Beards On The Street Episode 26 - Real Estate Rhythms and Life's Luxuries: Navigating Market Waves, Birthday Bashes, and Harmonious Home Renovations

Ever wonder how the pros navigate the wild waves of the housing market while still managing to hit every green in life's metaphorical golf course? That's exactly what Perry Dean and I, A A Ron, chew over in our latest powwow, where we dive headfirst into the refreshing waters of personal anecdotes and market insights. We'll regale you with tales from the trenches of work-life balance, including my kid's epic 36th birthday bash and our off-the-path hiking escapades that led to an unexpected cold plunge. And if you're a sucker for the finer things in life, get a glimpse of the luxurious Three Falls neighborhood, where opulence is the name of the game.

Then, strumming into the mix is guitar maestro Brett Bushman who riffs on an innovative renovation loan program that's music to the ears of homebuyers and renovators alike. Imagine customizing your dream abode, from the ground up or pool down, with the simplicity of a single mortgage—Brett's your man with the master plan. We even decode the mystical runes of interest rates, unearthing a 3-2-1 buy down strategy that could very well be your ticket to a lighter load in those first few years. So, kick back, tune in, and let's make some sense of this real estate remix together.

Transcript

Speaker 1: 0:27

Hey, hey, what you say. Good morning, good morning, happy Friday, happy Friday everybody. Welcome to Beards on the Street. Beards on the Street, mr A A Ron and Mr Perry Dean. Welcome, buddy. We've had a busy week. Yeah, it's been a busy one. It's been a fun one. Yeah, I would agree, absolutely, I'm kind of tuckered out. That's right. You ready for Friday, man? Then I got a run from here for my kid's birthday golf. So, oh, oh, I'm like 36 year old. It just sounds weird that I have a kid that's 36.

Speaker 1: 1:02

And you're golfing midway today. Yeah, cool, yeah, that's nice, that's a nice course. I've heard that Never golfed there. Super great, they're golfing 18, but I'm not. That's just too many, dude, I can't do it. Old man's picking up halfway through. I've never. Okay, I love going golfing and it's fun and all that, but man, 18 holes is a lot. Your brain's too busy, my brain's way too busy. I think nine holes is your perfect. Well, plus, I'm I'm working on a really important deal with the client and trying to get it done. So I've got to, I've got to be focused on that anyways, because we're on a really strict timeline, because she's boogieing and heading out of town. So, okay, well, cool, yeah, it's going to be good, yeah, so talk to me, dude.

Speaker 1: 1:48

What, what the hell you been doing this week? Uh, I feel like I haven't seen you all week. I know, well, you've been busy. I've been out final inspections, here, there and everywhere. Yeah, hikes and Hikes. Yeah, we, oh yeah, yesterday's hike was pretty neat. It was until you went, decided to go off road and, with one of our girls, I downloaded all trails and it showed me where I was on it. But the way that the map dropped, I think it, the final, that final leg, was where you went across the road, looked at the falls and you could walk down the road of the neighborhood, right, and I, I thought it was panning across the bowl.

Speaker 1: 2:26

So we went, we went going, we followed another trail and, uh, look back down on my thing about about 45 minutes into it and I'm like, um, we're off trail, but you and I'm pretty sure I saw you naked in the creek or something, or partially naked. Well, we there, I see a bunch of my friends do cold plunging and stuff and your berries get cold, holy cow. I actually could. I could barely get to my knees and I was like this is? I don't think it's. This is right, this is too cold, I'm taking it right. But I have, I have friends that get in in in the runoff rivers and they do their plunges in the rivers. I can't, I can't even imagine how do you sit down and lay back? I mean, it's one thing to just dive in you got no choice, you're in the water but to actually have to physically sit down in the creek and then lay back in the creek yeah, I, I, I second guessed it once.

Speaker 1: 3:22

I found out, you know, saw how cold it was and I didn't want my parents or my shorts wet as well. So I was like I just changed, changed plans, got redress, it was cold, didn't want any tiger stripe. Huh, no, I mean, let's be honest, you normally get tiger stripe from wet clothes. Well, it's tiger stripe. You'd never heard of tiger stripe. No, you know what You're in there, that's your chafing from your inner thighs. They call that tiger stripe. I've never heard of that. Yeah, that's what I've always called it Tiger stripe. Oh my gosh, you did not want that. You did not want any tiger stripe.

