EMPLOYED, WHATEVER IT MIGHT BE, YOU WANT TO MAKE SURE YOU'RE WELL APPROVED. AND THEN THE SECOND MOST IMPORTANT THING IS TO GET A REAL ESTATE PROFESSIONAL THAT KNOWS HOW TO MAKE THE OFFER. THE GREAT REAL ESTATE PROFESSIONAL IS WORTH THEIR WEIGHT IN GOLD. THEY DO A GREAT JOB AND THEY CAN HELP DIFFERENTIATE YOU WHEN YOU MAKE THE OFFER. >> THERE'S ALWAYS SOME MISTAKES. WHEN I PURCHASED MY FIRST HOME I SAID, OKAY, I'M NOT GOING TO DO THIS MISTAKE AGAIN. SECOND TIME I DIDN'T MAKE IT, BUT THERE WAS ANOTHER MISTAKE. HOW DO YOU AVOID COMMON HOME BUYER MISTAKES? >> THE MOST IMPORTANT THING IS TO FOCUS WITH THE LEARNDER AND THEY HAVE TO BE A PART OF YOUR TEAM AND WHAT YOU'RE DOING.

ONCE YOU'RE PRE-APPROVED AND YOU'VE GOT IT ALL GREASED, YOU'RE IN GREAT SHAPE. AND GETTING A REAL ESTATE PROFESSIONAL THAT CAN HELP YOU MAKES A BIG DIFFERENCE. >> AND THEN OF COURSE IF YOU WANT MORE INFORMATION FROM JOHN, YOU HAVE A BOOK, BUY YOUR FIRST HOME TODAY. THERE ARE A LOT OF STORIES IN THIS BOOK. >> YEP, A LOT OF STORIES. I WROTE THAT ORIGINALLY AND I READ IT AFTER I WROTE IT, AND I THOUGHT, THIS IS THE WORST BOOK I'VE EVER READ. AND I THOUGHT, HOW CAN WE MAKE MORTGAGES INTERESTING? SO WE MADE IT ASPIRATIONAL, BUT STORIES IN OF PEOPLE WHO CAME TO ME THAT DIDN'T THINK THEY COULD QUALIFY AND THEY COULD QUALIFY. GOT THEM IN THEIR HOMES IN THE NEXT 30 TO 60 DAYS. IT'S A GREAT READ. >> THANK YOU SO MUCH, JOHN. SO MUCH INFORMATION. REALLY A LOT TO THINK ABOUT, YOU KNOW, PEOPLE WANT TO BUY THEIR HOME AND THEY DON'T KNOW HOW TO GET STARTED AND DO IT. THANK YOU SO MUCH. AND OF COURSE YOU CAN ALWAYS PICK UP HIS BOOK ON AMAZON OR HIS WEBSITE.

DANI, I KNOW YOU JUST BOUGHT YOUR FIRST HOME. FOR THOSE THAT ARE STILL LOOKING, YOU CAN DO IT. THERE'S A HOME OUT THERE FOR YOU. >> DEFINITELY. >> TALK TO JOHN. >> YEAH, I WAS SITTING HERE THINKING, JESS, I NEEDED JOHN. HAVING A COACH IS A GREAT IDEA. I STILL HAVE QUESTIONS. >> ABSOLUTELY. I KNOW, THAT'S EXACTLY HOW I AM. I ALREADY TOLD HIM, I'M GOING TO CALL YOU AND PICK YOUR BRAIN ON EVERYTHING REAL ESTATE..

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