Speaker 1: 3:59

Instead, we looked across the way and we could see a. We could see a circle like our, like kind of more developed roads that were coming in, and so we decided to kind of start just hiking down the mountain, down the side of the hill, wasn't smart. Well, I saw, I saw Sean was on her butt scooting down a big old dirt bank. Poor Sean. Poor Sean has slid out and completely slapped down. Like you know, I felt bad. She cut her hands, the wrist. Oh my heck dude. Well, it was a good hike.

Speaker 1: 4:31

Of course I boogie past everybody and and then I had to. I had a final walk through, so I had to. I had to walk down the road, through the neighborhood. Oh my gosh, dude, that neighborhood is beautiful, that neighborhood is ridiculous. You ready for this? Yeah? So I called Okay and I'm going to see if they had any more lots available.

Speaker 1: 4:51

So, guys, we're talking about three falls, three falls neighborhood which is up, it's in Alpine, it's up a, basically a canyon, I guess it's three falls canyon, and they're building these monster, monster homes up in there. They're, I mean, beautiful. So you ready for this? Yeah, they have two lots available. I can't remember the acreage on the one, but one lot is 2.8 million for the dirt. Wow, I think it was. I want to say three to five acres maybe, but I mean, who knows how much of that is up a steep hill, yeah, available and usable. And the second one, I think, was a 10 acre lot for $5 million for the dirt before you've even started, wow, improvements, construction.

Speaker 1: 5:45

And dude, I'm walking down the road and I mean, there was like, off to the left there was this I'm watching this house and it had a really skinny like lane that went across the creek, had a bridge into a single car garage, the granite cobblestone, yeah. And I was like they built this monster freaking house and it has a one car garage. Well then I kept walking and they were actually building another bridge that was double or triple wide. They actually had it all laid out, they hadn't built it yet, and then they had a temporary bridge to get all the equipment over there. Oh man, I mean, can you imagine the construction on this, on this site? And then it went to, of course, a huge garage. On the lower side, I think there were, I think, six or eight homes under construction that I could see.

Speaker 1: 6:31

Oh yeah, and that little neighborhood, oh, it's not little. So, yeah, not little. So beautiful though, but man, that's, that's some big money for some, for some dirt. It is incredible and it's like I told you yesterday. I mean, alpine is probably I mean we all know Park City in that that area up here, but down here on the Wasatch Front, it's probably one or two number one or two, probably right right around and nearing the Walker lane, exactly, right, yep, big money. It's kind of Walker Lane, but on, but in the Mount, but in the but it still is in Utah County. Yeah, hey, I'll sell real estate in Utah County. I just don't want to live there. Is there something wrong with that? I would live in Alpine, I would too. Actually, it's so cool. You could afford that. You'd have a helicopter pad and then see you didn't have to drive through all that. Right, be like Keaton. Yeah, all righty.

Speaker 1: 7:27

So we went to some concerts, dude. Yeah, all right, hang on, I gotta, I gotta do some things here. Hang on. Monday night, monday night, here we go. This was Monday night, hey, oh, hey, baby, hey, hey, baby, hey, hey, baby. Look, blackberry smoke All right, that was really good, dude, so good. Here's another one. Fun with the boys too. Yeah, I'm getting goosebumps so good. These cats are from Georgia. Like a Southern rock and roll type man. They were so good man, so freaking good dude, so good, good crowd. Yeah, it was a fun crowd. I'm not. I'm not really the biggest fan of that.

Speaker 1: 8:25

The complex, the complex, it's just I don't know. It's all over the place. It's got rooms here and there and you go back in the one bar area and they won't let you take your drinks out, so it's like it's kind of a what's the point. It's like it's big flat, so it's it's huh, and then the only serve beer in where the actual concert is. Yeah, I don't know, I'm just like F'd up.

Speaker 1: 8:50

Utah laws, dude. Our Congress needs to get the heck out of us being an adult. They're, they're. It's weird. Their bar area was so secure it was. You know, it was sectioned off by by fabric dividers.

Speaker 1: 9:06

Yeah, all you guys up on the freaking hill, come on guys. We're practically half an adult over here. Seriously, right, just because you, just because you don't want to, doesn't mean you have to punish us. So you know, get your grubby little freaking thoughts out of what we want to do for crying out loud. That's enough. Enough said. I mean, I love living here in Utah, don't get me wrong. I love it. Don't want to go anywhere else, but there needs to be a separation between church and state. Yeah, just saying. Just saying that's my controversial opinion.

Speaker 1: 9:43

What was last night? So last night, check this out, dude, got some good ones. I hate when I have to miss going with you. You missed, dude. I know I took my brother instead, did you? She's pretty, uh huh, I should get down Little Samantha Fish, Awesome.

Speaker 1: 10:23

And dude the kid I did most of his live and I haven't figured out yet. So if anybody out there knows how to, if you do a live video to download it to your phone, I can't figure out how to freak to download it to my phone. I hate doing the videos and then uploading it because it takes forever. So it's just so much easier to just hit live and then it I mean automatically, just puts it right out there. Mine automatically saves to a real. Well, it does. But then how do you download it? It's on a real, so it's actually I don't know, I'm not sure. So if somebody, if somebody, knows exactly what I'm talking about and you can help me figure it out, that would be fantastic.

Speaker 1: 11:02

So, anyways, the kid that opened up for him. We saw him on a blues cruise when we went and we saw him years back, four or five years ago. He was opened up and promoted by Mr Tap Benoit, who's one of my freaking favorite favorite guys, but his name is Eric Johansson and, man, he was Amazing, has been what somebody you've taken me to? No, because he hasn't came to Utah for a while. I've heard the name, oh man, a lot, so I know you like him. Matter of fact, I was talking to the Blues Association's president last night, sid, and just I mean I told her I'm like, freaking, get him back here. I loved Tabinwa man, I've seen that dude play. He sounds like he's from New Orleans or something. He is that name. Yeah, he is.

Speaker 1: 11:48

And so is this Eric Johansson kid, is he? Yeah, but just, I mean, there was a lot of times where I'd look at Steve and go, dude, that sounds just like Tabinwa and it's because Tab was his mentor. Wow, yeah, that's cool, yeah, it's really cool. So, tabby, if you ever, if you, if you see this dude, I'm going to actually send it to you. Freaking, get your butt to Utah, kid, we want to see you here. Thank you, yeah, love it, I mean. Matter of fact, I got to tell you a really cool story.

Speaker 1: 12:16

So Tab played at the at the blue society blues festival and after everybody went down, I think it was to Lake effect, dude, and I was in my rat rod. So I pulled up right in front and all these guys were in the bar all playing. Tab loves to play that. I mean, he's a guitar guy and singer but he loves playing the drums and he's amazing, oh geez. And I imagine imagine being able to pull off multiple instruments. I know I'm trying to learn one and it's like it's just not clicking yet. Right, it will, but anyways, yeah, I mean we had all these major artists, dude, that that I mean huge fan of, and they were all right there, we were just hanging out with them. It's kind of like the blues fast, I mean. I mean the the blues crews just chillin with these guys and then afterwards we're all just sitting out on the balcony or on the patio right there in front of Lake effect just having a good time Hanging out, talking to her. Matter of fact, I took somebody for a ride in my rat rod that night. I wonder if it was tab. I can't remember. It was fun, dang man. Yeah, it was really fun, all right. So that was our music for for the week.

Speaker 1: 13:26

We have our on the ninth coming up. We have the pumpkin patch. We do. Let me throw that up there. Hang on, give me two seconds. Pumpkin patch. Here you are, guys. So listen, there's a QR code on there, just if you want um I think it goes to them to to actually buy a ticket.

Speaker 1: 13:46

You don't have to buy a ticket, guys. Just call either Aaron or myself or or Darian or whoever, or Shauna or Shauna, call, call whoever it is here on our team and and we'll get you a ticket. It's that simple. Yeah, it's going to be fun. Kids it's. I mean, it really is fun. We'll have kids, grandkids. We're going to probably do some chocolate milk or something. Yeah, I don't, I don't know. We got to figure that out, by the way. Yeah, we're going to do that. We're going to do a booth and be there and you know, obviously would love to see any anybody. Uh, come out and bring your kids out. We'd love to see you guys. Yeah, it's going to be fun and the kids get a pumpkin. So heck, yeah, and then they can take it home and carve it or paint it or whatever they want to do. I love the. Uh, I got all my grandkids coming. I think all of them Perfect to run your friend porch. Yeah, my wife's going to get creative. I already know she's. She's already talking about some things she's doing, so can't wait. That's cool. All right, brother.

Speaker 1: 14:39

So let's talk about our subject for this week, which is these crazy interest rates going on. Uh, let me throw this up there. I don't even know if I want to share it, but I'm going to. It's kind of the top, the hot topic all around really. But rates are. We all are super aware they're, they're up there and they're. It's a sensitive subject. Here they are guys, yeah, we saw them um 6.874 or something like that up to 6.99 for a 30 year fixed and uh, up over I apologize, seven, almost 8%. Guys, yeah and uh.

Speaker 1: 15:16

So we're going to talk about about a, a program that'll help uh qualify and actually bring down the payment and help you ease into some of this payment shock. I got it up, buddy, three, two, one baby, I mean three, two, one. Buy down and uh, why this kind of program is important. But what it'll help us do is actually buy your interest rate down 3% in the first year, 2% the second, 1%, the third, and then it goes back to whatever is normal or whatever you're locked in at On the fourth year and into the full term. It'll fully amortize out at the higher, at the high end back end rate.

Speaker 1: 15:55

But the idea around this is is there's you know there's conversation whether it'll be this upcoming election that we'll see a major rate drops. Some people believe it'll be a little bit further out than that. But when you do a program like this, you can kind of fix your savings now, kind of predict a little bit of what you're trying to do and in the next two to three years we will see rates drop and then you can lock into a full you know full 30 year rate. That's comfortable and right, something you can do, or better, yeah, I mean I don't know if it's comfortable, but better, yeah, we all got kind of spoiled for quite a while there. So we sure did, yeah, we sure did. But those days are gone.

Speaker 1: 16:34

The thing that I've been kind of paying attention to, those you know I get on and I look every day at the new homes that come on the market and there's, there's fantastic deals out there. We're seeing a lot of participation where the sellers will actually pay for your buy down to be able to help you qualify and pay for the closing costs. Closing costs or both, or both yeah. And so if there's a need or a desire to make a move and you're, you know you've outgrown your house or you know you're in a town home or a condo and you want to go into a home, there's a lot of argument around, you know, coming up with one of these kinds of programs to help get into the, into the payment and get into a home you want and then basically having a little bit of relief, the first two or three years there's a two to one buy down and there's a three, three, two, one buy down.

Speaker 1: 17:17

Same exact concept. The two to one is just you 2% for the first year, 1% for the second year and then the third year goes back to whatever it is that your rate is that you're locked in on and not to go too deep, but the money sits in an escrow. It's your money and if rates come down before the and you refi, yeah, if rates come down before you've gone through your full two and buy down in that escrow, that the money's there, that money will go, is your money and it'll go back into your mortgage and either pay down the balance or pay for all your closing costs, so it can actually be a no cost refinance. So let's talk about this, aaron. So we went to, we went to a lunch and learn the other day and they they were talking about this, amongst other things, but what really hit home for me is they were like listen, guys, if, if, if you're going to get sellers to contribute, it's much better to do a buy down than it is to do just a reduction in your, in your overall rate. What you're paying. Yeah, because that money is just. It's just the money for the buy down. So what they do is that you're putting up the money to buy down that rate and it just sits there and they just take from it as as as you go through the process. So if you refi it or if you sell it before that period of time, it's still your money. It's still there. You still have value there. Right, it's a bank account, that's yeah, anyway. So when you refinance, that money is yours. And what do you do with it? You can pay your closing costs or you can pay down your balance, yep. So really, really cool thing.

Speaker 1: 18:45

Why don't you give us a 30 second, one minute orientation about the, about the special loan that these guys have for for doing fix ups? Well, so, for the longest time I mean there's, you know you're, you're out shopping for houses and you're you. Basically, I need a three bed or four bed, two bath. I want to be in this area and it's really hard because you kind of end up getting pushed down to different areas because that's where the homes are that are fit your price or fit your the design. Well, they don't fit what you want, yeah, they. They don't quite fit the, the layout, or the or the or the or, let's say it's just a flat out run down house. Aaron, and, and you love the bones of the home, you want the home, you love the area, you love where it's at, it's priced right, it's priced where you need it. But you just don't have the cash to buy the house and then dump another how many ever you know 50, 100 grand into it to make it the way you want it. So you pass on it, yep.

Speaker 1: 19:48

So we, we stumbled on a new program, one of our preferred lenders, brett Bushman. Mr Bush, mr Bushman, he, uh he, he's our guitar leader too. He brought us a program, basically, that we're able to help you purchase your property. You get, you can get a, we get contractors out, um, we do a projection on the renovations. So we we were able to kind of look at the house and say, okay, it doesn't quite fit, or you need to finish a basement, or, funny enough, you can build a, you can build an ADU apartment. If you wanted to rent out your basement, you could do that and you could buy the house, have it all done and as part of one loan, and be able to and be able to enjoy the place and make it exactly what you want. So now we can actually pick a neighborhood you love. You know the home has the basic bones of what you like. We can help you design it, help you renovate it and be able to and be able to make the house that's your dream home and it's all one loan, all one loan. You never have to, you never have to get a second mortgage or and you're getting the funds you want.

Speaker 1: 20:50

And and there was a lot of people asking some pretty funny questions about it what they would cover, and one of the things I thought was interesting was a swimming pool and they said, yep, you can put a pool in with this loan. That's crazy, that's amazing. That's amazing. I'll tell you what. When, when you're shopping with a client who wants a pool, right, there's three of them for selling the valley and their price, and they're in different cities and they're, and they're, you're buying a home because of the pool. No, you buy the home now and put a pool in, and it's the way you want it, and it's the house you want and the pool you designed.

Speaker 1: 21:22

And, and what was the percentages? I don't remember, it was like 95. So so, uh, your front end mortgage that you purchase the property with, basically is, you can get a 3% down, Conventional, you can do a 5% down, whatever program you qualify with, that's your down payment requirement, okay. But then they do, uh, its own standalone appraisal and they do an ARV, uh-huh, and which the appraisal basically is is projected value after you do these improvements. And so then, and basically, you're going to give 5% down of this new value of the property when you know, let's say, you bought the house for, for 200 or 400, and you go in and you do a $75,000 remodel, remodel a kitchen, and you know carpet and paint and the value goes up to five. Yeah, now you're sitting, basically you're able to, you're, you're able to do a. Um, they'll give you a 75% of the ARV value and the difference they'll give you to do these, these renovations and repairs, and you have 12 months to complete it. Wow, yeah, such a cool thing, man. So if you've been, if you've been waiting, cause the right, the exact house isn't there and you're never going to find it. But I'll tell you what we can get you such incredible deals on houses right now.

Speaker 1: 22:39

And then do this kind of a uh, renovation loan. And and then still do the three, three, three one buy down, or the two one buy down. Yes, I mean, do it all, man, it. It's such a fun time, this loan, that in 25 years, that's probably the most excited I've been on for lending right. Okay, be able to have this kind of a program.

Speaker 1: 22:58

Go help people build and design the home they want. Yep, I'm stoked, I am too. So if you're, if you guys, if you want to, if you want to buy and you have a custom home or a design you want to do and you want to be in a certain neighborhood, we should talk the loan, we should talk to you. We should definitely talk. So we have approved contractors and the people that can obviously come in and make the repairs. We were the one stop shop. We'll be able to help you go through that full process Get the lending, get the contractors out, get the design done and if you have your own contractor you want to use right they, you can have that contractor.

Speaker 1: 23:33

Go to these guys and they can get approved. So it's not just people that they have. I mean, you know, some of us have a contractor that's either a family member or or somebody friend or somebody that we really trust because we've used them before. Yep, tell you what it just makes me think about. So you know, some of these homes brand new construction you can't, you can't get the basement done Right. That's a whole other idea you can talk about. You can now yeah, you could base, yeah, you can go in and have have the basement completely remodeled before you move in and wham bam, yep, yep, build the exact house you want. A lot of these houses didn't fit before, they will.

Speaker 1: 24:10

Now. Such a cool, stinking program, man, yeah, we're excited about it. Yeah, we are so. Uh, all right, brother. Well, I've got a. I've got a boogie here pretty quick because I've got to go go golfing with my kid. It's his 36th birthday today. That's awesome, I'm excited, awesome. Happy birthday, yeah, happy birthday, man. All right, people. Well, thank you so so much for coming on out. Make sure, uh, oh, I want to show something really quick. Guys, make sure that you go out and sign up for our newsletter. And there it is, right there, that's your link to uh. Just jump on our website, go to the newsletter uh page in the menu, uh, or use this link and sign up for our newsletter. And then also, please make sure that you're jumping on, uh, our YouTube and signing up for our YouTube channel so you guys can get access to all of our episodes. All right, brother, okay, man, good week, man Excited, Can't wait for next week. Happy birthday.